http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/finance/real-estate/the-recession-is-over-in-case-you-hadnt-noticed.html http://www.articletrader.com/finance/real-estate/the-recession-is-over-in-case-you-hadnt-noticed.html Mon, 14 Sep 2009 19:56:23 -0500
"A study by research firm AlixPartners concluded that once a new normal sets in after this recession ends, Americans will spend at about 86 percent of their pre-downturn level," a recent AP article reported. While the Fed expects business spending to increase in the next quarter, with a 3 to 4 percent increase predicted, it is consumer spending that truly drives the American economy.

This summer's Cash for Clunkers program will give consumer spending a little bump on the statistical charts, but those numbers may be misleading. Many consumers who spent money on cars did so in place of purchasing other consumer goods. Not to mention that a car comes with a car payment that will impact what funds people have available on a monthly basis, thus effecting consumer spending habits in the long-term.

Further impacting consumer spending is the fact that the national unemployment rate is at a 26-year high of 9.7 percent. It is widely reported that the rate is expected to reach 10 percent before the end of the year. While Austin's unemployment continues to be lower than the national average, consumers everywhere remain cautious about job security. The real estate market remains weak across the country, which is yet another thing to make the American consumer feel uncertain about the future.

As a Time magazine article recently pointed out, the ripple effect of one job loss can be felt across an entire community. When the economy is faltering and companies begin cutting back on jobs, either through layoffs or hiring freezes, it starts a brutal cycle. People begin spending less on eating out, for example. Restaurants bring in less revenue, which means less tax revenues for the city, less tips for the wait staff, less money going to suppliers and eventual layoffs in more business sectors. More job losses means less consumer spending and the cycle continues.

Sales tax revenues in Texas are down 11.6 percent from the summer of 2008, according to the Austin-American Statesman. Cities from Amarillo to Austin are having a tough time meeting budgets and are cutting back on services, like library hours and teacher salaries. Thus the cycle continues.

Normally as a recession ends, the cycle begins to change as both businesses and consumers start spending again. According to the AP this is what happened after the recession in the early eighties, helping to fuel the prosperity of the last decade. What is different this time around is the soaring housing market that had everyone feeling rich just a couple of years ago. When the housing market came crashing down, it left a lot of Americans deeply in debt in the rubble. So while jobs are scarce and incomes are down, personal debt is at an all-time high, more than doubling in the last decade (AP). Add to that the fact that the retirement funds of the large baby boomer generation have been depleted through the faltering stock market. The recession maybe over officially, but it left a new American consumer in its wake: one who is more focused on paying down debt and building retirement funds than in buying a new refrigerator or going out to eat.


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Ki's office is located in central Austin and he works in the Austin Texas real estate market. He encourages potential buyers to search for homes in the Austin MLS on his website. His site also has a blog with updated information and statistics on Austin real estate.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/stress-free-moving-day.html http://www.articletrader.com/finance/real-estate/stress-free-moving-day.html Mon, 14 Sep 2009 19:53:46 -0500
Begin by finding a reputable moving company and thoroughly checking their references, along with comparing prices of various companies. Everyone has heard a moving horror story or two, so doing the homework on moving companies is worth the effort. Once a company has been selected and a packing day has been set, it's time to get things organized.

Whether packing belongings personally or having the moving company pack everything, careful labeling of boxes is a key component of hassle-free unpacking on the other end. Merely labeling a box "kitchen" or "bedroom" isn't as helpful as knowing the contents of a box in order to better assess which box to unpack first. This may sound like a minor inconvenience, but when faced with a new house full of cardboard boxes, knowing where the coffee maker is can be extremely helpful.

Before the packers come, take some time to go through the house room by room and de-clutter. Moving is a great time to finally get rid of extra things that have been piling up. Make a pile to donate, a pile to recycle and some things may need to go to the trash pile.

Take the time to look over valuable jewelry, collections and papers. It's a good idea to move things like that personally. It's also important to known the moving company's policies on items like paint cans or propane tanks. The more things are in order on the day of packing, the more efficiently (and quicker may mean cheaper) belongings can be packed up.

