March 18th, 2008
Posted by Mark Clawson
I must admit that the mortgage market is getting very crazy and unpredictable. So do we need to be celebrating with a glass of wine and a nice dinner? You can be the judge.
Two weeks ago the thirty year fixed rate mortgage had a note rate of 5.875% and today it is 5.5%. This is good. However, the 3 Year Adjustable Rate Mortgage has gone from a note rate of 4% to 5.625%. This is not good. You can view all of todays conforming rates by clicking here.
My thinking is not nessarily supported in fact, however, I will give you my best read. Long term mortgage rates are pegged, somewhat, to long term Treasury Notes or Bonds. Short term rates don’t have such a mechanism at work. Bankers are having a hard time finding Wall Street investors for their ARM products and with little demand the rates are moving upward. I believe there is concern about home values in the short term. Prices are falling and there is concern about the borrower losing equity in their home. Without a pricing mechanism in place fear is coming into play.
For now, ARM Products for mortgage loans don’t look very appealing. The rates are higher than fixed rate mortgages.
March 4th, 2008
Posted by Mark Clawson
LAS VEGAS FORECLOSURES AND BERNANKE
Fed Chairman Ben Bernanke today put forth some new ideas on how to prevent homeowners from falling into foreclosure. Bernanke notes that lenders have increased their efforts toward “loss-mitigation” but he believes that more can be done.
He went as far as saying that lenders should “reduce the amount of the loan to provide relief to a struggling owner.” Bernanke stated that “Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure.” He indicated that “with low or negative equity in their home, a stressed borrower has less ability — because there is no home equity to tap — and less financial incentive to try to remain in the home.”
This would be a very tough sell to the lenders. Would they be pressured to write down the principal again in the future if housing prices continued to fall? Would the lender then share in any equity increase going forward?Lots of questions, but at least someone is thinking. The lenders are getting hurt due to the loan programs that they made available. The borrower is getting hurt because of a real lack of understanding the loan program that he signed off on.
We should be requiring our high school students to acquire the knowledge necessary to make decisions on home loans, as well as, understanding what and how credit scores work.
On the Mortgage Rate front, rates on 30 year fixed rate conforming loans have stayed pretty much the same. Three and Five Year ARMS are getting much better. It seems as though investors are not so concerned with the short term. They are worried about inflation and they are demanding higher rates on thirty year mortgages for that added risk.Here is a link to Conforming Mortgage rates for today.
Mark V Clawson 702-351-7912
March 2nd, 2008
Posted by Mark Clawson
Lake Powell is the second largest reservoir in the United States providing a water supply for over twenty million people living in the Southwest. Without this reserve we would all be in big trouble. There was a time when some were calling for the dam to be knocked down; thankfully, wiser minds prevailed.The thinking was that global warming would increase the frequency of El Nino and that flooding would put the dam at risk. In times of drought this is a special resource that helps to reduce the need for severe water rationing
Lake Powell is a scenic lake with many sandstone canyons and close to 100 major tributaries to explore.
Lake Mead needs Lake Powell. The picture above shows Lake Mead during the 1950’s drought. Actually, 1964 was the low water mark for Lake Mead. The last time that Lake Mead and Lake Powell were full was back in 2000. It took 18 years from the 1964 low point for Lake Mead to fill once again.
This year is looking much better for both Lakes. Some think that Lake Powell can recover close to 50-60 feet of elevation on their water storage. Some will flow through to Lake Mead. It will take more than one year of heavy snow to get us out of the water crisis that we are experiencing. It is a step and we can surely be happy that we have Lake Powell.
Here is a great link to water and the Colorado River.
Mark Clawson 702-351-7912 Loan Consultant
February 29th, 2008
Posted by Mark Clawson
The stock market is in trouble and mortgage rates are falling. A couple of days ago I wrote a post about the potential for a test of the recent lows in the stock market. It seems as though this may be occuring. The Dow Jones Industrial Averge was down over 300 points today. The recent low was 11,645 on January 23rd and we could see a test of that number next week. If you are in the market for a refinance or a home purchase get ready to act.
My guess is that the Fed will cut rates again at their March 18th meeting. When this happens I would expect that 30 Year Fixed Rate mortgage rates will move higher. The last time the Fed cut short term interest rates 30 Year Fixed rate mortgages did not benefit at all. Rates moved quite a bit higher and the reason was inflation worries.
Mark V Clawson 702-351-7912
February 29th, 2008
Posted by Mark Clawson
There are four ponds at Floyd Lamb Park and they are fed by a combination of wells and artesian wells. The park used to be operated by the State, however, it was handed over to the City of Las Vegas in July of 2007. Only the largest uppermost pond is stocked with game fish. Fishing season is all year long and the limit on your catch is three game fish. You will need a Nevada fishing license.
The Pond is stocked weekly with rainbow trout from November until March, and with channel catfish at least monthly from April through October. The Pond has produced some trophy sized fish. A 20 pound channel catfish that measured 28.5 inches was caught in 1996.
They say that small spinners, still baits such as salmon eggs, and fly fishing all seem to work for the rainbow trout.
