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Posts Tagged ‘Buying a Home in Raleigh’

Raleigh takes the lead in our annual list of the most broadband-connected U.S. cities.

Tuesday, October 25th, 2011

Raleigh is the kind of tech-forward city that, innovative as it is, often gets overlooked in favor of San Francisco, San Jose or Seattle. But this year the North Carolina capital passed its flashier rivals to grab the No. 1 spot on Forbes’ Most Wired Cities list.
Raleigh’s win means it ranks higher overall than any other U.S. city in three measures: broadband penetration, broadband access and plentiful wi-fi hot spots. Taken together, the factors point to a populace that readily uses high-speed Internet inside and outside the home.
At stake is more than just bragging rights. As the U.S. formulates a national broadband plan designed to connect the entire country to fast, affordable Internet, Raleigh and other top-ranking Wired Cities could serve as models for change.
Though a surprise winner, Raleigh boasts plenty of technology assets, including a high concentration of info-tech companies, research universities and state government offices.
Several tech powerhouses, such as IBM<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=IBM> ( IBM<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=IBM> – news <http://search.forbes.com/search/CompanyNewsSearch?ticker=IBM> – people <http://people.forbes.com/search?ticker=IBM> ), Cisco<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=CSCO> ( CSCO<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=CSCO> – news <http://search.forbes.com/search/CompanyNewsSearch?ticker=CSCO> – people <http://people.forbes.com/search?ticker=CSCO> ) and Lenovo<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=LNVGY.PK> ( LNVGY.PK<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=LNVGY.PK> – news <http://search.forbes.com/search/CompanyNewsSearch?ticker=LNVGY.PK> – people <http://people.forbes.com/search?ticker=LNVGY.PK> ), maintain large offices in North Carolina’s nearby Research Triangle Park. Raleigh and its surrounding cities are also home to North Carolina State University, Duke and the University of North Carolina at Chapel Hill.
This combination of a highly educated and relatively higher-income population is “fertile ground” for high broadband demand and usage, says Brooks Raiford, head of the North Carolina Technology Association trade group. Regular folks can exploit Raleigh’s IT resources too. The city’s downtown is covered by a wi-fi network that is free to users. Operator Sprint Nextel<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=S> ( S<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=S> – news <http://search.forbes.com/search/CompanyNewsSearch?ticker=S> – people <http://people.forbes.com/search?ticker=S> ) recently launched its “4G” next-generation mobile broadband in Raleigh and the rest of the “Triangle”–months before larger cities like Boston, New York and Washington, D.C., will get the service. “We’re very lucky to be at the epicenter of a lot of market strengths for these different companies,” says Raiford.

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Mortgage Rates: Running into Resistance

Monday, March 14th, 2011

Hugh W. Page, M.B.A.
Senior Mortgage Consultant
(919) 8784-7557 Direct
(919) 595-9707 FAX
hpage@fmlending.com
www.fallsofficeloans.com http://www.fallsofficeloans.com/

Don Davidson
Senior Mortgage Consultant
(919) 747-5947 Direct
(919) 595-9727 FAX
ddavidson@fmlending.com
www.fallsofficeloans.com

FALLS OFFICE MORTGAGE CENTER MARKET UPDATE

Mortgage Rates: Running into Resistance

Friday, March 11, 2011 3:09 PM

Forward this email: Send a copy of this story
http://www.mortgagenewsdaily.com/channels/202579/2/forward.aspx to
someone you know that may want to read it.

Consumer borrowing costs lost a very small amount of ground today.
Mortgage rates are still about aggressive as they’ve been since late
January though….

CURRENT MARKET: The “Best Execution” conventional 30 year fixed mortgage
rate is still 4.875%. For those looking to permanently buy down their
rate to 4.75%, this quote carries higher closing costs. The upfront cost
of permanently buying down your rate to 4.75% is not worth it to many
applicants, we would generally only advise the permanent floatdown if
you plan to keep your new mortgage outstanding for longer than the next
10 years. Ask your loan officer to run a breakeven analysis on any
origination points they might require to cover permanent float down
fees. On FHA/VA 30 year fixed “Best Execution” is still 4.75%. 15 year
fixed conventional loans are best priced at 4.125%. Five year ARMS are
best priced at 3.50%.

To illustrate the recent behavior of mortgage rates, we offer the chart
below. It graphs the average origination closing costs associated with
specific mortgage note rates as quoted by the five major mortgage
lenders.

