Hamilton, MA

Newsletter-August 10th, 2009 Provided by Dana & Robin Bain Dana Bain Premiere Mortgage Services 11 Malvern Hill Road Sterling, MA 01564 Phone: (978) 422-2311 Fax: (978) 422-2313 E-Mail: dana@bainmortgage.com Market Comment Mortgage bond prices fell last week pushing mortgage interest rates higher. Stronger than expected data and positive stock movements pressured rates. The Institute for Supply Management (ISM), factory orders, weekly jobless claims, and employment report all came in stronger than expected. The personal income and outlays data was the only release that was even near expectations. Signs of recovery in the economy with continued record debt had many traders concerned about inflation implications. Inflation erodes the value of fixed income securities. For the week interest rates rose by about 2 full discount points. The record debt auctions will continue to pressure mortgage interest rates. If foreign demand does not falter then mortgage interest rates will likely stay neutral or improve. However, weak foreign demand would likely have the opposite effect. LOOKING AHEAD Economic Indicator Release Date & Time Consensus Estimate Analysis Preliminary Q2 Productivity Tuesday, Aug. 11, 8:30 am, et Up 4.9% Important. A measure of output per hour. Improvement may lead to lower mortgage rates. 3-year Treasury Note Auction Tuesday, Aug. 11, 1:30 pm, et None Important. $37 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. Trade Data Wednesday, Aug. 12, 8:30 am, et $28.5 billion deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates. 10-year Treasury Note Auction Wednesday, Aug. 12, 1:30 pm, et None Important. $23 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. Fed Meeting Adjourns Wednesday, Aug. 12, 2:15 pm, et No change Important. Few expect the Fed to change rates, but some volatility may surround the adjournment of this meeting. Retail Sales Thursday, Aug. 13, 8:30 am, et Up 0.3% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates. 30-year Treasury Bond Auction Thursday, Aug. 13, 1:30 pm, et None Important. $15 billion of bonds will be auctioned. Strong demand may lead to lower mortgage rates. Consumer Price Index Friday, Aug. 14, 8:30 am, et Unchanged, Core up 0.2% Important. A measure of inflation at the consumer level. Lower figures may lead to lower rates. Industrial Production Friday, Aug. 14, 9:15 am, et 68.1% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates. Capacity Utilization Friday, Aug. 14, 9:15 am, et Up 0.1% Important. A figure above 85% is viewed as inflationary. Weakness may lead to lower rates. Employment Surprise The employment report is generally the most important data released each month. Last week’s employment report shocked analysts and the market when all three components came in better than expected. Unemployment came in @ 9.4%, stronger than the expected 9.6% mark. Non-farm payrolls fell 247k, not as weak as the expected 320k decline. Average hourly earnings rose 0.2%, stronger than the expected 0.1% increase. Unfortunately mortgage interest rates got worse by over 1/2 a discount point instantly following the release. Be cautious here as economic uncertainty continues. As we saw last week, lower rates are not a given. MORTGAGE MARKET IN REVIEW Newsletter-August 10th, 2009 Today's Rates: Mtg Loan Rate APR 30-yr Fixed 5.22% 5.39% 15-yr Fixed 4.63% 4.87% 1-yr Adj 4.78% 5.93% * national averages Real Estate News from Forbes.com: America's Best And Worst Housing Markets Big Sky Buys Forbes Luxury Housing Index More news... These articles are property of Forbes.com and protected by copyright. -------------------------------------------------------------------------------- Mortgage Calculator: Sales Price: $ Down: % Interest Rate: % Term: yrs Monthly payment: $ Massachusetts License Number MB1205 Licensed by the New Hampshire Banking Department- License Number 5430-MBR Privacy Policy PREMIERE MORTGAGE SERVICES INC. 11 Malvern Hill Rd Sterling, MA 01564-2829 Phone: 978-422-2311 Toll Free Phone: 1-800-480-0545 Fax: 978-422-2313 E-mail: Dana@BainMortgage.com Contact Us | Home | Loan App Checklist | Loan Application | The Loan Process | When to get Qualified | Loan Application Info | What is a credit score? | Rate Lock Periods | Mortgage Calculators | Rate Sheet | Customer Login | Daily Rate Lock Advisory | My Blog Copyright © 2009 PREMIERE MORTGAGE SERVICES INC. Portions Copyright © 2009 a la mode, inc.

