Weekly Mortgage Forecast

Week of: Monday, May 12, 2008

Present Market Conditions
The entire economy, including buyers, is in a wait and watch stance to survey the effects of the latest FED rate cut. “Despite a weak housing market, mortgage rates remained almost unchanged this week based on better-than-expected economic data releases that indicated the economy still has some staying power,” said Frank Nothaft, Freddie Mac vice president and chief economist. Fannie Mae announced that it will buy the new Jumbo Conforming mortgages for the same prices as those below the old conforming loan limit, which should make some larger mortgages more affordable.

Expectations
Housing inventories are expected to drop to 400,000 (seven-month supply) by the end of ‘08 and to a five month supply sometime in ‘09. A five-month supply has historically signaled tightness in the housing market and normally results in a decline in rates. Expected to pass the Senate and be signed by the President, a $300 billion FHA housing loan guarantee program will assist troubled borrowers in refinancing into a mortgage with more affordable terms, resulting in a reduction in the number of foreclosures.

Guidance
Prolonged low interest rates and greater affordability (lowering home prices) will attract buyers into play; indeed it is a good time to buy. Now is the time to contact Georgie so she can structure a mortgage solution to meet your financial goals.

Traverse Mortgage Corporation

   (231) 947-9700        (800) 968-3680 

mailto:georgie@traversemortgage.com

Lease to Own Near Interlochen

17629 Garvin Lane

Interlochen, MI

Centrally located between Crystal Lake, Crystal Mountain & Traverse City. Newer ranch home on nicely landscaped 2.5 acres. Includes full appliance package, wood laminate flooring in the kitchen, 2-car attached garage & home warranty.

For more information, please call Sharon Reid-Brown at 231-632-6260 or sharonreid@remerica.com

Cute & Cozy Home Near Lake Ann

6450 Sugar Maple Lane

Traverse City, MI

Cozy home on corner lot in great neighborhood. Close to Lake Ann and Traverse City. Neutral decor, hardwood floors, vaulted ceilings, newer updated kitchen and carpet. Finished family room with woodstove in lower level. Fabulous mudroom off garage and plenty of storage. You will want to call this “home.”

For more information, please contact Amy Jamieson at 231-620-2255 or amyjamieson@remerica.com

The PERFECT condo for those working at Munson!

202 Circle Dr

Traverse City, MI

Spacious open layout. Totally refurbished 2 bedroom condo within walking distance to Munson Medical. Other units available and are completely refurbished with high-end finishes. Brand new countertops, carpet/ceramic tile, paint, fixtures, appliances (some units have stainless steel), and Hunter Douglas window treatments. Finishes vary from each unit. Downtown location close to everything.

Listing Details     Virtual Tour URL

For more information, please call Brad Nichols at 231-941-8283 or tcinfo@remerica.com

Weekly Market Forecast

Week of: Monday, April 28, 2008

Present Market Conditions
U.S. stocks posted the first back-to-back weekly gains since February after earnings at Boeing Co. and Philip Morris International Inc. bolstered speculation that overseas growth will offset slower domestic demand. With stocks climbing, U.S. Treasury prices continued to decline and investors are now waging strong bets that the Federal Reserve will indicate this week it plans to end its campaign of interest rate cuts.

Expectations
The central bank is widely expected to cut rates by a quarter percentage point at its policy meeting on Wednesday. A growing number of economists predict the Fed will then keep rates on hold to ward off inflation. “What it means is that the market isn’t so convinced that the economy is falling apart as it was a month ago,” said David Wyss, chief economist at Standard and Poor’s. “It also means that investors are not expecting the Fed to go down as far–25 basis points instead of 50.”

Guidance
Mortgage rates have an inverse relationship with bond prices. As bond prices continue to fall, it is likely to see an increase in mortgage interest rates. With current mortgage rates still at historically low levels, now is the time to contact Georgie so she can structure a mortgage solution to meet your financial goals.

 

Traverse Mortgage Corporation

   (231) 947-9700        (800) 968-3680 

georgie@traversemortgage.com

 

Mancelona – Quiet Country Setting w/ 10 Acres

7323 Covert Rd

Mancelona, MI

Priced $ 15K under recent appraisal. Quiet country location for this stick-built ranch on full basement, with steel roof & almost 10 acres. Large pole barn for all the toys, hobbies & is insulated in one half. Parcel is open at the front making it a perfect spot for that garden you’ve always wanted. Just over 1200 SF & ready for quick occupancy. Great spot for the outdoor enthusiast, close to snow-mo trails, state lands, lakes & more. Seller is looking for offers & has thrown in a Home Warranty too!

Just $114,900

View Listing Details       Vitrual Tour

For more information, please call the Nichols Team at 231-941-8283 or tcinfo@remerica.com

 

Mortgage Market News for the week ending April 25, 2008

Looking Ahead to the Fed

With little scheduled economic news and a couple of major events on the horizon, there was little change in mortgage markets during the week. The daily volatility remained high, however. Mortgage rates ended a little higher than the prior week, and the stock market was almost flat. Investors were mostly preparing for next week’s Fed meeting and Employment data.

