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Please use Subprime Blogger to keep up with current mortgage rate trends.  There are also several articles to help you keep up with average mortgage rates.

Interest rate predictions for July could bring bad news for those that hope to get mortgage rates under 5%.  When looking at the 10 year treasury rate, it looks like there is strong support at 3.4% and the 10 year has been sold off very hard since almost hitting 4%.  I would be very surprised if we continue to see a sell off through the support level of the 50 day moving average.  If we see a bounce off of 3.4%, look for mortgage rates too see a bounce off the 5% level.

President Obama and Ben Bernanke are going to do everything possible to not allow this to happen, but sometimes there is nothing the government can do as this is a free market capitalist country.  The buying of mortgage backed securities coupled with the auctioning of treasury bonds has pushed average mortgage rates lower after the quick rise from 4.8% to 5.6% in June.  At one point the government is going to run out of ammo for keeping mortgage rates low.

Unfortunately, when they do run out of ammo, there is going to be a slingshot effect with interest rates.  If you remember the first two weeks of June, when rates went up almost a full percentage point in two weeks, you know exactly what I am talking about.  Sadly, it could be even worse as we are likely to see inflation start to set in as the Federal Reserve Bank has been printing money at will.

With that being said, the interest rate predictions for the month of July shows interest rates going higher, especially towards the end of the month.  It is very possible that we will see mortgage rates grind sideways to downward until the 10 year treasury rate hits support, but then we are likely to see a strong uptrend.  By looking at this chart of the 10 year, you will notice that we are almost at support.  There has been a weak bounce so far, but expect that uptrend to get much strong on its push towards 4%.

If the 10 year treasury rate does hit 4%, look for mortgage rates trends to push rates towards 5.85% or higher.  If you have been considering a refinance or buying a new home, now might be the best time to do it when mortgage rates are at the bottom of an upward trend channel.  If you wait until the end of July, you might see daily mortgage rates much closer to 6%.  Ultimately, interest rates looked be putting in a short term bottom at the beginning of July and then I expect to see an increase through August and possibly into September.  If this is the case, we may see a strong decline in the stock market.

Author: Real Estate Advisor

Real estate investment is perhaps one of the most lucrative forms of investment today. But it is also equally risk bound especially when one is not well versed with the trends and nuances of the real estate market. So if you are contemplating on investing in real estate, it is best to avoid costly mistakes in real estate investment especially when you invest your hard earned money into it. Knowing the most common mistakes made by real estate investors helps one steer away from making such mistakes in the future and ensures good return on investment.

Here are the top ten mistakes made by real estate investors, according to bankrate.com. Bankrate has put together the top ten mistakes after speaking to established, full-time real estate investors and other professionals involved in real estate investment such as bankers. Read on to know them and avoid them.

1. Not planning up ahead. Lack of a proper plan is the biggest mistake made by novice investors. Finding a house after forming a proper investment strategy is the right way instead of looking for a house to fit the plan. Many make the mistake of buying a house because it seems to be a good deal and then trying to see how they can fit it into their plan. Instead of buying a house and thinking one can plan in due course, investors should rather concentrate on the numbers and try to make offers on multiple properties. This will ensure a good property that not only matches their investment model but also works out well with the numbers they had planned for.

2. To believe you can make money quickly. The second major mistake that real estate investors make is to think it is very easy to get rich in real estate. This is only a myth and the reality is that investing in real estate is a long term project.

3. Doing it single-handedly. For becoming a successful real estate investor one needs to build a team of professionals who would assist the investor in his deals. This would ideally include a real estate agent, an appraiser, a home inspector, a closing attorney and a lender.

4. Making excess payment. One another reason that investors in real estate goof up in their investment is by paying too much for the properties they buy. Paying too much and locking up all the funds in the erred property deal will leave you with no money to redeem yourself.

5. Leaving out the groundwork. Not doing your homework could be a costly mistake if you were a real estate investor. Every field of business needs sufficient amount of homework to be done, and real estate investment is no exception. Learn the fundamentals and then venture into investing in properties.

6. Throwing caution to the winds. Investors have to exercise a certain degree of caution and take earnest efforts while making a deal. New investors often fail in this regard and sign a deal without doing adequate research on the property.

7. Miscalculating money flow. Investors whose strategy is to buy, hold and rent out properties need to ensure sufficient cash flow for maintenance. Property managers could be expensive and the owner has to incur more expenses such as mortgage, taxes, insurance, advertising costs etc. Investors have to allocate their budget such that all these expenses are taken care of, or end up having their asset turn into a liability.

8. Lowering the volume. A larger volume of deals or transactions helps in increasing the profits by reducing the impacts of marginal deals.

9. Getting trapped in your own deal. Having more number of options at hand for the property you buy is a wise strategy. This helps one to be prepared for fluctuations in the real estate market. Plans to rent out the house could go awry when the rental market slumps. Having alternative plans helps you cut down losses and tackle unexpected situations.

10. Making incorrect estimates. People who plan to rehab their house need to check if they will still reap the benefits at double the time that they had estimated. This ensures they do not miscalculate and lose money on the deal.

Article Source: http://www.articlesbase.com/real-estate-articles/avoid-top-10-mistakes-made-by-real-estate-investors-151870.html

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San Diego Condos
La Jolla Condos
Mission Bay Real Estate

On March 4th, I wrote the article “First the Mortgage Crisis, Now the Life Insurance Crisis?” to help illustrate the possibility of an upcoming life insurance crisis.  Less than two weeks later, the Wall Street Journal reported the same possibilities.  Throughout the month of March, most insurance stocks trended higher with spectacular gains.  The three companies that I mentioned in the original life insurance crisis article were up 75%, 107% and 160% respectively.

Today Lincoln National Corp filed with the SEC that they will not seek to issue debt under a FDIC program that helps banks and financial institutions to access debt at a reasonable rate.  At first, this sounds very positive for the company until we find out why Lincoln National Corp is not seeking assistance.  The company’s investment manager said he didn’t feel the company would qualify to participate under the current provisions.

With this statement, Lincoln National Corp is down over 33% and is bringing the entire life insurance sector with them.  Principal financial is down 18% and Hartford Financial is lower by 9% on the day.  Lincoln Financial is not the largest life insurer by market capitalization, but if one major insurer goes under, several more are headed in the same direction.  Many of the life insurance corporations have seen 75% or more declines in their stock prices since the beginning of 2009.  It looks like there are more problems ahead for these companies.

Fortunately, life insurance policies are guaranteed up to $100,000.  Unfortunately, if you have a policy higher than that, you could lose a great deal of your insurance policy if the life insurer that covers you goes under.  It is likely that the government will try to prop up some of the bigger insurers, but as you can see from Lincoln Financial, all of them will not receive government assistance.