Posted on 8th July 2011 by Anthony in The Economy
foreclosures, Greece, jobs, Maricopa, Maricopa Arizona, Maricopa AZ, Maricopa real estate, market, pinal county arizona, real estate, Volcano
The year is half-over. It’s an opportune time to take stock of analyst predictions made at the start of the year, and to recognize that the “experts” can be wrong as often as they are right. Maricopa real estate
For as much experience and authority an expert brings to the conversation, though, nobody can accurately predict the future.
As such, there’s often disagreement.
Looking back to December, some housing analysts called for a market rebound this year; while others called for a fall. With respect to mortgages, some said rates had nowhere to go but up; while others expected more dips.
As a layperson, how do you know who will be right?
In short, you can’t.
Predictions are a tricky business because they’re guesses about the future based on the world as it exists today. When the predictions listed earlier were made, the world was a different place.
A lot has changed since January:
- Slowing job growth has suggested to slower U.S. economic growth
- Food and energy costs have spiked, adding inflationary pressures to the economy
- Eurozone debt issues have grown, punctuated by a near-Greek default
- Tsunamis have caused widespread damage in Japan
- Earthquakes, floods and volcanoes have harmed economic output
None of these events had occurred as of December, when the original predictions were made. Yet, each of these developments has made a deep impact on housing, and on the economy.
So, what’s a Casa Grande homeowner to do? Think of the present instead.
First, mortgage rates are low today — extremely low by historical standards. Second, home values have been slow to rebound through most U.S. markets. Combined, these factors have made homes more affordable than it any time in recorded history. It’s not only cheap to buy a home right now, it’s cheap to refinance one, too.
Analysts are saying the home prices will rise this year, and mortgage rates will, too. Those predictions may ultimately be proven true. Until the future arrives, though, those predictions are just guesses. If you are looking for Maricopa real estate please visit www.pru1re.com for more information about the city of Maricopa and the great state of Arizona.
Posted on 2nd May 2011 by Anthony in Around The Home
Cleaning, Eco-Friendly, house cleaning, Maricopa, Maricopa real estate, real estate, Windows
Your home’s windows look best when they’re clean on both the inside and the outside. It’s a quarterly housekeeping chore, at minimum, and should coincide with seasonal changes.
But washing windows can be a drag on the environment. Most homeowners use multiple rolls of paper towels to finish the job, and many commercial window cleaners are chemical-loaded.
Fortunately, there’s a way to wash your windows, be environmentally conscious, and still get great results. Here’s how to do it.
First, wait for a cloudy day. Cloudy days are best for cleaning windows because sunny days create more streaking; the sun can dry the windows before you’ve had a chance to polish them.
Next, make your cleaning solution.
If this is your first time cleaning your home’s windows, in a spray bottle, mix 8 parts water with 1 part each of white vinegar and environmentally-friendly dish detergent. The dish detergent is a necessary additive because it removes waxy buildups from prior washings with commercial cleaners.
Then, for washings beyond the initial cleaning, in the spray bottle, mix 1/2 teaspoon of vinegar for each cup of water instead.
Next, using reusable microfiber cloths, wash one side of the window with horizontal strokes, and the other with vertical strokes. This way, if there’s a streak, you’ll know on which side of the window it is.
Lastly, rinse your cloths often in cold water and be sure to wash top-down.
When you’re finished, your windows will be clean, and you’ll have made a near-zero environmental impact. And remember — you don’t have to wash your windows all at one. You can spread it out over time if that’s easier. If you are looking for Maricopa real estate visite www.pru1re.com.
Posted on 27th April 2011 by Anthony in Federal Reserve | Industry News
Arizona, arizona mortgages, Ben Bernanke, Casa Grande Arizona, casa grande real estate, Fed Funds Rate, FOMC, Maricopa, Maricopa Arizona, Maricopa AZ, Maricopa real estate, mortgages
Earlier today, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.
The vote was 10-0 — the third straight meeting after which the FOMC vote was unanimous.
In its press release, the FOMC noted that since its March 2011 meeting, the economic recovery is proceeding “at a moderate pace” and that labor markets conditions are “improving gradually”. Household spending and business investment “continue[s] to expand” but the housing sector remains “depressed”.
Furthermore, the FOMC’s statement discussed the Federal Reserve’s dual mandate of (1) Managing inflation levels, and (2) Fostering maximum employment. The statement acknowledged recent inflation pressures on the economy, but it expects those pressures — because they’re related to oil and food prices — to be “transitory”. Unemployment remains “elevated”.
The FOMC statement also re-affirms the group’s plan to keep the Fed Funds Rate near zero percent “for an extended period” of time, and to keep its $600 billion bond market support package — more commonly called “QE2″ — intact.
The statement’s verbiage suggests that a third support package may be created after QE2 ends in June 2011, depending on the needs of the economy.
