Focal Point

FHA MIP going up in 8 days

2010-03-23T11:58:00.001-05:00

That's right, in just 8 short business days FHA is increasing the mortgage insurance premium from 1.75% to 2.25%. Although this premium is typically financed into the loan, it wil impact overall monthly mortgage payments due to the increased loan amount. The next shoe to drop from FHA could be an incease in down payments to 5.0%, so now is the time to get an FHA loan with 3.5% down if you are going to be buying a home this Spring or Summer.

USDA money running dry

2010-03-10T22:22:00.001-06:00

Today USDA sent out a memo to Texas lenders stating that they anticipate running out of money by the end of April. There is no mention as to when they forsee getting refunded. USDA financing is one of the last, truly, 100% loan options available to buyers in less populated and somewhat rural areas. In Central Texas, these areas include parts of Pflugerville, Leander, Budha, and Bastrop.

- Posted using BlogPress from my iPhone

Last Chance for the $8,000 Tax Credit

2009-07-18T13:55:00.004-05:00

This may be your last chance to get the $8,000 Tax Credit!

If you are a first time home buyer or if you have not owned a home that you have lived in as your primary residence in the last 3 years, then you are running out of time to take advantage of FREE MONEY from the Federal Government.

I don't care if you don't have the down payment, I don't care if you are just getting out of school, and I don't care what excuse you have, it is $8,000 for free and and there are plenty of options when it comes to how you can get your down payment. If nothing else, buy a house where your monthly payment is the same as what you are paying for in rent. Just Do It! You don't even have to use me as your lender, although that would be nice.

Listen, I have a lot of friends and family that were holding out on refinancing until rates went down to 4.25%. Needless to say, they didn't and probably won't ever again. Rates are still low, but not likely to see the bottom which we experienced a few months ago. The point is, don't wait to see if the government renews the credit, don't hold out because they could raise the credit next year, take what you can get now and be happy that you got something for free (especially since you are paying for it anyway!). Anything that is being discussed right now is pure speculation and the guarantee is that you can be under contract by October of this year and still get the FREE $8,000 if you close before December 1st, 2009. Better yet, you can get the credit 6 to 8 weeks after you close. Get this, the State of Texas will even give you a $6,000 - $7,000 bridge loan that you can use for your down payment. All you have to do is pay it back when you get your $8,000 from the Federal Government.

For more information on this and any other great programs, call me today and I will be happy to share the knowledge with you!

Update - Personal & Business Related

2007-12-03T14:00:00.000-06:00

I apologize for not posting anything since August. I cannot believe how much time has passed since my last post. Moreover, I cannot believe the changes that have taken place since July, not only in my industry, but also in my personal life.

My wife and I have had our first child. She was born October 8th and her name is Mara Brandt. I am sure that anyone will understand, we are very proud parents and I am frankly shocked at how much love can be shared in our lives. In addition, I was pleasantly surprised to find out that I could love my wife even more than I had loved her previously. To say that I am a blessed man is an understatement.

With family life thriving and a new understanding of happiness in my personal life, I am back to work and excited about my business and the mortgage business in general. While the past few months have provided many challenges and changes, I have discovered that a few predictions that I made in the past are becoming reality. More specifically, the rise in foreclosure ratings across the country are largely due to defaults on sub prime mortgages that were given to borrowers with poor credit and adjusatble rate mortgages. Couple that with a decrease in property values, for some areas, that reinforces the fact that these buyers could not get out of the situation in which they put themselves in, most unknowingly. I do not wish to assert blame on the buyer solely or on lenders solely. I do wish to state that it is obviously a combination of the two.

The overall real estate market is slumping around the country and the effects are being felt everywhere. In Texas, sales are slower overall, prices remain strong, and in most metropolitan areas prices are still on the rise. Unemployment remains at all time lows with no immediate increase in sight. I think that the most relevant signs of what to expect for real estate to come can be seen from the lack of strength from the U.S. dollar coupled with rising prices, more specifically, "at the pump". These factors are looming very large over the entire economy and will remain a consistent nemesis for the housing market.

On the bright side, real estate in "on sale". You don't need to wait for the after-Christmas sales or New Years sales, in most markets sellers are discounting prices to get out of their homes quickly. Moreover, banks are looking to cut their losses now with hopes to regain profits in late 2008 or early 2009. Now are the times when savvy investors begin to scoop up valuable real estate.

