Archive for January, 2008
FED Rate and Mortgage Rates
January 30th, 2008 Categories: Real Estate News
Historic Fed Move Cuts Both Ways for Borrowers
Hot on the heels of its surprise inter-session rate cut of 75 basis points last week, the Federal Reserve cut key interest rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the federal funds rate “in view of a weakening of the economic outlook and increasing downside risks to growth.” In other words, economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.
Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit (HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next statement.
What does this mean for long-term rates?
Long-term mortgage rates, the lowest we’ve experienced in years, could actually increase after today’s cut, based on historical performance and recent trends.
So if you’re waiting for long-term rates to fall further, don’t count on it. Your best chance to lock in the lowest rates since 2005 is now. Getting your application in process now will allow you to capture a great rate before it’s too late.
What REALLY moves mortgage rates?
Fixed-rate mortgage rates ARE NOT DIRECLTY TIED to the Fed interest rate moves. Instead, they tend to follow in the direction of other long-term government bond yields, such as the 10-year Treasury, which historically moves in accordance with the economic outlook and in advance of Fed actions. The performance of Mortgage Backed Securities, issued by Fannie Mae and Freddie Mac, is what really determines long-term mortgage rates.
How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a double-edged sword for borrowers. Combined with recent Fed actions, the package could create inflation and bring about higher long-term interest rates.
On the positive side, conforming loan limits are likely to be raised from the current $417,000 to upwards of $625,000. This means great potential savings for purchase and refinance candidates who live in 20 high-cost areas across the country.
What should you do next?
If you’re unsure how the rate-cut or the proposed legislation affects your mortgage, don’t worry, you’re not alone. There’s no one-size-fits-all answer. Give us a call right away. We’ll review your mortgage and see what, if anything, can or should be done to make the most of your individual financial goals and needs.
Rob Aubrey 801-694-4762
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4th Quarter Stats Are Posted
January 28th, 2008 Categories: Real Estate News
or Click Etcha Sketch For Stats
Stats Are for the Wasatch Front reported by county then by zip.
The report compares the 4th quarter of 2007 to the 4th quarter of 2006
If you have any questions about a particular area feel free to contact me.
Remember Real Estate is Local In Nature.
Rob Aubrey 801-694-4762 or Rob@Aubrey.net
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MEME- It should not be about ME but today it is
January 27th, 2008 Categories: Not Real Estate
I got tagged to write a meme by SF Bay Area Real Estate Expert Ginger Wilcox. What is a meme? Basically, in the blog world, a meme is a question that is asked on one blog and answered on another. SO in this meme chain, Ginger tagged me and asked me to (1) list 7 things about myself, (2) tag 7 people to do the meme on themselves including a link to their site. It is all in the name of good fun, and probably helps with “transparency” too. So here are 7 random things, all about ME!
1. I was born and raised* in Philadelphia. Grew up on the same street as both my parents. They grew up 5 doors apart. Had the same nun in 1st grade as my dad. My have times changed.
2. In 1962* my parents loaded up the car to move to Florida. Our car broke down in Smithfield North Carolina. Taking several weeks for parts (1962), my dad got a job and we lived there for two years before moving back to Philly, yes to the same street. Photo is me in NC 1963, check out the car in the back.
3. Well I moved to South Florida in my mid twenties. Met the most awesome woman named Julie, fell in love and got married March 3rd 1990. I once told her she had no sense of humor, she replied I married you didn’t I, that’s a keeper.
4. 1995 BC (before children) Julie’s Company opened an operation in Salt Lake City. We liked the prospects of SLC, Family oriented, conservative and we were wanting to start a family. Which we did, our daughter Cassandra was born in Aug ’97 and our son Christopher Aug ’02.
5. I have been in the Real Estate industry since 1992, before that I was a third generation house painter, I thought we would never finish that house. lol
6. I work with single mother support groups. I and a lender work together to help single moms own a home. We use our commissions for down payments and closing cost. I have always had a heart for the single mom, don’t know why. My parents have been married over 53 years. My wife and I have no other families… Homeownership is Good For Literacy.
