June 2012

Found 16 blog entries for June 2012.

Lots of information and not much response from the markets.  Yesterday we saw the 10 year treasury drop into the 1.57% range as the nervousness of the European crisis loomed following disappointing numbers from the US on GDP and jobless numbers.  Today, with Europe “solved” again, the bonds crept back up into the current comfort level of 1.65%. 

So what happened?  The US economy grew by a dismal 1.9% during the first quarter.  That was right at the consensus but still disappointing.  With the exception of the robust 3.0% GDP number in the fourth quarter, we’ve been pretty constant right around an annualized rate of 1.9%.  The new jobless claims came in, again at consensus number of 386,000.  Last week’s numbers were revised up from 386,000 to 390,000

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While a home inspection is standard protocol when purchasing a home, many buyers overlook one major type of inspection before move-in day, and if a problem is brewing, it can lead to some nasty consequences later on. What type of inspection is not included in the traditional home inspection? A sewer inspection.

Too often, buyers are unaware that the responsibility of the sewer line leading from the street to the home falls on their shoulders.  Should a problem with the line occur, the cost of repair can be a staggering $5,000—not to mention a seriously messy clean-up.

An old septic tank can explode or degrade over time. Not only is the smell extremely unpleasant and lingering, but the mess is unsafe and hazardous to your health. Additionally, it can

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Another week ends and the economic world is as clear as mud.  Yesterday’s jobless claims report came in 4000 above the consensus estimate and the previous report was revised higher by 3000.  That is bad and surprising news on our economy but good for interest rates  In response, treasury yields dropped, only to jump up again today on speculation that Europe isn’t as bad this morning as it was yesterday afternoon.  No news, just speculation.

FreddieMac’s weekly survey of mortgage rates dropped to a new record low of 3.66% with 0.7 points.  That calculates out to about a 3.8% rate with no points which is close to the norm in Colorado.  15 year loans are down below 3% (2.96%) again with 0.8 points according to the survey, about a 3.25% note rate at par.

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If you have an historic house and care about maintaining authenticity, then you may be facing a unique challenge when attempting to renovate. Renovation of an older house can be very rewarding, yet comes with its own unique challenges.  It's natural for an owner to want modern conveniences.

To maintain the character of your property, you may have to do a little extra work—or at least provide extra forethought—so that both goals can be accomplished.  And if you aren't sure whether or not you want to keep the authenticity of your home intact, remember: Many states offer tax incentives, reductions and abatement programs for owners of residential historic homes. Historic structures offer a 20 percent investment tax credit for qualified rehabilitation

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     When a homeowner gets behind in their payments, they usually don’t know what to do, so they do nothing.  In fact, over 70% of homeowners do just that, absolutely nothing, and walk away from their homes.  In reality, there are several options, with foreclosure being the last one.  A quick summary of some different options follow:

Reinstatement
Often, the reason the homeowner got behind on payments was only temporary.  The homeowner has to pay all the missed payments, any late fees and attorney fees in a lump sum payment.   After the homeowner is caught up, the loan continues as it was.

Repayment Plan or Forbearance
Sometimes the lender will take the missed payments, any late fees and attorney fees and divide them up over a payment plan or add the

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Between spring cleaning and summer inspiration, it’s not uncommon to be bitten by the remodeling bug this time of year. From home improvement expert and author Dan Fritschen, here are great reasons why you should consider a home-improvement project this summer:

It can happen while you’re gone. If you’re one of the many families who go to the beach, mountains, or Grandma’s house for a week or so during the summer, Fritschen suggests scheduling your remodel to coincide so that you’ll be out of the house while the job is done. The workers will have more space, you won’t have to worry about safety hazards and staying out of their way, and you’ll be able to come home to a new and improved house.

Long days equals faster completion. Everybody loves long, warm

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Wednesday turned out to be the high point for interest rates for the week with the 10 year long bond ending the week at 1.59% after being as low as 1.56%.  With weak economic news coming out of the US all week and Greece having its all important vote on leaving the EU on Sunday, investors shifted lots of money of US bonds.  Mortgage rates followed this time as the 30 year fixed rated dropped to 3.5% locally.

The US economy hit more bumps late this week as Thursday’s new jobless claims came in worse than expected at 386,000 and last week's numbers were revised 3000 to the bad.  The Consumer Price index (inflation standard) came in at -0.3% when consensus was 0%.  While negative inflation sounds good, this means we’re not growing at all.  The good news is

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Whether buying or selling, you may know that one of the most sought after home amenities is hardwood flooring. Wood is beautiful, classy and timeless. When listing an older home, original hardwood flooring is one of the best selling points. However, if hardwood doesn’t fit your lifestyle or budget, and you’re still coveting that glossy, natural look, you may want to consider laminating. 
Here are some lessons in laminate:

Laminate wood flooring is made from composite wood pressed together at high temperatures.  Then, the image of hardwood is covered over the composite wood to form the laminate.  This is cheaper to buy than hardwood, and the installation is jarringly less expensive—often 50 percent less.

Laminate floors have a long lifespan, and a few

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073860_remax_number_one_3d_chrome_rgb_1215In this tight economy, many homeowners are trying to cut corners, and while selling their homes, they may be trying to sell themselves instead of enlisting a real estate agent. But in actuality, having an agent is financially intelligent.  Here’s why.

1. Market know-how:  This is one of the best things your agent can offer. A seasoned agent knows your market, which will help you price accordingly—perhaps the number one most important things you can do when selling your home.

2. MLS access: An agent has access to the Multiple Listing Service (MLS)—a database of current homes for sale. This access works both ways. An agent or broker can list your home on the MLS, and your property info will be instantly available to agents all across your area.

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Nationwide housing affordability hit a new record high for a second consecutive quarter in the first three months of this year, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Yet tight lending conditions continue to pose a major obstacle to many prospective home buyers.

The latest HOI data reveal that 77.5 percent of all new and existing homes that were sold in this year’s first quarter were affordable to families earning the national median income of $65,000. This beats the previous record set in the final quarter of 2011, when 75.9 percent of homes sold were affordable to median-income earners.

“Homes in this year’s first quarter were more affordable than they have been at any time in more than 20

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