MORTGAGE RATES CONTINUE LOW ACROSS THE BOARD IN FREDDIE MAC WEEKLY SURVEY

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.17 percent with an average 0.4 point for the week ending April 5, 2007, up slightly from last week when it averaged 6.16 percent. Last year at this time, the 30-year FRM averaged 6.43 percent.

The 15-year FRM this week averaged 5.87 percent with an average 0.5 point, up slightly from last week when it averaged 5.86 percent. A year ago, the 15-year FRM averaged 6.10 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.92 percent this week, with an average 0.6 point, up from last week when it averaged 5.88 percent. A year ago, the 5-year ARM averaged 6.11 percent.

One-year Treasury-indexed ARMs averaged 5.44 percent this week with an average 0.6 point, up slightly from last week when it averaged 5.43 percent. At this time last year, the 1-year ARM averaged 5.57 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Mortgage rates have remained within a narrow band of 0.1 percentage points over every week in March," said Frank Nothaft, Freddie Mac vice president and chief economist. "This relative stability is due to mixed economic data releases as to how strong the economy is and whether future inflation will recede. One bright spot this week came from an unexpected increase in pending home sales for February, which suggests the housing market is still healthy.

"Looking forward, the upcoming March employment report and producer price index should offer further insight into the current state of the economy and give us an idea where interest rates are headed in the future."

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America.

Posted by John P. Maisel III on April 6th, 2007 11:25 AMPost a Comment (0)

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House approves two tax-cut bills

April 20th, 2007 9:20 AM

House approves two tax-cut bills

TALLAHASSEE, Fla. – April 19, 2007 – The state House of Representatives voted unanimously Wednesday to roll back property taxes to 2001 levels, while also passing, along party lines, a second plan to rewrite Florida’s tax code and give voters the option of eliminating property taxes on their homes by raising the sales tax.

House Democrats said they support the rollback bill because it sends the message they support tax cuts, but warned that they want it revised to have a less harsh impact on local government.

The second plan, advocated aggressively by House Speaker Marco Rubio, won a divided vote of 78-40, with only two Democrats, Reps. Luis Garcia and Ed Bullard, both of Miami, voting with Republicans. Two Republicans, Reps. Gayle Harrell of Stuart and Andy Gardiner of Orlando, voted against it. None explained their votes.

The measures are the first step to a resolution on the top issue of the legislative session: lowering property taxes across the state. Neither approach is expected to be accepted by the Senate but will serve as the starting point in the debate to begin next week when a joint committee hammers out the differences.

Under the House plan that passed on a partisan vote, voters would be asked in November 2008 to approve a constitutional amendment to lower property taxes across the state by $4.4 billion by 2009. Local governments then would have to roll back taxes and cut their budgets.

If voters approve the constitutional amendment, it would immediately strip away all taxes that pay for schools and automatically raise the statewide sales tax by 1 cent. After that, counties would have the option to eliminate all property taxes on homesteaded property and replace the lost income with a local sales tax of up to 1.5 cents more.

Republicans called the plan bold, innovative and the “largest tax cut in the history of Florida.” They promised that it would have wide-ranging benefits not just to homeowners but to businesses and renters, who would also see their tax bills drop while homeowners see the biggest declines.

“This isn’t to protect government, this is to protect the taxpayer,” said Rep. Ray Sanson, a Destin Republican.

Democrats argued that the proposal will have far-reaching negative consequences. Renters and businesses would see little relief, while homeowners see the greatest benefit. Low- and middle-income homeowners would shoulder the greatest share of the sales-tax increase while seeing the least benefit. And the elimination of the property tax on homes, they said, would result in a more apathetic citizenry and a vulnerable state financial system that could jeopardize the state’s bond rating.

“We support the tax cuts. We support the rollback,” said Rep. Dan Gelber, the House Democratic leader from Miami Beach. But the other proposal falls short, he said, because “you’ll be sending everybody to the polls to vote for a sales tax increase that only benefits some people.”

Posted by John P. Maisel III on April 20th, 2007 9:20 AMPost a Comment (0)

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Buying Foreclosed Properties Can Be Risky

April 19th, 2007 9:11 AM

Buying Foreclosed Properties Can Be Risky
With the NATIONAL ASSOCIATION OF REALTORS® estimating that over 1 million homes will end up in foreclosure during the next couple of years, prospective buyers might view the situation as a means of snapping up a residence at a bargain price.

However, experts note that foreclosure sales can be dicey, with the riskiest deals involving homes purchased at auction. While this format offers the greatest chance of a deep discount, buyers must provide payment at the time of the sale, making a deal without having the property inspected or an assurance that the current residents will vacate the premises.

Once the bank takes possession of homes not sold at auction, buyers can purchase directly from them in a real estate owned (REO) transaction.

While inspections and title insurance are possible, buyers are not likely to receive tremendous discounts or get lenders to respond in a timely manner to their offers under these circumstance.

Those who scan public default notices and approach struggling home owners to inquire about purchasing a dwelling before it ends up in foreclosure assume the least amount of risk, experts say. And in most instances, they need only offer more than the mortgage balance but less than the market value to secure the sale.

However, with large inventories of new homes in some markets providing leverages to those in the market for a property, buyers may not need to focus on foreclosures to get a good deal.

Source: USA Today, Christine Dugas (03/30/07)

© Copyright 2007 Information Inc.

Posted by John P. Maisel III on April 19th, 2007 9:11 AMPost a Comment (0)

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Simple Ways to Boost Curb Appeal

April 19th, 2007 9:09 AM

Simple Ways to Boost Curb Appeal
The outside of a home can be just as important as the inside in attracting buyers.

Maureen Gilmer with the DIY Network offers the following five cheap and easy ways to improve curb appeal:

1. Edge it. Make the distinction crisp between lawn and flowerbed or sidewalk. Replace old edging materials with tumbled concrete payers — the heavier they are the better they stay in place.

2. Mulch it. Cover bare ground with two inches of attractive mulch.

3. Stain it. Old concrete walks, steps, and planters crack, stain, and discolor. Cover them with new colored concrete stains. The result unifies paving and mimics more expensive stone.

4. Color it. Worn out fences can give the property a black eye. Stain them with muted colors like warm gray, soft green, antique gold, or subtle blue.

5. Plant it. Buy whole flats of six packs of single color annuals.

Posted by John P. Maisel III on April 19th, 2007 9:09 AMPost a Comment (0)

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