Weekly mortgage rate comment from Mickey, 10.30.07

Weekly interest rate comment from Mickey Carlton, Mortgage specialist:

Interest rate movement remains fairly quiet this week as the market awaits Wednesday afternoon's announcement from the Federal Reserve regarding their decision on rates. The Fed is widely presumed to be planning a further quarter point reduction in the Fed Funds rate. Again, you should be cautioned that this is an overnight rate used by banks to borrow from one another to meet their reserve requirements. The Fed DOES NOT set mortgage rates. A rate reduction would have an immediate positive effect on consumer rates such as home equity lines, auto loans and credit cards.

The effect, in any, on long-term mortgages should be minimal and might actually cause a slight uptick in rates. Currently, borrowers can obtain 30 year fixed rate financing for rates ranging from 6.125% to 6.75% without paying discount points or origination fees. Actual rate will depend upon loan size and the individual borrower's creditworthiness.

Check out www.audreybutlerhomes.com

How to improve your home for selling

In this tough buyer's market, every home is under scrutiny, given the number of homes on the Orlando home market. What are some considerations as a seller you should consider when listing your home?

1. Obviously, curb appeal is a key factor in creating a good impression. Make sure you trim the grass, keep blooming flowers in the gardens, and take care of any ant beds and weeds. Paint the front door if it is needed, and treat any wood rot in the trim. Invite over a true friend who will give you an honest opinion, or ask your Realtor.

2. When entering a home, smell is the second consideration. If you or a family member smokes, then the home should be treated before it is sold. Smoke can be smelled in all fabrics, including carpet. Consider steam cleaning. Once the home is listed, the smokers should smoke outside.

As much as we love pets, they do smell. Make sure the odors are treated, and their areas are kept clean at all time. Spot needs to be regularly washed, and should be taken from the home (or kept in the back yard) during showings. If the dog is not friendly, the pet should be removed during the showing.

Key: do not try and mask the smells. This is not the time for short cuts, given this tight market!



Check out my website: www. audreybutlerhomes.com

People want to own a home

Ok, I know this may seem like common sense, but a new study has come out saying the reason for most first time home purchasers is that they want to own a house and establish their household. They say placed in context, it should humble some market experts. People in the survey never mentioned that the reason they purchased was because it was a strong buyer's market.

Now I am a bargain hunter on certain things....yes, I buy for value and quality as well. For example, when I go clothes shopping, I don't just buy something because it is on the sales rack. I want to buy well made, cute clothing that will go with the rest of my wardrobe....stay with me, I'm going somewhere with this....my values in shopping are inherent in my process. If someone were to stop me in the mall and ask me what I am doing there, I would say: "shopping for clothes because I want something new." I'm not sure I would mention all the sales signs.

Yes, there is no need to purchase something costing over $200,000 unless you want it....but hopefully this buyer's market will make purchasing a more affordable for new buyers.

Check out my website at: www.audreybutlerhomes.com

home prices will continue to remain low

At the Mortgage Bankers Association convention going on in Boston this week, the experts told attendees that the national home prices are going to decline in 2008. Thomas Lund, the executive vice-president at Fannie Mae says that prices will flatten in 2009, before gradually rising in 2010.

Any questions? e-mail me through my website at: www.audreybutlerhomes.com

weekly mortgage rate info from Mickey 10.23.07

This week's rate quote from Mickey Carlton:

Mortgage interest rates improved late in the week as investors dumped stocks for the safety of bonds. This "flight to quality" improvement in rates could melt away if the stock market sustains a rally. Currently, residential home buyers can expect to pay between 6.125% and 6.75% to obtain 30 year fixed rate mortgages without having to pay an origination fee or discount points. Individual rates will depend upon loan size and the creditworthiness of the borrower(s).

For more questions, contact me on my website: www.audreybutlerhomes.com

Goals for a seller

Are you a "for sale by owner"? Here are some tips to help you in selling your home:

1. Don't have a bloated price tag, in hopes of negotiating a better deal.

There is a misconception that a home can still get the same asking price as in 2005. Not in this market. Homes have dropped significantly in price, and buyers will not be interested in seeing a house with a high price.

2. Try to get as many people in to see the house in the first 2 weeks.

If the house is on the market for a very long time at a high price, people will begin to think there is something wrong with it.

3. Realtors can be your friend.

You may have had a bad experience with a Realtor, or just don't want to pay the 6% commission fee. However, in this market, exposure and savvy marketing are key. Also, pricing it compared to the other houses in the neighborhood is important so you can have potential buyers see your home. When there are so many houses on the market, an agent can help you discuss how yours can stand out.

