Mortgage Rates Very Slightly Improved Ahead Of Employment Report

Provided By: MortgageNewsDaily.com

Mortgage rates were very slightly lower in most cases, making for marginal improvements in borrowing costs within the confines of recently higher interest rates. In other words, today's quoted rate is likely the same as yesterday's, depending on the scenario, with a token reduction in closing costs (or increase in lender credit). In many cases, there was no improvement to costs, and a few lenders were slightly higher in cost. 30yr Fixed, Best-Execution remains at 3.625%, though lower rates are still available.


Treasury and MBS trading was EXTREMELY quiet today as if to suggest a certain calmness before a potential storm (MBS are the mortgage-backed-securities that most directly influence mortgage rates, and they tend to trade in the same direction as Treasuries). The storm in question is the mighty Employment Situation Report that will be released at 8:30am tomorrow morning. This is the single most important piece of scheduled economic data each month and tomorrow's has the potential to be hugely important in light of the abrupt changes we've been experiencing in interest rates. If it shows much better-than-expected job creation, rates could be significantly higher tomorrow. Conversely, a downbeat report would likely have a substantially positive effect on rates, and also stands the chance to get the recent trend moving back in the other direction. That sounds enticing, but risks of floating continue to outweigh rewards for now.


Loan Originator Perspectives
"Few if any lender reprices today, a refreshing change of pace from recent days. Tomorrow's NFP report has the potential to move rates, but it would take a remarkably poor number of new jobs created to move MBS much. Seeing a lot of momentum selling now, and when that snowball starts rolling, it's tough to stop." -Ted Rood, Senior Originator, Wintrust Mortgage.
"Floating through tomorrow's data is highly risky, so float at your own risk. My personal view is we would have to see a number greater than 225k for it to hurt mortgage rates. Anything under we either hold here or rally. My belief is we see a lower number. " -Victor Burek, Open Mortgage.
"We're taking the rate improvement between yesterday's mid-day Fed announcement and today as an opportunity to lock clients at the best levels since this MBS selloff picked up steam a week ago (rates rise in a selloff and drop in a rally). MBS technicals are still too foreboding and upside rate risks outweigh benefits of "holding for better" ... especially for clients on short time horizons, like those in contract to buy homes that need to close in the next 20-30 days. " -Julian Hebron, Branch Manager, RPM Mortgage.
Today's Best-Execution Rates

• 30YR FIXED - 3.625%
• FHA/VA - 3.25% - 3.5% (varies more between lenders than conventional 30yr Fixed)
• 15 YEAR FIXED - 2.875%- 3.00%
• 5 YEAR ARMS - 2.625-3.25% depending on the lender

Ongoing Lock/Float Considerations

• Rates have risen moderately from their all-time lows, making for relatively increased reward for floating at the expense of greater risks of loss.
• Rates could easily move higher or lower, and unscheduled, unexpected events can ultimately have the most say in the direction.
• Near term risks in 2013 include the upcoming debt-ceiling debate in Washington as well as the Fed's policy outlook regarding securities purchases.
• Prospects For Extending The Debt Ceiling Deadline currently seem to be preventing a move back down in rate. Passage of such legislation could further support a rising rate environment.
• (As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario. There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you're following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

8.6 Million Mortgage Originations in 2012, Highest Since 2007

Provided by MortgageNewsDaily.com

The December Mortgage Monitor report released by Lender Processing Services and covering performance data for the full 2012 calendar year, found that while mortgage delinquency rates remained at elevated levels, they have shown steady improvement, ending the year 32 percent lower than the January 2010 peak. Additionally, following a year of regional improvement in foreclosure inventories (marked by stark contrasts between judicial and non-judicial foreclosure states), the national foreclosure inventory rate began to decline toward the end of 2012 from historic highs experienced during the crisis.


In addition to presenting statistics on December delinquency rates and foreclosures, much of which was previewed earlier this month, The Lender Processing Services (LPS) Mortgage Monitor looked at several other key issues including new Qualified Mortgage Rules and changes to servicing regulations.
LPS said that had the Consumer Finance Protection Bureau's (CFBP) QM rules that were released last week existed in 2005 at the height of the housing boom they would have restricted at least 23 percent of loans originated in 2005. If those rules were in effect in 2012 they would have affected only 2 percent of mortgage originations.

