News for Prescott AZ - AmericanTowns.com

Monday, October 31, 2011

QUOTE OF THE WEEK..."Success seems to be largely a matter of hanging on after others have let go."--William Feather, American author and publisher


Having trouble viewing this email? Click here to view web version
Inside Lending from Theron Wall
Theron Wall
Theron Wall
Sr. Mortgage Consultant
1575 Plaza West Drive, Suite C
Prescott, AZ 86303
Office: 928.445.8730
Fax: 928.445.1065
Cell: 928.533.7473
Wallick & Volk Mortgage
For the week of October 31, 2011 – Vol. 9, Issue 44

>> Market Update 

QUOTE OF THE WEEK..."Success seems to be largely a matter of hanging on after others have let go."--William Feather, American author and publisher

INFO THAT HITS US WHERE WE LIVE
...Last week's housing news did give all of us in the industry a few more things to hang onto. First, we saw new single-family home sales go up 5.7% in September, to a 313,000 annual rate. Next, it was nice to see the supply of new homes drop to 6.2 months. The inventory is now at the lowest level on record.

Then, Case-Shiller's 20-City Composite Home Price index was up for the fifth month in a row in August
and 16 of the 20 metros tracked saw an improvement in their annual rates of change. Case-Shiller called this "a modest glimmer of hope" for the housing market. We'll take it. Finally, the Pending Home Sales Index dropped a bit in September but was UP 6.4% year over year. This gauges signed contracts on existing homes that are not yet closed.

BUSINESS TIP OF THE WEEK
...Be decisive in recognizing mistakes, even if they're your own. When you see something wrong, don't dwell on it--fix it!. That's the fastest way to success.

>> Review of Last Week

FOREIGN PROGRESS, DOMESTIC BLISS...Just the announcement of a plan to solve the debt crisis in Europe was more than enough to send investors into a state of ecstasy. Well, that may be a bit of an exaggeration, but the Wall Street faithful certainly felt upbeat enough to send all three market indexes solidly northward for the week. This makes four straight weekly gains for the broadly based S&P 500. But good news from foreign lands couldn't take all the credit.

Over here, Q3 corporate earnings reports were mostly better than expected. Personal Income was up for September, as was Personal Spending, showing the consumer has the money to participate in the recovery and is willing to do so. Even the most strident recession evangelists were silenced by Thursday's Advance Q3 GDP which had the economy expanding at a 2.5% annual rate. This is nicely above Q2's 1.3% rate, although not yet high enough for the job growth we need.

For the week, the Dow ended UP 3.6%, at 12231; the S&P 500 was UP 3.8%, to 1285; and the Nasdaq also gained 3.8%, to 2737.


Europe's blueprint to ease its debt crisis got investors dumping bonds and moving into riskier equities. The selling sent bond prices down, although some of those losses were recovered on Friday. The FNMA 3.5% bond we watch ended the week down .05, at $100.26. But there was little change in mortgage rates, as national averages pretty much held steady, according to Freddie Mac's weekly survey. Of course, interest rates could rise if mortgage bonds lose their investor appeal.

DID YOU KNOW?
...The Employment Report, released by the Bureau of Labor Statistics on the first Friday of each month, contains data for the period ending on day 12 of the prior month.

>> This Week’s Forecast

LOOKING AT MANUFACTURING, THE FED, OCTOBER JOBS... The week begins with a couple of good readings on manufacturing, the Chicago PMI and the ISM Index both expected to continue showing expansion. The Federal Reserve stages another Federal Open Market Committee meeting this week. The Funds rate will stay where it is, but the policy statement on Wednesday will be scrutinized as usual.

The key economic news for the week will be the October Employment Report on Friday. Unfortunately, the forecast is for just 88,000 new jobs, not enough to bring the Unemployment Rate down from 9.1%.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Oct 31 – Nov 4
 Date
Time (ET)
Release
For
Consensus
Prior
Impact
M
Oct 31
09:45
Chicago PMI
Oct
58.9
60.4
HIGH
Tu
Nov 1
10:00
ISM Index
Oct
52.1
51.6
HIGH
W
Nov 2
10:30
Crude Inventories
10/29
NA
4.735M
Moderate
W
Nov 2
12:30
FOMC Rate Decision
11/2
0%-0.25%
0%-0.25%
HIGH
Th
Nov 3
08:30
Initial Unemployment Claims
10/29
402K
402K
Moderate
Th
Nov 3
08:30
Continuing Unemployment Claims
10/22
3.675M
3.645M
Moderate
Th
Nov 3
08:30
Productivity-Prelim.
Q3
2.8%
-0.7%
Moderate
Th
Nov 3
10:00
ISM Services
Oct
53.7
53.0
Moderate
F
Nov 4
08:30
Average Workweek
Oct
34.3
34.3
Moderate
F
Nov 4
08:30
Hourly Earnings
Oct
0.2%
0.2%
Moderate
F
Nov 4
08:30
Nonfarm Payrolls
Oct
88K
103K
HIGH
F
Nov 4
08:30
Unemployment Rate
Oct
9.1%
9.1%
HIGH

