Outer Banks Real Estate

Mortgage Market in Review

Market Comment Mortgage bond prices fell last week pushing interest rates higher. Durable goods orders and new home sales both surged significantly higher than expected. However, some of the weakness seen earlier in the week was erased following hope instilled by Fed Chairman Bernanke’s remarks indicating there may be a Fed rate "pause." For the week, interest rates on government and conventional loans rose about 1/4 to 3/8 of a discount point. The employment report Friday will be the most important event this week. Personal income, outlays, ISM Index, factory orders, and the preliminary productivity data will also be important. LOOKING AHEAD Economic Indicator Release Date & Time Consensus Estimate Analysis Personal Income and Outlays Monday, May 1, 8:30 am, et Income up 0.4%, Outlays up 0.4% Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates. Construction Spending Monday, May 1, 10:00 am, et Up 0.3% Low importance. An indication of economic strength. Significant weakness may lead to lower rates. ISM Index Monday, May 1, 10:00 am, et 55.1 Important. A measure of manufacturer sentiment. A large decline may lead to lower mortgage rates. Factory Orders Wednesday, May 3, 10:00 am, et Up 1.5% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates. Preliminary Q1 Productivity Thursday, May 4, 8:30 am, et Up 3.0% Important. A measure of output per hour. Weakness may lead to lower mortgage rates. Employment Friday, May 5, 8:30 am, et Unemp. @ 4.7%, Payrolls +198k Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates. Consumer Credit Friday, May 5, 3:00 pm, et Up $4.5 billion Low importance. A significantly larger than expected increase may lead to lower mortgage interest rates. Productivity Productivity is the rate at which goods or services are produced. It is most commonly defined in terms of labor, which is the contribution of people to the process. Labor costs represent about two thirds of the value of the output produced. The Bureau of Labor Statistics of the US Department of Labor releases the most widely cited productivity statistics quarterly and annually. Productivity is significant in that as it increases, businesses can produce more with the same or less input. This wealth building effect is vital to the US economy. As productivity increases, the US economy generally performs better. As productivity decreases, the economy generally suffers. While the bond market generally favors signs of weakness in the economy, bonds tolerate growth as long as the economic environment shows little or no inflationary pressures. Unfortunately, the future of inflation is uncertain. Much of the recent data has been stronger than expected and high energy prices also weigh heavily upon the financial markets. Now is a great time to avoid the uncertainty surrounding continued market volatility by locking your loan. Capitalizing on current levels is wise to protect against future volatility. To unsubscribe, please hit "reply" and include unsubscribe in the subject line. Copyright 2006. All Rights Reserved. Mortgage Market Information Services, Inc. www.ratelink.com The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

     MORTGAGE MARKET IN REVIEW Newsletter-May 1st, 2006    

Manufactured vs. Modular

I found an article that explains the difference in modular and manufactured homes.  It is getting tougher every year to get financing on manufactured homes, but modular homes are typically easy to finance.

Mortgage Market In Review

Market Comment Mortgage bond prices remained nearly unchanged last week following several key inflation reports. Rates fell Tuesday following the Producer Price Index (PPI) release that showed low core inflation at the producer level. However, those gains were erased following the release of Consumer Price Index (CPI) data Wednesday. CPI’s core value was higher than expected. For the week, interest rates on government and conventional loans remained unchanged. Employment cost index and gross domestic product data to be released Friday will be the most important events this week. Consumer confidence, durable goods orders, new home sales, the Treasury auctions, and the Fed "Beige Book" release will also be important. LOOKING AHEAD Economic Indicator Release Date & Time Consensus Estimate Analysis Consumer Confidence Tuesday, April 25, 10:00 am, et 106.0 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates. Existing Home Sales Tuesday, April 25, 10:00 am, et Down 3.0% Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates. Durable Goods Orders Wednesday, April 26, 8:30 am, et Up 1.6% Important. An indication of the demand for "big ticket" items. Weakness may lead to lower rates. New Home Sales Wednesday, April 26, 10:00 am, et Up 1.9% Important. An indication of economic strength and credit demand. Weakness may lead to lower rates. 2-year Treasury Note Auction Wednesday, April 26, 1:30 pm, et None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates. Fed "Beige Book" Wednesday, April 26, 2:00 pm, et None Important. This Fed report details current economic conditions across the US. Signs of weakness may lead to lower rates. 5-year Treasury Note Auction Thursday, April 27, 1:30 pm, et None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates. Q1 Employment Cost Index Friday, April 28, 8:30 am, et Up 0.9% Very important. A measure of wage inflation in the first quarter. Weakness may lead to lower rates. Advance Q1 GDP Friday, April 28, 8:30 am, et Up 5.0% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates. Volatility Likely The likeliness of mortgage interest rate volatility this week is very high considering the abundance of important economic releases. Each piece of data has the ability to cause volatility in the financial markets. Floating ahead of the data exposes a person to a tremendous amount of risk. It is possible for interest rates to improve if the data shows a weakening economy with few price pressures. However, any indications of strength in the economy will likely be bad for mortgage interest rates. Mortgage interest rates have risen this year and the overwhelming view remains that rates will continue to head higher. It is a great time to take advantage of mortgage interest rates at the current historically favorable levels. To unsubscribe, please hit "reply" and include unsubscribe in the subject line. Copyright 2006. All Rights Reserved. Mortgage Market Information Services, Inc. www.ratelink.com The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

