Here is the latest press release from the FED. It boils downt to this: INTEREST RATES WILL REMAIN AS THEY ARE FOR THE TIME BEING!
Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.
The prices of energy and other commodities have risen of late. However, substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time.
In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. As previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn
Thursday, June 25, 2009
Thursday, June 18, 2009
Fair Oaks and Carmichael and the State Tax Credit
First-time home buyers wanting to take advantage of the state’s $10,000 tax credit may have less time than originally expected. California set aside $100 million to help home buyers purchase newly built homes, hoping to jump start the residential-construction market. According to state officials, the tactic has worked well and is helping to entice home buyers into the market. However, there only is approximately 20 percent of the program’s funding remaining.
The California state legislature is considering adding another $200 million to the program. However, securing approval may be difficult due to the state’s estimated $24 billion budget deficit. A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.
This from the California Association of Realtors, so TAKE ADVANTAGE WHILE YOU CAN. ESPECIALLY YOU FIRST TIME BUYERS!
The California state legislature is considering adding another $200 million to the program. However, securing approval may be difficult due to the state’s estimated $24 billion budget deficit. A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.
This from the California Association of Realtors, so TAKE ADVANTAGE WHILE YOU CAN. ESPECIALLY YOU FIRST TIME BUYERS!
Saturday, June 6, 2009
Fair Oaks interest rates are on the rise!
Straight from the Wall Street Journal:
Rates on conforming 30-year loans jumped dramatically in just a few days, ending the week at an average of 5.27% according to Bankrate.com. That's still OK by historic standards, but it's a jump from the levels seen just a few weeks ago, when you could get loans at 4.75% or below.
The underlying cause isn't hard to find. Rising government debts, and burgeoning hopes of an economic recovery, are pushing up long-term interest rates on government debt. The yield on the 10-Year Treasury, which was barely 2% near the end of last year, surged to 3.67% late last week before settling back slightly. And that, in turn, pushes up rates on other long-term loans.
Rates on conforming 30-year loans jumped dramatically in just a few days, ending the week at an average of 5.27% according to Bankrate.com. That's still OK by historic standards, but it's a jump from the levels seen just a few weeks ago, when you could get loans at 4.75% or below.
The underlying cause isn't hard to find. Rising government debts, and burgeoning hopes of an economic recovery, are pushing up long-term interest rates on government debt. The yield on the 10-Year Treasury, which was barely 2% near the end of last year, surged to 3.67% late last week before settling back slightly. And that, in turn, pushes up rates on other long-term loans.
Finding your home in FAIR OAKS!
Yup, the government is back at it. They are going to help you get into a home and get the economy turned around doing it! Here is a synopsis of the news that came in at the end of the week:
Last Friday, the Secretary of HUD announced new federal guidelines which allow First-Time Homebuyers to monetize their $8,000 Tax Credit upfront, for use toward their down payment or closing costs, rather than after close of escrow. No one really knows how this is going to work yet – federal lending guidelines usually take a month to manifest into phone numbers you can call to find out about them. But it looks like state Housing Finance Agencies and HUD-approved nonprofit organizations will be involved, and will provide the upfront funds to borrowers (for a small fee, of course), which they’ll be reimbursed at tax time next year. On careful reading of the few details on this program, it’s clear that it does not, reduce the amount of down payment funds that need to be deposited by the buyer to get an FHA loan. The $8,000 credit cannot, under current law, be used to meet the minimum 3.5% down payment requirement (although gifts from relatives can). The upfront $8K is available for buyers to use as extra down payment money (to buy more or lower monthly payments), to pay discount points (reducing their interest rates) or to defray closing costs.
So look at your options. Prices are still very good, and interest rates (at least for the time being) like like they will continue to rise. So make a decision and see if you can lock into a good rate and buy that home of your dreams
Last Friday, the Secretary of HUD announced new federal guidelines which allow First-Time Homebuyers to monetize their $8,000 Tax Credit upfront, for use toward their down payment or closing costs, rather than after close of escrow. No one really knows how this is going to work yet – federal lending guidelines usually take a month to manifest into phone numbers you can call to find out about them. But it looks like state Housing Finance Agencies and HUD-approved nonprofit organizations will be involved, and will provide the upfront funds to borrowers (for a small fee, of course), which they’ll be reimbursed at tax time next year. On careful reading of the few details on this program, it’s clear that it does not, reduce the amount of down payment funds that need to be deposited by the buyer to get an FHA loan. The $8,000 credit cannot, under current law, be used to meet the minimum 3.5% down payment requirement (although gifts from relatives can). The upfront $8K is available for buyers to use as extra down payment money (to buy more or lower monthly payments), to pay discount points (reducing their interest rates) or to defray closing costs.
So look at your options. Prices are still very good, and interest rates (at least for the time being) like like they will continue to rise. So make a decision and see if you can lock into a good rate and buy that home of your dreams
Thursday, May 28, 2009
Fair Oaks and GMAC
Well, it's been a while. As with everyone these days there have been a lot of changes and change takes up time, energy and a wealth of resources. As a result we all avoid change. Even though change is GOOD! Change engenders growth and growth keeps us interested and alive.
How does GMAC figure in all this you may ask? Well let's see. Did you ever think that General Motors would not be a part of the American make-up? You probably never even thought about it, but now you are. The reason that you are is that this is one of many changes this country is going through affecting everyone including ourselves. Indirectly you are feeling/seeing it in many ways. Economically you have been affected and will continue to be affected for at lease several more years. It is also causing many international shifts that are causing a ripple effect in the national economy and American make up. Have you read about the city of Detroit lately? Once a paradigm of American strength it is now a wilderness of vacant buildings and lost labour opportunities. So what America has lost someone else has gained. Korea? China?
