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

Perfect Summer Cottage in Frankfort

Judy Stovak | Remerica-Traverse City | 231-649-9777 1676 Cedar Street, Frankfort, MI Near Lower Herring Lake 2 Bdrm Single Family House   offered at $99,900 Year Built 1940 Sq Footage 1,048 Bedrooms 2 Bathrooms 1 full, 0 partial Floors 1 Parking 3 Lot Size Unspecified HOA/Maint $0 per month DESCRIPTION Location! Location! Large corner lot amongst well kept summer residences. Very close to public access and boat launch to Lower Herring Lake, small lakeview from west side of house. Nice enclosed porch for relaxation or additional sleeping area. Quiet area just south of Frankfort for great family get togethers and weekends getaways. This home is a year around residence and ther are a few residences that are also year around.   see additional photos below Click for listing details PROPERTY FEATURES Fireplace Living room Dining room Refrigerator Stove/Oven Washer Balcony, Deck, or Patio Yard     ADDITIONAL PHOTOS Seller contact info:   Judy Stovak judy@remerica.com Remerica-Traverse City 231-649-9777 For sale by agent/broker   Equal Opportunity Housing Posted: Apr 7, 2008, 9:05am PDT

 

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 

2BR home West of Interlochen – 3 Outbuildings

16550 Fewins Rd

Interlochen, MI

Nice wooded lot with cozy, cute home with 2 outbuildings and three garages. 1 car garage next to home is 16 x 20, 2nd garage/pole building is 24 x 24, 3rd pole building is 24 x 40. Close to 1000’s of acre of state land, great starter home for hobbyist.

Click for details

For more information, call Judy Stovak at 231-649-9777 or judy@remerica.com.

 

Diesel Prices Impacting Home Buying?

Items for contemplation:

Being an old diesel head, by my calculation diesel fuel is up in the last year more than 40%.

Because diesel fuel is used for every form of transportation (trucks, trains, airplanes, delivery trucks) it should not be any surprise that the cost of food products, durable goods, building materials, equipment, you name it has increased in cost at far greater rate than the general inflation rate.

The loss of the Bear Stearns investment house and purchase by JP Morgan supported by the FED clearly is an indication of just how deeply the fuel and housing crisis is impacting our daily life and, for us involved in the housing sector, the ability to achieve the American dream of home ownership.

Across the board we are seeing major builders in turmoil, small and large builders in foreclosure, banks making margin calls, investors loosing their nest eggs, personal portfolios being attacked by recessionary fears, the depreciating dollar, the ever stronger Euro, oil going up daily and no end in site for downward price adjustments in home sector.

Because Michigan led the nation in an uncontrolled economic flat-spin (sky-divers term for an out of control free fall) we are now seeing buying opportunities far ahead of the nation. Now is the time to buy individual homes; now is the time to buy packaged foreclosures; now is the time to buy development properties; now is the time to invest in our State because it is the right economic decision for you at this moment in time.

So what does diesel fuel have to do with housing, simply put everything! Every building product used in some way is dependent upon the consumption of diesel fuel. Generators, trucks, cement mixers, delivery trucks, processing plants, worker to/from work transportation etc.  At the moment the impact of soaring diesel fuel costs is just beginning to be understood and the dramatic impact of diesel fuel has not yet been fully impacted in the housing industry as it has been in some sectors of the economy (freight haulers for example).

Bottom Line: Buy now while the price of homes and building materials are at record level lows and before the price of diesel begins to boost the price of homes and commercial projects.

 

Brent Nichols

Co-Owner/Co-Broker

brent@remerica.com 

Now IS the Right Time to Buy in Michigan!

Weakness in the market has always been equated to buying opportunities. Never has this axiom ever been more accurate then the chance for investors to buy properties in Michigan at significantly discounted prices.

As most of the nation knows Michigan has been in a recession for several years as a result of loss of jobs in the all important automobile sector, high state taxes, a generally anti-business mentality and environmental concerns that are now being addressed to permit a more friendly business climate. ALL of the negative this is changing far ahead of the rest of the nation and translates to opportunity.

In every cloud there is a little gold. Only now are other states beginning to feel the harsh pinch of foreclosures, unemployment etc.. Michigan may have led the way down but the real estate market HAS stabilized and is producing great investor opportunities in the real estate market throughout the State.

Want a single family home; commercial buildings; bundles of foreclosed single family home properties; manufacturing facilities; vacant land; idle developments with installed infrastructure; your call!! There remains a significant unsold inventory throughout the State and that spells opportunity!

For investors of all categories now is the time be it Canadian, Middle Eastern, US or Euro based investors. Email for more information or to establish a relationship with a professional.   

Brought to you by:
Brent Nichols 
brent@remerica.com
(231) 941-8283
Broker/Owner

Kalkaska Area Farmhouse For Sale

3785 Westwood Rd

Mancelona, MI

Nicely renovated older home with modern flair. Located midway between Kalkaska and Mancelona off 131. Good deal sitting on 3 acres. Just $67,900.

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

Weekly Market Forecast

MSHDA increased the interest rate to 5.125% today.
 Please call me if you have any mortgage questions.
Georgie
 Week of: Monday, March 03, 2008 

Present Market Conditions
Stocks looked set to kick off the first trading day of March on a downbeat note, as worries about the slowing economy and weak dollar continued to stalk investors. Personal income rose 0.3% in January as consumer spending rose 0.4%. Incomes are growing at a moderate 4.9% pace annually while spending increased at a 5.5% rate. Their contribution to economic growth in the current quarter will be less than in the previous quarter. The price index remains elevated by the Feds standards but weak economic growth this year should dampen core inflation. 

Expectations
Investors will get a fresh reading early in the week on nationwide manufacturing activity from the Institute of Supply Management as well as the Commerce Departments report on construction spending. The ISM index is forecast to fall to a reading of 49 from 51.5 for January with the construction spending following suit. Investors will also be waiting for the Employment Report and Pending Home Sales Index due out later this week.

Guidance Now is the time for consumers to take advantage of the current low rates. Contact Georgie so she can structure a mortgage solution to meet your financial goals.

 Traverse Mortgage Corporation   (231) 947-9700        (800) 968-3680

NORTHERN MICHIGAN BUYING OPPORTUNITIES

Major downward price adjustments in real estate have been the order of the day in Northern Michigan for the past several months making Northern Michigan a tremendous buying opportunity for investors, home buyers and those looking for vacant land in paradise.

The brakes seem to have finally gone on regarding foreclosures as new foreclosures declined dramatically in January 2008. According to several recent articles the reduction in foreclosures in Michigan dropped by as much as 7% in January. Fishing for the bottom? Who knows!

If you are a Euro buyer looking for real estate of all classifications now is the time. Banks are selling short on those properties they own as they try to blow out their unwated inventory of homes and we are now seeing a dramatic round of “pre-foreclosure” bank approved price adjustments to keep banks from owning more property.

Bank foreclosure and pre-foreclosure approvals have put great pressure on builders and private home sellers alike. If you are buying now is the time to acquire your real estate in Northern Michigan. Wait no longer – time to buy!

Brought to you by:
Brent Nichols (brent@remerica.com)
Broker/Owner