>> Federal Reserve Watch   

Forecasting Federal Reserve policy changes in coming months...This week's FOMC meeting is expected to leave the Funds rate at its super low level. The Fed said it wants to keep the rate there through mid-2013. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on:
Consensus
Nov 2
0%–0.25%
Dec 13
0%–0.25%
Jan 25
0%–0.25%

Probability of change from current policy:
After FOMC meeting on:
Consensus
Nov 2
     <1%
Dec 13
     <1%
Jan 25
     <1%

This e-mail is an advertisement for Theron Wall. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of Wallick & Volk Mortgage and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. It is not intended for consumer distribution. The material does not represent the opinion of Wallick & Volk Mortgage. BK 0018295 NMLS #256412

T

Equal Housing Lender  

It’s Simple: Now Is the Time to Buy a Home

It's Simple: Now Is the Time to Buy a Home

Posted: 31 Oct 2011 04:00 AM PDT



"The millionaire says to a thousand people, 'I read this book and it started me on the road to wealth.'  Guess how many go out and get the book? Very few. Isn't that incredible? Why wouldn't everyone get the book? A mystery of life."  – Jim Rohn

 

Mr. Rohn explains that if we want to make the right financial decisions in our lives, we should depend on the same sources the wealthy read. This past month four different iconic financial resources said the same thing:

IT'S TIME TO BUY A HOME!

Here are all four resources.

Forbes Magazine: The Next Mortgage Crisis

Wall Street Journal: It's Time to Buy That House

MarketWatch.com: Now Might Be the Best Time Ever to Buy a Home

JP Morgan Market Insights: Housing: A Time To Buy

Enjoy reading them!!

 

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 or http://everythingprescott.com

 

 

 

***IMPORTANT LENDING UPDATES!*** PLEASE READ***

There are many changes that have taken place in the Mortgage World recently that you need to be aware of.

 

What are the changes and how will it impact our market and sales opportunities?

 

Conventional loans lending limits, which are FANNIE MAE & FREDDIE MAC, loans have been reduced IN SOME AREAS.

 

This is important as the vast majority of all Conventional loans are underwritten under the FANNE MAE & FREDDIE MAC guidelines.

 

The GREAT news is that there has been NO REDUCTION to the lending limits in our area.  The maximum LOAN AMOUNT remains the same at $417,000 in Yavapai County.

 

What does this mean to Home buyers? With Conventional Financing they can PRUCHASE A PRIMARY RESIDENCE with a SALES PRICE up to $438,900 with only 5% down and borrow up to $417,000 .   WOW!   

 

FHA lending limits were changed on 10/1 and our new maximum loan amount for a SFR was reduced to $271,050 down from $390,000.

 

I believe the impact to our market will be negligible as very few buyers have purchased homes using FHA financing with a loan amount of $390,000. 

 

Under the new FHA lending limits you can still purchase a $280k home with 3.5% down using FHA financing.   FANTASTIC!

 

Many of you have heard that USDA loans were suspended.  At W & V we can now close USDA loans with a conditional commitment from USDA, which means we will service the loans until the funding for the new fiscal year is approved.

There has been a change to the Guarantee Fee on USDA Loans.  In the past the upfront guarantee fee was 3.5% which is typically financed.   The upfront fee has been reduced to 2% and a new monthly fee has been added of .3%.  This structured much like the MIP insurance for FHA Loans.

 

The reduction to the VA funding Fee, which also is typically financed HAS NOT BEEN REDUCED as we had hoped.  This proposal is part of the Presidents Job Bill that has not passed.  Therefore what will happen with the VA funding Fee remains to be seen.

 

It was just announced 10/24 that the Home Affordable Refinance Program also known as HARP has been enhanced.

