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Will the hot real estate market result in mortgage interest rates going up

Nov 24

Posted by admin in Real Estate

Here is an article that the Bank of Canada raising interest rates to slow the real estate market down. While we have seen prices go up in the Vancouver real estate market I have noticed in the areas that I track that the number of listings each day has increased in the past month. If the inventory of homes were to grow it is likely that the real estate market will get back to a more balanced position which should see prices stabalize.

At this time it does not appear that we will see mortgage interest rates in going up in the short term.

TORONTO (Reuters) – Excessive real estate strength in Canada from ultralow mortgage rates could push the Bank of Canada to raise interest rates sooner or more aggressively than forecast, according to a TD Economics report on Tuesday. The possibility is worth watching closely, the economics arm of Toronto-Dominion Bank argued, although it also said the most likely scenario is that the real estate market will moderate and inflation will remain in check. The Bank of Canada has pledged to keep its interest rates unchanged at 0.25 percent until mid-2010, unless it sees a threat of inflation spinning out of control. TD pointed to recent statements by the central bank that hinted that it would seek to lean against signs of emerging asset bubbles and that it is also monitoring developments in home prices. In a recent speech, Bank of Canada Governor Mark Carney deemed the strength in existing home sales as “temporary”, reflecting “pent-up demand” and improved affordability.

“The (Bank of Canada’s) view at the moment is that the recent resurgence in real estate is temporary, but if it does not moderate in the coming year — or worse still if price growth accelerates — it could lead to an earlier and more substantial tightening in policy than currently anticipated,” TD economists Craig Alexander and Grant Bishop said in the report on Tuesday. The economists stressed that the central bank targets the rate of consumer price growth and does not target asset values. “The key issue is whether the low interest rate environment is creating an economic imbalance that requires a rebalancing of monetary policy,” the TD economists said. Canadian real estate markets have staged a stunning turnaround this year from the end of 2008 when sales and prices retreated sharply. The latest Canadian Real Estate Association data showed August home sales were up 18.5 percent from a year ago, while prices rose 11.3 percent nationally from a year earlier to an average C$324,779 ($306,395). TD expects sales will cool in the coming months and for price growth to return to a mid-single digit pace after months of pent-up demand and tighter mortgage pricing. “The base-case economic forecast does not anticipate that hot real estate markets will force the Bank of Canada’s hand, but it is a risk worth closely monitoring,” the TD economists said. TD expects the Bank of Canada will begin to gradually lift the benchmark overnight interest rate in the fourth quarter of 2010.

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Zillow Says Current Mortgage Rates Decline

Nov 24

Posted by admin in Real Estate

Today Zillow released its survey results about the current mortgage rates, which are based on the polls that were conducted last week. According to it, today’s mortgage rates for the 30-year fixed mortgages are lower and the low interest rates continue to inspire home buyers.

Last week the average mortgage rates decline from 5.19 percent to 5.17 percent. This numbers regard to the 30 years fixed mortgages. However, today’s mortgage rates are even lower. Zillow shows that on today (Monday, September 1) rates for 30-year fixed purchase mortgages decreased further, with the average interest rate on Zillow Mortgage Marketplace at 5.04 percent.

Current mortgage rates on Lending Tree seem to be lower. Today on it’s website we can see that LendingTree Network interest rates for the 30-year fixed is 5.00%. The 15-year fixed is 4.38%. The 5/1 ARM rate is 4.13% currently.

In the case of Zillow, the rate declines varied by state. The lowest decline of the current mortgage rates is registered in Florida and Maryland. For example, in Florida the 30-year fixed rate declined last week from 5.33 to 5.24 percent. In New York last year the rates fell from 5.31 to 5.28.

On the West coast the movement in the current mortgage rates is not big. For example, in Arizona last week the 30-years fixed rates fell from 5.23 to 5.22 percent. In Colorado they are down from 5.15 to 5.14 percent. In California the rates last week were 5.12 percent, which were down from the previous week’s 5.16 percent.

We can conclude that the low mortgage rates are back for a little while in today’s housing market. This is a good chance for the home buyers to refinance or take advantage by filling an application for a new house. However, I am wondering will the current rates go up when the Mortgage Bankers Association reports increase in applications and that in turn drives up the demand?

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Gold? This Gorgeous Yellow Metal Never Seems To Lose Out On Investors

Nov 5

Posted by admin in Investing, Real Estate

Gold investments always seem to be on the high regardless of the economic condition. Of course, the recent recession did have a slight adverse impact on the investment rates in the last few months but now, again there seems to be an increase in the rates of gold investment again. If you ask SPDR gold trust, according to Herald Tribune, you?ll find that this trust has seen an inflow of $9.5 billion in investments from the beginning of this year to the month of September. The plummeting economy might have seen the investments a bit low in the present but on the whole its investment is on the rise.

