Bryce Sabol & The Sabol Associates Team

The Institute for Supply Management reported the monthly index of manufacturing activity rose to 55.7 in October from 52.6 in September. It was the highest reading since April 2006 and well above the economic forecast of 53. A reading above 50 signals expansion.

The Commerce Department reported total construction spending rose 0.8% in September. Economists had expected a decrease of 0.2%. Private residential activity rose 3.9%, posting its best showing since July 2003.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 6.1% to 110.1 in September, following a 6.4% increase in August. It was the eighth consecutive monthly increase and the highest reading since December 2006.

The Commerce Department reported factory orders rose 0.9% in September. The report reflected increased demand for both durable goods and non-durable goods. Bookings for heavy machinery jumped 7.9%, the largest gain since March 2008.

The U.S. non-manufacturing sector grew for a second consecutive month in October. The Institute for Supply Management reported the monthly index of non-manufacturing activity was 50.6 in October, slightly down from 50.9 in September. A reading above 50 signals expansion.

The Labor Department said that productivity jumped at an annual rate of 9.5% in the third quarter of 2009. The increase was the biggest quarterly gain since a 9.7% increase in the third quarter of 2003.

Initial claims for unemployment benefits fell by 20,000 to 512,000 in the week ending October 31. The figure was lower than the 523,000 that economists had forecast. Continuing claims for the week ending October 24 fell by 68,000 to 5.75 million.

Upcoming on the economic calendar are reports on international trade and consumer sentiment on November 13.

Hope everyone finds some of this info useful or interesting. Have a great week!

Sincerely,

Bryce Sabol
Sabol Associates Team
Keller Williams Realty North Central

978-401-5045 mobile
978-293-1750 fax

Bryce@kw.com email
Sabolbry AOL IM screen name

http://www.BryceSabol.com
http://www.GayleSabol.com

Senators Agree to Extend Homebuyer Tax Credit Legislation Pending Approval From Congress

Senators have agreed to extend the $8,000 first-time homebuyer tax credit originally set to expire on November 30. Once the Senate officially votes on the bill it will move to the House of Representatives, which strongly supports the extension. The Obama administration has also signaled its strong support for an extension of the tax credit.

Aside from the first-time homebuyer credit, the new plan would offer a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The tax credits would be available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close on their new homes.

There is an $800,000 price limit on all homes eligible for the credit. The income limits for all buyers would rise to $125,000 per year for individuals and $225,000 for married couples. Under the current program, the limits are $75,000 and $150,000 respectively. The first-time homebuyer credit is also available to those who have not owned a home in the previous three years. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.

According to the Treasury Department, more than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the first-time homebuyer tax credit. Please be advised that this legislation has not yet passed, but I will be sure to keep you informed as it moves through Congress toward approval. I’m committed to meeting your home financing needs. Call me if you have any questions, or if you would like to get started on a loan application today!

Hello Everyone,

As of 2:15 yesterday, March 18th, rates are FANTASTIC. We've hit another refi boom and it will benefit buyers and sellers as well. This means 3 things:

1) Rates are low again so if you didn't refi in early January when they got low for a few days, now is the time. Don't get caught trying to time the bottom again. The bottom can disappear fast.

2) Rates are so low right now that it is an even better time to buy AND to sell. Talk to your sellers to about a price reduction, if necessary, to get interest back in their house. What they'll lose from a lower sales price, they'll make up for on the rate for their next loan as long as they take advantage while rates are down. Since rates are so great, get those buyers off the fence.