If the note rate line is moving up, the closing costs associated with
that rate quote are rising. In December, closing costs rose rapidly.
Mortgage rates did improve from those levels, but then moved sideways
for 7-weeks. And then the range broke following the January Employment
Situation Report and consumer rate quotes rose back to their December
highs. As one can see, borrowing costs have steadily improved since
then but have more recently run into a wall near one-month lows. 4.75
is on the brink of being back in the game for consumers but hasn’t been
able to break below the 0.00% barrier since early December. We’ve run
into resistance! Again!!

Each line represents a different 30 year fixed mortgage note rate. The
numbers on the right vertical axis are the origination closing costs, as
a percentage of your loan amount, that a borrower would be required to
pay in order to close on that note rate. If the note rate graph line is
below the 0.00% marker, the consumer may potentially receive closing
cost help from their lender in the form of a lender credits. If the note
rate line is above the 0.00% marker, the consumer should expect to pay
additional points at the closing table to cover permanent buydown costs
and origination fees. PLEASE SEE OUR MORTGAGE RATE DISCLAIMER BELOW

GUIDANCE: The failure of the bond market to extend its recent rally
really serves to drive home a point we’ve been harping on for several
weeks now: WE’RE STUCK. If you’re floating, you’re doing so for
marginal improvements in UPFRONT COSTS ….not RATE. See disclaimer
below please. When it comes to the outlook for lower rates in the months
ahead, we’re still optimistic about that expectation but realize it will
require a steady drip of bond friendly (economy-unfriendly) news and
events . In the short-term, or at least until “the levy breaks” and all
hell breaks loose around the planet, we don’t expect lender rate quotes
to look much better than they do right now. The following comment hints
at the commitment required from bond market investors if we’re going to
see mortgage rates to move notably lower.

From: Mortgage Pricing Hits Wall. Loan Demand Declines…

“Lenders have moved the Best Execution 30-year fixed note rate as low as
they possibly can without drastically altering their pipeline hedging
strategies. This is a factor of what production mortgage-backed
security coupon is most liquid in the secondary mortgage market. On
conventional loans, the 4.50 percent MBS coupon is the hedging vehicle
of choice for lock desks. Home loans with note rates between 4.875 and
5.25% are generally used to fill 4.50 percent MBS coupon trades. Until
MBS investors demonstrate sustainable demand for 4.00 percent 30-year
fixed MBS coupons, lenders will not find it economically efficient to
quote 4.75 percent note rates without expensive permanent buydown costs.
From that perspective, if you are floating a conventional home loan
interest rate, you should not be expecting further improvements to your
actual rate in the short term. If the bond market recovery rally
continues, closing costs will improve, but on the whole, it will take a
sustained move higher in 4.00 percent MBS coupon prices for Best
Execution to dip below 4.875 percent.”

Plain and Simple: We’re going to need a sustained bond market rally to
see “Best Execution” break through the 4.875% barrier. Otherwise this is
as good as it gets.

“Best Execution” is the most efficient combination of note rate offered
and points paid at closing. This note rate is determined based on the
time it takes to recover the points you paid at closing (discount) vs.
the monthly savings of permanently buying down your mortgage rate by
0.125%. When deciding on whether or not to pay points, the borrower
must have an idea of how long they intend to keep their mortgage. For
more info, ask you originator to explain the findings of their
“breakeven analysis” on your permanent rate buydown costs.

Important Mortgage Rate Disclaimer: The “Best Execution” loan pricing
quotes shared above are generally seen as the more aggressive side of
the primary mortgage market. Loan originators will only be able to offer
these rates on conforming loan amounts to very well-qualified borrowers
who have a middle FICO score over 740 and enough equity in their home to
qualify for a refinance or a large enough savings to cover their down
payment and closing costs. If the terms of your loan trigger any
risk-based loan level pricing adjustments (LLPAs), your rate quote will
be higher. If you do not fall into the “perfect borrower” category, make
sure you ask your loan originator for an explanation of the
characteristics that make your loan more expensive. “No point” loan
doesn’t mean “no cost” loan. The best 30 year fixed conventional/FHA/VA
mortgage rates still include closing costs such as: third party fees +
title charges + transfer and recording. Don’t forget the intense fiscal
frisking that comes along with the underwriting process.

View Article:
http://www.mortgagenewsdaily.com/consumer_rates/202579.aspx
<http://www.mortgagenewsdaily.com/consumer_rates/202579.aspx#{uname=hpag
e}>

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Spread the Good News – Raleigh-Cary housing market ranks as America’s healthiest!!!

Thursday, March 10th, 2011

BY DAVID BRACKEN – Staff Writer

The Triangle, no stranger to being ranked at or near the top of various
“Best of” lists, has a new accolade: healthiest housing market.

