Handy Hint - Wax Removal

It is fun to have festive candles burning during these dark winter months. However the wax spills on hardwood floors and oak built-in buffet—not so much fun! Shari learned some great ways to get rid of the unwanted wax. For the wood surfaces use a blow dryer to heat up the wax and then carefully soak/wipe up the wax with a paper towel. Shari recommends testing it out in a small area before doing larger areas. For the decorative cloth on the buffet: place brown paper bags over and under the cloth and then iron it on a low setting. The wax will soak into the paper bags. Shift the bag when a portion becomes saturated to soak up more wax. Unfortunately Shari learned that those wax drops you don't find for a few weeks (the ones hanging out on hardwood floors under the dining room table) are much harder to get up - so search high and low when the was is overflowing.

Send us your handy hint for posting consideration.

Market Activity Report - Jan 28

From The Minneapolis Area Association of Realtors:

With cold weather, high winds and relatively low consumer confidence, the Twin Cities housing market continues to experience low levels of buyer activity in January. Newly signed purchase agreements (pending sales) posted 485 units sold for the week ending January 19, a decline of 19.4 percent from this time last year. For the same time period comparison, new listings held relatively steady, posting 1,877 new units on the market. Roughly half of these are re-lists that have already been placed on the market at least once in the last 12 months.

For a closer look at how our changing market is affecting your specific community, take a look at "The 100," our localized market research tool. It offers free monthly market updates for 125 unique locales within the Twin Cities market. Year-end 2007 numbers are now available for each of these areas.

Interest Rates Creep up....

The interest rates on mortgages have been on a little roller coaster this week with a low of 5.375%. Right now they are climbing up a bit. They remain in the phenomenal range.

Fixed Conforming

30 Year - 5.625%
20 Year - 5.5%
15 Year - 5.0%

FHA/VA

FHA 30 Year Fixed - 5.5%
VA 30 Year Fixed - 5.5%

January Contest Winner

Congratulations to our January contest winner Tricia Wegner-Koense. Tricia is the proud new owner of a Caribou Coffee Card. Don't spend it all on one coffee!

Market Activity Report

From the Minneapolis Area Association of Realtors:

"Plus ça change, plus c'est la même chose." – Alphonse Karr, French novelist

With the arrival of 2008, the Twin Cities housing market remained in its 2007-end holding pattern. Purchase agreements were lower and new listings held steady. For the week ending January 12, there were 4.8 percent fewer new listings on the market compared to last year at this time, while pending sales declined by 24.0 percent for the same time period. The total number of homes for sale in the region is beginning it's annual new year ascent, with 27,931 housing units on the market—up 12.2 percent from the same time last year.

This week's edition of the MAAR Weekly Market Activity Report features an updated January 2008 figure for the Months Supply of Inventory. The figure declined sharply to 8.3 months, as it usually does at the beginning of the year following the holiday inventory drop. The figure is 42.4 percent above this time last year.

For a full, detailed look at how changing supply-demand dynamics are affecting various price ranges and property types in our regional housing market, take a look at our new January 2008 Housing Supply Outlook.

Wahoo - Another Rate Drop!

Mortgage Interest rates came down today after the Fed Fund rate being slashed by .75 points. Hmmmm I wonder where people got the crazy idea that the fed fund rate and mortgage interest rates were connected? Everything is connected, right? In an case - the rates came down today and I suspect they will come down some more. I will go out on a limb and predict that they will go to 5% before the end of February. Here is what they are today:

Conventional Fixed

30 Year - 5.375%
20 Year - 5.375%
15 Year - 4.875%

FHA/VA

FHA 30 Year - 5.375%
VA 30 Year - 5.375%

Does the Federal Funds Rate Effect Mortgage Rates?

There has been a lot of talk recently anticipating that the Federal Funds rate will drop soon. Folks often think that the Federal Funds rate has a direct effect on mortgage interest rates. I asked Pat Gleason at Wells Fargo Home Mortgage to shed some light on the subject. She supplied me with the following information:

Does the Federal Funds Rate Affect Mortgage Rates? The short answer: No.
This graph contrasts the movements of the weekly average Federal Funds rate against the movements of the weekly 10-year Treasury Constant Maturity and those of the average 30-year fixed rate mortgage and 5/1 Hybrid ARM. It covers the period from November 2004 through October 2007.

