Timely Economic Update

Licensed by the California Department of Corporations under the California ResidentialMortgage Lending Act Lin # 413‐0713  

Last Week:

A surprising sell-off in overseas markets triggered by Dubai debt concerns led to sharp losses in U.S. equity markets on Friday, wiping out the gains made earlier in the week.

What’s Ahead:

There are five pieces of economic news that may affect mortgage rates this week. There are relevant reports scheduled for release every day except for tomorrow, meaning it likely will be a fairly active week for mortgage rates. Even though there is no relevant data being posted tomorrow, we will still likely see a change in mortgage rates due to Friday’s market movements that came as a result of news from overseas-particularly Dubai. Many lenders were closed or on a skeleton staff Friday, so we should see those improvements reflected in tomorrow’s rates.

The Labor Department will post November’s Employment report early Friday morning. This is arguably the most important monthly report we see. It is comprised of many statistics and readings, but the most important ones are the unemployment rate, the number of news jobs added or lost during the month and average hourly earnings. Current forecasts call for no change in the unemployment rate of 10.2%, payrolls down approximately 114,000 and an increase of 0.2% in average earnings. An ideal scenario for mortgage shoppers would be a higher unemployment rate than 10.2%, a larger decline in jobs and no change in the earnings reading.

A Message from Jay Robertson | President of First Capital

 

 

 

 

 

 

 

MARKET BRIEF

 

 

 

 

 

 

 

November 30, 2009

 

 

 

Important Markets

 

 

 

 

Economic Update

 

 

 

 

(800) 957-0010

www.firstcapitalmtg.com

 

 

 

   

Home sales surged for the second month in a row in October, climbing to the highest level in 2 1/2 years as first-time buyers rushed to take advantage of an expiring tax credit.

Home sales nationwide are now up almost 36 percent from their bottom in January, data Monday showed, though they are still 16 percent below the peak in autumn 2005. At the current sales pace, there is only a seven-month supply of homes on the market, and some areas have bidding wars.

The National Association of Realtors said home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September. It was the biggest monthly increase in a decade and far above the 5.65 million pace expected by economists, according to Thomson Reuters.

Without adjusting for seasonal factors, sales were up 21 percent from a year earlier and were up in all four regions of the country. The gains were led by a 26 percent increase in the Midwest. Sales were up 25 percent in the Northeast, 23 percent in the South and 10 percent in the West.       

Remember to contact me with any of your thoughts, ideas, questions regarding our Real Estate Market in Los Angeles county.      

Home Sales at Highest Level in 2 ½ Years

Federal & California Home Buying Incentives You Want To Know About!

Buying a home is very attractive right now with the low, competitive interest rates – 5% – 6% (since they change daily, please check with your favorite lender or contact me for my favorite recommendations); lower home prices including foreclosures; and if that isn’t enough, check out the Federal &  State of California incentive programs.  NOTE:   When the monies allocated for these programs are gone…the program is gone, so be sure to check on the appropriate sites for updates.

If you’ve been thinking about buying your first home, or make your first home purchase since 3+ years ago…This is your year!  Interest rates are hovering 5% in many cases, and prices are down – the Federal government has a temporary tax credit available for sales completed Jan. 1, 2009 through the end of December 2009.  It is equal to 10% of  the purchase price, with a maximum credit of $8,000.  It’s important to note that there are guidelines for this program which you will find on their site.

The State of California wants you to focus on New Housing for their incentive program with a $10,000 possible tax credit on the purchase of a property never lived in.  Their money is going quickly – so if you are seriously considering taking advantage of this opportunity – follow their updates daily, and let me help you  find that new home!

Terms and guidelines for each of these programs are different,
so as always, be sure to seek the advice & confirmation of
the details from your tax/legal advisor.

If you would like to explore these programs or have a real estate need or interest, I can easily be found - I look forward to hearing from you and keeping in touch.

Remember, my business is based on your referrals,
which I greatly appreciate.

Federal Tax Credit

If you’ve been thinking about buying your first home, or make your first home purchase since 3+ years ago…This is your year!  With interest rates lower than 5% in many cases, and prices down – the Federal government has a temporary tax credit available for sales completed Jan. 1, 2009 through the end of December 2009.  It is equal to 10% of  the purchase price, with a maximum credit of $8,000.

 

Claim the credit on your federal tax return to reduce the tax liability or get a refund check if it exceeds your taxes owed.  It’s important to know that there are guidelines regarding your income…You are eligible for the full tax credit with an adjusted gross income up to $75,000 ($150,000 if filing jointly);  Up to $95,000, the tax credit is adjusted down and is not available if your income is over $95,000.

 

If  you stay in the home a minimum of three (3)  years the tax credit does not have to be repaid, however, if the home is sold prior to that, the full amount is due on the sale.

 

These terms apply to the Year 2009 Federal tax credit only and as always be sure to seek the advice & confirmation of these details from your tax/legal advisor.

 

Contact me to help you find the best home value and to explore the Tax Credit further.

 

Remember that my business is based on your referrals, which I greatly appreciate.