 

To be eligible the current loan on the property must be owned or guaranteed by FANNIE MAE or FREDDIE MAC and have been sold to them on or prior to 5/31/09.  The loan may be serviced by another lender and still be guaranteed or sold or to FANNIE or FREDDIE.  Homeowner’s do not have to go to their existing lender to take advantage of this program.  WE CAN HELP THEM!

 

The goal is make the program more accessible to more borrowers who can benefit from refinancing their home who are underwater while reducing the risk to FANNIE or FREDDIE and to bring some STABILITY TO THE HOUSING MARKET!

 

The details of the program will be released 11/15.

 

The proposed changes are;

 

Pricing improvement for borrower who refinance into a shorter-term mortgage by lowering the fees and rate that are currently in place when a Homeowner owes more than 80% of the value of their home.

 

The removal  of the current restriction of the maximum loan amount of 125% Loan to appraised value for fixed rate mortgages.

 

An important element of these changes is to encourage Homeowner’s by eliminating higher rates if they agree to shortening the term of their mortgage. Borrower that utilize the HARP program to refinance into shorter-term mortgages will be eligible for lower rates than are currently available on this program. Borrowers who owe more on their home than they are worth will be able to reduce the balance owed much more quickly if they take advantage of today’s low interest rates and shorten the term of their mortgage.

 

The concept is by reducing the rate and the term of the loan, borrower’s will reduce their loan balance much more quickly hand at the same time keep their house payment the same or if not lower and to be able to take advantage of the historically low interest rates.  For example, If a homeowner refinances with a 30 Yr Fixed it could take a full 10 yrs before their loan balance equals the value of their home. A 20 Yr Fixed could cut it the time needed to 5 ½ yrs.  A 15 Yr Fixed Rate Mortgage would likely give them a slightly higher payments, with the lowest rates available and cut the time frames down to 3 ½ years to have their loan balance equal the value of their home. How quickly a Home Owner will achieves a positive equity positions will depend on what they owe and how much their home is worth.

 

What I love about this proposed program is it gives  Home Owners incentive to stay in their homes rather than walking away, which will be GREAT FOR OUR MARKET AND THE STABILITY OF VALUES!

 

I will share the details once they are announced.

 

Your Local Lending Resource offering "Speed with Expertise"!

 

Laurie Moore

Wallick & Volk

3615 Crossings Dr. Ste A

Prescott, Az 86305

Licensed Sr. Mortgage Consultant

NMLS #256449

Certified Reverse Mortgage Specialist

Office 928 778-7167

Cell      928 308-1723

Fax      928 445-5308

 

 

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 or http://everythingprescott.com

 


  ­­  

Saturday, October 29, 2011

Wednesday, October 26, 2011

Top Headlines in Real Estate

Real Estate

 

 

 

HUD Offers REO Homes for $100 Down in Select States - dsnews.com

 

HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers. In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned...

 

204 shares  •  Read full story  •  Share

 

 

 

 

Multiple Signs Point to Real Estate Rebound - rismedia.com

 

The past few weeks have showcased numerous signals that the real estate market is on the rise. Recently, we have reported statistics pointing to an...

 

119 shares  •  Read full story  •  Share

 

 

 

 

Don't sell yourself short on real estate commission - inman.com

 

Offer premium services as an alternative to discounting. You have a client who will be buying a house from you and will also list his house with you once he closes on the new property. Your client is from another part of the...

 

77 shares  •  Read full story  •  Share

 

 

 

 

America's Best and Worst Housing Markets, 2011 - realestate.yahoo.com

 

Yahoo! Real Estate - America's Best and Worst Housing Markets, 2011. Find Real Estate including homes for sale, new houses, rentals, foreclosure properties as well as mortgage calculators and rates on Yahoo! Real Estate.

 

80 shares  •  Read full story  •  Share

 

 

 

 

Administration Announces Refinance Program for Underwater Borrowers - dsnews.com

 

It's official. The Federal Housing Finance Agency (FHFA) unveiled a new, revamped government mortgage refinancing program Monday. The initiative involves a series of rule changes to the Home Affordable Refinance Program (HARP)...

 

80 shares  •  Read full story  •  Share

 

Monday, October 24, 2011

Housing Affordability: Price to Income

Today, we are again honored to have Ken H. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research as our guest blogger. To view other research from FIU, visit http://realestate.fiu.edu/.

Dr. Johnson will also be speaking at NAR's Conference and Expo in Anaheim. For more information click here. - The KCM Crew

The Research

The resale of existing homes fell 3 percent in September according to the National Association of Realtors.[i]  A new wave of foreclosures is scheduled to hit the U.S. housing markets.[ii]   Homeownership levels experienced their largest decline since the Great Depression.[iii]  Is there any good news about housing?  Are there any signs of life in the U.S. property markets?

