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Happy New Year! – Wishing you a safe celebration…

Be safe on this New Year’s Eve whether you are celebrating out on the town, with family and friends, or at home with loved ones toasting the New Year!

“We will open the book.  Its pages are blank.  We are going to put words on them ourselves.  The book is called Opportunity and its first chapter is New Year’s Day.”  Edith Lovejoy Pierce

December 31, 2009 Posted by | Inspiration, quotes | , , , , , | Leave a Comment

5 Home Remodeling Trends for the New Year

Remodeling and decorating trends in 2010 are likely to reflect the fact that many home owners are settling in for the long haul. 

Here are some ideas for updating homes and gardens from decorators and leading real estate practitioners:

  •  Environmentally sensitive furniture. Natural fibers, sustainable woods, and recycled products are key to attracting environmentally concerned buyers.
  • Classic neutral colors. Deep gray browns and gray blues, muted beige, and chalky white will be particularly popular shades, Pittsburgh Paints predicts.
  • Backyard gardens. First Lady Michelle Obama led the way in 2009 when she installed one at the White House.
  • Backyard living. Wood-deck additions offer an 80.6 percent payback, according to the annual Cost vs. Value Report from Remodeling magazine and REALTOR® magazine. Simple fire pits and outdoor fireplaces also will be popular, trend-watchers say.
  • Made in America. As more people feel compelled to support local employment, U.S. manufactured products and antiques will become more popular, says Patricia Shackelford, author of design blog, Mrs. Blandings.

Source: Orlando Sentinel, Jean Patteson (12/26/2009) and Kansas City Star, Stacy Downs (12/27/2009)

December 30, 2009 Posted by | economy, home remodel, real estate | , , , , , , , , , , , | Leave a Comment

Interest Rates Predicted to Reach 6%

Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

“Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it’s hard to imagine that the rates can go much lower than they are,” Crews Cutts said. “Anything we get at or below 5 percent is a gift at this point.”

Source: Washington Post, Dina ElBoghdady (12/26/2009)

December 29, 2009 Posted by | economy, real estate | , , , , , , , , , , , , | Leave a Comment

Market Comment for Week of December 28th…

MARKET COMMENT  Mortgage bond prices fell last week pushing mortgage interest rates higher. The bond market took a beating as stocks surged despite mixed data. Existing home sales in November rose a surprising 7.4%. However, revised gross domestic product figures showed the economy only grew 2.2%, which was weaker than the expected 2.8% mark. Personal income and outlays data came in weaker than expected helping a bit. Unfortunately, the thin trading conditions magnified the earlier losses and made it difficult to recover. For the week interest rates rose by about 1 3/8 discount points.

The Treasury auctions will take center stage next week. If foreign demand falters we will likely see mortgage interest rates head higher. The bond market will close early Thursday in advance of the New Year’s Holiday Friday. The shortened trading week may result in some market volatility coupled with thin trading conditions likely.

LOOKING AHEAD

  • 2-year Treasury Note Auction Monday, Dec. 28, 1:00 pm,  $44 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
  • Consumer Confidence Tuesday, Dec. 29, 10:00 am,  An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
  • 5-year Treasury Note Auction Tuesday, Dec. 29, 1:00 pm,  $46 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
  • 7-year Treasury Note Auction Wednesday, Dec. 30, 1:00 pm,  $32 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
  • Weekly Jobless Claims Thursday, Dec. 31, 8:30 am,  An indication of employment. Higher than expected claims may help rates improve.

CONSUMER CONFIDENCE INDEX  The Conference Board releases the Consumer Confidence Index on the last Tuesday of every month. The report details the levels of confidence individual households have in the performance of the economy. The data is derived from a survey of 5,000 households nationwide. The survey polls consumer opinions on current business conditions, their jobs, their incomes, and their future spending plans.

The consumer confidence index is significant in that it provides a precursor into consumers’ willingness to spend in the months ahead. However, many analysts point out that willingness to spend does not always convert to actual expenditures.

Despite economic uncertainty, liquidity issues, and housing market weakness, American consumers continue to spend. However, many analysts question whether consumers can continue to buoy the economy, especially amid rising unemployment and continued tight credit.

This week’s release will be eagerly anticipated. Look for any variation from estimates to cause mortgage interest rate volatility. Signs of eroding consumer confidence could lead to improvements in mortgage interest rates. However, stronger than expected figures could spike rates higher.

With mortgage interest rates relatively low, capitalizing on current levels is recommended to protect against future volatility. Remember, mortgage interest rates tend to trend lower slowly, while increases tend to occur quickly. A cautious approach is necessary to protect from future market volatility.

Courtesy of Todd Kabel, US Bank, Nashville, Tennessee

December 28, 2009 Posted by | Uncategorized | , , , , , , , , , , , , , , | Leave a Comment

Cities Where a 4-Year Degree Pays

Cities where white-collar incomes have jumped the most in the last four years are not necessarily commercial hot spots.

Payscale, a Seattle-based online provider of employee compensation data, identifies urban areas where college graduates saw the most income growth between 2005 and 2009. The cities are scattered throughout the country and prove that even during a recession, it’s not where you live that matters nearly as much as what you do.

“When the crash comes, and you lay off 75 percent, you tend to keep the higher-paid jobs. So your salary base goes up,” says Cynthia Kroll, economist at the Fisher Center of Real Estate and Urban Economics at the University of California Berkeley.

“It’s not that highly skilled people don’t also get laid off, but the mix is going to be weighted toward the more experienced, more skilled workers that you’re going to need when growth comes back,” she says.

