$8,000 First-time Home Buyer Tax Credit at a Glance
About the First-Time Home Buyer Tax Credit
Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts
Thursday, November 12, 2009
New Tax Credit FAQ!
Thursday, November 5, 2009
New Tax Credit Info!
The Senate voted last night (11/4) to extend and expand the tax credit for homebuyers that was scheduled to expire Nov. 30. The House is expected to schedule a quick vote on the bill as early as today 11/5 as part of a package that also extends unemployment benefits for people out of work more than a year. The White House indicated that the President will sign the legislation.
How the homebuyer tax credit would work:
· Tax credit: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers who purchase between December 1, 2009 and May 1, 2010. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.
· Deadline for qualifying: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30.
· Military deadline: The deadline is extended by a year for members of the military who have served outside the
· Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
· How to apply: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.
· New anti-fraud limitations imposed.
· Cost: $10.8 billion.
Source: Bloomberg Press and Associated Press and confirmed information with the content of the Senate bill
Monday, February 9, 2009
Senate Stimulus Bill’s Home Buyer Tax Credit
February 9, 2009, 1:05 pm
FAQ: Senate Stimulus Bill’s Home Buyer Tax Credit
Nick Timiraos reports:
Readers are posing lots of different questions about the proposed $15,000 home buyer tax credit that’s in the Senate version of the economic stimulus bill. It’s important to remember that the proposed credit is far from a done deal. The bill still has a couple of big hurdles, including tomorrow’s scheduled vote in the Senate. (Read the Senate version.)
If it passes, it will have to be reconciled with the House version of the stimulus bill, which modifies an existing $7,500 home buyer credit, repealing a provision that requires buyers to pay it back.
There are some big differences between those two versions. The Senate version is nonrefundable, meaning you can only receive the credit if you owe federal income taxes. The existing credit is refundable, meaning you get a check from the government even if you don’t owe income tax. And the current credit applies to first-time home buyers, defined as anyone who hasn’t bought a house in three years. The Senate version is open to existing homeowners.
Here are some more Frequently Asked Questions. Please note that the answers may change as the Senate bill changes:If I bought a home and used the $7,500 home buyer tax credit, can I retroactively receive $15,000 credit if it becomes law? No.
Are there any income restrictions on the tax credit? The Senate version currently has no income limits. The current $7,500 tax credit phases out on buyers with incomes exceeding $75,000 for individuals and $150,000 for married couples.
When will the new tax credit go into effect? The Senate version would take effect when the bill is signed by the president into law, and it would last for one year.
Can I take the tax credit this year? Yes. The Senate proposal would allow buyers — even those who purchase in 2009 — to claim the credit on their 2008 taxes.
The proposed tax credit is nonrefundable. What does that mean? You can only receive the credit to the extent that you owe federal income taxes. The Senate proposal would give home buyers two years to claim the credit, so buyers could claim a $7,500 credit in 2009 and a $7,500 credit in 2010. A family of four that makes less than $82,000, for example, could have a tax liability of less than $7,500 and they would not receive the full value of the credit.
Are there any repayment requirements on the tax credit? No. The Senate proposal does not require the credit to be paid back. The House proposal eliminates a 15-year repayment provision on the existing $7,500 tax credit.
If I am eligible for the current $7,500 credit, am I also eligible for the $15,000 credit? While the $15,000 credit has fewer restrictions than the existing credit, there is one big difference: because the credit is nonrefundable, if you have a low federal income tax liability, you could end up receiving more money with the current credit than the larger, proposed credit.
Are there any increased down payment requirements on the proposed tax credit? No. A separate measure has been introduced in the House that would expand the tax credit to $15,000 but would require a 5% down payment on mortgages. The Federal Housing Administration currently requires a minimum 3.5% down payment.
Can I use the tax credit to buy a second home? No.
How long do I have to live in my home after I purchase it with the tax credit? The Senate version requires buyers to pay back the credit if they sell the house less than two years after they buy it.
FAQ: Senate Stimulus Bill’s Home Buyer Tax Credit
Nick Timiraos reports:
Readers are posing lots of different questions about the proposed $15,000 home buyer tax credit that’s in the Senate version of the economic stimulus bill. It’s important to remember that the proposed credit is far from a done deal. The bill still has a couple of big hurdles, including tomorrow’s scheduled vote in the Senate. (Read the Senate version.)
If it passes, it will have to be reconciled with the House version of the stimulus bill, which modifies an existing $7,500 home buyer credit, repealing a provision that requires buyers to pay it back.
There are some big differences between those two versions. The Senate version is nonrefundable, meaning you can only receive the credit if you owe federal income taxes. The existing credit is refundable, meaning you get a check from the government even if you don’t owe income tax. And the current credit applies to first-time home buyers, defined as anyone who hasn’t bought a house in three years. The Senate version is open to existing homeowners.
Here are some more Frequently Asked Questions. Please note that the answers may change as the Senate bill changes:If I bought a home and used the $7,500 home buyer tax credit, can I retroactively receive $15,000 credit if it becomes law? No.
Are there any income restrictions on the tax credit? The Senate version currently has no income limits. The current $7,500 tax credit phases out on buyers with incomes exceeding $75,000 for individuals and $150,000 for married couples.
When will the new tax credit go into effect? The Senate version would take effect when the bill is signed by the president into law, and it would last for one year.
Can I take the tax credit this year? Yes. The Senate proposal would allow buyers — even those who purchase in 2009 — to claim the credit on their 2008 taxes.
The proposed tax credit is nonrefundable. What does that mean? You can only receive the credit to the extent that you owe federal income taxes. The Senate proposal would give home buyers two years to claim the credit, so buyers could claim a $7,500 credit in 2009 and a $7,500 credit in 2010. A family of four that makes less than $82,000, for example, could have a tax liability of less than $7,500 and they would not receive the full value of the credit.
Are there any repayment requirements on the tax credit? No. The Senate proposal does not require the credit to be paid back. The House proposal eliminates a 15-year repayment provision on the existing $7,500 tax credit.
If I am eligible for the current $7,500 credit, am I also eligible for the $15,000 credit? While the $15,000 credit has fewer restrictions than the existing credit, there is one big difference: because the credit is nonrefundable, if you have a low federal income tax liability, you could end up receiving more money with the current credit than the larger, proposed credit.
Are there any increased down payment requirements on the proposed tax credit? No. A separate measure has been introduced in the House that would expand the tax credit to $15,000 but would require a 5% down payment on mortgages. The Federal Housing Administration currently requires a minimum 3.5% down payment.
Can I use the tax credit to buy a second home? No.
How long do I have to live in my home after I purchase it with the tax credit? The Senate version requires buyers to pay back the credit if they sell the house less than two years after they buy it.
Friday, January 30, 2009
Affordability At Record Highs for Home Buyers!
Rates Rise A Bit After Fed Meeting, Affordability At Record Highs for Home Buyers!
Mortgage rates held steady during the first half of the week, until Wednesday's Fed meeting. As expected, the target for the Fed Funds rate remained unchanged, close to a level of zero. Heading into the announcement, the biggest question for investors was whether the Fed would begin to purchase Treasury securities in addition to mortgage-backed securities (MBS) to help support the financial system. Hoping for a decisive plan, many investors were disappointed that the Fed merely indicated that it was ready to purchase Treasuries if "evolving circumstances" justify the action. Yields on Treasury securities rose significantly after the announcement, and in order to compete for investors, mortgage rates moved higher as well.
