Bob Howe
Senior Loan Consultant
Residential First Mortgage
(949) 852-0400 ext. 219
bhowe@OrangeCountyLender.com
www.OrangeCountyLender.com

U.S. Treasury Bonds
Maturity Yield Last
Week
Last
Month
5 Year 4.36 4.43 4.54
10 Year 4.45 4.51 4.60
30 Year 4.65 4.71 4.79

Treasury Market Summary: 

 

Treasury Trashing : The market got another smack-down today as data was mixed & mixed up the market, which came in looking better but succumbed to inflation concern, better earning/stocks & whatnot.  A global bond sell-off dragged on prices as well, while rate expectations lean more toward hold domestically. Prices also suffered some as the buck got battered & fried with euro taking out key points.  The market got sucker punched, giving back any gains seen lately, in part because they had put all their hopes in one rate cut basket.  The week ahead may see more of the same, with a smattering of mid-to-high-league data scattered on the calendar plus a run of Fed speak (hmm, gosh, wonder what they'll say).  On the week the short stuff took one for the team, swinging 8.5 basis points, while the curve which has resumed its push into a flatter pose briefly saw inversion today, with the 2-10-yr yield spread taken down to head out at just out, 0.5. The buck is giving back some gains against the yen as the G7 & weekend begins while the euro holds firm. Spot gold is up a goodly sum at 684.79 (+8.69) while crude pulled back as the session aged to 63.62 (-0.23). The week ahead brings retail sales, NY Empire index, net foreign purchases among other mid-lings with most eyes on CPI & housing. The Fed has Poole, Plosser & Fisher on Mon with others scattered through the week.
 

 

 

Economic Indicators for this week that could impact the mortgage or real estate markets include...

Finding and Using Your Own Realtor

 
Actually, the best thing for you to do when you see an advertisement in the paper is to call your own Realtor and tell them about the ad. Since addresses usually do not appear in advertisements, your Realtor will call the listing agent and find out the MLS number for the property.  If the listing is on the internet, it probably already provides the MLS number.  The MLS number allows the agent to access the listing directly on the Multiple Listing Service computer.  That reveals a lot more information than what is available to you on the web.  The house may turn out to be a great home for you, but it may also be a property the Realtor has already disregarded because it backed up to a busy noisy street and you have told your Realtor you wanted a quiet neighborhood. 

You Have to Find an Agent.  How do you do that?  If you're reading this, you're probably on the Internet.  One key to a successful relationship between a real estate agent and their client is that, in addition to representing your interests competently, they educate you about the process as it unfolds. So don't simply look for property on the web - look for an agent that informs you about the process.  Referrals are always a good way to go. Perhaps a friend, co-worker, or family member recently bought a house in the same community and had a good experience. However, if they bought a house twenty miles from where you want to move, it may not be a good idea to use the same Realtor.   You want an agent who knows the area in detail and has already previewed many of the homes available for sale in that community.  Community knowledge should be important to you because you are not just buying a house.  You are buying a home in a local neighborhood in a specific community.  Every Realtor can show you every property available for sale in the Multiple Listing Service. Since that is true, you can call any real estate office and find a Realtor willing to show you houses for sale. The problem is that you do not know if you are talking to an excellent Realtor or a lazy inactive one.

How to Conduct the Search for a Good Realtor One way to find candidates to interview is to talk to professionals from real estate related professions and ask their opinion. If you know someone who is employed as an escrow officer, title representative, homeowners insurance salesman, or loan officer, they will be able to recommend Realtors from the area they work in.  If you talk to a loan officer, be sure it is someone who deals primarily with purchase money first trust deeds and mortgages instead of refinances, second trust deeds, or finance companies. Since the latter do not deal with Realtors on a regular basis, they will not know who to recommend.  You could just make phone calls to real estate offices and ask questions. Ask the manager to recommend someone or ask a Realtor who he/she would recommend from another office. This will be a little tricky because the Realtor you ask will be "giving away" a commission, but you will find out who they respect as a competitor.   A new alternative to finding a Realtor is the internet. Look for Realtors who advertise themselves, not property. That way you have a pretty good idea you are getting a "buyer’s" agent instead of a listing agent. Look to see if their web page offers something to you in the way of information or other services instead of just telling you they are "number one." You want someone of value to represent you, not someone who is full of "puff."

Interviewing a Good RealtorWhen you interview Realtors for the job, you want someone who will be concerned about you and will take care of your interests. You want someone who demonstrates ready knowledge of homes available for sale and does not have to call you back after they "check on the computer." This ready knowledge demonstrates they have actually been out previewing homes and don’t just sit around waiting for the phone to ring.   You also want someone sharp enough to ask you questions as well, including your financial and debt information. By asking these questions, a good Realtor will be able to determine the proper price range you should be looking in. By asking about your family, an agent will be able to tell if what you need in a home is something available in your price range. You want a Realtor who is bold enough to talk straight with you instead of always telling you what you want to hear.

When a Realtor Asks to Meet With YouFinally, any decent agent will always ask for an appointment to meet with you, too. It is only natural, since they earn their living by commissions. However, Realtors are also supposed to act as your agent, looking out for your interests before their own. You want a Realtor who takes that responsibility very seriously. If someone seems too much like simply a salesman, then maybe you should look a little further.   

 

One should consult with a qualified real estate planning professional prior to implementing any real estate planning strategies. If you are an estate planning, insurance, mortgage, tax or financial planning professional receiving this newsletter, please call our office and introduce yourself to us.  We are always seeking to grow our referral network and expose more service professionals to our client base.