Mortgage market reaction to the FOMC statement has been positive thus far. Mortgage rates in Casa Grande are unchanged, but leaning lower. And, as always, market sentiment could shift quickly. If you like today’s mortgage rates, consider locking in.
The FOMC’s next scheduled meeting is a 2-day event, June 20-21 2011. If you are looking for casa grande real estate visit www.pru1re.com. If you need an Arizona mortgage click here.
Posted on 27th April 2011 by Anthony in Housing Analysis
Arizona new homes, Arizona real estate, buy a new home in arizona, buy a new home in maricopa, Margin of Error, Maricopa, Maricopa AZ, Maricopa real estate, New Home Sales, new home sales maricopa, New Home Supplies, relocating to Arizona
After posting an all-time low in February, New Home Sales rebounded strongly last month. This is good news for the Maricopa real estate market.
Based on joint research from the Census Bureau and HUD, 300,000 new, single-family homes were sold on a seasonally-adjusted, annualized basis in March. It’s an 11 percent improvement from February, and right in-line with the 6-month average.
The supply of available new homes improved, too, in March, falling by close to a full month.
At the current pace of sales, the entire new home housing stock would be sold in 7.3 months. This is the second-best reading in a year, a statistic partially-supported by the relatively small number of new homes on the market. In the city of Maricopa new homes supply falls right in line with that reading. As a matter of fact,new homes and reasle real estate is about 7 months of real estate inventory.
There are now just 183,000 new homes available for sale across Maricopa and the country. That’s the smallest reading since the Census Bureau started to keep New Home Sales records beginning in 1995.
However, it should be noted that the March New Home Sales data is suspect. The reading’s margin of error exceeds it actual measurement by almost double. It’s possible that sales volume fell in March instead of rising, therefore. The Census Bureau says as much in its footnotes:
The change [in new home sales] is not statistically significant; that is, it is uncertain whether there was an increase or decrease [in March 2011].
We won’t know for certain until future data revisions are made.
If you’re a home buyer , though, and want to stay ahead of the market, you won’t want to take chances. If the Census Bureau finds its data to be accurate after revisions are made, new home prices will already have started to rise.
You may get your best home value by buying sooner rather than later. If you are looking for Maricopa real estate, visit www.pru1re.com. For real estate mortgages
Posted on 15th April 2011 by Anthony in Housing Analysis
Arizona, Arizona real estate, Bank REO, foreclosures, foreclosures arizona, foreclosures maricopa, Maricopa, Maricopa AZ, Maricopa real estate, real estate, RealtyTrac
Foreclosure activity is much slower this year than last. That is a great sign for home owners in the Maricopa real estate market. Of course Arizona is leading the way along with other states in the foreclosure market, but a slow down in foreclosures at the national level is a good sign.
According to foreclosure-tracking firm RealtyTrac, the number of national foreclosure filings plunged 35 percent in March 2011 as compared to March 2010, a statistic that reflects a more healthy housing market and more robust outlook for 2011.
A “Foreclosure filing” is defined as any of the following : a default notice, a scheduled auction, or a bank repossessions. Foreclosures filings were down in all but 8 states last month.
Activity remains concentrated, too. More than half of all bank repossessions can be tied to just a handful of states.
In March, 6 states accounted for 51% of activity.
- California : 15% of all repossessions
- Florida : 9% of all repossessions
- Arizona : 7% of all repossessions
- Michigan : 7% of all repossessions
- Texas : 6% of all repossessions
- Nevada : 5% of all repossessions
At the other end of the spectrum is Vermont. With just 5 repossessions for all of March, Vermont accounted for 0.008% of repossessions nationwide.
Distressed homes remain in high demand among today’s home buyers, accounting for almost 40% of all home resales. It’s no wonder, either. Distresses home typically sell at a steep, 15 percent discount as compared to non-distressed properties.
Buying foreclosures can be a great “deal”. However, make sure you’ve done your homework.
Buying homes from banks is different from buying a homes from “people”. Contracts and negotiations are different, and homes are often sold with defects.
If you plan to buy a Maricopa foreclosure, therefore, make you you speak with a licensed real estate professional before submitting a bid. You can research a home online and learn a lot of the process, but when it’s time to purchase, put an experienced agent on your side. If you are looking for Maricopa real estate or need an Arizona home mortgage please visit www.pru1re.com.
Posted on 14th April 2011 by Anthony in The Economy
CPI, Inflation, Maricopa, Maricopa AZ, maricopa new homes, Maricopa realtors, relocating to Maricopa AZ
Inflation pressures are mounting in the United States. And, Friday, the Consumer Price Index should prove it.
More commonly called “The Cost of Living Index”, CPI measures cost changes in the typical items bought by American households. Among others, CPI measures goods and service in apparel and recreation; medical care and education; and housing and transportation.
