US Mortgage Industry News Update

(Image credit: Getty Images via @daylife)

For those of you that floated your rate last week, as I recommended, you just hit a bomb home run! And if you locked in on Thursday, you hit it clear out of the ballpark!

So what happened on Thursday? On Thursday I was anxiously waiting for the Manufacturing, and Junes New Home Sells reports, when those reports showed weaker than expect numbers for Manufacturing, and the new home sells report showed a larger than expected decline, investors jumped from stocks (I’m sure you heard about the 400 point hit to the Dow on Thursday) and into bonds. When bonds go up, mortgage rates go down. And go down they did on Thursday, posting lower rates than I’ve seen in about six months. Oh so crazy!

Interest rates today are an eighth of a percent lower than a week ago, rebounding on Friday and today from Thursday’s low numbers; if you haven’t locked yet, I recommend you lock in right now.

If you’ve been on the fence about purchasing a home or refinancing, take advantage of these rates and start making offers or lock in your refinance. Even if you missed Thursday’s rates, by locking today you can still save an eighth of a percent over last Monday, and an eight of a percent over the life of a 30 year mortgage will save you thousands of dollars, so when they dip like they did last week and today now is when you want to buy a home or refinance.

This coming week there will be two days you’ll want to have your mortgage professional on speed dial and at the ready, Tuesday and Friday. Looking at Tuesday, there are three reports that can affect mortgage rates: First are June’s Personal Income and Outlays, then the 2nd Quarter Employment Cost Index, and then finally the Conference Board’s Consumer Confidence Index report; and then later in the week Friday’s Employment report will be very important as well.

The bottom line is that this is going to be an interesting week for mortgage rates, and I expect the most movement in the rates on Tuesday and Friday. The market is expecting weak numbers that means if any of the reports are more positive than expected mortgage rates can skyrocket very quickly. It’s been said that you should keep your friends close and your enemies closer, but this week you should keep your enemies close and your mortgage professional closer.

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Renting in a Tough Market

Apartments (Photo credit: Beedle Um Bum)

Real estate companies are not the only ones suffering in our sluggish economy these days. Many Americans, particularly under 30, cannot afford the lump sum cash needed to purchase a home, and the risk is far too great to take out a huge loan from a bank. That's why rental properties are currently on the rise throughout the country, and the rental options available keep on growing.

Just a few years ago, if you wanted to rent an apartment, the important decisions you had to make were where you wanted to live, and how many bedrooms you wanted. Apartment developments are on the rise, and with that comes many more no-traditional options. Take a look at First Troy Corp. Rentals, located just north of Dayton, OH. They offer traditional rental apartments, but also have rental ranch style apartments, rental townhomes, rental single family houses, rental duplexes, rental triplexes and rental fourplexes!

This only shows how important it is now to offer a diverse variety of rental living options to attract the attention of a diverse crowd. It will certainly be interesting to see how rental companies do if the real estate market clears up, and mortgage interest rates become more affordable, but for now, the rental industry is booming where others are busting!

Mortgage Industry Update

Wednesday (Photo credit: teachernz)

WOW! What an exciting week we just had. Last week there were several economic reports that we in the mortgage industry were paying very close attention too, and we were all listening intently as Fed Chairman Bernanke spoke on Wednesday and Thursday afternoon.

I was anxiously awaiting the release the Producer Price Index (PPI), the Consumer Price Index (CPI) and Housing Starts as these reports can have a big effect on mortgage rates. And without getting into the long version with the specifics, the actual numbers were very close to expected and there was little movement in interest rates.

Furthermore, Fed Chair Bernanke reported that after a slow first quarter the economy picked up some speed for the second quarter, even though it’s still not quite up to potential. He predicted the economy would level off for the second half of 2012 and would then pick up speed at the beginning of 2013 and begin performing at its full potential.

All in all, rates today are exactly where they were a week ago. With rates still at historic lows it’s a great time to buy a home!

I’m really excited about this coming week and what it could have in store.

Economically, this week is even busier than last, with six economic reports scheduled to be released, all coming in the second half of the week, and one of them is considered to be of high importance mortgage rates.

I’ll be watching June Existing Home Sales numbers on Wednesday and the Beige Book Report on Wednesday afternoon, and then June New Home sales numbers on Thursday; thought he Beige Book Report can have the biggest impact on interest rates.