Builder Magazine has named the Raleigh-Cary area the healthiest of the
100 largest U.S. housing markets. Durham-Chapel Hill ranked third,
behind No. 2 Austin, Texas.

While any positive housing news is welcome these days, the rankings are
likely to elicit skepticism from those struggling to sell their homes.
The Triangle has a 10-month supply of houses on the market measured by
the pace of sales during the final three months of last year.

The rankings are based on a range of factors, including home price
appreciation or depreciation, job growth, household and income growth,
unemployment rates and building permit activity.

Raleigh-Cary got the top spot even though the magazine said home prices
are expected to fall 10 percent this year “due to a spreading
foreclosure problem.”

The rankings reflect both the Triangle’s resilience during the downturn
and its outlook for growth, said Tim Minton, executive vice president of
the Home Builders Association of Raleigh-Wake County.

“Clearly our market has been able to weather the storm better than
most,” he said. “Part of it is our prices never accelerated like other
markets did so we’ve not had to recover from that part of it.”

The question now is whether the Triangle’s relative health compared to
other markets will translate into a quicker recovery.

From a builder standpoint, the healthiest markets are ones where the
issuing of new building permits is on the rise.

After falling dramatically in 2009, the Triangle saw permit activity
recover somewhat last year.

New single-family building permits increased 16 percent in Raleigh-Cary
and 14 percent in Durham-Chapel Hill markets, according to Market
Opportunity Research Enterprises, a Rocky Mount company that analyzes
residential real estate trends.

But much of that activity occurred in the first quarter as builders
moved to meet demand created by the federal homebuyer tax credits, which
expired last summer.

“The fourth quarter numbers were dismal in terms of permitting,” said
Bernard Helm, president of Market Opportunity Research. “The third
quarter was bad.”

Helm said demand for new homes is likely to remain flat until the market
deals with the excess of existing homes now on the market, including
foreclosures and other distressed properties.

“Until all this is settled out in the resale market, the new homes
market is not going to grow any substantial amount,” he said. “We’re
just going to bounce along at about this level.”

Homebuilders today are being extremely selective about where they build,
focusing on areas near job centers where there’s more proven demand.

Suddenly affordable Cary

The decline in lot prices means builders are now able to offer more
affordable homes in places such as southwestern Wake County, which
includes Morrisville, Cary and Apex.

“Before, if you wanted to buy a house that was under $250,000, you
weren’t going to look at Cary as an option,” Minton said. “Now Cary is
an option.”

Pulte Homes, for example, is building at two of its Cary developments:
Carolina Preserve, its community for people 55 and older, and the
Estates at Davis Village.

“There are signs that people are coming out to buy,” said Lawrence Lane,
Pulte’s division president for the Triangle. “If you’re in the right
location, with the right product and it’s priced appropriately there are
buyers out there.”

While the Carolina Preserve has homes over $300,000, Lane said the best
market was for homes in the $175,000 to $250,000 range.

If there’s one thing that’s likely to put a drag on any housing
recovery, it’s the labor market. The Triangle’s unemployment rate
remains above 8 percent, and many fear all the accolades it is receiving
will only make things worse.

“The great thing is we made the Top 10 list,” Minton said. “The bad
thing is every body else sees it and comes here looking for jobs.”

Best Regards,

Corey Bauer

Retail Sales Manager

Wells Fargo Home Mortgage

M5609-011

7721 Six Forks Road, Suite 116

Raleigh, NC 27615

(Office: 919-841-5305

4 Fax: 866-709-6842

8* corey.d.bauer@wellsfargo.com

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Your Home Mortgage Resource in Raleigh NC

