Archive for March, 2010
A Rate-Locking Strategy For Today’s Fed Meeting
March 16th, 2010 categories: FOMC, Market Trends, Mortgage Rates, Statistics
The Federal Open Market Committee adjourns from a scheduled 1-day meeting today, its second of the year.
The FOMC has held the Fed Funds Rate in a target range of 0.000-0.250 percent since December 16, 2008, and the voting members of the Fed are expected to vote “no change” again today.
However, no change in the Fed Funds Rate doesn’t necessarily mean no change in mortgage rates. This is because the Fed Funds Rate is a different interest rate from the rates Knoxville home buyers get from a loan officer.
- Fed Funds Rate : Short-term rate at which banks borrow from each other
- Mortgage Rate : Long-term rate of interest a homeowner pays on a mortgage
Mortgage rates are more responsive to what the Fed says as compared to what the Fed does.
After each FOMC meeting, Fed Chairman Ben Bernanke & Co issue a formal press release to the markets. At roughly 400 words, the statement is a brief commentary on the strengths, weaknesses, and threats for the U.S. economy.
Wall Street watches the statement with great interest and this is why mortgage rates are often volatile on the days of an FOMC adjournment. One mention of a word like “inflation” and traders rush to dump their mortgage bond positions.
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How To Refinance Knoxville Home Mortgage When Your Home Is Underwater
March 12th, 2010 categories: General, HARP, Knoxville Short Sales, Market Trends, Mortgage Rates, Sellers
Are You Upside Down On Your Knoxville Mortgage and Need Some Help??
The Federal Housing Finance Agency has extended the government’s Home Affordable Refinance Program by 12 months.
HARP’s new end date is June 30, 2011.
Originally known as Making Home Affordable, HARP aims to help Knoxville Tennessee homeowners refinance their mortgage who may otherwise be ineligible because of falling home values.
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Foreclosures Per Capita | February 2010
March 11th, 2010 categories: Buyers, Foreclosures, Knoxville Short Sales, Market Trends, Real Estate Investing, Statistics
According to foreclosure-tracking firm RealtyTrac, foreclosure filings topped 300,000 for the 12th straight month last month as 1 in every 418 U.S. homes received a foreclosure filing.
It’s a small improvement from January and a just 6 percent increase over February 2009.
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Knoxville Home Buyers Only 7 Weeks Remain To Find A Home, Claim Up To $8,000 In Tax Credits
March 11th, 2010 categories: Buyers, General, Homebuyer Tax Credit, Market Trends, Mortgage Rates
Knoxville Home Buyers Now Is The Time To Buy!!
There many reasons to buy a home now like I pointed out in a post last week. This tax credit is just one of them.
In November, Congress extended and expanded the First-Time Home Buyer Tax Credit program to include a subset of “move-up” buyers — homeowners that have owned and lived in their home for 5 of the last 8 years.
The credit ranges up to $8,000 per buyer. There’s now just 7 weeks left to take advantage.
To be eligible, home buyers must be under contract for a new home no later than April 30, 2010, and must be closed no later than June 30, 2010.
In addition to meeting the deadline dates, there’s a basic set of requirements to be tax credit-eligible:
- You can’t purchase the home from a parent, spouse, or child
- You can’t purchase the home from an entity in which the seller is a majority owner
- You can’t acquire the home by gift or inheritance
- Each buyer in the purchase must meet eligibility requirements
There’s other criteria, too.
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Don’t Rush To Refinance That ARM — It May Be Adjusting To 3 Percent Or Lower
March 11th, 2010 categories: Adjustable Rate Mortgages, Buyers, Mortgage Rates
If your mortgage is set to adjust this year, the smart move may be to let it. Today’s conforming mortgages are adjusting lower than ever before — as low as 3 percent. It may not be what you expected when you signed for your ARM several years ago.
The reason why ARMs are adjusting lower is because of how they’re made.