It is time to put an end to the Proposition 2 1/2 overrides in Hamilton and Wenham, Massachusetts. When Prop 2 1/2 was enacted in 1980 it had provisions to allow towns to pass overrides, but those overrides were intended for emergency purposes. Overrides were not intended to be used to subsidize school funding on an annual basis as has become the norm in our two towns. If override supporters in Hamilton and Wenham believe that "emergencies" have existed in our towns for 10 out of the past 11 years, then the answer lies with a broken system that obviously has not and can not be fixed by simply throwing more money at it.

Here's a little something that unfortunately many of our citizens do not realize: Each override is not one-time cost event. Each override is added to the basis of our tax cost and continues in effect year, after year after year. So we will be paying for last year's $1.8 mil override amount again this year and again in 2010 and 2011 and so on. We have been paying the $660k override passed in 1999 each year for 9 years now! That override alone has cost the taxpayers over $7 million.

And here's a FACT about ALL the overrides we have had to pay since 1998: The individual override amounts add up to $7,707,000. But hang on to your seats (and your wallets!) because compounded over the years, with the 2 1/2 % standard annual increase, and the real cost of those overrides has been whooping $39,518,000! Let me repeat that: $39,518,000!

If our national economy's meltdown has taught us anything, it's that we can not, and should not support a system that does not work. $39 million has not fixed the so-called "emergencies" in Hamilton and Wenham and another override certainly will not either. And did you know that we are the ONLY two towns in the Commonwealth with this kind of outrageous history of overrides? Just last year, out of 356 towns and cities in MA, only 102 sought override attempts...and two-thirds of those were rejected.

Residents must stop the override addiction in our two towns this year... By just saying NO! $39 million is enough! Help make a difference in 2009. Start on the local level.

Thank you,

Jay Burnham
Hamilton, MA

The absorption rate is the rate of sale per month stated as a percentage.
For Example, if the absorption rate is 8%, then 8 out of 100 properties for sale sold that month.

This report shows the underlying strength of the market by comparing the percentage of "For Sale Properties" that sold in the prior
period to the current period. This report detects imbalances between the supply and demand for real estate.

The absorption rate is affected by the: number of units that sold and the number of units for sale.

If the absorption rate is rising, the market demand for real estate is improving and if it is falling, the market demand is
deteriorating. Source IMAX Web Solutions, RE/MAX Advantage. MLS listed properties only. Note DOM = Days On Market

February 2008
Price Range		Sold			For Sale			Absorption Rate
		Units	Median Price	DOM	Units	Median Price	DOM	Units Sold / Units For Sale
$200,000 - $249,999		0	$0	0	2	$229,000	29	0.0%
$300,000 - $349,999		0	$0	0	5	$349,900	88	0.0%
$350,000 - $399,999		0	$0	0	6	$389,900	153	0.0%
$400,000 - $449,999		0	$0	0	4	$425,000	58	0.0%
$450,000 - $499,999		0	$0	0	5	$479,000	72	0.0%
$500,000 - $599,999		1	$585,000	182	8	$560,000	103	12.5%
$600,000 - $699,999		0	$0	0	6	$629,000	216	0.0%
$700,000 - $799,999		0	$0	0	2	$750,000	92	0.0%
$800,000 - $899,999		0	$0	0	7	$890,000	180	0.0%
$900,000 - $999,999		0	$0	0	1	$999,000	307	0.0%
$1,000,000 - $1,499,999		0	$0	0	2	$1,300,000	67	0.0%
$1,500,000 - $1,999,999		0	$0	0	5	$1,895,000	235	0.0%
$2,000,000 - $2,499,999		0	$0	0	1	$2,100,000	167	0.0%
$2,500,000 - $2,999,999		0	$0	0	2	$2,750,000	341	0.0%
$3,000,000 - $3,499,999		0	$0	0	1	$3,300,000	152	0.0%
$7,000,000 - $7,999,999		0	$0	0	1	$7,600,000	170	0.0%
Price Range Average:		0		11	4		152
Price Range Median:			$585,000			$585,000
Price Range Total:		1			58			1.7