Archive for October, 2008
Act Now, Before the Fed Does
October 28th, 2008 categories: Market Updates
The Federal Reserve is scheduled to meet this week and announce its new Policy Statement and interest Rate Decision Wednesday . . . and will cut the Fed Funds Rate once again. This is no big surprise. Throughout 2008, the Fed has lowered key interest rates in an effort to stimulate the economy – including cuts in its Fed Funds and Discount Rates earlier this month in an unscheduled meeting. As we know however, cuts int hese interest rates do not translate into lower home loan rates. In fact, theytypically move in the exact opposite direction.
That’s the reason I wanted to share this information with you today. If you want to secure a lower mortgage rate, the best time to act could be before the Fed meets and announces its latest cut.
In the chart below, notice the pink line. That line represents the interest rate the Fed impacts with its financial policy. As you can see, the line has been consistently lower since January. The blue line, which represents 30-year fixed-rate mortgages, shows that mortgage rates have risen since the first Fed rate cut announcement.
So don’t wait until Wednesday. Whether you’re considering buying a home or refinancing your existing property, call Cameron Lewis of Beverly-Hanks Mortgage/828-258-1945, clewis@Beverly-Hanks.com  and he’ll review your individual situation and see what’s best for you and your family.   And don’t believe the hype about credit being impossible to get. Credit standards for many loans have tightened up, but mortgage money is widely available on home purchases for borrowers who can provide documentation and support their mortgage application.
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Mortgage Week in Review
October 27th, 2008 categories: Mortgage Reviews, Real Estate News
While the headlines were focused on the poor performance of the stock market, mortgage rates improved moderately during a volatile week. Mortgages rates were helped by a couple of factors. Seeking to reduce risk, investors sold stocks and moved the funds into relatively safer Treasury bonds and government guaranteed mortgage backed securities. In addition, slower economic growth and lower energy prices reduced expectations for future inflation. More good news for the housing market came from the September Existing Homes Sales report, which rose 5.5% from August to the highest rate since August 2007.
Another important development was a decline in Libor rates during the week. Libor rates are viewed as a primary indicator of credit market conditions. They are also an important benchmark for setting the rates on many consumer loans, including adjustable-rate mortgages. Libor rates shot higher during the credit crisis when financial institutions became reluctant to lend money to each other. The broad series of recent government actions brought Libor rates down closer to more normal levels.
The biggest event this week will be Wednesday’s Fed meeting. Investors have priced in a half-point rate cut, and they are waiting to see if the Fed will take any other actions to boost the economy. The most important economic data will be Thursday’s Gross Domestic Product (GDP) report. GDP is the broadest measure of economic activity. In addition, New Home Sales will come out today.Â
Brought to you by:Â Cameron Lewis, Beverly-Hanks Mortgage, Xinnix 2008 & MBSQuoteline
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Nearby Asheville attractions
October 23rd, 2008 categories: Area Attractions
OK, do you agree with me that the nightly news is depressing and we need to do or think about something other than the economy? Well, my husband Gary and I did just that. Since we are approaching peak leaf peeping season around here, what better than to get away and see the magnificence of it all, up close and personal. We chose to go on the Great Smoky Mountains Railroad. Only an hour and 15 min from Asheville, North Carolina, it was an easy trip and lots of tree colors along the way. We arrived about and hour and a half ahead of time and found a cute local restaurant to grab a bite to eat. It was crowded and by the time we got our meal and scarfed it down, we had just enough time to pick up our tickets and wait for the train.  These are our friends waiting from left to right: Linda and Dan Brown and hubby Gary.  That’s me & Gary cozy in our loveseat.
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We upgraded to a Club Car, which offered love 
seats and upholstered chairs. There are several club cars, we were in the McNeal car. Once on our way we were served cheese and crackers, and on our way back everyone in the car was served champagne and a toast to our good time!
Here are a couple photos of the scenery along the way, Lake Fontana & white water rapids. By the way, our next trip for next summer will be white water rafting with the Nantahala Outdoor Center.
