Outer Banks Real Estate

Fed lowers prime again - good news for Outer Banks Real Estate

Here we go again.  The Federal Reserve cut the Fed Rate by 1/2% today and now stands at 3%.  Most major banks followed suit this evening and lowered their prime rate to match the Fed.  Prime rate is typically 3% above the Fed Rate and is what many Home Equity Lines of Credit are based on. 

Typically when the Fed lowers the rate - we see a jump in primary mortgage rates.  It didn't happen today but the still have a few days to go with some very important economic news on the horizon.  Jobs numbers are due on Friday and if they are not close to the target, we could see some rate fluctuations.  The stock market briefly surged on the news but ended up down today.  Based on the report - we might be in for some additional cuts to prime at the next Federal Reserve meeting in March or even sooner.

For those really having trouble sleeping - you can read the entire Fed Statement.  A couple of key excerpts and my two cents: 

The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

This is what could cut the party short - inflation.  If the rate of inflation starts to rise - so will the Prime Rate. 

Today's policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity. However, downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.

They hope to reduce or eliminate the potential recession.  Good news - they will act in a timely manner as needed.  This is the verbiage that leads you to believe additional cuts will be made quickly if needed. 

The tough part about the market today is that things are changing so quickly.  My goal has always been to be a trusted adviser to my clients.  Provide the customer with solid and credible information and everyone wins.   

And I should probably stop trying to guess this crazy market.  Last week I had a gut feeling that the Feds would not move today - I think it was just the Taco Salad I had for lunch. 

The good news is the Outer Banks Real Estate Market has had some increased activity lately.  Many Realtors I speak with have noted increased interest and showings of homes.  Not sure if the record low rates are causing it or that people are now thinking about their summer vacation and the desire to buy a home at early 2004 prices.  If I can be of any assistance, please feel free to contact me. 

60 Minutes program - House of Cards

Steve Croft from 60 minutes reported last night on how the U.S. sub-prime meltdown is affecting worldwide markets.  It is well worth the 15 minutes.

Update - Here is a link to the CBS website with the video.

Custom search capabilities for your site(s)

I met some friends for coffee earlier in the week and we were discussing the advantages and disadvantages of using a blog for your website.  Since a blog is typically in chronological order, it is sometimes tough to find exactly what you are looking for.  Categories is one way to narrow the search but it doesn't get you exactly what you are looking for - especially if you are a prolific writer.  I use a category cloud so it is easy to see what I write about most frequently - my top three are Current Affairs, Mortgage and Outer Banks Real Estate.  Plus I really like the sound of "Category Cloud". 

I looked at some available widgets to see if there was a search engine widget to add to this site.  There were some available that I thought would do the job but decided to look at the daddy search engine to see if they had something customizable that could be put in the sidebar.  Google Custom Search has a great solution.  The software allows you to set up custom searches for just one site or multiple sites.  It was easy to configure and works great.  If you author multiple sites, you can include all of them in the search results.  Then I started to think about creating a community search engine.  What if I created a search engine to search local Bloggers - or local Realtors - or even local Mortgage Lenders.  I assume this would be acceptable if you got permission from each owner - but what if you didn't ask and just added their site to the search list?  Since the web is open - I think it would be acceptable. 

What a crazy week we had in the Mortgage Industry

I don't even know where to start.

The week started with rates continuing to edge lower.  Mortgage bonds were at two year highs and holding - mortgage bonds go up and rates go down.  Monday was Martin Luther King's Birthday so the US markets were closed.  Overseas markets were open and having a tough time.  Tuesday morning - the fed reduced the prime rate by 3/4% ahead of their scheduled meeting on January 29th.  Then the phones started to ring. 

Typically when the feds lower their rate, mortgage rates go up for a short period of time.  I can tell you that these are not normal times.  Rates continued to drop.  Wednesday and Thursday were tough days for the mortgage industry.  Much of the gains we had in the last three weeks were lost in 48 hours.  We had three unscheduled price worsening notices which is not a good thing.  Friday saw slight improvements - almost wiping out Thursdays losses. 

Then the news came of a one year increase in the conforming loan limits.  Right now the limits are $417,000 for a conforming loan.  Anything over $417,000 will cost you on average an additional 1% in rate.  The estimated numbers were all over the place - $650,000, $725,000 and 125% of the median home price.  Now it looks like they are leaning towards 125% of the median price but not sure if they will look at a county or region.   Regional calculations could hurt the Outer Banks but if they decided to base it by county - it would give some great alternatives for those looking to reduce their interest rate or convert their adjustable rate to a low fixed rate.

Many expect the feds to reduce the rate again on January 29th.  Some are still hoping for another 1/2% reduction.  My gut feeling is that we won't have another reduction in January but they will lower the rate in March.  These reductions primarily affect home equity lines of credit, car loans and some construction loans.   If you have any questions or would like to see if the recent improvements can  save you money, please feel free to contact me at your convenience. 

Snow on the Outer Banks?

No snow yet but they are predicting some accumulation tonight.  I heard an show on NPR Weekend America and the picture was taken from the snowflake guy.  He is a professor from Caltech - not the snowflake capital but it gives him an excuse to travel. 

The forecast calls for 1 to 2 inches of ice and or snow on the Outer Banks.  We will see what happens if anything. 