Perhaps a more hidden effect of the "market crunch" is the ability for future homeowners to afford their homes. Lenders are strengthening their guidelines and in nearly all cases, buyers are required to have good credit scores along with some form of a down payment. While some potential homeowners will not qualify as easily as they may have a year ago, it will provide an overall strengthening for future housing markets. Let's face it, we do not want our neighbors to face foreclosure, it will diminish the price of our homes. We do not want neighbors who cannot afford to fix their roofs, or repaint their houses. We would all like neighbors that are responsible, thoughtful, and overall a low risk in all facets of their lives. This creates a sense of goodwill and stability and affords us all the best opportunities. The tightening of standards in my industry is long overdue and is desperately needed. With that being said, I want to thank to those sleazy sub prime lenders, it appears their efforts have paved the way for a better mortgage industry.

Mortgage Industry in Chaos

2007-08-07T15:36:00.000-05:00

It has been a few months since my last entry and frankly, there has been more news about my business than I can keep up with. The subprime market has blown up and has all but disappeared, Fannie Mae has restricted its' credit guidelines on their loan offerings, and just today it was announced that Jumbo lenders have increased their base rate for Jumbo loans(those over $417,000) from around 6.875% to 8%. This will shrink up the high dollar home market for the time being, and worst yet, this will happen throughout the entire country, not isolated to those areas with higher foreclosure rates.

What does this mean for the typical buyer?

Not much, the one thing that will hamper the ability of most buyers is the tightening of credit standards by Fannie Mae. If you have border line credit or if you cannot meet normal income requirements, then it has become much more difficult to get a loan. Also, the loan that was created for self-employed individuals, referred to as a "stated income" loan, has practically disappeared. The only loans that have not seen any recent changes or adjustments are the very standard FHA and VA loans. Perhaps the government has proven smarter than most major lending institutions. FHA and VA loans have rarely made any changes to their loan guidelines and when changes do occur, they are typically minor and do not affect the overall credit worthiness of a borrower's qualifications.

In conclusion, keep an ear open and stay focused on the broader economy as these changes will certainly have an impact and will create a ripple affect to the overall economy. If nothing else, these changes will change the overall consumer confidence level. Look for rates to rise across the board and keep an eye out for the Fed's next move. Although they have done nothing to curb the housing woes of late, it just might be the right time now.

What Mayor Winn Knows

2007-04-24T10:57:00.000-05:00

The Mayor produced some interesting tidbits about Austin that I thought I would share with you. These are in no particular order.

1. Austin now has 715,000 people and is the 16th largest city in the US.
2. Currently our population is 50% bigger than Atlanta which is the 43rd biggest city.
3. Austin is the youngest big city in the US per capita with 90,000 total college and university students. Over 50,000 at The University of Texas, 33,000 at Austin Community College and the rest spread among the remaining institutions of higher learning.
4. Austin land mass comprises 280 square miles.
5. Austin ranks as the safest big city in the US. In 2006 we had 19 murders. By comparison in 2006 Seattle had 125 murders. In the 1970s when Austin was one third the population it now has we averaged 50 murders a year.
6. 70% of the city's $600 million dollar budget is spent on police, fire and emergency services.
7. Austin is the fastest growing big city in the US. In 1990 were ranked 27th largest city. In 2006 we are ranked 16th.
8. For the past eleven decades --- since 1895 --- Austin has grown EACH year by 3.5% population.
9. That means every 20 years Austin has doubled in population.
10. Mayor Winn sees that as the forecast for our future. A steady 3.5% population growth and that we will once again double in size over the next 20 years.
11. In 2006 we added over 25,000 new jobs.
12. In 2006 the sales tax revenue was up 12% and hotel occupancy was up 25%.
13. Every day 85 new residents are added to Austin. This includes new people moving to town ---- and births / deaths.
14. That equates to 70 more cars on the road each day.
15. Texas is the fastest growing State in the US. Texas adds 500,000 people to the State each year. Austin is the fastest growing city in the fastest growing State in the US. Austin is a very economically attractive location and environment.

