It's a Great Time to Buy: Mortgage Rates Remain at Historic Lows

MORTGAGE RATES FLAT THIS WEEK THANKS MAINLY TO ACTIONS BY TREASURY AND THE FED

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 4.82 percent with an average 0.7 point for the week ending May 21, 2009, down from last week when it averaged 4.86 percent. Last year at this time, the 30-year FRM averaged 5.98 percent.
The 15-year FRM this week averaged 4.50 percent with an average 0.7 point, down from last week when it averaged 4.52 percent. A year ago at this time, the 15-year FRM averaged 5.55 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.79 percent this week, with an average 0.6 point, down from last week when it averaged 4.82 percent. A year ago, the 5-year ARM averaged 5.61 percent.

One-year Treasury-indexed ARMs averaged 4.82 percent this week with an average 0.6 point, up from last week when it averaged 4.71 percent. At this time last year, the 1-year ARM averaged 5.24 percent.

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

"Long-term fixed-rate mortgage rates have remained below 5.0 percent for the past 10 weeks as the U.S. Treasury and Federal Reserve (Fed) act to keep interest rates low through security purchases," said Frank Nothaft, Freddie Mac vice president and chief economist. "The Treasury purchased $136 billion in mortgage-backed securities through April and the Fed bought $740 billion through mid-May. In addition, the Fed purchased $115 billion in Treasury bonds since March of this year.

"Housing construction continued to decline, as total starts fell to the lowest level since the Census Bureau began its monthly series in January 1959. While single-family construction appears to be near or at a bottom, multi-unit construction continued to recede. Reflecting the apparent stabilization in single-family construction levels, homebuilder confidence rose in May to the highest level since September 2008 and represented the first back-to-back up tick since February 2008."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

DEFINITIONS
Commitment Rate is the interest rate a lender would charge to lend mortgage money to a qualified borrower exclusive of the fees and points required by the lender. This commitment rate applies only to conventional financing on conforming mortgages with loan-to-value rates of 80 percent or less.

ARM Index - is the One-year Treasury
Loan to Value Ratio (LTV) is the ratio of the loan amount of a mortgage loan to the lower of the appraisal value or purchase price of the property securing the loan.
Origination Fees and Discount Points are the total charged by the lender at settlement. One point equals one percent of the loan amount.
Margin is a fixed amount added to the underlying index to establish the fully indexed rate for an ARM.

Weighted Averages for the Primary Mortgage Market Survey have been adjusted as of October 16, 2008. The new weights use the dollar volume of conventional mortgage originations within the 1-unit Freddie Mac loan limit as reported under Home Mortgage Disclosure Act (HMDA) for 2007.

What's It Doing on the Oregon Coast

Memorial Day weekend is a great time to visit the Oregon Coast and this weekend's weather is going to be a stunner: sunny sunny sunny. Florence's famous native rhododendrons around which the Rhododendron Festival was founded 103 years ago were not quite in full bloom for that festival last weekend. This weekend, they'll be out in all their blazing pink glory. Though with Florence's development over the past five years, native rhodys have become less prevalent, there are certainly areas where they are prominent. One of my favorite areas for viewing is around our lakes to the south of the Siuslaw River Bridge, especially around Honeyman Park, the site of Cleawox Lake, and around Woahink Lake. If you've not taken the flat leisurely walk around Cleawox Lake, you've got a real treat in store for you. Our dog, Maeve, loves that trail too. Cleawox Lake is a top spot for fishing--no big motors allowed--kayaking, swimming, canoeing, picnicing, and hiking over the massive dunes to the beach. South of the Siuslaw River Bridge, especially east of highway 101 is a sought-after area to live. Lots are typically an acre or more and best of all, this area is protected from the coast's summer wind thus allowing people to garden to their hearts content, even growing large vegetable gardens. There, depending on the particular microclimate, temperatures can actually exceed 80 degrees during the summer. If you think you want to live where the temperatures get that warm, you need the help of an expert in the Florence area's microclimates. Guess who that would be: me! So for the latest in the weather, good real estate deals, and where the best skinny dipping spot is, just email me. I'm your neighborhood expert.

So What's Happening with the Florence Real Estate Market?

How do you spell the word "slow" as in "real estate sales?": You spell it "Florence." Not a surprise given the national real estate mess.

So how slow is slow? According to Tawfik Ahdab, Certified Residential Appraiser, who writes a quarterly sales report for Florence, the "Greater Florence single family residential market performance in the first quarter of 2009 signaled a record low – and possibly a bottom – in sales activity... The moderating median sale price of $205,000 is explained by a combination of price reductions and a focus by buyers on modestly-priced properties.

Indeed, many of the buyers we have at HomeFinders Service are looking for homes in the under $200,000 range. And the supply of homes at that price point is decent. Homes over $250,000 aren't selling, for the most part. Unless they are distressed properties, meaning short sales and foreclosures.

