Buyers of Real Estate VA Foreclosures Welcome Lower Mortgage Rates

by Peter Vernon on Foreclosures

Those who plan on buying residential properties, including residential real estate VA foreclosures, will be glad to know that mortgage rates have declined in the first week of 2011 after continuous increase during the last few weeks of 2010. Rates declined all over the U.S., providing encouraging news to would-be homebuyers and real estate investors.

Despite the low prices of Irvine foreclosures for sale and other foreclosed properties in the state of California, most buyers have stayed out of the market as they wait for mortgage rates to change course. For the week ended January 6, 2011, rates for 30-year fixed mortgages were at 4.77%. This is lower than the 4.86% rate recorded in the previous week.

Meanwhile, rates for 15-year loans declined to 4.13% for the week from 4.20% the week before. For adjustable mortgage loans, one-year rate recorded an average of 3.24% compared with the 3.26% average of the previous period. Realtors in the state are hopeful that the decline in mortgage loan rates will encourage more buyers to sign purchase contracts for residential properties, including those under California bank foreclosure listings.

For buyers of residential properties like real estate VA foreclosures, the last few weeks of December did not offer much opportunity as loan rates rise continuously. In the previous week, rates for long-term loans jumped to their highest level in seven months after posting a record low of 4.17% back in November. Applications for mortgages rose modestly last week, according to the Mortgage Bankers Association. The rise followed a week when application totals reached their lowest level within a 12-month period.

The previous week's rise in the number of mortgage applications were mainly accounted for by refinance applications for existing loans, with applications for buying residential properties, including homes under bank foreclosure listings, declining for the same period. Meanwhile, rates for 30-year mortgage loans with fixed rate in California rose slightly to 4.69% for the week from the 4.66% recorded the week before.

For sellers of residential properties like real estate VA foreclosures, the drop in mortgage rate is expected to help improve housing sales figures. Most realtors believe that the time is right for buyers to take advantage of the low rates and the affordable prices of dwellings before both started increasing again in the coming weeks.