Real Estate Information

What's the path to extraordinary achievement? When you're finished, keep going.

Don't settle for doing just enough. Get yourself excited by the opportunity to do more. 

Fortune favors those who transform fleeting time into lasting value. Time is coming your way right now, so use it to do something wonderful and worthwhile that exceeds even your own expectations.

And what exactly would that be? Whatever you can dare to imagine.

Practice thinking with no limits and you'll find yourself living with no limits. See great value in the obstacles and challenges, and you'll find yourself joyfully thankful for the opportunities they bring.

Go beyond what you know you can do, and suddenly you'll know you can do much, much more. Life is truly great because you can make it even greater.

Author:  Buffini & Company

Perhaps you have no plans to buy or sell a home right now, but you are curious about your possibilities. Real estate professionals can answer any questions you may have about the complexities of a real estate transaction and provide you with information to help you make a decision.

Call or send an email if you would like to discuss the local real estate market and determine whether it is a good time for you to buy or sell. If you are a first-time buyer, you may have questions about legal descriptions, fair housing laws or sources of financing. You may be curious about how sales prices are set.

A real estate agent’s job is diverse, and the best agents are excellent sources of information. Each day, real estate agent’s are actively involved with mortgage lenders, attorneys, surveyors and taxing authorities, discussing the latest developments in our ever-changing marketplace. Finding the right real estate agent is like finding the right physician. The help of a professional can help satisfy your curiosity. Call or email with your real estate questions.

Inflation and Mortgage Rates Remain Low

A wide range of major economic data released during the week and comments from the Fed reinforced the consensus outlook for the economy. Economic growth appears to be on track for gradual improvement, while inflation is not a concern in the short-term. With few surprises this week, mortgage rates ended the week nearly unchanged.

The economy is currently experiencing moderate economic growth with low inflation. In a speech on Tuesday, Fed Chief Bernanke indicated that the recession is "very likely over". Retail Sales and Industrial Production showed nice increases this week. Housing Starts, Building Permits, and Homebuilder Sentiment also moved higher. Meanwhile, there have been few signs of inflation in the short-term. For example, Core CPI rose at a modest 1.4% annual rate, the lowest annual rate since February 2004. Tame inflation readings have helped mortgage rates stay at low levels.

Recently, the Fed has been purchasing about $25 billion of mortgage-backed securities (MBS) each week, which represents a very high percentage of the average new issues. At this pace, the Fed will purchase the entire $1.25 trillion authorized for the program by the end of the year, when it's currently scheduled to discontinue its MBS purchases. On Wednesday, at the conclusion of next week's Fed meeting, investors will be hoping to receive an update on the MBS purchase program. The majority outlook is that the Fed will purchase the full $1.25 trillion and end the program, possibly by gradually reducing the level of weekly purchases and extending them into next year. Still, a significant number of investors expect the Fed to increase the limit, while others think the Fed will end the program early. Since mortgage rates are largely determined by MBS prices, changes in the level of demand from the Fed could have a large impact.

Author:  Mortgage Times

Unemployment Rate Jumps

Investor sentiment about the economic recovery fell this week, and the stock market declined. Expectations for slower economic growth are favorable for bond markets, including mortgage-backed securities (MBS), and mortgage rates ended the week a little lower.

The important monthly Employment report showed mixed results. Against a consensus forecast for a loss of -225K jobs in August, the economy lost -216K jobs. This was the smallest level of monthly job losses since August 2008 and was far below the monthly average of -691K seen during the first quarter of the year. The biggest surprise in the data came from the Unemployment Rate, which jumped from 9.4% to 9.7%, the highest level since 1983. The unexpected increase was mostly due to previously discouraged workers returning to the labor pool to look for jobs. Average Hourly Earnings, a proxy for wage growth, rose at a moderate 2.6% annual rate.

The future of Fannie Mae and Freddie Mac made the headlines this week when the Mortgage Bankers Association (MBA) released its restructuring proposal. While the MBA suggested the elimination of the two agencies, it would replace them with new entities which would perform many of the same functions, with many of the same people. Its plan would maintain a government guarantee of principal and interest for MBS investors. The two agencies have played a pivotal role in keeping mortgage rates low and in expanding home-ownership, and the MBA proposal would retain these benefits. It's very early in the process, and the Obama administration indicated that its proposals for Fannie and Freddie may not be revealed until early next year.