According to a Gold News report, Natalie Dempster, head North American investment, ?A recovering global economy coupled with most major central banks keeping benchmark rates at record low levels increased demand for gold as a store of value, as some investors feared about future inflation. Moreover, we saw an improvement in risk appetite during the quarter, which also put more downward pressure on the dollar as investors sold US Treasuries in favor of higher-yielding assets overseas, further increasing demand for gold as a dollar hedge.?

The reasons for the increase in gold investment seem to be many:gold investments

- With the increase in inflation due to the economy still being in the early stages of recovery, you can expect more and more people to go for gold investments as they have a lot of intrinsic value.
- The depreciation in dollar value has diverted people?s attention from the currency to investment in gold which has a steady value.
- The fall in interest rates in investment businesses owing to the weakened economy seem to be another good reason for increased investments in the yellow precious metal.
- Speculation is the next major reason you?d want to go for a gold investment.
- Hedge fund investors are the ones who are interested in gold investments.
- Investor psychology also has been playing a very important role in gold investments. Since ages people have been finding peace in investing in the metal, as they view it as a major commodity of security. I know of so many people who?ve used gold to meet their monetary requirements at the time gold investment opportunitiesof an economic crisis.
- Gold is bought in Asian countries like India and China for gifting purpose and this is the reason many people buy gold.
- Gold is the least volatile investment option

According to Gerald Mc.Connell, CEO Etruscan Resources, the prices of gold are predicted to rise in future. He says, ?A prediction of $2,000 per ounce within the next ten years does not sound far-fetched. Some experts are predicting more significant increases.?

Talking about investments in precious stones and metals, diamond has been considered as a beneficial investment option by many, but seems to have a lot of drawbacks. You can go through them at Prime Targeting . In comparison gold is always a better investment option as it does not have the drawbacks that the diamond business has.

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Be Careful When Choosing A Credit Counselor

Nov 4

Posted by admin in Credit

When you find yourself in a bad credit situation it is easy to find hope in credit counseling agencies. You feel safe when someone says that they are a ?non-profit organization.?But often, those that are offering help are only helping themselves.
debt, debt counselor
When you find yourself in a bad credit situation it is easy to find hope in credit counseling agencies. You feel safe when someone says that they are a ?non-profit organization.?But often, those that are offering help are only helping themselves.

Federal and state regulators are warning consumers that some credit counseling agencies are not what they seem. They may actually be using a non-profit status to avoid consumer protection laws. This gives them the ability to advantage of you, the trusting consumer.

What makes the agency non-profit? All they have to do is provide free education and counseling services. But many agencies are using these as a way to hustle clients into debt-management plans, which pay off big time.

With most debt-management plans, the client pays the agency a certain amount of money each month. The agency then pays the client?s bills. The agency negotiates lower interest rates and the waiving of fees with the client?s credit cards and loan companies. The credit card companies will usually give the agency a kickback, a percentage of the amount repaid.

Many experts say that clients are often pressured into the plans, even if they don?t need them. Some agencies don?t pay the bills on time, and you are the one who suffers.

Even the IRS has stiffened its review of agencies seeking non-profit status.

There are legitimate credit counseling agencies out there that can help you with your financial problems. You just have to shop around and do your homework when choosing an agency.

Talk and visit several agencies before selecting one. Don?t let the non-profit label fool you into thinking that a certain agency is better than the others. Non-profit status doesn?t differentiate the good from the bad, you must do that yourself.

Watch out for agencies that want ?voluntary?contributions and high monthly service charges. If you are having financial problems, chances are that you can?t afford to pay high fees. Before you sign up for a debt management plan, request a written statement of all agency fees.

If an agency says that they can get you out of debt quickly or slash all of your interest rates, don?t believe it. First, getting out of debt takes time. You are simply looking for a plan that will get you there a little faster ?but it still takes time.

Secondly, interest rates are determined by your credit card companies, not the agency. Many creditors won?t lower your rates. Some will. The agency has no idea of knowing what the future holds.

Check with your creditors to make sure that they are willing to work with the agency you choose. Once you have started a payment plan, make sure that your creditors are receiving their payments on time. If they don?t, it?s your problem.

Ask around for a reputable agency. Check with the Better Business Bureau and your state?s attorney generals office to see if there are any complaints on file. Ask the agency if they are a member of the Association of Independent Credit Counseling Agencies or the National Foundation for Credit Counseling ?two well-known groups that have standards and fee limitations.

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Watch For The Price Points

Oct 6

Posted by admin in Finance, Investing, Real Estate

Have you ever noticed how many prices aren\’t round figures?

Many shops use the tactic of ?9995, rather than ?10,000, as it sounds a lot less, even thought it\’s only a fiver less.

The daft thing is that people are taken in by this and once they\’ve heard the first figure, they don\’t always take account of the rest of the number.