3) Watch the lenders your buyers are using and be careful of the timing of your future closings. Finding that internet lender promising the lowest rate is always a bad idea but right now it's dangerous. We all know they never deliver on those rates in the end and more importantly, they are going to be so inundated with calls for refinances that their turn times will be outrageous. Focus on lenders you know and trust and work with dates that are realistic. As a lender whose primary focus is purchase activity, the purchase loan always comes first at Prospect. We love refinances, but our business model is built around purchase loans so we make sure our deadlines are met and our loans get closed. So, what happened at 2:15 today? The Fed meeting announcement was made. Everyone figured that they'd keep the Federeal Funds rate in the same 0 - 0.25% range and they did. There was hope that the Fed would extend their buying of MBS (Mortgage Backed Securities). A while back, they committed to buy $500 billion in Mortgage Backed Securities between January and June to help a) drive rates down and b) keep rates down. It drove them down but then they popped back up a little - still very good but not the bottom. We were hoping they'd buy some more MBS and extend how long they'd keep buying. Next, in recent meetings the Fed has said they stood at the ready to buy long term Treasuries IF the need arose. Again, we hoped they might say the need arose and they'd buy Treasuries because if they buy treasuries then that drives the yield down and mortgage backed securities would likely follow that trend, bringing mortgage rates down. Either one of these would have helped the market. WELL, THE FED DELIVERED A DOUBLE WHAMMY. They said they'd buy an additional $750 billion on Mortgage Backed Securities and do it for the rest of the year. That more than doubles their original commitment. But they didn't leave it there. They also decided to commit to purchasing $300 billion in longer term Treasuries over the next 6 months. This double whammy gave the 10 year treasury the largest 1 day decline in yield in over 50 years. Mortgage Backed Securites dropped significantly in yield as well. This is GREAT NEWS for mortgage rates.

Now, how long will it last? No one knows. Just because they'll be buying through the end of the year doesn't mean rates will continue to drop. Following their announcement in January, rates were fantastic for less than 3 days. We have great rates now. They are better than they've been in decades. Take advantage while they're low. Don't get greedy waiting for them to drop another 1/8%.

If you're interested in qualifying for a mortgage you can fill out a simple 2 minute online application @ http://www.DavidProspect.com.

If you would like to see what homes are for sale in the Massachusetts area you can search the MLS by signing up on my website @ http://www.BryceSabol.com Are you interested in Selling? Contact me and I can help you also!

Sincerely,

Bryce Sabol
Sabol Associates Team
Keller Williams Realty North Central

978-413-8684 mobile
978-293-1750 fax

Bryce@kw.com email
Sabolbry AOL IM screen name

http://www.BryceSabol.com
http://www.BryceSabol.net

When showing your clients a home that needs repair, give them some information on our Federal Housing Administration (FHA) 203(k) renovation loans. These loans are perfect for a bargain hunter who has spotted a fixer-upper or a foreclosure in need of immediate repair, or a client who has found a home that would be ideal if only there were a third bedroom and a second bathroom.

Our renovation loans provide the money to both purchase the home and finance the home's renovation. With one loan, there is only one application, one set of fees, one closing and one monthly payment. At closing, the house is paid for, and the repair money is put into a special account for disbursement as repairs are completed. Improvements can include anything that adds value to the home, such as a room addition, new carpeting, landscaping, plumbing, roofing or a new kitchen. The loan can also be used for energy-efficiency improvements that qualify for tax credits* under the new stimulus package.

Another great advantage of a renovation loan is that it provides borrowers a loan based on the increased property value after renovation. But that's not the only financial upside. The required down payment on a renovation loan can be as low as 3.5%. As a tax deductible first mortgage, the renovation loan will usually feature a lower interest rate than a second mortgage and improvement costs can be spread over the term of the loan. This can prove a bargain because many buyers finance improvements with more expensive consumer credit. Also, the loan can provide financing for up to six months of mortgage payments if the house is not occupied during construction.

Just knowing about our renovation loans may make the vital difference to motivate buyers to purchase.

Apply online for a loan by filling out the 2 minute loan application @ http://www.DavidProspect.com

Sincerely,

Bryce Sabol
Sabol Associates Team
Keller Williams North Central

Email: Bryce@KW.com
Direct: 978-413-8684
Fax: 978-293-1750
http://www.BryceSabol.com -- http://www.BryceSabol.net

Come by and visit our lovely 360 unit condominium complex on 100 acres of rolling hills. Located close to Rts. 495, 117, 190, 70, 62, and 140 you'll have to come see eveything Ridgefield condominiums has to offer. Sabol Associates Team of Keller Williams N. Central would be happy to show you all of our condos for sale. Stop by any Sunday between 1pm-4pm and see what luxurious condo living is all about. If you would like any other information, please visit http://www.GayleSabol.com or contact me personally @ 978-413-8684. Thank you and hope to see you out there.

Sincerely,

Bryce Sabol
Sabol Associates Team
Keller Williams North Central

mail: Bryce@KW.com
direct: 978-413-8684
fax: 978-293-1750
http://www.BryceSabol.com -- http://www.BryceSabol.net