Federal Reserve Governor Randall S. Kroszner was a keynote speaker today at the American Securitization Forum in Las Vegas. Live reports from the forum (discussing the housing industry and the mortgage mess in mass harmony), the Fed Governor noted that:
"The Fed remains worried that credit is getting too tight after years of loose standards.
The S&P/Case Shiller Home Price Index showed the largest year over year loss in appreciation since the 20 City Index started in 2000. Economist expected us to see a decline of 7.1% and the November data shows a decline of almost 8%.
In other housing news this week, Ryland Group Inc. Chief Executive Officer Chad Dreier said on a conference call that "The U.S. housing market is the worst in 30 years.''
Ryland, showed a fiscal fourth-quarter net loss of $201.9 million.The day after the conference call, Dreier said the housing market is ``too uncertain'' to offer an outlook and that the company will continue to offer "big incentives'' to potential buyers in California.
Not surprisingly, Lennar Corp., the biggest U.S. homebuilder, reported the largest quarterly loss in its history. They also reported that new orders for the period ended Nov. 30 fell 50 percent to 4,761. They also indicated that the average sales price declined 3.6 percent to $291,000 as the company offered greater sales incentives. In many markets, including the Triangle Lennar is selling lots at a discount and creating a great opportunity for local builders. The News and Observer notes that some of these lots are being sold at less than 80 cents on the dollar.
Fortunately for us in North Carolina, for the most part, we are NOT in the appreciation loss business - homeowners here might not be getting 10% - but they should be at least holding their values in housing, and in most of NC we are seeing a modest rise!
For more educated information on home loans in the Raleigh Market call us!
Steve and Eleanor Thorne, 919-649-5058
Today the Federal Reserve begins it's scheduled meeting. The Durable Goods Orders announced this morning was much stronger than expected. This will likely cause rates to go up as part of the "Good News for the Economy is Bad News for Interest Rates!" Higher Durable Goods Orders means that there's demand for products being manufactured here in the US.
Consumer Confidence is the next report out today as the Fed meets... The potential checks from the Government announced last week could be in the Consumer Psyche, and if so the Consumer Confidence report due out at 10:00am could also be stronger than expected. The expected number is 89% - anything above 85% could also be a pull on the bond market as Wall Street will believe that the Consumer is "still in the game.
Normally mortgage interest rates "bake in" any move from the Fed several days prior to the Fed actually moving. My belief is that we have 25 bps priced in. If the Fed lowers by .50 bps we could actually see lower rates. The biggest number of the week remains the Friday Jobs Number. It's sadistic - but if you are looking for lower rates then you are looking for BAD NEWS IN THE ECONOMY, meaning you want a weak report on Friday!
I still believe that we could see rates go well below the 5.5% mark in the coming weeks, but in todays up and down market our advice is to lock!
For more educated information on mortgage interest rates give us a call!
Steve and Eleanor Thorne, 919-649-5058
Here in Cary, NC we are lucky that we have a strong real estate market - yes there are many new homes "on sale" as New Home Builders have a large inventory - but overall we are LUCKY that we have APPRECIATING property values! Now we find that Rates could go below 5%.
The Fed Reserve has lowered their lending rates - and it looks like mortgage interest rates in Cary could be the cheapest they have been in YEARS! Home loan interest rates should be below 5.25% on a fixed rates mortgages before the end of the day!
We are talking to people who want to refinance their adjustable rate mortgages - and they want to know if this is a good time to refinance! Our suggestion to folks in Cary, NC is that you apply now, have everything ready, and then wait and see if the Fed lowers one more time next week!
We also recommend that those refinancing look for the lowest mortgage rates in Cary, NC and the lowest COST of refinancing. We offer our clients no cost refinances and feel that this option is best for most borrowers. We will also discuss with you the opportunity to add equity to your home by reducing the TERM of your mortgage!
Please call us to help with your mortgage financing needs!
Senior Mortgage Loan Officers
Dark clouds are brewing over the family farm...
Prior to the Fed's move a couple of minutes ago - the 10 year was already trading at a level that would allow us to offer 30 year fixed mortgage rates at 5.0% or lower. I would be surprised if we do not see rates at or below 5% when rates come out in a couple of hours. This is HUGE!
This is surreal! While the fed is lowering by .75% Paulson is speaking and saying the President's package is Robust! A $500 check is NOT Robust! And then Paulso says (in response to the Fed Lowering) that the Fed is nimble and this should add CONFIDENCE to the market?!? Hugh?
And last week - another one of those surreal moments... Cramer sighted the same solution my SON suggested in his ECON Final last month!