Also applying upward pressure on mortgage rates, a large fiscal stimulus plan moved closer to passage during the week. An $819 billion fiscal stimulus package passed a vote in the House, and the Senate is expected to consider its $900 billion version next week. The combined government spending for this new package, along with the TARP program, the MBS purchase program, and a proposed bank cleanup plan, will total trillions of dollars. An enormous amount of new debt will be issued to pay for all the government programs, and interest rates offered on all bonds may need to increase to attract investors. One positive note is that foreign investors continued to show strong demand for US bonds during the week.
In the housing sector, December Existing Home Sales rose 7% from November. Inventories of unsold homes dropped to a 9.3 month supply from 11.2 months in November. According to the National Association of Realtors, lower prices persuaded many buyers to step in. Existing Home Sales cover more than 85% of total home sales, so this report was very welcome news for the housing market. December New Home Sales didn't perform as well, dropping 15% from November. This window of low interest rates and current supply level of homes, could make today one of the best opportunities to buy real estate that we may see for some time.
Thursday, January 22, 2009
Has the Market Hit Bottom Yet?
Has the Market Hit Bottom Yet?
LAS VEGAS – The sluggish housing market will likely hit bottom in 2009 before picking up slightly by year's end, economists said Tuesday in a Housing Economic Outlook press conference at the International Builder Show. Chief Economists David Crowe of the National Association of Home Builders, David Berson of the PMI Group, and Frank Nothaft of Freddie Mac offered up their forecasts for the housing market for 2009. (Read the latest commentary from Lawrence Yun, NAR’s chief economist.)Berson had a more sobering forecast, saying that it would likely take 2 to 3 years for housing prices to stabilize and the market recovery to begin. The housing market currently lacks a much-needed spark: more than 1.5 million empty homes are for sale in the United States (new homes make up about a third of that inventory), housing starts are at record lows (200,000 for single family homes this year; off the 1-1.3 million pace for starts), consumer confidence is dwindling amid rising unemployment and loan delinquency rates, and skyrocketing foreclosures are driving housing prices down leading to excess inventory, the economists say. "It's making it very difficult for builders to sell homes when they have fixed costs to recover," Crowe said. To counter, builders have reduced prices, added amenities to homes at no extra cost to buyers, and more than 80 percent are using incentives to try to move the high inventory. "We do expect 2009 to be the bottom," Crowe said. Housing starts will likely fall another 20 percent and new home sales will drop 14 percent, he predicted. Signs for a TurnaroundBut there's some good news within all the dim reports, the economists say.
Mortgage rates are at historic lows. Long-term mortgage rates last Thursday were reported at the lowest in the 50 years they’ve been recorded - 4.96 percent.
Households are growing. The Echo boomers – children of the baby boomers -- are getting ready to buy homes, ready to make up a big demographic of buyers, which will lead to a higher number of households.
Housing prices have fallen and affordability is at its best levels since the 1970s, Berson said. Despite a tightening on credit in recent months, Nothaft said mortgages are ample for those who have a down payment, decent credit score, qualified underwriting, and a conforming loan balance. Credit standards are moving back to what they were 10-20 years ago – it just means once you graduate from college you might not be able to buy a house right away. --
By Melissa Dittmann Tracey for REALTOR Magazine
Nick Arntz Hutchinson and Arntz Re/Max Results
15451 Founders Lane Apple Valley MN 55124
C: 612.991.0079 D: 952.223.1023 1-800-288-0863
arntz@arntz.com www.hutchinsonandarntz.com
LAS VEGAS – The sluggish housing market will likely hit bottom in 2009 before picking up slightly by year's end, economists said Tuesday in a Housing Economic Outlook press conference at the International Builder Show. Chief Economists David Crowe of the National Association of Home Builders, David Berson of the PMI Group, and Frank Nothaft of Freddie Mac offered up their forecasts for the housing market for 2009. (Read the latest commentary from Lawrence Yun, NAR’s chief economist.)Berson had a more sobering forecast, saying that it would likely take 2 to 3 years for housing prices to stabilize and the market recovery to begin. The housing market currently lacks a much-needed spark: more than 1.5 million empty homes are for sale in the United States (new homes make up about a third of that inventory), housing starts are at record lows (200,000 for single family homes this year; off the 1-1.3 million pace for starts), consumer confidence is dwindling amid rising unemployment and loan delinquency rates, and skyrocketing foreclosures are driving housing prices down leading to excess inventory, the economists say. "It's making it very difficult for builders to sell homes when they have fixed costs to recover," Crowe said. To counter, builders have reduced prices, added amenities to homes at no extra cost to buyers, and more than 80 percent are using incentives to try to move the high inventory. "We do expect 2009 to be the bottom," Crowe said. Housing starts will likely fall another 20 percent and new home sales will drop 14 percent, he predicted. Signs for a TurnaroundBut there's some good news within all the dim reports, the economists say.
Mortgage rates are at historic lows. Long-term mortgage rates last Thursday were reported at the lowest in the 50 years they’ve been recorded - 4.96 percent.
Households are growing. The Echo boomers – children of the baby boomers -- are getting ready to buy homes, ready to make up a big demographic of buyers, which will lead to a higher number of households.
Housing prices have fallen and affordability is at its best levels since the 1970s, Berson said. Despite a tightening on credit in recent months, Nothaft said mortgages are ample for those who have a down payment, decent credit score, qualified underwriting, and a conforming loan balance. Credit standards are moving back to what they were 10-20 years ago – it just means once you graduate from college you might not be able to buy a house right away. --
By Melissa Dittmann Tracey for REALTOR Magazine
Nick Arntz Hutchinson and Arntz Re/Max Results
15451 Founders Lane Apple Valley MN 55124
C: 612.991.0079 D: 952.223.1023 1-800-288-0863
arntz@arntz.com www.hutchinsonandarntz.com
Tuesday, January 20, 2009
Tax Credit Changes Could Unleash Home Sales
Tax Credit Changes Could Unleash Home Sales
If all home buyers become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales, enough to meaningfully draw down excess housing inventory, the NATIONAL ASSOCIATION OF REALTORS® says. An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase.Under the current $7,500 first-time home buyer tax credit, which must be repaid over 15 years, 264,000 households meet the purchase requirements. Using the same assumptions, with plans to hold their home for a median 10 years, it would mean only 66,000 additional sales.Lawrence Yun, NAR chief economist, said NAR is advocating a tax credit for any home purchase meeting qualifying underwriting standards. “A home buyer incentive is critical to help reduce housing inventory and stabilize home prices,” he said. “The bigger the incentive, the faster housing can help pull the economy out of recession. The cost to the Treasury would be far less than the additional costs of a prolonged recession with insufficient housing stimulus.”Analysis of other options shows that if only first-time buyers are eligible and the repayment feature is dropped, it could mean an additional 202,000 home sales. If extended to all home buyers but the repayment feature is retained, the gain would be 181,000 home sales.NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said a flexible approach to the tax credit would have added benefits. “A home buyer tax credit also should be allowed to be used as a part of downpayment. This would instantly add an equity cushion for homeowners – a vested financial interest provides the foundation for sustainable homeownership, which helps improve economic stability,” he said.NAR estimates only 25 percent of newly eligible households would become homeowners, and does not capture the effect of increased trade-up buying activity. As such, these projections may understate the full impact of a home buyer tax credit.Source: NAR
If all home buyers become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales, enough to meaningfully draw down excess housing inventory, the NATIONAL ASSOCIATION OF REALTORS® says. An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase.Under the current $7,500 first-time home buyer tax credit, which must be repaid over 15 years, 264,000 households meet the purchase requirements. Using the same assumptions, with plans to hold their home for a median 10 years, it would mean only 66,000 additional sales.Lawrence Yun, NAR chief economist, said NAR is advocating a tax credit for any home purchase meeting qualifying underwriting standards. “A home buyer incentive is critical to help reduce housing inventory and stabilize home prices,” he said. “The bigger the incentive, the faster housing can help pull the economy out of recession. The cost to the Treasury would be far less than the additional costs of a prolonged recession with insufficient housing stimulus.”Analysis of other options shows that if only first-time buyers are eligible and the repayment feature is dropped, it could mean an additional 202,000 home sales. If extended to all home buyers but the repayment feature is retained, the gain would be 181,000 home sales.NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said a flexible approach to the tax credit would have added benefits. “A home buyer tax credit also should be allowed to be used as a part of downpayment. This would instantly add an equity cushion for homeowners – a vested financial interest provides the foundation for sustainable homeownership, which helps improve economic stability,” he said.NAR estimates only 25 percent of newly eligible households would become homeowners, and does not capture the effect of increased trade-up buying activity. As such, these projections may understate the full impact of a home buyer tax credit.Source: NAR
Thursday, December 18, 2008
Mortgage Applications Back on the Rise
Mortgage Applications Back on the Rise
Mortgage applications climbed last week in response to falling interest rates, according to the Mortgage Bankers Association weekly mortgage applications survey.