If you had a bad experience, talk to others that like/liked their Realtor. Ask to speak to some of their past clients. An experienced agent will be invaluable in pricing your home correctly and getting it seen in this market.

Check out my website at: www.audreybutlerhomes.com

Housing forecast for 2008 looking up

The National Association of Realtors is forecasting an improvement in the mortgage market, which could result in more buyers in early 2008. I don't know if they are telling Realtors like me this news to cheer me up (I'm actually already cheerful; I really enjoy my work...), but the vice president of research for the association says that nationally the housing market for this year is the 5th highest for existing home sales.

I hate sounding like a negative person all the time on this blog, but that does not consider the individual market in central Florida. However, there has been a reduction in new home building, which can help stabilize the market.

All in all, this could be good news for current sellers, and will hopefully result in the pent-up demand leading to action in the next couple of months.

To learn more, check out my website at audreybutlerhomes.com

Go Sheila!

The Associated Press is reporting that Sheila Bair, head of the Federal Deposit Insurance Corp., has recommended that the companies that have pre-foreclosure clients consider an across-the-board conversion of adjustable-rate loans to fixed-rate loans if the borrowers were current on their payments and living in the homes.

Yes! Someone with a solution to directly help those in need.

Now I have to carry that a step further-----how about just a few months behind? If people are already current on their payments and still living in their homes, why would they need the help?

How about helping those whose payments have already increased $500 to $1000 dollars a month and can't afford the payments?

Check out my website at www.audreybutlerhomes.com

Let's party like its 1999

The big question out there: Is it time to buy, or not time to buy?

Here are the three latest sources to weigh in on the subject:

Time to buy

Forbes magazine: based on estimated 2008 inventory, sales rates, etc. the authors notes that Orlando has had a 2.4% decline but it is expected to turn around fairly quickly.

Not time to buy

PMI Mortgage Insurance Co.: Orlando is one of 11 metro areas with a greater than 50 percent chance of price declines over 2008 and 2009.

Time to buy

Jerry Jackson at the Orlando Sentinel: Resales of existing homes and condos had it's worse month in September in more than 8 and a half years.

Predicting the lowest point is a lot like predicting the stock market.....Yet remember, any home purchase can be a good investment if it is considered a LONG TERM investment.......

Interest rate comment from Mickey, 10.16.07

Here is Mickey's interest rate update for 10/16/07:

Thirty year fixed rate conforming (<$417,000) loans can be obtained for rates ranging from 6.375% to 6.875% without paying origination fees or discount points. Individual borrowers' rates will depend upon loan size and the borrower's creditworthiness.

Foreclosures down in September

RealtyTrac, an online market for foreclosure properties is reporting that foreclosures were down 8 percent in September compared with August when they hit a 32-month peak. However, foreclosures are still up 99 percent compared to September a year ago.

There were 223,538 foreclosures in September — or one in every 557 households. California, Florida, and Nevada led the nation.

New Florida Law raising the roof costs

Starting October 1st, new Florida law went into effect to increase the building code requirements for roof replacements. The new protections require:

• roof deck attachments and fasteners must be strengthened or corrected.
• secondary water barriers are required.
• if the insured value of the house is $300,000 and is in a coastal wind-borne debris region, roof to wall connections must be enhanced.
• Insurance discounts will vary based on where the home is located

What could this mean to you, the consumer? Additional costs to replace your roof. The Real Estate Webmasters predict the costs could rise 25%.

If you are purchasing a home, and it needs a new roof, get an estimate. You may go with the amount they offer, and not realize they are not taking the new law into consideration. Also consider the new law when making an offer on a house that has a roof over 10 years old.

If you are a seller, make sure that your roof replacement meets the new requirements---these changes will be checked by home inspectors.

Open House, Sunday, October 14th

$229,000

Open House

Sunday, October 14th

2:00 to 5:00

810 Veronica Circle

Ocoee, Florida

This 1328 square foot house is the lowest price home in the neighborhood. Beautiful upgrades include hardwood floors, new kitchen cabinets, and a fenced-in back yard. Come check out the nice neighborhood with friendly neighbors. This home was just reduced!

Hope Now----really?

OK, so I know I've had a few ranting sessions on a couple of things on this blog, but I really have to wonder about the Hope Now initiative that was advertised on WESH TV last night.....I know it is not the TV station's fault, but why not investigate what Hope Now is really about....INFORMATION ONLY.

I look at the foreclosure problem, and I see a big crisis. Yes, people made some bad choices, maybe didn't read the fine print, thought the interest rate would change, or relied on a factor that did not happen. But the bottom line is that we are seeing a significant number of people losing their homes and their dignity.