7. I love electronic toys, remotes, smart phones, widgets, blogging, twitter. I like watching Pro Football, born an Eagle fan, I like pro hockey, not much of that in the inter-mountain west.
So here go my seven others and I hope I am not overstepping any bounds with them. If you have a meme already, just post it.
People I have met blogging, twittering…
Tomato Associates
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Neoclassical
January 26th, 2008 Categories: Architecture
A well-publicized, world-class event can inspire fashion for years. At least that’s the case with the 1893 World’s Columbian Exposition in Chicago, which showcased cutting-edge classical buildings that architects around the country emulated in their own residential and commercial designs. The Neoclassical style remained popular through the 1950s in incarnations from one-story cottages to multilevel manses. Its identifying Ionic or Corinthian columned porches often extend the full height of the house. Also typical: symmetrical facades, elaborate, decorative designs above and around doorways, and roof-line balustrades (low parapet walls).
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Mortgage Rates In Salt Lake City Call
January 25th, 2008 Categories: FHA, Mortgage
Holy cow, how else do you describe the mortgage rates this week. There was a point where lenders were not locking in rates because they were changing so fast. They were at their lowest in a long time, they were back up, they Feds droped the short term rate by 75 basis points, the DOW Jones had a 600 point swing in a day.
So what does all that mean? Rates are great and houses are available, hmmm. A good time to buy? Maybe.
FHA buzz flying around today, there has been talk about raising the FHA limit and lowering the 3% down payment to 1.5%. Before everyone starts crying that kind of lending got us in trouble in the first place. NO IT DIDN’T. FHA is a full doc loan, meaning you need a job that you can prove. Lenders are more regulated. Boy has there ever been a time to be a FHA loan officer for a FHA qualified mortgage company (most aren’t).
Rates are under six for the basic stuff and not much more for the not so basic.
Call Cindee at 801-381-3863 or Cindee@CindeeStone.com
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What a $1,000 a Month Looks Like In Salt Lake
January 23rd, 2008 Categories: Real Estate News
Click Photo For Tour
To arrange a preview call The Rob Aubrey Group at 801-694-4762 or Email Rob@Aubrey.net
I usually don’t write about listings in the main blog page, but I had to show buyers what the current market looks like. Because of interest rates are so low. You can own a condo like this for right around a $1,000 per month including taxes, insurance and the homeowner fees.
Immaculate One Owner Condo
Built 1995
2026 W 3650 S, 84119
All New Paint, New Carpet, Laundry Room
Gas Fireplace, Good Storage, Eat In Kitchen
Large Master With Walk In Closet
Refrigerator, Stove, Dishwasher
$90 HOA Taxes $930
2 Car Garage With Opener
To Search Over 15,000 Homes For Sale With Tours And Addresses
| Discussion: 1 Comment »
National
January 19th, 2008 Categories: Architecture
Born out of the fundamental need for shelter, National-style homes, whose roots are set in Native American and pre-railroad dwellings, remain unadorned and utilitarian. The style is characterized by rectangular shapes with (insert link side gabled roofs) or square layouts with pyramidal roofs. The gabled-front-and-wing style pictured here is the most prevalent type with a side-gabled wing attached at a right angle to the gabled front. Two subsets of the National style, known as “hall-and-parlor family” and “I-house,” are characterized by layouts that are two rooms wide and one room deep. Massed plan styles, recognized by a layout more than one room deep, often sport side gables and shed-roofed porches. You’ll find National homes throughout the country.
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Mortgage Rates In Salt Lake City
January 19th, 2008 Categories: Mortgage
Rates Week Ending January 18th 2007
Rates have this week, 30 Year Fixed under 6%.
Rates haven’t moved much last week and are still great.
What can I say, it is a great time to buy, inventory up and rates are great.
Conforming mortgage rates mentioned below are considered with loan amounts up to $417,000 for a single family residence and is owner occupied. It is with proving your income and a “full document borrower”.
The rates quoted are based on a purchase price of $200,000 on a 30-day lock. On these conforming loans, there are no prepayment penalties involved.
