As the long anticipated Memoria Day weekend approaches, I wanted to share a few thoughts about the state of the real estate market and how improving sales of existing homes is impacting the market. The numbers provide a good and important confirmatioon that we are in a recovery mode and the housing market may be leading us out of the rut we've been in.
The number of existing homes to close their sales in April rose by 3.4% above the number in March. It is a very impressive jump, especially after the prior month's dissappointing 2.8% decline. Bloomberg in a survey has been told that sales would jump to 4.660 million, but this tells us that current set of figures don't result in an unexpectedly large jump in sales volume, which would have given them more of an impact on the markets.
Here is an important bit of information to me: Discounted and distress properties are playing a far smaller role in the real estate market at this point. The National Association of Realtors (NAR) estimated that the number of distress sales in April totaled less than a third of all sales in the month. NAR also found that the smaller number of lower priced homes on the market and among the sales is pushing the median price higher. The median home price, its turns out, rose by 10.1% year-over-year, and that's the best number we've seen in over six years.
Truly, all the news seems to be pointed in the right direction! Are we ready to break out the bubbly? I'm not ready for that. Should we elect a more market friendly President and congress to go with it, then I'll break out a large bottle of Frances's best!!
Thursday, May 24, 2012
Wednesday, May 23, 2012
As a person in the Mortgage Lending business, now is a great time to think about what to do with your curent mortgage. Is the rate in the 5.5% or above range? If so, you can refinance right now to much lower rates, or drop your term to 10 to 15 years! In some cases, the 15 year rate will allow you to have a payment about the same as your 30 year rate. My suggestion is to allow us to take a look. We can line up three to four loans side be side and you can see the comparisons, then determine if refinancing is something you may want to do.
FHA is coming with a new streamline refinance starting in June of this year. There is no income verification and no appraisal needed. You will have to prove you have made your payments on time for at least 12 months, and we can do that with your credit report or do a verification of mortgage (VOM). The upfront mortgage insurance will only be 1% instead of the 1.75% for a new purchase. Also, the monthly mortgage insurance will be set at 0.5% instead of the 1.25% on a new purchase. Therefore, should you currently own an FHA mortgage, and you originated that mortgage before June 1, 2009, you are elligible to participate. This is an excellent program and my only wish is that HUD would allow the origination to be at least June of 2010 for elligibility! Call me if you have questions. 601-829-5001.
Joe
FHA is coming with a new streamline refinance starting in June of this year. There is no income verification and no appraisal needed. You will have to prove you have made your payments on time for at least 12 months, and we can do that with your credit report or do a verification of mortgage (VOM). The upfront mortgage insurance will only be 1% instead of the 1.75% for a new purchase. Also, the monthly mortgage insurance will be set at 0.5% instead of the 1.25% on a new purchase. Therefore, should you currently own an FHA mortgage, and you originated that mortgage before June 1, 2009, you are elligible to participate. This is an excellent program and my only wish is that HUD would allow the origination to be at least June of 2010 for elligibility! Call me if you have questions. 601-829-5001.
Joe
Friday, May 27, 2011
Happy Memorial Day
Memorial day is a very special day to remember those who have given the ultimate sacrafice for the country in which they loved. I hope you take a minute during the weekend to say a prayer for our country, leaders, and the men and women of the armed forces who protect our way of life.
Have a wonderful time, crank up the grill and please give thanks to those who helped make it all possible. Here is a link to the history of how Memorial Day became a reality. Enjoy your weekend!
http://www.usmemorialday.org/backgrnd.html
Have a wonderful time, crank up the grill and please give thanks to those who helped make it all possible. Here is a link to the history of how Memorial Day became a reality. Enjoy your weekend!
http://www.usmemorialday.org/backgrnd.html
Tuesday, May 17, 2011
Bonds Continue Rally
These past few days has been good for Mortgage Backed Securities and the Bond market. The rally has pushed Bond prices above the 200 day moving average, causing interest rates on a 30 year fixed rate loan to fall into the middle 4% range. How long the rally will last is uncertain. As the economy continues to weaken and news of unemployment, lower housing starts, and high gas prices, hit Americans hard, the "Safe Haven" of bonds has driven bond prices to almost the highs not seen since last November 2010.
