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I have clients ask me all the time, "What do you think will happen to interest rates this year?" It is sometimes a complex question to answer, but smarter people than me seem to be aligned in the answer that rates are heading up and to the right as we speak. This article was written by John Schutze, Senior Loan Officer at Supreme Lending. Please read it and take John's words to heart. What we have known about rates during the past few years seems to be coming to a screeching halt--don't let it catch you unaware. tT ______________________________________
"A short comment by Janet Yellen, Chair of the Federal Reserve, caught investors off guard on Wednesday,
and the reaction was not good
for mortgage rates. In addition, a reduction in tensions in Ukraine
caused investors to return to riskier assets, hurting safer assets such
as mortgage-backed securities (MBS). As a result, mortgage rates ended
the week higher.
Rates (with 1 discount point or less)
30 Year Conven. ......4.5%
15 Year Conven. ....3.5%
5 Year ARM .....3.125%
FHA – 30 yr ......4.25%
VA – 30 yr ........4.25%
USDA – 30 yr .....4.25%
Jumbo 30 yr .....4.5%
Jumbo 5 yr ARM .......3.25%
widely expected, the Fed scaled back its bond purchases by $10 billion
to $55 billion per month. According to Yellen, if the Fed's economic
outlook does not change significantly, the bond purchases
are expected to end in the fall of this year. Fed officials have long
maintained that they expect that the fed funds rate, the Fed's primary
tool for monetary stimulus, will remain near zero for a "considerable
period" of time following the end of the Fed's
bond purchases. The big surprise came during Yellen's first press
conference as Fed Chair, when she defined the meaning of a "considerable
period" as about six months. This would place the first fed funds rate
hike in the spring of next year. Before Yellen's
comments, the market consensus was for the first rate hike to take
place near the end of next year. While mortgage rates are not directly
tied to the fed funds rate, the economic strength implied by the
expected timing of the first fed funds rate hike was
unfavorable for bonds of all maturities.
Most economists expect 30 yr rates
to reach 5.0-5.25% as we reach the end of the Fed’s bond purchases later
this year. The added threat to increase that the Fed Funds rate makes
5.25%-5.75% a possibility."
John Schutze is one of the Senior Loan Officers at Supreme Lending in Austin. You can contact John through one of his many online sites, includingwww.JohnSchutze.com.
Being able to spot the differences between flooring materials is not always as easy as it sounds. Just looking at a picture of a room is not enough and sometimes walking on the floor is not enough to tell the difference either. Now, this was not always true and there are some floors that you can tell immediately that they are inexpensive laminate floors, but not all laminate floors are inexpensive these days and not all hardwood floors are solid wood.
Let's start with the basics. Hardwood. A solid hardwood floor plank is made from a single piece of wood. It is cut to a size, sanded and a manufacturer's edge of some description is added to the edges so that pieces can fit together (this board has a tongue and grove edge). The edges may be unique to the manufacturer, but are not unique to solid hardwoods. What makes this material unique is the thickness of the solid wood section. Solid hardwood is thick and lends itself to being sanded and refinished multiple times--depending upo…
My contact and experience with management companies is fairly extensive--both as a home owner/investor and in my experience as a Realtor with many different management companies in condo associations and single family communities alike. What I have seen over the years is that management companies have the tendency to become complacent with time and then become unresponsive and ultimately become very arrogant about their (paid) role in the management of the affairs of a Home Owners Association (HOA). Sad, but true and this seems to be a predictable truth.
Not only have I seen management companies that will not return phone calls or answer questions, but I have seen Management Company Representatives in annual meetings tell the home owners what they could and could not do in their association and treat home owners as if they were unruly children under the parental care of the management company. Well, I am here to tell you the Home Owner…