Two New OBX Blogs

Funny how this stuff works.  You have people you see on a regular basis and then something clicks.  I was searching for local bloggers and found Rick Lawrenson's blog.  Rick serves on the Board for the Outer Banks YMCA - I see him at the meetings every month and had no idea he was online.  Rick is the pastor of the Nags Head Church next to Jockey's Ridge. 

Long story short - his son is also into the technology and has a huge following.  Rick's daughter in law has Cystic Fibrosis and she has just gone through a double lung transplant just had a baby girl and is now hoping to get on the transplant list.  Our thoughts and prayers go out to their family. 

If you are not currently enrolled in an organ donation program, read Nate's blog.  After you finish - you will want to go to this site to sign up.  You could make a huge difference in someone's life. 

Top ten free technology tools for Realtors - Realtor 2.0

The technology committee for the Outer Banks Association of Realtors had an idea to put together some of our favorite free technology tools that could benefit Realtors.  I thought I would share my personal suggestions with my readers (Not just for Realtors).

Gmail - hands down - the best web based email.  With over 6.5 gigabytes of storage (and growing), you should never have to delete a message.  Search capabilities are unbeatable. 

Blog Platforms - many to choose from but Blogger and ActiveRain (send me an email if you would like an invite) are probably the two most prominent free platforms for Realtors.  MySpace and Facebook are alternatives but they don't seem to be as business friendly.  Typepad (costs $5 to $12 per month but well worth it) is the equivalent of Blogger on steroids.

Google Alerts - Keeps you updated on what is going on in your area.  (It is great for keeping up with your competition).

Photo Editing - Picasa from Google is awesome.  Turn those awful photos into works of art.

Google Documents - Don't have the funds to buy Office 2007 - Google Documents allows you to create documents (Word) and spreadsheets (Excel) that can be shared with all.

Primo PDF - Turn any document or screen into a .pdf

Gadwin Print Screen Pro - Print screen utility that captures your desktop when you press that seldom used print screen key.  Great way to capture those detailed overhead views from Microsoft Live Maps.

Maps - Microsoft Live has an unbelievable map program (depending on your location).  The Outer Banks is completely covered which is great for us.  The birds eye view is just that - great resolution.  You can even view the property from four directions - Microsoft has really kicked it into high gear with this program.  Great tool for showing you potential buyer exactly where and what the property looks like.  Google Maps has some cool features - you can create your own maps with markers to highlight points of interest such as restaurants or points of interest.

Video - Want to add some sizzle to your site.  Try posting some video from Google Video, YouTube or Viddler.  Viddler is my favorite - less junk and you can add tags and comments throughout the video. 

Widgets - Sounds like something from an economics class - Widgets are small programs that you can add to your website. 

Contact Management - Big Contacts is a pretty cool program for keeping up with contacts.  Web based and free for the first 250 contacts. 

Realbird Publisher - Single Property Web Site Builder Service.  You should pay for the advanced services - well worth the money. 

Pandora - Not really a Real Estate Program but a must have.  Having a stressful day - play your favorite artist and relax.

I would like to hear about your favorite free tools.  Leave a comment and let us know what free technology tools you cannot do without. 

Update:  Forgot about Goog 411 - no more directory assistance calls at $1 each.

 

Two new blogs from "Old OBX Bloggers"

There are a couple of new blogs on the Outer Banks.  Let me clarify that - new blogs - old bloggers.  No age discrimination here.  The two bloggers are X Mayor Bob and Monty and their new sites discuss and critique some adult pleasures. 

Wines From the Ridge - from Bob Muller

Outer Banks Republic Syn-Tax - from Monty

Now for all of those that don't know what to get these wordsmiths - now you do.  There is now a historical reference of what they like and what they can do without.  Now I am going to sit back and wait for an invite to join the festivities.  Still waiting.  Call me please!  I really didn't mean any harm from the "Old Blogger" comment. 

BIG Mortgage Companies in the news

In case you were on a charter fishing boat all day catching some of those monster Rock Fish on the Outer Banks - a few big news items have happened.  No, I am not talking about OJ being arrested again.  Bank of America purchased Countrywide.  They have dated for some time but a merger has finally come to fruition.  At least it will end the speculation of Countrywide declaring bankruptcy and Bank of America can probably weather the mortgage storm. 

On another note, I have read that J.P. Morgan Chase is considering purchasing Washington Mutual.  My how things have changed in just a few short months.   

Ben Bernanke spoke yesterday and hinted at larger cuts in the Fed Rate - good for those with Home Equity Lines of Credit.  The cuts are expected to be announced at the end of January. 

Mortgage rates are at a two year low - there are plenty of available properties on the Outer Banks and the fishing is pretty good this time of year.  If I can be of any assistance, please feel free to contact me at your convenience.  Mobile: 252-599-0364. 

Jealous Again - Cool toys on the Outer Banks

I've had enough.  I thought I had friends on the Outer Banks...

The truth of the matter - I want one of these.  Actually, I just want to borrow Bill's toys.  Fellow Outer Banks blogger Bill Bell has a great video he posted online of his new toys flying over Jockey's Ridge State Park.  For those not familiar with the area - Jockey's Ridge is a huge pile of sand on the Outer Banks of North Carolina. 

My sister in law Lisa (that I love dearly) bought my sons a remote control plane two years ago for Christmas.  I proceeded to fly the plane into the swamp in Smithfield, Virginia in less than two minutes.  I can now say that I will never live that moment down in my life. 

My plea is to Bill - let my children enjoy flight!  Take them for a weekend and teach them to fly.