An
ugly week in the MBS market has moved mortgage rates up. Statements by
the Fed and its leader, Ben Bernanke, regarding the time frame
for easing back on the MBS stimulus known as QE, were considered by
investors to be a thumbs up on current economic growth. Essentially, if
the Fed is so optimistic about the speed of recovery, that it's willing
to pull back on the stimulus much earlier than
previously indicated; then investors definitely want to be taking
advantage of the potential increases in the stock markets. So, they
moved their investment funds from the bond markets to stocks, which
drove the bond markets down and interest rates up.
That's an extreme simplification of what went on this week, but how much do you really want to know?! A reality check is due, and it's likely that mortgage rates could get somewhat better over the coming weeks. Maybe not a lot better, but better. Our economic growth rate is not stellar, and there is still no fear of inflation, so many analysts expect to see the Fed continue its stimulus efforts. However, markets will bounce on every word from that group, and every word will be scrutinized more closely as time goes on. On the fun side, I've attached a colorful Housing Market comparison graphic that may be of interest. It shows the fall and rise of housing prices from 2009, 2011, and 2013 across the country. It may be helpful in convincing your buyers and sellers to do something sooner rather than later. The percentage of loss or gain shown is a 2 year comparison. So, the first one shows home prices declining an average of 17.6% from March of 2007 to March of 2009, and so on.
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Team Thayer Real Estate House Flipping Traps! #flippinghouses #eugeneoregon #oregon #housing #market #realestate
If you’ve got several leads waiting to turn into potential deals, you can’t wait for one to suddenly come knocking at your door. Successful real estate house flippers have one trait in common: they place an emphasis on proper planning. Once you’ve secured a deal, you must decide what kind of rehab you will perform. Will you conduct a few simple cosmetic upgrades (like these 10 rehab projects you finish in one weekend )? Or, is the home nice enough to sell after an easy prehab ? Are there structural damages that will require you to carry out more major renovations? Will you focus on implementing environmentally friendly renovations – also known as “greenhabbing” – so that you qualify for certain tax benefits ? Once you’ve determined your strategy, it is important to ask yourself these specific questions before diving into the construction action: What are the current market conditions in my area? What does my ideal buyer look like? Does my marketing cam...