What a two weeks it has been! We have basically seen 30 year mortgage rates jump 1% in a short two week period. In my world that is a tough two weeks! There are many opinions as to why rates have increased.....
Did you realize that foreign investors, namely China and Japan purchase up to 40% of our debt (U.S. Treasuries). One of the major fears the past few weeks is that foreign investors stop buying our debt. As of yesterday we are starting to see some stabilization in the interest rate market which is helping rates ease back down. Current 30 year rates are averaging 5.625% and 15 year 5.125%. I am willing to go out on a limb and say we should see an additional .50% improvement in the coming weeks/months.
For my readers who are realtors you may want to check with the lenders on your deals to confirm the rate lock. If closing dates are missed (which I have heard some buzz it is happening more often) it is possible locks will expire AND rates will be adjusted up to current levels. Don't get me wrong, current levels are still historically outstanding just not the 4.50 - 4.875% that many may have locked into.
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Strong Demand for Treasury Auctions After rising significantly over the last couple of weeks, mortgage rates moved higher again this week, but at a much slower pace. Strong demand for this week's large Treasury auctions helped keep mortgage rates relatively stable. At current yields, both foreign and domestic investors showed above average interest in adding bonds to their portfolios. Behind the recent rise in mortgage rates has been an improved economic outlook and concerns about the enormous supply of new debt needed to pay for government programs. This leaves the Fed in a difficult position. Fed officials would like to keep mortgage rates low to lift the economy. To accomplish this, however, the Fed would have to significantly increase its purchases of mortgage-backed securities (MBS), requiring it to issue even more debt and adding to inflation concerns. Most analysts believe that the Fed is unlikely to expand its MBS purchase program. At the June 24th meeting, they instead expect the Fed to discuss an eventual exit strategy for the program, which might include stretching out their time frame for purchasing MBS. Reducing the weekly purchases would allow the Fed to gradually scale back its involvement in the market. The MBS purchase program has helped bring mortgage rates down since it was announced in November, but the Fed cannot continue to intervene in MBS markets indefinitely. Slowly reducing their MBS purchases may be the best way to minimize the impact on the market as they make their exit. |
Week Ahead
The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Tuesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Wednesday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production and Housing Starts will be released on Tuesday. The Empire State and Philadelphia Fed regional manufacturing indexes will round out the schedule.
Weekly Mortgage Update Courtesy Of:
Darrin L. Kresevic, Sr. V.P., Loan Officer, LPO Manager
![Darrin 2[1] (2)](http://www.yourclevelandrealtors.com/wp-content/uploads/2009/06/Darrin-21-2-225x300.jpg "Darrin 2[1] (2)")
First Place Bank 440 349 7550
6150 Enterprise Parkway - Solon Ohio 44139
Assistant - Janice Zabish Direct - 440 349 7562
Lending seventeen years of Mortgage Banking experience
To reach Darrin and many other outstanding business people in our community, please look at our website business and services section:
44022 CHAGRIN FALLS 44023
INVENTORY REPORT FOR JUNE 12, 2009
Dollar Price Range Active & Contingent Listings Pending & Sold Listings Current Inventory (months)
$150,000 - 300,000 163/13 17/53 15
$300,001 - 500,000 163/10 14/40 19
$500,001 + 179/6 10/13 48
_________ ________ _______
505/29 41/106 21.8
Total Homes for Sale 534
Average Sales/Month 24.5
Months of Inventory 21.8
Pure and simple, there are a lot of homes for sale in CHAGRIN FALLS. The above numbers may be eye openers for many of you.
If you are currently selling your home, you are probably very well aware of them. Most importantly, ALL BUYERS AND SELLERS should be aware of them for your street, neighborhood, and community. The numbers can change dramatically by location, even within your local community.
If you are looking to purchase a home in the next few months, please give us a call. We show all properties listed by any real estate broker and most for sale by owner homes. Most importantly, our purchase analysis for buyers includes the street, neighborhood, and the local community facts.
If your interest is in homes priced above $500,000, the above chart indicates an inventory of 4 years. If you are ready to negotiate, there are excellent values available in every price range.
For families and individuals involved in a relocation or transfer, you're timing couldn't be any better. The Greater Cleveland Community has so much to offer and is one of the most affordable major metropolitan areas in the country.
Our website contains information on mortgage rates, lenders, local community groups, details about us and our services, and helpful information for living or moving to the Chagrin Valley. Check out our website now: YourClevelandRealtors.com
Jim & Joan Norbuta
RE/MAX Traditions
No, we're not part of any large relo company. We are currently assisting in the relocation of two families, one from Pittsburgh and the other is from Chicago to the Cleveland area.
We've had the best experience, having been personally been moved by a large corporation 3 times. We understand....the employer's needs and the employee's needs for a smooth transition.
Check us out on our website for further information:
Who qualifies?
How do we get it?
Tax Credit Provides Outstanding Opportunity for Home Buyers
A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
Learn how you can take advantage of the tax credit to buy the home of your dreams, YOU MAY QUALIFY EVEN IF YOU'VE OWNED A HOME BEFORE!
More questions? GO DIRECTLY TO THE SOURCE:
http://www.federalhousingtaxcredit.com/2009/home.html
READY TO SEARCH FOR YOUR DREAM HOME? CONTACT US TODAY!
My name is Jim Norbuta and I am a Realtor at RE/MAX Traditions in Chagrin Falls, Ohio 44022 & 44023, Southeast Cleveland Suburbs. We help you buy new homes, existing homes, condos, and vacant land(currently have 29 acre and 50 acres- not listed- of prime residential property in the Chagrin Falls area-call for details). If you are involved in a relocation move, please check our website for information that can assist you. We are working on our green designation, and our website provides links to many important green websites. We don't try to sell homes to our buyer clients, we provide information and expertise to enable them to make good buying decisions. You can call my personal cell number at 440.708.0561, or e-mail us from our website: YourClevelandRealtors.com
The Chagrin Valley Chamber of Commerce is hosting concerts at the Triangle in downtown Chagrin Falls this summer. The concerts start at 7:00 p.m. every Thursday and are a fun way to spend your evening and see your neighbors. Don't forget to bring your own chairs or blanket.
Looking forward to seeing you there!
For the complete summer schedule, visit our website:
http://www.yourclevelandrealtors.com/2009/05/19/505/
Do you want or need someone to sell you a home? Most people definitely do not. Assisting you in finding your dream home is our goal. Helping you through the process is what we are here to do.
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