16. To manage this growth the Mayor says we need to better manage three things:
A. existing road ways
B. mass transit
C. land use patterns

He sites the new Domain and Mueller Airport projects as the way to better use land patterns. In these projects people will be able to LIVE, WORK, SHOP and EAT ---- without driving. The Mayor believes we will see more projects like this in other areas of the city. In the next few years he sees the same thing happening to the 8,000 acre Robinson Ranch. The Robinson Ranch has been purchased for development. It is the land that surrounds Abbot Labs off of the Loop 1 Toll way. By creating mixed use high density developments that allow people to LIVE, WORK, SHOP, EAT and PLAY close to home ---- he feels the congestion on our roadways will be greatly helped.

Subprime Market Implodes

2007-03-30T21:41:00.000-05:00

Are you curious about all of the press that the sub prime mortgage industry has received lately? Well if you are not, you should be. There are changes coming that will impact nearly everyone at some point.

Most of us in the real estate industry have been expecting this debacle, but there are not too many insiders who know what to expect next. The results may become easily predictable if we take a look at similar scenarios in the past. We can expect to see the mortgage industry face the same sort of legislation and government control as the banking industry experienced after the Savings & Loan bust just a few short years ago. That's right, the government will regulate our industry a little more and those companies performing well will feel pressure to tighten guidelines and further make it difficult for people to qualify for mortgages.

Most would say that this constriction is good and well deserved. I would agree for the most part, but I also feel that this will negatively affect some borrowers unintentionally. There will be borrowers who will not qualify for homes under the new restrictions when their current credit profile is stronger than thousands who bought homes within the last ten years. There will far fewer financing options available for self-employed borrowers, and for those hoping for an easier loan process with less paperwork, forget about it.

The winds of change are blowing strong, let's hope they don't blow down the entire real estate market.

It's a Low, Low, Low-Rate World

2007-02-20T13:54:00.000-06:00

Any wonder why long-term interest rates have not risen in light of all the interest rate hikes from the Federal Reserve and the improving stabilization of our economy? I have thought about it and never really came up with an answer that would hold up to debate. After reading an article in Business Week, the answer came to light. Money is still cheap because information is much more readily available in today's economic world. Basically, we can gain more knowledge faster than we could have in years past. Technical data is easier to analyze and risks are easier to assess in today's technology driven world. With this increase in efficiency for markets, investors have learned to anaylze their risks much fater and have seemed to notice that there is less risk than once thought in most areas of investing. This means that money has become relatively cheap for borrowers. Thus, we are able to borrower more at lower rates than in years past when long term ineterst rates had similar adjustments.

It also appears that the U.S. is not the only country experiencing this phenomenon. Euro bonds have realized a simliar path in recent years. Despite a fatser growing economy in the Euro regions, real rates have not risen much above the levels seen in 2003.

What does this all mean? Interest rates will not likely rise as fast as they have in the past. Even if there remains pressure for long term rates to rise, the likelihood of any sudden or large rise is unlikely. The only sign of an abrupt change would be dramatic changes in energy costs and the ever dreaded impact of China's huge population as China becomes more industrialized. Energy is somewhat predictable and we have seen resiliency through past abrupt energy changes. However, the toll that China places on the global economy is much harder tp predict and likely to lead to more volatility.

To read this great article and learn more about the future of rates, check out this link to the story: http://www.businessweek.com/magazine/content/07_08/b4022001.htm

Who Bought, Who Sold?

2007-01-29T15:12:00.000-06:00

Texasrealtors.com released housing data which was reported in the latest addition of RECON from Texas A&M University's Real Estate Center. The data shows inetersting numbers regarding the ever chaging demographics of home owners in Texas. Here's how they shake out.

Last year, first-time homebuyers, with a median age of 33, accounted for 35 percent of existing homes purchased statewide, according to the National Association of Realtors' (NAR) 2006 Profile of Home Buyers and Sellers, Texas Report.

The median income for first-timers was $62,700, about 7 percent higher than the national average. All first-time homebuyers financed their purchases compared to 98 percent of repeat buyers. Almost half of all buyers believe their home purchases are better investments than stocks.

Most homebuyers were married couples (68 percent), with single females purchasing a whopping 20 percent compared to single males (5 percent). Detached single-family homes accounted for 86 percent of homes sold. The typical buyer planned to live in the home an average of eight years. Most buyers bought their homes about 18 miles from their previous residences.

About 87 percent of buyers searched for their homes with the help of real estate professionals, with 79 percent purchasing through real estate agents. Of those purchasing through an agent, 79 percent reported they were “very satisfied” with the honesty and integrity of their agents.