The March CPI data is expected to show an increase in the cost of living for the 17th straight month — a reading that would take CPI to an all-time high.
If you’ve filled your gas tank, sent a child to school, or shopped for groceries, you’re likely not surprised. Household budgets have been squeezed from all angles lately. The dollar’s purchasing power is waning.
This is inflation, defined. And a weaker U.S. dollar is bad for mortgage rates.
The connection between the U.S. dollar and mortgage rates is direct. When inflation pressures rise, mortgage rates in Casa Grande tend to rise, too, because mortgage rates are based on the price of mortgage-backed bonds — a security bought, sold and paid in U.S. dollars
Inflation, in other words, renders mortgage bonds less valuable to investors, all things equal, so investors sell them as inflation pressures grow. More sellers leads to lower prices which, in turn, causes mortgage rates to rise.
It’s why March’s Cost of Living data is so important to rate shoppers and home buyers. Higher levels of CPI can harm home affordability, and stretch your household budget uncomfortably.
As Memorial Day approaches, gas prices are projected to spike, offering little relief from the inflationary pressures in the economy. It’s one reason why mortgage rates should trend higher over the next few months.
If you’re wondering whether to lock or float your mortgage rate, consider locking in. At least today’s rates are a sure thing. Tomorrow’s rates could be much higher.
Posted on 4th April 2011 by Anthony in Around The Home
Casa Grande, Casa Grande arizona real estate, Casa Grande AZ, Cleaning, Grill, homes for sale maricopa, Maricopa, Maricopa AZ, maricopa foreclosures, Outdoor
Whether you barbecue for friends or family once annually, or through all 4 Queen Creek seasons, it’s important to keep a clean gas grill. A well-maintained grill will help your food taste its best — no matter what you’re cooking up.
Cleaning a gas grill is simple and should be performed at least once every 12 months for light use, and once every 6 months for heavy use. You’ll need the following tools:
- A drop cloth
- Aluminum foil
- A regular scrub brush plus a wire brush
- An active garden hose
- Dish detergent
- A soft sponge
- A bucket
- Rubber gloves
With these tools in-hand, follow these basic steps.
First, disconnect the propane tank and move the grill onto the drop cloth. Open the grill and remove its grates and the flame guards (the v-shaped metal pieces on top of the burners). Then, disconnect the igniters and remove the burners. Soak the grates in hot water if they’re excessively dirty.
Set the pieces aside for cleaning.
Next, clean out any loose debris from the bottom of the grill. Use the detergent to make a soapy mixture and scrub the bottom of the grill, including its grill pans and grease trays. Clean the grates at this time, too.
Gently brush the outside of the burners with the wire brush, then allow running water from the garden hose to flow through the tubes to clean out the insides. If the burners appear to be cracked, replace them according to the grill manufacturer’s instructions.
Allow all of the above cleaned pieces to air dry, then reassemble the grill.
Next, clean the outside of the grill using a soapy mixture and a soft sponge, treating early-stage corrosion with some cooking oil applied like car wax. If your grill has a stainless steel exterior, wipe with the grain to minimize streaking. And that’s it!
Cleaning a gas grill can be time-consuming, but better tasting food is worth it. Plus, your grill will last longer.
Posted on 25th March 2011 by Anthony in Mortgage Rates
15-Year Fixed, Amortization, Arizona, Arizona real estate, Casa Grande, casa grande real estate, Maricopa, Maricopa real estate, real estate
It’s a great time for MAricopa home buyers and homeowners to look at the 15-year fixed rate mortgage. Arizona mortgages look cheap, and that makes it a double wammy for Arizona real estate and Maricopa real estate.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the relative “discount” of a 15-year fixed rate loan as compared to a comparable 30-year product is the largest in recorded history. The interest rate spread between the two benchmark products is now 0.77%, nearly double the recent, 5-year average of 0.44%.
Despite its lower rates, however, homeowners that opt for a 15-year fixed mortgage should be prepared for higher monthly payments. This is because the principal balance of a 15-year fixed is repaid in half as many years as with a 30-year amortizing product.
The payment increase is 41% higher at today’s rates. If you can manage that, though, you’ll reap dramatic interest payments savings over time. For each $100,000 borrowed at today’s market interest rates, your mortgage interest costs on a conforming 15-year term mortgage will be lower by $56,000 versus an identically-structured 30-year term. The more you borrow, the more you save.
That said, not everyone should use the 15-year product.
One reason you may want to avoid 15-year products is because the higher payments may lead to financial stress. Unless your monthly income far exceeds your monthly debts, choosing a 30-year product may feel safer for you.
Another reason is that, with less mortgage interest paid, 15-year mortgages don’t allow for as many mortgage interest tax deductions. This can have tax implications to you each year. Or, maybe you prefer to have your home leveraged, investing “spare dollars” in stocks and bonds.
