Valparaiso Mortgage Rates

I had a customer ask me to post an update on where the mortgage rates are priced right now, so here is that post:

Going into last week mortgage interest rates were rocking up and down between 5% and 5.25% for 30 year fixed rate mortgages, best to state in Indiana since some companies price higher in Illinois and Michigan. Indiana property values have leveled off and we get better pricing than surrounding states. That's good news!

In the middle of last week mortgage rates began a climb upwards toward and over 5.5% for 30 years fixed. Some experts are even suggesting rates will go higher tomorrow after the Federal Reserve stops buying mortgage bonds in support of pricing as they have done for the last 16 months.

What's all this mean for you?

• If you are looking for a home, get that contract agreed so we can get you locked prior to any additional increases in rate.
  
• If you have postponed refinancing, better jump before it doesn't make any sense to do so
• If you are wanting to build a new home .... probably no better time than now. We work closely with Green Pointe Homes in Valparaiso and they can help you find a lot and price a home pretty quickly.

Call me today 219-465-8352 if you want to discuss your options.

Jobless Claims today

Interest rates moved up yesterday as it appears we're in the slow climb toward 6% on mortgages.

Today - Jobless claims down a tad from last week's numbers to 442,000 ... but still no feeling that employers are on any kind of hiring binge.

An eye on Washington

I know many of you think I spend too much time talking about politics and not enough time throwing out statistics about home sale values, mortgage rates, or appraisals. But frankly the Northwest Indiana real estate market is quite a few months into a recovery that may well last for the next decade or more. The last sustained real estate recession in 1979 kicked off a recovery and expansion that lasted until 2007.

My biggest concern right now, as it relates to real estate values and mortgage rates, is the high level of borrowing by the Federal government for last year's stimulus and this new health care takeover. There was some phony talk of the health care takeover "saving" us money, of course this is like my wife saying she "saved" me $100 by buying something we didn't need for $100 dollars that used to be priced at $200. The key is we didn't need it, we didn't save anything, we spent $100.

If we continue like drunken sailors borrowing, then rates will continue to rise. As they rise it will reduce the number of families that can afford to buy your home, your condominium, your property. This is not good for your value or for continuing to reduce inventories. This is why I pay attention to politics, too much for some of you still I'm sure.

Real Estate Pros in NW Indiana

I like to showcase some of the region's best real estate teams, and since I just met Matt Evans this week for coffee thought I'd do a round-up of his online locations here. Matt and his team work in the highly successful Keller Williams Northwest Indiana Real Estate team.

Living in Valparaiso Blog

Matt Evans' Active Rain Blog

Matt's blog on Trulia and Profile

Keller Williams - The Matt Evans Team

The Matt Evans Team - Facebook Fan Page

Keller Williams NW Indiana Blog

Zillow profile

When a majority of home buyers use the first real estate professional they talk to, after doing a preliminary search online, it's great to see Matt's team focusing on being in all the places that a customer may be looking. I found listings on literally dozens of online sites, MLS just isn't enough anymore, by Matt and his team.

In my search to team up with creative and aggressive real estate professional in Northwest Indiana, this is the type of team I want to align with. Glad to have met Matt.

Call me if you are looking for a real estate professional in NW Indiana, let's talk about how to choose a really important advisor and ally in this very important trek this year. 2010 ... the YEAR to BUY a HOME!

Steve 219-465-8352

Northwest Indiana Mortgages today

Let's shoot straight today, here's what rates are doing:

• The bond market looks to open slightly lower, meaning higher rates, but mortgage companies will probably hold at or near Friday rates. That means that for 10 weeks straight we've been at or below 5.25% this year. You all know, those that read regularly, that I don't believe rates can possibly stay this low due to inflationary pressures. The key question is when do they push upward to 5.5% and above?
  