Tuesday, October 19th, 2010

“EVERYTHING’S COMING OUR WAY…” Those words from Carlos Santana’s song come to mind following last week’s release of the Fed’s September Meeting Minutes, as well as a speech from Fed Chairman Ben Bernanke. The message was pretty clear – another round of Quantitative Easing (QE2) is coming our way! Remember that QE is the concept of the Fed becoming a buyer of Treasuries and Bonds, in a bid to keep interest rates low and therefore stimulate the economy. And while all the talk had Bonds behaving in a volatile fashion – ultimately causing home loan rates to worsen for the week overall – what was said specifically… and what does it mean?
First, let’s take a look at a few notes from the Fed Meeting Minutes: “Although participants considered it unlikely that the economy would re-enter a recession, many expressed concern that output growth, and the associated progress in reducing the level of unemployment, could be slow for some time.” Stating that “many” Fed members expressed concern likely means that more voting Fed members are onboard with the concept of more QE.
Then there was this comment, which didn’t require much reading between the lines: “Many participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate, or if inflation continued to come in below levels consistent with the FOMC’s dual mandate, it would be appropriate to provide additional monetary policy accommodation.” This is clearly telling the markets that the Fed will be stepping in with the money printing presses if the economy doesn’t pick up. And with just a few weeks remaining before the next Fed Meeting, and recent economic reports being weak at best… rest assured, more QE is coming.
And this was underscored as Fed Chairman Ben Bernanke delivered a highly anticipated speech on Friday, also making a strong case in support of more Quantitative Easing. He stated “there would appear – all else being equal – to be a case for further action” and additionally, that the “FOMC is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation over time to levels consistent with our mandate.”
OK – so it seems clear – more QE is coming. But is this a good thing?
In Bernanke’s comments on Friday, he noted that the Fed has much less experience in judging the economic effects of more QE versus their more traditional monetary policy actions – and said that this “makes it challenging to determine the appropriate quantity and pace of purchases and to communicate this policy response to the public.” True – this amount of money-printing is unprecedented… and begs the question of if more QE really makes sense. The idea is to strengthen the economy by helping make interest rates lower… but the questions remain – will it work, and what consequences may result?
QE2 is Coming, But Questions of Its Effectiveness Still Remain
Interestingly enough – one result that is likely is that the US Dollar would weaken… and is already weakening following all the talk of QE. And remember, a weaker Dollar helps make our exports more attractive to foreign buyers, due to the weakened US currency making our products less expensive to purchase by foreigners. And while the government will never say it – as the US has been accusing China of very similar tactics – this Dollar devaluation may be exactly what the government has in mind.
Think about it… the “cover story” is all on how QE will help interest rates improve – but realistically, are slightly lower rates even what is truly needed to boost consumer demand and create jobs? Rates are pretty low as they stand right now…so why do more QE? Hmm… might just be to devalue the Dollar, and boost our economy through making our exports relatively cheaper for foreign buyers. And this is not a bad thing – but we have to be aware that while QE2 might provide an initial decline for interest rates – the devaluation of the Dollar will ultimately drive rates higher.
I promise, this story is far from over – so stay tuned as it continues to unfold in the coming weeks, I will be keeping you informed.
The Martini Forecast For The Week:
This week’s economic calendar brings us new insight into the health of the manufacturing and housing sectors of the economy. We’ll start off with reports on Capacity Utilization and Industrial Production on Monday. The capacity utilization rate provides an estimate of how much factory capacity is in use. If the utilization rate climbs too high it can lead to inflationary bottlenecks in production. The Federal Reserve watches this report closely and decides how to set interest rates on the basis of whether production constraints are threatening to cause inflation.
Tuesday brings us more housing news with the latest reports on Housing Starts and Building Permits for September. That news will be followed by the release of the Fed’s Beige Book on Wednesday. The Beige Book – which is officially known as the Survey on Current Economic Conditions – contains anecdotal information on the current economic and business conditions.
Thursday we’ll see another round of Initial Jobless Claims. In last week’s report, Initial Jobless Claims rose to 462,000, which was above the 450,000 that was expected. That was a disappointment, as it seems that the economy is unable to string together a couple of solid weeks with Jobless Claims below 450,000. Finally, the week wraps up on Friday with the Philadelphia Fed Index, which is one of the most important regional manufacturing indices.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
Kevin Martini

THE KEVIN MARTINI GROUP
Your Home Mortgage Resource919.274.3700 – Kevin@KevinMartini.com - www.KevinMartini.com

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Employers in U.S. Cut More Jobs Than Forecast in September

Monday, October 11th, 2010

By Timothy R. Homan – Oct 8, 2010

The U.S. lost more jobs than forecast in September, reflecting a decline
in government payrolls that shows the damage being done by rising fiscal
deficits.

Employers cut staffing by 95,000 workers after a revised 57,000 decrease
in August, Labor Department figures in Washington showed today. The
median estimate of economists surveyed by Bloomberg News called for a
5,000 drop. The unemployment rate
unexpectedly
held at 9.6 percent.

Private payrolls that exclude government agencies climbed 64,000, less
than forecast, underscoring the concern expressed by some Federal
Reserve policy makers that the rebound from the worst recession since
the 1930s has been too slow and may require easier monetary policy.
Economists surveyed by Bloomberg project unemployment will average at
least 9 percent through 2011, which may restrain consumer spending, the
biggest part of the economy.

“The pace of this employment rebound has been quite sluggish,” Steven
Wood, president of Insight Economics LLC in Danville, California, said
before the report. “Employers are still very cautious about hiring.”