The "refinancible" loan population continues to grow, even as new originations rise. Leveraging data from the LPS Home Price index, LPS found that 2012's appreciation in home prices has helped to improve the U.S. equity situation and create even more refinance opportunities. Negative equity is down 35 percent since the beginning of the year and nearly 4 million loans that were below conforming loan-to-value (LTV) thresholds for refinancing last year would meet those standards today. An additional 3.4 million loans that are on the cusp of conforming loan-to-value thresholds stand to benefit, if the home price situation continues to improve.


The total U.S. foreclosure pre-sale inventory rate in December was 3.44% of all mortgaged homes in the U.S. The month-over-month change in foreclosure pre-sale inventory rate was -2.00 %


According to LPS Applied Analytics Senior Vice President Herb Blecher, 2012 also saw a return to relatively high levels of mortgage origination activity.

"Though still a long way off from the historic level of originations that preceded the mortgage crisis, 2012 was the strongest full year of originationswe've seen since 2007," Blecher said. "Volumes were up approximately 34 percent year over year, with about 8.6 million new loans originated. And, while the majority of these new loans were government-backed - 84 percent in 2012 as compared to just over 50 percent at the peak - the trend over the last four years does suggest a slowly resurgent non-agency lending market."

Home Improvement

Provided By: Better Homes.com

It's never too late to fall in love with your home again. Whether you want to customize a basic builder design or renovate an old home, you can convert the existing space into your dream home with smart updates, careful planning, and the right professionals. Create a home that is as functional as it is livable with updates that help it reach its fullest potential. Browse these ideas to restore beauty in your home, and maximize space with projects that fit your time frame, budget, and style. We'll share our best home improvement updates, budget ideas, material recommendations, and remodeling advice to get your project started on the right foot. Learn how to budget for home remodeling costs, how to plan a home addition, how to update your home's exterior, how to add architecture to your home, and more. Try new interior and exterior paint colors for free with our virtual Color Finder tool, and take our countertop and floor finder quizzes to discover your perfect material matches. Find inspiration to create bathrooms, kitchens, garages, home offices, decks, patios, and entryways you'll love. We also have weekend project ideas, home plans, kitchen and bath planning guides, and storage solutions.

Home Decorating Tips

Provided by HowStuffWorks.com


Every house should be a warm haven, a place where we throw off the cares of the world and relax with family and friends. From the kitchen where we launch our busy days to the bedrooms where we close our eyes at night and dream, we want each space to reflect our personal tastes and sensibilities. But we desire that our rooms be comfortable and practical. Pulling all the components together is a tall order, and yet it's also wonderfully rewarding. Use the home decorating tips we've provided here as inspiration, and create the kinds of rooms your loved ones will want to hurry home to enjoy.
Formulate a Decorating Plan

Before you get to work tearing down walls or throwing the paint up on the walls, there are a few steps to take first. Take the time to formulate a decorating plan; it'll save you time and money.
Decorating Tips for New Homes

If your home is being newly constructed, now is the time to get involved in decorating before the home is completed! Use these decorating tips for new homes, and learn how to make an imprint on your home before the contractors finish their job.

Integrating New Decorating Ideas

Decorating a room in a new style can clash with the old style in adjoining rooms. Learn how to integrate new decorating ideas throughout your home so that the style feels unified, not disjointed.

Form and Function in Decorating
Everyone wants their home to be pretty, but to make it inviting as well, it must live up to its function. Is there ample seating in the TV room for big families? Is there enough space in the entertainment room around the pool table to shoot? Learn how to combine form and function to create an ideal living space.

Tips for Starting a Decorating Project
Before your start decorating a room, it's best to assess what you have to work with. Is the dry wall caving in? Is the plumbing leaking? Fix these things first, and then you're ready to start your decorating project.

Tips for Decorating on a Budget
Most people can't afford to undertake a huge endeavor, like decorating a room, without looking at the final price tag. If you're decorating on a budget, these tips will help you achieve the look you want without the exorbitant cost.

