Market Comment - Week of March 30th, 2009 Mortgage bond prices fell last week applying upward pressure on mortgage interest rates. The bond market got a shock from a surprise increase in new home sales, stronger than expected durable goods orders, and some stock strength. There were also concerns about the US dollar in general and dollar denominated securities as China expressed interest in substituting the yuan to dollar peg in exchange for a new international currency. Fortunately the Fed continued to come to the rescue buying mortgage backed securities in an effort to keep interest rates relatively steady and low. For the week, interest rates on government and conventional loans rose by about 1/8 to 1/4 of a discount point.
The employment report Friday will be the most important economic release this week.
Economic FactorsEconomic IndicatorRelease Date TimeConsensus EstimateAnalysisConsumer ConfidenceTuesday, March 31, 200928.0Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates. ADP EmploymentWednesday, April 1, 2009Dow 648kImportant. A measure of employment. A larger decrease in payrolls may bring lower rates. Construction SpendingWednesday, April 1, 2009Down 2.0%Low importance. An indication of economic strength. A significant decrease may lead to lower rates.ISM IndexWednesday, April 1, 200935.5Important. A measure of manufacturer sentiment. A large decline may lead to lower mortgage rates. Factory OrdersThursday, April 2, 2009Down 1.3%Important. A measure of manufacturing sector strength. A larger decrease may lead to lower rates.EmploymentFriday, April 3, 20098.5%, -657kVery important. An increase in unemployment or a larger decrease in payrolls may bring lower rates.
Consumer ConfidenceThe Conference Board releases the Consumer Confidence Index on the last Tuesday of every month. The report details the levels of confidence individual households have in the performance of the economy. The data is derived from a survey of 5,000 households nationwide. The survey polls consumer opinions on current business conditions, their jobs, their incomes, and their future spending plans.
The consumer confidence index is significant in that it provides a precursor into consumers' willingness to spend in the months ahead. However, many analysts point out that willingness to spend does not always convert to actual expenditures.
Despite economic uncertainty, liquidity issues, and housing market weakness, American consumers continue to spend. However, many analysts question whether consumers can continue to buoy the economy, especially amid rising unemployment and tightening credit.
This week's release will be eagerly anticipated. Look for any variation from estimates to cause mortgage interest rate volatility. Signs of eroding consumer confidence could lead to improvements in mortgage interest rates. However, stronger than expected figures could spike rates higher.
With mortgage interest rates relatively low, capitalizing on current levels is recommended to protect against future volatility. Remember, mortgage interest rates tend to trend lower slowly, while increases tend to occur quickly. A cautious approach is necessary to protect from future market volatility.
Monday, March 30, 2009
Thursday, March 26, 2009
Not work...relationship...
I have come to a point...a point in my life...that I choose to be myself...I am a little cocky...not because of anything about my physical appearance, my personal life, or my stature in life. I am cocky because unlike most...I really, really strive to do my best at everything...know more than I am required, and feel privaledged that the ones in my past still call me. I am thankful for these things. I have moved across and around this country 8 times now...I choose to settle about 2 years ago...never thought that I would...and there are days that I want to leave all this behind and go do something, anything, just thrive on the change again...but I won't...because I choose to follow this path.
I pray for each one of you...you are created...if you put yourself down...you are putting down whoever you believe created you.
In the morning...get up...and speak out what you are thankful for...I know it sound silly...just do it.
M
I pray for each one of you...you are created...if you put yourself down...you are putting down whoever you believe created you.
In the morning...get up...and speak out what you are thankful for...I know it sound silly...just do it.
M
Tuesday, March 24, 2009
Wow...mortgage rates
Rates are very attractive. Conforming rates all under 5.00% with the exception f the USDA Rural Housing 100% Financing Product and it is right at 5.00%,. Jumbo Loans are looking great10 and 15 year fixed rates in the 5.00% range and ARMS in the 5's as well. The 5 Year ARM dips below 5 to 4.75% WOW!!!! 30 Year money is still a bit pricey at 6.875%
Thursday, March 19, 2009
Buyer Article
How to Create Loyal Buyers by Cres McFall (SF South Bay)...I thought this was a pretty good article...thought I would share it...by the way...FHA Down to 4.75 today...time to lock!
