Mortgage rates drop to record low

Freddie Mac survey says mortgage rates fall to lowest in 38 years after Fed aids market

WASHINGTON (AP) -- Rates on 30-year mortgages fell this week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.
Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85 percent this week, from 4.98 percent last week. It was the lowest in the history of Freddie Mac's survey, which dates back to 1971 and was down a full percentage point from a year ago.
The previous record low of 4.96 percent was set in the week of Jan. 15. Rates fell after the Fed last week said it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and loosen credit.
Rates on 30-year mortgages traditionally track yields on long-term government debt.
Though the yield on the benchmark 10-year Treasury note initially plunged by about 0.5 percentage points after the Fed's move, lenders did not pass the entire drop on to borrowers. Bond yields rose after worries about what some saw as lackluster demand at a government debt auction Wednesday.
"There was a honeymoon effect initially" after the central bank's announcement, said Greg McBride, senior financial analyst with Bankrate.com. "The reality of large government deficits and the need for substantial government borrowing is setting in with investors."
Mortgage applications surged last week, mostly from borrowers looking to refinance and save money on their monthly payment. The Mortgage Bankers Association said Wednesday its weekly application index climbed more than 30 percent for the week ended March 20.
Nearly 80 percent of applications came from borrowers seeking to refinance home loans at lower rates, rather than purchase homes.
In Freddie Mac's survey, the average rate on a 15-year fixed-rate mortgage dropped to 4.58 percent this week, down from 4.61 percent last week.
Rates on five-year, adjustable-rate mortgages fell to 4.96 percent, compared with 4.98 percent last week. Rates on one-year, adjustable-rate mortgages rose fell to 4.85 percent, from 4.91 percent.
The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac's survey except for one-year adjustable mortgages, which had an average fee of 0.6 point.

Best buyers market forecast

Despite the gloomy national economic outlook, the best buyers' real estate market in at least four years will develop by late summer in most housing markets, according to a new Housing Predictor forecast. Lower interest rates will draw buyers to make purchases of homes more than in years. Increased buyer activity in housing and more home sales will demonstrate the first signs of a recovery.

How long will it take before we get out of this mess? Conditions are moving in the right direction for a correction in housing markets to develop, but the unprecedented level of foreclosures will hamper the recovery for sometime. Economists just aren't sure how long that will take.

Housing prices are not yet forecast to appreciate as a result of the Fed's actions, but are efforts to stabilize markets, according to real estate analysts. As a result of the Fed's actions mortgage rates dropped the day following the Fed's move and are likely to drop further as mortgage companies react in coming weeks.

FALLING RATES! GREAT NEWS!

WASHINGTON (AP) -- Rates on 30-year mortgages plunged this week to the lowest level since January, and are poised to fall further after the Federal Reserve launched a new effort to prop up the flailing housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.98 percent this week.
That was down from 5.03 percent last week. It was the lowest since the week of Jan. 15, when it was at 4.96 percent.

The rate quotes included in Freddie Mac's survey were taken before the Fed said Wednesday it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and other and loosen credit. That is expected to drive mortgage rates down further.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

Simple Tips for Better Home Showings

1. Remove clutter and clear off counters. Throw out stacks of newspapers and magazines and stow away most of your small decorative items. Put excess furniture in storage, and remove out-of-season clothing items that are cramping closet space. Don’t forget to clean out the garage, too.

2. Wash your windows and screens. This will help get more light into the interior of the home.

3. Keep everything extra clean. A clean house will make a strong first impression and send a message to buyers that the home has been well-cared for. Wash fingerprints from light switch plates, mop and wax floors, and clean the stove and refrigerator. Polish your doorknobs and address numbers. It’s worth hiring a cleaning service if you can afford it.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows to air out the house. Potpourri or scented candles will help.

5. Brighten your rooms. Put higher wattage bulbs in light fixtures to brighten up rooms and basements. Replace any burned-out bulbs in closets. Clean the walls, or better yet, brush on a fresh coat of neutral color paint.

6. Don’t disregard minor repairs. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well-maintained.

7. Tidy your yard. Cut the grass, rake the leaves, add new mulch, trim the bushes, edge the walkways, and clean the gutters. For added curb appeal, place a pot of bright flowers near the entryway.

8. Patch holes. Repair any holes in your driveway and reapply sealant, if applicable.

9. Add a touch of color in the living room. A colored afghan or throw on the couch will jazz up a dull room. Buy new accent pillows for the sofa.

10. Buy a flowering plant and put it near a window you pass by frequently.
11. Make centerpieces for your tables. Use brightly colored fruit or flowers.

12. Set the scene. Set the table with fancy dishes and candles, and create other vignettes throughout the home to help buyers picture living there. For example, in the basement you might display a chess game in progress.