Organizing a Decorating Project
These tips on organizing a decorating project will not only help you track your current undertaking but future ones as well. Plus, good organization can help you save money in the long run.

DIY Decorating vs. Using a Professional
Although do-it-yourself projects can be fun and rewarding, they aren't always feasible. Unless you're an expert at removing asbestos or wiring electricity, it's best left to the professionals. Use these tips to determine what you can handle and what you should hire out to contractors.

Achieving Balance with Decorating
Love that oversized chair but feel like it swallows up all the space in the room? Want to display your tiny trinkets but afraid they're too delicate for a large space? Learn how to achieve balance with decorating and make any space -- no matter its size -- visually pleasing.

Decorating with Color
Adding a splash of color to any room livens up a space. But before you select a color, consider the function of the room and how the color makes you feel. If you're a morning person, painting your bedroom a bright magenta may help you start the day with energy, but if you can't face the morning without a strong cup of coffee, a soothing shade of blue may be best. Learn more about choosing a color scheme.

Tips for Decorating with Texture and Patterns
Color isn't the only way to infuse a room with personality; texture and patterns are a great way to add a unique touch. From velvet fabric on a sofa to mosaic tile-covered end tables, texture and patterns draw the eye to interesting details. Use these tips to decorate with texture and patterns.

Lighting Design Tips
Do you have a gorgeous painting hidden in the shadows? Do the overhead lights in your cozy bedroom make it feel more like a hospital room? Learn how to design a lighting scheme that bathes each room in your home in the perfect glow.

To learn more about interior design and get tips and information on decorating your home, visit:

• Interior Decorating: Get tips on how to decorate your home and read about organizing a project and selecting an interior design that fits your lifestyle.
• Decorating a Room: Find out how to decorate a room from floor-to-ceiling.
• Decorating Styles: Are you traditional or eclectic? Learn about decorating styles for your home.
• How to Design a Kitchen: Create a kitchen that works for you and get tips on how to choose and place appliances and create a decorating scheme.
• Kids Rooms: Get tips on decorating your child's room, with information on colors, smart strategies, and money-saving tips.

'Normal' Housing Market May Not Be What It Used To Be

Provided by Realty Times.com

The housing recovery is underway, most agree. But that assumes residential real estate is on a path to some level of normalcy that will be more sustainable than the last boom-bust housing cycle – the boom-bust cycle that took the economy down with it.

Fannie Mae recently swirled the tea leaves, gazed into the crystal ball and honed in on some hunches to describe what housing's move to "normal" will entail.

Fannie Mae is a government-sponsored enterprise (GSE), created to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities.

So, the GSE really went a lot further than soothsaying. It took stock of economic trends, the new regulatory protections, federal fiscal policy, the global economy and other indicators in an attempt to get a handle on what could be in store for housing and the economy in general.

But the GSE's recent white paper "Transition to 'Normal'?" comes with a question mark because clouds of uncertainty continue to hover over both the economy in general and real estate more specifically.
Both recoveries remain in a stage of infancy and are still too week to sustain the kinds of major "What ifs?" or "Oh, nos!" that always loom.

Fannie Mae says, given how long it's taken the nation to reach this point, don't expect skyrocketing home prices and a Wall Street gone wild.

'Below-potential growth'
"Our forecast is that 2013 and 2014 will exhibit below-potential economic growth. This is despite the fact that we expect the housing rebound will continue and that the economy will benefit from the gradual increased growth of U.S.-based manufacturing, as well as the expansion of domestic energy production," Fannie Mae sums it up.

More specifically, the report points to some positive trends that bode well for housing.