Projections of 83 economists for the unemployment rate ranged from 9.6
percent to 9.8 percent after the 9.6 percent rate reported in August.
Estimates for private payrolls ranged from no change to an increase of
110,000.

The Labor Department today also published its preliminary estimate for
the annual benchmark revisions to payrolls that will be issued in
February. They showed the economy may have lost an additional 366,000
jobs in the 12 months ended March 2010. The data currently show a 1.7
million drop in employment during that time.

Longest Since 1948

The jobless rate has equaled or exceeded 9.5 percent for 14 consecutive
months, surpassing the 13-month period from mid 1982 to mid 1983 as the
longest span of elevated joblessness since monthly records began in
1948.

The decrease in overall payrolls reflected a 77,000 decline of temporary
workers hired by the government to conduct the decennial population
count and a 49,800 drop in teaching jobs at the local government level.

The unwinding of census employment has distorted the payroll figures for
months as the government dismissed workers as the count winds down. For
that reason, economists say private payrolls, which exclude government
jobs, are a better gauge of the state of the labor market. Only about
6,000 census workers remain on the payrolls, indicating September may be
the last month the jobs data will be distorted.

Manufacturing payrolls decreased by 6,000 after declining 28,000 a month
earlier. Economists projected a 2,000 increase for September.

Service Jobs

Employment at service-providers decreased 73,000. Construction companies
subtracted 21,000 workers and retailers hired 5,700 workers.

Average hourly earnings were little changed at $19.10, today’s report
showed.

Government payrolls decreased by 159,000. State and local governments
reduced employment by 83,000, while the federal government lost 76,000
jobs.

The average work week for all workers held at 34.2 hours.

The so-called underemployment rate — which includes part- time workers
who’d prefer a full-time position and people who want work but have
given up looking — increased to 17.1 percent from 16.7 percent.

The number of temporary workers increased to 16,900 after adding 17,700
in August. Payrolls at temporary-help agencies often slows as companies
seeing a steady increase in demand take on permanent staff.

Economic Growth

The economy grew at a 1.7 percent annual pace in the second quarter
after expanding at a 3.7 percent rate in the first three months of the
year and 5 percent at the end of 2009, according to the Commerce
Department.

Fed policy makers are debating how to deploy tools for more
unconventional easing as some officials indicated action may be needed
to lower unemployment.

“Further action is likely to be warranted unless the economic outlook
evolves in a way that makes me more confident that we will see better
outcomes for both employment and inflation before too long,” New York
Fed president William Dudley said in an Oct. 1 speech, a day after Fed
Chairman Ben S. Bernanke said in a statement that the central bank has a
duty to aid the economy.

The Standard & Poor’s 500 Index surged 8.7 percent last month, making it
the biggest September gain since 1939, amid speculation the world’s
largest economy will avoid slipping back into recession and bets that
the Fed will buy more debt to support the recovery.

Obama Policies

Voters are increasingly skeptical of the Obama administration’s economic
policies heading into November elections that will determine which
political party leads Congress. Obama’s job approval over a three-day
period that ended Oct. 5 was 43 percent, compared

with 53 percent at the same time last year, according to a poll from
Princeton, New Jersey-based Gallup Inc.

While some companies are still firing employees, others are recalling
workers. American Airlines, the third largest U.S. airline, plans to
recall 545 flight attendants and 250 pilots to meet demand for
international flights as it begins it begins an alliance with British
Airways Plc and Spain’s Iberia.

Patrick Wynn

Assistant Vice President

Bradford Mortgage Company

A division of NewBridge Bank

3605 Glenwood Avenue

Suite 160

Raleigh, NC 27612

O) (919) 787-9357

F) (919) 645-0686

C) (919) 608-1217

www.raleighmortgageloans.com

Assistant Vice President

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Data Turns Rates Higher

Tuesday, September 7th, 2010

After falling for several weeks, stronger than expected economic data
caused mortgage rates to turn a little higher late this week. Upside
surprises in important labor market, housing, and manufacturing reports
were negative for mortgage markets and positive for stocks.

Following Friday morning’s better than expected Employment report,
mortgage rates moved higher. Against a consensus forecast for a decline
of 110K jobs, the economy lost 54K jobs in August. Temporary census
workers accounted for a loss of 114K jobs, and the private sector added
67K jobs. The June and July figures saw significant upward revisions as
well. The Unemployment Rate rose to 9.6% from 9.5%, matching
expectations, as the labor force grew by about 550K workers.