13. Replace heavy curtains with sheer ones that let in more light. Show off the view if you have one.

14. Accentuate the fireplace. Lay fresh logs in the fireplace or put a basket of flowers there if it’s not in use.

15. Make the bathrooms feel luxurious. Put away those old towels and toothbrushes. When buyers enter your bathroom, they should feel pampered. Add a new shower curtain, new towels, and fancy guest soaps. Make sure your personal toiletry items are out of sight.

16. Send your pets to a neighbor or take them outside. If that’s not possible, crate them or confine them to one room (ideally in the basement), and let the real estate practitioner know where they’ll be to eliminate surprises.

17. Lock up valuables, jewelry, and money. While a real estate salesperson will be on site during the showing or open house, it’s impossible to watch everyone all the time.

18. Leave the home. It’s usually best if the sellers are not at home. It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.

Last Years Atlanta Tornado

Before and after picture of The Stacks Lofts from the March 14, 2008 Atlanta Tornado.

Lofts Show Off Tornado Renovation

ATLANTA -- The tornado that hit downtown Atlanta one year ago did a lot of damage to the lofts at the old Fulton Cotton Mill, but today the lofts, known as The Stacks, are back.
This weekend, the doors of The Stacks will be open for a special open house.

"It takes a lot of time to put something like that back together," said Tom Aderhold, president of Aderhold Properties and owner of The Stacks. He appeared on 11 Alive News Saturday Today.

"The damage was bad enough that everyone had to leave for quite some time," he said. "We had between 700 and 800 people, and they had to find somewhere else to live for several weeks."

One resident suffered minor injuries. A dog that was missing was discovered by firefighters days later. He was unharmed.

Everyone has since returned, and now The Stacks is ready to show off some newly-renovated lofts that are on the market.

Saturday's Open House runs from 10 a.m. to 5 p.m. On Sunday, it runs from 1 p.m. to 5 p.m. at 170 Boulevard Avenue, SE. For more information, call 404-588-2728 or log onto http://www.stackslofts.com/.

The property was originally the Fulton Bag & Cotton Mill which was built in 1881 and was one of Georgia's most successful late 19th century textile mills.
In 1999, it was the scene of a dramatic rescue of a crane operator by an Atlanta firefighter during a raging fire.

The Stacks is a Federal Housing Administration (FHA) approved property, which means homebuyers to take advantage of a 3.5% down payment.

Additionally, the First-Time Home Buyers Tax Credit included in the American Recovery and Reinvestment Act of 2009 makes an $8,000 tax credit available to first-time home buyers for the purchase of a principal residence until December 1, 2009.

2 bedroom/2 bath condo- Piedmont Crest

Beautiful corner home that sits right on Piedmont Park.10' ceilings, heavy moldings, granite, stainless steel appliances, 2 master suites with large walk-ins, 2 parking spces. Walk to all that Midtown has to offer! This is your chance to get an AMAZING deal & live on the park!!

Priced at $445,000

To view this spectacular park side condo, call me today. (404) 285-9738.

Arts Festival- March 14, 2009

OPEN HOUSE- THIS WEEKEND!

FEATURED LISTING- The Stacks Lofts! Cabbagetown

Two Bedroom/Two Bath Multi-level LOFT! $239,900

The Stacks at Fulton Cotton Mill

170 Boulevard Ave. SE, E201

Atlanta, GA 30312

Corner 2 bedroom multilevel loft with soaring 25' ceilings, concrete floors, industrial windows with skyline & green space views, spectacular finishes in kitchen & bath, & flat screen TV in master bath. Enjoy pool, fitness, controlled access property, assigned parking space included. FHA APPROVED! HOA monthly fees $258.

Call me today for a private/personalized tour! (404) 285-9738.

How Big of a Mortgage Can I Afford?

Not only does owning a home give you a haven for yourself and your family, it also makes great financial sense because of the tax benefits — which you can’t take advantage of when paying rent.

The following calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too. Based on your current rent, use this calculation to figure out how much mortgage you can afford.

Rent: _________________________Multiplier: x 1.32Mortgage payment: _________________________

Because of tax deductions, you can make a mortgage payment — including taxes and insurance — that is approximately one-third larger than your current rent payment and end up with the same amount of income.

Lender Checklist: What You Need for a Mortgage

*W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for everyperson signing the loan.
*Copies of at least one pay stub for each person signing the loan.
*Account numbers of all your credit cards and the amounts for any outstanding balances.
*Copies of two to four months of bank or credit union statements for both checking and savingsaccounts.
*Lender, loan number, and amount owed on other installment loans, such as student loans andcar loans.
*Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
*Copies of brokerage account statements for two to four months, as well as a list of any other major assets ofvalue, such as a boat, RV, or stocks or bonds not held in a brokerage account.
*Copies of your most recent 401(k) or other retirement account statement.
*Documentation to verify additional income, such as child support or a pension.
*Copies of personal tax forms for the last two to three years.