Current Rate Conditions - 10 February 2014

Forwarded exclusively by:	KATHY MALONE Corridor Mortgage Group Office: 410-499-2900 Email: kmalone@corridormtg.com website: www.kathymalone.com NMLS#: 287748
Monday, February 10, 2014
Why does the Non-Farm Payroll report affect mortgage rates? On Friday, the Non-Farm Payroll report came in much weaker than expected (134k new jobs vs the estimates of 185k), and helped stabilize mortgage rates once again.  Have you ever wondered why a single report could have such a huge effect? The non-farm payroll figure (a.k.a. NFP) represents the number of jobs added or lost in the economy over the last month, not including jobs relating to the farming industry. The farming industry is not included because its seasonal hiring distorts employment numbers around harvest time. Non-farm payroll is an important day trading indicator because it affects all markets; the job market impacts the FX, bonds, stocks, and derivatives markets. From a basic economic sense, when the NFP shows an increase in jobs it means the economy is doing well. An increase in employment means that companies are growing, and a secondary benefit is that the newly hired workers will have more money to spend on goods and services. A decrease means that the opposite is true. NFP and the overall job market have become key indicators for traders and that is reflected in the market’s sensitivity to the non-farm payroll report. The report includes the unemployment rate, what sectors have increased or decreased their workforce, what the average hourly earnings are, and any revisions that need to be made to prior reports. So why does it help mortgage rates?  To put it very simply, a poor report highlights the lack of economic growth.  Lack of economic growth is good for bonds, including MBS (mortgage-backed securities), the key driver to mortgage rates.  So when a report comes in showing weakness, like Friday's did, traders are more likely to buy bonds including MBS which helps mortgage rates. The question now is how long will the effect last?  Likely not long, as this week has lots of economic data for traders to digest.  Be sure to stay in contact with your mortgage professional above to monitor mortgage rates through the week.   Last Week's Mortgage Rate Recap Mortgage Rates Currently Trending: Slightly Higher Last week saw rates slightly higher at the end of the week after starting the week off with a strong rally on Monday.  Rates deteriorated through the week, and finally stopped worsening on Friday with the release of the weaker than expected jobs report (Non-Farm Payroll Report).          This Week's Mortgage Rate Forecast Mortgage Rates Forecast: NEUTRAL This week we are starting off with no economic data on Monday, but interest events through the rest of the week.  The biggest event will be Janet Yellen's first testimony as the Fed Chair, followed by the 10 year Treasury auction.  The biggest report of the week will be Thursday's Retail Sales report.  BOTTOM LINE:  Work closely with your Mortgage Loan Professional to monitor the market in real time to stay ahead of a reversal and the worse rates that will come with it.    RateAlert’s Most Trusted Mortgage Lending Professionals:  Loan Professions that subscribe to RateAlert Executive services have the training and market knowledge at their fingertips, along with live trading data during market hours to expertly help navigate the difficult and often times confusing process of understanding rate movements and which factors may cause volatility when considering whether or not to lock.  If you’d like to learn more about what things to consider when timing the market in an effort to obtain the best interest rates, don’t hesitate to contact the person who sent you this commentary. This commentary has been sent to you by the Mortgage Loan Originator (MLO) above because they thought you may find it interesting or helpful. The views and opinions offered do not necessarily represent the views of your MLO. Please contact them with any questions or to find out more about the information listed herein and how to work with them
Maryland For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com.

