Robert Staab

First time home buyers wanting to use the "Gift of Green" in the Maine Housing Program can now take the course on line instead of in person. Here is the link

http://ehomeamerica.org/

Bob Staab

Mortgage rates for 30-year U.S. loans declined for the first time in five weeks, reducing borrowing costs from a 10-month high.

This link is from Business Week and discusses interest rates and the housing market last week

http://buswk.co/eXjCDC

It will be interesting to see what interest rates do in the near term. We are starting to see some early sign of inflation which typically drives interest rates higher. However with fewer potential home owners able to get financing it would be natural to see if interest rates will remain at current levels. I would be interesting to hear your opinion on this.

If you do not believe that financing is less available, about 30% of the sales in the last 4 years have been short sales. Those sellers depending on the lender typically are not eligible for financing for at least 3 to 7 years from the time of the short sale. So they are forced to sit on the sidelines and wait.

Bob Staab

Senior Loan Officer

Northeast Bank

Yesterday was a great day for the real estate market, for interest rates it was an awful day as rates jumped higher in one day than in some time. However, it was a day full of good news that we have been waiting a long time for.

The private payroll data report from ADP was almost twice what was expected for job creation.

ISM (Institute for Supply Management) data which tracks national manufacturing growth reached levels that we have not seen for years. As one commentator put it "manufacturers do not make stuff unless they have a buyer for it" so this is good news, consumers and business may be loosening up a little.

The third piece of good news is that the Fed's Beige Book was released and it showed strength in consumer spending and manufacturing. It was a prettier scenario than last month for sure.

All of these will show and will create more consumer confidence. If a prospective homeowner is confident that they will not lose their job, and with real estate prices and interest rates at all time lows they will be buying again.

Sure there are a lot of people in this country just hanging on, but there are lots of people out there that want to buy a home. For the first time in years the economic numbers are giving them a reason to.