• If Washington can get it's act together, the move on Capital Hill is toward tighter fiscal policy – the government will write fewer checks it can't cash. That legislators are more focused on a sensible fiscal policy is a start.
• While there have been some rumblings the Federal Reserve's Federal Open Market Committee (FOMC) won't hold the economy's hand as long as originally planned, the Fed isn't likely to leave the economy twisting in the wind.
Rather than peg benchmark rate increases to some date on the calendar, say in 2015, the Fed plans to keep rates low until the unemployment rate is sustained at 6.5 percent. That more close ties the Fed's move to the economy.
• Thus far, Fed moves have helped keep mortgage rates low long enough to help support the recovering housing market with affordable financing. The Fed's recent Senior Loan Officer Opinion survey even revealed lenders are letting go of the purse strings, if only a bit.
Fannie Mae expects mortgage rates to remain relatively low and affordable "over the next few years," rising to no more than 4.2 percent by the end of 2014.
There could be greater costs assigned to Federal Housing Administration loans, as the FHA struggles to remain solvent.
And 2012 could have been the last year for the refinance boom.
"We expect 2012 to be seen as the high watermark for refinances and 2013 as the first of several transition years as the housing finance market transitions back to a more normal balance between purchase and refinance activity."
• Understandably, given the uncertainty, economic growth is low and slow, but sustainable. December revealed some resiliency in the job market and income growth reflected greater job security. Fannie Mae says to expect annualized growth of around 2 percent for the year.
• Autos are almost selling like hotcakes and housing isn't just blowing smoke. Both contribute to manufacturing, a major economic driver. Manufacturing should get a boost if business can count on more sensible fiscal policy from Washington, D.C. to help make hiring a growth industry.

Sticky housing recovery hopes
So long as those factors continue to converge and congeal, the housing recovery should stick.
Every month, reports reveal the recovery is picking up steam and holding it's own even through the traditional seasonal downturn of a "normal" market.

Foreclosures are declining from their peaks, foreclosure alternatives are more common and new household formation is on the rise.

Home builders can't build homes fast enough to offset shrinking inventories in both the new and existing homes market and that's pushing up prices, hopefully not faster than interest rates will rise.
Fannie Mae says housing starts should rise 23 percent in 2013, 60 percent more than the record low in 2010. Starts won't reach sustainable levels until 2016.

"Given our expectations of continued improvement in housing starts, home sales, and home prices in 2013, we project that purchase mortgage originations will rise to $642 billion from a forecast of $518 billion in 2012."
It's a start toward normalcy.

The Shakedown In Homeowner Associations

Provided  By: Realty Times

There's a gangster in the 'hood. He's rough, he's tough and he's gonna show the board who's boss. He's holding his monthly assessment hostage to extort action from the HOA. It could be something he wants fixed or some rule he wants changed but no change is going to come until he gets his way.

This kind of shakedown is fairly common in homeowner associations. It usually comes up when an owner's requests for maintenance have been ignored. Sometimes it's because of how the board is doing business: secret meetings, abuse of power, poor or unequal rule enforcement. So there is a demand for change which often includes an element of righteous indignation: “I'm not gonna TAKE it anymore!”

Sometimes the excuse for the shakedown is legitimate. Repeated maintenance requests have gone ignored. The roof has been leaking for weeks and damage is being done to their personal property. Or there's been a junk car with flat tires and a growing oil slick parked in front of their unit for months and yet still no action. So, one morning, Mr. Irritated wakes up and thinks “Hey! I pay my fair share. If I can't get service, I'm not paying any more!” There are several courses of action that the board can take. Keep in mind that anyone that has withheld money has already had the last straw broken and is not likely to be very cooperative. There's going to be a certain level of resentment built up that must be overcome before communication can take place. So, rather than write a letter or email which can easily be misconstrued, a personal phone call or visit is the best first step. This will address the feeling of being ignored. Express concern and get to the bottom of the problem. This is a fact finding mission so get the facts: dates, places, he saids and she saids. Keep notes. Then ask what it will take to resolve the issue now. This is where it gets tricky. The answer you get may or may not be reasonable. If the request is entirely reasonable, assure that steps will be taken to move it forward. Give a time line for getting the task done and ask that you be called personally if it isn't. Ask that the assessment be brought up to date in the meantime so late fees aren't incurred. Offer to waive any that may have already been assessed if the balance is resolved within 48 hours. This will allow a graceful way out and demonstrate that you sympathize. If the request is not reasonable, not the HOA's responsibility, not budgeted or planned, explain that to make sure that it's understood. Maybe it has not been properly explained before. If it has and the response is “I could care less. I'm still not paying until it happens.” then conclude the conversation by saying you understand what's being requested but can't accommodate the request for such and such reasons. Add that the request can be formally appealed to the board but that withholding money could negatively affect the board's decision. Ask that the hold be paid so late fees and collection costs aren't added to the balance.  Another scenario to consider. The hold back may be a cover up for a lost job or some other financial setback. That throws a different light on the issue and solution. Ask if there is something else, like a financial problem, that's driving it. You might be surprised how often it is and, when caught off guard with your question, an owner will 'fess up. If this is the case, focus on the truth of the matter. If there is a financial problem, maybe there is an accommodation the board can help.  Shaking down the HOA can be based in exasperation, a hidden agenda or personal finances. It's important to understand the underlying motivation so that reasoned action can be taken. Getting to the bottom of it will help you make nice.