How to Create Loyal Buyers by Cres McFall (SF South Bay)www.mcfallrealestate.net One of the phrases sometimes repeated by real estate agents is, "Buyers are liars." That comes from the frustration felt when a buyer-client buys something different from what the agent thought the buyer wanted, and sometimes buys it through another agent. How can we become so valuable to the client that they feel loyal? The following goes into some detail about how to interview buyers before you show them homes. Believe it or not, the interview connects you with buyers so effectively that they won’t even consider working with another agent. In fact if they have been working with other agents, they will adopt you as their only agent. We often hear clients say that they will know the right house when they see it. The "right house" is a vague concept that they can’t describe. This interview is the answer. The following is an extraordinary form of listening. It enables you to: Qualify the motivation of the buyers, Streamline the process of finding the right home. Build a healthy, trust-relationship
In a number of instances when this interview process has been followed, the agent has been able to understand clients’ needs so thoroughly that the agent could narrow the choices easily, and occasionally sell the first house shown. One woman exclaimed, before they even entered the house, that the agent had, "climbed into their head." This was not luck. Master this outline. You can know where the bulls-eye is and hit it. There are 3 qualifying steps: What will they buy? Will they buy now? Will they buy from me? This first step involves a series of questions that uncover your clients’ attitudes and feelings about their future home. These questions follow a pattern that enables you and your clients to move beyond the superficial and obvious and to reach the heart of their desires. Begin with open-ended questions. For example, "Describe your next house," or "Tell me about your dream home." Don’t be tempted to ask specific questions such as "how many, where," etc. The objective is to allow your clients to explore their own thoughts about a home. Sometimes couples surprise each other in this process, because new ideas surface. Watch for words that are emphasized or repeated. TAKE LOTS OF NOTES! Nod your head, make listening noises and keep still. (I know that’s difficult!) This listening may take an hour or more. To further open up the thinking process, ask modified open-ended questions. These sound like "Tell me more about [whatever they have mentioned]." The process is called "layering down." When they look off into space as they describe something, you’re on the right track. They are envisioning the enjoyment of some aspect of their new home. You don’t want to rush this process. Continue to stoke it and stoke it and stoke it until you have plumbed the bottom. As your clients talk about their future home, they will talk mostly about "features" (big yard, one story, 4 bedrooms, etc.). Here is where you demonstrate a superior ability to understand them. People do not buy features. They buy the benefits derived from features. So the next step is for you to translate these features into benefits. The next part of the interview is to ask, "What does having [a feature] mean to you?" or "Why is [a feature] important to you?" Work through the more prominent features. Listen for the benefit behind the features. I memorized these benefits so I could easily teach them to others, but the essence of the idea is to understand that features are the superficial expression of the benefits. It isn't suggested that you talk about "benefits" to your client. Just be aware of them. There are only 14 benefits derived from owning anything. Here are the benefits: Aesthetics Comfort Convenience Economy Education Entertainment Health Love (romance) A spouse or partner will sometimes buy to please the other one. Prestige Privacy Recreation Safety Security Self-actualization. (could be a work bench in the garage, a rose garden?) If a client mentions that they would like to have a big back yard, the translation may reveal that what they really desire is privacy, or a place to garden (self-actualization), or the aesthetics of a view. While most agents would run out looking for a big back yard, you know that their real desire is to have the derived benefit, even with a small yard. You can apply this to even the most mundane elements of a home, such as a dishwasher, separate dining room, 2 car garage, etc. This first step of discovering what your clients are feeling about their next home may take an hour or more, but it can save you many hours of searching and/or frustration. Since the essence of our work is building relationships, this is a priceless opportunity. You become a trusted friend in the process. Your clients understand more than ever before what is important in their new home. Your notes will tell you which 3 or 4 benefits are the most important to your clients. Explain that every home purchase involves compromises and that they have indicated that some things are not to be compromised. Ask, "If I locate a home that has [benefits: one, two and three], are you prepared to buy it?" This may seem like an aggressive question on paper, but when you have gone through Step I thoroughly, you will have a solid relationship with your client that allows you to ask for this commitment. They will feel that you understand their desires better than anyone before, even better than they understood themselves before the interview. If the answer to Step II is yes, the next question secures the client relationship. Explain, I work with only a few clients at a time so that I can devote my time and energy to serve them well. In order to justify that commitment, I need to ask you to make a similar commitment to me? "Would you be willing to work only with me?" Most often they are totally sold on you and can say yes easily. If there is another agent in their thought, you may want to add, "for a period of 2 weeks." If they don’t want to commit, move on to the next client. As I mentioned at the beginning, I have used this interview process many times, and found it so effective that sometimes I have been able to show my clients one house, point out to them that it satisfies [benefits: one, two and three], and they buy it. Review: Ask lots of open-ended questions and listen, listen, listen. Ask clients to tell you more about [their answers.] Summarize the big three benefits and ask for a commitment to buy. Explain that you make a total commitment and ask them to commit to you.May you have much success with this interview process! And speaking of loyal buyers you also want to recommend to them a home inspection company they can trust to even further their loyalty to you. And you also want an inspection company that won’t scare your clients. We can do both of these!!