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Mortgage Week in Review
October 13th, 2008 categories: Mortgage Reviews
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 This week the stock market fell to the lowest level since 2003. Normally mortgage markets improve during a stock market decline, since Fannie Mae, Freddie Mac, and Ginnie Mae mortgage backed securities (the vehicles through which most mortgages made today are sold) are considered a relatively safe haven. This week, however, the prices paid for these securities moved lower as well. One reason is that some investment funds have been forced to reduce their leverage and sell nearly every asset class in their portfolios. Another factor is investor concern that the supply of debt will increase significantly as the government funds its rescue actions. Mortgage rates ended the week moderately higher. Investors viewed the $700 billion rescue plan passed last week as a necessary first step, but not an immediate solution to the credit crisis. Governments around the world took a variety of additional steps during the week to support the banking system. A historic coordinated interest rate cut from many central banks took place on Wednesday. The Federal Reserve lowered the Fed Funds rate by one half point to 1.50%, citing reduced inflationary pressures due to an economic slowdown and falling energy prices. The Fed Funds rate heavily influences short-term interest rates, but its impact on long-term mortgage rates varies based on inflation expectations. In this case, the Fed rate cut most likely helped move mortgage rates a little lower, but the factors described above had more influence.The decline in home prices was a major cause of the credit crisis, and stabilization in the housing market will be important to resolve the problems. Little noticed this week, August Pending Home Sales jumped 7% from July, far above the consensus for a small decline. They were 9% higher than one year ago and were at the highest level since June 2007. Pending Home Sales are a leading indicator for the housing market, meaning that the next Existing and New Home Sales reports may show increases. Investors will be closely watching future housing market data to see if the trend continues.
The Economic Calendar will be full next week. The Consumer Price Index (CPI) inflation report will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. The Producer Price Index (PPI) will be released on Wednesday. PPI focuses on the increase in prices of “intermediate” goods used by companies to produce finished products. Retail Sales is also scheduled for Wednesday. Industrial Production, an important indicator of economic activity, will be released on Thursday. Housing Starts will come out on Friday. Consumer Sentiment, the Philadelphia Fed index, and the Fed’s Beige Book will round out a busy week. Investors will also be watching for additional government actions to ease credit markets. Mortgage markets will be closed on Monday in observance of Columbus Day.
Brought to you by:Â Cameron Lewis, Beverly-Hanks Mortgage, Asheville, N.C. 828-258-1945 Office, 877-293-5946 Toll Free, clewis@beverly-hanks.com
Courtesy: MBS Quoteline & Xinnix
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Let’s start Halloween early in Asheville
October 10th, 2008 categories: Interesting Tidbits
Since we’re all experiencing a little pain (a little?) from the volatile stock and credit markets, I thought it would be appropriate to post something that might bring a smile to your face. It’s October and soon it will be time for Halloween, so here’s a photo of our precious Dakota as a “Devil Dog”. The best dog we’ve ever owned!! He was very tolerant for this photo-op. If any of you out there have some Halloween pet photo’s you’d like to share, send them in to me and I’ll publish them!!
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What to do this weekend in Asheville
October 3rd, 2008 categories: Festivals
IT’S THE WEEKEND!!! Here are a few things going in the Asheville area on Saturday Oct 4th:
FOURTH ANNUAL SCARECROW FESTIVAL and CRAFT SHOW – 10am-4pm, Lake Julian Park, 75 Long Shaols Rd, Arden. Fourth Annual Scarecrow Festival and Craft Show that will offer the community an opportunity to view and purchase quality arts and crafts in a beautiful lakeside setting. Call Grace Young at 828-250-4265 or 828-777-5634.
ASHEVILLE AIDS WALK 2008 – 11am-2pm, Ferguson Auditorium, Asheville-Buncombe Technical Community College, 340 Victoria Rd, Asheville. Fourth year of the three-mile awareness walk from AB Tech to Downtown Pack Sawuare and back. Kids and dogs are welcome. Walk to show your awareness and compassion. Call Chris Winebrenner at 252-7489 or email: wncapvolunteer@wncap.org.
DOG ADOPTIONS – 10am-3pm. For The Love of Dogs Thrift Boutique, 2188 Hendersonville Rd, Asheville. They have a variety of dogs searching for forever homes. Call Denise Bitz at 808-9435 or email: mvet@aol.com
KAT WILLIAMS CONCERT: I’m a big fan of this lady, saw her just two weeks ago at the Biltmore Forest Ramble. Kick off event for Mental Illness Awareness Week. 7pm Trinity Presbyterian Church PC USA, 900 Blythe St, Hendersonville. $20, call 697-1581.
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