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Straight Stats

Mortgage interest rates were generally flat on the week despite high intraweek volatility on continued uncertainty surrounding European sovereign debt issues. At this point, it appears that Greece will receive aid to avoid default on its sovereign debt on October 13. Globally, there is more talk of the world economy falling back into recession. China reported that its manufacturing sector shrank for a third straight month, its longest contraction since 2009. German sales fell the most in more than four years and industrial production in Japan grew less than expected. U.S. economic data was mixed. Weekly jobless claims, the final look at Q2 GDP, Pending Home Sales, the Chicago Purchasing Managers Index, and the University of Michigan Consumer Sentiment Index were better than expected. The September Consumer Confidence Index, August Durable Goods Orders, and August Personal Income were weaker than expected. Also of note, the Treasury auctioned $99 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes, which were met with strong demand from markets.

Commentary

Take a deep breath. Two. Un-clench your hands. Let loose your shoulders. Look out at a brilliant fall sky. Leaves. Breathe again, but for scent. Put this global financial political… whatever-it-is… put it down. Back away from it, and look at it from a long ways off. Domestic US growth is marginal, but not recession. New weekly unemployment claims are steady near 400,000, no new wave of layoffs. Purchase mortgage applications are too low to work off excess inventory, but they are stable. The Chicago Fed’s national index is a minus-43, below the long-term trend line at zero in their index but far above the minus-70 that would mark recession. Orders for durable goods were flat in August, but held the huge July gain. Flat and soggy, but hardly over the cliff that you’d think from listening to media, and especially people in financial markets. These are normally the Pollyannas of the airwaves: upon any devastating flood, nuclear accident, or outbreak of war, they’ve got a loopy grin and a new investment for you to buy.

Gale Boonstra, CPA, MBA, is a Senior Mortgage Consultant at Premier Lending Group in Boulder. Feel free to contact her at 303.302.3932 or gboonstra@pmglending.com.

1)  What distinctive features set this home apart?

2)  What are the advantages of the location and neighborhood?

3) Have there been any recent renovations or upgrades?

4) Does the community have any amenities we should know about?

5)  What amazing views will the new homeowner be able to enjoy?

6) What makes the price of this home so great?

7)  Anything else that makes the home special?

Mike Moger & Lew Kingdom

The Boulder Area Realtor Association (BARA) have announced Wright Kingdom agent Mike Moger as recipient of the Realtor of the Year Award for 2011. Mike previously served as President of BARA in 2010, and was recently elected the Vice President of the NorthEast District for the Colorado Association of Realtors.

“It’s nice to see Mike receive this special recognition for all of his years of service to the Boulder Area Realtor Association and to our real estate community.  It is well deserved.” says Mary Steele Senior VP of Wright Kingdom Real Estate.

Mike has been a leader in Boulder real estate for nearly twenty years. He is richly deserving of this prestigious award, and we couldn’t be happier for him. Congratulations Mike!

Straight Stats

Mortgage interest rates improved on the week on the Fed’s FOMC announcement of Operation Twist. With Operation Twist, the Fed will purchase $400 billion of Treasuries with remaining maturities of 6 years to 30 years and sell Treasuries with remaining securities of 3 years or less. The Fed also announced that it will reinvest principal payments from its holdings of agency debt and agency mortgage backed securities into agency mortgage backed securities to help support the mortgage markets. Furthermore, the Fed commented that there are “significant downside risks to the economic outlook, including strains in global financial markets.” On the week, the yield on the 10 year Treasury has fallen almost 30 basis points to its current 1.779% yield. Economic news of note included August Housing Starts, which were weaker than expected. August Building Permits and Existing Home Sales were better than expected.

Commentary

Financial markets seemed to react badly to the Fed’s announcement of two new but minor operations, net-neutral as to new money. Some say the Fed’s grim statement of risks did the damage; others claim it was the absence of a big policy move (more QE). There’s a lot more to this week than the Fed. The best case for Europe is a nasty recession — if austerity and unity prevail. If not, they’ll have a sharper-deeper affair in a scramble back to local currencies. Also, markets suddenly get the odds in favor of a new US recession. 10-year T-note to 1.75% from 2.07% in a week. Mortgages at yesterday’s low (up .125% now): if you are 670 Fico, low equity, 4.25%; if you are 800, 50% LTV, 3.875%. Whatever you are, if you don’t have a vanilla job, you ain’t nuthin’.

Gale Boonstra, CPA, MBA, is a Senior Mortgage Consultant at Premier Lending Group in Boulder. Feel free to contact her at 303.302.3932 or gboonstra@pmglending.com.