The index increased 2.9 percent to 841.4 from 817.7 the previous week on an adjusted basis. On an unadjusted basis, it also increased 2.9 percent and was up 37.3 percent compared with the same week a year ago.Most of the activity was in refinances, which increased to 76.9 percent of the total. "It doesn't solve the problem for people who owe more than their home is worth, but for the significant majority who are able to refinance, it is quite a boon," said Bob Walters, chief economist at Quicken Loans in Livonia, Mich.Interest rates were down last week compared with the previous week, and are expected to decline still further in response to the Federal Reserve cutting its benchmark rate to a record low this week.Last week’s already low rates continued to decline:
30-year fixed-rate mortgages decreased to 5.18 percent from 5.44 percent;
15-year fixed-rate mortgages decreased to 4.93 percent from 5.08 percent
1-year ARMs decreased to 6.63 percent from 6.76 percent.Source: Mortgage Bankers Association and Reuters News, Lynn Adler (12/17/2008
Mortgage applications climbed last week in response to falling interest rates, according to the Mortgage Bankers Association weekly mortgage applications survey.
The index increased 2.9 percent to 841.4 from 817.7 the previous week on an adjusted basis. On an unadjusted basis, it also increased 2.9 percent and was up 37.3 percent compared with the same week a year ago.Most of the activity was in refinances, which increased to 76.9 percent of the total. "It doesn't solve the problem for people who owe more than their home is worth, but for the significant majority who are able to refinance, it is quite a boon," said Bob Walters, chief economist at Quicken Loans in Livonia, Mich.Interest rates were down last week compared with the previous week, and are expected to decline still further in response to the Federal Reserve cutting its benchmark rate to a record low this week.Last week’s already low rates continued to decline:
30-year fixed-rate mortgages decreased to 5.18 percent from 5.44 percent;
15-year fixed-rate mortgages decreased to 4.93 percent from 5.08 percent
1-year ARMs decreased to 6.63 percent from 6.76 percent.Source: Mortgage Bankers Association and Reuters News, Lynn Adler (12/17/2008
Tuesday, December 16, 2008
Fed Expected to Cut Key Interest Rate Tuesday
Fed Expected to Cut Key Interest Rate Tuesday
The Federal Reserve begins a two-day meeting today where it is expected to cut it's key interest rate, perhaps to an all-time low. The Fed will likely announce Tuesday that it is cutting its key rate in half to just 0.50 percent. However, a few economists predict the Fed will go even further and cut the rate to one-quarter of a percentage point.
If that happens, it will be the lowest rate on record going back to 1954, when records tracking the monthly rates were first kept.However deeply the Fed decides to cut rates, the prime rate for many consumer and small-business loans would drop by a corresponding amount. The prime lending rate, currently at 4 percent, is used to determine rates on home equity loans, certain credit cards, and certain consumer loans, the Associated Press reports. "It is not so much going to give the economy a big push forward. It's more a case of trying to help the economy from being pushed further backward by all these negative events," said Stuart Hoffman, chief economist at PNC Financial Services Group.
Source: The Associated Press (12/14/12008)
Weekly Market Activity Report
Weekly Market Activity Report
As fall turns into winter—and winter turns dark and cold—activity in the Twin Cities housing market has entered its annual hibernation. On a weekly basis, new listings, total inventory and sales are all declining as consumers batten down the hatches and prepare for the holidays. Relative to this time last year, however, activity is stronger. For the week ending December 6, there were 597 signed purchase agreements (pending sales), which is up 27.6 percent over the same week last year. Roughly half of these sales—54.7 percent—were lender-mediated foreclosures or short sales.
On the supply side, new listings were relatively flat, up only 0.7 percent for the same time period comparison. The total supply of homes for sale currently sits at 27,035, down 8.2 percent compared to this time last year. Expect the decline in overall supply to continue into January. At the same time, expect the lender-mediated market share of that supply to increase.
As fall turns into winter—and winter turns dark and cold—activity in the Twin Cities housing market has entered its annual hibernation. On a weekly basis, new listings, total inventory and sales are all declining as consumers batten down the hatches and prepare for the holidays. Relative to this time last year, however, activity is stronger. For the week ending December 6, there were 597 signed purchase agreements (pending sales), which is up 27.6 percent over the same week last year. Roughly half of these sales—54.7 percent—were lender-mediated foreclosures or short sales.
On the supply side, new listings were relatively flat, up only 0.7 percent for the same time period comparison. The total supply of homes for sale currently sits at 27,035, down 8.2 percent compared to this time last year. Expect the decline in overall supply to continue into January. At the same time, expect the lender-mediated market share of that supply to increase.
Monday, December 8, 2008
Low Mortgage Rates Sparks Refinances and Home Sales
Low Mortgage Rates Sparks Refinances and Home Sales
Mortgage rates moved even lower this week, helped by economic weakness and recent actions by the Fed and the Treasury. Conforming fixed-rate mortgage rates dropped to levels last seen in 2003. According to Freddie Mac, the weekly decline in rates was the largest since 1981, over its Wednesday to Wednesday measurement period. Mortgage applications for both refinances and purchases where up measurably. Now may be the right time for you to examine purchasing or refinancing. Contact us for a consultation.
The Fed and the Treasury are looking at additional programs to boost the economy. On Wednesday, the Treasury confirmed that it is considering a plan which would offer below-market mortgage rates for select loans used to purchase homes. The lower rates would not be available for refinancing loans. At this point, it's not certain if, when, or in what form this latest idea will be acted upon. As we have seen recently, most notably with the $700 billion TARP rescue plan, government programs often change significantly before their implementation.
On the economic front, the November Employment data was even worse than expected. The economy suffered the largest monthly loss of jobs since 1974. In addition, the figures from October and September were revised sharply lower. The Unemployment Rate rose from 6.5% to 6.7%, the highest level since October 1993. The manufacturing and construction sectors continued to shed jobs, and the service sector was hit hard as well. The weak report makes additional fiscal stimulus programs more likely.