Sources: Federal Reserve, HSH Associates.
For more about Fed Funds, mortgage and other loan rates, click here.
HSH grants permission to utilize this graph providing that the graph and its contents are not altered in any way.

January Contest

Mortgage Rates Come Down Again!

Thanks to Jody Hippen for supplying these great rates from Burnet Home Loans! Call Jody at 612-827-9451 with any questions.

Conventional Fixed

30 Year - 5.5%
20 Year - 5.5%
15 Year - 5%

FHA/VA Fixed

30 Year FHA - 5.375%
30 Year VA - 5.375%

Interest Rates Conitnue Their Decent

Hallelujah! Rates nudge down again. My phone is starting to ring as buyers catch on that now is an amazing time to be buying. Tell your friends!

Conventional Fixed

30 Year - 5.625%
20 Year - 5.625%
15 Year - 5.125%

VA/FHA

30 Year Fixed FHA - 5.5%
30 Year Fixed VA - 5.5%

ARMS?

FORGET ABOUT IT!!!!

The Ice Dam Cometh!

As winter once again descends upon us, it is the perfect time to evaluate our homes for energy efficiency. If you see large icicles or areas of ice near the eaves it could be an indication that ice dams are forming. Ice dams occur when heat from your home rises through the attic insulation and melts the snow on your roof. The snow melt runs down the roof and re-freezes at the roof edge. A small amount of this is not a problem. If the wrong combination of snow and cold combine with excessive heat loss you may experience melting snow backing up under the shingles and coming into your house. This can cause serious damage to your walls, ceilings and furnishings. Ice dams need not be a permanent affliction. You can lessen their impact with roof cables or eliminate them with proper attic insulation and ventilation. Whether you have ice dams or not, all homeowners should have an energy audit performed to determine a cost effective strategy of energy saving improvements. Making improvements can save you money summer and winter. Energy audits can be scheduled through XCEL ENERGY at (800-244-1111). The cost of an audit is currently $35. There are also many energy saving tips available at their web site (xcelenergy .com).
It is important to remember that the use of salt to melt ice on steps and sidewalks will cause damage to your concrete surfaces. Using sidewalk grit like “quartzite” will provide traction without damaging your concrete. If you have wood floors make sure your guests remove their shoes upon entering to prevent floor damage. Make sure your home has a working smoke detector on every floor including the basement. A carbon monoxide detector should be mandatory safety equipment in every household. If you already own a carbon monoxide detector be sure to replace the module every 5 years to insure its safe operation. HAVE A SAFETY CHECK AND TUNE-UP PERFORMED ON YOUR GAS HEATING APLIANCES ONCE A YEAR! Have a wonderful and safe winter.

Thanks to our good friend Alan J. Copia, Cornerstone Inspections

Reprinted from January 2004 newsletter

Market Activity Report

From the Minneapolis Area Association of Realtors:

Activity in the Twin Cities housing market saw a Valley Fair-esque drop
for the week ending December 29, compared to the week before.
Blame Santa Claus. New listings, pending sales and total inventory all
fell at least several hundred units as Twin Citizens focused on
celebrating the holiday season during the 12th snowiest December on
record. Due to the unique weather and the vagaries of the Christmas
holiday, little meaningful context can be gleaned from the decreased
numbers.
However, we can utilize some updated figures for several key market
measurements in this week's edition of the MAAR Weekly Market
Activity Report. The Days on Market Before Sale increased to 158.
Although this is higher than December 2006 by 4.6 percent, the figure
will likely start to decrease as 2008 begins and the holiday season
ends. The Percent of Original List Price Received at Sale fell slightly to
91.2 as buyers exerted their seasonal power during the slow
December sales month. And our Supply-Demand Ratio for January fell
to 10.46, which means there will be roughly 10.46 buyers for each
house for sale in January.

Mortgage Rates Tumble

Wow! Check out these great rates from Burnet Home Loans:

Conventional Fixed
30 Year 5.750%
20 Year 5.625%
15 Year 5.125%

FHA / VA 30 Year
FHA 5.5%
VA 5.5%

Happy New Year!!