These are all legitimate cases to stick with a 30-year term, but if you’ve ever explored the idea of using a 15-year fixed rate mortgage for your home, today, the math is in your favor. Talk to your loan officer before the rates start rising. If you are looking for Arizona real estate or Maricopa real estate visit www.pru1re.com for all of your Arizona real estate information. If you need an Arizona mortgage click here.
Posted on 17th March 2011 by Anthony in Housing Analysis
HMI, Homebuilders, Maricopa, Maricopa Arizona, maricopa homes for sale, Maricopa real estate, NAHB, New Home Sales, new homes, new homes Arizona, New homes Maricopa
Homebuilders are optimistic about the housing market this spring, relative to recent months. Maricopa Home building had been steady for Maricopa real real estate.
According to the monthly Housing Market Index as published by the National Association of Homebuilders, after 4 straight months of reading 16, March homebuilder confidence ticked 1 point higher to 17.
It’s the highest confidence reading in 10 months.
A value of 50 or better indicates “favorable conditions” for home builders; with more builders viewing sales conditions as “good” than “poor”.
HMI hasn’t read higher than 50 since April 2006.
Regionally, the Housing Market Index showed mixed results. Confidence fell 1 point in the Northeast, held firm in the Midwest, and rose in the Southeast and West regions by 2 points and 4 points, respectively. Maricopa real estate has been embracing the well priced new homes.
As an index, the monthly survey is actually a composite of three separate homebuilder surveys — a report on single-family sales; a report on current buyer foot traffic; and a projection for single family sales in the next 6 months.
March’s HMI breakdown shows that builders expect sales to be brisk over the next few months. Projected Single-Family Sales is running at its highest level since May 2010 — right as the $8,000 federal homebuyer tax credit was ending.
- Single-Family Sales : 17 (Unchanged from February)
- Buyer Foot Traffic : 12 (Unchanged from January)
- Projected Single-Family Sales : 27 (+2 from February)
For home buyers in Maricopa and across the country , the March Housing Market Index may signal the end of “builder discounts” and free upgrades. As home sales increase, builders are often less likely to make concessions.
In conjuction with rising mortgage rates and new, mandatory loan costs, buying a newly-built home may never be as inexpensive as it is right now.
If you expect to buy a newly-built home this year, consider moving up your time frame. The longer you wait, the more it may cost you. If you are looking for Maricopa real estate visit Prudential One Realty. Are you looking for an Arizona mortgage? Click here
Posted on 10th March 2011 by Anthony in Industry News | Mortgage Guidelines
Arizona mortgage rates, arizona mortgages, Casa Grande, casa grande real estate, LLPA, loan rates, loan rates arizona, Maricopa, Maricopa Arizona, Maricopa AZ, Maricopa real estate, Mortgage Rates, real estate
Beginning April 1, 2011, Fannie Mae is increasing its loan-level pricing adjustments. Conforming mortgage applicants in Maricopa Arizona should plan for higher loan costs in the months ahead. This will affect your buying power for Maricopa real estate and Casa Grande real estate alike.
If you’ve never heard of loan-level pricing adjustments, you’re not alone; they’re an obscure mortgage pricing metric and, thus, are rarely covered by the media. That doesn’t make them any less relevant, however.
LLPAs are mandatory closing costs assessed by Fannie Mae and Freddie Mac, designed to offset a given loan’s risk of default. LLPAs were first introduced in April 2009.
This April’s amendment is the 6th increase in 2 years. LLPAs can be costly.
In addition to an up-front, quarter-percent fee applied to all loans, there are 5 additional “risk categories” in the LLPA equation:
- Credit Score : Lower FICO scores trigger additional costs
- Property Type : Multi-unit homes trigger additional costs
- Occupancy : Investment properties trigger additional costs
- Structure : Loans with subordinate financing may trigger additional costs
- Equity : Loans with less than 25% equity trigger additional costs
Adjustments range from 0.25 points (for having a 735 FICO score) to 3.000 points (for buying an investment property with just 20% downpayment). And they’re cumulative. This means that a borrower that triggers 3 categories of risk must pay the costs associated with all 3 traits.
Loan-level pricing adjustments can be expensive — up to 5 percent or more of your loan size in closing costs. The fees can be paid a one-time cash payment at closing, or they can be paid in the form of a higher mortgage rate.
The loan-level pricing adjustment schedule is public. You can research your own loan scenario at the Fannie Mae website, but you may find the charts confusing.
Phone or email your loan officer if you’re unsure of what you’re reading. If you are looking for Maricopa real estate or Casa Grande real estate visit Prudential One Realty we specialize in Maricopa, Casa Grande, and many other Pinal County and east valley cities.
