Save the Day!

Happy Memorial Day!

Landmark Bank

Mortgage rates hit record low for third week in a row - May. 17, 2012

Mortgage rates hit record low for third week in a row - May. 17, 2012

Give me a call!

Laura Glass
903-892-1800 x 3166
laura.glass@landmarkbank.com

Weekly Real Estate Report

The New Factor

It is not our job in the economic commentary to predict the future of the economy. On the other hand, we make a point of outlining the factors that may influence the future of the economy. At this point in the year, we have added a very important new factor. We are heading into a Presidential campaign. At this point, though the nominations are not official, we pretty much know the candidates. And that means every action and/or word coming out of the Executive Branch and Congress for the next several months will be over-scrutinized for political motives -- even more than usual. For example, now that we are in the middle of the pause, will the Federal Reserve Board undertake further stimulus activity? The closer we get to the election, the more likely any action taken by the Fed will be questioned. Unless there is an emergency, typically the Fed "shuts it down" a few months before the election to avoid even the appearance of bias. You will never hear the Fed admitting that the presence of the election would affect any activity. However, the timing does make us wonder if the Fed is more likely to take action now while they are a "safe" distance away from the election -- especially since recent elections in Europe have served to highlight the fact that the debt crisis there still has the attention of the world.
Speaking of predictions, we did indicate that there were two potential benefits of the pause. These benefits were lower interest rates and lower oil prices. In the wake of the tepid jobs report, the reaction was as expected. Rates eased down a bit in the wake of the news. And oil prices corrected significantly. Why did oil prices move more quickly than rates? Because oil prices had run up significantly this year while rates had risen more moderately. Oil prices were being affected by potential supply disruptions as well as the economy. If you look at both sectors, prices are now back to where they were a few months ago. A word of warning. While lower rates and lower gas prices are both welcome news, a reversal in these trends is just a few strong economic reports away. If the pause continues we should enjoy these lower levels for a longer period of time, but as we indicated previously, there is no real way of knowing if the pause will be with us for long. We do surmise that with rates again at record lows, when rates do move, they are more likely to move up than down. We just don't know when.

More home buyers may jump off the sidelines this spring as they get more urgent about purchasing a home, fearing that home price and rate increases are on the horizon. Housing surveys in recent weeks have shown that more Americans are seeing now a great time to purchase a home. In the most recent survey, 73 percent of Americans say now is a good time to buy, according to the latest Fannie Mae Housing Survey conducted in March. That’s up from 70 percent in February who said it was a great time to buy. "Conditions are coming together to encourage people to want to buy homes," says Doug Duncan, Fannie Mae’s chief economist. "With an increasing share of consumers expecting higher rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is a more compelling housing choice." Indeed, more buyer urgency is evident in the market. Thirty-three percent of those surveyed by Fannie say they expect home prices soon to increase, which is the highest percentage in a year. What’s more, nearly 40 percent say they expect rates to rise in the next year too, which is also up from previous surveys. Coupled with that, 48 percent of Americans say they expect rents to continue to climb, and 44 percent say they expect their financial situation to improve in the next year. Source: MSN Real Estate

Large investor firms are taking advantage of the deep discounts found in some housing markets, and they’re finding that buying one or two homes is just not enough -- they want thousands. The investors are then renting the homes out to tenants, banking on returns from the rental income, which they say is better than other investments at the moment. Landlords usually are individuals or small investment firms that own a few homes. “Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses,” notes a recent article at The New York Times. Investors are seeing big opportunities in the real estate market, with nearly 650,000 foreclosed homes owned by lenders and 710,000 in the foreclosure process, according to housing data from RealtyTrac. Meanwhile, rental demand is rising and so are rents. Economists say that investors buying the homes by bulk could help to stabilize the housing market. “If you have a lot of foreclosures in one community you will improve everybody’s home values if you take them off the market,” Diane Swonk, the chief economist at Mesirow Financial, told The New York Times. “If those homes are renovated and even rented, it is a lot better than having them stand empty.” Source: The New York Times
Home remodeling activity is expected to pick up later this year after “two years of bouncing around a bottom,” thanks to stronger pending home sales and continuing low interest rates, the Joint Center for Housing Studies of Harvard University said. An unusually mild winter in many parts of the country also contributed to the pick-up, said the center, which projects that annual spending on home improvements will see “healthy growth” in 2012, ending the year up 5.9 percent. “Hopefully, we’re finally moving beyond simple volatility in the home improvement spending numbers to a period of sustained growth,” Eric S. Belsky, managing director of Harvard’s Joint Center for Housing Studies, said in a statement. “The recent upturn we’ve seen in home sales should translate into more remodeling activity later this year.” Source: The Boston Globe