Pets in the Mix: From Petrifying to Purrfect - 1/2014

Real Estate Advisor: January 2014
	Pets in the Mix: From Petrifying to Purrfect A beautiful cat or friendly dog might be just the thing for you and your family. As members of the household, pets have a place in your home and your heart. But what about pets and all that go with them when you are buying or selling a home? In the case of a large investment such as buying or selling a property, addressing the topic of pets during this transaction is worthy of some sniffing out. True animal lovers often have homes that are especially welcoming to animals and people alike. Homes that are set back from roads or traffic, or are close to dog parks or walking trails might have special appeal. Horse-properties are often fenced, have pasture land or barns, and storage for feed. Whether or not you have pets, if you are selling a property with these facets, you might have a winning angle for the right buyer. While real estate agents can promote these features, they want to do so without having to overcome pet odor and damage issues. Unfortunately, there are also homes where pets “rule the roost” and the home is less appealing to people. When proper care is not taken, or the number of animals in the home outpaces the owner’s ability to adequately care for them, smells and other issues can become serious problems in the selling process. Evaluating a home with regard to pets unlocks features and flaws in a home. The ability to open windows or gain access through a back door to a fenced yard or to a pet enclosure is not only useful for pets and people, but can be important in examining temperature, traffic, and utility of a potential home. Odors may indicate issues with airflow, potentially giving clues about heating and/or cooling. When allergens are present in the air, air conditioning can help take them out of circulation, making a home with central air conditioning very desirable. In short, most homes will be primarily evaluated for people, so do the work beforehand to make your home people-friendly and as pet-neutral as possible. Most importantly, the homeowner should minimize the obvious signs of pets: food bowls and toys, scent, fur, feces, scratch-marks, carpet stains, and/or damage from digging or chewing. While it hardly seems fair, significant value may be lost if the home is perceived to be occupied or potentially damaged by animals – pets or wild ones. Not only is it important to rectify any issues that might be in the home presently, but during the duration of the showing and sale of a property; all pet matters must be kept in check. As a general rule, keep in mind that while people often love pets, they don’t always love yours. Barking dogs, cats that shed excessively, and animals that could cause harm are deterrents to the welcoming feel most people desire when they come to see a property. Additionally, “pet furniture” can detract from a home, or make it memorable in ways that are not conducive to a sale. Instead, remove that well-worn chair or cat tree that presents an “in-your-face” distraction from more positive aspects of the home itself. Consider “doggy daycare” or boarding your pet elsewhere if there is concern that the presence of a pet could detract from the viewing experience. Always alert the showing agent of the presence of a pet. Ensure that there are arrangements in place for animals that require special attention, and keep up on pet chores that enhance the home’s appeal. While it might be unrealistic to get every hair, work to minimize attention to it by vacuuming often and removing potentially offensive items like well-worn pet beds and blankets during showings. Have your pet bathed and groomed frequently during this time period to reduce pet odors and ensure that all shots, ID tags, and licenses are up-to-date in the event of an accidental release. Similarly, if you are seeking a property that is especially free of allergens, or inversely, especially good for a certain pet – real estate agents know what to look for. Be sure to check out laundry rooms, basements and garages as these are common places where pets may spend lots of time, and could provide useful clues regarding the successes and failures of a pet’s presence in a home. There are key chores that must be accomplished by the homeowner prior to selling it, if a pet has been present: Check for outside damage to landscape, porches, decks and lawn. Ensure that holes are filled, scratched or chewed wood are fixed, fences are in good repair and painted when appropriate, and that plants don’t show evidence of pets. If a pet scratches to come in, repair any marks on the front and back door or screens. Nothing can fix a bad first impression. Moving indoors, check for scratches, chewing, and paint damage that come from pets walking, rubbing, or otherwise using the home. Paint, clean or repairs items as needed. Removal of furniture that reveals the presence of animals should be considered. Stained carpets should be professionally cleaned or removed, as pet “accidents” can be absorbed into carpet pad and odors remain. Again, check doors, molding or areas where grime, hair, scratching or chewing appears. Consider this “detailing” your home as you would a car. Clean air ducts and filters in the home’s HVAC system to ensure that odors are not being circulated throughout the home and that it is working properly, free of pet hair. Pet odors are the biggest offense, and must be removed; this might require the replacing of flooring or sheet rock in some cases. Professionally cleaning concrete floors in garages or basements that have housed pets is a great idea to remove odors. In cases where rodents have damaged insulation in crawl spaces, replacement may be necessary. When pets are in the mix and a home is for sale, it is essential to consider a pet’s happiness, safety, and effect that they might have on people viewing the home. Creative solutions can be difficult to come by. Few people have the luxury of obtaining a new home prior to selling their residence and removing pets entirely from the home that is for sale. If a pet absolutely cannot be removed from the home, consider crate-training, which might also aid in the relocation process in the future, or limiting a pet to a confined space. No question about it – selling or buying a home with pets in mind adds a dimension to the process. Paying attention to these details can seem overwhelming, but the value of a home depends on it. Purrfectly so.

