Fed Move Lowers Rates Perception is Reality

The Federal Government's moves yesterday have produced a flurry of interest and the first positive mortgage press we've seen in months.

The rates dropped from mid 6's to mid 5's. That's about $70 on a $150,000 mortgage. So the reality isn't huge.

However, the publicity led to a positive perception and some lenders were reporting a 100% increase in call activity.

Interest rate have never been a problem throughout this entire "housing crisis". As opposed to prior housing crises when mortgage interest rates were in the 16-17% range.

Let's just hope that the lenders don't go back to what got us in trouble the "no credit, no money, no job - NO PROBLEM" underwriting that led to the defaults.

Calling Central PA Scots

Last night was the St. Andrews Day dinner. Good fun as usual.

If you want to celebrate your Scots heritage or just enjoy things Scottish, consider the Scottish Society of Central Pennsylvania. The Burns dinner, our big formal event of the year is coming in January.

For info contact me or go to their website http://www.pennscots.org/index.htm

Tough Economy - Save By -

Gas is cheaper than it was but you can still save some dollars .

Remember that small savings add up.

Pump up your tires. Tires lose about a pound a month. As the temperature cools the air you put in shrinks. IF you drive with tires that are just 3 pounds underinflated, your vehicles fuel economy drops by 1 percent.

Clean your car. No, I'm not talking about polishing the outside to reduce wind resistance. But take a look at what you are hauling around in your car. Is there a bunch of stuff that belongs somewhere else and just never made it. If you're hauling around 100 extra pounds, for example you may be lowering your fuel efficiency by up to 2%.

Neither one of these will make your SUV into a Prius but they will put more money in your pocket.

Remember Breakfast Rides in whe Winter Too

All summer long we ride to Lawn and Ephrata etc.

In winter there are still Fire Departments that need our support.

On the west shore, Citizens Fire in Mechanicsburg is having a breakfast on 23 Nov. New Kingstown had one last weekend.

They are still out there. The need our support. We need to eat regardless of the weather and hey if we hit a good weather day - get out and ride.

Good weather? In the winter for me 38 and no ice on the roads.

Real Estate Myths Continued

MYTH: Only home sellers - not buyers - need a real estate agent

TRUTH: I'm surprised this one is still out there. Do you want to rely on a Seller's agent whose DUTY is to get the best deal for the SELLER? It's not a matter of honesty, it's a matter of who works for whom. Lots of dollars at stake in a complex transaction - is it worth the risk to not have someone representing YOUR interest? Find an agent you can trust and have rapport with. with.

Real Estate Myths

As the real estate market has moved away from the go-go times when everything sold regardless of price and Congress encouraged lenders to lend to any buyer who could fog a mirror, it is time to focus again on the basics.



It has been so long that most consumers (and some agents) have forgotten the basics that are hidden by myths which came in when times were crazy.



So I'll post from time to time some of what I consider to be myths.



Myth - Buyers should wait until they find the home they want before getting loan approved.



Reality: Especially in today's mortgage market, where standards are changing weekly if not daily, loan approval needs to be a first step. Just because you could get it 3 months ago doesn't mean anything today. You don't want to fall in love with a house, then find out you can't get it or at the payment you were expecting. You're going to need a lender you can work with anyway, so why not get that relationship started before you absolutely need them the next day.

Take the time to find the lender with the service to keep you up to date on how the changing world of real estate lending impacts you. Now more than ever, you need a real person you can work with NOT an electronic phantom.

When you find the home you've been dreaming of you'll know you can get it and you'll be in a much stronger position to close the deal.

He's Back

Back from the elections - so no need for election politics.

Back from vacation. Black Hills were wonderful in the "off "season.

Back to the buying and selling of homes which is still occurring despite the tough economic times.