What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Slightly Higher
This Week: 4.92%
Last Week: 4.87%
1yr Ago: 6.46%
15-yr Fixed – Slightly Higher
This Week: 4.37%
Last Week: 4.33%
1yr Ago: 6.14%
Jumbo Fixed
Average 30-yr Fixed: 5.895%
Highlight of This Week’s Major Economic Reports
Who would’ve thought a [...]
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Slightly Higher
This Week: 4.92%
Last Week: 4.87%
1yr Ago: 6.46%
15-yr Fixed – Slightly Higher
This Week: 4.37%
Last Week: 4.33%
1yr Ago: 6.14%
Jumbo Fixed
Average 30-yr Fixed: 5.895%
Mortgage Market Update
Highlight of This Week’s Major Economic Reports
Who would’ve thought a few months ago that we’d see the Dow top 10,000 again this year, but here we are at the beginning of the 4th quarter, and the stock market seems to be on a relentless drive, further fueling what is now the expectation of economic growth before the end of the year. And, while money was being poured into the stock market, they were pulled out of the safe haven of US Treasuries, which has consequently caused the spike in interest rates.
Furthermore, recent readings on local market conditions across the country have revealed growing stability – and even some consistent improvement – the likes of which we haven’t seen in two years. This supports the consensus that a technical end to the recession is looming near. However, with unemployment still problematic and the issue of health care still unresolved, consumers aren’t feeling as upbeat as the numbers may convey. As a result, consumer spending is still lagging with Retail Sales reporting a 1.5% slide last month.
What to Look for Next Week
More inflation reports and an updated peak at the housing market will headline next week’s economic calendar. Inflation is expected to remain tame, while home sales are expected to post positive results, as first-time buyers flock to take advantage of the tax credit.
Short-Term Rate Outlook
Relatively Unchanged
Stay Informed: What’s in the News
“When Will Recession End?” from Texas A&M Real Estate Center
Three things have to happen before the current recession can be declared ended. One is underway, said Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University.
“I think the economy will begin to turn for the better once the health care and cap-and-trade issues are settled. Those two political debates are creating substantial uncertainty for business owners and investors,” he said.
The personal savings rate is the second trend to watch, said Dotzour.
“Over 70 percent of the U.S. economy is consumer spending,” he said. “When the savings rate finally levels out, consumer spending will start to increase again.”
Increased corporate profits are the third trend that must occur to bring the recession to an end. There is some indication that has already begun. The last three data points were all up. Rising profits lessen the urge for companies to lay off workers.
Research Economist Dr. Jim Gaines added that the increased corporate profits have come from reduced costs, not the kind that leads to expansion.
“Keep your eye on these three issues,” Dotzour said. “When they are resolved, the economy will begin to turn the corner.”
“Texas Cities Labor Away” from Texas A&M Real Estate Center
Four of the five best labor markets in the country are in Texas, according to a new study compiled by Portfolio.com.
Austin leads the way, followed by San Antonio. Houston ranks fourth and Dallas–Fort Worth fifth.
Landing at third is Baton Rouge.
All 100 metropolitan areas in the study, including those in Texas, have seen employment decline since last year. However, while 5 percent of the nation’s private-sector jobs have disappeared since June 2008, the collective decline for the ‘Texas Four’ has been 2.6 percent.
The Texas markets still have 589,500 more jobs than they did five years ago.
Portfolio.com used a nine-part formula to analyze employment trends in the nation’s 100 largest labor markets. The formula used midyear U.S. Bureau of Labor Statistics data for 2004–09, including unemployment rates and trends, and raw and percentage changes in private-sector employment.
Year after year you sign a new lease and move into or extend your time in an apartment. In time this can become tiring, particularly if you don’t have to or want to move anywhere else. Finding a permanent home is often more appealing. For some living situations, a house is too big, while for [...]
Year after year you sign a new lease and move into or extend your time in an apartment. In time this can become tiring, particularly if you don’t have to or want to move anywhere else. Finding a permanent home is often more appealing. For some living situations, a house is too big, while for others it fits perfectly. Assuming you fit into the first need, something small but permanent you have options, the two most popular are co-ops or condo’s.
A condominium you own the four walls around you, from front door to back bedroom. Often in a similar layout as would be an apartment complex. You hold tax and title responsibilities, and like a house, when you buy it you are responsible for everything inside. All repairs, appliances and possible concerns are your concern, an obscure corporate entity. The benefit is that you are building equity and own a solid location for you and your budget.
A Co-Op option is a multi-family dwelling. Instead of owning the living space, you would have a share in the entire community project. This makes your position a vested one in the corporation organizing the community. The monthly fee assessed to each member covers the utilities, grounds care, as well as a handy man who can tend to all of the items in your home and outside associated with the co-op. All taxes are also covered by the monthly fee, making it simple to plan for.
Either option comes with benefits and limitations. Take a moment to discuss your needs with your real estate expert and you will find direction toward the best fit for your needs.
Asset protection is a term many home owners are well aware of, however first time home owners often know little about. Asset protection is the insurance designed to help protect your real estate and the assets within your home, in the event of unexpected emergency. Often this focuses on financial disasters, however, it is not [...]
Asset protection is a term many home owners are well aware of, however first time home owners often know little about. Asset protection is the insurance designed to help protect your real estate and the assets within your home, in the event of unexpected emergency. Often this focuses on financial disasters, however, it is not limited there to. In the end, it is the asset protection that assures the value of the property regardless of the unexpected.
Old time asset protection
When you begin your investigation into asset protection you will need to investigate all possible options. Once you have reviewed the benefits of each option and settled on a plan there will be an assessment done on your home. The insurance company will also asses the demographics of your area. From there they will combine the results and provide an estimate of how much protection is available to you and your home. The agent will take the time to explain the programs they have available and how to select one. Discuss this with your real estate attorney prior to signing the documents.
The final protection will be defined by the state and counties laws in the area. Typically, retirement and disability benefits are not included as part of the protection, however in very unique circumstances it could be made possible. Personal items, such as jewelry, clothing and furniture are also not covered as part of this umbrella; however some states allow a percentage of these assets to be covered.
To assure what you own receives the best coverage when it is needed most, then your hunt for real estate shouldn’t include just loan and house hunting. The search needs to also include your asset protection evaluation. Protect what you have and you will find it is there for years to come.