What is the Homestead Credit? I believe the deadline was extended again.....

What is the Homestead Credit?

The homestead credit limits the amount of assessment increase on which a homeowner will pay property taxes in that tax year on the one property actually used as the owner’s principal residence. Legislation enacted by the 2007 session of the General Assembly requires homeowners to submit a one-time application in order to continue their eligibility for the homestead tax credit. Make sure the county is giving you proper credit…it could save you hundreds of dollars!

DECEMBER 31, 2013 was the deadline for filing your Application for Homestead Tax Credit, again. It does not matter whether you have owned your house one year or twenty years or if you are already receiving the credit. An application must be filed. The deadline has been changing for years. If your application is already on file and approved, you DO NOT need to reapply. It hardly matters when home prices rise slowly or have been declining but as the home values are now rising, it would be wise to check and see if you have been approved.  This only applies to homeowner occupied properties and does not apply to all types of homes.  You won't know unless you apply.  What you get a tax savings when prices spike so your taxes rise more gradually on a yearly basis.

How do I know if I need to apply?

It only takes a minute to check to see if you have filed and if you are approved. Follow these steps:

1)      Click on this link: http://sdatcert3.resiusa.org/rp_rewrite/

2)      Select your County

3)      Enter your street number and street name - do not include Street, Court, Drive, etc.

4)      Look at the bottom of the page and see if your Homestead application was filed. If it was filed, the entry will show the date your application was approved.

5)      IF IT SAYS “NO APPLICATION” click on this link for the application: http://www.dat.state.md.us/sdatweb/homestead_application.pdf

Also, even after you have filed and been approved, you may not receive a credit on your tax bill. The credits only appear when the assessed value of the property has increased over the allowable limits each year. With declining assessment values, you may not actually receive a dollar credit each year.

Want to learn more?

To learn more about the Homestead tax credit, click this link http://www.dat.state.md.us/sdatweb/homestead.html or reply to this email with your questions!

Please be sure to share this information with your friends and family members that own a primary residence in Maryland!!

Free advanced search tools for home buyers

Search for Properties using my updated RE/MAX website:  http://www.lkangrga.remaxagent.com/ .

(If you are currently in the market for a home, you will find my website an excellent resource. The site is continually updated with new and valuable information to aid in your decision making process.)

The search feature allows you to filter thousands of listings based on attributes that you select. You can simply search for houses in a certain area and price range, or you can look for houses that fit your specific style. If you know you want a brick house with gas heat and a garage, you can get the results you're looking for. Most real estate websites don't offer that degree of choice.

By signing up with the Property Research Center, which is free, you have access to features that will help you find and organize the listings that best fit your needs:

• Saved Searches allow you to preserve your searches for reference at a later time. You can easily maintain lists of properties that match your criteria without having to re-enter any information, and there is no limit to the number of searches you can save.
• The Favorites Folder allows you to save the individual listings that you find appealing. You can save favorites from different searches into sub-folders, giving you the power to organize your favorite listings however you see fit. This is a great way to put in order those specific listings that interest you most. Again, you may save as many favorites as you wish.
• With the New Listing Notification service, you can be updated via e-mail as to new listings that match the criteria of any saved search. There is no need to check back for updates to your searches. All you have to do is decide whether you want daily, weekly, or bi-weekly notifications of the most recent listings.

I always strive to make the home-buying process as smooth as possible. With the Property Research Center you have the tools at your fingertips that can get you started in the right direction. Please do not hesitate to contact me with any questions, I would love to be of assistance. Again, thank you for your interest. I look forward to hearing from you.

Best wishes,
Linda