WA State to Boost Small Business Lending

$19.7 million in federal funds will be leveraged to encourage 15 to 18 times that amount in private lending.

The Washington State Department of Commerce announced that it is introducing three new programs that will encourage private lending to small businesses, injecting about $300 million into the state economy over five years, and creating an estimated 4,000 to 8,000 jobs.

The program will be paid for using $19.7 million from the federal government, the state’s share of funds authorized by Congress at the end of 2010 as part of the Small Business Jobs Act.

By leveraging the federal money to attract private capital, Rogers Weed, director of the state Commerce Department, thinks the state can generate about $15 to $18 for every $1 the state invests. “We targeted the programs to achieve the greatest possible impact,” says Weed. “We are using the [federal] funds to create and sustain longer-term opportunities for investing in our small businesses.”

Responding to input from lenders, small businesses and others, the state chose to fund three separate programs:

• $8.7 million will go to Enterprise Cascadia, a non-profit that finances businesses in rural and other underserved areas with the goal of promoting community development. The organization expects to attract sixteen times that amount in private money to expand its business lending.
• $6 million will go to a Capital Access Program that will create a loan loss reserve fund that will allow bank partners such as Wells Fargo to make riskier loans than they might otherwise be willing to make. The state figures it’s investment will allow an additional twenty to thirty times the amount to be invested in businesses that might not otherwise have been approved for a loan.
• Another $5 million will go to an early stage venture fund that will be used to help commercialize technologies and business ideas coming out of the state’s university and government research laboratories. The money will fill a gap in funding needs that has opened up as angel investors and venture capitalists have become more risk averse, avoiding investments in early stage start-us.

These moves are just the latest in a series of moves designed to boost small business, which account for 95 percent of all businesses in Washington state. In November, the department announced an initiative to help promote exports among small businesses. The initiative included $1.6 million in federal grants to encourage banks to participate in export finance programs sponsored by the Export-Import Bank of the United States, the U.S. Small Business Administration and other government financing programs. The program hoped to have 10 more banks make export loans over the next three years with a target of supporting $20 million in export sales. Although four times more Washington company export, on average, than companies in other states, exporters still only account for four percent of all state companies.

The state has also moved to expand the number of small businesses exempt from the B&O tax, sought to reduce regulations and worked on developing a centralized system that would make it easier for businesses to pay taxes that differ from region to region within the state.

When the economy was booming and credit was easy, entrepreneurs often financed their businesses by taking out home equity loans or maxing out their credit cards. Now with housing values down and credit tight, many small businesses have found it difficult to finance their operations. The state hopes the easier access to funds will lead to investments by small businesses that might not otherwise been made.

~Leslie Helm

Larry Miller

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Interest Rates near all-time lows

WASHINGTON — The average rate on the 30-year fixed mortgage fell to 4 percent this week, nearly matching the all-time low hit just one month ago.

Freddie Mac said Thursday the rate on the 30-year loan dropped from 4.10 percent last week. Four weeks ago, it dropped to 3.94 percent — the lowest rate ever, according to the National Bureau of Economic Research. The average rate on the 15-year fixed mortgage fell to 3.31 percent from 3.38 percent. Four weeks ago, it too hit a record low of 3.26 percent.

Mortgage rates tend to track the yield on the 10-year Treasury note. They yield fell this week after investors shifted money out of stocks and into the safety of Treasurys on fears that Europe’s debt crisis could worsen. The Federal Reserve is also shifting more money into longer-term Treasurys to try to force mortgage rates lower. Treasury yields fall when buying activity increases.

Federal Reserve Chairman Ben Bernanke said Wednesday that low rates have failed to spur the increase in home buying or mortgage refinancing that government officials had expected. High unemployment and declining wages have made it harder for many people to qualify for loans. Many Americans don’t want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.

The number of Americans who bought previously occupied homes fell in September and is on pace to match last year’s dismal figures — the worst in 13 years. Sales of new homes rose last month after four straight monthly declines. But the increase was largely because builders cut their prices. And it followed a peak buying season that was the worst on records going back nearly 50 years.

The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent.

Rates have been below 5 percent for all but two weeks in the past year. Just five years ago they were closer to 6.5 percent. Ten years ago, they were above 8 percent. The average rate on the five-year adjustable loan fell to 2.96 percent from 3.08 percent. That matches a record low hit four weeks ago. The average rate on the one-year adjustable loan declined to 2.88 percent from 2.90 percent. It fell last month to 2.81 percent, the lowest on records dating to 1984.

