5 Factors to Watch in a Housing Recovery

Although the housing market has come a long way over the
past year, the recovery is still very fragile. As one of our
Coldwell Banker Residential Brokerage managers put it, the
market takes one or two steps forward, and then one back.

This is often what happens in an economic recovery after
the initial burst of improvement. Rarely do recoveries go in a
straight line, as much as we’d like them to. Federal tax credits
certainly helped bring the market off the bottom, but with
their expiration, the question many economists are pondering
is what – if anything – is needed to make sure the market
doesn’t fall back into a double-dip.

I recently came across an interesting article on
Investopedia.com entitled, “5 Factors to Watch in a Housing
Recovery” which was posted by freelance writer Stephen
Simpson. The article reviews the key factors that Mr. Simpson
recommends should be watched in anticipation of an eventual
housing recovery which is important for the health of the
American economy.

Winter’s Just Around the Corner. Are You Ready?

We’ve past the point of no return. The Autumnal Equinox occurred last week, and we’re now headed into the shorter, colder days of fall and eventually winter. Whether you live in a cold northern climate or a moderate southern climate, there are a number of steps you need to take to make sure your house and yard are ready for the impending winter season. By following the advice below, you can make sure your home is ready... inside and out! 

It’s been said there’s a pot of gold at the end of every rainbow.

Yet, after last week’s regularly scheduled meeting of the Federal Open Market Committee, the Fed helped gold seem more "charmed" than ever. What happened, and what does this mean for home loan rates? Read on for details. As expected, last week the Fed decided to keep the Fed Funds Rate (which is the lending rate banks charge each other for the use of overnight funds, and it is used as a base rate that many other lending rates are based on) at 0.25%. The Fed also reiterated that economic conditions warrant keeping the Fed Funds Rate low for an "extended period". 

When Your Child's School Asks You to Give, Give, Give...

Here's how to handle all those requests for classroom supplies, fundraiser contributions and more.

By Cameron Huddleston, Kiplinger.com

Parents, I know you're feeling the pull on your purse strings from you children's schools. You're being asked to contribute supplies to your children's classrooms (not just pencils and paper, but even cleaning supplies). You're expected to donate money to help with the schools' fundraisers. You're getting notes from teachers each week about this field trip or that art project you have to pay for if your children want to participate. 

I know because I'm a parent with one child in a public school and one child in a private preschool. As president of the parent committee at one of my children's schools and vice-president of the parent-teacher organization at the other, I also know how much the schools need financial support from parents. So how do you balance your desire to help with the reality of your own limited funds -- and avoid looking like a cheapskate if you can't open your wallet every time the school asks? 

Even though this is your child and his school we're talking about, you have to approach this like you would any other financial situation. You have to...

"NOT ONLY CAN WATER FLOAT A BOAT - IT CAN SINK IT ALSO."

"NOT ONLY CAN WATER FLOAT A BOAT - IT CAN SINK IT ALSO." Wise words, but you don’t need to know that Chinese proverb to know that a knife can cut both ways. The same is true with the strong ties between the Chinese and US economies. For example, news came out last week that Chinese factories stepped up production in August, which helped ease concerns of a double-dip recession in US and, as a result, helped move Stocks higher earlier in the week. But additional news regarding China is also impacting the Bond market - and could impact home loan rates in the future, depending on how the events unfold.

Simple Formulas for Affordability and Saving

Simple Formulas for Affordability and Saving

When people decide to buy a home, the monthly payment is a crucial factor. Conservative underwriting state that borrowers should allocate no more than approximately 30% of their gross monthly income for a house payment. Looked at from another perspective, this means if your monthly income is $4,000, you should keep your house payment under $1,200 a month.


How much home can you afford?

"ACTIONS SPEAK LOUDER THAN WORDS."

Despite the markets being closed last Monday for Labor Day, there was plenty of market action... and plenty of words from the Fed. So what happened, and what was said? Read on for details.
 
After the recent 4-month rally in the Bond markets, which has led to some of the best home loan rates in history, money has started shifting over to the Stock market. Why has this happened?