The seller’s median age was 46 years with an average household income of $89,500. Married home sellers accounted for 73 percent of sales, and 49 percent had no children younger than 18 living at home. Eighty-six percent used agents or brokers to sell their homes, with 67 percent very satisfied with the selling process. Average days on market was six weeks, with more than half of sellers receiving their asking prices.

Austin Home Sales Up Unemployment Down

2007-01-23T16:58:00.000-06:00

The numbers are out for 2006 and they read very well. There was a 10 percent increase in full-year sales volume over 2005. According to the MLS, a total of 26,958 homes were sold last year. Meanwhile the median home price rose six percent to $174,500. That same median price rose to $177,500 in the month of December 2006. Also, single-family property sales contributed $6.3 billion to the local economy in 2006, this was a 20 percent increase over 2005. In addition, there was a drop in the average time it took a home to sell in 2006. Homes sat on the market on average 63 days during the year. This represents the lowest time span over the past four years. The data also points out that sales were particularly strong in areas that border Hays & Williamson counties. Experts claim that these strong numbers once again show that Austin's competitive costs as well as high quality of living are the keys to our sustained growth pattern. Look for 2007 to keep pace with 2006 while the national market continues to slow.

As far as unemployment, Texas' unemployment rate is down almost 1 percent from 2005. The current unemployment rate is the lowest in 5 years and matches the U.S. seasonally adjusted unemployment rate of 4.5 percent. Texas added 15,600 new jobs in December of 2006. That accounts for 213,200 new jobs for all of 2006 with a growth rate of 2.2 percent.

Texas employers have added new jobs for 27 consecutive months, according to the state.

This information is evidence of why the housing market for Texas has remained steady compared to the recent declines nationally. If employers continue to display confidence by adding jobs, then look for the 2007 housing market to remain strong and continue a steady growth pattern.

Real Estate Market Forecast for 2007

2007-01-12T13:59:00.000-06:00

It's that time of year again...time to start looking forward to high expectations and continued growth in the real estate business for 2007. More importantly, the Central Texas real estate market. While the rest of nations economy slowed down in 2006, Texas as a whole continued a moderate, but strong rate of growth. This was due in large part to the declining unemployment rate and improved growth of the commercial real estate markets throughout Texas.

Commercial construction helped to increase employment and also provided income to business in and around Texas. The rate of commercial construction does not appear to be slowing for 2007. In fact, current projections show that more commercial construction is slated for 2007. The main focus will be a rise in construction costs over the next year. If costs continue to rise in line with the rest of the nation, then there is a likelihood construction will slow. Until then, it's "full steam ahead".

Jobs played an important role, as usual, in the overall real estate market for 2006. Because there were more Texans working, there were more Texans buying homes. For 2007 the job market will look to remain strong and continue driving the economy as a whole. If costs can remain low for businesses, and if profits can remain healthy, then the job market will continue its' modest pace and thus the housing market will remain fluid and robust.

Finally, 2006 saw a pause in interest rate hikes by The Federal Reserve Board. This was great news for mortgage interests rates. Mortgage rates fluctuated quite a bit in 2006, but they never proved to be an issue for new home buyers. For 2007, look for interest to stabelize even more. The consensus right now is that the Federal Reserve will not make any moves for the first quarter of 2007. The Fed is closely watching inflation and right now it appears that the nations unemployment rate in 2007 will tick slightly higher as the economy as a whole cools. Barring any unexpected rises in prices due to energy costs or other variables, the rate of inflation should gradually lower to The Fed's comfort level of between 1 and 2%.

Overall, the signs point to a moderate but sustainable growth in the Central Texas real estate makret. We are in a unique position in that Texas is not feeling the "pinch" economically that the rest of the nation has and will continue to experience in 2007. Better yet, we benefit greatly from that "pinch". The national economic outlook effects interest rates and thus gives Texas homebuyers a premium when it comes to purchasing a new home. We can continue to afford homes as long as our economy continues to produce new jobs and interest rates remain low. Once again, 2007 should provide Texans a continued opportunity for home affordabilty.

Stay Strong & Best of Luck in 2007 !

Austin Invests in its Local Businesses!

2007-01-05T15:17:00.000-06:00

Article by: Neil Takemot posted Dec. 28th on Cool Town Studios Website

A local institution on Congress Avenue in Austin, Texas, Las Manitas, a Mexican restaurant and crowd favorites, must say goodbye after 25 years. It's lease was up, and the building owner already signed a new one with Marriott. However, Austin's city government isn't your typical city government, and its leaders proposed to do something about it.

