Thursday, October 25, 2007

Are foreclosure rates up?

Over the past several months you have probably heard and read numerous reports about the "sub-prime meltdown" and rising foreclosure rates. Rest assured that the sky is NOT falling -- especially not in Seattle/Washington. Here are some significant facts:

FACT: the foreclosure rates in Washington State today are the same as they were 10 years ago. Fewer than 1% (yes, ONE percent) of mortgages end in default in our state.

FACT: As of mid June, sub-prime, adjustable-rate loans represented 20% of loans nationally, but just 6% of home loans in Washington.

FACT: Home appreciation in Washington continues to out-perform the rest of the nation with year-to-year price increases every quarter since the spring of 1995. Home prices in Washington have increased an average of 8.1% since the same time last year.

CONCLUSION: The real estate market in Washington State, and Seattle in particular, is still VERY STRONG! There are many reputable lenders who can quickly and easily give you accurate information about your ability to obtain a home loan. If you need recommendations, just give me a call and I can give you several names from which to choose.

(Scroll down to the end of the page for an explanation of sub-prime loans.)

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