February 27th, 2008
Posted by Mark Clawson
Marche Bacchus is a wonderful French Restaurant on the lake in Desert Shores that is truly where you want to be on a warm evening. The view is sensational and the reputation that the restaurant has garnered over the years is quite impressive.It has been voted the Best French Restaurant by the staff at the Review Journal and in a reader’s poll was named the Best Patio Dining in Las Vegas.
Playboy Magazine mentioned the Restaurant and its wine shop as a great side trip from the Strip. “Visit the wine shop and bistro Marche Bacchus, it has an outstanding grape selection which you can sample on the cozy back porch overlooking a man-made lake”.
Looking for some Romance?
You’ll certainly find it here. You can select a bottle of wine from the wine shop and with a reasonable corkage fee enjoy it right on the patio. Dine on delectable French cuisine expertly prepared by Chef Christophe Ihturritze as you savor this oasis in Las Vegas. Here is a link to their website.
Marché Bacchus
2620 Reggata Dr. #106
Las Vegas, NV 89128702-804-8008
Email us: info@marchebacchus.com
February 22nd, 2008
Posted by Mark Clawson
Thirty year fixed rate mortgage rates in Las Vegas continued to move higher over the past week. What I am seeing is a slight disconnect from the 10 Year Treasury note yield. Changes in fixed rate mortgage rates tend to mirror the movements in the 10 Year Treasury Note Yield. A week ago the 10 year Treasury note yield was at about 3.7% and today it is about the same. However, fixed rate mortgage rates are higher. So, what is happening?There seem to be three factors that are influencing this type of action on rates for fixed rate mortgages.
One, you have uncertainty concerning the impact of the increase in conforming loan limits on mortgage backed securities.
Two, investors are demanding higher returns given the lack of liquidity in the market and the perception that inflation is on the rise.
Three, there is concern over the viability and sustainability of the insurers who guarantee performance on bonds. It’s a crazy market right now.
I still think rates on fixed rate mortgages can go lower since rates are moving down when the stock market has problems. My guess is that we will see the stock market test the lows seen on January 23rd of this year. That number was 11,645.
So, if you are thinking seriously about buying or refinancing your home; you need to plan in advance. On January 23rd of this year fixed rate mortgage rates dropped, for one day, to about 5.25%. That was the day that the market hit 11,645. The next day rates were back to about 5.625%.
If you are prepared to act you might just get lucky. Here is a link to mortgage rates being quoted today. Mark Clawson 702-351-7912
February 21st, 2008
Posted by Mark Clawson
Here is a photo of the Canyon Ridge Christian Church in North Las Vegas.
February 20th, 2008
Posted by Mark Clawson
This afternoon I was driving around just south of Aliante and I noticed three attractive homes for sale. All threeof them are in the 3800-3900 block of Internet Avenue. Now remember I’m not a real estate agent so I had some trouble finding information about the properties. What I can tell you, with a fair degree of confidence, is that the next two homes are both about 3500 square feet. The one above is a little smaller.
According to a realtor that I spoke to; they seem to be owned by the banks and represent good value for the buyer.
This home is currently priced at $499,000 and an open house is expected this weekend. The price is likely to be adjusted downward, according to the realtor.
Hope I have the right house on this one. This home is said to have a pool and a casita. The price is $499,000, hence the potential for a price reduction on the last home.
I thought that these homes were a little different from what is normally seen in Las Vegas. They are not in a gated community, they just caught my eye and I have tried to find out more information on them.
When you decide to buy one, call me and I’ll help you with the loan.
Mark V Clawson 702-351-7912
February 18th, 2008
Posted by Mark Clawson
The Las Vegas Review Journal had an interesting article on the foreclosure market in the Las Vegas Valley this weekend. A time warp in real estate values seems to be occurring.
“Sometime this weekend, while you’re shuttling the kids to soccer tournaments or picking up milk at the grocery store, several dozen of your neighbors will go back in time nearly 10 years. They’ll see a 3,128-square-foot Christopher Homes house in Summerlin’s upscale Country Rose Estates on sale for it’s circa 2000 price of $370,000.”
The Housing Bubble is creating a Perfect Storm for many homebuyers, investors or otherwise. The Bubble which was created by over zealous investors, lenders and builders pushed prices too far and too fast. We are seeing a retrenchment in home prices which will probably be overdone.The values of homes in the Las Vegas Valley will recover and move forward again.
You can review my reasoning in this article Las Vegas Real Estate - Time to Buy. The recovery time for the Las Vegas Real Estate market may be longer than some had thought. The same lenders who gave you option ARMS, stated income and stated asset loans are now trying to be good business people. These changes will reduce the number of homebuyers who can qualify for home loans.
There is an inventory of 7,000 foreclosed homes on the market in the Las Vegas Valley and this is hurting everyone’s home values. They need to be sold and taken out of the market.
A new marketing strategy is unfolding in Las Vegas. The investor or homebuyer will “simply hop a ride on a foreclosure bus tour led by Barbara and Marshall Zucker of Prudential Americana Group, Realtors. Such tours have been hot since the fall in distressed housing markets in California, Florida, Michigan and Georgia. Now they’re revving up here.”
This seems like a great way to get a real look at the market and to find some true values. The bus tours are free and you will have a chance to view multiple properties.
To read the full article “Home sellers warp time” in the Review Journal here is a link.
Mark V Clawson 702-351-7912 Your Local Mortgage Loan Consultant