They're proposing the Congress Avenue Retail Retention and Enhancement Fund to invest in the kinds of businesses they feel reflect the local culture and character of Austin. This is no obligatory facade improvement or forgivable loan program totaling a few hundred thousand, the equivalent of a needle in a haystack. Based on development fees, three pending projects alone on Congress, including the hotel complex, could generate $1 million or more in fees.
In other words, the City of Austin is proposing to significantly invest in its local businesses, something completely supported by residents, but rarely executed. That's the wow factor. Can you think of any City contributing such amounts to preserve and attract indie businesses? Hopefully the answer is yes, and please do tell.

As far as Las Manitas, which inspired the Fund, the program's leaders are looking at helping the owners open its doors down the same street in a historic building. The restauranteurs own the building, but the City is looking to assist with the hundreds of thousands required to renovate it.

The FED Leaves Interest Rates Alone

2006-12-15T14:39:00.000-06:00

FT.com - The core consumer price index was flat, defying expectations of a sharp rise following an increase of 0.1 per cent in October. The easing price pressures will be welcomed by the Federal Reserve, which is concerned about the risk to the US economy from higher inflation next year. The clear sign of cooling inflation takes the pressure off the Fed to consider intervening in credit markets. The easing is likely to shift the emphasis of debate within the Fed slightly more towards the risks of a slowdown in growth. The Fed expects moderate economic growth in the coming months as consumer demand continues to support the economy despite a slowdown in the housing and auto sectors. The three-month trend for inflation was also benign, as the annualized core CPI - which excludes volatile food and energy prices -fell below 2 per cent for the first time in a year to a rate of 1.6 per cent.
The three-month trend for headline inflation was the most muted in five years and suggests price pressures are cooling following an overall easing in energy prices in recent months.

Many economists beleive that this is the type of information which will guide the Fed to cut rates by .25% in Spring of 2007. Keep an eye out for the next Fed meeting to see if the laguage starts to change. This is the indicator that investors will be looking at to determine their next moves.

2007 Mortgage Insurance May Become Tax Deductible

2006-12-14T11:42:00.000-06:00

Mortgage Insurance Tax Deduction (National Association of Texas Mortgage Bankers) -

Finally Congress does something this year to help property owners. Starting in 2007, the mortgage insurance that one pays on their mortgage loan will be a line item tax deduction. Clarification regarding the new law is below.

The 109th Congress closed its session late last week by passing a tax reform bill, which included a new provision that will provide a significant benefit to your consumers in 2007. H.R. 6111 introduces a new, one-year, itemized tax deduction for mortgage insurance premiums. This new legislation will allow taxpayers who itemize their deductions to take an additional deduction for mortgage insurance premiums paid after December 31, 2006.

Section 163(h)(3) of the Internal Revenue Code allows taxpayers to take a deduction for interest paid on acquisition or home equity indebtedness on the taxpayer’s qualified residence. H.R. 6111 amends Section 163(h)(3) to include language that allows taxpayers to treat mortgage insurance premiums as interest during the 2007 tax year. This treatment only applies to mortgage insurance contracts issued between January 1, 2007 and December 31, 2007, and is only available to taxpayers with an adjusted gross income of less than $110,000.

H.R. 6111 passed the House 367-45 and the Senate 79-9, and now awaits the President’s signature. The text of this bill is currently not available. Once the full text is released, NAMB will feature it in a future edition of News from NAMB.

If you have any questions, please contact: GovernmentAffairs@namb.org.

October 2006 Sizzles

2006-11-28T14:39:00.000-06:00

AUSTIN (Austin American-Statesman, inman.com) – Central Texas’ housing market posted an October record for both single-family home sales and prices, as homes sold at the fastest pace ever for the month.

Although homes sold in October were on the market an average of 66 days compared with 58 days for homes sold in September, the Austin Board of Realtors’ latest Multiple Listing Service report said the number is still a record low for October.

In the South Austin area that includes neighborhoods such as Cherry Creek and Tanglewood Forest, active listings took about 18 days to sell.

Last month was the tenth consecutive month of year-over-year sales gains, with nearly 2,075 single-family homes sold, up 8 percent from the approximately 1,920 sales last year. October’s median price set a monthly record at $175,000, an increase of 9 percent from approximately $160,500 posted a year ago.