The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fee for the 30-year fixed mortgage fell from 0.8 to 0.7. The average fee on the 15-year fixed loan was unchanged at 0.7. The average fees on the five-year adjustable loan one-year adjustable loan were also unchanged at 0.6.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

~ Derek Kravitz

If you’re thinking of buying or refinancing, don’t miss out on these great rates!

WASHINGTON — The average rate on the 30-year fixed mortgage fell to 4 percent this week, nearly matching the all-time low hit just one month ago. Freddie Mac said Thursday the rate on the 30-year loan dropped from 4.10 percent last week. Four weeks ago, it dropped to 3.94 percent — the lowest rate ever, according to the National Bureau of Economic Research. The average rate on the 15-year fixed mortgage fell to 3.31 percent from 3.38 percent. Four weeks ago, it too hit a record low of 3.26 percent. Mortgage rates tend to track the yield on the 10-year Treasury note. They yield fell this week after investors shifted money out of stocks and into the safety of Treasurys on fears that Europe’s debt crisis could worsen. The Federal Reserve is also shifting more money into longer-term Treasurys to try to force mortgage rates lower. Treasury yields fall when buying activity increases. Federal Reserve Chairman Ben Bernanke said Wednesday that low rates have failed to spur the increase in home buying or mortgage refinancing that government officials had expected. High unemployment and declining wages have made it harder for many people to qualify for loans. Many Americans don’t want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have. The number of Americans who bought previously occupied homes fell in September and is on pace to match last year’s dismal figures — the worst in 13 years. Sales of new homes rose last month after four straight monthly declines. But the increase was largely because builders cut their prices. And it followed a peak buying season that was the worst on records going back nearly 50 years. The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent. Rates have been below 5 percent for all but two weeks in the past year. Just five years ago they were closer to 6.5 percent. Ten years ago, they were above 8 percent. The average rate on the five-year adjustable loan fell to 2.96 percent from 3.08 percent. That matches a record low hit four weeks ago. The average rate on the one-year adjustable loan declined to 2.88 percent from 2.90 percent. It fell last month to 2.81 percent, the lowest on records dating to 1984. The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fee for the 30-year fixed mortgage fell from 0.8 to 0.7. The average fee on the 15-year fixed loan was unchanged at 0.7. The average fees on the five-year adjustable loan one-year adjustable loan were also unchanged at 0.6. To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

Larry Miller

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Help for “Underwater” Homeowners

On Monday, the White House announced a new initiative to help “underwater” homeowners, or homeowners with mortgages worth more than the properties associated with them, refinance their mortgage loans.

Under the Home Affordable Refinance Program (HARP), the administration, working with the Federal Housing Finance Agency, plans to overhaul “key barriers” that have hindered homeowners from successfully refinancing their mortgages. The intended effect will be to offer homeowners with little to no equity in their homes the opportunity to refinance for the low interest rates available today, at lower costs. The opportunity is only available for Fannie Mae and Freddie Mac-backed loans.

“We have far too many Americans who have done all the right things, have paid their bills and are current on their mortgages, yet they are still stuck with 6% or 7% mortgages because home prices in their neighborhoods have made them ineligible for refinancing,” states Shaun Donovan, Secretary of Housing and Urban Development (HUD).

In the second quarter of 2011, 10.9 million — or 22.5% — of all homeowners were underwater on their homes, according to Corelogic, a Santa Ana, Calif.-based data firm. Homeowners burdened by underwater mortgages have, despite a bevy of government initiatives like HARP, been in many cases unable to refinance their loans and thwart the foreclosure process. HARP was created in 2009 to help as many as five million home-owners refinance their loans. As of today, the number of homeowners successfully able to refinance through the program has been 822,000 — painfully short of that goal.

Worse, less than 10% of those 822,000 were homeowners more than underwater by more than 5% on their loans.

To make the refi process more effective for more homeowners, the implementation of five major changes to revamp HARP will take place. President Obama is scheduled to discuss the initiative, part of his new “We Can’t Wait” campaign, further while visiting hard-hit Nevada this week. Here are the HARP changes, as outlined by Secretary Donovan and Gene Sperling, Director of the National Economic Council, in a conference call earlier today:

1. No More Cap on Underwater Amount. Any homeowner who was more than 25% underwater on their mortgage was not eligible for HARP. Under the new initiative, any borrower, no matter how deeply underwater, will be eligible.