According to Cramer, it's the collapse of the mortgage and mortgage-backed securities insurers -- like
MBIA [MBI 8.55 --- UNCH (0%) 
] , Ambac Financial [ABK 6.2 --- UNCH (0%) ] , PMI Group [PMI 6.47 --- UNCH (0%) ] , MGIC [MTG 14.11 --- UNCH (0%) ]-- that's hurting the financials so much and causing the paralysis in the market. "I think these are the companies that are the lynchpin of what's wrong," he said.
Cramer offered a plan that called for a government handling of the pre-packaged bankruptcy of these companies and a guarantee of 50 cents on the dollar for all $500 billion in insured loans. Even if every loan defaults -- "which is way, way too negative," Cramer said -- it will take just $250 billion to get the economy moving again.
It's a fun time! If you are interested in buying, selling or refinancing property please contact us!
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I see myself differently than most loan officers in the Cary/Raleigh market. As a rare Cary native, I see myself as an expert on the area, on mortgage industry changes and factors that affect rates!
Who We Are
I am privileged to work with my husband, Steve, in an area we both love. When my family moved to Cary in1968 the population was around 7600. Today, we are the seventh largest metropolitan area in the state with a population of over 125,000! Steve and I met at Cary High School, and we remember when Kildaire Farm Road had a couple of FARMS on it and the Cary Parkway was just a good idea.
I'm second generation "mortgage." As I grew up in a home where everyone spoke about the economy and the mortgage and real estate business... I'm an Economic News Junkie and often write about events moving mortgage interest rates. It's important to me that folks understand that I'm not writing about the "gloom" and "ruin" of the mortgage industry - I'm simply looking for lower mortgage interest rates. Typically, bad news in the economy spells good news for mortgage interest rates.
Steve and I were named one of the top Origination Teams in the State (by the NC Association of Mortgage Professionals) and Mortgage Originators Magazine. As entrepreneurs, one of our companies received the coveted Triangle Fast 50 Awards by our Business Journal three years in a row.
Our Commitment
We've been involved in Mortgage Lending since the early 1980's. There is a vision that drives us to do what we do. Simply put, we want to help you create the financial strategy that allows you to live life to the fullest. That requires that together we establish goals, define priorities and determine what's most important to you.
On any given hour of a day, mortgage lending experiences subtle shifts that can create huge forces of change for our customers. We are dedicated to a life of continually educating ourselves in the broad areas of economics, politics and financial planning... and of course we stay on top of the Mortgage Industry News too!
Our Family, Our Community
As active members of the Cary Chamber of Commerce, the YMCA and our church, we have become friends and mentors to local businesses and charities. We've worked hard to raise money and awareness for the "We Build People Campaign" at the YMCA and the American Cancer Society "Relay for Life."
Our unique family dynamic includes a middle school daughter, a son who is at Western Carolina University, a small Japanese Chin (named Lucky) .
I'VE BEEN HACKED!
hi. my name is Savannah Leigh Thorne. i am Steve and Eleanor's daughter, and i feel very strongly that my mom hasn't truly explained our family. so here it is. we are a simi-normal family getting by comfortably in soccer mom territory, also known as the suburbs(not my first choice. but its ok, i still have plenty of fun). we love to do allot of things as a family. my dad and I like to go to the YMCA (conveniently located up the street from us) and play plenty of sports like tennis and swimming and on the occasion even jogging(once again, not my first choice). My older brother is one of my heros, we are 12 years apart and have way too much fun together. my mother often looks at us with a very confused face and asks us why are acting like brothers and sisters.. of course we all start laughing and say "i guess someone didn't get the memo!". speaking of my mom. something you might not know about her is that she is possibly the most creative person i have ever met. she is constantly finding new ways to make something in (or on) our house look amazing. i like to think that's where i get my creativeness from. So anyway. the last thing you should know about our happy little family is that we are very musically inclined. My dad and i will stay up all night playing guitar and piano and singing, of course my mom and brother will join in on the singing too, but its what we do. we may be embarrassing, and we do have our "un-happy" moments. but for the most part were just like ever other typically untypical family. :)
LOVE,
SAVANNAH LEIGH THORNE
Our Company
First Financial Services is a NC owned mortgage banker / broker. We are authorized to handle FHA, NC Housing, VA, USDA... and represent an array of conforming, conventional lenders. We have offices in NC, SC, Virginia and DC. Our team is built upon the same foundation we built our business relationships on. We constantly strive to build a team that embraces and adheres to the values we consider most important... as one of our clients you can be assured that everyone on our team to look out for your best interests!