Bottom line, if you ever had a notion to move to "Paradise on the Pacific," Florence, Oregon, now's the time. And if you'd like a free report of our office's best buys or a list of distressed properties for sale, let me know. You can email me at hope@hopemacmanus.net, or give me a buzz: 541-991-7480. Happy house hunting!

What’s Going on in Florence, Oregon

It’s hard to believe it’s still the depths of winter. Today in Old Town Florence, the sun is brilliant, the Douglas Firs are sharply etched against a winter blue sky, the office front door is open and as I type, I’m listening to the splash of the rugged rock fountain a few steps away from my desk. A slight breeze is stirring, wafting smells of freshly broiled steak through the door and the air is split every now and again with the raucous rumble of a Harley, reverberating in my chest. So this tells you some of the fun things to do in Florence if you’re a winter tourist: ride your Harley or your collector car on Bay Street, grab a bite to eat at Bridgeport Landing . It’s warm enough to sit at one of their outside tables so you have a front row seat from which to observe and comment on the local color: boats and seals and kayakers, flotsam and jetsam out and about on the Siuslaw River. If the Pacific beckons you, it’s only a couple of miles to the North Jetty. I’ve heard the surf’s up, so grab your board and let’s go!

Want to know more about life in Florence, Oregon, Paradise on the Pacific? Just give me a holler!

WAYS YOU WIN WITH ME AS YOUR EXCLUSIVE BUYERS AGENT

• I am a tough negotiator, which means you get the best price & terms, saving you money.

• I represent only your interests.
  
  
• I don't charge you for my services; the listing office pays me.
  
  
• You don't need to buy property to receive my representation; if you do buy, you only agree to purchase through my firm for a limited period of time.
  
  
• I will give you a tour of all neighborhoods to help you decide where you want to live, not only those where my firm has houses listed.
  
  
• I will show you all available properties, even those for sale by owner and those not listed in the MLS.
  
  
• I will provide you a comparative market analysis to assist you in establishing a fair market value for the property you are interested in before you make an offer.
  
  
• I am experienced with local laws, regulations, and land use planning and zoning requirements.
  
  
• I will give you expert advice, always pointing out reasons not to buy a particular property.
  
  
• I will promote and protect only your interests at all times.
  
  
• I will keep your bargaining position confidential.
  
  
• I will arrange for all inspections and negotiate with the seller to resolve any problems.
  
  
• I will arrange for a survey and loan appraisal to be done.
  
  
• I will help you obtain the best possible terms on a loan because I have strong relationships with the best lenders.
  
  
• I will be with you every step of the way, even after the sale.

Hope is the answer.

Home Finders Service Real Estate Group specializes in farms, ranches, land residential homes, vacation homes, recreational properties, businesses, and historic properties.

Home Seller’s Marketing

At Home Finders Service Real Estate, we are committed to offering the highest standards of professional service to all our customers. We assure you that your property is marketed to its full potential in order to obtain its highest possible market value. Please take the time to review the variety of steps we take to ensure complete client satisfaction.

• We will help you identify the right price. If you price your property too high, your home will not sell. If you price it too low, you will not realize what you should out of the proceeds.
  
  
• We will give you tips on what you can do to show your home to its best advantage.
  
  
• We will market properties using sound planning and computerized marketing and promotion.
  
  
• We will represent you and be the negotiator.
  
  
• We will fill out the multitude of forms (complex, detailed purchase agreements required by lenders requiring seller and buyer signatures before a buyer can secure financing).
  
  
• We will handle the problems, paperwork, legal and title work, coordinate inspections, loan appraisals, surveys and the closing.
  
  

FOR ALL YOUR BUYING, SELLING, RELOCATING, & INVESTING NEEDS

HOPE is the answer!

Cell 541-991-7480

At Home Finders Service Real Estate, we are committed to offering the highest standards of professional service to all our customers. We assure you that your property is marketed to its full potential in order to obtain its highest possible market value. Please take the time to review the variety of steps we take to ensure complete client satisfaction.

• We will help you identify the right price. If you price your property too high, your home will not sell. If you price it too low, you will not realize what you should out of the proceeds.
  
  
• We will give you tips on what you can do to show your home to its best advantage.
  
  
• We will market properties using sound planning and computerized marketing and promotion.
  
  
• We will represent you and be the negotiator.
  
  
• We will fill out the multitude of forms (complex, detailed purchase agreements required by lenders requiring seller and buyer signatures before a buyer can secure financing).
  
  
• We will handle the problems, paperwork, legal and title work, coordinate inspections, loan appraisals, surveys and the closing.
  
  

FOR ALL YOUR BUYING, SELLING, RELOCATING, & INVESTING NEEDS

HOPE is the answer!

Cell 541-991-7480