Category — Uncategorized

One of the biggest factors effecting the rate markets today is the increasing issuance of corporate debt as the economic outlook improves, the Demand for corporates is increasing and the yields are better than treasuries. The treasury markets have always been considered rock solid safe investments that kept many investors out of the corporate bond market. Today US debt is increasing so rapidly with a Congress and Administration hell bent on more spending, that investors see the gap in safety narrowing.

The bond and mortgage markets will be skittish ahead of the 7 yr auction and with yields at the highs of the year. Trading will be choppy with wide swings now for the next week or so as the pounding today is analyzed in context of the economy, demand for US debt and of course, the equity market that is characterized these days as completely ignoring current economic data in favor of the wider outlook that ion itself is on shaky ground in our judgment.

Regarding market moves like this week’s the speculation from the talking heads runs rampant. The first thing we heard was that the spike is in response to the health care bill. No matter what you are told about the bill cutting the deficit by $130B, it is totally and completely a smoke screen. There isn’t any savvy trader in the markets that believes that; the US deficit is set to increase much more than it would have without that bill. Yes Virginia, it will appear to be a cut but when we look out a few years the reality sets in. No matter how the pie is sliced the bill cannot be funded with tax increases as the plan is constructed, to insure 30 mil more people will cost the taxpayer with higher taxes and more deficit spending. Possibly those sovereign countries funding US deficits are getting a little concerned and in the future demand higher interest rates. Whether the reaction to the health care bill actually caused the rate spike isn’t clear; what is clear though is that Treasury borrowing $192B a month on 2s through 30s isn’t likely to fly much longer with low interest rates.
-Shirmeyer Rate Market Report / Sigma Research, Inc.

Though the dollar has benefited by recent spikes in the market, we would caution that rates will increase over the next 30 days as 2010 continues it’s shake-down cruise.

Wyndham Capital Mortgage rates:
Conventional 30yr Fixed ………………..4.750%
Conventional 15yr Fixed…………………4.250%
Conventional 5/1 ARM……………………3.375%
FHA 30yr Fixed……………………………4.750%
FHA 15yr Fixed……………………………4.250%

Edward Mayor, Wyndham Capital Mortgage (704) 369-2629 ed.mayor@wyndhamcapital.com

Once you find the home you want to buy, the next step is to write an offer – which is not as easy as it sounds.  Your offer is the first step toward negotiating a sales contract with the seller.  Since this is just the beginning of negotiations, you should put yourself in the seller’s shoes and imagine his or her reaction to everything you include.  Your goal is to get what you want, and imagining the seller’s reactions will help you attain that goal.

The offer is much more complicated than simply coming up with a price and saying, “This is what I’ll pay.”  Because of the huge dollar amounts involved, especially in today’s litigious society, both you and the seller want to build in protections and contingencies to protect your investment and limit your risk.

In an offer to purchase real estate, you include not only the price you are willing to pay, but other details of the purchase as well.  This includes how you intend to finance the home, your down payment, who pays what closing costs, what inspections are performed, timetables, whether personal property is included in the purchase, terms of cancellation, any repairs you want performed, which professional services will be used, when you get physical possession of the property, and how to settle disputes should they occur.

It is certainly more involved than buying a car. And more important.

Buying is a major event for both buyer and seller.  It will affect your finances

more than any other purchase or investment.  The seller makes plans based on

your offer that affects his finances too.  However it is more important than just money. In the half-hour it takes to write an offer you are making decisions that affect how you live for the next several years, if not the rest of your life.  The seller is going to review your offer carefully, because it also affects how he or she lives the rest of their life.

That might sound overly dramatic or cliché. Every real estate book or article you read says the same thing.  They say it because it is true.  Unless you have done this many times and feel comfortable that you understand everything involved, you should seek assistance from a professional. 

If you have any questions feel free to visit either Fort Mill Real Estate  or Rock Hill Real Estate.

As you have probably heard, selling your home in this market can be a difficult proposition.  Even though I believe the market is going to heat up and be better than it has in the last two years, it’s still important to make sure you maximize every opportunity to make sure your home stands out from the rest.  Outside of using a Realtor to market your property, staging your property is your next best bet.  Hiring a professional stager is
a great idea but lets face it, not all of us can afford to hire an expert to make the necessary changes.

Don’t despair; here are a few minor rules to help you make your home shine:

Depersonalize- Many of the items and touches that make your house your home are actually distractions to buyers.  You need to remove all of the items that would remind them that you live there.  Family photos, awards, trophies, antique teacups, basically anything that would interfere with a buyer believing that your home could be theirs.

Bathrooms included.  Make it look like a hotel bathroom.  Just pack your junk away in a box when you have showings.

De-clutter—This goes hand in had with depersonalizing.  The goal is to create a sense of space in all rooms and your closets.  Take all of the extra stuff that you have just sitting around and remove it.  Excess furniture, those knickknacks we love, team banners or
paraphernalia, your collection of National Geographic magazines-must go.

Clean-  Yeah, yeah, I know.  Everyone knows this one but surprisingly few actually do what’s needed.  Keep in mind that people will look everywhere. Pretend you will be fined $1000 dollars if your house is not spotless.  Windows, baseboards, air intake vents, closets and bathrooms.  Resign yourself to be inconvenienced until your home sells.

Lighten and Brighten- Light, light, light.  Make sure at showings all of your blinds are open.  Replace all low watt bulbs with high watt.  Make the inside of your home shine.
And again, clean your freaking windows.

Paint- This one is important but I understand how inconvenient this can be.  Just focus on painting the loud colors.  Maybe you wanted to make a certain room your own and painted it a color that stands out from the norm or if you have kids and you allowed them to pick their own shade.  Repaint those rooms in a neutral shade.

Again I recommend you hire a professional home stager.  They are usually well worth the money and most of them also have differing levels of service.  One of them might fit you.

Good luck and if you have any more questions visit us at Rock Hill Real Estate or Fort Mill Real Estate

A three month look at MBS (mortgage backed securities) tells us that prices today are at the highest point of the year thus far.  As mortgage backed securities increase, interest rates will continue to fall and may hit all-time lows in coming weeks.  Today’s question would be “What will send MBS’s prices even higher?”  The answer would be strong signs that the economic recovery is failing both at home and abroad.

Greece’s debt level is a high concern. Goldman Sachs was quick to point out that if Greece is handled incorrectly by the Euro Zone then a large portion of Europe’s GDP could be at risk.  That would be the catalyst that would encourage investors to pay higher prices for safer assets such as Treasuries and MBS and pull money from riskier assets causing rates to fall. and setting the economy back three months and erasing the hopes of a strong first quarter. 

Though the thought falling interest rates is attractive, be cautious of the banks putting their wallets away and shoring up for a rough spring.   With first-time buyer incentives ending in April, all-time low rates, and the most liberal lending environment in the last year, it may be wise to act now. 

Edward Mayor, Wyndham Capital Mortgage (704) 369-2629

Wyndham Capital Mortgage rates:

Conventional 30yr Fixed ………………..4.750%

Conventional 15yr Fixed…………………4.125%

Conventional 5/1 ARM……………………3.500%

FHA 30yr Fixed……………………………4.750%

FHA 15yr Fixed……………………………4.250%