All rights reserved

Laura Glass

Real Estate lending Manager with Landmark Bank

Sherman, TX. 75092

903-892-1800 x 3166

laura.glass@landmarkbank.com



Are your home-loan chances better at a smaller bank? - MSN Real Estate

Are your home-loan chances better at a smaller bank? - MSN Real Estate

Give me a call, we are a hometown bank!

Laura Glass

903-892-1800

laura.glass@landmarkbank.com



Seven Common Credit Myths Dispelled         "Being knowledgeable about your credit standing is becoming increasingly more important by the day," says Lucy Duni, vice president of TrueCredit.com. "Businesses, ranging from insurance companies to wireless providers and some employers, are now reviewing consumer credit information as a routine part of their application processes." When it comes to credit, knowing fact from fiction and understanding how to act is critical. Here are some common credit myths that may be preventing you from engaging in effective credit management: Myth: My score will drop if I check my credit. Fact: Checking your own reports and scores is considered a "soft inquiry" and has no negative impact on your credit score. Myth: Reviewing any one of my three credit reports occasionally will tell me everything I need to know about my credit standing. Fact: Occasional monitoring will give an incomplete snapshot of your credit standing. You should, instead, check all three of your credit reports and scores frequently throughout the year because the information and scores contained in each of those reports can vary at any given point in time. Myth: There's only one score that all lenders use to determine my credit-worthiness. Fact: There are literally hundreds of different scoring models used by lenders in the marketplace today. Myth: Closing old credit card accounts will clean up your credit reports. Fact: Some people advocate closing old and inactive accounts as a way to manage their credit. In most cases, closing your older accounts will make your credit history appear shorter, which can negatively impact your overall credit standing. Myth: Once you pay off a delinquent loan or credit card balance, the item is removed from your credit report. Fact: Negative information such as late payments, collection accounts and bankruptcies will remain on your credit reports for up to seven years. Certain types of bankruptcies stick around for up to 10 years. Paying off the delinquent account won't remove it from your credit report, but it will update the account to indicate it as "paid." Myth: If I don't pay a medical bill on time because I believe it is incorrect, I can't be held accountable. Fact: If you fail to pay a medical bill in a timely manner, the delinquent payment may be reported as late to a credit bureau. If you believe a medical bill you have received is wrong or was sent to you in error, it's best to contact the provider to resolve or discuss the matter prior to the bill becoming past due. Myth: The "credit bureaus" report people as having either good or bad credit. Fact: Credit reporting companies compile information that is provided directly and voluntarily by consumer lenders. If you have a credit card, home or auto loan, or make other monthly payments, details of your payment track record on these are likely being reported by those parties. For more details about credit myths, visit TrueCredit.com. Laura Glass Landmark Bank, Sherman, TX 903-892-1800 x 3166 Landmark Bank or Laura Glass Courtesy of ARAcontent

Mortgage rates fall to new record lows – USATODAY.com

Mortgage rates fall to new record lows – USATODAY.com

Give me a call! I would be happy to discuss your mortgage needs! With these low rates you don't want to miss this opportunity!

Laura Glass
Real Estate Lending Manager
903-892-1800 ext 3166