One Year Later

The Federal Reserve has continued to monitor for improvement in the market and the economy to warrant an easing of the restrictions on the amount banks can charge banks for money, ie how much they can charge for lending money to home owners and potential home owners as well as how much market funds and investments can make on their investments.  Recent improvements although slow and cautious are beginning to reach a point where rates are really expected to go up and when they do, buying power for home owners will decrease more than most young buyers realize.  But the word is out and there are currently more buyers and sellers working to move this Fall and get settled before the rates rise affecting how much buyers can buy.  Happy Moving and Happy Veterans Day 2015.

This is a great article from CNN Money!

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NEW YORK (CNNMoney)

The Federal Reserve announced the end of its bond-buying program Wednesday, marking the close of a six-year effort to stimulate the economy.

The decision reflects how much the economy has improved since the recession. It's akin to taking the training wheels off of a child's bike. The Fed's announcement was overall positive, says Dan Greenhaus, chief strategist at market research firm BTIG in New York. "It's in response to the Fed acknowledging the improvement in the economy, the improvement in the labor market and the diminished risks on the inflation side of things," says Greenhaus.

The 12 members of the central bank's committee also voted to keep its key interest rate near zero. This means people with savings in the bank get little to no interest, but the low interest rates spur people and businesses to spend and invest.

When will interest rates rise? In its statement today, the Fed kept in the closely watched statement that it will maintain interest rates at the current low rates "for a considerable time." The Fed has given indications that it will likely raise the interest rate in 2015. Rates will likely rise by next March, says Paul Ashworth, chief economist at research firm Capital Economics.

"We still believe that the Fed will begin to raise rates sooner than generally expected," Ashworth wrote in a note. He added that the Fed's relatively optimistic language about inflation and the labor market was a "hawkish," or positive, move. Many economists and traders expect the Fed to begin raising rates in the summer of 2015.

The bank started its bond program, known as quantitative easing or "QE", in November 2008 to aid the economy and the crippled housing market. It became the flagship program of former Fed Chairman Ben Bernanke's term in office.

Improving economy: The economy has come a long way in six years. The unemployment rate is now 5.9%, its lowest mark since QE began. There are over 8.5 million more people employed now than in November 2008, according to the Bureau of Labor Statistics. In the announcement Wednesday, the Fed said the job market is improving. "On balance, a range of labor market indicators suggests that underutilization of labor resources is gradually diminishing," the statement read. Current Fed Chairwoman Janet Yellen has often cited her concerns this year about the sluggish job market, but it appears the Fed's views have shifted somewhat. The Fed also wants inflation to stay consistently above 2%, which it has not since the Fed lowered interest rates.

The total number of housing starts, an important measure of the health of the real estate market, has almost doubled since its low point shortly after QE began, according to the Census Bureau. The Dow Jones Industrial Average was down around 20 points just before the Fed's announcement. The Dow dropped further after the statement came out to around 70 points down. With the economy still on the mend, there are many arguments for and against the Fed's historic policy decision to buy bonds.

"We're going to be debating the efficacy of the quantitative easing programs for the next 100 years," says Greenhaus. "Its legacy is undetermined because the war isn't over." ___________________________________________________________________________________________________________________________________________

Quick look at rates, compliments of Mark Peay, SunTrust Mortgage:

30 Year Fixed Conventional rate at 3.875-4.25% (30day lock and qualifying credit, LTV)

FHA & VA 30 Year Fixed rate 3.375-3.625% (30day lock and qualifying credit, LTV)

Jumbo 30 Year Fixed rate 3.75-4.125% (30day lock and qualifying credit, LTV, income & assets)

Doctor Loan 30 Year Fixed rates 4.375-4.625% (30day lock and qualifying credit, LTV)

MARKET Watch for our region.

Check out how the market measures up around here in recent months and years:

http://www.rbintel.com/marketwatch-videos  

Provided by RBI Intel.

Best wishes,

Linda

Tips for paying DOWN Your Mortgage!

The following RISMEDIA video explains something you should know to save money over the life of the loan on your home purchase:

http://rismedia.com/2014-10-08/video-how-to-pay-down-your-mortgage-faster/  

I did several of these things myself and shaved years off my mortgage and saved many thousands of dollars in interest. Easy and fairly painless.  Plan to save money, too!

Have a GREAT October!