After boxes have been packed and carefully labeled with an inventory of the contents, it is time to come up with an unpacking plan. Most moving companies offer a variety of services, from the basic to full-service unpacking. No matter who is opening the boxes on the other end, it's a good idea to map out where furniture should be placed ahead of time. This certainly doesn't mean adjustments won't be made once the furniture is in the house, but having a plan minimizes stress for everyone involved. Another good idea is to decide if boxes are going to be placed in individual rooms for unpacking or a general unloading area.

Before meeting the moving truck at the new home, have a list of contacts from the moving company on hand, such the person responsible for the account and the dispatcher for the truck. It's important to set up a good line of communication immediately with the workers unloading the truck. Be sure to walk through the house with them before anything is unloaded to understand exact expectations of both parties. An inventory list should be provided and take the time to check each item as it is removed from the truck. Again, it sounds tedious but tiny details matter on moving day. Preparation before packing and vigilance as things are being unloaded are the extra steps that will take the stress out of the big move.


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Ki has worked as a realtor in the Austin real estate market for over 10 years. His website has information on Austin real estate along with a comprehensive list of properties in the Austin MLS. His site also provides a free mortgage rate widget.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/travel/destinations/the-pleasures-of-the-south-first-street-area-in-austin-texas.html http://www.articletrader.com/travel/destinations/the-pleasures-of-the-south-first-street-area-in-austin-texas.html Mon, 14 Sep 2009 19:48:40 -0500
There are a number of interesting clubs and restaurants as well, most of which offer live music on a regular basis. Two such venues are Jovita's and Freddie's Place, both delightful locations with shady trees with well known as well as new musical acts which usually perform early in the evening, to the satisfaction of families with children and the slightly older crowd that prefers to be back home at a reasonable hour.

Jovita's has had a number of very well known local acts play the spot recently, including the Marshall Ford Swing Band and the Cornell Hurd Band. The crowd is usually dancing to the catchy tunes, and it's worth the visit just to watch the boot-scooting and vintage clothing worn by many of the dancers, most of which are early to middle aged.

Freddie's has an outdoor stage under the trees, and patrons can have a full meal, while accompanied by their dogs (which are allowed on the patio area), or just sit up front with a frosty drink and listen to the musical acts, many of which are newcomers but very enjoyable and professional. Both of these fine eateries are on the east side of 1st just north of Live Oak and Mary Street. Bouldin Creek meanders through the neighborhood too, presenting a lovely and peaceful sight.

Traveling south, one gets to La Reyna and La Mexicana, a well-known tex-mex joint and Mexican food bakery, respectively, and both have great food and other products as well, including jewelry at La Mexicana as well as convenience store fare. Across the street, very interesting vintage clothing can be found at Flashback, which is currently having a clearance sale and all of the items are very reasonably priced. Amelia's and New Bohemia are also vintage and retro shops, a few blocks south on the east side of 1st. Adjacent to Amelia's, End of an Ear can be found, with various types of music on CD, record, tape, etc., and occasionally live music as well.

Just north of End of an Ear and its small strip center, Sugar Mama's offers cupcakes and other bakery items and sweets for the hungry strollers, and their confections are out of this world.Another vintage clothing and curios shop called Secret Oktober is a few doors down from Sugar Mama's too. There are also numerous coffee shops, including Bouldin, Once Over, and Somnio's, and all three have a laid back atmosphere and outdoor tables under the trees.

Farther north on 1st, but within walking distance, is an Austin legend, El Mercado, which offers a varied Mexican Food menu and has been in different locations over the years, with this site being in operation for almost ten years itself. Another great Mexican food spot, Polvo's, is a few blocks down, just south of the intersection of 1st and Mary on the west side of street, and their food is outstanding as are their drinks, especially the margaritas.

One of the most interesting locations is the South First Trailer Park Eatery, which is a large lot on which various food vendors operate out of airstream trailers and stands, with the emphasis on hand held food such as wraps, burritos, and deserts, also popcorn. This site also offers free movies on a regular basis, most of which are family oriented, and can be watched under the stars with one's own refreshments, which are allowed due to the BYOB policy. This week, the Back to the Future series has been shown, to the sure approval of the neighborhood kids and kids at heart.