Rents Hit Ceiling As More Renters Become Buyers

Provided By: Realty Times

With more and more households fed up with the rising cost of rent and with homeownership often more affordable on a month-to-month basis, rents hit a wall in the fourth quarter last year.

On the heels of MPF Research's report earlier this month that said rent increases fell last year compared to 2011, RealFacts also says the skyrocketing rent trend is coming to an end. RealFacts' database consists of 3,300,000 rental units, in more than 13,000 properties located in 96 metropolitan statistical areas in 14 states. The properties include apartment rentals from studio-size to townhomes in complexes of 50 or more. The rental data cruncher said the national average rent increased by $21 a month to $1,209 in the second quarter of 2012. Landlords tacked on another $13 a month average increase in the third quarter. However, in the fourth quarter of 2012, rents simply stopped growing, actually dropping an average $2 a month to $1,040 a month. "What has changed in the past quarter? Demand for single-family housing. Statistics confirm a more robust for-sale housing market is now emerging, recovering from its long hiatus," said says Sarah Bridge, founder and managing member of RealFacts LLC.  Bridge added, "Where there was once a bloated inventory of houses for sale with many homeowners losing homes to foreclosures or opting for a short sale to avoid foreclosure, new listings are now fewer and far between. Combined with the short supply are record low interest rates currently hovering at around 3 to 3.5 percent." What's more, metropolitan areas that experienced the highest rent growth are now becoming centers of housing recovery. "How we confirm that rents have hit the wall is by examining primary market leaders of the recent past like San Francisco (rents up 8.8 percent on the year) and San Jose (rents up 9.3 percent on the year). For the past several quarters, those market leaders have experienced a slight but consistent decrease in occupancy rates, which is an early indicator of rents falling," Bridge said. "RealFacts made its prediction that San Jose and San Francisco would peak in early 2013, but it appears this has already happened in the fourth quarter of 2012," she added. Other recovering for-sale housing markets with soaring rents include, Boulder, CO where rents rose nearly 11 percent on the year; Charlotte, NC, up 8.4 percent; Seattle, WA, rents up 7.8 percent; Greensboro, NC, up 7 percent; Denver, CO, up 6.7 percent; Salt Lake City, UT, up 5.9 percent; Austin and Houston, TX, up 5.7 percent and 5.5 percent, respectively, according to RealFacts.Less room for rental growth is the general trend, but there are exceptions.  Fourth quarter rents also rose in Miami, FL; Greensboro-High Point, NC; Bakersfield, CA and Atlanta, GA.  Occupancy rates show mixed results with half the markets on the rise and half on the decline. "We may see increased occupancy in the near future as rents are priced at sustainable levels, or we may see vacancy on the rise if a glut of new construction hits a market all at once," Bridge said.

Social Media: A Resolution Worth Keeping

Provided By: Realty Times

For real estate agents, successfully using social media and blogging can be a significant challenge. The process is both time-consuming and potentially difficult to decipher. But, with the right tools to achieve these tasks, agents can transform their marketing and communications strategies.

