A report of existing home sales showed an unexpected rise in December.  Purchases grew 6.5% at the end of 2008.  As foreclosures have forced existing home sales down throughout most of 2008 it was nice to see a gain on board.

2009 is setting up to be another recording breaking year.  Hopefully we’ll see more positive news than in 2008, but with so much on the line it’s tough to say which direction it will go.  The sign of rising exisiting home sales shows that people are beginning to take advantage of the amazing purchase opportunity at hand.

Make sure you’re prepared to take advantage of the opportunities at hand!

Remember, opprtunities are never lost…someone will take the ones you miss!

Happy Monday!

Happy Monday!  I hope everyone had a great Thanksgiving Day.  I can say that those in the real estate or lending industry had plenty to be thankful for heading into the long weekend.  After the Feds announcement last week among other things, to purchase mortgage backed securities, mortgage rates dropped.  Rates on Wednesday were the lowest we had seen since January.  As I stated in my post “Help For Main Street”, there have been many recent announcements that have caused moments of opportunity for those looking to for purchase financing or those looking to refinance.  However, the volatility of the market has caused these moments to last for just a day or two.

Heading into a new week, we opened the market in positive territory this morning.  It looks like this moment of opportunity may be extended past the one or two day norm.  I’m certain that with the talk of our “slowing economy” or “recession”, we’ll need more than just a few days of low mortgage rates to stimulate our housing market.  As the week progresses we’ll see if this is simply another moment of “opportunity” or if it is a trend to stimulate our struggling housing market.

You’re probably wondering the story behind the two pictures above and how in the world it may pertain to the mortgage market.  On Thanksgiving morning I took Wyatt (my dog) for a walk around the block.  I returned to the awesome sight of a shattered window from someone breaking into our car (among four others in my neighborhood) on Thanksgiving eve.  My father-in-law was kind enough to help me vacuum up the glass as we were nearing our lunch time with the family.  Knowing the Oregon weather, we knew it was necessary to find a cover for the window.  He mentioned, “do you have one of those signs from church?”.  So I dug our Merry CHRISTmas sign out of the garage and thus the remedy.  Despite the broken window on our newer van we were able to make the most of the opportunity to share the simple sign that represents the true meaning of Christmas.  So far that is the extent of our Christmas decorating!

This morning Secretary Treasurer Henry Paulson announced a big step by the Federal Reserve to unfreeze credit for home buyers, consumers and small businesses, committing up to $800 billion.

Although the terms are still somewhat vague, some basic details were announced:  the Fed will purchase as much as $600 billion of debt that is issued or backed by government-chartered housing-finance companies.  A new $200 billion program will be implemented by the Fed to support consumer and small business loans.

These steps by the Fed are geared towards the consumers and small businesses as we’ve seen the credit markets tighten significantly in recent months.  The housing finance market today reacted positively early in the day with rates on a 30 year fixed at 5.5% (5.678% APR).  By the end of the day, the volatile rates inched up, but finished off at a 2 month low.

I can see and feel the government making pushes to restore consumer confidence with the recent intervention.  From the perspective as a loan officer I can see the short term benefits, such as the low rates available today.  However, we’ve seen pockets of opportunities with nearly every announcement by the Feds/Treasury.  I am anxious to see where this money will be spent and if it will have a lasting impact in the consumer and small business finance sector.

As we have seen the mortgage industry change in 2008, the FHA home loan has become increasingly popular.  The program offers a great opportunity for purchase with little money down and a refinance with great rates.

HUD (The Department of Housing and Urban Development) announced new loan limits this week.  Surprisingly, HUD decided to reduce the loan limits in many areas including most of Oregon.  The new changes will take affect January 1, 2009. Marion and Polk counties will be reduced to $271,050.  Please see the chart below for specific counties.

If you have questions about the FHA home loan program please don’t hesitate to email me at conrad@landmarkmortgage.com.

Today the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac, the nation’s largest mortgage finance companies, will begin accelerated loan modifications to lower payments for struggling homeowners in an effort to reduce foreclosure rates.

Now under a government conservatorship, Fannie and Freddie will target homeowners who are currently 90 days delinquent who have high debt-to-income and loan-to-value ratios.  The reduction in payment may come in the form of an interest rate reduction, a deferral of interest, an extended loan amortization period (i.e. 40 year term), or a reduction in principal.