]]> http://realestateblogboulder.com/2011/09/26/wright-kingdom-awarded-best-of-boulder-county-2011/feed/ 0 http://realestateblogboulder.com/2011/09/19/weekly-mortgage-market-update-9-19-11/ http://realestateblogboulder.com/2011/09/19/weekly-mortgage-market-update-9-19-11/#comments Mon, 19 Sep 2011 18:03:45 +0000 Gale http://realestateblogboulder.com/?p=2028

Straight Stats

Mortgage interest rates increased on the week as the European Central Bank, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, announced that it will provide liquidity in the form of dollar loans to European banks to help them remain solvent. This has reversed some of the fight to quality trades into Treasuries, driving rates up slightly. Economic news was generally weaker than expected. August Retail Sales, July Business Inventories, weekly jobless claims, the New York Empire State Manufacturing Index, and the Philadelphia Fed Business Index were all weaker than expected. August Industrial Production and the University of Michigan Consumer Sentiment Index were slightly better than expected. The August Producer Price Index, a measure of wholesale prices, was in line with expectations. The August Consumer Price Index was slightly higher than expected, up 0.4% on expectations that it would be up 0.2%.

Commentary

This week is stumbling to an end, markets largely unchanged and I think exhausted at the sight of non-functioning government here and over there. 10-year T-notes did rise from all-time-bottom 1.90% to 2.10%, but either value is an emergency trade, and the rise did little to mortgages, still 4.125-4.25% and which three weeks ago stopped following the 10-year down. The economy is conjugating the verb, “to stall.” Stalling, stalled, will stall… the NFIB small biz index fell for the sixth-straight month, now back to recession levels. Industrial production rose a mighty 0.2% in August, and regional surveys found a slower rate of slowing. August retail sales were flat, precisely zero change. In modest good news, layoffs have stalled, too, no real change in newly unemployed.

Gale Boonstra, CPA, MBA, is a Senior Mortgage Consultant at Premier Lending Group in Boulder. Feel free to contact her at 303.302.3932 or gboonstra@pmglending.com.

It was a joy working with ICB. There were some cultural issues involved – the Muslim religion does not allow individuals to pay interest on loans – therefore we had to pay all cash, and the emphasis on consensus decision making made for an interesting transaction. Throughout the whole process ICB kept me informed and was upfront with me which allowed me to do my job.

For more information on Boulder real estate or Boulder County commercial real estate contact Eric Rutherford or Tom Hill.

Eric Rutherford

Tom Hill

]]> http://realestateblogboulder.com/2011/09/19/icb-moves-to-a-new-location/feed/ 0 http://realestateblogboulder.com/2011/09/14/featured-listing-4250-eutaw-drive-boulder-co/ http://realestateblogboulder.com/2011/09/14/featured-listing-4250-eutaw-drive-boulder-co/#comments Wed, 14 Sep 2011 23:11:33 +0000 Jeremiah http://realestateblogboulder.com/?p=1985 This week we are featuring a beautiful 2 story home in South Boulder. This gorgeous Frasier Meadows home has hardwood floors upstairs/downstairs, a finished daylight basement, and an outdoor hot tub. I asked Sibyl Liedtke to tell us more about this amazing property…

1)  What distinctive features set this home apart?

2)  What are the advantages of the location and neighborhood?

3) Have there been any recent renovations or upgrades?

4) Does the community have any amenities we should know about?

5)  What amazing views will the new homeowner be able to enjoy?

6)  What makes the price of this home so great?

7)  Anything else that makes the home special?

For more information visit the website for 4250 Eutaw Dr.

For more information on Boulder Real Estate or to schedule a showing contact Sibyl Liedtke.

Sibyl Liedtke

Straight Stats

Mortgage interest rates improved slightly on the week despite limited new economic data. Economic data of note included the August ISM Services Sector Index, which was slightly better than expected but indicated limited growth. Weekly jobless claims increased by 2k on expectations that they would fall by 9k. The July US Trade Balance showed a smaller deficit than expected and July Consumer Credit increased more than expected. European markets have been weak on renewed concerns that Greece will be unable to meet the conditions for more bailout funds to avoid default. Also, European Central Bank head Jean-Claude Trichet said that the economic outlook in Europe is not improving. President Obama proposed $450 billion in payroll tax cuts in a speech last evening to help stimulate our economy.

Commentary

The good news: US data are not double-dipping. The fresh, August survey of purchasing managers by the ISM found the service sector improved to 53.3 from 52.7 in July, a reading corresponding to GDP growth in the 2% range. This modest good news does not explain the stock market again in freefall today, nor the 10-year T-note thumping down to 1.90%. To explain the newest swan dive, look to Europe, and a tale of two speeches. Default by Greece is imminent. Again. Maybe this weekend. Maybe Europe will buy more time, maybe default will be an anticlimax, but markets today anticipate chaos. Then, the two speeches. Perfesser Bernanke spoke at midday Thursday. The whole speech was devoted to housing wreckage as the force intercepting recovery. No proposals for what we might do, of course, as that action is the province of the Administration and Congress. Three-and-a-half hours later Mr. Obama rose to deliver an energetic, tub-thumping speech. Content? Direct from the Boneless Chicken Ranch. The finished product: $447 billion of “job-creating” spending at the intellectual level of 1964. Old-fashioned, warmed-over pork.

Gale Boonstra, CPA, MBA, is a Senior Mortgage Consultant at Premier Lending Group in Boulder. Feel free to contact her at 303.302.3932 or gboonstra@pmglending.com.