In most cases we are able to allow our clients to lock into an interest rate and float down if the market improves. We educate our customers on market conditions, and the events that might change those conditions, as we help find the BEST solutions for your situtaton!
We are fortunate to have expertise in helping folks make minor changes to their credit files - as those minor changes to improve a score can make thousands of dollars worth of difference over the life of the loan.
For a more information about Cary check this out or CLICK HERE!
We are helping host RE BARCAMP for the Raleigh Area on November 6 from 10 until 4. This is an interactive meeting aimed at Raising The Bar on Social Media Marketing in the Real Estate World! Follow us #REBCRDU
If you are an agent, or a lender looking for an interesting way to get more people interacting with you, click here.
In addition to the information we post on Activerain, you might find what you are looking for at another of our websites! For instance, we have hundreds of properties (each with their own websites) at STEVE THORNE ONLINE. We also post maps, and qualifying information about ALL Government Loans at NC FHA EXPERT. We've met dozens of people this year who are struggling with ways to improve their credit - and maximize their FICO so that they can get the best rates. Because of this, we created a site dedicated to the question, 'HOW TO IMPROVE MY SCORE." We also have local housing trend information, quirky insights, and networking information about this area at this site. Triangle Area Recognition: Recent "Best Of" Awards
Men's Health
Magazine ranked Raleigh the most politically engaged city in America.
The rankings were based on percentages of active registered voters, ballots counted, percentage of income donated in the current presidential election, campaign spending, votes cast in the 2008 primary and votes cast in recent elections for governor and senate - Men's Health magazine, September 2008
Milken Institute: A Best Performing City
The Raleigh-Cary metropolitan area is ranked number two in the nation's "Top 100Best Performing Cities" in an annual economic performance index released by Milken Institute/Greenstreet Real Estate partners. The annual study ranks
metropolitan areas by how well they are creating and sustaining jobs and Economic growth. The Raleigh-Cary area rose from number 10 in 2007 - September 2008
MSNBC: America's Best City
MSNBC.com ranks Raleigh America's best city! "Raleigh, N.C., it seems, is the best place to be in the U.S. right now. It ranks No. 1 in Forbes' 2008 list and was also top in 2007 - consistent placement among these lists is truly rare. It ranks No. 2 in Kiplinger's list this year. The city is also Fortune Small Business magazine's No. 20 place to live and launch." -- June 2008
Kiplinger's: A Top Urban Area
Kiplinger's Personal Finance names the Triangle the second best urban area in the U.S. It highlighted undeniable date: population growth since 2000 of 19.9 percent; percentage of the work force in the creative class, 36.1 percent; cost of living index, 99 with 100 being the national average; median household income of $56,150; and income growth of 10.3 percent since 200. This ranking dubbed Houston the best in America and Omaha, Neb., the third best. -- July 2008
Forbes: Recession-Proof Local Economy
Forbes magazine ranks the Triangle's economy as fifth on a list of 10 recession-proof local economies. -- May 2008
Best Place For Young Adults
A study conducted by American City Business Journals ranked the Raleigh-Durham
market as the best in the nation for young adults, defined as ages 20 to 34. The
study examined 10 factors, including growth rates of employment and per capita
income, unemployment, percentage of people holding bachelor's degrees and
median rent in the nation's 67 largest metropolitan areas. Austin was ranked
second, Washington, D.C., third. Charlotte placed seventh. -- May 2008
Fortune: A Best Place To Live And Launch
Raleigh's growing tech industry, support of entrepreneurs and the $2.5 billion
renaissance downtown place the Capital City at No. 20 in Fortune's "Best Places to
Live and Launch." -- May 2008
Rachel Ray: Best CityFor Singles
Raleigh is named The Best American City for Singles" in Every Day with Rachel Ray
magazine. - - January 2008
"If we study the lives of great men and women carefully and unemotionally we find that, invariably, greatness was developed, tested and revealed through the darker periods of their lives. One of the largest tributaries of the river of greatness is always the stream of adversity."
Cavett Robert
"This day is all that is good and fair. It is too dear, with its hopes and invitations, to waste a moment on the yesterdays."
Ralph Waldo Emerson
"Any mans life will be filled with constant and unexpected encouragement if he makes up his mind to do his level best each day." Booker T. Washington
"It is impossible to get the measure of what an individual can accomplish, unless the responsibility is placed on him."
Alfred Sloan
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"Of course there is no formula for success except perhaps an unconditional acceptance of life and what it brings."
Arthur Rubinstein
"I can accept failure. Everyone fails at something. But, I can't accept not trying."
Michael Jordan
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