2. Lowered Homeowner Costs to Refinance. Donovan says many homeowners chose not to utilize HARP because of the high costs associated with doing so. To knock some of those costs down, the GSEs (Fannie Mae and Freddie Mac) will eliminate the risk-based fees they were charging for refi. The number of homeowners who need to get an appraisal to qualify for refi is being cut down too, with an automatic valuation technique being employed wherever possible. The cost of title insurance and loan processing are being reduced. And Donovan says the Treasury is collaborating with the Hardest Hit Funds in the hardest hit states housing-wise to see if there are ways for those states to help with closing costs as well.

3. Elimination of Reps and Warranties on Existing Loans. The mortgage lenders who made the original loans have responsibilities to Fannie and Freddie for the underwriting quality of those loans, but the resolution of those responsibilities has remained very murky territory. The result has been other lenders refusing to refinance existing loans because of uncertainty about what liabilities they might be taking on in the process. The FHFA says it will eliminate those reps and warranties on old loans and streamline the ones required on new refinanced loans. Sperling believes this will “unleash competition” among lenders to refinance loans. Despite the push to knock down closing costs, a “modest” fee will reportedly accompany this, details to be announced November 15.

4. Insurance Coverage Transferred to New Loan. Like lenders, mortgage insurers holding risks on underwater mortgages have had similar problems with reps and warranties that need to be resolved. Under this overhaul, the major mortgage insurers have agreed to automatically transfer coverage from the old loan to the refinanced loan.

5. Re-subordinating Secondary Loans. In many cases homeowners attempting to refi have secondary loans held by lenders that refuse to re-subordinate the loan behind the new refinanced mortgage loan. Donovan says the administration is working with the major lenders to automatically subordinate their secondary loans behind the refinanced loans. The FHFA and the Obama administration estimate that addressing these “key barriers” will enable more underwater homeowners to successfully refinance, saving as much as $2,500 per household per year. The program’s deadline is also being extended out from summer of 2012 until December of 2013.

How many borrowers would be eligible for HARP under its new guidelines? Apparently the administration is trying to avoid making a projection right now: “The question of how many borrowers are ultimately eligible from the efforts announced today is uncertain and obviously the number of borrowers that will take this up is inherently uncertain,” dodges Sperling. Federal Reserve Governor Elizabeth Duke has estimated that up to four million

homeowners appear to meet the basic criteria under these reforms.

A big issue yet to be addressed properly by the administration is more accessible principal balance modifications. It’s nice to have more access to refinancing, but in places like, well, hard hit Nevada, property prices in Las Vegas have plunged as much as 60% since the 2006 peak, according to Zillow. Donovan says there will be options under HARP to accelerate the reduction of negative equity, including allowing borrowers to switch from 30-year loans to 15-year loans to pay off their loan balances sooner. But that doesn’t really incentivize a person to hang onto their home when they could default and live rent free until either a short sale or foreclosure auction materializes.

~ Morgan Brennan

Larry Miller

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Jobs, amenities help neighborhood hold value

The single most important determinate of real estate prices in an area is employment opportunity nearby.

Buying a home that declines sharply in property value can put you underwater on your mortgage, erode your net worth and leave you unable to relocate for a new job or adapt to a change in household income. And one of the biggest factors that determines whether a home will rise or fall in value is its neighborhood.

That’s actually a good thing, because you don’t need a crystal ball to evaluate a neighborhood’s direction, says Andrew Shiller, creator of NeighborhoodScout.com, a real-estate research website based in Worcester, Mass.

"The places that tend to hold on to their value are places that basically do well across two primary dimensions that anyone can think about and evaluate neighborhoods by," Shiller says. Those two criteria and a few others can help you get a sense of where a neighborhood is headed.

The single most important determinate of real-estate prices in an area is employment opportunity nearby, Shiller says. Without that, a neighborhood is at risk of taking a free-fall in real-estate values.

"How convenient is this to a lot of high-paying jobs? That is the most important thing for value," he says. There are a few telltale signs of areas with long-term opportunities for jobs:

• Low unemployment

• High household income

• Seats of federal or state government

• Creative industries (music, television, design, publishing, advertising)

• Research facilities

• Large or prominent colleges and universities

Shiller says the Bureau of Labor Statistics has a wealth of information that can help you assess an area’s employment picture. One key bureau feature is the Local Area Unemployment Statistics map, which can give unemployment information by metro area and county. Another data set called the Current Employment Statistics can tell you how many people are employed in different sectors of the economy in a given metro area.