There are many old yet restored homes in the area, and they are reasonably priced, many being fixer-uppers. Those near the creek are especially appealing, and many are already in perfect shape, ready to move in. But the real estate prices in the area reflect the appeal of the area and far outpace the average prices in the Austin real estate market. For new residents who prefer not to cook, the Soup Peddler offers delivery of different homemade, gourmet soups on a daily basis, and deliver on bicycle to neighborhood patrons, and has received rave reviews from diners.

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Ki works in Central Austin. He maintains a website focused on Austin real estate. The site allows future owners to search for Austin homes for sale. He also writes entries on his blog covering Austin tx real estate.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/mortgage-rates-stay-down.html http://www.articletrader.com/finance/mortgage/mortgage-rates-stay-down.html Mon, 14 Sep 2009 19:35:38 -0500
The continuing fall of the 30 year rate is good news for the national real estate market which is in the midst of a lukewarm recovery. The 5 year arm is seeing more activity now that it is significantly lower than the 30 year arm. Personally I still would heavily favor the 30 year arm with the possibility of seeing double digit interest rates in 5 years because of heavy government spending. The 1 year arm since moving above the 5 year arm has moved into no mans land with there being virtually no reason to get a 1 year arm at this point in time. Below are rates for the last few weeks.

Sep 10, 2009
30-yr 5.07 15-yr 4.50 5-yr ARM 4.51 1-yr ARM 4.64

Sep 03, 2009
30-yr 5.08 15-yr 4.54 5-yr ARM 4.59 1-yr ARM 4.62

Aug 27, 2009
30-yr 5.14 15-yr 4.58 5-yr ARM 4.67 1-yr ARM 4.69

Aug 20, 2009
30-yr 5.12 15-yr 4.56 5-yr ARM 4.57 1-yr ARM 4.69

Aug 13, 2009
30-yr 5.29 15-yr 4.68 5-yr ARM 4.75 1-yr ARM 4.72

Feb 05, 2009
30-yr 5.25 15-yr 4.92 5-yr ARM 5.26 1-yr ARM 4.92

In addition to rates we like to look at actual mortgage payments to gain some more perspective on mortgage rate changes. Based on current mortgage rates we determined the mortgage payment for a 200k loan. We did the same thing with rates from 2 weeks ago and rates from 6 months ago.

Sep 10
30-yr $1082.21
15-yr $1529.98
5-yr ARM $1014.55
1-yr ARM $1030.07

Aug 27
30-yr $1090.82
15-yr $1538.17
5-yr ARM $1033.67
1-yr ARM $1036.07

Jan 29
30-yr $1085.89
15-yr $1560.82
5-yr ARM $1106.88
1-yr ARM $1061.45

Compared to 6 months ago the mortgage payment on a 200k loan is pretty much identical. The payment is $3.68 less a month or a third of one percent.

The real question of course is where mortgage rates are going. There are a few schools of thought. The first is that mortgage rates are going to skyrocket along with inflation caused by the massive government spending over the last few years. There is another school of that that mortgage rates should rise but only slightly and that massive inflation will be curbed by the Federal Reserve.

Either way no one is advocating that mortgage rates are going to fall much further. Therefore my advice would be to look at 30 year rates and to avoid 5 and 1 year arms like the plague. If the first school of thought is correct and mortgage rates rise they will probably not move dramatically until the economy recovers.

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Ki lives in Austin Texas. He site has a graph showing historical mortgage rates. His site also has news and resources on real estate in Austin as well as a search of the Austin MLS.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/science/environment/changing-the-light-bulb-changing-the-world.html http://www.articletrader.com/science/environment/changing-the-light-bulb-changing-the-world.html Mon, 07 Sep 2009 02:31:43 -0500
The traditional bulbs, whose design is largely unchanged in the last 130 years, is being replaced by longer lasting fluorescent and halogen bulbs. The Earth Day Network lists changing light bulbs as the number one thing people can do to help the earth. Longer lasting fluorescent and halogen bulbs are far more energy efficient than traditional bulbs. According to the Earth Day Network, "If every household in the U.S. replaced a burned-out bulb with an energy-efficient, ENERGY STAR qualified compact fluorescent bulb...it would prevent more than 13 billion pounds of carbon dioxide from entering the atmosphere--which is like taking more than a million cars off the road for an entire year."

