Here’s an article from the Ottawa Citizen that reminds us that are 2 sides to every story. Rising home prices means good news to sellers but not so good news to home buyers.
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Gong Xi Fa Cai!
Just wanted to wish my friends and clients a Happy and Prosperous Chinese New Year! Stay safe and I hope to be hearing from you soon.
Why Canada Doesn’t Have a Foreclosure Problem
Here’s an interesting article on why Canada is better of today than other countries.
http://realestate.aol.com/blog/2011/01/18/why-canada-doesnt-have-a-foreclosure-problem/?ncid=AOLCOMMre00sharartl0001&a_dgi=aolshare_email
New Canadian Homeowners
Congratulations to Mr. and Mrs G from Calgary who purchased a terrific investment home in Las Vegas. Home has 4 bdrms, loft upgraded floors and kitchen and sparkling pool and spa. It also has a built in tenant in place.
We wish you many happy successful years !
US Financial Market Update
The volatility in mortgage rates continued. During the week, Freddie Mac reported that average 30-year fixed rates dropped to the lowest level in decades, but mortgage rates moved higher later in the week. Weak Treasury auction results and concern about demand from foreign investors were negative for mortgage rates, and they finished the week moderately higher.
The Fed’s new quantitative easing program which was announced last week initially helped mortgage rates drop to decade lows, but investor concerns stalled further improvement. The quantitative easing program pumps dollars into the economy, and the increased supply weakens the value of the dollar relative to other currencies. When foreign investors sell US securities, they must convert the US dollars they receive into their own currency. If the value of the dollar falls, then the value of their US investment falls in relative terms to their own currency. As a result, foreign investors may reduce their purchases of US securities, including mortgage-backed securities (MBS), which would cause yields to increase. This fear of weaker foreign demand hurt mortgage rates this week.
The latest forecast from the Mortgage Bankers Association (MBA) projects an increase in home sales in 2011. Modest economic growth, pent-up demand, and stabilizing home prices are the main reasons for the expected gains. According to the MBA, both purchase originations and existing home sales will increase in 2011 from 2010. The MBA also forecasts that fixed mortgage rates will rise during 2011.
The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Tuesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Wednesday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Retail Sales, an important indicator of economic growth, will be released on Monday. Retail Sales account for about 70% of economic activity. Industrial Production, another important indicator of economic growth, is scheduled for Tuesday. Housing Starts will come out on Wednesday. Empire State, Leading Indicators, and Philly Fed will round out the week.
Jia Mei Wang
Mortgage Consultant
(702) 372-7554
The Keene Team, Las Vegas Real Estate Producers! (702) 218-0543 keeneteamvegas@gmail.com
Home Purchase at High Demand
Home loan demand rises as rates stay low
U.S. mortgage applications rose last week, driven by higher demand for both home purchase and refinance loans.
U.S.Economic News.Mortgage rates to stay low
As expected, a week packed with major economic events produced a great deal of daily volatility in mortgage rates. The Fed’s announcement was positive for mortgage rates, the Employment report was negative, and the election results were neutral. In the end, mortgage rates finished the week a little lower.
On Wednesday, the Fed announced that it will purchase an additional $600 billion in Treasury securities by the end of the second quarter of 2011 to boost the economy. The Fed expects to purchase about $75 billion per month to reach this target. This fell near the middle of the wide range of investor forecasts. The Fed will regularly review both the pace of the purchases and the overall size of the program. Added demand for Treasury securities generally benefits other bonds as well, including mortgage-backed securities (MBS), and expectations for this plan have helped lower mortgage rates over the last couple of months. Prior to the announcement, there was so much uncertainty surrounding the program that mortgage rates improved a little further when the details contained no major surprises.
Mortgage rates rose on Friday when the Employment report came in stronger than expected. Against a consensus forecast for a gain of 60K jobs, the economy added 151K jobs in October. Private employers hired 159K workers, the highest level since April. Revisions from prior months added an additional 103K private sector jobs. As expected, the Unemployment Rate remained at 9.6%. Average hourly earning, a proxy for wage growth, rose 0.2% from September. Stronger than expected economic data raises future inflation expectations, which pushed mortgage rates higher after the report.
Next week will be a very light week for economic data. The Trade Balance and Import Prices, which generally are not market moving reports, will be released on Wednesday. Consumer Sentiment will come out on Friday. There will be Treasury auctions on Monday, Tuesday, and Wednesday. These will be the first auctions since the Fed’s announcement about quantitative easing, and the results may produce a significant reaction. Mortgage markets will be closed on Thursday for Veterans Day, while the stock market will not close.
Jia Mei Wang
Mortgage Consultant
Foreign Investors are Buying!
Foreign investors not scared of housing market
The Viceroy, a swanky condominium complex in downtown Miami, gives the impression that the United States is in another real estate boom.
HappyHalloween!
Hi we are just starting our Keller Williams Realty, Southern Nevada Halloween party for our associates, friends and family. Our Broker just walked by dressed like the Pope. Hilarious! Had a wonderful lunch with Jai Mei Wang with Summit Funding. We are working on sending a personalized letter to hundreds of Canadian Realtors. Canadian Realtors are a great source for finding buyers and investors that may want to purchase homes in the Las Vegas area. The Keene Team offers a generous referral fee to any Realtors introducing us to Canadians wishing to buy in the U.S. Contact us anytime! www.KeeneteamVegas.com
Canadians Financing Home Purchases In Las Vegas
Jia Mei Wang, Senior Loan Consultant and Mortgage Banker with Summit Funding, Inc. has some good news for Canadians wishing to invest in real estate in Las Vegas. Jia Mei, who speaks Mandarin and Cantonese, has years of experience assisting home buyers and investors purchase in the Las Vegas area. She may be reached at Summit Funding www.SummitFunding.net or by email: jwang@summitfunding.net. Jia Mei’s works with Realtors Amelia and Kenny “K2″ Keene, The Keene Team with Keller Williams Realty Southern Nevada. Amelia and Kenny are experienced Bank Owned,Foreclosure & Short sale agents.
The following is the guidelines for Canadians wishing to purchase in the U.S.
CANADIAN BORROWERS – PURCHASE ONLY
- 65% max LTV – second homes
- Canadian credit report all borrowers
- Full income documentation
- Full asset documentation (converted to US Dollars)
- 1% of loan amount – 3 year – hard prepay (No buyout)
- EZ Pay required (automatic deduction of mortgage payment from US Dollar bank account
