Sean Murphy

Click this link for VA approved condos

http://condopudbuilder.vba.va.gov/2.2/frames.html

Click this link for FHA approved condos

https://entp.hud.gov/idapp/html/condlook.cfm

Interest-rate movements are based on the simple concept of supply and demand. If the demand for credit (loans) increases, so do interest rates. This is because there are more buyers, so sellers can command a better price, i.e. higher rates. If the demand for credit reduces, then so do interest rates. This is because there are more sellers than buyers, so buyers can command a lower better price, i.e. lower rates. When the economy is expanding there is a higher demand for credit, so rates move higher, whereas when the economy is slowing the demand for credit decreases and so do interest rates.

This leads to a fundamental concept:

• Bad news (a slowing economy) is good news for interest rates (lower rates).
• Good news (a growing economy) is bad news for interest rates (higher rates).

A major factor driving interest rates is inflation. Higher inflation is associated with a growing economy. When the economy grows too strongly, the Federal Reserve increases interest rates to slow the economy down and reduce inflation. Inflation results from prices of goods and services increasing. When the economy is strong, there is more demand for goods and services, so the producers of those goods and services can increase prices. A strong economy therefore results in higher real-estate prices, higher rents on apartments and higher mortgage rates.

Mortgage rates tend to move in the same direction as interest rates. However, actual mortgage rates are also based on supply and demand for mortgages. The supply/demand equation for mortgage rates may be different from the supply/demand equation for interest rates. This might sometimes result in mortgage rates moving differently from other rates. For example, one lender may be forced to close additional mortgages to meet a commitment they have made. This results in them offering lower rates even though interest rates may have moved up!

There is an inverse relationship between bond prices and bond rates. This can be confusing. When bond prices move up, interest rates move down and vice versa. This is because bonds tend to have a fixed price at maturity.

WEDNESDAY AFTERNOON UPDATE:

This week's FOMC meeting has adjourned with an announcement of a half-point rate cut by the Fed in an effort to stimulate economic activity. The move was widely expected by market participants, but has still boosted stocks and hurt bonds. The Dow is currently up 218 points while the Nasdaq has gained 44 points. The bond market is currently down 17/32, which will likely push this afternoon's mortgage rates higher by approximately .250 of a discount point.

The post-meeting statement indicated that the Fed was still concerned about the economy and was expecting further weakness. This led to speculation that the Fed may lower short-term rates again in the future despite the fact that the Federal Funds rate is now at a record low of 1.00%. It has not been this low since June 2003 to June 2004. The fact that it appears the Fed has conceded more measures may be needed and is ready to act has helped drive stock prices higher during afternoon trading. This has made bonds less attractive to investors and is the reason we likely will see upward revisions to mortgage rates this afternoon.

The Commerce Department reported this morning that Durable Goods Orders for September rose 0.8% when they were expected to fall 1.0%. This means that manufacturing activity was stronger than expected, which is bad news for bonds and mortgage rates.

Tomorrow morning brings us the release of the preliminary reading of the 3rd Quarter Gross Domestic Product (GDP). The GDP is considered to be the benchmark measurement of economic growth because it is the sum of all goods and services produced in the U.S. and therefore is likely to have a major impact on the financial markets and mortgage pricing. There are three versions of this report, each a month apart. Tomorrow's release is the first and usually has the biggest impact on the markets. Current forecasts call for a decline of approximately 0.5% in the GDP. If this report shows a larger decline, I am expecting to see the bond market rally and mortgage rates to fall tomorrow.

The Mississippi Development Authority will begin the second round of the Small Rental Assistance Program next week with a series of workshops for property owners who are considering applying for a forgivable loan to help build or rehabilitate Coast rental properties.

The 16 workshops begin Monday in Biloxi and will continue through Oct. 30 at various locations in Biloxi, Gulfport, Gautier, Poplarville, Saucier, Long Beach, Picayune, Pascagoula and Bay St. Louis.

"We've worked to make Round 2 of the Small Rental program much simpler for applicants to understand and navigate through the application process," said Jon Mabry, Chief Operations Officer for MDA's Disaster Recovery Division. "There will be a special emphasis on prioritizing those applications that help rebuild affordable housing in neighborhoods hardest hit by Hurricane Katrina."

The Small Rental Assistance Program applies to properties in Harrison, Hancock, Jackson and Pearl River counties to provide loans of up to $40,000 per unit, provided the owner rents the property to low- and moderate-income tenants at least five years.

Applicants with properties in existing neighborhoods, or "infill," are especially encouraged to apply.

"Restoring communities and giving them the tools needed to recover and prosper is really the overriding goal of Mississippi's hurricane recovery effort," said SRAP Program Manager Nell Rogers. "We're targeting SRAP dollars toward rejuvenating existing neighborhoods and helping people stay in familiar areas and long-standing communities where they feel most at home."

Each workshop will be managed by MDA personnel who can help applicants determine if the SRAP program is right for their property.

"Even though we're targeting infill, we encourage everyone who thinks they might qualify to attend a workshop," Mabry said. "We want as many applicants as possible, and our staff will gladly explore all ways in which SRAP can be applied toward establishing more affordable rental stock along the Coast."

An SRAP guidebook is posted on MDA's Web site: www.mississippi.org, click on "disaster recovery."

An online application form will be posted on MDA's Web site October 15.