As a country we continue to ship jobs overseas and it is not just through Government action. It is caused by everyone wanting cheap goods and manufacturers taking their business to countries like Korea and China.
Todays interest rates are a response to the release of the latest Treasury Auction and are a direct result of all of this. No buyers for the Auction meant that interest rates rose 2% in one day!!! So here we are once again, interest rates increased due to a number of national and international reasons. Some of the reasons have undoubtedly been affected by elements of the American economy. Such as the likely bankruptcy of GMAC and the expense the Government is going through to deal with all of our Economic upheaval.
So if you are re-financing your home, sit tight for a bit and see if the rates settle down over the next week or two.
Personally I am changing Real Estate Agencies this week to 'Area Pro Realty'. I thank you for your past patronage and look forward to your business under this new sign!
How does GMAC figure in all this you may ask? Well let's see. Did you ever think that General Motors would not be a part of the American make-up? You probably never even thought about it, but now you are. The reason that you are is that this is one of many changes this country is going through affecting everyone including ourselves. Indirectly you are feeling/seeing it in many ways. Economically you have been affected and will continue to be affected for at lease several more years. It is also causing many international shifts that are causing a ripple effect in the national economy and American make up. Have you read about the city of Detroit lately? Once a paradigm of American strength it is now a wilderness of vacant buildings and lost labour opportunities. So what America has lost someone else has gained. Korea? China?
As a country we continue to ship jobs overseas and it is not just through Government action. It is caused by everyone wanting cheap goods and manufacturers taking their business to countries like Korea and China.
Todays interest rates are a response to the release of the latest Treasury Auction and are a direct result of all of this. No buyers for the Auction meant that interest rates rose 2% in one day!!! So here we are once again, interest rates increased due to a number of national and international reasons. Some of the reasons have undoubtedly been affected by elements of the American economy. Such as the likely bankruptcy of GMAC and the expense the Government is going through to deal with all of our Economic upheaval.
So if you are re-financing your home, sit tight for a bit and see if the rates settle down over the next week or two.
Personally I am changing Real Estate Agencies this week to 'Area Pro Realty'. I thank you for your past patronage and look forward to your business under this new sign!
Wednesday, March 18, 2009
Fair Oaks and the Fed
Yes folks, it has been a while!!
Here is the latest from the Fed and Mr. Bernanke (from an article on CNN Money):
The news of the Fed's intention to purchase 300 billion dollars in treasurys over the next 6 months has created a huge rally in the bond market. Simply put, rates on the 10 year bond dropped from 2.94 down to 2.51, almost a full half point. This drop is translating into huge rate reductions on mortgage backed securities.
The Fed is demonstrating a clear signal that they want to improve housing and by purchasing treasurys, they are driving down interest rates.
The Fed has not specifically set a target rate that they are trying to achieve for mortgage loans however speculation is that they would like to see the 30 year fixed drop to 4.5%.
Only time will tell whether mortgage rates will drop that low, however enjoy the recent reduction and get your fence sitters to take action.
This is a response to market conditions as well as the drop of the American dollar agains other currencies. Let's see what this does to the market!
Here is the latest from the Fed and Mr. Bernanke (from an article on CNN Money):
The news of the Fed's intention to purchase 300 billion dollars in treasurys over the next 6 months has created a huge rally in the bond market. Simply put, rates on the 10 year bond dropped from 2.94 down to 2.51, almost a full half point. This drop is translating into huge rate reductions on mortgage backed securities.
The Fed is demonstrating a clear signal that they want to improve housing and by purchasing treasurys, they are driving down interest rates.
The Fed has not specifically set a target rate that they are trying to achieve for mortgage loans however speculation is that they would like to see the 30 year fixed drop to 4.5%.
Only time will tell whether mortgage rates will drop that low, however enjoy the recent reduction and get your fence sitters to take action.
This is a response to market conditions as well as the drop of the American dollar agains other currencies. Let's see what this does to the market!
Monday, January 12, 2009
Fair Oaks, Fannie Mae and the new Year!
Happy New Year everyone. Let it be a good year financially, physically and mentally!
Late last year this note came out about Fannie Mae mortgages:
"Fannie Mae recently announced the Streamlined Modification Program (SMP) is now available to Fannie Mae servicers and borrowers as an option to help prevent foreclosures. The SMP enables services to change the terms of a loan to reduce a borrower's monthly mortgage payment, including taxes, insurance, and HOA dues, to an amount equal to 38 percent of the borrower's gross monthly income. The changes in terms may include one or more of the following: Adding the accrued interest, escrow advances and costs to the principal balance of the loan, if allowed by state law; extending the length of the mortgage loan as appropriate; reducing the mortgage loan interest rate; forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced. Servicers will be sending modification solicitation letters beginning this month to borrowers believed to be eligible for the program. "
If you are one of the people that will be affected, call your lenders if you have not heard from them.
Late last year this note came out about Fannie Mae mortgages:
"Fannie Mae recently announced the Streamlined Modification Program (SMP) is now available to Fannie Mae servicers and borrowers as an option to help prevent foreclosures. The SMP enables services to change the terms of a loan to reduce a borrower's monthly mortgage payment, including taxes, insurance, and HOA dues, to an amount equal to 38 percent of the borrower's gross monthly income. The changes in terms may include one or more of the following: Adding the accrued interest, escrow advances and costs to the principal balance of the loan, if allowed by state law; extending the length of the mortgage loan as appropriate; reducing the mortgage loan interest rate; forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced. Servicers will be sending modification solicitation letters beginning this month to borrowers believed to be eligible for the program. "
If you are one of the people that will be affected, call your lenders if you have not heard from them.
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