Due Jan. 7th

Week 2:

Your initial post should be at least 250 words.

PICK Fannie Mae: discuss with the class how your choice impacts real estate finance. Pay particular attention to their underwriting standards, underwriting tools, and overall organization. 

+++++++++++++++++++++++++++++++++++++++++++++++ Week 3:

Your initial post should be at least 250 words.

What do we mean by a "mortgage program"? PICK: Variable interest rate loans and discuss with the class how your choice differs from traditional 30 year loans. Be sure to explain the rationale behind the difference, and explain the pros and cons of Variable interest rate loans

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Week 3:

Your initial post should be at least 250 words

Review these questions and determine what the historic relationship between interest rates and home ownership was, and what it appears to be in the current housing slump. 

What happens to an individual's capacity to borrow as mortgage interest rates fluctuate? How did extremely low interest rates in 2004 and 2005, then rapidly rising rates in 2006 impact home sales? (Hint: Try to find some data on the web that correlates unit home sales with interest rates). What happens to home prices as interest rates fluctuate? Have home prices recovered since rates have fallen since then to record lows in late 2010 and beyond? What happens to DOM (Days on the Market) – or how long it takes to sell the average home – as rates go up and down?