The number of new listings jumped 12 percent during the period to almost 3,075. The nearly 7,950 active listings at the end of October, although down from September, were up 4 percent from a year ago. Pending sales were up 19 percent to more than 2,400.

There are fewer homes selling for under $120,000 so far this year, down 6 percent or more compared with the same period a year earlier. Home sales in the $200,000 to $249,000 price range, however, are up 18 percent.

Austin's real estate market remains hot with no signs of cooling off. Looking at the Southwest Market it is easy to see how commercial leasing rates effect housing prices and availability. The Southwest market has seen a steady increase in commercial leasing rates in 2006 and the October results show the impact on that particular housing sector.

Ice Cream Special

2006-11-14T17:22:00.000-06:00

I found out something interesting today. During the winter months, Baskin Robbins offers $1 scoop nights on Tuesday nights between 6:00-10:00p.m. Baskin Robbins is a franchise and each store is independently operated, so not all stores may participate in this program. However, if you call a store near you, my hunch is that they will honor your request and offer you $1 scoops of ice cream. In my opinion, it's a great deal. That's nearly 1/2 off a typical scoop of ice cream. Anyway, use the information for what its worth and remember it's o.k. to have an occasional scoop of ice cream.

"Best Little City in America"

2006-11-03T17:16:00.000-06:00

If you think this was said about Austin, Texas, then you would be right. National Geographic Traveler touts Austin as the "Best Little City in America" in its November/December 2006 edition. In its highlights of Austin, National Geographic lists diverse population, endless music, eclectic shopping and regional cuisine as defining factors for its rating. I have to admit, Our BBQ and Mexican food joints are some of the best that I've experienced. This isn't the only National publication to discuss Austin.

In the November issue of Travel & Leisure en Espanol, the magazine names Austin "the secret jewel." The main focus of this article was on our Live Music as the unequivocal difference. Again, I have to agree. Where else can you go to an airport or a local supermarket to hear live music? With over 150 venues for live music, it is hard to find another city that can say, "We are the Live Music Capital of the world."

That's not all, in December's issue of Conde Nast Traveler, Austin will be featured in an article by Graham Boyton, a London based editor of the magazine. He will tell of his experience of South by Southwest and why he feels Austin is a great city to visit.

I must admit, I think Austin is a wonderful city and sometimes I take it for granted. When I hear the National Press rave about my city, I get that "Austin Proud" sense about me and I want to go out and experience more of this city. Not only do we have wonderful hotspots, restaurants, and live music venues, but we have great people and an outdoor environment that rivals some of the greatest cities in America. My perfect weekend: float the river, listen to Willie, endulge at Hula Hut and soak up all that is "Austin".

Interest Rate News

2006-11-02T14:21:00.000-06:00

My, how a week makes a difference! Mortgage interest rates are nearing a low for the year. 30 year fixed rate loans are yet again below 6%. While tomorrow is a big day for economic news with the Jobs report due, investors have been very attracted to mortgage backed bonds over the past 4 days. This has led to a brief dip in mortgage interest rate bringing the 30 year fixed rate conventional mortgage below 6%. The big question remains; Will this continue?

The answer is, it is too early to tell for sure where mortgage bonds will find their comfort range. It appears that bonds are feeling both buying and selling pressure. The pressure to the buy side is that the national economy is showing signs of cooling and there is much anticipation that inflation can be held in check. The pressure to the sell side is that the economy has made a soft landing and there will likely be a run up coming in early 2007 which would once again raise major worries on the inflationary outlook. Usually when this occurs, the Fed is quick to act by raising short-term rates.

I get the feeling that all will rest upon the pending holiday sales season. If the economy is moving along at a moderate clip and retailers show profits compared to last year then we can anticipate that the economy is prospering moderately and inflation can be held in check. This would be great news for mortgage rates. Otherwise, all of the gains in the bond market could be given back with interest. This would ultimately cause rates to move higher and this reaction would be quick.

Bottom line, keep your eyes on inflation and jobs. Check this site for more upcoming information, and if you are on the fence about buying a house, jump now, the window may be closing after December!