In fact, there are significant signs that favor a recovery in many markets around the country.  Beracha et al. (2011)[iv] reports that housing affordability is at record levels in most of the country.  

The study examines housing affordability from a number of different vantage points.  The first investigation by the researchers is into the relationship between property prices and average income on a state-by-state basis and the country as a whole.  In general, lower ratios (Price/Income) indicate better property affordability.  For example, the average affordability score for Florida over the last 30 years is 4.51.  In other words, a typical home in Florida has sold for 4.51 times the average annual per capita income in the state over the last 30 years.  Today, the property price-to-per capita income ratio in Florida is 3.66, which is a 30-year low.  Thus, housing today is more affordable in Florida based on income than at any time in the last 30 years.

This is not just happening in Florida.  In fact, 26 states and the country as a whole stand at record levels of property affordability based on this ratio.  The 30-year average property price-to-per capita income in the U.S. is 4.45; however, the present measure stands at only 3.94, meaning that, on average, Americans presently purchase homes for roughly four times their annual income.  Thus, on the whole and based on income, housing is more affordable today than at any time in the last 30 years.

Implications

The ratio of property price-to-per capita income is a traditional measure of housing affordability.  There are issues with the measure.  For example, property may not be becoming more affordable, as Americans might be buying lesser quality homes, which would cause the ratio to drop for reasons other than affordability.  Historically, however, this has not been the case.  Thus, the measure is a proxy for the health of the market place.

As a proxy for market health, these numbers are very encouraging.  Clearly, property prices are falling far faster than income (in fact, income has remained relatively stable over the period), making housing more affordable than in recent memory. 

Will these record levels of affordability based on income be the engine to reignite housing markets around the country? Only time will tell.  Regardless, there do appear to be signs of life in the U.S. housing markets.

Endnotes


[i] CNBC, http://www.cnbc.com//id/44973943

[ii] Reuters, http://in.reuters.com/article/2011/10/13/idINN1E79C25020111013

[iii] CNN Money, http://money.cnn.com/2011/10/07/real_estate/home_ownership/index.htm

[iv] Beracha, E., H. Skiba, M. Hirschey, and K.H. Johnson.  Ongoing Research.  (Fall 2011).

 

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 or http://everythingprescott.com

 

 

Inside Lending Newsletter From Theron Wall

Inside Lending from Theron Wall

visit my website     email me now

Theron Wall

Theron Wall
Sr. Mortgage Consultant
1575 Plaza West Drive, Suite C
Prescott, AZ 86303
Office: 928.445.8730
Fax: 928.445.1065
Cell: 928.533.7473

Wallick & Volk Mortgage

For the week of October 24, 2011 – Vol. 9, Issue 43

 

>> Market Update 

QUOTE OF THE WEEK..."It would be so nice if something made sense for a change."--"Alice in Wonderland," Lewis Carroll

INFO THAT HITS US WHERE WE LIVE
...What didn't make sense last week was the way the media reported the latest housing data. Housing Starts were UP a strong 15% in September, hitting a 658,000 annual rate. But the media chose to emphasize that the gain was mostly from multi-family starts which shows a big trend toward renting. Actually, multi-family units also include condominiums, which do make sense for first time buyers who don't have to deal with selling. The media also skimmed over the data that single-family starts were UP almost 2% for the month and starts overall are UP over 10% versus a year ago.  

Then, Existing Home Sales came in 3% lower for September. The media reports by and large neglected to mention that this slight monthly drop followed a big increase achieved in August. In addition, Existing Home Sales are UP 11.3% year-over-year in September, the third straight month this figure has risen by double digits! Inventory is also down 13% in the last year and sales seem to be stabilizing around a 4.6 to 5.0 million annual rate. Not bad at all.

BUSINESS TIP OF THE WEEK
...Success takes commitment--and time. So it's super important to be both passionate and patient developing your business until you get it just right.

>> Review of Last Week

AN UP AND DOWN WEEK...Things were volatile last week on Wall Street with the proceedings even concluding in up-and-down fashion, the Dow and the S&P 500 up for the period, but the tech-heavy Nasdaq a bit down. As usual, the volatility was all Europe's fault, as a steady stream of news alternately stirred hopes and then fears that their debt problems would be solved. There will be an EU summit this weekend and another midweek, which could clear things up. Let's hope.