After several months of housing data which has failed to meet
expectations, this week’s data contained relatively good news. Investors
were expecting July Pending Home Sales to remain at June’s record low
levels, but instead they rose 5% from June. Pending sales are a leading
indicator for the housing market, so home sales may pick up a little in
coming months. The chief economist of the National Association of
Realtors (NAR) expects “improved affordability conditions” to boost home
sales, but warned that a housing market recovery will be a “long
process.”

Also Notable:

* The Core PCE inflation index rose at a low 1.4% annual rate
* As expected, the European Central Bank (ECB) made no change in
rates
* The Fed minutes showed that Fed officials were divided at the
Aug 10 meeting
* The Treasury will auction $67 billion in 3-yr, 10-yr, and 30-yr
securities next week

Week Ahead

After a busy week this week, the Economic Calendar will be very light
next week. The Fed’s Beige Book will come out on Wednesday. The Trade
Balance will be released on Thursday. There will be Treasury auctions on
Tuesday, Wednesday, and Thursday. Mortgage markets will be closed on
Monday for Labor Day…that being said, this weekend and Monday I am
available if you need – I invite you to call.

Kevin Martini

THE KEVIN MARTINI GROUP: SUNTRUST MORTGAGE

1130 Situs Court, Suite 190, Raleigh, North Carolina

919.858.0023 - Kevin@KevinMartini.com

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Weak Data Supports Lower Rates

Monday, August 30th, 2010

Generally weaker than expected economic data again pushed mortgage rates
to new lows this week. In a highly anticipated speech Friday morning,
Fed Chief Bernanke confirmed that economic growth has fallen below the
expected levels in recent months. He also suggested that the Fed is
unlikely to take further stimulus action unless the economy deteriorates
significantly. The current Fed outlook is for below average economic
growth with low inflation, which is a favorable environment for low
mortgage rates.

The impact of the homebuyer tax credit was seen in the weak housing
market data released this week. July Existing Home Sales dropped 27%
from June to an annual rate of 3.83 million units, the lowest level
since May 1995. July New Home Sales showed a decline of 12% from June to
the lowest level ever recorded. These figures sound terrible, but they
really just demonstrate the effect of the homebuyer tax credit on the
timing of purchases – that is it! The National Association of Realtors
(NAR) still expects total existing home sales this year to be roughly
the same level as last year.

Since the financial crisis, the Federal Housing Association (FHA) has
grown rapidly and is now backing nearly half of all new home-purchase
loans. To boost reserves and reduce risk to taxpayers, the FHA will
raise the annual fee it charges to new borrowers. In particular, for
case numbers ordered October 4 or later, it will raise annual insurance
premiums (MIP) to 0.90%, based on LTV, up from 0.55% – after
reflection…FHA will still be a great loan post October 4th however
today, in its current form, will provide a lower cost of borrowing to my
Clients.

Also Notable:

* The four-week average of Jobless Claims rose to the highest
level since November 2009
* Fed officials were particularly divided over the decision to buy
Treasuries at the last meeting
* The Fed’s Bullard suggested that a double-dip recession is “not
very likely at this point”
* Credit card debt dropped 4% during the second quarter to the
lowest level since 2002

Week Ahead

The biggest economic event next week will be the important Employment
report on Friday. As usual, this data on the number of jobs, the
Unemployment Rate, and wage inflation will be the most highly
anticipated economic data of the month. Early estimates are for a
decrease of about 120K jobs in August. Before the employment data,
Personal Income will be released on Monday. The Chicago PMI will be
released on Tuesday, along with the minutes from the August 10 Fed
meeting. ISM Manufacturing will come out on Wednesday. Pending Home
Sales, a leading indicator for the housing market, is scheduled for
Thursday. ISM Services, Productivity, Construction Spending, Consumer
Confidence and Factory Orders will round out the busy schedule.

Kevin Martini

THE KEVIN MARTINI GROUP: SUNTRUST MORTGAGE

1130 Situs Court, Suite 190, Raleigh, North Carolina

919.858.0023 - Kevin@KevinMartini.com

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Lender Rate Update

Tuesday, July 20th, 2010

Last week, rates got even better. Inflation remained in check, Retail
Sales were below expectations and the reading of the Fed minutes shows
growth expectations are lower than previously thought as well. The
bottom line is the economy is still obviously suffering and that will
keep rates unbelievably low.