Investor sentiment for future Fed actions has shifted significantly over the last couple of weeks. Just weeks ago, investors were expecting an additional three quarters of a point of Fed rate cuts over the next two meetings. Now many believe that the Fed will cut rates by only one quarter point at Wednesday’s meeting and then will hold rates steady. The thinking is that the Fed will pause to consider the effects on the economy of prior rate cuts, other expansionary monetary policies, and fiscal stimulus packages (such as the tax rebates). With energy prices at record levels and the dollar at historic lows, the Fed wants to balance the risk of slower economic growth with the need to prevent higher future inflation. This path could be good for mortgage markets, as higher inflation would generally lead to higher mortgage rates.

In the housing sector, the market for existing home sales showed additional signs of stabilizing, while new home sales displayed weakness. Matching expectations, March Existing Home Sales fell a little from February. Median home prices fell 8% from one year ago, while inventories of unsold homes rose slightly. March New Home Sales fell 9% from February. The chief economist of the National Association of Realtors (NAR) suggested that housing market conditions varied greatly in different regions of the country. The NAR predicted that housing market activity will be flat for a few more months and then will pick up during the second half of the year.

Brought to you by:

Corey Phelps

Front Street Mortgage

Phone: 231-360-7283

Centrally Located in Traverse City

3140 Rennie St

Traverse City, MI

This is a bargain waiting to happen…available now for short sale…This nicely designed, appointed and maintained ranch home easily accessible and close to everything there is to do in Traverse City and environs. Close to shopping, schools, professional services, etc…This is a must see.

For more information, please call Gail Matthews at 231-620-6138 or gail@remerica.com

MSHDA update!

Hello!  There has been some exciting MSHDA changes.  The new income limit for 1-2 persons is $73,080, for 3 or more the income limit is $85,260.  Now, get this………the sales price limit has increased to $224,500! The current 30 year MSHDA rate is at 5.5% Call me if you would like more details. Have a great weekend. 

Georgie

Simple Free Advice & Simple Solutions for U

 Selling or even thinking about it? If your property is lingering on the market & your not sure why or if you are considering selling soon here are some straight forward thoughts on your situation. Property these days must be priced right from the start. This has always been important, as a property listing is only new to the market one time. Today’s market has put this fact to the test over & over again. As a seller you must change hats & think like a buyer! If your plan was to buy today, would you look at overpriced property? Buyers are insisting on the best buy for their hard-earned dollar…just as you did. Well, guess what? Their timing just happens to be better than yours…It is a full-blown “Buyers Market” everywhere you look. Buyers are finding & taking advantage of these deals. That is actually good news because without aggressive, hard-to-impress buyers things could be even worse. Overpricing your property simply will lead to more time on the market which in the end will decrease any eventual profit. Have you looked at the condition of your property lately? Buyers are looking over things very closely & so should you. Make necessary repairs, updates & clean, clean, clean! The ONLY buyer who will even think to consider a property needing repair or updating is an investor. Investors are very hard to come by in today’s climate & what they expect is to purchase, repair, cover these costs & make as a bare-bones minimum 10% for taking the risk & putting forth the effort. Sellers…that is the not so pretty skinny. 

Don’t kid yourself either into thinking that all Realtors & real estate sales firms are the same. They are not. In this market you need all aspects of your sales efforts to be “top-notch” in order to get the job done & done right. Remember REMERICA when you decide to sell!

 Thinking of Buying? Did you know that at one time interest rates topped 20%! That created some very nice bargain shopping opportunity just like in today’s market, if you could afford a 20% rate! Well, have you checked rates lately? Less than 6%! Please understand that a competitive rate such as this does not mean you will qualify. The old rules of having a job, good credit, possible money down & most importantly the right lender, still do apply. It is true that in the wake of huge amounts of bank foreclosures, job losses & other negative factors, the flow of mortgage money has decreased but it has not been shut off. Many good people can still attain a mortgage at a rate that is unprecedented. Minimal or No-money-down is still doable & many programs are still available to accommodate today’s buyer, in today’s market. I do however want to reiterate the importance of matching yourself with an honest, reputable, lender who knows the local market & comes highly recommended. Nothing will kill your dreams & put the fear of buying into you faster than aligning yourself with the wrong lender.  I’m sure you’ve heard at least once to not buy now…hold out; the market will continue to decline…No one is going to ever show you how to pick the bottom. Now IS the time to buy as the market & its momentum is heading in one direction (down) Many of the most successful investors throughout history have practiced what is called the Contrarian Theory. In the most basic terms it means to buy when everyone is selling & sell when everyone else is buying. Or, Buy Low-Sell High. Simple stuff to help you make the best decision & best deal on what will most likely be the biggest investment of your life. It is doubtful that at any time during the rest of your life there will be another opportunity to purchase real estate like we are seeing right now.  Don’t let this pass by-instead…BUY NOW!  Oh, & don’t forget to call REMERICA when the time is right for you to move.  Brad NicholsCo-Broker/Ownerbrad@remerica.com