Interest Rate
As you may have heard yesterday the Federal Reserve as well as countries around the world worked in unison to lower key short term interest rates in an attempt to ease the world credit crisis. The Federal Reserve lowered their Federal Funds Rate by 1/2 % to 1.5%.
How Does This Affect You ?
It is important to remember that lowering the Federal Funds Rate has no direct impact on long term mortgage interest rates and sometimes it can cause an upwards move in rates. Lowering the Federal Funds Rate will have a direct impact on credit cards, auto loans, and other short term loans. The move is designed to help ease credit around the world and make it easier for lending institutions to borrow short term money and turn around and loan that same money back out. This is a good conversation point you can make with your talking circles as most people think this interest rate cut lowers their mortgage rates. Secretary of the Treasury Paulson also stated that it is imperative to get the housing market back on track and the way to do that is to make sure there is home loan funds available. I see this as a very positive posture by the government which should result in an easing of home loan requirements.
The news from the real estate market seems grim. Property values are falling and mortgage foreclosures are rising. Buyers have gone into hibernation. Believe it or not, all of this makes it a good time to buy a new home. Number 10 Property Values have become more reasonable •· According to an index of 20 major metropolitan areas, property values have fallen some 16.6% since their peak. In some areas, the decline exceeds 20%. Number 9 There is no guarantee that affordable conditions will last •· If you can afford a new home at current property values and mortgage rates it might be wise to take advantage of that. You can't be sure of finding conditions as favorable next year Number 8 Mortgage Rates are reasonably low •· Historically, mortgage rates have ranged from 5.23% to 18.45%. At recent levels just above 6%, mortgage rates are at the low end of that range. Number 7 Loan providers are looking to find qualified buyers. •· While lenders have tightened new home loan qualification standards, they are also eager to make up for the bad loans they now have on the books by making new home loans to qualified borrowers. Number 6 Short Sale opportunities are booming •· This is one element of the opportunity window that many home buyers do not understand. While the purpose of this article is to discuss the opportunity, the key here is to understand why short sales are such great opportunities for buyers that can make a quick decision and then have the patience to go through a long closing cycle.. Number 5 Housing inventory is abundant •· Due to the housing crisis / Mortgage crisis / Stock market uncertainty, inventory of available housing has grown to numbers due to short sales and foreclosures. Economics 101, the more supply, the less demand. The less demand equals great prices! Number 4 Banks are in trouble with bad debts. Having Real Estate on their books is bad business for them. They are depending on the Government to "Bail Them Out" •· Congress is trying to pass a 700 billion dollar bail out to the investment companies that have the bad debt of foreclosed homes. These are homes that are not generating revenues for these companies and ultimately, these investment companies want these properties off their books, so that they can use the monetary asset to once again grow money. Number 3 HR Bill 3221 The Housing and Economic Act of 2008 •· A $7,500 Tax credit for First time home buyers . This plan is only good between 04/09/2008 to 06/30/2009 Number 2 The Media and "Experts" are against buying Real Estate. •· All the wisest investors in history have always been contrarians. If everybody is saying you need to buy, they sell. If everybody is saying you need to sell, they buy. If the markets are mixed, they keep their hands in their pockets and only take advantage of special opportunities. •· In 2008, we have seen everybody jump on board the panic train. Prices have plummeted below cost in many cases and inventory levels make it a ripe time for buyers to pick out a special house to hold on to for many years. Are you going to be a lemming and follow the tail of the herd or are you going to seize the day (Carpe Diem for Mrs. Brown, my high school English Teacher from Glendora High) Number 1 Buyers have bargaining power •· Besides lowering their prices, sellers have found they have to make other concessions to close a deal. Whether it's paying the closing costs or throwing in some new appliances, there are extras that buyers are in position to negotiate.
You are welcome to attend a free seminar hosted by Kevin Hottmann of Prudential California Realty and Ian Villalba of Directors Financial Group on:
Date :
September 27th at 9:30am to 11:30am
at the:
Crowell Public Library located at 1890 Huntington Drive, San Marino, CA 91108.
Whether you are a first-time buyer or an old pro at the real estate game, buying a home can be a daunting process. It's an emotional time filled with difficult choices and each decision you make has money riding on it.
Finding the right home to meet your family's needs is hard enough. But knowing how to avoid paying too much for that home once you've found it is another job entirely.
Using the experience of helping countless buyers find their dream homes and save time, Kevin has prepared a guide to help you avoid pitfalls inherent in the home buying process. You will learn how to make sure you've found the right home and to negotiate a price to your advantage.
In today's complex, fast-paced market, you can't afford to learn these lessons through trial and error. The tips that will be covered will go a long way toward making you a savvy buyer.
Our June 7th REO TOUR BUS was a success!!! 3 properties were sold !!! There were many of you who could not attend our free tour due to conflicting schedules. That is why we are having another free tour to visit more HOT BUYS in the San Gabriel Valley! Kevin and I have heard your requests for featured homes. We are committed to making this next tour even better than the last so we hope that you don't miss out this time around!!!
We hope you can take advantage of our next free tour and platform for educating yourself about wisely investing in this Real Estate Market. It will be hosted by Kevin Hottmann, Century 21's Top Producing Real Estate Agent and Ian Villalba, Top Producing Mortgage Loan Specialist. We will be featuring specific bank owned homes in the San Gabriel Valley and will be explaining very important concepts in acquiring a home during our current Purchase Market. Please be sure to call me to RSVP your seats ahead of time due to limited seating availability. This event is open to everyone willing and able to learn more from Experienced Professionals within this industry. Feel free to bring your Family and Friends!!! I hope to see you there!!!
Kevin Hottmann Ian Villalba
800-524-2272 ext. 228 66-669-9488 ext. 112
Kevin Hottmann and Ian Villalba
Aboard a 35 passenger Limo bus
Inside one of the homes that sold quickly after.
Happy Clients after the June Tour
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His goal is to create a relationship with all of my clients that are based on integrity, reliability and quality service.
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