• There was a lot of talk about ratings agencies, they rate bond deals for risk, during the run-up to the bubble burst in real estate values. Some investors suggesting that ratings agencies didn't do a good job explaining that mortgage bonds were getting more and more risky. Today a story that suggests Moody's is worried about of all things, United States debt. With the massive runup of debt in the last 18 months, the Obama administration is learning they can't just print money and hope no one notices.
• What would be best for the market would be a solid push upward in the value of the Dollar, not the best for exports, but this would bring down the worries about inflation and slide the cost of oil down enough to bring down gasoline and energy prices.
  

All Greek to you? Want to talk more about the value of your investments, especially the big one in your home? Give me a call at 219-465-8352 or email me.

Northwest Indiana Mortgage and New Homes
Steve Dalton - Daltonsbriefs Daily Housing Upadates on Twitter

Do I qualify for homebuyer tax credit?

An often heard question right now as homebuyers are flooding into the market looking to take advantage of the credit. Here's a good video explaining some potential pitfalls:

Homeownership is the best Stimulus

The writers over at the Times blog push forward one negative theory that is rolling around, namely that more families should be renting, well of course we believe this is hogwash. First the Times article:

Knocking the home buyer tax credit

Category: NWI in the News

The economics blog Calculated Risk takes on the notion of expanding and extending the home buyer tax credit, claiming it will cost taxpayers more than $100,000 for each additional house sold.

The thinking is that the $8,000 tax credit primarily goes to people who were going to buy a house anyway, and so doesn’t have much stimulative effect on the home market.

There’s another effect, evidenced by something I overheard at our Editorial Advisory Board meeting, where one of the members talked about not being able to get tenants for rental property he owns.

On this very subject, the article from the Las Vegas Sun, which the blog post cites goes into detail.

The reasons we find this so frustrating:

• Calculated Risk is merely a negative talking anti-economy bunch. They don't like homeownership, they wanted the bubble and aren't too happy to see the economy already bouncing back.
• Who cares if landlords now have some competition, that's good for the market. Perhaps take the opportunity to fix up your property while it's empty.
  
• Homeowners make the best community citizens, they stay, the keep maintained, they are part of the neighborhood.

If you are renting now, your rent is going to go up this year. Time to talk about buying a home. Let's talk today!

NW Indiana real estate market update

From Jana Caudill team:
Northwest Indiana Real Estate: January 2010 Existing Home Sales Data From NAR

One thing not mentioned in Jana's article is that as existing home sales increase, inventories drop which supports prices. This is good for sellers, and even better for those that are wanting to look at building a home. If you have been on the sidelines, waiting for home sales to improve so you can Build a New Home in Northwest Indiana, let's talk.

HOME SALES DATA FROM NAR RELEASED:

While home sales in January slowed, home sales are still way above January 2009 levels!

Nationwide existing home sales dropped 7.2% to a seasonally adjusted annual rate1 of 5.05 million units in January from a revised 5.44 million in December, but remain 11.5% above the 4.53 million-unit level in January 2009.

As expected it is the delay between shopping for a home and closing on a home that has caused the slight drop.

However, more excitingly again is the news that the level of inventory fell again, this time by 0.5% to 3.27 million existing homes for sale which represents a 7.8 month supply at the current sales pace. Raw unsold inventory is 9.6% below a year ago and is the lowest since March 2006!

The national median existing-home price for all housing types was $164,700 in January, unchanged from a year earlier. Distressed homes, which accounted for 38 percent of sales last month, continue to downwardly distort the median price because they typically are discounted in comparison with traditional homes in the same area. Also, it was noted that first time homebuyers represented 40% of home sales in January while investors accounted for 17% of sales. Buyers shopping for homes also increased 9.4%. Regionally, here in the midwest home sales only declined 6.9% but are 8% higher than January 2009.

Here is a breakdown of Lake and Porter counties:

Lake County existing single-family home sales

January 2010: 188

January 2009: 203

Change: down 7.4 percent

Porter County existing single-family home sales

January 2010: 60

January 2009: 63