SRAP workshops
Here is a schedule of SRAP workshops that will be held from Oct. 13 to Oct. 30 in South Mississippi:

Mon, Oct. 13, 6 p.m. to 8 p.m. Beau Rivage Main Theater, 875 Beach Road, Biloxi;

Tue, Oct. 14, 6 p.m. to 8 p.m. Mississippi Power Bldg., Hwy. 90, 30th Ave, Gulfport;

Wed, Oct. 15, 6 p.m. to 8 p.m. West Harrison Community Ctr., 4670 Espy Ave. Long Beach;

Thu, Oct.16, 6 p.m. to 8 p.m. Donal Snyder Community Ctr., 2520 Pass Road, Biloxi;

Tue, Oct. 21, 10 a.m. to Noon, Harrison Cty. Library, 2141 Popps Ferry Road, Biloxi;

Wed, Oct. 22, 6 p.m. to 8 p.m. St. Martin Community Ctr., 15008 Lemoyne Blvd., Biloxi;

Thu, Oct. 23, 6 p.m. to 8 p.m. MGCCC Jeff Davis Campus, Bldg. D, 2226 Switzer Rd., Gulfport;

Fri, Oct. 24, 10 a.m. to Noon, American Legion Post 139, 703 Green Meadow Rd., Bay St.Louis;

Sat, Oct. 25, 10 a.m. to Noon, MGCCC Jackson Cty. Campus, Fine Arts Aud., 2300 Hwy. 90, Gautier;

Mon, Oct. 27, 6 p.m. to 8 p.m., Pearl River CC Cafeteria, 101 Hwy. 11 N, Poplarville;

Tue, Oct. 28, 10 a.m. to Noon, Picayune City Council Chambers, 815 N Beach St., Picayune;

Tue, Oct. 28, 6 p.m. to 8 p.m., Our Lady of

the Gulf Community Ctr, 228 S Beach Blvd., Bay St. Louis;

Wed, Oct. 29, 10 a.m. to Noon, Woolmarket Community Ctr., 16320 Woolmarket Rd., Biloxi;

Wed, Oct. 29, 6 p.m. to 8 p.m., Saucier Community Ctr., City Hall, 24014 Church Ave., Saucier;

Thu, Oct. 30, 10 a.m. to Noon, B.E. McGinty Ctr., Jackson Co. Fairgrounds, 2902 Shortcut Rd. Pascagoula;

Thu, Oct. 30, 6 p.m. to 8 p.m., VFW, Orange Grove, 15206 Dedeaux Rd., Gulfport.

Gulfport Grant Will Provide Down Payment Assistance For Home Buyers

Gulfport Launches HOMELINE Program - offering $50,000 for Down Payment Assistance

A GREAT opportunity that is limited to as many as 165 low and moderate income buyers!!

Beginning October 1st, you can pick up your HOMELINE application at Trailer E-2 near City Hall. Part of the application process will be to obtain your homeloan financing. We will be able to provide you with guidance in regards to the rules and guidelines.

Call Sunny Mortgage Group and ask for Sean Murphy today to get pre-approved. 228-861-5081.

GULFPORT, MS (WLOX) - Another incentive is about to become available to help the area's workforce become homeowners. On October 1, Gulfport will launch a program it calls Homeline.

Homeline is funded by a nine million dollar community development block grant. Here's how it works. As many as 165 low and moderate income Gulfport residents who qualify for the program will receive $50,000 in down payment assistance to buy a home.

Word of that program kept Diane Ragas quite busy. "Good afternoon. Community Development. Diane speaking. May I help you?" she said time after time as people kept calling Gulfport Community Development office for details about Homeline.

"It's thrilling," Carey Bundt said. Bundt is the community development programs director for the city. "It is thrilling that a municipality can offer this can offer this kind of dream program."

Homeline is for people who do not own a home.

"With the cost of insurance, with the cost of housing, how it's gone up, you have to have a greater down payment assistance to make that affordable," Bundt said. "When this came about with MDA, we found out about the first round, Karen (McCarty) and I decided lets go for it."

It turned out Gulfport was the only south Mississippi city to apply and receive round one of this CDBG workforce housing grant.

"Yes. Yes," Bundt said, with a big smile on her face. "I thought we'd get it."

Consequently, as many as 165 of its low and moderate income residents are about to become eligible for a $50,000 down payment assistance grant to put toward a home purchase. That's why the phone keeps ringing.

"They can hardly believe such a program exists," Bundt said.

However, it only exists if you meet the program's financial limitations. For instance, if you live alone, your total adjusted gross income must be less than $27,450. If you're part of a couple, your adjusted income must be less than $31,350. A family of four also qualifies for this down payment assistance grant if its total adjusted gross income is less than $39,200.

"This is an opportunity that may never come again," Bundt thought.

In a news release announcing the Homeline program, Mayor Brent Warr reiterated the importance of what Gulfport is about to offer its citizens.

"The CDBG funds will provide long-awaited and greatly deserved workforce housing opportunities for low and moderate income citizens," the mayor wrote. "I encourage residents to take advantage of this program and fill out an application. The process is simple, and we are here to help."

According to the guidelines, a home purchased through Gulfport's Homeline program must have been built after 1980. And it must be in good condition. The house can cost no more than $180,000.

It turns out that's nearly the average price of a south Mississippi home. The Mississippi Gulf Coast Multiple Listing Service did a statistical analysis of the realty market in Harrison, Hancock, Jackson, George and Greene Counties. When 2007 ended, the average price for a home was $166,497.

Gulfport has two years to use the nine million dollar grant.

Beginning October 1st, Homeline applications will be available for pick-up at the City of Gulfport Community Development Department, 2309 15th Street, Gulfport. For more information, call (228) 868-5736 or (228) 868-5862, or email communitydevelopment@gulfport-ms.gov.