     MORTGAGE MARKET IN REVIEW Newsletter-April 24th, 2006    

Existing Home Sales come in higher than expected

Sales of existing homes came in much higher than expected today.  You can read the details in this Bloomberg article.  Estimates were that existing homes sales were to be around 6.66 million - actual numbers were 6.92 million.  Consumer confidence was also up higher than expected.

Currituck County vote on a unified government

Currituck County is about to vote for or against a Unified Government.  The Virginian-Pilot posted an article with the details.  Currituck County generates 60% of it's county's tax base comes from the Outer Banks real estate and tourism business. 

Hurricane forecasts 2006

30A Real Estate Vibe posted a link to Hurricane Alley which released their forecasts for the 2006 season.  It shows North Carolina has a > 40% chance of being hit with a Category 1 or 2 storm this season.  No Category 3-5 expected to make landfall in the U.S. 

Outer Banks Real Estate and local Blogs

Blogging is gaining popularity across the country.  I have been writing the Outer Banks Real Estate Blog for over two years.  Some of the early adopters are seeing some benefits from publishing a blog - not to mention spreading the word about the Outer Banks Real Estate Market conditions. 

Here is a list of a few local Blogs on the Outer Banks:

Outer Banks Real Estate Connection - Local Realtor Matt Huband drinks the kool-aid.  He is the best on the beach about publishing consistently about the Real Estate Market.

Outer Banks Real Estate News  - Local Realtor Jim Lewis publishes about Outer Banks Real Estate market conditions and statistics.

Outer Banks Realtor - Local Realtor Laura Davis is new to the blogging scene but she understands the benefits.

Elaine Brooks - Local Realtor Elaine Brooks uses her blog to post new listings in the area and current Outer Banks Real Estate Market Conditions.

Beach Girl Point of View Colington Island has a blogger!  Sandy Ball talks about the local art scene.

A View From the Ridge - former Mayor Bob Muller from Nags Head writes about local and regional government policies.

Outer Banks Onstage - Peter Hummers of the Outer Banks Sentinel covers entertainment events on the Outer Banks.

The Outer Banks Blog Douglas Haber writes and takes awesome pictures of the Outer Banks. 

I know there are many more Outer Banks Blogs - if I missed yours, please send me a note and I will add it to the list.

Nags Head 5K run

The 23rd annual Nags Head Woods 5K foot race is scheduled for May 13, 2006.  It is a good time and they have a great beach party afterwards at the Ramada Plaza Beachfront Hotel.  For Registration information, you can visit the Kiwanis Club of the Outer Banks or contact cparker@gatewaybankandtrust.com

Using a 1031 to purchase your beach vacation home

Many buyers purchase their vacation home on the Outer Banks using a 1031 Exchange.  There are a few attorneys on the Outer Banks that specialize in this form of purchase - it is more expensive but the capital gains tax savings can be huge.

Southern Shores Town Manager has resigned

Southern Shores announced today that the town manager has resigned.

The Southern Shores Town Council today received and accepted the resignation of  Town Manager Carl Classen.  Mr. Classen was appointed Town Manager in August 2003. The Southern Shores Town Council will begin an immediate search for an interim Town Manager.

If you are interested in signing up for the weekly newsletter to keep up with what is going on in Southern Shores, send an email to info@southernshores-nc.gov and type "join" in the subject line.