Undoubtedly the question of fairness will rise with those who have been paying their mortgage on time.  However, with the amount foreclosures nationally continuing to grow throughout 2009, this might be much needed aid.

Further information will be available as details are released.

As many of you know, I am all about saving money and as the costs of college increase, I know many of you would also like to save money in the realm of education!  Today I read a great tip at www.greenglancy.com about textbook rentals.  When I was in school my wife and I were always trying to find the name and ISBN of our textbook before the term began.  We used the number to research online and find used books.  If we couldn’t find a steal of a deal online then we usually tried the student “resale” store that was open for the first couple of weeks of the term.  There may have only been one or two times when we had to pay full price for a textbook.

When the term was over and we no longer needed this expensive book, we then took the same steps to put a little money back in our pocket.  We would start by listing them for sale online and then would put them in the “resale” store for a couple of weeks.  This allowed us to realize a much less cost for the textbook by the end of the term.

If you are currently attending college classes, have a child attending classes, or know somebody who is attending classes, forward them this information so they can start saving a little money on those textbooks!

Click on the link Green Glancy to find out more about online textbook rentals.

For online textbook resale go to www.half.com or www.bookbyte.com.

Happy Veterans Day!  I want to give a personal thanks to every man and woman who has served or is currently serving for our country!

As a salute to our Veterans I am going to have a special opportunity for people to share about a person in their life that has served our country.

Please comment on the blog with a short story about how someone in your life has served our country and how they have affected you! Each story will be read, and on Friday I will have one of my colleagues randomly choose an entry and I’ll post a salute to that veteran and provide them with a a gift certificate to Venti’s Cafe!

So please put some thought into those who have impacted your life and fought for our freedom!

Happy Friday!

Today in a national news conference, president-elect Barack Obama said that he will push a stimulus package through “immediately after” taking office.  The call to action will be necessary if the Bush Administration doesn’t approve a stimulus prior to exiting office.  This news conference took place after morning reports of jobless claims grew to 6.5% in October, the highest since 1994.  Obama said the reports are “an urgent reminder that we are facing the greatest economic challenge of our lifetime.”

On October 20th I wrote about Ben Bernanke’s call to congress for the need of another stimulus package (click here to read post).  With the Federal Reserve, the Bush Admimistration, and president-elect Obama’s focus on the need for an additional stimulus package, it seems to be just a matter of time until we hear the confirmation.

Tuesday I posted information regarding the views of economic recovery/regulation for both candidates on “Regulation:  What’s Next?”.  With the election now over, the transition has started to take shape.  One of the first tasks President-Elect Obama will address is the state of our economy.

I strongly recommend this in-depth analysis by the New York Times of the historical recovery process.  Follow the link to President-Elect Obama’s Economic To-Do List.

Foreclosure is a definite buzz word (one of many) for 2008.  Foreclosures are devastating for some and can create opportunities for others.  The default rate on mortgages that has caused so many problems for our financial and real estate markets affects more than just those involved in the industry.  Those who have reached the point where they can no longer afford their mortgage payment have obviously gone through a substantial financial burden.  Regardless of whether the driving factor was a life change, loss of job, or poor financial consulting, a foreclosure is a devastating experience.

We are fortunate live in the Willamette Valley where the foreclosure rate is significantly lower than the national average.  However, I understand that those facing foreclosure could care less about the “national average”.  With at least 7 years of bad credit history following a foreclosure, the best option is to find a solution prior to having your house sold at an auction.

My mission to help my clients build a strong financial foundation goes beyond real estate financing.  In the area of foreclosures, education is important.  Knowing what to do if you are facing foreclosure can help save your financial foundation.  Real estate investors play a key part in the assistance for those who are in foreclosure.  A great local resource in area of foreclosures is LMC Properties.

LMC Properties is a sister company of Landmark Mortgage.  Our goal with LMC Properties is to create real estate solutions for those in need.  We offer free guidance to those facing foreclosure and for those looking to invest in real estate.

If you are interested in learning more about LMC Properties visit www.foreclosuresinsalem.com.  You can also email lmcproperties@gmail.com.