Over here, Q3 corporate earnings season got off to a nice start, with around 70% of the companies reporting beating estimates. One glaring exception was Apple, who missed as people waited for the new iPhone, and this dragged down the Nasdaq. PPI wholesale inflation was up sharply for the month, but the Core CPI consumer inflation the Fed follows came in lower than expected. Manufacturing continues to show no signs of recession, with the Philadelphia Fed manufacturing index and Industrial Production both UP nicely and factory capacity at its highest level since August 2008! 

For the week, the Dow ended UP 1.4%, at 11809 and the S&P 500 was UP 1.1%, to 1238; but the Nasdaq slipped 1.1%, to 2637.


While most equities did well, bond prices didn't fare too badly either. The FNMA 3.5% bond we watch closed Friday at $100.31, up .08 for the week. National average mortgage rates held steady, remaining at last week's super low levels, according to Freddie Mac's weekly survey of conforming mortgage rates.

DID YOU KNOW?
...Homes listed on a Friday are 18.8% more likely to be toured and 12% more likely to sell within 90 days than homes listed on other days. This is from a study of 1.2 million listings over 21 months in 16 markets nationwide.

>> This Week’s Forecast

NEW HOME SALES, PENDING HOME SALES, GDP AND THE CONSUMER MINDSET... Wednesday, New Home Sales for September, are expected to be up slightly to around a 300,000 annual rate. The next day gives us Pending Home Sales for August. This measure of signed contracts on Existing Homes can indicate actual sales a couple of months out and it's predicted to be down slightly from the prior month.

On the overall economy, we'll have the GDP Advanced reading for Q3, which ended September 30. The forecast is for an improvement, but with GDP still well below 3%, there isn't yet the strong growth needed for recovery. What consumers think of all this will be reflected in Consumer Confidence and the University of Michigan Consumer Sentiment index, which are expected to hold steady.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Oct 24 – Oct 28

 Date

Time (ET)

Release

For

Consensus

Prior

Impact

Tu
Oct 25

10:00

Consumer Confidence

Oct

46.0

45.4

Moderate

W
Oct 26

08:30

Durable Goods Orders

Sep

-1.0%

-0.1%

Moderate

W
Oct 26

10:00

New Home Sales

Sep

300K

295K

Moderate

W
Oct 26

10:30

Crude Inventories

10/22

NA

-4.729M

Moderate

Th
Oct 27

08:30

Initial Unemployment Claims

10/22

403K

403K

Moderate

Th
Oct 27

08:30

Continuing Unemployment Claims

10/15

3.700M

3.719M

Moderate

Th
Oct 27

08:30

GDP-Advanced

Q3

2.2%

1.3%

Moderate

Th
Oct 27

08:30

GDP Deflator-Adv.

Q3

2.5%

2.5%

Moderate

Th
Oct 27

10:00

Pending Home Sales

Aug

-1.0%

-1.2%

Moderate

F
Oct 28

08:30

Personal Income

Sep

0.3%

-0.1%

Moderate

F
Oct 28

08:30

Personal Spending

Sep

0.6%

0.2%

HIGH

F
Oct 28

08:30

Core PCE Prices

Sep

0.1%

0.1%

HIGH

F
Oct 28

08:30

Employment Cost Index

Q3

0.6%

0.7%

HIGH

F
Oct 28

09:55

U. of Michigan Consumer Sentiment-Final

Oct

57.5

57.5

Moderate

 

>> Federal Reserve Watch   

Forecasting Federal Reserve policy changes in coming months...Economists are still forecasting the Funds rate to remain at its super low level for some time. The Fed said it wants to keep the rate down through the summer of 2013. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on:

Consensus

Nov 2

0%–0.25%

Dec 13

0%–0.25%

Jan 25

0%–0.25%


Probability of change from current policy:

After FOMC meeting on:

Consensus

Nov 2

     <1%

Dec 13

     <1%

Jan 25

     <1%

 

This e-mail is an advertisement for Theron Wall. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of Wallick & Volk Mortgage and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. It is not intended for consumer distribution. The material does not represent the opinion of Wallick & Volk Mortgage. BK 0018295 NMLS #256412



Equal Housing Lender  

 

Brad Bergamini, real estate agent on Zillow

Share Prescott Real Estate News

Bookmark and Share

Brad Bergamini's answers on Trulia Voices

PRESCOTT, Arizona area homes for sale and listings from Brad Bergamini