Oct. 25th FED Meeting

2006-10-26T13:00:00.000-05:00

As expected, the FED held the Federal Funds rate unchanged at 5.25% for the third time in a row. The FED's seemingly lack of tough discussions on inflation has spurred confidence in the bond market that the FED will continue to leave rates untouched for some time to come. While inflation is the most heavily weighted measure of economic stability, there is growing confidence that past rate hikes will continue to add pressure to the latest inflationary numbers and hopes that inflation will fall to a more comfortable target of 2-3% over the coming months.

What does this mean for mortgage interest rates?

If investors feel that the FED will leave rates unchanged and inflation can be held in check, then mortgage backed bonds will continue to be attractive. Thus, mortgage interest rates in the near term will remain level if not see a small drop. Housing sales will remain strong while some areas in the country will continue to see a decline in housing prices. Lower rates and cheaper housing is a good recipe for continued strength in the housing market.

How does this apply to Austin?

Housing prices in Austin have not seen the recent declines that the rest of the country is experiencing. Our market continues to see a rise in sales and thus in prices. However, lower interest rates will continue to impact sales regardless of the rising prices. If interest rates decline over the next few weeks there will be an increasing opportunity for buyers to pull the trigger. Nonetheless, there appears to be no end in sight for the booming housing market for Austin.

Austin Housing - Hot, Hot, Hot

2006-10-24T10:49:00.000-05:00

The Austin housing market is still sizzling! According to the Austin Board of Realtors (ABOR), the housing slump affecting the rest of the country is not having an impact on Austin.

In September home sales reached 2,300 for the month. This is a 3% increase from the previous year and a new record for the month of September.

Active single-family listings reached 8,203 which are 5% higher from 2005. There was inversely a drop in the average time that it takes a house to sell. In September, the average time a house was on the market was 58 days; this is a 15% drop from previous months. This is the shortest amount of time single-family listings have waited to sell since September 2001, when the average was 46 days, according to ABOR.

Remarkably, the housing market in Austin and in much of Texas has not had its proverbial "bubble" popped. Regardless of the seemingly negative news regarding the housing market, Austin's has remained robust. With the increase in employment and continuing strength in the commercial sector, this trend is likely to continue into 2007.

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Austin Employment Information

2006-10-23T15:01:00.000-05:00

In an artcile released Friday, October 20th, the Austin Business Journal reports that the Austin/Round Rock area unemployment rate has dipped to 3.8%. That is down from the August unemployment rate of 4.2%. In September of 2005, the unemployment rate was 4.3%. In looking at total jobs created, Austin gained 3,800 non-agricultural jobs in September. From September 2005 through September 2006, a total of 18,500 non-agricultural jobs have been created. This is an increase of 2.7% in 12 months.

This is great news for the Austin/ Round Rock economy, and more particular, the housing market. As I have said before, housing directly correlates with jobs. The more people that are working, the more housing that is needed by those workers. If this trend continues, we can look forward to a healthy local economy and a continuing strong housing market.

Austin Housing Update

2006-10-17T13:12:00.000-05:00

It appears that the Austin housing market is strong compared to the rest of the Country!

This is mainly due to the fact that Austin is a relatively young metropolis and large companies are continuing to see Austin as a great city to invest in. A sure sign that points to a continuing housing boom is seen in the commercial real estate market, where rents continue to rise, and the office space once left empty from High Tech companies is being filled by other large and mid sized companies. Where there are companies investing in office space, there are new jobs, which relates to a need for housing. If this continues, we should see prices that continue to rise modestly and a housing market that will likely remain strong.

Young Austin Real Estate Professionals

2006-10-11T17:26:00.000-05:00

YAREP

I am pleased to announce that efforts are underway for the formation of an Austin Real Estate group called Young Austin Real Estate Professionals. The purpose of the group is to gather real estate professionals and industry insiders on a regular basis to share ideas and enjoy social events. We feel that it is very important that professionals get together to discuss their business, share ideas, and help each other succeed.

YAREP is being formed by Michael Brandt, Cody Daniel, John Segrest, and Leslie Brvenik. We will be announcing our first social event in the coming weeks and will also start a dedicated website for the group. Be on the lookout for further details.

Sincerely,
Michael Brandt

Welcome!

2006-10-11T16:03:00.000-05:00

Welcome to my new blog. Over the coming days and months I intend to fill my blog with information relevant to the Austin Housing market and the mortgage industry. Keep your eyes posted and always feel free to provide your own topics of interest.

Sincerely,
Michael Brandt