My New Blog

If you have ever had the television on late at night it isn’t possible to NOT run across one of those infomercials about how to buy real estate. The stories are indeed amazing. “I bought this $500,000 beach front condo for $10,000 and I didn’t have to bring anything to the closing table,” says the Hawaiian shirt wearing host. But how does that one in a million transaction affect you and your purchase?

One way it negatively affects your pending transaction is the idea of buying a home with nothing out of your pocket. Yes it is possible to structure things certain ways where you can finance all of your closing costs, but if you are going to take advantage of things like that then you need to make sure you are very flexible in what house you decide to purchase. You need to be prepared to walk away from your dream home if the seller won’t work with you regarding concessions and conversely you need to be able to settle on a house that may not be exactly what you want, but where the financing options are favorable.

The bottom line is when you are looking to purchase a house you need to make sure you have a few dollars to put into the transaction. The days of needing to save up 20% are long gone but having closing costs and at least 5% already in the bank will make the home buying process much easier to handle. Always deal with a reputable agent and feel free to contact me for a list of local professionals.

Compliments of:

Tim Barlow

Cornerstone Home Mortgage
www.timloans.com
Tel: (360) 570-0106
Fax: (360) 570-1001
Direct:(360) 250-3400
3604 Henderson Blvd. SE
Olympia WA 98501

"There is nothing wrong with change, if it is in the right direction." Winston Churchill. And certainly, seeing our economy improve is change in the right direction. But what steps will get us there... and how will those steps impact home loan rates. Here’s what you need to know.

Last Tuesday, the government held a "Future of Housing Finance" conference to discuss changes needed in this area. Most participants agreed that government assistance for housing must be reduced but not eliminated. Bill Gross, from PIMCO and one of the panelists, called for a massive refinancing of certain mortgages backed by Fannie/Freddie/FHA, believing such a move would lift home prices 5% to 10% and provide a $50 Billion stimulus to the economy. I will be watching this situation closely for further developments.

Home sales and the job market - two key aspects to our continued recovery - are also areas we need to see change in an improving direction. Last week, the NAHB Housing Market Index came in a bit worse than expectations and showed housing to be at a 17-month low. It can be argued that the tax credits actually hurt the housing market by not adding any sales, just pushing them up. This has now resulted in a void or softer period in the market, potentially wasting billions of dollars. Housing Starts and Building Permits were also reported lower than expected last week. Clearly, demand for housing has slowed over the past few months, due to the expiration of the Home Buyer Tax Credit and persistently high unemployment.

Speaking of unemployment, awful is the only way to describe last week’s Initial Jobless Claims report. According to the report, 500,000 people filed to receive unemployment benefits for the first time, which was well higher than the lofty 475,000 expected and the highest reading since November 2009. In addition, between Continuing Claims and people receiving Emergency Unemployment Compensation or EUC, the combined total of people receiving unemployment benefits now equals 9.25 Million people.

The bottom line is this: The labor market is the foundation of our economy. Job growth and confidence is the best and most sustainable way for our economy to recover. The present anti-business regulatory environment is pushing Initial Claims, a leading indicator on the health of the labor market, in the wrong direction.

But home loan rates, meanwhile, continue to remain at historic low levels. Though keep in mind, inflation is the arch enemy of Bonds and home loan rates, which means it can cause both to worsen. Both the Producer Price Index (which measures inflation at the wholesale level) and the Consumer Price Index were recently reported hotter than expected. If rates do start to rise, they will likely do so quickly.

Compliments of:

If you or anyone you know would like to learn more about taking advantage of historically low home loan rates, please don’t hesitate to call or email.

WHEN YOU’RE BUYING A HOUSE, THE LAST THING YOU WANT IS AN UNSUCCESSFUL CLOSING. Call me today and I will help you make a wise real estate decision.

Conv 4.125%

FHA 4.25%

VA 4.25%

Conv 15 yr 3.75%

USDA 4.875%

Jumbo 5.1255

Investment 4.625%

3-4 investment 4.875%

FHA 203K 4.625%

Conv 5/1 arm 2.875%

FHA-VA 5/1 arm 3.25%

Compliments of:

Brandy LeGault

Loan Originator

Ironwood Mortgage

9333 Martin Way E, Ste 210

Lacey, WA 98516

360.280.1467 direct

360.489.1792 fax

BrandyLeGault@comcast.net

www.ironwoodmtg.com

MLO-119596

Where will prices rebound most by state?

A housing market rebound seems tenuous following the expiration of the home buyer tax credit, and consumer confidence remains weak due to lackluster employment, but David Stiff, chief economist at Fiserv, says the bottom is near. Home prices in the U.S. have declined 29.5 percent over the past four years, according to the Fiserv Case-Shiller Indexes. Stiff says prices should form a trough early next year, when median prices will be down an estimated 32.9 percent from the 2006 peak.

 Compliments of Yahoo Real Estate.

It is interesting to follow the market each week. I like to see how each economic indicator affects the other. I thought I would add some information about the retail market since The Nordstrom Anniversary Sale starts this Friday (which I always love!). I thought it would be appropriate.

Retail sales are down 0.3% for this week. This is an important measure in consumer demand. Weaknesses could lead to lower interest rates for home mortgages.

Retail sales data is the first indication of weakness or strength in consumer spending released each month. The Bureau of the Census of the US Department of Commerce provides information on how much the consumer spends on the purchase of goods. This data provides the consumption part of the gross domestic product. Retail sales data represents merchandise sold for cash or credit by retailers. Durable goods, such as autos, make up 35% of the figure. The balance consists of non-durables such as gasoline, restaurants, and general merchandise.

Thank you Brandy LeGault, with Ironwood Mortgage for sending these updates every week!

City Realty's Anniversary Party!

Each year I take the time to reflect on my real estate business and each year I want to thank the people who keep me going! Your business and referrals has helped my business flourish the past six years.

In appreciation of your friendship, trust and support; I would like to celebrate you! Please join me at my office for a Luau BBQ. There will be food, drinks, door prizes and a special gift for all clients that attend.. .

July 9, 2010

12:00 - 3:00 pm

City Realty Inc.

1800 Cooper Point Rd SW Bldg. 12

Olympia, WA 98502

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For more information please call or email me.

I look forward to seeing you!

I was talking to my two year old yesterday trying to explain to him what the fourth of July is. My little guy takes everything so literally, so I tried to carefully describe why we celebrate the fourth. After a short conversation of fireworks, freedom, and flags, I just concluded that it's America's birthday. Can you say, "Happy Birthday America!" That seemed to do the trick.

Reflecting on this conversation I wanted to write a few words about what the fourth of July means to me. As an American I am so thankful to have the rights that I do. Especially in my work. Being a working mom is hard - but I am very thankful that I can work and that I can choose my work. I am thankful to live in a country that values my work too! Especially during hard economic times, a lot of what I do is helping keep homeowners rights. It is a difficult economy to work in but I would like to think that I am doing my part in making our housing market a better place.

My business is something that I not only enjoy but that helps me provide for my family. As Americans we celebrate our Independence by taking the day off and spending time with our loved ones. What a great way to celebrate summer.

I hope as my son gets older that I can tell him more about his freedoms and rights as he gets closer to entering the workforce. In the mean time, we'll celebrate America's birthday with pop its and hot dogs.

Happy summer to everyone and enjoy the HOT weather this week!