June 6th Rates

High Credit Score = Low Mortgage Rate

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans. There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.










To see this file clearer please click on the following link: http://www.web2real.com/June6Rates.pdf

Where McCain, Obama Stand on Housing

The following article is from Realtor Magazine. June 5th 2008

As the race for the presidency shapes up as a contest between Sen. John McCain, the presumptive Republican nominee, and Sen. Barack Obama, who will claim the Democratic nomination, here are their initial positions on housing and related economic issues.
McCain:
1. Proposes to spend up to $10 billion to allow some home owners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Maintains that government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help home owners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.

April Market Report

A comparison of April 2008 with that of 2007 shows that new listings decreased 11.7% Closed sales were down 35.8%, while pending sales fell 34.2%. At the month's rate of sales the 2,252 active residential listings woulds last approximately 9.5 months. However based on the chart below houses for the month of April are staying on the market for less days in comparison to the last 5 months.

For Further information Please click on the following link: http://www.web2real.com/2008AprilLaneMarketAction.pdf

May News Letter

Please visit the following link to view the May Realty Times news letter.

http://realtytimes.com/nlnews.htm?open&Vol=c&ID=sallyjostevewickham

Real Estate Outlook: State of the Economy

Here's how a top mortgage industry economist sees conditions in the market at the moment: It's all kind of "flat", says Orawin, senior forecast economist for the Mortgage Bankers Association of America.
What Dr. Velz was referring to were the latest big-picture, "macro" numbers on the U.S. economy that underpin the housing market: The gross domestic product or GDP -- all the goods and services generated in the national economy -- registered a zero point six (0.6) growth rate in the first quarter.
No question that's pretty anemic. But it's better than the negative growth predictions that had been made by many Wall Street analysts.
In the latest month, manufacturing production was better than just about anybody expected -- factory orders jumped by 1.4 percent in March. No big deal you say? Well maybe, but it was the first increase in factory orders we've seen in the last three months.
The employment picture was also better than projected. The US economy lost 20,000 jobs in the most recent month, which is not good. But Wall Street had forecast an 80,000 job loss number -- and the stock market took a nice bounce on the news of the smaller loss.
Plus, the national unemployment rate dropped to 5 percent from 5.1 percent.
On top of all this, the Federal Reserve did precisely what most analysts expected -- cut the short-term federal funds rate by another quarter of a point.
Now that doesn't translate into lower 30-year mortgage rates, but it is very welcome news for millions of people with home equity credit lines and adjustable-rate mortgages heading for payment resets.
The fed funds rate is now at 2 percent, and the prime bank rate is just 5 percent - which is outstanding -- and should eventually have a stimulative effect throughout the economy.
Mortgage rates also fell slightly last week. Average thirty year rates inched downward to 6.01 percent, according to the Mortgage Bankers, and 15 year rates averaged 5.5 percent.
All in all, things could be worse. And they could be better. We are all paying horrendous gas and food prices and that psychology diminishes consumers' appetites to buy and sell houses.
On the other hand, the underlying US economy is defying the pundits, hanging in there like a boxer who refuses to go down. Home prices and the cost of money are more affordable, and a number of local real estate markets are picking up on that combination -- and improving.
So: the economy may be flat. But considering the alternatives, flat looks relatively favorable at the moment.

Written by Kenneth R. HarneyMay 9, 2008

Market Predictions for the State of Oregon

The following article is gleaned from http://www.housingpredictor.com/oregon.html.

New businesses moving to the state produced record high home prices in Oregon, but the times have been changing in Oregon real estate. Housing sales have slacked off. Home auctions are becoming more common place and the once burgeoning economy is beginning to weaken.
Oregon has been high on the list with many appreciating housing markets for more than three years, but the boom days are long over. A glut of unsold homes is depressing prices, and the growing inventory will have a major impact on the state’s markets, according to the Housing Predictor forecast.
Don’t look for Oregon housing markets to crash any time soon, however, as newcomers continue to move to Oregon for jobs and buy homes to have a roof over their heads.
In Eugene, which has exploded with growth in the last five years with new developments, the housing market has also slowed. But a major new employer is moving to Eugene to supply a breath of fresh air to the economy.
The housing slow down has resulted in layoffs at lumber companies, which is one of the region’s largest employers. The down turn has effected the area’s home prices, and is readying to send Eugene homes 8.0% lower in 2008, Housing Predictor forecasts.

Market Report March 2008

Looking at March 2008 compared with March 2007, the number of new listings decreased 9.5%. Additionally the number of closed sales declined 29.1% and the pending sales decreased 28.7%. At the month's rate of sales the 2,074 active listings would last 8.4 months.

This is a Decrease in Inventory from the beginning of the year when it was at 10.2 compared to 2006 when themarket was still hot with an inventory of 3.8.