MARKET UPDATE

Key Rate Drops, Sets Record; 10-Year Near to 52-Week Low Freddie Mac’s closely watched weekly survey of primary market mortgage rates registered yet another record low for the popular 30-year product on Thursday morning as the long-term rate-indicative 10-year Treasury yield dropped toward its 52-week low. The 30-year average for the week ending May 17, at 3.79%, came in four basis points lower than the previous week. The 10-year as of late morning Thursday was at 1.74%. Its 52-week low has been 1.7%. Other rate averages in Freddie’s survey for the week were as follows: the 15-year dropped a basis point to 3.04%, the five-year Treasury-indexed hybrid rose two basis points to 2.83% and the one-year Treasury adjustable-rate mortgage jumped five basis points to 2.78%. Points averaged 0.7 of a point for the 30-year and 15-year, 0.6 of a point for the five-year Treasury hybrid and 0.5 of a point for the one-year Treasury ARM. Freddie’s chief economist Frank Nothaft said in his weekly rate report that renewed financial uncertainty in Europe and improving economic indicators in the United States drove yields and rates during the week. A year ago, the 30-year averaged 4.61%, the 15-year averaged 3.8%, the five-year Treasury hybrid averaged 3.48% and the one-year Treasury ARM averaged 3.15%. Foreclosure Filings Fall to (Almost) Five-Year Low It appears the nation’s foreclosure crisis has turned the corner—thanks to short sales. According to new figures compiled by RealtyTrac, servicers filed 188,780 notices of default in April, the lowest reading since July 2007. The NODs—which include default notices, scheduled auctions and bank repossessions—fell 5% from March and are down 14% from a year ago. One in every 698 housing units had a foreclosure filing last month, the Irvine, Calif.-based analytic provider said. “More distressed loans are being diverted into short sales rather than becoming completed foreclosures,” said Brandon Moore, CEO of RealtyTrac. “Our preliminary first quarter sales data shows that pre-foreclosure sales—typically short sales—are on pace to outnumber sales of bank-owned properties during the quarter in California, Arizona and 10 other states.” After three consecutive monthly increases, foreclosure starts were down in April compared to March. A total of 97,665 properties began the foreclosure process during April, down 4% from March and 2% lower from the same time period last year. Bank repossessions continued to decline on a monthly basis too, as lenders completed the foreclosure process on 51,415 homes. This is a 26% drop from April 2011 and represents the 18th straight month of year-over-year decreases in REO activity.

FISHING THE HGH SIERRAS

COMMON CREDIT MYTHS

When it comes to credit, knowing fact from fiction and understanding how to act is critical. Here are some common credit myths that may be preventing you from engaging in effective credit management:
MYTH: My score will drop if I check my credit.
FACT: Checking your own reports and score is considered a "soft inquiry" and has no negative impact on your credit score.

MYTH: There is only one score that all lenders use to determine my credit-worthiness.
FACT: There are literally hundreds of different scoring models used by the lenders in the marketplace today.

MYTH: Closing old credit card accounts will clean up your credit reports.
FACT: Some people advocate closing old and inactive accounts as a way to manage their credit. In most cases, closing your older accounts will make your credit history appear shorter, which can negatively impact your credit standing.

MYTH: Once you pay off a delinquent loan or credit card balance, the item is removed from your credit report.
FACT: Negative information such as late payments, collection accounts and bankruptcies will remain on your credit report for up to seven years. Certain types of bankruptcies stick around for up to ten years. Paying off the delinquent account won't remove it from your credit report, but it will update the account to indicate it as "paid".

LAWRENCE MILNE

I'm a big believer in customer satisfaction and always strive to achieve it. My clients benefit from my experience, marketing capabilities and ability to network with other Realtors to get the job done pleasantly and efficiently. Please contact me for me for up-to-date information on beautiful South Orange County, California, USA.

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