Having desirable amenities within the neighborhood is a second major factor in whether a neighborhood will appreciate or decline in property value, Shiller says. In the world of real-estate, "amenity" is the term used to describe any asset within a community that people find desirable. Some examples of key amenities that can add value to a neighborhood:

• Low crime

• Good public schools

• Parks

• Pleasing views

• Distinctive architecture

• A variety of retail stores

• An educated population

Still, popular amenities by themselves aren’t a guarantee that property value will remain high, Shiller says. "When a high proportion of the value of real estate is based on amenities and not access to job opportunities, it is more vulnerable to collapse," Shiller says.

Doing a drive-through of a prospective neighborhood is a good way to get a gut feeling for where a neighborhood is now and where it’s headed, says Ken Shuman, a spokesman for real-estate information site Trulia.com. "Look at the neighbor’s lawns. Look at the neighbors’ houses," Shuman says. "Do they take care of them? Shuman also has one caveat for conducting the drive-through test: No test is complete without a drive-through at night. "You usually go to open houses in the afternoon or in the morning, so definitely drive through the neighborhood in the evening," Shuman says. "This is a big mistake a lot of people make, because they see it on a sunny Sunday afternoon and they think it’s a gorgeous area."

Shiller says the neighborhoods that protect homeowners’ value the most are those that combine good job opportunities and amenities in ways that are unusual for the area. For instance, if you live in or around a metro area with poor schools overall, buying in a neighborhood that has good schools can keep your property values high. Shiller cites the examples of Belle Meade in Nashville, Tenn., and Beverly Hills, Calif., both of which enjoy the access to opportunities of nearby urban centers, but also have amenities like excellent public schools and low crime that set them apart. "These places just go out of control as far as value, “he says.

Consistently rising home values over the long term is a key sign a neighborhood will protect residential property value. The critical phrase there is "long term," Shiller says. He says looking at recent numbers can be misleading, especially since they’re likely to be heavily influenced by the recent boom and bust in the housing markets.

"You don’t want to look at only one quarter. One quarter can tell you, ‘Is it raining today or is it sunny today?’ " he says. "But that really doesn’t tell you about the climate. You want to know, ‘Does it rain all the time here?’ " To do that, he advises potential homebuyers to look at property values and comparables going back at regular intervals over the past 20 years, predating the housing bubble. "When some people look at the last 10 years, some areas look like they went crazy high," he says. "And when you look at the last two years, they look like they fell through the floor because they bubbled."

By CLAES BELL

Larry Miller

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U.S. Cities Where Homes Sell the Fastest

U.S. Cities Where Homes Sell the Fastest

Although the U.S. housing market continues to struggle, many local markets are doing significantly better than the country as a whole, with some places virtually missing the housing bust altogether.

While shifts in home values are important in any market, it’s important for sellers to determine the length of time a property can expect to be on the market before it will be sold. The faster that homes sell, the faster an inventory backlog can be cleared, suggesting heightened demand and an upward trajectory in prices. Additionally, if a home is on the market for an extended period of time, it may turn off prospective buyers and force sellers to accept less-favorable offers.

To find the cities where this trend is the most extreme, real estate website Zillow.com analyzed the numbers to identify the cities where homes sell the fastest, according to the median number of days on the market. The numbers presented here are representative of home sales between mid-April and mid-July 2011.

During this time, the national median for time spent on the market stood at 117 days, while New York (168 days), West Palm Beach (175 days), and Indianapolis (180 days) were the cities where homes sold the slowest.

Also included in the analysis is the Zillow Home Value Index (ZHVI), which represents the median measure of home valuations covered by Zillow. The information presented here also includes the proportion of listings with price cuts, the average amount those listings were reduced, and the “final discount from list price,” which is the average amount that was negotiated off the original list price before the sale.

Where do homes sell the fastest?

5. (Tied) Oakland, California

Median time to sell: 81 days Zillow Home Value Index: $316,400

Listings with price cuts: 26.17% Average price cut amount: 8.70%
Final discount from list price: 1%

5. (Tied) Woodbridge, Virginia

Median time to sell: 81 days Zillow Home Value Index: $230,500

Listings with price cuts: 20.54% Average price cut amount: 5.66%
Final discount from list price: N/A

4. Alexandria, Virginia

Median time to sell: 74 days Zillow Home Value Index: $402,500

Listings with price cuts: 33.30% Average price cut amount: 4.47%
Final discount from list price: 2%

2. (Tied) Seattle, Washington

Median time to sell: 73 Zillow Home Value Index: $347,700

Listings with price cuts: 33.55% Average price cut amount: 6.88%
Final discount from list price: 2%

2. (Tied) San Jose, California

Median time to sell: 73 Zillow Home Value Index: $494,500

Listings with price cuts: 26.16% Average price cut amount: 5.58%
Final discount from list price: 1%

1. San Francisco, California

Median time to sell: 59 Zillow Home Value Index: $655,400

Listings with price cuts: 22.55% Average price cut amount: 6.05%
Final discount from list price: 1%

By Paul Toscano, CNBC.com

Have you been thinking about buying real estate as an investment to be part of your overall portfolio?