Mortgage rates moved even lower this week, helped by economic weakness and recent actions by the Fed and the Treasury. Conforming fixed-rate mortgage rates dropped to levels last seen in 2003. According to Freddie Mac, the weekly decline in rates was the largest since 1981, over its Wednesday to Wednesday measurement period. Mortgage applications for both refinances and purchases where up measurably. Now may be the right time for you to examine purchasing or refinancing. Contact us for a consultation.
The Fed and the Treasury are looking at additional programs to boost the economy. On Wednesday, the Treasury confirmed that it is considering a plan which would offer below-market mortgage rates for select loans used to purchase homes. The lower rates would not be available for refinancing loans. At this point, it's not certain if, when, or in what form this latest idea will be acted upon. As we have seen recently, most notably with the $700 billion TARP rescue plan, government programs often change significantly before their implementation.
On the economic front, the November Employment data was even worse than expected. The economy suffered the largest monthly loss of jobs since 1974. In addition, the figures from October and September were revised sharply lower. The Unemployment Rate rose from 6.5% to 6.7%, the highest level since October 1993. The manufacturing and construction sectors continued to shed jobs, and the service sector was hit hard as well. The weak report makes additional fiscal stimulus programs more likely.
Monday, December 1, 2008
Treasury Announce Plan to Jumpstart Lending
Daily Real Estate News November 26, 2008
Share Fed, Treasury Announce Plan to Jumpstart Lending
The Federal Reserve and Treasury Department on Tuesday unveiled hundreds of billions more in money they are pumping into the struggling U.S. economy, trying to jumpstart lending by the nation's banks for mortgages and consumer debt.
Together, the programs from the Federal Reserve and the New York Fed aim to dump $800 billion in additional funds into the struggling U.S. economy, more than Congress approved in October for a bailout of the nation's banks and Wall Street firms.
The NATIONAL ASSOCIATION OF REALTORS® said the actions will free up money on main street and lower long-term interest rates, which in turn will boost home sales.
"This is great news for home buyers and sellers and we applaud the Fed for taking this historic step,” said NAR President Charles McMillan. “Housing recovery is the key to economic recovery in this country and it always has been.” (Read the full NAR statement.)
Under the plan, the Federal Reserve announced it will purchase up to $500 billion in mortgage-backed securities that have been backed by Fannie Mae, Freddie Mac, and closely held Ginnie Mae, the three government-sponsored mortgage finance firms set up to promote homeownership. It will also buy another $100 billion in direct debt issued by those firms.
"This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally," said the statement from the Fed.
By putting money in the hands of holders of consumer and mortgage loan securities, the government hopes more money will flow to consumers than has occurred so far in previous bailout plans.
The moves came as the Commerce Department announced that gross domestic product, the broad measure of the nation's economy, fell at an annual rate of 0.5% in the third quarter, the biggest drop in economic activity in seven years. Economists believe that the economy is likely to continue to contract in the current quarter and into early next year.
Source: Chris Isidore, CNNMoney.com (11/25/08), NAR
Share Fed, Treasury Announce Plan to Jumpstart Lending
The Federal Reserve and Treasury Department on Tuesday unveiled hundreds of billions more in money they are pumping into the struggling U.S. economy, trying to jumpstart lending by the nation's banks for mortgages and consumer debt.
Together, the programs from the Federal Reserve and the New York Fed aim to dump $800 billion in additional funds into the struggling U.S. economy, more than Congress approved in October for a bailout of the nation's banks and Wall Street firms.
The NATIONAL ASSOCIATION OF REALTORS® said the actions will free up money on main street and lower long-term interest rates, which in turn will boost home sales.
"This is great news for home buyers and sellers and we applaud the Fed for taking this historic step,” said NAR President Charles McMillan. “Housing recovery is the key to economic recovery in this country and it always has been.” (Read the full NAR statement.)
Under the plan, the Federal Reserve announced it will purchase up to $500 billion in mortgage-backed securities that have been backed by Fannie Mae, Freddie Mac, and closely held Ginnie Mae, the three government-sponsored mortgage finance firms set up to promote homeownership. It will also buy another $100 billion in direct debt issued by those firms.
"This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally," said the statement from the Fed.
By putting money in the hands of holders of consumer and mortgage loan securities, the government hopes more money will flow to consumers than has occurred so far in previous bailout plans.
The moves came as the Commerce Department announced that gross domestic product, the broad measure of the nation's economy, fell at an annual rate of 0.5% in the third quarter, the biggest drop in economic activity in seven years. Economists believe that the economy is likely to continue to contract in the current quarter and into early next year.
Source: Chris Isidore, CNNMoney.com (11/25/08), NAR
Tuesday, November 25, 2008
Rates Drop!
Finally something positive to talk about!!!
Fed's announced that they will purchase $600 billion worth of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. This should help increase the availability of credit, while lowering fixed rate mortgage rates. In addition, the Fed will allocate $200 billion to create liquidity in the auto, student, and small business markets.
This is AWESOME news. This will help build consumer confidence and is the perfect time to call your buyers that have been sitting on the fence and take them out looking. This may not last long so don't waste time.
Fed's announced that they will purchase $600 billion worth of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. This should help increase the availability of credit, while lowering fixed rate mortgage rates. In addition, the Fed will allocate $200 billion to create liquidity in the auto, student, and small business markets.
This is AWESOME news. This will help build consumer confidence and is the perfect time to call your buyers that have been sitting on the fence and take them out looking. This may not last long so don't waste time.
Monday, November 17, 2008
For Sale in Richfield Minnesota
6907 Logan Ave S - $499,900
Walk up a landscaped concrete walk to a gorgeous country style wrapped porch with cedar post and recessed lighting, spacious enough for entertaining! Cedar shake façade with white trim, hip roof, and maintenance free siding on sides and back!
Enter the full glass entry door to hardwood floors, closet and a designer entry light!
Spacious formal dining room with hardwood floors, oak trim, knockdown ceilings, custom lighting with recessed lights in a knock down ceiling. Picture window views of porch and front yard along with Marvin Integrity double hung windows. Easy open access to the kitchen living area!
Main floor living area is open to kitchen area and boasts, neutral carpeting with gas fireplace surrounded with black granite. Ample space above gas fireplace for flat screen Television and stereo components. Room is wired for surround sound. Recessed lighting in knockdown ceilings, double hung windows with views of backyard.
Large open kitchen with gorgeous Maple cabinets, roll out drawers, extra top storage cabinets, pantry cabinet, built-in wine rack and custom hardware. Custom laminate countertops with accent granite countertop on breakfast bar area. Newer black appliances and black sink with brushed nickel hardware. Beautiful hardwood floors and oak trim. Recessed and designer pendant lighting in knockdown ceilings. Connected kitchen deskette with custom laminate counter tops, maple cabinets and phone and cable jacks. Access to front porch, lower level and sliders to deck and backyard. Kitchen is very gracious with countertop and cabinet space!
Main floor full bath with laminate flooring, white wainscoting and designer paint. Pedestal sink, tub with ceramic tile surround, knockdown ceiling, designer lighting and mirror, 2-panel entry door and hall linen closet with custom hardware.
Main floor bedroom with 2-panel entry door, neutral carpeting, lighted ceiling fan, custom blinds, newer windows, separate smaller closet and 2 huge closets with sliding doors and storage above.
2nd Main floor bedroom with neutral carpeting, closet custom blinds and is currently being used as a main floor office.
Large upper level hallway with frieze carpeting open oak railing with white spindles, recessed lighting in a knock down ceilings.