Here are the 10 cities where Pay scale says incomes rose the most:

  • El Paso, Texas
  • Bakersfield, Calif.
  • Omaha-Council Bluffs, Neb.
  • Virginia Beach/Norfolk, Va.
  • Des Moines
  • Honolulu
  • Boise City, Idaho
  • Allentown-Bethlehem, Pa.
  • Charlotte
  • Phoenix

Source: Forbes, Francesca Levy (12/15/2009)

December 22, 2009 Posted by | economy | , , , , , , , , , , , , , , , , , , , , , | Leave a Comment

Happy Holidays from Kenneth Bargers!

December 18, 2009 Posted by | Inspiration, quotes | , , , , , , , , | 2 Comments

LOL Friday: The Priest and His Congregation…

A Priest was being honored at his retirement dinner after 35 years in the parish. A leading local politician and member of the congregation was chosen to make the presentation and to give a little speech at the dinner.

However, he was delayed, so the Priest decided to say his own few words while they waited:

‘I got my first impression of the parish from the first confession I heard here. I thought I had been assigned to a terrible place. The very first person who entered my confessional told me he had stolen a television set and, when questioned by the police, was able to lie his way out of it. He had stolen money from his parents, embezzled from his employer, had an affair with his boss’s wife, taken illegal drugs, and gave VD to his sister. I was appalled. But as the days went on I learned that my people were not all like that and I had, indeed, come to a fine parish full of good and loving people.’…

Just as the Priest finished his talk, the politician arrived full of apologies at being late. He immediately began to make the presentation and gave his talk:

‘I’ll never forget the first day our parish Priest arrived,’ said the politician. ‘In fact, I had the honor of being the first person to go to him for confession.’

Moral : Never, Never, Never Be Late

December 18, 2009 Posted by | humor | , , , , , , , , | 1 Comment

Mortgage Volume Rises Slightly

Mortgage applications were up 0.3 percent last week compared to the previous week on both a seasonally adjusted basis and on an unadjusted basis, according to the Mortgage Bankers Association weekly survey.

The increase was in refinances, which rose 0.9 percent. As a share of mortgage activity, refinances hit 74.4 percent, the highest refinance share since April 24.

The purchase index decreased 0.1 percent on an adjusted basis and declined 3.6 percent on an unadjusted basis. It was 15.4 percent lower than it was the same week last year.

Some mortgage rates were higher last week compared to the previous week:

  • 30-year fixed-rate mortgages increased to 4.92 percent from 4.88 percent.
  • 15-year fixed-rate mortgages remained flat at 4.33 percent.
  • 1-year ARMs decreased to 6.52 percent from 6.55 percent.

Source: Mortgage Bankers Association (12/16/2009)

December 17, 2009 Posted by | economy, real estate | , , , , , , , , | 1 Comment

Retail Investors to Enter Market in 2010

Jones Lang LaSalle’s 2010 Retail Outlook projects retail transactions and sales volumes to increase as customer demand starts to gradually recover.

In the new year, investors looking to take advantage of low acquisition prices are likely to find some of the biggest value in Class A trophy shopping malls.

Kris Cooper, managing director in the retail investment sales practice, remarks, “The continued lack of liquidity in the debt markets has contributed to pent-up demand, and we expect opportunistic investors to cautiously re-enter the market in early 2010. We’re just now seeing lenders’ willingness to lend to strong sponsors open up, but those lending offers are at far more conservative levels than we’ve seen in the past.”

Because of pending debt maturities and the need for capital, highly leveraged institutional investors are expected to hold on to properties unless forced to dispose of them. Cooper concludes, “Buyers will probably stick around for the next six to nine months before seeking better opportunities. We are also seeing significant interest from international buyers who feel now is the time to re-enter the U.S. market.”

Source: GlobeSt.com, Katie Hinderer (12/13/09)

December 16, 2009 Posted by | economy, real estate | , , , , , , , , , , , , , , | Leave a Comment

Market Comment for the Week of December 14th…

MARKET COMMENT
Mortgage bond prices were near unchanged last week holding mortgage rates steady. Trade was extremely volatile with swings of 1/2% in discount points common. The Treasury auctions were not as well received by foreign accounts as traders were hoping. The US relies on foreign central banks such as China to fund our deficit spending. If China were to decrease or cease purchasing US bonds and notes, rates would rise.

Interest rates finished the week near unchanged.

The inflation data will be the most important releases this week. Inflation erodes the value of fixed income securities causing prices to fall and rates to rise. The Fed meeting will also take center stage. While no rates changes are expected the wording of the release will be very important.

TRADING CONDITIONS
As we all know, mortgage interest rates change on a daily and intra-day basis. With so much volatility, it is often difficult to make the right decision regarding floating or locking. What is important to remember is the fact that there is a difference between gambling and taking a calculated risk when making mortgage interest rate decisions. Floating into an economic release such as the employment report is usually a gamble, as was evident with the rate spike at the beginning of this month. In addition, floating over a span of more than a few days is also a gamble. Unforeseen events can cause instability in the financial markets that results in mortgage interest rate volatility. On the contrary, floating on a day of positive market movement with no economic data the following day, while such action is still vulnerable to market movements, can be considered a calculated risk. It is possible for interest rates to push lower due to the uncertain future of the economy. Unfortunately the recent focus has been towards rate increases, which generally don’t bode well for lower mortgage interest rates. Taking advantage of rates at the current levels guarantees a historically favorable interest rate and protects against uncertainty surrounding future interest rate developments.

Courtesy of Todd Kabel, US Bank, Nashville TN

December 14, 2009 Posted by | economy, real estate | , , , , , , , , , , , , , , | Leave a Comment

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