Ten years from now we may all look back and acknowledge what a great window this time period is now to invest in real estate.

Interest rates haven’t been this low for 60 years and real estate prices are down and under constant pressure from distressed properties such as short sales and foreclosures.

If you want to find out more about the realities of today’s real estate market, plan on attending the Panel Discussion from members of the Puget Sound Advisory Group on Wednesday September 28th at the Holiday Inn in Issaquah starting at 6 p.m. There will be food and beverages including two drink tickets provided.

Panelists include Stu Carson, Real Estate Attorney, Dave Fleck, CPA, Tom Hawkinson, Wells Fargo Loan Officer and myself, Larry Miller, Windermere Realtor.

Come find out why now is a good time to invest, how to do it legally and how to keep more of your investment profit.

Find out how the process works for short sales, bank owned properties and foreclosure auctions, entity formations and lease reviews.

Also understand how the IRS views and treats the real estate professional Vs. a dealer or a “flipper”.

How should you hold your investment? General Vs. Limited Partnership? LLC Vs. S Corporation? Come and find out.

I only have 5 tickets available for this panel discussion. The cost is $20 per ticket, first come first served, so please contact me as soon as possible to reserve your seat, or if you have additional questions about this event.

Time to Refinance or Buy

If you’re thinking about refinancing, or buying – now might be the time!

Homeowners race to refinance as mortgage rates plunge

Plunging interest rates, a result of the turmoil in the stock market, have unleashed a rush to refinance mortgages. But so far they’re not helping home sales, and may even further delay a housing recovery.

If you borrow

$250,000

Your monthly principal and interest payment would be:

at 6 percent = $1,498.88

at 5 percent = $1,342.08

at 4 percent = $1,193.54

$400,000

Your monthly principal and interest payment would be:

at 6 percent = $2,398.20

at 5 percent = $2,147.29

at 4 percent = $1,909.68

$650,000

Your monthly principal and interest payment would be:

at 6 percent = $3,897.08

at 5 percent = $3,489.34

at 4 percent = $3,103.20

These are conforming, 30-year fixed mortgages

Plunging interest rates, a consequence of the turmoil in the stock market, are proving to be a boon for mortgage refinancers. But so far, those low rates aren’t doing much to reignite the nation’s torpid housing market, and they may even delay its recovery.

With rates on conventional 30-year fixed-rate mortgages falling near, and in a few cases below, the 4 percent level, homeowners locally and nationally have been rushing to refinance in recent weeks. "It’s really quite astonishing," said Rich Bennion, executive vice president at Seattle-based HomeStreet Bank, a major regional mortgage lender. "I’ve been in the business 34 years, and it’s like, how low can you go?"

On Wednesday, HomeStreet set its rate on a 30-year mortgage at 4 percent. The rate on a 30-year loan insured by the Federal Housing Administration was 3.875 percent.

Bennion said that in the first nine days of August, HomeStreet received 402 mortgage applications, about two-thirds of them refinancings. That compares with 716 applications for all of July. Refinancings also have exploded at BECU, said Debra Toepfer, mortgage-production manager at the giant credit union. BECU is averaging more than 100 new mortgage applications a day, Toepfer said — a 54 percent increase just since the end of July. Among those, there are four refinancings for every purchase. On Wednesday, BECU’s rate on a conventional 30-year fixed mortgage was 4.25 percent, down from about 4.5 percent a month ago. The rate for a 15-year fixed mortgage was even lower: 3.625 percent.

The rates are nearing lows reached last October and November as an indirect result of tumbling stock prices.

Since late July, spooked investors have been selling shares and pouring the proceeds into perceived safe havens — and Treasury bonds, despite Standard & Poor’s recent downgrade of the federal government’s credit rating, are still considered the safest haven of all.

As investors bid up the price of Treasurys, the yield falls — in this case, to levels not seen since the depths of the 2008 financial panic. The 10-year Treasury bond, the most influential on long-term mortgage rates, ended Wednesday yielding a mere 2.107 percent.