The plan is also supposed to save consumers 25 to 75 percent on their energy bills. But as NBC's Donna Friesen reported, not all Europeans are happy about the change. The complaints include not liking being forced into green habits and the inferior lighting of the newer bulbs. In fact, hoarding of the still available incandescent bulbs has been reported across Europe.

But the new rules are here to stay. According to Friesen, the British government estimates that if every household across England switched just three bulbs to the newer energy-efficient bulbs, it would save enough energy to power the whole nation's streets for a year. Most homes use a lot more than three light bulbs.

The EU has touted the positive impact this plan will have on the environment and the economy. The switch to the newer bulbs is projected to pump 14 billion into the European economy, according to the Associated Press. Even countries outside of Europe are hopping on the light bulb bandwagon, like Australia and Canada. Cash and energy strapped Tajikistan in Central Asia is banning the bulbs in an effort to loosen its reliance on imported electricity. According to the AP, last winter Tajikistan experienced devastating power shortages.

Get ready Americans. In 2007 President George W. Bush signed a bill that will have the U.S. begin phasing out the incandescent bulbs in 2012. But with the impact this simple change can have on both the environment and the wallet, why wait?


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Ki graduated from UT, and stayed in Austin to work in the Austin real estate market. He has a buyer focused website with a searchable database of the Austin MLS. His site also has information on Austin real estate and Pflugerville.


Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/mortgage-rates-fall-again-lowest-point-since-may.html http://www.articletrader.com/finance/mortgage/mortgage-rates-fall-again-lowest-point-since-may.html Mon, 07 Sep 2009 02:24:14 -0500
The question remains though why rates are dropping. The expectation has been that rates are going to rise eventually. Yet for the last 3 weeks 30 year rates have dropped from 5.29 to 5.08. The other major mortgage products all fell as well this week. Below are rates for the last few weeks. We also took rates from this week and August 27 and January 29th and translated them into a mortgage payment for a 200k loan.

Sep 03, 2009
30-yr 5.08 15-yr 4.54 5-yr ARM 4.59 1-yr ARM 4.62

Aug 27, 2009
30-yr 5.14 15-yr 4.58 5-yr ARM 4.67 1-yr ARM 4.69

Aug 20, 2009
30-yr 5.12 15-yr 4.56 5-yr ARM 4.57 1-yr ARM 4.69

Aug 13, 2009
30-yr 5.29 15-yr 4.68 5-yr ARM 4.75 1-yr ARM 4.72

Aug 06, 2009
30-yr 5.22 15-yr 4.63 5-yr ARM 4.73 1-yr ARM 4.78

Jan 29, 2009
30-yr 5.10 15-yr 4.80 5-yr ARM 5.27 1-yr ARM 4.90

Mortgage Payments (for a 200k loan)

Sep 03
30-yr $1083.44
15-yr $1534.07
5-yr ARM $1024.09
1-yr ARM $1027.68

Aug 27
30-yr $1090.82
15-yr $1538.17
5-yr ARM $1033.67
1-yr ARM $1036.07

Jan 29
30-yr $1085.89
15-yr $1560.82
5-yr ARM $1106.88
1-yr ARM $1061.45

The low rates combined with various tax credits have led to an up tick in real estate sales this summer. Of course the question remains how long mortgage rates can stay this low. With the massive amount of spending in the last year by the federal government the expectation is that at some point inflation is going to come home to roost. And without inflation the national deficit poses a significant problem. So on one hand the government has said they are watching inflation to make sure it does not rise to high. But on the other hand without inflation or national deficit poses a greater risk. So inflation should come in one form or another and once this occurs rates should rise along with inflation.

We are seeing some evidence that banks are easing restrictions on residential lending possibly because they are thinking the worst is now behind us. But we are only seeing credit loosing from some banks. Additionally, it's only for residential lending. Banks have grown much more restrictive with commercial lending to the point that it looks like banks want to exit the commercial market as quickly as possible.

So a few questions remain, while we expect rates to increase over the next 6 months, what's going to happen between now and then? This question doesn't have an easy answer. My expectation is that as long as the economy stays weak rates should stay low. They might go down a little or rise a little but I seeing them bouncing around between 4.75 and 5.00.

