Rates Hit New Low After QE2 Announcement

Rates Hit New Low After QE2 Announcement

Reacting to the Fed’s QE2 announcement, interest rates responded by setting new lows. The 30-year fixed rate dropped to 4.17, down from 4.24% last week. The 15-year fixed rate also set a new low at 3.57% down from 3.63% the previous week. The 30-year is down significantly from last year’s 4.91%.
This new low should cause a boost in refinance activity and even some purchases as consumers make year end moves. This year end spike could lead us to some decent home sales numbers at a time the worst in housing price declines are yet to come. The Fed’s QE2 shouldn’t cause rates to fall much further, but we are close to testing 4%. If rates fall below 4% that could create a large burst in purchase activity.

The year end will look great if we reach a 4% rate. Let's keep our fingers crossed that we will have a buying frenzies.

Top 10 Cities With Most Underwater Homes in America

Top 10 Cities With Most Underwater Homes in America

1. Las Vegas, Nevada          80.2%
2. Phoenix, Arizona              68.4%
3. Reno, Nevada                 64.4%
4. Orlando, Florida               64.2%
5. Stockton, California         57.5%
6. El Centro, California         55.0%
7. Modesto, California          53.9%
8. Lakeland, Florida             53.7%
9. Port St. Lucie Florida       52.0%
10. Fort Myers, Florida          51.6%

The list was compiled by Business Insider with data by Zillow

If you are in the market to buy in any of these area you might consider looking. Money is at very low rates and the market has a large inventory to choose from.

5 areas to think about in selling your home.

5 areas to think about in selling your home.
There are 5 areas that you must focus on when thinking of selling your home:

1. Curb appeal – First impression is extremely important.  Potential buyers must be wowed from the curb, with an inviting property that gets buyers inside.  Fresh paint, landscaping and some good contrast with your trim can drastically improve curb appeal at minimal cost.
2. Kitchens – Kitchens sell houses, plain and simple.  Functionality with some pop can be achieved without going overboard.  Kitchens are the one place where you can add the most value in a home; don’t hesitate to look for energy saving appliances.
3. Bathrooms – Significant value can be added in the bathrooms.  Adding a new bathroom or converting a half bath to a full bath is one of the best value added decisions.  It is still not necessary to go overboard as the increased value can be added at a reasonable expense.  Also, don’t hesitate to put in water saving toilets.
4. Go Green – Applying some green upgrades definitely commands a premium in your sales price.  Appliances, toilets, heating/cooling, energy saving components, green paint — many of these items do not add much expense, but can result in increased profits
5. Unique Selling Points – Some houses have unique features such as views, access to water (lakes, ocean, etc.), decks, 5 car garages, huge lots, and so on. Often times these selling points can be emphasized with minor changes to increase value and desirability.

This is only a suggested list to keep you thinking about more money in your pocket.

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