The Federal Reserve’s message Tuesday that it would keep short-term rates ultralow until mid-2013, while not directly tied to mortgages, likely will hold down rates on all kinds of debt for the foreseeable future. The possibility of locking in a lower rate, of course, doesn’t make refinancing a good idea for everyone. Homeowners need to consider closing costs, and whether they’ll be in the house long enough for their lower monthly payments to cover those costs.

While low, stable mortgage rates are good news for refinancers, they may not lure homebuyers back into the market, real-estate brokers and researchers say. The Fed’s announcement "will relieve some of the pressure on would-be homebuyers to move before rates go up," said Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University. "It sends a signal to prospective buyers that, if you think home prices are going to go down some more, you can stay on the sidelines and wait for a better price," Crellin said. "It’s going to prolong fence-sitting on the part of many would-be buyers."

The center reported Wednesday that 85,000 homes were sold statewide in the second quarter, 4 percent below the first quarter and 11.3 percent below a year earlier. The median resale price for the quarter was $226,900, down 7.6 percent from a year earlier.

According to the widely followed Case-Shiller home-sales index, month-over-month prices in the Seattle area have risen, however slightly, for three months in a row. To some, that indicates the local market has reached bottom, though it’s worth noting the local index rose five straight months in spring and summer 2010 before falling again. By Drew DeSilver

Stability in the Real Estate Market?

Pending Home Sales Jump, Point to Stability

Home sales as measured by signed contracts rose sharply in May and posted their first year-over-year increase in more than a year, the National Association of Realtors reported Wednesday.

The NAR’s Pending Home Sales Index gained 8.2% to 88.8 in May from an upwardly revised 82.1 in April, 13.4% higher than the 78.3 reading in May 2010. It was the first annual increase in the index since April 2010; the monthly increase was the strongest since last November when it rose 10.6%. The gain beat Wall Street expectations of a rise of 3%.

The large year-over-year gain, however, was due largely to the expiration of the federal home-buyer tax credit at the end of April, 2010 for deals closed before June 30, 2010. Still, the rise in the PHSI signals increases to come in existing home sales in June and July.

"Absorption of inventory is the key to price improvement, and this solid gain in contract signings implies that home values in many localities are or will soon be stabilizing as inventories get absorbed at a faster pace," said Lawrence Yun, NAR chief economist. "Some markets have made a rapid turnaround, going from soft activity to contract signings rising by more than 30% from a year ago, including areas such as Hartford, Conn.; Indianapolis; Minneapolis; Houston; and Seattle."

Contract signings were up across the board, led by a 12.9% gain in the West to a reading of 100.6, 13.5% ahead of May, 2010. The PHSI in the Northeast rose 7.3% to 69.2, 4.4% above a year earlier. The Midwest jumped 10.5% to 82.8, 17.2% ahead of May 2010. The South rose 4.1% to an index of 95.0, 14.6% percent higher than last May.

"Home sales still could be 15% to 20% higher," Yun said. "If banks would simply return to normal sound underwriting standards and begin lending to more creditworthy borrowers, we’d get a much faster recovery in the housing sector."

If I can shed more light on the real estate market – or provide you with more information, don’t hesitate to call on me!

Larry Miller

A Great Time to Buy!

It’s a Great Time to Buy!

If you’re planning to buy a house right now, the next few months may be the best time. Waiting for both housing prices and interest rates to fall may not be a good strategy for potential homebuyers since analysts don’t expect any significant declines in these two most important home-buying factors. These real estate trends suggest that Buyers should get into the housing market sooner than later.

1. Lowest Housing Prices in Years

2. Interest Rates at a 50-Year Low

3. Interest Rates Expected to Go Up

4. Adjustable Rate Mortgages at Record Lows

5. Low Down Payment Mortgages Available

6. Easy to Qualify, Easy to Borrow

7. Lenders Offer No-Fee Mortgages

8. Home Builders are Eager to Sell, Offer Incentives

9. Motivated Home Owners are Ready to Sell

The Bottom Line

With a convergence of the factors above, all of which are favorable to the prospective home buyer, there may not be a better time to buy than right now. It’s a buyer’s market, but like everything else in life, the bargain deals won’t last.

If you or someone you know is thinking about buying and would like to explore your options, please feel free to contact me. I’m more than happy to help you and your friends & associates.

Larry Miller

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Interest Rate Chart

I just wanted to give you the latest interest rate chart.

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