How to Create Loyal Buyers by Cres McFall (SF South Bay)www.mcfallrealestate.net One of the phrases sometimes repeated by real estate agents is, "Buyers are liars." That comes from the frustration felt when a buyer-client buys something different from what the agent thought the buyer wanted, and sometimes buys it through another agent. How can we become so valuable to the client that they feel loyal? The following goes into some detail about how to interview buyers before you show them homes. Believe it or not, the interview connects you with buyers so effectively that they won’t even consider working with another agent. In fact if they have been working with other agents, they will adopt you as their only agent. We often hear clients say that they will know the right house when they see it. The "right house" is a vague concept that they can’t describe. This interview is the answer. The following is an extraordinary form of listening. It enables you to: Qualify the motivation of the buyers, Streamline the process of finding the right home. Build a healthy, trust-relationship
In a number of instances when this interview process has been followed, the agent has been able to understand clients’ needs so thoroughly that the agent could narrow the choices easily, and occasionally sell the first house shown. One woman exclaimed, before they even entered the house, that the agent had, "climbed into their head." This was not luck. Master this outline. You can know where the bulls-eye is and hit it. There are 3 qualifying steps: What will they buy? Will they buy now? Will they buy from me? This first step involves a series of questions that uncover your clients’ attitudes and feelings about their future home. These questions follow a pattern that enables you and your clients to move beyond the superficial and obvious and to reach the heart of their desires. Begin with open-ended questions. For example, "Describe your next house," or "Tell me about your dream home." Don’t be tempted to ask specific questions such as "how many, where," etc. The objective is to allow your clients to explore their own thoughts about a home. Sometimes couples surprise each other in this process, because new ideas surface. Watch for words that are emphasized or repeated. TAKE LOTS OF NOTES! Nod your head, make listening noises and keep still. (I know that’s difficult!) This listening may take an hour or more. To further open up the thinking process, ask modified open-ended questions. These sound like "Tell me more about [whatever they have mentioned]." The process is called "layering down." When they look off into space as they describe something, you’re on the right track. They are envisioning the enjoyment of some aspect of their new home. You don’t want to rush this process. Continue to stoke it and stoke it and stoke it until you have plumbed the bottom. As your clients talk about their future home, they will talk mostly about "features" (big yard, one story, 4 bedrooms, etc.). Here is where you demonstrate a superior ability to understand them. People do not buy features. They buy the benefits derived from features. So the next step is for you to translate these features into benefits. The next part of the interview is to ask, "What does having [a feature] mean to you?" or "Why is [a feature] important to you?" Work through the more prominent features. Listen for the benefit behind the features. I memorized these benefits so I could easily teach them to others, but the essence of the idea is to understand that features are the superficial expression of the benefits. It isn't suggested that you talk about "benefits" to your client. Just be aware of them. There are only 14 benefits derived from owning anything. Here are the benefits: Aesthetics Comfort Convenience Economy Education Entertainment Health Love (romance) A spouse or partner will sometimes buy to please the other one. Prestige Privacy Recreation Safety Security Self-actualization. (could be a work bench in the garage, a rose garden?) If a client mentions that they would like to have a big back yard, the translation may reveal that what they really desire is privacy, or a place to garden (self-actualization), or the aesthetics of a view. While most agents would run out looking for a big back yard, you know that their real desire is to have the derived benefit, even with a small yard. You can apply this to even the most mundane elements of a home, such as a dishwasher, separate dining room, 2 car garage, etc. This first step of discovering what your clients are feeling about their next home may take an hour or more, but it can save you many hours of searching and/or frustration. Since the essence of our work is building relationships, this is a priceless opportunity. You become a trusted friend in the process. Your clients understand more than ever before what is important in their new home. Your notes will tell you which 3 or 4 benefits are the most important to your clients. Explain that every home purchase involves compromises and that they have indicated that some things are not to be compromised. Ask, "If I locate a home that has [benefits: one, two and three], are you prepared to buy it?" This may seem like an aggressive question on paper, but when you have gone through Step I thoroughly, you will have a solid relationship with your client that allows you to ask for this commitment. They will feel that you understand their desires better than anyone before, even better than they understood themselves before the interview. If the answer to Step II is yes, the next question secures the client relationship. Explain, I work with only a few clients at a time so that I can devote my time and energy to serve them well. In order to justify that commitment, I need to ask you to make a similar commitment to me? "Would you be willing to work only with me?" Most often they are totally sold on you and can say yes easily. If there is another agent in their thought, you may want to add, "for a period of 2 weeks." If they don’t want to commit, move on to the next client. As I mentioned at the beginning, I have used this interview process many times, and found it so effective that sometimes I have been able to show my clients one house, point out to them that it satisfies [benefits: one, two and three], and they buy it. Review: Ask lots of open-ended questions and listen, listen, listen. Ask clients to tell you more about [their answers.] Summarize the big three benefits and ask for a commitment to buy. Explain that you make a total commitment and ask them to commit to you.May you have much success with this interview process! And speaking of loyal buyers you also want to recommend to them a home inspection company they can trust to even further their loyalty to you. And you also want an inspection company that won’t scare your clients. We can do both of these!!
Monday, March 9, 2009
In Consideration
Of the times that we as Americans are facing...I would like to extend to you that you wake up and write the things you are thankful for...It is too easy to become what the media is telling us where we are...the media does not dictate our fate.
M
M
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