Upper level laundry and utility room with washer and spill catch/drain, dryer, and separate furnace zoned for upper level. White top cabinets and ceramic tile flooring.
Upper level bath with ceramic tile flooring, double Maple vanity with doors, drawers, and custom hardware, double sinks with chrome fixtures. Separate maple linen cabinet, huge mirror with designer lighting, recess lights in knockdown ceiling, tub with fiberglass surround and 2-panel entry door.
Upper level bedroom 1 with neutral frieze carpeting, Marvin Integrity windows, knockdown ceilings with designer lighting, oak trim, large walk-in closet with shelves and rods, and a 2 panel entry door.
Upper level bedroom 2 with neutral frieze carpeting, Marvin Integrity windows, knockdown ceilings with designer lighting, oak trim, large step-in closet with shelves and rods, and a 2 panel entry door.
Mater bedroom with neutral frieze carpeting, Marvin Integrity windows, custom blinds, transom window over bed, vaulted tray knockdown ceilings with recessed lighting and lighted ceiling fan, oak trim, large walk-in closet with shelves and rods, 2 separate hall closets with bi-fold doors, and a 2 panel entry door. Master bathroom with ceramic tile flooring, separate toilet room with privacy pocket door, whirlpool tub with ceramic tile surround and glass block accents, lighted separate walk-in shower with ceramic tile and glass block accents, oversized maple vanity cabinet with drawers and doors, single sink top with chrome hardware and designer lighting above.
Lower level family room with ceramic tile run to neutral Berber carpeting, pine base trim, recessed lighting, extra deep space for exercise equipment or desk.
Lower level non conforming bedroom/storage area with neutral carpeting, recessed lighting in knock down ceilings, supplemental baseboard heating with separate thermostat, double closets with bi-fold doors, huge separate closet / storage area with door. This room just needs an egress window to become a legal bedroom.
Lower level ½ bath with custom designer tile floor and base, white stool and pedestal sink, knock down ceilings and custom vanity lighting.
Lower level utility / storage area with newer high efficiency furnace zoned for basement and main levels, oversized hot water heater, plenty of storage area for boxes etc.
Oversized 2-car garage with matching cedar shake front and maintenance free sides and back, hip roof line. Separate front entry door on garage, extra parking pad to side of garage - great for boat or trailer, backyard shed, rock and mulch landscaping with plants.
A fantastic re-model with a great location, close to parks, blocks from Southdale shopping, easy access to main roads and highways!
Parade of Homes Remodelers Showcase model in '06
Minnegasco $74 / mo
Excel $117 /mo
K-2 Sheridan Hills
3-5 Richfield Intermediate
6-8 Richfield Middle
9-12 Richfield High
HUTCHINSON AND ARNTZ Re/Max Results
NICK ARNTZ - 952-223-1023 or 612-991-0079 - Cell
Walk up a landscaped concrete walk to a gorgeous country style wrapped porch with cedar post and recessed lighting, spacious enough for entertaining! Cedar shake façade with white trim, hip roof, and maintenance free siding on sides and back!
Enter the full glass entry door to hardwood floors, closet and a designer entry light!
Spacious formal dining room with hardwood floors, oak trim, knockdown ceilings, custom lighting with recessed lights in a knock down ceiling. Picture window views of porch and front yard along with Marvin Integrity double hung windows. Easy open access to the kitchen living area!
Main floor living area is open to kitchen area and boasts, neutral carpeting with gas fireplace surrounded with black granite. Ample space above gas fireplace for flat screen Television and stereo components. Room is wired for surround sound. Recessed lighting in knockdown ceilings, double hung windows with views of backyard.
Large open kitchen with gorgeous Maple cabinets, roll out drawers, extra top storage cabinets, pantry cabinet, built-in wine rack and custom hardware. Custom laminate countertops with accent granite countertop on breakfast bar area. Newer black appliances and black sink with brushed nickel hardware. Beautiful hardwood floors and oak trim. Recessed and designer pendant lighting in knockdown ceilings. Connected kitchen deskette with custom laminate counter tops, maple cabinets and phone and cable jacks. Access to front porch, lower level and sliders to deck and backyard. Kitchen is very gracious with countertop and cabinet space!
Main floor full bath with laminate flooring, white wainscoting and designer paint. Pedestal sink, tub with ceramic tile surround, knockdown ceiling, designer lighting and mirror, 2-panel entry door and hall linen closet with custom hardware.
Main floor bedroom with 2-panel entry door, neutral carpeting, lighted ceiling fan, custom blinds, newer windows, separate smaller closet and 2 huge closets with sliding doors and storage above.
2nd Main floor bedroom with neutral carpeting, closet custom blinds and is currently being used as a main floor office.
Large upper level hallway with frieze carpeting open oak railing with white spindles, recessed lighting in a knock down ceilings.
Upper level laundry and utility room with washer and spill catch/drain, dryer, and separate furnace zoned for upper level. White top cabinets and ceramic tile flooring.
Upper level bath with ceramic tile flooring, double Maple vanity with doors, drawers, and custom hardware, double sinks with chrome fixtures. Separate maple linen cabinet, huge mirror with designer lighting, recess lights in knockdown ceiling, tub with fiberglass surround and 2-panel entry door.
Upper level bedroom 1 with neutral frieze carpeting, Marvin Integrity windows, knockdown ceilings with designer lighting, oak trim, large walk-in closet with shelves and rods, and a 2 panel entry door.
Upper level bedroom 2 with neutral frieze carpeting, Marvin Integrity windows, knockdown ceilings with designer lighting, oak trim, large step-in closet with shelves and rods, and a 2 panel entry door.
Mater bedroom with neutral frieze carpeting, Marvin Integrity windows, custom blinds, transom window over bed, vaulted tray knockdown ceilings with recessed lighting and lighted ceiling fan, oak trim, large walk-in closet with shelves and rods, 2 separate hall closets with bi-fold doors, and a 2 panel entry door. Master bathroom with ceramic tile flooring, separate toilet room with privacy pocket door, whirlpool tub with ceramic tile surround and glass block accents, lighted separate walk-in shower with ceramic tile and glass block accents, oversized maple vanity cabinet with drawers and doors, single sink top with chrome hardware and designer lighting above.
Lower level family room with ceramic tile run to neutral Berber carpeting, pine base trim, recessed lighting, extra deep space for exercise equipment or desk.
Lower level non conforming bedroom/storage area with neutral carpeting, recessed lighting in knock down ceilings, supplemental baseboard heating with separate thermostat, double closets with bi-fold doors, huge separate closet / storage area with door. This room just needs an egress window to become a legal bedroom.
Lower level ½ bath with custom designer tile floor and base, white stool and pedestal sink, knock down ceilings and custom vanity lighting.
Lower level utility / storage area with newer high efficiency furnace zoned for basement and main levels, oversized hot water heater, plenty of storage area for boxes etc.
Oversized 2-car garage with matching cedar shake front and maintenance free sides and back, hip roof line. Separate front entry door on garage, extra parking pad to side of garage - great for boat or trailer, backyard shed, rock and mulch landscaping with plants.
A fantastic re-model with a great location, close to parks, blocks from Southdale shopping, easy access to main roads and highways!