Marks

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Don\’t Fight The Market

Oct 5

Posted by admin in Real Estate

I was watching a film the other day and one of the comments that really hit home was \’Don\’t fight the market\’.

Some of you may know the film \’Rogue Trader\’, which was based on the story of a futures trader in Singapore. The main character, Nick Leeson, was trying to manipulate the market, to his own advantage. Initially, his plan worked, but as time went on, the market moved away from him.

Instead of realising this, he attempted to recoup his losses by doubling his stakes, in the hope that his profits would double and therefore repay his losses.

Unfortunately, the market continued to move against him and his losses mounted to the point where he lost over ?300 million, causing the failure of one of the oldest banks in the UK.

In short, he was trying to fight the market forces, rather than learning how to make money in a rising, falling or static market.

In a way, most property investors are gambling on the future prices of the housing market.

At the moment, there\’s a lot of talk about the UK housing market and people have spoken of falls over the next year.

This has scared a lot of people and many are waiting for the market to re-adjust before spending their hard earned cash, preferring to hold their assets in other forms, like shares or bank deposit accounts.

Like any market, house prices are governed by the simple laws of supply and demand.

If more people want to sell than there are buyers, then prices will tend to fall.

Conversely, if there are more buyers than sellers, prices will tend to rise.

However, people become so short sighted that they fail to see the bigger picture.

If the market continues to fall, or is said to be falling, property will be cheaper to purchase and demand for rental properties will increase. (people tend to delay purchase until the market has bottomed out)

For investors this is great news, as you can get substantial discounts if you\’re prepared to move quickly.

If the market continues to fall, the answer is to keep the property until the market recovers, you just need to make sure that the rent covers the mortgage.

If the market is static, there tend to be more properties for sale, as people are more likely to find willing buyers and also be able to find property to move to.

For investors, they know what they will need to pay to buy a house and what they will receive in rent.

Given that there will be more properties on the market, they can afford to be more choosy and either pick the best, or those with motivated sellers.

If the market is rising, the investor knows that the value of their purchase will rise.

The real issue is that in Western society, we seem to have a short span of attention.

We have become so used to having everything on demand that people become impatient after a very short space of time.

I\’m as impatient as the next man, probably more, but we have to realise that some things take time. We don\’t expect a baby to talk after a few months, yet we look at the UK property market and investments on a monthly basis.

Anyone who invests in property should do so with the medium to long term in mind. We\’ve all seen the TV programmes with people trying to make a profit in 3 months, when really we should be looking at a minimum of between 3 and 5 years.

So if you\’re looking at something that should grow over 5 years, whay are we so fixated on the value after 3,6,9 or 12 months?

If you take a snapshot of the property market, there will be periods when it falls, but they usually follow periods of high growth. Even now, the annual average for the Uk housing market is 16.8% growth, and that\’s with 3 months of decline. Source – Halifax

However the real question is whether you want to buy when everyone else is buying, or would you rather cherry pick the deals when no-one else is buying?

Whatever you do, don\’t tell the popular press what kind of deals are out there, as it will give the game away!

Peter Stanley is an experienced property investor, who spent over 15 years working in the Finance industry, before finally seeing the light and changing from a part time to a full time property investor.

He spends his time showing people just how simple it is to invest in property from coaching them through the process, to offering a full property sourcing service.

For more information on Peter and investing in property, see http://www.propertymadesimple.com

Writen By : Peter Stanley

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Applying For A Credit Card Online That Offers Benefits To Its Users

Aug 21

Posted by admin in Credit

Credit is a well established institution in our society today. You will need credit to be able to make major purchases such as a home or vehicle. Applying for a credit card online can be the first step in that process to help you establish or reestablish your credit. It is important to use this new found credit wisely in the beginning because if you do not there can be consequences later such as having a bad credit rating and low score.

The best part of applying online for credit is that you can get an instant approval within minutes and have your card shipped to your within a matter of days. This process includes filling out an application online with all your pertinent information such as your driver license and social security number along with your employment information. These things are needed to determine if you are creditworthy and to check your credit background.

Looking for a new card can take some time because you will need to compare interest rates among them as well as the terms and conditions and fee schedules. All this information is available and can be read online. Be sure to read all the information before you apply because you do not want any surprises later down the road such as an increase in interest or other fees your were unaware of. This can be costly so do read the information given.

Also, you want a secure website that protects your personal information. If the site is not secure leave it immediately. You should be able to check the security certificate of a website to see if it is current and lists available information to the public.

With a good credit rating you should be able to get the kind of cards with benefits you want. If your credit has a few bad marks you may want to consider credit repair to clean up your report and increase your score before you apply for prime rate cards.

Using credit responsibly by making all your payments on time and not defaulting on the cards does wonders for your credit score. With good credit you can get loans at prime rates that will eventually save you money and afford you the opportunity to buy the things you value in life.

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