“If you don’t own a home buy one,”

Robert Lenzer, writes about;

John Paulson, Sept. 27th, 2010;

It could be time to sell your low-yielding bonds and replace them with higher-yielding common stocks.

Multibillionaire hedge fund operator John Paulson, the investment genius who made a killing going short subprime mortgages a few years ago, told a standing room only crowd at New York’s University Club that double-digit inflation is about to rear its ugly head by 2012, killing the bond market, and restoring strength to equities and gold. More...

Vote on homebuyer tax credit could come soon...

Dueling proposals will be debated in Senate over $8,000 per buyer subsidy
Associated Press
updated 3:33 p.m. PT, Mon., Oct . 26, 2009

WASHINGTON - Top Democrats in the Senate are pressing a plan that would extend a popular tax credit for first-time homebuyers but gradually phase it out over the course of next year.
The proposal, by Majority Leader Harry Reid, D-Nev., and Senate Finance Committee Chairman Max Baucus, D-Mont., would extend the $8,000 tax credit — which expires Nov. 30 — through March 31. Its value would drop by $2,000 for each of the subsequent three quarters of 2010.
The plan, which could face a vote in the Senate this week, appears aimed at countering a far more generous $17 billion bipartisan plan that would extend the $8,000 credit through June 30, 2010, boost the income cap for eligibility and open the credit to all buyers, rather than first-timers. For more...http://www.msnbc.msn.com/id/33484381/ns/business-real_estate/

Bernanke: Recession is Over, but Tough Times Will Linger

RISMEDIA, September 16, 2009—(MCT)—The deep recession that's gripped the U.S. economy by the throat since December 2007 is "very likely over at this point," Federal Reserve Chairman Ben Bernanke recently said. However, Bernanke painted a picture of an underperforming economy well into next year as he fielded questions after a speech at the Brookings Institution, a center-left research center in the nation's capital. Continued ...http://rismedia.com/2009-09-15/bernanke-recession-is-over-but-tough-times-will-linger/

New Guidelines Needed for Appraising Distressed Properties

RISMEDIA, June 25, 2009-Using foreclosed and distressed sales as comparables with appraisals on single-family homes without adequately reflecting the differences in the condition of the respective properties is needlessly driving down home values, according to the National Association of Home Builders (NAHB).
“Any home buyer can recognize the difference between a well-kept home and a distressed property that is damaged or not properly maintained. So it only makes sense that an appraiser should be required to consider the overall condition of a property and the specific factors related to a foreclosure or distressed property sale when selecting and adjusting the value of comparables,” said NAHB President Joe Robson, a home builder from Tulsa, Okla.
According to the NAHB, appraisers are often only required to conduct exterior inspections of properties that are being used as comparables because they are normally unable to enter these homes and examine their interiors. Too often, properties that have been subject to foreclosure or distressed sales have issues related to deferred maintenance or internal damage that an external inspection simply cannot reveal.
“While most appraisers do a fine job, there needs to be proper regulatory guidelines for those who use distressed or foreclosed properties as comparables when determining home values,” said Robson. “It is essential that appraisers have the proper experience and guidance to accurately assess values in distressed markets.”
In neighborhoods where comps include a large number of short sales or foreclosures, appraisers should have the option of expanding the geographic area or extending the time frame for eligible sales to get a more representative basket of the value of homes sold in the area, Robson added.
Currently, improper or insufficient adjustments to the comparable values of foreclosed and/or distressed homes often results in the undervaluation of new sales transactions.
“This practice must be corrected because it contributes to the continuing downward spiral in home prices, forestalling the economic recovery,” said Robson.
For more information, visit www.nahb.org.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
More real estate headlines on RISMedia.com:

We’re All in This Together - What’s Good for Homeowners Is Good for America

Commentary by Ralph R. Roberts
RISMEDIA, January 26, 2009-Over the past year or so, the American homeowner has taken it on the chin-a one-two-three punch that has knocked many out of their homes and threatens to do the same to millions more. First, the housing bubble burst, stripping billions in equity. Tight credit landed the next blow, preventing homeowners from refinancing their way out of trouble. Finally, a severe economic downturn has led to record job losses, making it difficult or impossible for many families to keep their homes even if they otherwise would be able to negotiate a loan modification with their lender....for more http://rismedia.com/wp/2009-01-25/were-all-in-this-together-whats-good-for-homeowners-is-good-for-america/

What's Happening with Mortgage rates?