If you are one of those people who have a 6% loan on your home and want to lower your payments, now is a tremendous time to make that happen. Also, the price of existing homes are at great prices as sellers want to sell and will help with closing costs if you are considering a purchase. With all the negative news, there are some positive signs when it comes to refinancing or purchasing a home right now.
If you are one of those people who have a 6% loan on your home and want to lower your payments, now is a tremendous time to make that happen. Also, the price of existing homes are at great prices as sellers want to sell and will help with closing costs if you are considering a purchase. With all the negative news, there are some positive signs when it comes to refinancing or purchasing a home right now.
Thursday, May 12, 2011
Producer Wholesale Inflation...
...is at 6.8%! That is very hot and is a result of the Producer Price Index (PPI)coming in at 0.8% for April. This high number was a much higher than anticipated number of 0.5%! When you strip out food and energy costs, Core PPI is now at 0.3% for the month, which now makes the year over year Core PPI Rate at 2.1% It is my belief that Producer or Wholesale inflation does not always get passed on to the consumer. At some point one of two things are bound to happen - either the company, which is now stuck with increased costs, must pass the increase to the consumer by raising prices, thus boosting consumer inflation, or the second option is for the company to eat those higher costs, whih will hurt earnings, crippling the ability to expand and/or create jobs, which then causes futher slowing of economic growth. It is a vicious cycle which must be broken and government needs to get out of the way and allow companies to do what they do best, and that is produce, make profits, and employ people.
The Initial Jobless Claims were 434,000, above expectations of 423,000, and way above the 400K mark, providing evidence that the struggles in the labor market are not "transitory".
Rates have remained below the magical 5% range for a couple weeks now. What a great time to buy a home, if you have a good, solid job and good credit!
The Initial Jobless Claims were 434,000, above expectations of 423,000, and way above the 400K mark, providing evidence that the struggles in the labor market are not "transitory".
Rates have remained below the magical 5% range for a couple weeks now. What a great time to buy a home, if you have a good, solid job and good credit!
Friday, May 21, 2010
The Bond Market's Rise
This past week has been amazing as stocks have fallen which has pushed the Bond market higher than we've seen at anytime this year. The fallout over Greece's failure to meet its debt obligations and the falling EU, has made the US Bond Market a safe place for investors to store their money.
What does all this mean to the mortgage business and your ability to use this as an opportunity save thousands of dollars? I'll try to explain! If you currently have a 30 year fixed rate mortgage, and have a some equity in your home, you could take your loan rate down to 4.5% and save thousands of dollars over the life of the loan, plus increase your net cash flow by not paying as much for your monthly home investment. Another thing, you may have...say 22 years left on your current 30 year loan and would enjoy having the property paid for sooner, you could take out a 15 year loan at 4% or less, depsnding on the market, knock off seven years off your payment schedule, and save a ton of money in interest! If you want to have the numbers on your particular situation then visit my website, www.joeharris.com or send me an email. There is not cost or obligation, be happy to help.
What does all this mean to the mortgage business and your ability to use this as an opportunity save thousands of dollars? I'll try to explain! If you currently have a 30 year fixed rate mortgage, and have a some equity in your home, you could take your loan rate down to 4.5% and save thousands of dollars over the life of the loan, plus increase your net cash flow by not paying as much for your monthly home investment. Another thing, you may have...say 22 years left on your current 30 year loan and would enjoy having the property paid for sooner, you could take out a 15 year loan at 4% or less, depsnding on the market, knock off seven years off your payment schedule, and save a ton of money in interest! If you want to have the numbers on your particular situation then visit my website, www.joeharris.com or send me an email. There is not cost or obligation, be happy to help.
Sunday, May 16, 2010
A Day Cooking Ribs
When my son, Justin decided to drive home from Nashivlle, he asked if we could fire up the Big Green Egg and cook some ribs. Seems he has never seen me cook ribs on the Egg, and wanted to have some fun watching how I managed to do ribs which in his opinion, are the best he's ever had.