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Park in Honor Of Admiral James David Glasgow Farragut
March 8th, 2010 categories: General
On May 2,2010 there is going to be a new park in honor of Admiral James David Glasgow Farragut. The park area is next to the Town of Farragut. The park area and landscaping is already done and just waiting for the big day. There is going to to be a 7 ft statue of Admiral Farragut. The 7 ft sculpture of Admiral Farragut is being done by local sculptor Linda Rankin.
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Geek Gifts : The 16-Piece iPhone Coaster Set
March 8th, 2010 categories: Home Decor
You could call it the Ultimate Geek Gift for an iPhone-toting friend — or even for yourself. It’s a set of 16 coasters made to look like iPhone application icons.
Made by Brazilian firm Meninos, the coasters are constructed from sturdy, medium-density fiber plywood and are coated in vinyl. They’re are roughly 3 1/2 inches square, washable, and feature non-skid, rubber bottoms.
Many of the most popular iPhone icons are included:
- Maps and Compass
- Camera and Photo Albums
- YouTube and iPod
The iPhone coasters sell for $59.99 plus shipping. Arrange them like your phone, or pin them on the wall. Either way, they’ll be a functional conversation piece for your home, or the home of a friend.
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Pending Home Sales Drag In January, But Should Rebound For Spring
March 5th, 2010 categories: Pending Home Sales
Fewer homes went under contract in January as the housing market continues to limp through the winter months.
According to the National Association of Realtors®, the Pending Home Sales Index fell to its lowest level in 3 quarters this January. By contrast, in October 2009, the index had touched a 3-year high.
The Pending Home Sales Index measures the number of homes that have gone under contract to sell, but have yet to close nationwide. It’s compiled using data from more than 100 regional listing services and 60-plus brokerages — the sample set encompasses 20 percent of all home resales in a given month.
Economists have come to rely on the Pending Home Sales Index because of its high correlation to actual home sales. 80% of all home marked “pending” close within 60 days. Many of the rest close within 120.
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Tying Friday’s Jobs Report To Rising Mortgage Rates
March 4th, 2010 categories: Jobs, Mortgage Rates, Statistics
Conforming and FHA mortgage rates in Tennessee have improved over the last 10 days, but that could all change this Friday with the release of February’s Non-Farm Payrolls report.
Non-Farm Payrolls is the official name of the government’s monthly jobs report and, given the fragile state of the U.S. economy, Wall Street will be watching it closely.
Mortgage rates could spike come Friday morning.
Jobs are an important part of the nation’s recovery. Among other concerns, unemployed Americans don’t spend as much money on goods and services, and are more likely to default on a mortgage. This retards economic growth and increases the potential for foreclosures.
When jobs numbers worsen, therefore, it follows that economic projections worsen, too.
Poor employment figures draw money away from the stock markets and into less-risky bond markets, including mortgage-backed bonds. Mortgage rates improve as a result. Conversely, when jobs numbers improve, stock markets gain and bond markets worsen.
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Existing Home Sales Drop Again In January But Stay On The Trendline
March 2nd, 2010 categories: Existing Home Sales
But The Knoxville Real Estate Market Improves Sales Are Up…..
The winter months have not been kind to home sales.
After plunging 17 percent in December, Existing Home Sales fell by an additional 7 percent in January, according to the National Association of Realtors®. An “existing home” is a home resold by a previous owner (i.e. not new construction).
In looking at the annualized, adjusted Existing Home Sales data, we find:
- Sales volume is at its lowest levels since June 2009
- Sales volume fell below its 12-month rolling average
- Home supplies are at a 5-month high
These are similar findings to the New Home Sales data issued by the government last week. That report put new home sales at a 40-year low and showed new homes supplies higher by an entire month.
But don’t think housing rebound has halted! Home sales are cyclical and there are outside forces on today’s market.
For one, the market is still feeling the after-effects of the original First-Time Home Buyer Tax Credit. Sales spiked in the months leading up to the original November 2009 expiration date. A pull-back is natural and expected.
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