This opportunity depends, however, on using the right service to perform three specific tasks: the ability to handle subscriptions, circulation tracking and testing, while also maintaining compatibility with all major blogging platforms and services such as Blogger, WordPress, FeedBurner, Joomla, Drupal and Typepad. And, in contrast to other options that offer some of these features, real estate agents need a user-friendly and reliable way of achieving this mission across all forms of social media. As I have stated before, the advantages for real estate agents are many, since this concept facilitates the way industry professionals can sift through breaking news, financial data, postings about recent transactions and customize the information they receive on a daily (or hourly, or up-to-the-minute) basis. Compare this approach with other models, where the real estate industry, with all due respect to the many fine agents and brokers who do an excellent job of representing their clients, is costly and unproductive: news is hard to decipher, opinions vary significantly, and technology (or its use as a means of distributing valuable content) is almost an afterthought. This situation worsens already serious problem for real estate agents who want to embrace the power of blogging, and need an efficient - and effective - resource to accomplish this mission. Fortunately, there is an easy way to improve this dynamic. Technology enables us to emphasize the benefits of transparency. In other words, real estate agents can reach their target readers (which include current and prospective clients), email newsletter campaigns, expand their reach with social media and increase sales. This option, which combines the convenience of the Internet with the opportunity for a multitude of agents and brokers to increase their name recognition among specific groups of people, is a proverbial win-win scenario. In fact, by applying this concept to the real estate industry - and through our shared interest in empowering these professionals and their colleagues - brokers can save money, facilitate a greater flow of deals and enjoy the ready availability of information, courtesy of the right brand of software. In addition, these benefits apply to other facets of the real estate industry, where developers, landlords and tenants have their own stake in social media. Giving these different groups a fast and easy way to measure the power of blogging, and to then receive news based on their own interests and timetables, is the very thing these busy professionals want and deserve. Consider the following: these individuals must make important decisions, with accurate information at their disposal, for which the Internet in general and the right software in particular can mean all the difference. This proposal is a chance for real estate agents and brokers to highlight the necessity of sending and receiving important data, complemented by new technology. The other beneficiaries - the firms that want a better way to identify, segment and analyze information - are part of this transformation, too. These events are worthy of our attention and adoption, since they promise to strengthen communications and make realtors more successful in their various forms of client outreach.

What is Sales Call Reluctance?

Provided by Realty Times

What is sales call reluctance? There are numerous definitions that industry experts have devised. Some describe it as a fear of rejection; others describe it in terms of a fear of failure. In their landmark book, The Psychology of Sales Call Reluctance, George Dudley and Shannon Goodson describe sales call reluctance as "an emotional short circuit in an otherwise motivated and goal-oriented person."

To really have true sales call reluctance, you must have clarity in your goals and objectives. In short, you have to know why you are making the calls you are making beyond the need to meet this month's quota. For most of us, when we have clarity in the why, the how becomes easy.

My father, as a dentist, only worked Monday through Thursday. He was always around on Fridays when I came home from school. The biggest benefit to this was in the summer when we left Portland every Thursday afternoon to spend three days at a second home on a lake that was a quarter of a mile from the Oregon Coast. Some of my fondest memories as a child and youth were swimming, sailing, water skiing, walking the beach, and playing at our family lake house. My father's why was born out of his love for my mother. The reason for his financial success was the challenge of Multiple Sclerosis that they faced together. My mother was diagnosed with MS when I was three years old. By the time I was in the second grade, she never took another step. The last years of her life were spent without the use of her arms, legs, hands, or feet. My father's big why for wealth was to provide her with the most extraordinary life possible during each stage of her disease; to be able to travel with three sons and a wheelchair bound wife to Mexico, Asia, Hawaii (annually), and many other locations. But mostly, he wanted to be able to care for her in her aged years in their home with the use of full-time care givers, so she could live in the home she raised her children in; to have the best quality of life imaginable for someone in her condition. That was his why. What's yours?You also must have motivation to achieve in order to experience call reluctance. If you don't have motivation or desire, it's not a case of call reluctance. Motivation and goals are often connected in people. It's easier to have motivation to achieve if you know what you want to achieve. The goals stoke the fire of motivation and desire. In Dudley and Goodson's studies, they determined that sales call reluctance can be traced to four core sources