Author:  Mortgage Times

Mortgage Rates Hold Steady

There were few surprises in the economic data released this week, and the record $109 billion in Treasury auctions went smoothly. As a result, it was a quiet week for mortgage markets. This week's economic data showed signs that the economy is gradually improving, while inflation is not a concern right now. Demand remained solid for the Treasury auctions. Mortgage rates ended the week nearly unchanged.

Last week, the Fed increased its weekly mortgage-backed securities (MBS) purchases to about $25 billion, and it maintained that level this week. Prior to that, the Fed had purchased roughly $20 billion per week for a couple of months. The current pace would lead to total purchases of the authorized $1.25 trillion by the end of the year, which is when the program is scheduled to expire. Mortgage rates are largely determined by MBS prices, and the added demand from the Fed has helped to keep mortgage rates low. In a speech this week, the Fed's Lacker suggested that with the economy improving the Fed may not need to purchase the entire $1.25 trillion of MBS. Lacker's comments caused little reaction, as his views are often contrary to those of the other Fed officials, but if that were to happen, then mortgage rates would almost certainly move higher. Mortgage investors will be closely watching the Fed's plans for this program.

The housing data released this week was again positive. July New Home Sales rose 10% from June to the highest level since September. Inventories dropped to a 7.5-month supply, which was the lowest level since April 2007. This data follows a similar rise in July Existing Home Sales announced last week.

Author:  Mortgage Times

The Top Ten Ways to Prepare for Retirement

Planning for retirement, usually a major financial concern for those over age 40, has become even more prevalent now that the huge postwar baby boom generation is moving through middle age.

Various surveys indicate that preparing for retirement already ranks as a primary financial goal. A recent survey of mutual fund shareholders showed that 40% ranked retirement planning as their most important financial objective, and two-thirds considered it "very important."

The studies reveal that people not only look forward to retirement, but many also expect to retire early. In addition, retirees are apt to live longer as improvements in health care extend life expectancy. People retiring at age 60 today are expected to live another 25 years, or more than half of the length of their working careers. This makes the challenge of accumulating enough money for retirement even more difficult, since these savings may have to last longer and there will be less time to earn them.

While it's clear that retirement planning has become a leading financial goal, the big question is whether people will be financially prepared to retire when they want to.

1. Know your retirement needs.

Retirement is expensive. Experts estimate that you'll need about 70% of your pre-retirement income- for lower earners, 90% or more - to maintain your standard of living when you stop working. Understand your financial future.

2. Find out about benefits.

Contact the appropriate government department of labor/human resource office in your area to obtain details on payment rates.

3. Learn about your employer's pension or profit sharing plan.

If your employer offers a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement if you request one. Before you change jobs, find out what will happen to your pension. Learn what benefits you may have from previous employment.

4. Contribute to a tax-sheltered savings plan.

If your employer offers a tax sheltered savings plan, sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, deferral of taxes and compounding of interest make a big difference in the amount of money you will accumulate.

5. Ask your employer to start a plan.

If your employer doesn't offer a retirement plan, suggest that it start one. Simplified plans can be set up by certain employers.

6. Start your own Retirement Savings.

You can put money aside and delay paying taxes on investment earnings until retirement age. It's never too late to start.

7. Don't touch your savings.

Don't dip into your retirement savings. You'll lose principal and interest, and you may lose tax benefits.

8. Start now, set goals, and stick to them.

Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement saving a high priority. Devise a plan, stick to it, and set goals for yourself. Remember, it's never too late to start. Start saving now, whatever your age.

9. Consider basic investment principles.

How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you'll have saved at retirement. Know how your pension or savings plan is invested. Financial security and knowledge go hand in hand.

10. Ask questions.

These tips should point you in the right direction, but you'll need more information. Talk to your employer, your bank, your union, or a financial advisor. Ask questions and make sure the answers make sense to you. Get practical advice and act now.