News for Prescott AZ - AmericanTowns.com

Friday, February 12, 2010

Mortgage Market update for Valentine's Day

 

Good Morning. Wow what a beautiful day in Prescott yesterday and we are looking forward to a nice weekend as well. Find your valentine and get them outside for some fun and sun!

I wandered downtown last night and listened to my new favorite, open mic nights”. They have them at various locations around town. It never ceases to amaze me the talent that we have locally. What fun.

For those of you who know me well, you know that I am very passionate about my mountain biking. It is my source of unwinding and I love it. I meet people and get to know them better like Rob Israel, who rides way too fast for me! Dang young guys!

So you ask, what does this have to do with real estate. Well just like open mic nights, we are not aware of the many things going on in our community that are helping build the future. Please read the article below….

 

The International Mountain Biking Association (IMBA) is interested in working with local cyclists to make Prescott a Mountain Biking Ride Center. 

WHY: Prescott has a phenomenal network of single track trails and is starting to get noticed as a ride destination. 

SO WHY DO WE NEED IMBA? IMBA has compiled the research to show city leaders just how much economic growth can be stimulated by mountain bikers when they come to town. (Money talks especially during an economic down turn.) 

Prescott Cycling Club Inc., Raven Singletrack Inc., City of Prescott Parks and Recreation, The National Forest Service, Prescott Alternative Transportation, local cycling advocates, and representatives of the Chamber of Commerce are interested in working together to make this happen.

WHEN DID THIS BEGIN? IMBA came to town on Saturday, January 23, 2010. They explained how IMBA could help Prescott become a ride center and the economic benefits for the whole community. More than 60 local mountain bike riders attended along with Council members Lora Lopas & Tammy Linn and Mayor Marlin Kuykendall. 

WHERE EVOLVED FROM THIS MEETING? A steering committee has been formed for the purpose of establishing a Prescott mountain biking coalition to work with IMBA and local leaders. 

PRESCOTT CYCLING CLUB IS INVOLVED -- The current leadership is part of the steering committee and will keep PCC membership informed of progress. Please connect your current PCC Board with questions or suggestions and let us know if you’d like to get involved.

 

This was from a recent email I received. Mountain biking is a huge growing sport with all ages. I was recently at Red Rock in Vegas and there were hundreds of bike riders in the park! Prescott is an undiscovered bike riding Mecca. Now I have to admit, I prefer wide open trails with fewer people and that is why I live in Prescott. However, this is good for our economy and home sales. One of my best friends actually owns a home here just so he and his valentine, can ride their bikes! I am serious! I have done loans for people who were buying second homes for that reason as well.

 

On other fronts this is an interesting article below. It very lightly touches on the subject of rising rates and some of the causes that are going to very soon set them in action.

 

 

Fannie and Freddie  will ramp up their purchases of some $200 billion in delinquent home loans that they guarantee.  Fannie and Freddie's move to accelerate bad-loan purchases will flood investors with cash at a time that the government is looking to investors to pick up the pace of their acquisitions of newly issued mortgage-backed securities. For more than one year, the Federal Reserve has been propping up the housing market by being the primary purchaser of those bonds. But the Fed is set to wind down that $1.25 trillion program, which has helped keep mortgage rates at near-record lows.   Many of those investors will look to plow that money back into the mortgage market.  Fannie Mae and Freddie Mac’s plan to step up purchases of delinquent loans may boost prepayments on their securities to rates that in some cases would erase all of the debt within a year. After the buyouts are completed, prepayments on Fannie Mae and Freddie Mac securities would be easier to predict, making the bonds less risky, because the debt would have “limited delinquencies” and “limited rate refinancing risk.

 

Some of you may remember my preaching from last year that we must get private money back into mortgage securities. The dilemma is how to do that. How do we get someon with money to invest, to take a risk in buying mortgages? The answer is to offer them a higher return to entice them. This will drive rates for a while in our future.

I hope you enjoy your weekend. It could be busy for you as this is a holiday weekend. Happy Valentine’s day to you all!

 

Dan Shaw

 

Peoples

 

928.710.9146 cell

480.248.1199 fax

dshaw@peoplesmortgage.com

www.pinecountrymortgage.com

This is not the opinion of Brad Bergamini, Realty Executives Northern Arizona or any of its affiliates.  This post is for informational purpose only and is not guaranteed and does not render as legal advice.  Buying and selling Real Estate in Arizona or Prescott Arizona is a serious task and should be consulted with personally with Realtor or Real Estate Attorney.  Please visit my website for contact information

http://bradbergamini.com

 

 

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