Conventional and Government Loan Interest Rates
|
Program |
Rate |
APR |
| 95% | 5.75 | 6.96 |
| 100% With Mort Insurance | 8.88 | 7.30 |
| 100% No Mort Insurance | 6.63 | 6.81 |
| My Community 100% | 6.38 | 7.31 |
| VA 100% | 5.75 | 5.92 |
| FHA 97% | 5.63 | 6.46 |
If you would like any additional scenarios done, please call for that information at 801-747-1233 and ask for Cindee or email to Cindee@CindeeStone.com
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Utah Real Estate Market According to An Expert Jeff Thredgold and Others
January 17th, 2008 Categories: Real Estate News
Utah Housing Forecast
We hear all kinds of hullabaloo about the Utah Housing market, from reporters committing loan fraud to someone that has never bought or sold a piece of property BUT listens to NPR.
Let’s hear from some experts
National Economist
“Utah is one bright spot compared to other parts of the country that are in severe pain,” said Lawrence Yun, chief economist for the National Association of REALTORS®. “It’s the shining star so far if one wants to say which market is hot.
” But that’s not to say Utah real estate will be completely free of cloudy conditions in 2008. Despite Utah’s strong economy, housing sales are still expected to slow in 2008 and some markets may face affordability challenges.
“In Utah, you’re going to see home sales at a lower, more sustainable rate, but they aren’t going to falter,” said Jeannine Cataldi, senior economist for economic forecasting firm Global Insight.
She expects activity to pick up once people know the full extent of the mortgage crisis, which is expected to peak in 2008. “Once we know how that plays out, people can make decisions and move forward,” Cataldi said.
The more debatable subject is what will happen with home prices. Some economists expect to see single-digit price growth in 2008 while others expect slight price declines.
Local Economist
Some local economists, however, see a slightly different picture.
Mark Knold, chief economist for the Department of Workforce Services, says he predicts prices will probably come down a little because he thinks, “prices are flirting above what this market can afford even in the face of good wage gains.”
Kelly K. Matthews, Wells Fargo’s executive vice president and senior economist, also says Utah has an affordability problem, which is why he expects prices to be down 6 to7 percent in mid-2008.
“I believe we are so far out of equilibrium, I do not believe we can avoid some reduction in prices.”
At the same time, Jeff Thredgold, economic consultant to Zions Bank and president of Thredgold Economic Associates, sees price activity varying depending on the market segment.
According to Thredgold, lower-end properties in the $175,000 to $300,000 range should increase approximately 7 to 10 percent. Some homes in the $300,000 to $500,000 range should see price gains of about 5 percent while others may see a slight decline. The real concern is the market for $500,000 and above properties; people may have to cut prices, and there may be areas that have to come down 5 to10 percent, he says.
“All real estate is local,” Thredgold said. “In certain communities, it will do well, but in some areas, prices may have to come down.”
I am more in line with Thregold, he clearly understands there is no across the board blanket diagnosis for Real Estate. It is local in nature, you can have zip codes with two different markets with tow different conditions at the same time.
If you would like info on your particular maket contact me.
Above quotes are from the Utah Realtor Magazine
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Searching For A Home In Cottonwood Heights
January 13th, 2008 Categories: Cottonwood Heights
Searching For Homes In Cottonwood Heights
Searching for homes has certainly gotten a whole lot easier from when I first started my real estate career. We us to use the MLS books, they came out every two weeks. Properties were separated by area, then by price. You would look through the pages and that is how it was done. So as a consumer you had to go to a Real Estate Agent to sit and look at books.
I have created a lnk on the Right Side in Salt Lake Resources Called Cottonwood Heights Listings, it is probably about 95% accurate. Not all agents list homes as Cottonwood Heights, some like to list them as Salt Lake based on the theory that an out of town buyer is going to search Salt Lake first.
What was worse was doing a market analysis, you had to go to the back and look at the homes that have sold that month and then go back each month and gather your comparable sales, and then enter the findings in a form that would amount to a paper spread sheet and make adjustments. Those that have been around long enough typically can price homes better than those from the computer only versions. Today it is like using a calculator without knowing how to do long division. Even when we first went to the computer for listings, we still had to print out a list and then go through the paper form.
To Search Over 15,000 Listings Throught Out The Wasatch Front this is the same inventory that Realtors have.
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