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