Parade of Homes Remodelers Showcase model in '06
Minnegasco $74 / mo
Excel $117 /mo
K-2 Sheridan Hills
3-5 Richfield Intermediate
6-8 Richfield Middle
9-12 Richfield High
HUTCHINSON AND ARNTZ Re/Max Results
NICK ARNTZ - 952-223-1023 or 612-991-0079 - Cell
Top 10 Housing Markets
Top 10 Most Promising Housing Markets
Housing Predictor, which provides housing forecasts in 250 markets, has identified 10 markets where the regional economies are healthy and have strong potential for increasing prosperity.These housing markets have bucked the national trend in 2008 and avoided the subprime crisis, the consultancy says.Whatever the future holds for the housing market as a whole, Housing Predictor forecasts that these cities will continue to see steady, dependable growth.Top cities and the percentage sales prices have increased so far in 2008.
Biloxi, Miss., 4.9 percent
Salem, Ore., 4.7 percent
Bismarck, N.D., 4.6 percent
Spokane, Wash., 4.4 percent
Yakima, Wash., 4.1 percent
Austin, Texas, 4.0 percent
Grand Junction, Colo., 4.0 percent
Fargo, N.D., 4.0 percent
Mobile, Ala., 3.9 percent
Albuquerque, N.M., 3.5 percent
Source: Housing Predictor (11/15/08)
Housing Predictor, which provides housing forecasts in 250 markets, has identified 10 markets where the regional economies are healthy and have strong potential for increasing prosperity.These housing markets have bucked the national trend in 2008 and avoided the subprime crisis, the consultancy says.Whatever the future holds for the housing market as a whole, Housing Predictor forecasts that these cities will continue to see steady, dependable growth.Top cities and the percentage sales prices have increased so far in 2008.
Biloxi, Miss., 4.9 percent
Salem, Ore., 4.7 percent
Bismarck, N.D., 4.6 percent
Spokane, Wash., 4.4 percent
Yakima, Wash., 4.1 percent
Austin, Texas, 4.0 percent
Grand Junction, Colo., 4.0 percent
Fargo, N.D., 4.0 percent
Mobile, Ala., 3.9 percent
Albuquerque, N.M., 3.5 percent
Source: Housing Predictor (11/15/08)
Going Green in Housing
Home Owners Willing to Pay More for Green
Consumers are willing to spend money to go green if it helps them sell their homes, according to a Better Homes and Gardens Real Estate survey.About 48 percent of home owners would spend $2,500 or more to green up their homes for resale, the survey found. One-third say they would be willing to spend $5,000 or more on green improvements to make their homes more appealing.Meanwhile, about 36 percent of respondents identify cost as the chief reason they aren’t going green. Consumers seemed to be well-informed about green home trends, though. According to the survey, 82 percent say they are informed and understand green issues.
Source: Better Homes & Gardens Real Estate (11/13/08)
www.hutchinsonandarntz.com
Consumers are willing to spend money to go green if it helps them sell their homes, according to a Better Homes and Gardens Real Estate survey.About 48 percent of home owners would spend $2,500 or more to green up their homes for resale, the survey found. One-third say they would be willing to spend $5,000 or more on green improvements to make their homes more appealing.Meanwhile, about 36 percent of respondents identify cost as the chief reason they aren’t going green. Consumers seemed to be well-informed about green home trends, though. According to the survey, 82 percent say they are informed and understand green issues.
Source: Better Homes & Gardens Real Estate (11/13/08)
www.hutchinsonandarntz.com
Tuesday, November 11, 2008
Weekly Market Activity Report
Weekly Market Activity Report
There is further evidence that home sellers (both traditional and lender-mediated) in the Twin Cities housing market are becoming more successful in attracting buyer interest by pricing their properties attractively from the get-go. This is having the bonus effect of limiting further extension of market time and reducing the number of price concessions. For instance, the Average Days on Market Until Sale in October was 141, down from last year by 0.8 percent. This is the first year-over-year decline in market time since we began tracking the figures in 2006.
Similarly, the Percent of Original List Price Received at Sale in October sat at 91.3 percent. While still down from last year, it is only down 1.9 percent, compared to the more robust drops of 4 percent or higher seen during most of 2008. In other words, the market is still tilted in the buyer's favor, but sellers and banks are responding with more realistic prices at the time of first listing.
For the week ending November 1, there were 21 percent fewer new listings than there were at this time last year, and 1.4 percent fewer pending sales. This is the first downward year-over-year movement in pending sales since June.
The Housing Affordability Index has increased slightly in November to 161, while November's Months Supply of Inventory shows a drop to 9 months.
Click her for Market Report Details - PDF
There is further evidence that home sellers (both traditional and lender-mediated) in the Twin Cities housing market are becoming more successful in attracting buyer interest by pricing their properties attractively from the get-go. This is having the bonus effect of limiting further extension of market time and reducing the number of price concessions. For instance, the Average Days on Market Until Sale in October was 141, down from last year by 0.8 percent. This is the first year-over-year decline in market time since we began tracking the figures in 2006.
Similarly, the Percent of Original List Price Received at Sale in October sat at 91.3 percent. While still down from last year, it is only down 1.9 percent, compared to the more robust drops of 4 percent or higher seen during most of 2008. In other words, the market is still tilted in the buyer's favor, but sellers and banks are responding with more realistic prices at the time of first listing.
For the week ending November 1, there were 21 percent fewer new listings than there were at this time last year, and 1.4 percent fewer pending sales. This is the first downward year-over-year movement in pending sales since June.
The Housing Affordability Index has increased slightly in November to 161, while November's Months Supply of Inventory shows a drop to 9 months.
Click her for Market Report Details - PDF
NAR Recommends New Housing Stimulus Legislation
The National Association of REALTORS® will offer a four-point legislative plan to reinvigorate the housing market, calling on Congress to act during a lame-duck session. NAR believes the plan will give a boost to the economy and help to calm jittery potential homebuyers.
The plan features such consumer-driven provisions as eliminating the repayment of the first-time homebuyer tax credit and expanding it to all homebuyers, making higher mortgage loan limits permanent, pushing banks to extend credit to Main Street, and prohibiting banks from entering into real estate.
"Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible," said NAR President Richard F. Gaylord. "It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans. We are asking Congress to act right away."
The four-point plan includes the following provisions:
Remove the requirement in the current law that first-time homebuyers repay the $7,500 tax credit, and expand the tax credit to apply not only to first-time buyers but also to all buyers of a primary residence.
Revise the FHA, Fannie Mae and Freddie Mac 2008 stimulus loan limit increases to make them permanent. The Economic Stabilization Act, enacted in February, made loan limit increases temporary, and subsequent legislation reduced the loan limits and made them permanent. This has broad implication for homebuyers in high cost areas.
Urge the government to use a portion of the allotted $700 billion that was provided to purchase mortgage-backed securities from banks to provide price stabilization for housing. The Treasury Department should be required to use the newly enacted Troubled Assets Relief Program to push banks to:
1. Extend credit down to Main Street, making credit more available to consumers and small businesses;
2. Expedite the process for short sales;
3. Expedite the resolution of banks' real estate owned (REOs) properties.
4. Make permanent the prohibition against banks entering real estate brokerage and management, further protecting consumers and the economy.
The National Association of REALTORS® will offer a four-point legislative plan to reinvigorate the housing market, calling on Congress to act during a lame-duck session. NAR believes the plan will give a boost to the economy and help to calm jittery potential homebuyers.
The plan features such consumer-driven provisions as eliminating the repayment of the first-time homebuyer tax credit and expanding it to all homebuyers, making higher mortgage loan limits permanent, pushing banks to extend credit to Main Street, and prohibiting banks from entering into real estate.
"Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible," said NAR President Richard F. Gaylord. "It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans. We are asking Congress to act right away."