Best wishes,
Linda

Pillar To Post Advice on Radon

September 15, 2014

DETECTING AND ADDRESSING RADON CONTAMINATION IN THE HOME

Many homeowners are concerned about the possible presence of radon gas in their homes – and with good reason. The US Environmental Protection Agency reports that radon is the second leading cause of lung cancer in the US after smoking. Due to these concerns, more and more home buyers are considering radon detection to be a “must” when they are considering a particular property.

WHAT IS THE SOURCE OF RADON?

Radon is a naturally-occurring odorless, colorless, radioactive element that is formed by the ongoing decay of uranium in soil, rocks, sediments, and even well or ground water. While radon that escapes into the atmosphere is not harmful, dangerously high concentrations can build up indoors, exposing occupants to possible health risks.

HOW RADON ENTERS THE HOME

Radon gas can migrate into the home in several ways. Openings or cracks in basement walls or floors are common avenues.  Sumps, basement drains, and spaces between gas or water fittings can also allow radon into the structure. Elevated levels of radon can even be found in new homes.

HOW CAN HOME BUYERS FIND OUT ABOUT RADON IN A HOME THEY ARE CONSIDERING?

Many home inspectors will conduct radon inspections, usually as an add-on service to a standard inspection. The inspector will set up the testing equipment and report on the results once the proper measurement procedure is complete. It is important to realize that radon levels in any particular home can vary widely, even over the course of a few days. If an elevated level of radon is detected, steps can be taken to lessen the concentration inside the home.

REDUCING THE LEVELS OF RADON IN THE HOME

The EPA names several different radon reduction methods, including ventilation and installing a radon ventilation system that vents the gas above the roof. Sealing cracks in the foundation can increase the effectiveness of ventilation systems, but has not been shown to adequately reduce radon levels on its own. Professional mitigation services can provide recommendations for a home’s specific conditions.

Simple tips for making your home more energy efficient

Most common

You might assume that making your home energy efficient requires a lot of time and money, but generally that's not the case. Often small fixes can have a big impact on your heating, cooling, and other utility bills. Here are some easy things you can do to make your home more efficient right now: Tip #1: Don't turn that dial Keep your thermostat set at one temperature and leave it! In the winter around 68 degrees should be right, and 75 degrees in summer (in homes with a cooling system, of course). Avoiding constant adjustments will keep your energy bills stable. Tip #2: Stop the drip-drips Leaky shower heads and faucets are hard-to-miss energy wasters. Toilets that run can also cost you on your water bill. The majority of required repairs are covered in the most basic do-it-yourself handbook. Tip #3: Go fluorescent While compact fluorescent light bulbs cost more than the standard incandescent bulbs that you're used to, they last up to five times longer and use only a quarter of the electricity. Many of these bulbs last over five years, and each energy-saving fluorescent bulb will save you $40 to $60 on your electric bill over the course of its lifetime. Tip #4: Watch that fireplace Energy can really leak out of that fireplace. Check the dampers and screens to make sure that energy isn't leaking when the fireplace is not in use. If the fireplace is just for decoration, cover the chimney. A well maintained fireplace should be an economical way to heat your house and add a warm atmosphere as well. Tip #5: Keep those appliances humming Clean air conditioning and furnace filters frequently, and have your appliances inspected once a year. Efficient appliances lower energy bills and future repair costs. Tip #6: Windows that waste Windows are the most common energy waster. Make sure that all the weather-stripping is in good condition, and consider double-paned windows and storm shutters to reduce the energy drain. Hopefully these ideas help you create a more energy efficient home. Energy efficiency is not only an important part of conservation; it's also a great way to save money. More homeowners tips are available on my website. If you have any questions about your home, I'm only a phone call away.

Increase in Homeowner Equity Slight Over last year, but moving in the right Direction->

By Michael Fenner, Wednesday, 1 October 2014 - 9:29am

New analysis from CoreLogic shows that nearly 950,000 homes returned to positive equity in the second quarter of this year. Nationwide, borrower equity increased by approximately $1 trillion in the second quarter compared to a year earlier.
However, 10.7 percent of all residential properties with a mortgage (5.3 million homes), were still in negative equity in Q2, but that total is down from 12.7 percent (6.3 million homes) in the first quarter and 14.9 percent (7.2 million homes) in in Q2 2013, the report says.
“The increase in borrower equity of $1 trillion from a year earlier is evidence that things are moving solidly in the right direction,” says Sam Khater, deputy chief economist for CoreLogic. “Borrower equity is important because home equity constitutes borrowers’ largest investment segment and, as a result, is driving forward the rise in wealth for the typical homeowner.”