If people are looking to buy a house my advice would be to move now instead of wait. While I think rates are going to stay down for awhile if the economy's recovery starts to move along more rapidly we could see a rapid rise in mortgage rates.


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Ki organized a website focusing on Austin Tx real estate with a search of Austin area homes. His site also has a graph of historical interest rates along with a mortgage widget. It also has a blog with up to date information on the Austin real estate market.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/science/environment/austins-famous-hidden-pond-cambells-hole.html http://www.articletrader.com/science/environment/austins-famous-hidden-pond-cambells-hole.html Mon, 07 Sep 2009 02:17:26 -0500
Campbell's hole is actually just an area where the creek widens and rocks form a pool, and it can be accessed on either the east side of the creek or the west side, though most people arrive by the east entrance through the trails. Many swimmers and waders bring their dogs, and picnics on the banks and rocks are quite frequent too. Some of the trails are quite steep, so caution must be used when hiking to and from the area, and good hiking or tennis shoes are suggested.

This year has been very dry, so the water is slightly stagnant, and at such times, it is best not to swallow the water or swim with any open cuts, since all too frequently the visiting dogs use the stream for their personal business, but the swimming hole is very family-friendly and many Barton Hills neighbors take their children and pets down to the hole for a free afternoon of hiking, swimming, floating, and just wandering around.

Campbell's Hole has been popular with local swimmer since the seventies, or even earlier, and at one point, the primary entrance was from a trail in Zilker Park itself, just south of the springs, and the hole was primarily used by those hoping to avoid the entrance fees at the springs, but in the past, the hole was also considered the most popular place for skinny dippers, or those who prefer swimming in cut-offs and tee shirts. The crowd is very laid back, and in earlier years, most of the guests would be considered "hippies", in teeny bikinis if any clothing at all.

Many nice homes are perched on the cliffs above the swimming hole, and the entire area offers a majestic view for residents as well as hikers and other visitors. One entrance is across the street from Barton Hills Elementary School, with a trail entrance marked by a city-provided sign with an audio device that gives rules, instructions, and other information, including warnings about snakes and other critters in the park and surrounding areas.

In some places, the trails peter out and hikers have to wander through the brush to find the next section, but eventually one can hike from Campbell's Hole all the way to the bridge over Loop 360, quite a hike over rocky and irregular terrain, but very good exercise for the hearty.

Many beautiful and interesting kinds of wildlife can be seen from the hole, including owls, hawks, and other birds, along with unusual lizards and geckos, and some are tame enough to actually hold still for a quick picture, given their regular contact with people. Another interesting nearby hiking trail is the St. Mark's Episcopal Church's meditation walk, which is a series of trails behind the church, which is located at Barton Hills Drive and Barton Skyway, which dead-ends at the church, thus allowing pedestrians to access the hiking trails which connect to the Barton Creek Greenbelt and eventually Campbell's Hole itself.

Campbell's Hole has been an Austin landmark for years, and many fine homes, duplexes, and apartments are in the nearby area. The swimming hole's proximity to Mopac, which runs just west of the greenbelt, make it easily accessible, and this entire area is perfect for nature lovers, college students, young families and professionals, as well as the older, more established crowd who still enjoy the gorgeous scenery and recreational activities. When is southwest Austin on a hot day, take a brisk hike with your kids or dogs to Campbell's Hole for a natural day of fun and water in the Austin tradition!


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Ki has lived in Austin for 10 years. His hobby was Austin real estate, now it is his business. His website allows potential buyers to search by map for Austin homes. His site also provides a free mortgage rate widget.


Source: http://www.articletrader.com ]]> http://www.articletrader.com/travel/destinations/the-austin-convention-center-in-historic-downtown-austin.html http://www.articletrader.com/travel/destinations/the-austin-convention-center-in-historic-downtown-austin.html Mon, 07 Sep 2009 02:12:15 -0500
The Convention Center contains more than 800,000 square feet, numerous ballrooms, including the largest ballroom in Texas, and very high tech, state of the art communication and media networks, facilities and devices. There are over 54 separate meeting rooms and a ballroom that will accommodate 3000 diners at once, so the largest conventions can be easily hosted at the center, with all the modern accompanying technological paraphernalia.