The four-point plan includes the following provisions:
Remove the requirement in the current law that first-time homebuyers repay the $7,500 tax credit, and expand the tax credit to apply not only to first-time buyers but also to all buyers of a primary residence.
Revise the FHA, Fannie Mae and Freddie Mac 2008 stimulus loan limit increases to make them permanent. The Economic Stabilization Act, enacted in February, made loan limit increases temporary, and subsequent legislation reduced the loan limits and made them permanent. This has broad implication for homebuyers in high cost areas.
Urge the government to use a portion of the allotted $700 billion that was provided to purchase mortgage-backed securities from banks to provide price stabilization for housing. The Treasury Department should be required to use the newly enacted Troubled Assets Relief Program to push banks to:
1. Extend credit down to Main Street, making credit more available to consumers and small businesses;
2. Expedite the process for short sales;
3. Expedite the resolution of banks' real estate owned (REOs) properties.
4. Make permanent the prohibition against banks entering real estate brokerage and management, further protecting consumers and the economy.
Wednesday, November 5, 2008
Barack Obama becomes 44th President
CHICAGO, Illinois (CNN) -- Barack Obama did more than thump John McCain in the Electoral College tally; he also handily won the popular vote and redrew the great divide between red states and blue states.
Riding a Democratic tide that bolstered the party's presence in both houses of Congress, Obama snared about 63 million votes to McCain's 55.8 million, according to totals early Wednesday.
According to exit polls, Obama crushed McCain among women voters (56 percent to 43 percent); voters under 30 (66 percent to 32 percent); African-American voters (95 percent to 4 percent); Latino voters (66 percent to 32 percent); first-time voters (68 percent to 31 percent); and voters making less than $100,000 a year (55 percent to 43 percent).
"I think this is the passing of an old order," CNN senior political analyst David Gergen said as the results rolled in Tuesday night and the outcome became increasingly evident.
"I think what we see ... is a new coalition, a new order emerging. It isn't quite there, but with Barack Obama, for the first time, it's won. It is the Latino vote we just heard about. It is the bigger black vote that came out. Very importantly, it's the youth vote, the 18-to-29-year-old," said the Harvard University professor and former presidential adviser.
According to exit polls, Obama crushed McCain among women voters (56 percent to 43 percent); voters under 30 (66 percent to 32 percent); African-American voters (95 percent to 4 percent); Latino voters (66 percent to 32 percent); first-time voters (68 percent to 31 percent); and voters making less than $100,000 a year (55 percent to 43 percent).
"I think this is the passing of an old order," CNN senior political analyst David Gergen said as the results rolled in Tuesday night and the outcome became increasingly evident.
"I think what we see ... is a new coalition, a new order emerging. It isn't quite there, but with Barack Obama, for the first time, it's won. It is the Latino vote we just heard about. It is the bigger black vote that came out. Very importantly, it's the youth vote, the 18-to-29-year-old," said the Harvard University professor and former presidential adviser.
Early voting totals in the East suggested things would go traditionally, with McCain taking most of the Southeast, Obama most of the Northeast.
But then things quickly changed, as the senator from Illinois struck -- first in Pennsylvania and then in the Midwest state of Ohio, states McCain had to win in his bid for the Oval Office. Obama then delivered an uppercut in Virginia, a state that had not voted for a Democratic president since 1964.
But then things quickly changed, as the senator from Illinois struck -- first in Pennsylvania and then in the Midwest state of Ohio, states McCain had to win in his bid for the Oval Office. Obama then delivered an uppercut in Virginia, a state that had not voted for a Democratic president since 1964.
As polls closed from East to West, Obama kept hammering McCain, as he snatched away Iowa, Colorado, New Mexico and Nevada -- states that had been in President Bush's column in 2004.
And Wednesday morning, Obama added Indiana to the list of states he'd turned from red to blue. Indiana hadn't voted for a Democrat since Lyndon Johnson in 1964.
(Missouri and North Carolina were still counting votes Wednesday, but it appeared one or two of them could become blue-state converts as well.)
And Wednesday morning, Obama added Indiana to the list of states he'd turned from red to blue. Indiana hadn't voted for a Democrat since Lyndon Johnson in 1964.
(Missouri and North Carolina were still counting votes Wednesday, but it appeared one or two of them could become blue-state converts as well.)
With McCain on the ropes, an Obama victory in Florida sounded the death knell.
When Indiana fell into Obama's column Wednesday morning, he had a 349-163 lead over his rival in electoral votes, with only 26 undecided.
As he claimed victory Tuesday night, Obama told supporters, "change has come to America."
"The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America -- I have never been more hopeful than I am tonight that we will get there. I promise you -- we as a people will get there," Obama said in Chicago before an estimated crowd of up to 240,000 people.
With Obama's win, he becomes the first African-American to win the White House.
McCain pledged Tuesday night to help Obama lead. "Today, I was a candidate for the highest office in the country I love so much, and tonight, I remain her servant," McCain said.
The senator from Arizona called Obama to congratulate him, and Obama told him that he was eager to sit down and talk about how the two of them can work together.
Obama will also be working with a heavily Democratic Congress. Democrats picked up Senate seats in New Hampshire, New Jersey, North Carolina and Virginia, among others.
But Obama pledged to work across party lines and listen to the 46 percent of voters who chose McCain."While the Democratic Party has won a great victory tonight, we do so with a measure of humility and determination to heal the divides that have held back our progress," Obama said.
"To those Americans whose support I have yet to earn -- I may not have won your vote, but I hear your voices, I need your help, and I will be your president, too," he said.
And he recited the words of Abraham Lincoln, the first Republican in White House, to call for unity."As Lincoln said to a nation far more divided than ours, 'We are not enemies, but friends ... though passion may have strained it must not break our bonds of affection,'" Obama said. Supporters in Chicago cheering, "Yes, we can," were met with cries of "Yes, we did."
Bush also called Obama to offer his congratulations.
The president told Obama he was about to begin one of the great journeys of his life, and invited him to the White House as soon as it could be arranged, according to White House spokeswoman Dana Perino.
Bush also called Obama to offer his congratulations.
The president told Obama he was about to begin one of the great journeys of his life, and invited him to the White House as soon as it could be arranged, according to White House spokeswoman Dana Perino.
More than 1,000 people gathered outside the White House, chanting "Obama, Obama!"
Sen. Hillary Clinton, Obama's former rival for the Democratic nomination, said in a statement that "we are celebrating an historic victory for the American people."
"This was a long and hard fought campaign, but the result was well worth the wait. Together, under the leadership of President Barack Obama, Vice President Joe Biden and a Democratic Congress, we will chart a better course to build a new economy and rebuild our leadership in the world."
Sen. Edward Kennedy said Americans "spoke loud and clear" in electing Obama.
"They understood his vision of a fairer and more just America and embraced it. They heard his call for a new generation of Americans to participate in government and were inspired. They believed that change is possible and voted to be part of America's future," the Massachusetts Democrat said in a statement.
Voters expressed excitement and pride in their country after casting their ballots in the historic election. Poll workers reported high turnout across many parts of the country, and some voters waited hours to cast their ballots.
Title Insurance
Title Insurance
Lenders always require that the buyer pay for a Lender’s Policy of Title Insurance, there is no law or other requirement that the buyers also purchase an Owner’s Policy of Title Insurance. Nevertheless, except in those few instances in which a buyer will have a lawyer prepare a Title It is advised to have buyers purchase an Owner’s Policy of Title Insurance. Otherwise, if a title defect is later discovered, the buyer will be responsible for correcting it. That can and often does involve thousands of dollars in fees.
