The Federal Reserve on Tuesday cut its federal funds target rate by more than three-quarters of a percentage point to a range of between 0 and .25 percent. The decision signals that Fed Chief Ben Bernanke is more concerned with the rapidly deteriorating economy--which has been mired in a recession since December of last year--than the prospect of stoking inflation. “Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined,” the rate-setting Federal Open Market Committee said in its statement. “Financial markets remain quite strained and credit conditions tight.”
Here’s how the Fed’s actions affect you:
1. Fixed mortgage rates: Today’s rate cut will have little if any impact on 30-year fixed mortgage rates, which are determined by factors that operate largely outside of the Federal Open Market Committee’s reach, says Keith Gumbinger of HSH Associates. “Any change in the rate has little to do with long-term mortgage rates,” he says. But in its statement the Fed said it could expand a recently announced program to buy up debt and mortgage-backed securities from Fannie Mae and Freddie Mac that has already driven mortgage rates down to a very attractive 5.28 percent, according to HSH Associates. It also reiterated that it was looking at the possibility of buying long-term Treasury bonds. Both of these announcements could work to bring rates even lower.
2. Prime rate: The real impact of today's cut will be felt by consumers with products that are tied to the prime rate, a benchmark rate that typically moves in lock step with the federal funds rate. "The only place where you would see a concrete impact at the consumer level would be things that are directly tied to prime," says Mike Larson, a real estate analyst at Weiss Research. Many home-equity lines of credit and certain credit cards with variable interest rates are tied to prime rate. As such, borrowers with these products could see their interest rates decline.
3. Home-equity savings: Home-equity lines of credit averaged 5.5 percent in October but dropped to 5.26 percent in November following the Fed's half-point cut. Gumbinger says he expects average rates on home-equity lines of credit to experience similar declines this time around--but not everyone will be able to take advantage of them. That's because many of the interest rates on these products are already at their minimums and are contractually prohibited to go any lower. So check the terms of your home-equity line of credit to see if you are eligible to cash in on the decline.
4. Target vs. effective: When credit markets are functioning normally, Fed rate cuts reduce banks’ cost of funding, which allows them to widen profit margins and pass along savings to consumers in the form of lower interest rates. But today’s credit conditions have changed all that. Although the Fed’s target rate stood at 1 percent before today’s cut, such funds were actually being traded in the market at much less than that--just 0.18 percent as of yesterday before the Fed’s action. Although the Fed can usually control the effective rate by buying and selling government securities, the credit crisis has eroded its ability to do so. “Any juice that you would get from a funds rate cut in a normally functioning market, you’re not really going to get that here,” Larson says. “It’s not going to lower the banking industry’s cost of funds, because the banking industry’s cost of funds is already below the target rate anyway.” That means that interest rates tied to the federal funds rate won’t decline as much as they otherwise would have.
5. Now what? Nariman Behravesh, chief economist at IHS Global Insight, expects rates to go all the way to zero in a matter of weeks. “The Fed has already cut the federal funds rate to 1 percent and is likely to take it all the way to zero by the end of January,” Behravesh said in a recent report, issued before today’s announcement. “Once the overnight rate is at zero, the Fed may have to engage in ‘quantitative easing’ [direct purchases of long-term Treasuries].” Even if it doesn’t bring rates all the way to zero, the Fed signaled Tuesday that it’s not about to push rates higher anytime soon. “The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time,” the Fed said in the statement.
6. Expect more unexpectedness. With only less than a quarter of a percentage point left to cut, look for the Fed to get even more creative in its efforts to revive the financial markets. New programs to support different corners of the credit market could certainly be introduced in 2009. “The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity,” the Fed said in the statement.
taken from C.A.R. article
Friday, December 19, 2008
Thursday, December 18, 2008
It's a great time to buy!!
Interest Rates have dropped which make it a great time to buy!
30 year fixed rates today for a $250,000 loan:
5.250 at 0 points
4.813 at 1 point
This information is from our local Loan Officer or Mortgage Advisor.
I encourage all inquiries to be directed to me.
It's a Great time to buy!
30 year fixed rates today for a $250,000 loan:
5.250 at 0 points
4.813 at 1 point
This information is from our local Loan Officer or Mortgage Advisor.
I encourage all inquiries to be directed to me.
It's a Great time to buy!
Monday, November 24, 2008
C.A.R. Mortgage Update
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) has created consumer information sheets detailing the various mortgage modification programs available through the larger lenders and government entities, and also has created an easy-to-use reference chart about available programs.
· The consumer sheets contain information such as eligibility requirements; who to contact to apply; costs associated with the program; and other vital data. In general, the loan modification programs on the chart and consumer information sheets are intended for primary residences only.
· Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available: loan number; income information and documentation; most recent mortgage statement; bank statements; and a letter demonstrating financial hardship.
To download the mortgage modification sheets, please visit:
http://www.car.org/legal/mortgage-workout-programs/?view=Standard
reprinted from C.A.R. article
· The consumer sheets contain information such as eligibility requirements; who to contact to apply; costs associated with the program; and other vital data. In general, the loan modification programs on the chart and consumer information sheets are intended for primary residences only.
· Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available: loan number; income information and documentation; most recent mortgage statement; bank statements; and a letter demonstrating financial hardship.
To download the mortgage modification sheets, please visit:
http://www.car.org/legal/mortgage-workout-programs/?view=Standard
reprinted from C.A.R. article
Tuesday, October 21, 2008
The Kaufman House updated
After the Harrises divorced, the home was supposedly sold on May 13, 2008 for $15 million at auction by Christie's as a part of a high-profile sale of contemporary art.[2]; The house had a presale estimate of $15 million to $25 million.[1] The sale later fell through, as the bidder breached terms of the purchase agreement *.
The restoration was critically lauded. Today, most critics place the Kaufman House amongst the 'five most important houses of the 20th century', with the likes of Fallingwater, Robie House, Gropius House and the Gamble House, all located in the United States.
reprinted from Wikipedia
The restoration was critically lauded. Today, most critics place the Kaufman House amongst the 'five most important houses of the 20th century', with the likes of Fallingwater, Robie House, Gropius House and the Gamble House, all located in the United States.
reprinted from Wikipedia
Wednesday, May 14, 2008
From an article in the newyorktimes.com, 5/14/08
Considering that a painting went for more than $50 million, the Kaufmann House, in Palm Springs, Calif., a 1946 Modernist landmark in glass, steel and stone designed by the architect Richard Neutra, was a veritable bargain. It was being sold by Brent Harris, an investment manager, and Beth Edwards Harris, an architectural historian, who are divorcing.
The home, which was originally commissioned as a desert retreat by Edgar J. Kaufmann, the Pittsburgh department store magnate for whom Frank Lloyd Wright built Fallingwater in Pennsylvania a decade earlier, met its low $15 million estimate (or with commission, $16.8 million).
After the sale, Marc Porter, Christie’s president in America, said the buyer, whom he declined to name, exercised an option to purchase an orchard adjacent to the property for an additional $2.1 million that includes three cacti that were a present from Frank Lloyd Wright to Mr. Kaufmann on his first visit to the home.
It isn’t the first time a Modernist house has been sold at auction. Over the years both Christie’s and Sotheby’s have offered such architecturally important dwellings as Mies van der Rohe’s Farnsworth House and a 1950 town house on East 52nd Street that Philip Johnson designed as a guest house for Blanchette Rockefeller, the wife of John D. Rockefeller III.
The home, which was originally commissioned as a desert retreat by Edgar J. Kaufmann, the Pittsburgh department store magnate for whom Frank Lloyd Wright built Fallingwater in Pennsylvania a decade earlier, met its low $15 million estimate (or with commission, $16.8 million).
After the sale, Marc Porter, Christie’s president in America, said the buyer, whom he declined to name, exercised an option to purchase an orchard adjacent to the property for an additional $2.1 million that includes three cacti that were a present from Frank Lloyd Wright to Mr. Kaufmann on his first visit to the home.
It isn’t the first time a Modernist house has been sold at auction. Over the years both Christie’s and Sotheby’s have offered such architecturally important dwellings as Mies van der Rohe’s Farnsworth House and a 1950 town house on East 52nd Street that Philip Johnson designed as a guest house for Blanchette Rockefeller, the wife of John D. Rockefeller III.
Wednesday, May 7, 2008
C.A.R. GREEN TIP OF THE WEEK: KILL A WATT AND SAVE A BUCK
Your office probably has machines or plugs that "suck" electricity or use electricity on a constant basis with no benefit to the company, i.e., printers, chargers for portable devices, etc. One way to identify these amperage-sucking "vampires" is to connect these devices to the Kill-a-Watt TM Electricity Usage Monitor (retails for approximately $24).The Kill-a-Watt TM unit's large LCD display counts consumption by the kilowatt-hour, the same as your local utility. You can calculate your electrical expenses by the day, week, month, or year. You'll know if it's time for a new refrigerator in the office break room or if that old air conditioner is cost-efficient. Available from Amazon.com or other online vendors.C.A.R.'s "Green Tips" are a new feature of "C.A.R. Newsline" and are part of the Association's effort to raise member awareness about environmentally sound practices and offer REALTORS® ideas for greening their business practices and better serving their green-minded consumers. For more green real-estate-related tips and discussion, visit C.A.R.'s green blog: http://www.car.org/blogs/index.php
Monday, April 14, 2008
Five Tips for a Green Home
Five Tips for a Green Home
Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we’ve become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being “green” with these five tips:
Change Your Light Bulbs By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.