Mortgage rates have been on the rise. I’m now looking at about 6.25% - 6.50% (note rate) for a highly qualified buyer’s, but why?
The question is simple enough: What's going on with mortgage rates?
What makes them rise, or fall? Is it the Fed? The economy? Inflation? The banks? The President? Fannie Mae or Freddie Mac? Is it a secret ?
The answer is that rates are moved by a number of related factors, and believe it or not, you -- Joe or Jane Consumer -- are one of those factors.
Mortgage money can come from many sources, including deposits at banks and brokerages, but most comes from investors through what is collectively known the "capital markets." This is where investors interested in purchasing certain kinds of debt instruments -- bonds, in this case -- come to buy these items.
In order to attract investors, sellers of bonds must compete with one another to get their money. They do this by offering a variety of “instruments" (also called "product") with differing structures of risk and return over given periods of time. These offerings compete with other investments which are reasonably similar in performance, such as US Treasuries, corporate bonds, foreign bonds, etc.
Who are these investors, and why are they so fickle? Mostly, they're people like us, and we want two opposing things: low payments on our debt, especially our mortgage, and high returns on our investments. You (or your investment advisors or fund managers) will only buy so many low- yielding bond investments (mortgage or otherwise), because we would take our money elsewhere if the returns are too low.
Investor demand for a given kind of investment plays a considerable role in moving market yields, because investors have literally hundreds of places to put their money. It's a crowded marketplace, with many sellers of various products competing for those investor dollars. Investor demand for specific product rises and falls with changes in investment strategies; if demand falls enough, a change needs to be made to attract investors again. How to attract them again? Usually it’s by raising the interest rates, thereby raising the return on investment.
Of course, it's not as easy or simple as that. Mortgage market makers serve not one client, but two: investors, who want the highest possible return on their investments, and the homeowner or homebuyer, who wants the lowest possible interest rate. Simultaneously, rates need to be high enough to attract investors but low enough to attract borrowers. It's quite a complex dance; investors, though, make the music.
As interest rates (yields) decline, investment customers can become more or less interested, depending upon the direction of economic growth, inflation, appetite for the given product, and several other factors. Typically, though, the lower those rates get, the fewer investors are interested in putting them on their books … so again we are facing higher rates to compete with higher investment return.
Bottom line: I think we will see another Fed rate cut. If and when this happens, my personal opinion is that the window of opportunity to cash in on a great rate will be narrow. The Wall Street investor’s will want risk reduction and more return on their investment pool of funds. The prospective currently is that the market has not corrected itself …at least not yet.

Let me know if I can help you.

Gail Roberts / Columbia Mortgage
360- 816-9207 office
360-903-8423 cell

Fed Move May Not Change Mortgage Rates

by Chris Kissell Thursday, January 31, 2008
When the Federal Reserve meets and changes rates, we all have questions: What does it mean to me? Will my mortgage rate go up or down? Is this a good time to refinance? Bankrate is here to help. We've looked at five categories -- mortgages, home equity loans, auto loans, credit cards and certificates of deposit -- to determine if the Fed's moves made you a winner or a loser. Here's a look at mortgages: Click on bottom link for the rest of the story.
More From Bankrate.com: • Mortgage Rates Skyrocket • Smart Strategies After the Fed Cut • Refinancing Exotic Mortgages
Mortgages
http://finance.yahoo.com/personal-finance/article/104327/Fed-Move-May-Not-Change-Mortgage-Rates;_ylt=AnTzkRGjbS75Cg_kqs9u96G7YWsA