Prior to the closing, the title insurance company will issue a “Commitment”. That is essentially a preliminary statement as to the status of the title. It is important that the buyer have an opportunity to see that Commitment before the closing. If it is sent to your Realtor, be sure it is promptly forward to you. If it is not sent to you, be sure to confirm that you has receive it from the title company.
Every Commitment includes a Schedule B which is often divided into B-I and B-II. The matters in Schedule B constitute exceptions to the title insurance. In other words, the Title Insurance Policy will not cover those matters. Often, if someone makes a request of the closer, she will be able to delete some of those exceptions, such as the “Standard Exceptions” and items that are being paid from closing, such as existing mortgages, liens and taxes. However, there are many items which will remain on the title to the property and cannot be deleted. Typical examples are Declarations of Protective Covenants and easements. If Schedule B refers to items of that nature, the buyer should have an opportunity to review the document which is referenced. Thus, if the Declaration prohibits the raising of pigs and chickens, the buyer should know that. Similarly, if the Declaration prohibits the construction of an out-building, a pool or a sports court, the buyer should know that.
Particular attention should be paid to easements. Most newer properties have easements along the rear or side five feet for utility and drainage. Those easements typically do not interfere with owner’s use and enjoyment of their property. However, some easements can be quite significant. Easements for such matters as gas pipelines, electrical transmission lines and conservation can dramatically limit how a person can use his or her property. If you see those types of easements in a Title Commitment, be certain to bring them to the attention of your Realtor.
Finally, if your is concerned about the Commitment or any of the documents associated with the Commitment, it is prudent for you to seek the advice of your own attorneys. Lawyers are trained to read and understand documents which affect the title to real property.
Lenders always require that the buyer pay for a Lender’s Policy of Title Insurance, there is no law or other requirement that the buyers also purchase an Owner’s Policy of Title Insurance. Nevertheless, except in those few instances in which a buyer will have a lawyer prepare a Title It is advised to have buyers purchase an Owner’s Policy of Title Insurance. Otherwise, if a title defect is later discovered, the buyer will be responsible for correcting it. That can and often does involve thousands of dollars in fees.
Prior to the closing, the title insurance company will issue a “Commitment”. That is essentially a preliminary statement as to the status of the title. It is important that the buyer have an opportunity to see that Commitment before the closing. If it is sent to your Realtor, be sure it is promptly forward to you. If it is not sent to you, be sure to confirm that you has receive it from the title company.
Every Commitment includes a Schedule B which is often divided into B-I and B-II. The matters in Schedule B constitute exceptions to the title insurance. In other words, the Title Insurance Policy will not cover those matters. Often, if someone makes a request of the closer, she will be able to delete some of those exceptions, such as the “Standard Exceptions” and items that are being paid from closing, such as existing mortgages, liens and taxes. However, there are many items which will remain on the title to the property and cannot be deleted. Typical examples are Declarations of Protective Covenants and easements. If Schedule B refers to items of that nature, the buyer should have an opportunity to review the document which is referenced. Thus, if the Declaration prohibits the raising of pigs and chickens, the buyer should know that. Similarly, if the Declaration prohibits the construction of an out-building, a pool or a sports court, the buyer should know that.
Particular attention should be paid to easements. Most newer properties have easements along the rear or side five feet for utility and drainage. Those easements typically do not interfere with owner’s use and enjoyment of their property. However, some easements can be quite significant. Easements for such matters as gas pipelines, electrical transmission lines and conservation can dramatically limit how a person can use his or her property. If you see those types of easements in a Title Commitment, be certain to bring them to the attention of your Realtor.
Finally, if your is concerned about the Commitment or any of the documents associated with the Commitment, it is prudent for you to seek the advice of your own attorneys. Lawyers are trained to read and understand documents which affect the title to real property.
Wednesday, October 29, 2008
Short-term rates nearing historic lows
For the second time this month, the Federal Reserve has cut a key short-term interest rate, but the widely anticipated move was expected to have little immediate impact on mortgage rates.
In slashing its target for the federal funds overnight rate by 50 basis points, to 1 percent, the Federal Open Market Committee said a decline in consumer expenditures has "markedly" slowed economic activity.
Weaker prospects for economic growth, and declines in energy prices and other commodities, have the Fed expecting that inflation will moderate in coming quarters, providing leeway to cut short-term rates to near historic lows.
The Fed today also unanimously approved a 50-basis-point cut in the discount rate to 1.25 percent. The Fed also made emergency 50-basis-point cuts in the federal funds and discount rates on Oct. 8.
The federal funds rate -- the rate banks charge each other for overnight loans -- was gradually reduced to 1 percent after the dot-com stock market crash, where it stayed for much of 2003 and 2004. It has not been lower than 1 percent since 1958.
Cutting short-term interest rates is intended to stimulate borrowing. While some home equity loans are tied to the federal funds rate, most adjustable-rate mortgage loans are indexed to the London Interbank Offered Rate, or LIBOR.
LIBOR has remained elevated in recent weeks despite efforts by central banks around the world to make money more easily available, as banks remain reluctant to loan money to each other because of fears of insolvency.
Fixed-rate mortgage rates are largely determined by the willingness of secondary market investors to purchase mortgage-backed securities. Long-term mortgage rates, which have historically tracked longer-term investments such as the 10-year Treasury, have not come down in concert with Treasuries because they are in less demand by investors.
Fannie Mae and Freddie Mac, which guarantee most of the mortgage-backed securities purchased on the secondary market, are also major investors in them. Both companies are facing higher borrowing costs.
Holdings of Fannie's and Freddie's debt and mortgage-backed securities by foreign central banks plummeted by $47 billion during the four weeks ending Oct. 22, to $923.4 billion, Bloomberg News reported.
In slashing its target for the federal funds overnight rate by 50 basis points, to 1 percent, the Federal Open Market Committee said a decline in consumer expenditures has "markedly" slowed economic activity.
Weaker prospects for economic growth, and declines in energy prices and other commodities, have the Fed expecting that inflation will moderate in coming quarters, providing leeway to cut short-term rates to near historic lows.
The Fed today also unanimously approved a 50-basis-point cut in the discount rate to 1.25 percent. The Fed also made emergency 50-basis-point cuts in the federal funds and discount rates on Oct. 8.
The federal funds rate -- the rate banks charge each other for overnight loans -- was gradually reduced to 1 percent after the dot-com stock market crash, where it stayed for much of 2003 and 2004. It has not been lower than 1 percent since 1958.
Cutting short-term interest rates is intended to stimulate borrowing. While some home equity loans are tied to the federal funds rate, most adjustable-rate mortgage loans are indexed to the London Interbank Offered Rate, or LIBOR.
LIBOR has remained elevated in recent weeks despite efforts by central banks around the world to make money more easily available, as banks remain reluctant to loan money to each other because of fears of insolvency.
Fixed-rate mortgage rates are largely determined by the willingness of secondary market investors to purchase mortgage-backed securities. Long-term mortgage rates, which have historically tracked longer-term investments such as the 10-year Treasury, have not come down in concert with Treasuries because they are in less demand by investors.
Fannie Mae and Freddie Mac, which guarantee most of the mortgage-backed securities purchased on the secondary market, are also major investors in them. Both companies are facing higher borrowing costs.
Holdings of Fannie's and Freddie's debt and mortgage-backed securities by foreign central banks plummeted by $47 billion during the four weeks ending Oct. 22, to $923.4 billion, Bloomberg News reported.
Subscribe to:
Posts (Atom)
Posts