Trade Shows and Expos are two of the most popular events held at the center, but many sporting events such as the Austin Ice Bats and local basketball skirmishes take place there as well, along with practice and training sessions. The Roller Derby team, the Lonestar Rollergirls, is a huge crowd favorite, and two of the most popular yearly events are the Carnival Rio de Brasileiro Celebration at Mardi Gras and various rodeo-related activities at roughly the same time of year. Many of these events have related events at the Palmer Event Center as well, which is just across the river.

The Gubernatorial Inauguration a few years ago was one of the most heavily attended and publicized events held at ACC, and many local as well as national celebrities and politicians appeared at the event, which was catered by the Aramark company as well as other local temp and catering agencies, who supplied over 50 TABC certified bartenders and wait staff galore. Many a local food service industry professional have gotten their start at the Convention Center, although all personnel is carefully screened and qualified before being admitted and allowed to cater the event or serve the patrons.

The facility is constructed primarily of limestone and granite, and has a historical feel yet quite a bit of natural light due to the plethora of windows. There are numerous levels and mobile bars and food stands throughout the complex, all of which can be tailored to the client's preferences. Another popular yearly event is the Armadillo Christmas Bazaar, an Austin tradition during which just about anything Christmas or gift-related can be found, especially arts, crafts, home furnishings and decorations, jewelry, and the like.

Many of the halls have retractable seating, so the size of the crowd can be accommodated no matter how large or intimate, and the over six blocks that encompass the Convention Center property makes walking from one end to the other quite a hike, but the many elevators, golf carts, and other types of assistance can be of benefit to the infirm or just plain tired guests.

Many of the conventions are education related, such as school districts, teachers, and college gatherings, and many are high-tech related, such as the World Conference on Internet Technology convention, which featured Bill Clinton as a guest a few years ago, to the delight of the patrons and visitors. There is also a yearly boat expo, which is another very popular event.

Some of the events on tap for October of this year include the Austin Board of Realtors Convention, a high school student career expo Skillpoint Alliance, and the World of Warcraft World Championships by Upper Deck Entertainment. There is also a Forum for Black Public Administrators, and shortly thereafter, holiday events will begin, many of which are balls, dinners, and dances.

The Convention Center is in the heart of historic downtown and also very accessible to I.H. 35 , which is a block east of the facility, and there are also residential areas close by and numerous hotels including the Hilton Garden Inn, the Downtown Hilton, the Marriott, the Hampton Inn, and many others.

The center is also very close to Lady Bird Lake and its numerous hike and bike trails, so convention attendees can get some recreation and fresh air while in the area. This facility is one of the most impressive in Austin, and has hosted many nationally known gatherings, and it is a sure stop on a trip to downtown Austin, so visit the Convention Center, and get a good look at Austin's largest high-tech meeting facilities!


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In Austin, Ki works with future home owners. He helps buyers interested in the Austin Texas real estate market. His site allows them to perform a map search of Austin MLS listings. He also writes a regular blog with information and updates on Austin real estate.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/the-truth-behind-the-housing-numbers.html http://www.articletrader.com/finance/real-estate/the-truth-behind-the-housing-numbers.html Sat, 29 Aug 2009 18:27:00 -0500
A big chunk of the recent increase is first-time home buyers taking advantage of the tax credit. One third of recent home sales are due to the $8000 incentive for first-time home buyers, which will end in November. Another third of the recent sales across the nation are actually foreclosures. According to a recent report on NBC news, home prices overall are down 23 percent in the last year, largely due to the number of foreclosures across the country.

NBC news broke down the numbers even further, showing that the biggest surge in home sales are for homes under $100,000. While sales of homes in this price range rose an impressive 39 percent in the last month, sales for homes over $250,000 are actually down. In fact, the higher the price tag the fewer homes are selling.

Better numbers in several sectors of the economy, including housing, have led Federal Reserve Chairman Ben Bernanke to announce that the U.S. economy is on the verge of recovery. He said at a Federal Reserve conference in Wyoming that "the prospects for a return to growth in the near term appear good." Not a resounding endorsement of the world economy, but certainly keeping to the more positive tone he has taken lately.