Buy ENERGY STAR® Appliances ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.
Seal Up Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won’t shrink or crack, creating less waste.
Use Less Water Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.
Adjust the Thermostat When adjusting your home’s thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.
Going green doesn’t have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a “greener” place.
Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we’ve become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being “green” with these five tips:
Change Your Light Bulbs By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.
Buy ENERGY STAR® Appliances ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.
Seal Up Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won’t shrink or crack, creating less waste.
Use Less Water Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.
Adjust the Thermostat When adjusting your home’s thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.
Going green doesn’t have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a “greener” place.
Thursday, March 20, 2008
FED CUTS KEY INTEREST RATE IN AN EFFORT TO FURTHER BOOST ECONOMY
The Federal Reserve on Tuesday lowered the federal funds rate 75 basis points to 2.25 percent citing continued concerns about the country's softening labor market, stalled consumer spending, and turmoil on the financial markets over the mortgage credit crisis."Today's policy action, combined with those taken earlier, including measures to foster market liquidity, should help to promote moderate growth over time and to mitigate the risks to economic activity," the Fed said. "However, downside risks to growth remain. The Committee will act in a timely manner as needed to promote sustainable economic growth and price stability." according to C.A.R. [California Association of Realtors]
Friday, January 4, 2008
How Green Remodeling Pays Off
Green remodeling can pay off — not only in lowered utility bills, but also in buyer appeal when the property is sold.Here are some green things to consider.
Site selection. Prefer infill development instead of a new subdivision in a far-flung new suburb that gobbles wetlands and displaces animals.
Energy-efficient products. Choose Energy Star appliances, double-paned windows, low-flush toilets, and compact fluorescent light bulbs.
Spray foam insulation. Seal the home with insulation that doesn’t let the heat or cooled air leak out.
Sustainable wood flooring. Select flooring certified by Forest Stewardship Council, which protects forests by managing the amount of wood harvested annually.
Locally made products. Buy products made less than 250 miles away to reduce transportation costs. Granite, for instance, is generally imported from afar.
Nontoxic paint. Use paint that is low in volatile organic compounds (VOCs) — chemicals that evaporate into the atmosphere. Look for Green Seal certified brands.
Source: St. Petersburg Times, Susan Thurston (12/28/07)
Site selection. Prefer infill development instead of a new subdivision in a far-flung new suburb that gobbles wetlands and displaces animals.
Energy-efficient products. Choose Energy Star appliances, double-paned windows, low-flush toilets, and compact fluorescent light bulbs.
Spray foam insulation. Seal the home with insulation that doesn’t let the heat or cooled air leak out.
Sustainable wood flooring. Select flooring certified by Forest Stewardship Council, which protects forests by managing the amount of wood harvested annually.
Locally made products. Buy products made less than 250 miles away to reduce transportation costs. Granite, for instance, is generally imported from afar.
Nontoxic paint. Use paint that is low in volatile organic compounds (VOCs) — chemicals that evaporate into the atmosphere. Look for Green Seal certified brands.
Source: St. Petersburg Times, Susan Thurston (12/28/07)
How to Increase a Home's Value
5 Simple Ways to Increase a Home's Value
Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers. Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.
1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.
2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.
3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.
4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.
5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.
Source: The Associated Press, James and Morris Carey (12/29/07)
Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers. Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.
1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.
2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.
3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.
4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.
5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.
Source: The Associated Press, James and Morris Carey (12/29/07)
Wednesday, January 2, 2008
Real Estate Market Report for 2008
According to NAR [National Association of Realtors] Research, there is significant pent-up housing demand that will begin to be unleashed into the marketplace in 2008. Many markets will see rising home sales and strengthening home prices. We believe that the worst of the credit problems are behind us. Great news for consumers!
"Season" is upon us. The New Year starts with our 'snowbirds' arriving and staying for the next few months. More cars, more people in the restaurants and stores. We love having you!
It's wonderful living in the best place to be, in the winter, in the United States....no HUMIDITY!!
Enjoy the weather and think about buying a place in Sunrise Villas. Please feel free to contact me to buy, sell or invest in Real Estate, here or anywhere in the Valley.
"Season" is upon us. The New Year starts with our 'snowbirds' arriving and staying for the next few months. More cars, more people in the restaurants and stores. We love having you!
It's wonderful living in the best place to be, in the winter, in the United States....no HUMIDITY!!
Enjoy the weather and think about buying a place in Sunrise Villas. Please feel free to contact me to buy, sell or invest in Real Estate, here or anywhere in the Valley.
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