This week has very few economic reports. There is nothing coming out
today and tomorrow will give us Housing Starts. Noting again on
Wednesday with Weekly Jobless Claims, Existing Home Sales and Leading
Economic Indicators on Thursday. That’s it. Housing Starts will give
us a peak at future economic activity. A good number may buoy consumer
confidence which ultimately helps the housing market but would be a
detriment to rates……but as low as rates are right now we can afford
some small increases. Weekly Jobless Claims are expected lower which
would also be a sign of an improving economy. That wouldn’t be rate
friendly but obviously low rates aren’t inducing people to buy homes.
Existing Home Sales rarely has much affect on mortgage rates but is
expected to be down from a dismal number reported last month. On a
positive note, many of you have reported to me that listings and
showings seem to have increased over the past couple weeks. Wake County
is now the most populous county in North Carolina which is more evidence
that our area continues to grow. Unemployment here has decreased over
the past few months. We were one of the last areas in the country to
feel the burst of the housing bubble and are poised to be one of the
first to recover as well.

Patrick Wynn

Assistant Vice President

Bradford Mortgage Company

A division of NewBridge Bank

3605 Glenwood Avenue

Suite 160

Raleigh, NC 27612

O) (919) 787-9357

F) (919) 645-0686

C) (919) 608-1217

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How do I make Staging more affordable?

Wednesday, June 23rd, 2010

If I had a dime for every time someone told me that Staging was “too
expensive” I would be so wealthy that you’d never hear from me again!
I’m here to tell you guys and gals that the investment in Staging has
come down in cost over the years, and does not have to be expensive. If
you have client motivation, creativity & a little patience, your
listings can look their best for less than you imagine! Let me get this
tidbit out of ther way before we go much further – our Staging
Consultations normally run $125 (depending on size) and are worth every
dime. So, keeping that in mind, please keep reading so you can see how
to make this investment work for you and your sellers.

Money is Scarce!

We often get agents call and say “Karen, I have a listing that REALLY
needs you but my sellers have no money – help!!”

It’s understandable that many sellers go into “thrifty” mode knowing
real estate prices are down. What everyone really needs to look at is
this: The longer a house stays on the market the more sellers spend for
mortgage and upkeep, not to mention the frustration that inevitably
follows. The big question is: Is it better to make a small investment
now to get a house looking its best, or sit on the market with a listing
that has obvious issues, hoping someone can see past them? Being a
proactive gal myself, I would rather get things in order before I went
on the market.

When we give a Staging Consultation, we are HUGE on using things that
the seller already has – we very rarely ask them to spend any money at
all and give them ways to avoid spending money to get a better look. (I
hate spending money so why would I ask someone else to?) In some cases
sellers will tell you that they have no money, partly to try to get you
to lower your commission. (You guys and gals work hard for your money
and deserve every cent!) The bottom line however is that if a house does
not sell, nobody gets paid, nobody moves on and frustrated people point
fingers. In fact, you as the agent may LOSE money marketing a house
that just isnt going to move.

Make it Affordable

Many agents I know now offer a Staging Consultation as part of their
listing package, but if that’s not in your marketing plan, here are a
few ways to make the Staging investment a little less painful for your
wallet.

#1: You and the seller simply split the cost of the consultation.

#2: You offer to pay for the Staging Consultation and have the seller
reimburse you at closing.

#3: The seller pays for the consultation up front, and you offer to
reimburse them at closing. This is a very popular choice, because then
if the house for some reason continues to linger on the market, the
seller is more likely to not switch agents because they want that
reimbursement!

Honesty Matters

I would be remiss if I didnt tell you that honestly, some houses just
aren’t going to benefit from a Staging Consultation. If you have an
extremely unmotivated seller, save your money. If your seller is
literally one step from foreclosure AND the house is in seriously poor
repair, save your money. If your seller insists on an unreasonable list
price and you know it won’t appraise, save your money until they get
realistic about the price. Call me at 919.306.1094, tell me about your
listing and I will let you know if I can help.

Thanks for Visiting Today!

Thanks for taking the time out of your busy day to “read” with me. You
can visit us at www.ChampagneStaging.com

07fIVyGyEYk7HRR2kyuuBZJeDCOQHxTIvEX0_pQ1229qYpZesFBUrCmMa5XYrEFCJ4tWf8nx
IzADrZF9EwsILx7dpzF7PyhJMRTrruwNqUAivauM> for more photos, information
and pricing. With over 5 years experience in Staging and photographing
real estate, we are here to help make your job easier!

Have a Great Day!

Karen Reynolds, ASP

Champagne Staging & Real Estate Photography

919.306.1094

www.ChampagneStaging.com

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Buying a House in Raleigh: Credit, How to Get and Keep a Great Score

Tuesday, August 25th, 2009

by Don Davidson

Borrowing money today requires impressing an increasingly hard-to-please crowd. With creditors of all kinds more cautious than ever, you need an A+ application to land the best terms — and that means an A+ credit score, the number lenders use to judge your risk of default.