1. Predisposition
2. Heredity
3. Exposure
4. Personality

We can acquire sales call reluctance from our parents and the environment that we grew up in. Maybe our parents were technically inclined and technically educated like engineers, scientists, or accountants. Their view of salespeople was not particularly high. They often referred to someone in sales with phrases like, "He's 'only' a salesperson." Sales was not a highly regarded profession in my household. It has raised its status as a viable career only because of my overwhelming success at it.We can be exposed to sales call reluctance by other salespeople and even our sales manager. It's like the flu. We all catch it at one time or another. If an outbreak happens in a sales department, it can be disastrous. The sales for the whole company can be affected due to some salespeople being infected.Our personality or behavioral style can increase our ease of catching it causing sales droughts to take place. Through our extensive work in the last ten years, we have been able to connect a pattern between some behavioral styles and a high likelihood of sales call reluctance and even certain types of sales call reluctance. For example, we have discovered that high steady behavioral style salespeople have a higher probability of contracting the yielder type of sales call reluctance.Sales Call Reluctance can be identified when the act of prospecting and lead follow-up, in terms of numbers of contacts, is too low. We know it's too low when it doesn't support the goals of the salesperson. If you know your sales ratios of contacts to leads, leads to appointments, and appointments to sales, and you don't make the number of contacts daily, and you have clear goals, you probably have at least a temporary case of some version of sales call reluctance.If you can see marketing opportunities for what you are selling - whether you are selling a product or service - and don't seize the opportunities, it is probable that sales call reluctance is inflaming your decision to not act. Why won't you take advantage of what might be the "perfect storm" to create sales? Logically, most people with sales call reluctance will agree that they need to take action. The problem is if they are experiencing sales call reluctance, few of them do take action.

Mortgage Rates Trending Higher

Provided By: Realty Times

In Freddie Mac's results of its Primary Mortgage Market Survey®, mortgage rates continuing to trend higher amid a growing economy led in part by the recovering housing market. This marks the first week the 30-year fixed-rate mortgage has averaged above 3.5 percent since September 13th of last year. The all-time record low for the 30-year fixed was set the week of November 21, 2012, when it averaged 3.31 percent.

30-year fixed-rate mortgage (FRM) averaged 3.53 percent with an average 0.7 point for the week ending January 31, 2013, up from last week when it averaged 3.42 percent. Last year at this time, the 30-year FRM averaged 3.87 percent.

15-year FRM this week averaged 2.81 percent with an average 0.7 point, up from last week when it averaged 2.71 percent. A year ago at this time, the 15-year FRM averaged 3.14 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.70 percent this week with an average 0.6 point, up from last week when it averaged 2.67 percent. A year ago, the 5-year ARM averaged 2.80 percent.

1-year Treasury-indexed ARM averaged 2.59 percent this week with an average 0.5 point, up from last week when it averaged 2.57 percent. At this time last year, the 1-year ARM averaged 2.76 percent. According to Frank Nothaft, vice president and chief economist, Freddie Mac:"Mortgage rates continued to trend upwards this week amid a growing economy led in part by the recovering housing market. For instance, new home sales totaled 367,000 in 2012, the most in three years and reflected the first annual increase in seven years. Pending home sales in 2012 averaged its highest reading since 2006. And the S&P/Case-Shiller® 20-city composite house price index rose 5.5 percent over the 12-months ending in November 2012, the largest annual growth since August 2006. All of these factors helped residential fixed investment to add nearly 0.4 percentage points to real GDP growth in the fourth quarter alone."

 

Impacts Of The Improving Housing Market

Provided By: Realty Times

A lot of people are clamoring about the improving housing market. Many wonder if we have really turned the corner and how much better it will get. Also, what impact will it make?

Chief economist, Anthony Chan, for private wealth management at J.P. Morgan in New York, as reported by Business Observer, said, "Things are getting better because housing is getting better." The rising housing prices ignite a sense of confidence in the economy and lead to greater spending. What this means is that there is great opportunity for sellers.

The rising housing prices ignite a sense of confidence in the economy and lead to greater spending. What this means is that there is great opportunity for sellers.

One group in particular is the "boomerang buyers". That's the term being used for those homeowners who lost their home to a short sale or foreclosure in the recent past and now are shopping for another home to buy. However, the guidelines for these buyers are strict. It's likely they have to have at least 20 percent deposit and wait at least two years after the foreclosure before they can buy again. It's unlikely that high-risk loans will be available to this group.