According the Associated Press, Bernanke continues to stress the importance of freeing up consumer credit, stating this is the key to any kind of long term economic recovery. However, banks continue to be careful with lending to consumers. Mortgage defaults remain at an all time high--which brings us back to the housing numbers. While foreclosures continue to less of a factor in Austin as they are in other parts of the country, they are taking a toll on the economy as a whole.

As the latest housing numbers have indicated, foreclosures are great for bargain hunters but bad for the housing sector and the overall economy. It only takes one foreclosure in a neighborhood to skew the assessment of overall home values in that area. Mortgage defaults that lead to foreclosures cost banks a significant amount of money. The banks in turn raise rates on credit cards and fees to recoup some of these losses, along with making fewer loans overall.

The real estate industry is lobbying Congress to get an extension on the first-time buyers' tax credit, because many industry analysts are predicting a plunge in the housing numbers after November. "I would not be at all surprised to see a dip at the end of the year once the tax credit expires," Robert Dye, senior economist with PNC Financial Services Group, told the AP.

Austin continues to weather this long recession better than the rest of the country, but let's hope the story behind the national numbers gets better.


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Ki moved to Austin for school. After graduation, he started working in the Austin real estate market. He has a website where future owners can search the Austin MLS. His website also has a blog with updates in Austin Texas real estate.


Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/mortgage-rates-hold-steady_2.html http://www.articletrader.com/finance/mortgage/mortgage-rates-hold-steady_2.html Sat, 29 Aug 2009 18:17:58 -0500
The general consensus is still that rates are going to eventual move up rapidly when the economy recovers. As long as the economy stay in the doldrums there is a decent chance rates will stay below 5.5. To put today's rates in historical context the all time low for the 30 year rate is 4.81 (reached in April 2009). So the 30 year rate is still very close to its all time low. Below are mortgage rates for the major mortgage products for the last few weeks and from January 22 (6 months ago).

Aug 27, 2009
30-yr 5.14 15-yr 4.58 5-yr ARM 4.67 1-yr ARM 4.69

Aug 20, 2009
30-yr 5.12 15-yr 4.56 5-yr ARM 4.57 1-yr ARM 4.69

Aug 13, 2009
30-yr 5.29 15-yr 4.68 5-yr ARM 4.75 1-yr ARM 4.72

Aug 06, 2009
30-yr 5.22 15-yr 4.63 5-yr ARM 4.73 1-yr ARM 4.78

Jul 30, 2009
30-yr 5.25 15-yr 4.69 5-yr ARM 4.75 1-yr ARM 4.80

Jan 22, 2009
30-yr 5.04 15-yr 5.12 5-yr ARM 4.80 1-yr ARM 5.24

For the most part mortgage rates have stayed low in spite of some encouraging signs with the economy. In addition to rates we can also look at mortgage payments. We took today's rates and translated them into a mortgage payment for a 200k loan. We also translated rates from August 13th (2 weeks ago) and January 22 (6 months ago) into a mortgage for a 200k loan.

Aug 27
30-yr $1090.82
15-yr $1538.17
5-yr ARM $1033.67
1-yr ARM $1036.07

Aug 13
30-yr $1109.36
15-yr $1548.44
5-yr ARM $1043.29
1-yr ARM $1039.68

Jan 22
30-yr $1078.53
15-yr $1594.11
5-yr ARM $1049.33
1-yr ARM $1103.16

As we saw with mortgage rates the mortgage payments are relatively stable from 2 weeks ago.

So what do we expect over the next few months? As long as the economy stays down barring other developments in the financial sector mortgage rates should stay low. When the economy starts to rebound though mortgage rates are generally expected to start rising.

What is our advice to people considering getting a loan? Basically it's the same as it has been for the last few months. I would avoid getting a 5 or 1 year arm if at all possible. Since rates should be higher in the future it makes sense to lock into long term rates while they are low. It's also a good idea to start the loan process before starting your home search. We are still in one of the strictest lending environments we have seen in decades. Minor credit issues that were ignored before are stopping loans from going through today. Starting the loan process early on can give a potential borrower time to clear up any issues on their credit report.


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Ki has a comprehensive website focusing on Austin Tx real estate. Buyers can use it to search the Austin MLS. It also provides a graph showing updated mortgage interest rates.

Source: http://www.articletrader.com ]]>