About Polk County, WI

To all,

New Home Sales data is compiled monthly by the Department of Commerce's Census Bureau and is gathered from builders throughout the country. The data represents new home sales for the nation as well as four areas of the country: the Northeast, the Midwest, the South, and the West. Information on the average price of a home, the number of homes for sale, and the supply of unsold homes are also provided. The data is an important indicator because it shows any strength or weakness in the housing sector. The housing sector data is valuable because when consumer spending changes, it appears in this sector first. Consequently, a chain reaction typically occurs. A slowdown in new home sales tends to lead to a slowdown in housing starts, which will continue to affect other indicators possibly resulting in a recession, as has been the recent concern of most everyone.

If interest rates rise, further weakness could be placed on new home sales. However, if interest rates remain steady, new home sales may be able to stabilize.

The risks of floating far outweigh the potential benefits. Therefore, a cautious approach is necessary to protect against short-term movements in mortgage interest rates. Now is a great time to take advantage of mortgage interest rates at their relatively favorable levels. While it is a good time to take advantage of rates, and has been for some time, rates did drop late Friday afternoon. Give me some time to let my investors get in for those with true rate lock questions.

Greg Adelman

http://www.midwesthomecenter.com/

To all,

Regardless of market trends, buyers and mortgage lenders rely on independent professional appraisers to provide an impartial valuation of the property.

New York Attorney General, Andrew Cuomo, has recently reached an agreement with Fannie Mae and Freddie Mac which specifies that as of 2009, Fannie Mae and Freddie Mac will only buy loans from banks that meet the requirements of the "New Home Value Protection Code."

With Fannie Mae and Freddie Mac currently purchasing more than 60% of all home loans in the country, the agreement could have a monumental impact on the appraisal industry.

Some Implications of the New Home Value Protection Code include:

• Mortgage brokers will be prohibited from selecting appraisers.
• Lenders will be prohibited from using "in-house" staff appraisers to conduct initial appraisals.
• Lenders will be prohibited from using appraisal management companies that they own or control by more than 20%.
• Lenders will be prohibited from using appraisers employed by an affiliate of the lender; an entity that is owned in whole or in part by the lender; or an entity that is owned in whole or in part by settlement services provider.

There is little doubt that ensuring the independence of professional appraisers is the most viable and expeditious solution to restoring consumer confidence in local residential markets.

While the final outcome of the agreement is still unclear, there will likely be some kind of restructuring of the industry to support the new standards.

The agreement is subject to revision, and Cuomo's office will be accepting comments from industry sources and other interested parties through April 30, 2008. In the meantime, we will continue to attend relevant industry meetings and events which will enable us to keep our clients better informed on pending issues. We look forward to sharing future updates with you as additional details are disclosed.

contact us at www.midwesthomecenter.com for all you housing needs

We provide all types of houses for all types of people and their situations and needs.

Our custom or standard homes can fit what is important to you. Whether you're in the market for a ranch, cottage, loft, cape cod, two story, townhouse, split-level, split-entry, commercial building, duplex
or an apartment building; Midwest Home Center is your answer. We specialize in customizing plans to fit what's important to you.

contact us at www.midwesthomecenter.com

I just want to thank the fine folks at Walmart. I have been coming to my model at WI 35 and Hwy. 8 and they are always here to help me in and out of the house (since I have MS). I know there are people that don't always look kindly on them but they provide products at a good price and help the communities they are in.

To All,

Get ready for the wild ride!!

JP Morgan Chase and the Fed just bailed out Bear Stearns over the weekend for pennies on the dollar! In addition, the Fed just lowered rates on loans to banks by .25%. While the rate reduction is helpful, it probably will not be received by lenders as something that they are going to pass on to our customers.

The Fed will meet this week and most investors feel that they will lower rates by as much as .75%! This should give our customers a benefit in lowering rates being actually passed on to the consumers.

Be ready for a wild ride this week in the financial and financing market!

None of us are trusting the banks or the Fed at this time. As a result, continue to get your customers in and get rid of all of the market risks that are present. Hold on this week and take advantage of market conditions that present themselves!

Thanks,

Greg Adelman