Sellers are noting the improving housing market and anticipating an even better year. Part of that is not only due to rising home prices but also less inventory. In December, 1.82 million homes were listed for sale according to the National Association of Realtors, down 22 percent from a year ago. The supply hasn't been this low since 2005. This may seem like all good news, at least for sellers, but if home prices rise due to a shortage of inventory and incomes don't keep pace, there's trouble and a potential bubble. Ideal housing market circumstances are when housing prices rise due to increasing income and employment.  "The supply limitation appears to be the main factor holding back contract signings in the past month," the NAR's chief economist, Lawrence Yun, said in a news release. "Buyer interest remains solid, as evidenced by a separate Realtor survey, which shows that buyer foot traffic is easily outpacing seller traffic." The shortage of homes doesn't necessarily apply to all homes. The lack of inventory is significant in the group of homes, mainly in the west, that cost less than $100,000."We expect a seasonal rise of inventory in the spring to help, but a seller's market may be developing. Much of the West is already a seller's market for homes priced under a million dollars, but conditions are much more balanced in the Northeast," said Yun. Despite the current lack of supply, Yun points out that contract activity has continued to increase for 20 consecutive months on a year-over-year basis. Yun expects to see existing home prices increase another 9 percent as they did in 2012.

Preparing To Buy A Home

Provided By:Realty Times

Preparing to buy a home is a bit like preparing to go on a very long journey. You have to have your finances in order, know where you're going, what you're hoping to accomplish and how much time and how much money you can afford to spend.

Financial matters. When it comes to owning real estate nothing is more important, for obvious reasons. As we've seen, if you get locked into a mortgage you can't afford, the result can be devastating. But even if you can afford the mortgage, you might not want to be "house rich and cash poor". You have to consider other things that are important to you such as travel and your spending habits. If for instance, you like to travel for months at a time, it might be wise to consider a smaller house with a less expensive mortgage instead of a large home with a big mortgage, which could cause you more work and less financial ability to spend on other things you like.Another consideration is the length of time you want to have the mortgage. Many young people choose a 30-year fixed mortgage but if you're a senior citizen you might want to opt for a 15-year loan. The best thing you can do is make a list of your financial matters and the questions you have about buying a home and then consult with a highly experienced loan officer. A knowledgeable loan officer can be like having a tour guide with you all the time in a foreign country where you don't speak the language. The jargon used in the mortgage industry documents can be confusing. Having someone who can clearly explain the documents, what to expect, the time frame, and the process is priceless. Debt-to-income. The ratio of your debt-to-income is vital when purchasing a home. These guidelines have become more strict since the housing crisis so it's critical to consult with experts about your personal financial situation. Generally speaking, you should have a debt-to-income ratio of no more that 36 percent–meaning all you owe (including your mortgage, taxes, and insurance) should not equal more than 36 percent of your income. Remember there are still monthly expenses of your home on top of your debt. And, of course, the less you owe and the more you make, the better position you're in for buying a home and creating your own financial freedom. These days, along with keeping your expenses and debt manageable, a key factor to buying a home is having a healthy downpayment. Most lenders would consider 20 percent a good downpayment. The more you bring in, the less you have to borrow. Remember the collapse of the housing market was brought on by small or no downpayment loans and many buyers who simply didn't understand the risks. Know how long you'll stay. This is really important because the cost of buying and selling a home is expensive and very time-consuming. If you're not planning on staying in your home more than seven to ten years, think about renting. You may still decide to buy, but you need to understand the cost of purchasing and maintaining a home. Investigate the economic difference between buying and renting. Be realistic about how frequently you've moved in the past and whether you're now ready to settle in for several years. You can always rent your home out but this assumes that you'll be a landlord (willing to take on all those duties) and then also have to find another place to live and either rent or buy. After considering all of these factors and making certain that you're ready to buy, then take the next step and find the best agent in your real estate market. Your agent will help you further prepare to buy the home of your dreams.

For any questions and or assistance in purchasing your new home please contact us at Keller Williams of Rockwall at 972-772-7000. Or email Frontdesk552@KW.com