Although the day was rainy, we rolled the Egg under the overhang so we and the big cooker wouldn't get soaked. Since the BGE uses those natural wood charcoal chunks, and the temperature inside the grill will be kept at 225 degrees, there won't be too much smoke pouring into the house with the grill being so close. When I do ribs, I like to purchase those St. Louis style ribs as they have great taste, plus there just seems to be more meat on the bone! I take that membrane off the back by sliding a kitchen knife under the thin membrane, then grabbing hold and it will pull off pretty easily. This is a big help in the way the ribs taste and keeps them more tender.
Once we get the membrane off, I pat them dry, rub some olive oil over them, then use a good sprinkling of Jacks's Old South rib rub. I sometimes make my own, but Jack's Rub is as good as any I'll ever make, plus all I have to do is grab the container and start shaking. I'm pretty liberal with the rub too, futhermore, once the rub is covering the ribs, I use my hands and massage the mixture into the meat, then wrap them tightly in plastic wrap, stack them one on top of the other, and into the fridge they go for at least three to four hours, but most preferably overnight.
About 30 minutes before the ribs are to go inside the BGE, I let them rest outside the fridge so the meat will warm, but not quite to room temp. This way when cooked, you will see a smoke ring just inside the meat. This is supposed to be a sign of well cooked ribs, at least according to the guys who do championship ribs. Ok...now we have the Egg at 225 and the ribs go on the rack, with the plate setter in place. A "Plate Setter" is a ceramic covering which covers the hot coals and prevents the ribs from searing or burning. A good way to cook indirectly, which is what you want to go "low and slow."
I have a spray bottle which is filled with a liquid of apple juice, white vinegar, worchestershire, and Tobasco. This is sprayed onto the ribs every 30 minutes, which keeps the ribs moist so they won't dry out. The ribs are cooked about six hours, maintaining the 225 degree heat. During the last 30 minutes, I swab the meat with a bar bq sauce, then stack them one of top of the other, then rotate them about every seven or eight minutes so the sauce will carmalize. Once time is up, the ribs are taken out to let them rest about 15 minutes then the fun begins. I promise, you do ribs this way and you will love not only doing it (the cooking), but eating them will be an amazing, delicious, fun filled dinner!
Although the day was rainy, we rolled the Egg under the overhang so we and the big cooker wouldn't get soaked. Since the BGE uses those natural wood charcoal chunks, and the temperature inside the grill will be kept at 225 degrees, there won't be too much smoke pouring into the house with the grill being so close. When I do ribs, I like to purchase those St. Louis style ribs as they have great taste, plus there just seems to be more meat on the bone! I take that membrane off the back by sliding a kitchen knife under the thin membrane, then grabbing hold and it will pull off pretty easily. This is a big help in the way the ribs taste and keeps them more tender.
Once we get the membrane off, I pat them dry, rub some olive oil over them, then use a good sprinkling of Jacks's Old South rib rub. I sometimes make my own, but Jack's Rub is as good as any I'll ever make, plus all I have to do is grab the container and start shaking. I'm pretty liberal with the rub too, futhermore, once the rub is covering the ribs, I use my hands and massage the mixture into the meat, then wrap them tightly in plastic wrap, stack them one on top of the other, and into the fridge they go for at least three to four hours, but most preferably overnight.
About 30 minutes before the ribs are to go inside the BGE, I let them rest outside the fridge so the meat will warm, but not quite to room temp. This way when cooked, you will see a smoke ring just inside the meat. This is supposed to be a sign of well cooked ribs, at least according to the guys who do championship ribs. Ok...now we have the Egg at 225 and the ribs go on the rack, with the plate setter in place. A "Plate Setter" is a ceramic covering which covers the hot coals and prevents the ribs from searing or burning. A good way to cook indirectly, which is what you want to go "low and slow."
I have a spray bottle which is filled with a liquid of apple juice, white vinegar, worchestershire, and Tobasco. This is sprayed onto the ribs every 30 minutes, which keeps the ribs moist so they won't dry out. The ribs are cooked about six hours, maintaining the 225 degree heat. During the last 30 minutes, I swab the meat with a bar bq sauce, then stack them one of top of the other, then rotate them about every seven or eight minutes so the sauce will carmalize. Once time is up, the ribs are taken out to let them rest about 15 minutes then the fun begins. I promise, you do ribs this way and you will love not only doing it (the cooking), but eating them will be an amazing, delicious, fun filled dinner!
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