The most commonly used credit scoring system, called FICO, rates people from a very risky 300 to a pristine 850. And right now we’re in the middle of a credit score crunch: “You need a 750 or better today to have the same treatment you got with a 700 two years ago,” says John Ulzheimer, president of consumer education at Credit.com.

John D’Onofrio, CEO of Autoloandaily.com, seconds that: “Two years ago a 680 was enough to get a great car loan rate. Today it’s often the minimum to qualify at all.”

Think you’re still in the clear? Don’t be so sure. Lenders have been making changes that could cause your score to slip from excellent to average. Improve and protect your number with these strategies:

Learn your score. You have three FICO scores, based on your credit reports at the three credit bureaus: Experian, Equifax, and TransUnion. The numbers tend to be in the same ballpark, so pony up $16 to get one representative score at myfico.com. You can get an estimate free at Creditkarma.com. But the FICO score gives you a better sense of what lenders see.

Scout for mistakes. Your scores are only as good as the information they’re based on. And a third of people who’ve pulled their reports have found errors, according to a Zogby poll. That’s good reason to read your report.

When you buy your FICO score, you’ll get a copy of the report it was based on. Get gratis histories from the other bureaus via annualcreditreport.com (you’re entitled to one free from each bureau every 12 months).

Spot an error? Request a correction, following the instructions on the bureau’s website. Let’s say the size of a credit line was misstated or an account was mistakenly marked delinquent. Getting the error fixed could raise your score as much as 200 points, says Ulzheimer, who has also worked for Equifax and FICO.

Never, ever be late. As you’ll see in the pie chart on the right, the biggest chunk of your credit score comes from your payment history. Just one late payment can shave 100 points off a 750-plus credit score, says Ulzheimer. Lenders can’t tattle on you to the bureaus until you’re 30 days past due, adds credit expert Gerri Detweiler. But don’t risk it. For all your bills, enter recurring due-date reminders on your computer calendar.

Missed a payment? Get back on track within the next 30 days, and you should “get back the lion’s share” of points lost, Ulzheimer says. More than 90 days late? The damage can stick for years. If it was a one-off lapse, call your issuer and plea for a good-will adjustment to your credit report. (It’s a long shot.)

Remember the magic 20%. The second-biggest factor in your score is how much you owe vs. how much credit has been extended to you. The part of this that’s easiest to finesse is your credit card utilization rate, or your total card balances compared with your total credit limits, as well as each card’s balance relative to its limit.

Example: If you’ve charged $5,000 on cards and have $50,000 in credit, your rate is 10%. For the best score today, 10% is ideal, but you can probably creep up to 20% and keep a high rating.

Unfortunately, with banks lowering credit limits and canceling unused cards, it’s harder to maintain such a low percentage. In the previous example, if your available credit is cut to $20,000, your rate shoots to 25%. That could sink your score by as much as 50 points, says Ulzheimer. The lesson: Know your limits, watch for changes, and stay under 20% on each card and in total (0% if you’ll be applying for a loan soon).

Already above 20%? Paying down debt is the obvious way to lower your utilization rate, but another strategy is to apply for an additional credit card to increase your overall credit limit. That may cause you to lose a few points in the short term — so don’t do it if you’re about to apply for a mortgage — but it should pay off in the long run.

Keep oldest cards in play. As noted, credit issuers these days are eagerly canceling cards that are not in use. Besides reducing your limit and increasing your utilization ratio, having an account closed can hurt you in another way, especially if it’s among your older ones.

See, 15% of your score rides on the length of your credit history. The longer you ably manage revolving debt, the better you look. So don’t cancel your oldest cards. And don’t let them get canceled on you: Move a recurring charge to each so they stay active.

Already ditched or been ditched? A new card (see previous) can help with your utilization rate, but there’s little you can do to help the “history” component of your score, except to keep other old accounts in use.

Accept fate on the rest. There are other factors involved in your score, but they’re not so easy to manipulate. For example, 10% is based on how well you manage a mix of credit types, such as mortgages, car loans, and credit cards. But you don’t want to go out and, say, finance a car just for a score boost; besides, you can easily get 750-plus with just a few well-tended credit cards.

Along the same lines, 10% is based on “new credit,” but the effects of a new application can be positive or negative, depending on your history.

In other words, if you want to be among the crème de la credit crème, accept what you can’t change, and focus on what you can.

Don Davidson

Sr. Mortgage Consultant

FM Lending Services, LLC.

5925 Falls of Neuse Rd.
Raleigh, NC 27609

Office: (919) 747-5947

Cellular: (919) 345-8235

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