Month: January 2008

Engle Homes has filed for bankruptcy protection…They are selling new homes all over our area, including  the Linton Crest subdivision off of Linton Hall Road.   The builders who operate under the name Engle Homes are also known as Tousa Builders.

This is just another reason why it is SO important to have a realtor represent you when buying a new home.  

This is the 2nd cut in just over a weeks time!   The Fed. decreased the federal funds rate which impacts consumer loans.   Today’s cut was 1/2 of a percentage point, and with last week’s 3 quarter point cut, the key overnight lending rate is now at 3%.   This is the lowest point since the middle of 2005!

The Fed is also  showing signs  of cutting rates even more in the future.   This is the type of aggressive action that we need to stimulate our countries economy!  

Does all of the negative news from Wall Street have you down?   Here is something that might brighten your day.

Interest rates on home mortgages are at their lowest points in a long time, and homeowners are taking advantage of it.  

According to the Mortgage Bankers Association, home mortgage refinance applications are up 92% since November, and the average rate on a 30 year fixed rate mortgage is down to 5.49%.

Now is a great time to refinance, or upgrade to the home of your dreams.

I have a great resource in my office I can refer you to if you have questions about whether or not you should refinance, or if you have questions about financing that home of your dreams.

This morning, the Federal Reserve unexpectedly announced it was cutting the federal funds rate that effects consumer loans as well as the discount rate effecting bank loans by three-quarters of a percentage point each. This is a bold move which shows that Fed Chairman Ben Bernanke is following through on his promise to take “substantive action in a timely and decisive manner” to keep this country out of a recession.

Rate cuts typically stimulate economic growth over time by making it cheaper to borrow money for consumption or investment after banks follow the Fed™s lead and lower their prime lending rate for their best customers.

If you have been thinking about selling your home, and upgrading to a more expensive home, now is the time to do it. Homes in our area are selling for a bargain, and mortgage rates are already low and look like they will be going lower real soon.

Appraisals are receiving much more scrutiny, and lenders are asking some buyers to provide more down-payment cash.

Today, everyone from highflying bond investors to loan officers want more assurances that new loans won’t add to the losses that the country has experienced in the current credit crisis.

When I asked a client about if the declining market makes him hesitate investing in real estate, I was given this answer…”No, you need a place to live….I will be here at least five years. I am not under the false assumption that I am going to get rich. When you are renting, your losses come out to be $20,000 a year in rent plus tax breaks…”

I think things are slowly beginning to look up for the market, and I believe this is a direct result of lenders checking themselves and their clients.

Radon is a colorless, orderless, radioactive gas.  

Radon is a major factor homeowners have to face Northern Virginia.   Radon is the 2nd leading couse of lung cancer in the US.   There are things you can do to protect you and your family.

*One out of 15 homes in the US is estimated to have elevated radon levels.

*Do-it-yourself tests for radon can be purchased for $10 to $30.   Radon can also be professionally tested.

*The average indoor radon level is about 1.3 picocuries per liter in the United States.   The Environmental Protection Agency recommends homeowners take corrective action if the radon detected in a house is at or above 4pCi/L.

*Reducing radon levels involves installing a vent pipe through the basement slab and venting gass out of the roof.   The cost for this is estimated at $800 to $2,500.

Jan 8 “ Sales contracts on previously owned homes fell by 2.6% in November, a sign that sales will continue to decline after increasing the previous two months.  

Jan 10 “ Freddie Mac reported that the average 30-year fixed rate mortgage was at its lowest point since September 2005.

Jan 11 “ Bank of America agreed to purchase Countrywide Mortgage, the largest lender in the U.S.

Jan 11 “ A record increase in imported oil prices in November sent the trade deficit to its highest level in more than a year.

Jan 11 “ Oil closed the week at $92.90 a barrel, down from $97.91 last Friday.

 

Chairman Bernanke said the Fed is ready to take “substantive additional” rate cuts to support growth and insure against the risks of a sharp downturn in the economy. The market is expecting short-term interest rates to be cut by .50% at the Fed meeting to be held on 1/29 “ 1/30/08.   The Fed could drop them quicker in reaction to the decline in the stock market.

 

Friday™s 10-year Treasury note closed at 3.79%, down from 3.87% last Friday.

 

This information was compiled by my office’s   Senior Mortgage Adviser,   Dick Opel.

 

Bank of America will be buying Countrywide for 4 billion dollars in stock!   The sale is supposed to close in the 3rd quarter of 2008. This will help to rescue the biggest mortgage lender in our country. I believe this is going to help the housing market in the long run.

If Countrywide was to fail, it would be a huge blow to Fannie Mae and Freddie Mac, which are government sponsored mortgage companies.   These two companies are major purchasers of Countrywide’s loans.

I hope everyone had a great holiday season.   My family and I spent our holiday back in Texas.   One of the new hot trends in home improvement in the South is stained concrete flooring.   It is inexpensive and very stylish.   My husband and redid the flooring in my Mother’s home with this new trend of staining.   The end result was amazing.

I have had many people approach me lately asking me about remodeling their kitchen before they sell.   It is a good idea to do some planning before you call a contractor or visit you local home improvement store.   First, you might want to begin by creating a type of “style book”.     Look through your favorite home magazines and pull out the pictures that YOU like.   Second, think about what you want to use the remodeled space for in your kitchen. Third, come up with an idea of what YOU want to spend.   Finally, decide when you want to start the project and what kind of time frame are you looking at for the completion of your kitchen project.

These tips might sound like common sense to most of you…But when you don’t know what you want or don’t have clear goals, it is much easier to get talked into having things done you don’t want or spending too much money.

Candice Skoby