If we see weaker than expected numbers, rates could go down a notch, and if we see stronger than expected we could see rates go up. But given that Fed Chair Bernanke’s testimony last week didn’t have any serious warnings or ground breaking news, I expect numbers to be close to expected, and that usually means rates won’t move much.

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Visiting Turkey

English: Ortaköy Mosque, along the Bosphorus, in Istanbul, Turkey. Français : La Mosquée Ortaköy, sur le Bosphore, à Istanbul (Turquie). Türkçe: Büyük Mecidiye Camii (Ortaköy Camii). (Photo credit: Wikipedia)

One of the most traveled areas of the world, Turkey has tremendous natural beauty as well as rich historical backgrounds. Over the course of human history, Turkey has been a highly contested area of land, including locations where Achilles battled the Trojans, where countless crusades battles were fought and where the Ottoman Empire rose to power. Visiting a history location with a tour guide can be a well spent afternoon, and you can learn to appreciate the rich culture and history of the area.

If history isn't really your thing, spending a day at the beach along either the Mediterranean Sea or the Black Sea can be quite the trip. A city that is a must visit includes Istanbul where bars and street markets dot the city.

Despite strong heritage and generations of families rooted to their homes and properties, there is a large amount of great property for sale in Turkey. The Turkey property for sale includes villas, houses and apartments all throughout Turkey, fitting the needs of both long term travelers and long term residents. Regardless, Turkey should be a country on your travel bucket list, and when you visit you certainly won't be disappointed.

Researching the Utah Market

English: Sunset at Delicate Arch (Arches National Park, Utah). Français : Coucher de soleil sur Delicate Arch (Arches National Park, Utah). (Photo credit: Wikipedia)

I'm no native to the state of Utah, so when I think of the state, or any states that border it, I think of desert. I was quite surprised after doing a bit of research that it a very geographically diverse state and is home to some of the best national parks in the United States.

Some of the key features of Utah include a great stretch of the Rocky Mountains, the Great Basin, and the Colorado Plateau of Utah. Yes, Utah has many arid deserts, but they are quite beautiful and have many landmark locations including the Delicate Arch in the Arches National Park. Salt Lake City is the largest city in Utah, and is home to the Great Salt Lake, which is a popular attraction to visitors of the state.

After looking through the Utah MLS, I noticed that there are some great homes on the market in the state, and I would recommend looking at them if Utah is a state you're interested in moving to.

Dominican Republic Real Estate

(Photo credit: Wikipedia)

What was once a sleepy Caribbean country is now one of the top tourist destinations in the world. The Dominican Republic economy has exploded with construction projects, and the influx of tourism by air and sea has given the country a huge financial boost. Just today, the popular Marriott chain announced that they will be opening a world-class luxury hotel in Santo Domingo, which should be completed in 2014. Among other developments include improved ports along ocean cities to accommodate larger cruise ships and the passengers they carry.

With the increase in development and economic activity, new areas of business development are opening across the country. Existing business are expected to grow in size, new industries will begin to emerge, and the nation should have a much more diverse and stable economic base in the coming years.

With all this good news for the Dominican Republic, it can be expected that real estate property will become more valuable. If you're looking for a change of pace, take a look at some great Dominican Republic real estate and see if the Caribbean life is a place for you!

Real Estate Market

Real Estate (Photo credit: allan.hane)It's hard to believe that anyone would have anything good to say about the United States real estate market, but that's exactly what's covering the news. Newspapers and media outlets from CNN and the New York times to the Unionville Times are projecting positive growth in home sales and home prices. Those are two numbers that any economist would see as negativity correlated. Why the sudden boom? Well there are many reasons, but here are some of the biggest:
The number of foreclosures is finally on the decline, a hangover that is starting to go away since 2008. That means that there are fewer homes on the market, meaning prices will be increased and more home owners will be more willing to sell their homes for agreeable prices. This is mostly good news all around as home sellers and real estate agents get the prices they want, and there are enough houses on the market as it is, so home buyers don't see much of any loss.
One hot real estate market at the moment would be the Albany Oregon real estate market. Located out in central Oregon, this once sleepy town is now the center of new businesses and industries. Located nearby is Corvallis, which has some great homes for sale in Corvallis Oregon. Don't miss out on some of these niche markets if you're an investor!