The problem in Orlando is compounded by the fact that home values have dropped significantly since all the investors pulled out of the area, and we now have over 26,000 homes on the market.

After hearing the news story yesterday, I went to the website and found the link to Hope Now....(www.hopenow.com) ...All it does is instruct people to contact their mortgage lender and talk to them.....really? The people that I know are in trouble HAVE ALREADY DONE THAT. What happened? Numerous answers: No one can give them an answer.....they can't get to the person that makes the decision....the situation has to get worse before the lender can do something.

Then we direct people that are struggling and stressed out, who have not gotten any help from their lender, and we send them to a non-profit organization. Nice, but does that organization have any say? Do they have a direct phone to the bank, with approval to override the bank? Can they force a lender to modify the loan?

The counselors can recommend some options, but they are just window dressing.

Here is the problem that is not being addressed: Mortgage companies have a lot of foreclosures and clients are not getting answers. The homes cannot be refinanced with a different mortgage broker/banker in Orlando because the homes will not appraise for the amount when they were mortgaged in 2005.

No other bank can help, and NO LENDER has come out with a policy on how to address the problem with their client and help the owner (another question: why would they be motivated to do anything to help? They have to listen to their investors, correct?). Foreclosures seem to be the only option...

...now exactly how does "Hope Now" address this?........

Weekly mortgage rate from Mickey, 10.10.07

Here is the weekly mortgage interest rate comments from Mickey:

Mortgage interest rates have drifted slightly lower over the last few days. Buyers seeking 30 year fixed rate mortgages can expect to find rates ranging from 6.375% to 6.875% without paying discount points or origination fees. Actual rates for individual borrowers will depend upon loan size and creditworthiness of the borrower.

Last week one of my loan applicants asked, in a gleeful voice, how much the interest rates dropped after the Federal Reserve "lowered them". I had to explain that long-term rates actually went up slightly the next day although they have fallen somewhat in the intervening two weeks. My borrower was not thrilled with the news. No doubt your buyers have also expressed the belief that the Fed "lowered rates".

Be aware that the Federal Reserve has the ability to set short-term rates ONLY. The actual rates the Fed controls directly are the overnight rates used by banks to borrow from each other (Fed Funds rate) or directly from the Fed (discount rate). Banks use the overnight market to meet their reserve requirements, as set by the Fed. By moving these two short-term rates the Fed can influence long-term rates, but the market, that is, the trading participants, actually determine such rates. Sometimes market participants cause rates to move in strange ways (to us!) due to concerns over inflation or other economic conditions. My message is that professionals should consult with their lenders before discussing the level of rates with clients. The six o'clock news is not always what it seems.

Is your house "so not hip"?

Here are the recent trends that are no longer "hot" in the housing industry, according to Realtor Magazine:

McMansions

the cold look of modern

formal dining rooms

carpeting

junky foyer or coat closet

granite counter tops

Is your house "hip"?

Here are the latest home trends as reported by Realtor Magazine:

Cozy, small homes on a big lot

earth colors (brown, green)

Informal living spaces

exotic hardwood floors

mudrooms

marble, limestone and concrete (yes, concrete) kitchen counter tops

tomorrow: What is NOT in......

The weekly interest rate comment from Mickey 10.2.07

The weekly comment from Mickey:

Mortgage interest rates are quietly unchanged from a week ago. Thirty-year fixed mortgage rates are ranging from 6.375% to 7.00% (no discount points or origination fees) depending upon loan size and the creditworthiness of individual borrowers.

Where are the buyers?

This time last year, I had just started selling real estate in Orlando. Well, to be honest, I was recovering from an appendicitis after having just started working for RE/MAX 200. Boy, a lot can happen in a year.....

I'm sorry. I digress. In this last year, I have watched everyone call this market a "buyer's market." Yet as I reflect over the last year, I wonder where the buyers are hiding.

Don't get me wrong.....there are people out there looking, and there is a lot of inventory to choose from---over 25,000 in our area, to be exact. Yet the sales each month have been minimal. Now prices are significantly dropping, yet we are not seeing an increase in sales at this point in the year as predicted by the experts.

My take on the situation is that there are a lot of buyers sitting on the sidelines, waiting. Why, I am not sure----I know there has to be a lot of pent up demand. Even in a slow market, we see about 2,000 people moving into the city every day. Is everyone waiting for the prices to hit rock bottom? How will they know when that is happening? The statistics in the papers and used by experts are always outdated.

As I ponder my first year and this interesting question, I will be conducting a survey among my contacts and I'll report back.....yet I guess that trying to figure out the reason why won't bring people off the sidelines!