Panama City Beach, FL

Mortgage rates continue to hover near record lows with the rate on the benchmark thirty year flirting with 4.875% this week. The rate on the fifteen year fixed rate has dipped below 4.50% coming in at 4.375%. Thirty year rates on most government loan programs including FHA. VA and Rural Development have eased to 5%. Rates were helped this week after Federal Reserve Chairman Ben Bernanke gave a speech on Monday in which he cited “economic headwinds” as rationale for keeping rates low for the foreseeable future. Low interest rates helped keep the value of the dollar low against other major currencies and driven the price of gold to record highs in recent weeks as investors look for a safe alternative to the U.S. currency.

On Wednesday the Commerce Department reported that permits for new home construction tumbled 10.7% in October to their lowest level in six months to an annual rate of 529,000. The October housing starts were also 30.7% below the October 2008 figures. The numbers were also well below economist’s forecast that had expected housing starts to com in at 600,000 for the month. This was the second month in a row where housing starts did not meet analysts’ expectations.

On a brighter note, the National Association of Realtors reported last Friday that nearly half of all homes now being sold are to first-time homebuyers. NAR said that 47% of all new homes being sold are to first-timers. This is up from 41% in 2008 and up a whopping 11% since 2006. Most industry experts credit low home prices, low interest rates and the first-time homebuyer tax credit. That credit was extended last week through June 2010.

November 5, 2009

Making your mark on this world is hard. If it were easy everybody would do it. But it's not. It takes patience, it takes commitment, and it comes with plenty of failure along the way. The real test is not whether you avoid this failure, because you won't. It's whether you let it harden or shame you into inaction, or whether you learn from it; whether you choose to persevere.

~ Barack Obama

Rates are still low and home prices are affordable. Please give me a call so we can start your new home search today!

Lynn is a licensed Realtor in Florida and Georgia.

The National Association of Realtors reported on Monday that the September Pending Home Sales Index jumped 6.1% t0 110.1 after a 6.4% rise in August. The big rise far surpassed analysts’ expectations who anticipated a more modest rise of 1.2%. Most economists contributed the large increase to the estimated 200,000 to 400,000 first-time homebuyers rushing to take advantage of the $8,000 tax credit set to expire on November 30^th. To that end, many analysts are anticipating a drop in pending home sales after November 30^th. The NAR report helped offset a Commerce Department report last Thursday that showed new home sales fell unexpectedly on September after rising for five straight months. Commerce said new home sales fell 3.6% in September to a seasonally adjusted annual rate of 402,000. It was the first decline since March. Ironically, the drop was also attributed in part to the expiring first-time buyer credit. Go figure.

Mortgage rates for thirty year conventional loans have remained defiantly in the 5.125% to 5.25% range for several weeks now despite increased volatility in the bond and stock markets. Bond traders are betting that rates will remain low for some time to come while stock traders are increasingly unsure about the sustainability of the 2009 rally. Mixed economic reports coupled with the possibility of a jobless recovery have helped keep investor optimism in check to an extent. We could get some direction on interest rates this week when the Federal Reserve’s Open Market Committee concludes their two day meeting on monetary policy. Most expect the Fed will leave rates unchanged but they could signal future increases in their adjournment remarks on Wednesday.

The Federal Reserve is now nearing the end of its $1.25 trillion buyback of mortgage-backed securities having already purchased $977 billion since the program began earlier this year. As I have stated in past articles, this program has been largely responsible for keeping mortgage rates so low for so long. With only twenty two weeks and $273 billion to go, we may begin to see long term rates begin to edge up in the coming months as the huge demand created by the program tapers off. Stay tuned.

Quote for October 30, 2009

People who consider themselves victims of their circumstances will always remain victims unless they develop a greater vision for their lives.

~ Stedman Graham

Quote for October 31, 2009

Success demands singleness of purpose.

~ Vince Lombardi

Rates are still low and home prices are affordable. Please give me a call so we can start your new home search today!

Millionaire Real Estate Agent business planning clinic coming to Panama City Florida on December 1 and 2, at the Bay County Association of Realtors.

This 2 day clinic will help real estate agents complete a business plan based on The Millionaire Real Estate Agent and the Shift books by covering the 4 models of the MREA.... Gene Rivers will be the instructor, if you have never met Gene or been to one of his classes, you NEED to attend this clinic.

Send me an email with questions or RSVP to LynnBoyd@KW.com.

Lynn is a licensed Realtor in Florida and Georgia.