Week 3, February 2010
Well… there’s a bit of a storm brewing just barely beyond the horizon that you should be aware of if you’re buying or refinancing a home in the coming weeks. Since mortgage rates don’t typically wait around for market conditions to change I think it’s important for you all to know about two changes coming that are expected to affect the mortgage and housing markets. First, the program for buying mortgage-backed securities instituted by the Federal Reserve in January of 2009 will reach the end of its extension on March 31st of this year. What that means is a major source of demand for this particular security is scheduled to recede leaving the price to fall and the yields to rise— which to you and me usually equates to higher mortgage rates. It was originally set to expire at the end of December but was extended to the end of March to ease its impact on the housing market. Impossible to predict the real impact of this change, but it’s one to be aware of, for sure. Secondly, the $8,000 First-time Homebuyers Federal Tax Credit, which was modified to include a $6,500 tax credit for previous homeowners too, is set to expire at the end of April. The effect expected there? Slower home sales in May, June, and July, so they say. But “they” also say that it’s likely there could be another six month extension of that. We’ll keep an eye pealed. Bottom line is that there are some legitimate changes to market conditions coming quite soon, so it shouldn’t be surprising to see rates steadily tick upward for the coming weeks. That is, assuming all remains constant in a vacuum— which we all know isn’t how real life is anyway. So, we’ll just have to see how it all plays out. And as usual, I’ll keep you apprised of what I’m seeing.
See here for more about what market changes are expected soon.
To contact me about financing your dream-home click here.
Weekend Wanderer’s Events
…finding the treasures in your town and beyond.
Two for This Weekend:
2010 San Francisco Bluegrass and Old Time Festival: From their website: A nine-day festival occurring at various locations around the Bay Area, is in full swing. Featuring the most talented musicians on the Americana and roots music scene today, the Festival comprises over 30 shows at numerous small clubs around the Bay Area, welcoming more than 5,000 attendees each year.
Cynosure at Ryder Worth Gallery at UC Berkeley: Okay… the link for this one actually goes to the East Bay Express since the Berkeley Art Practice Department doesn’t quite have the online info for this posted for some reason. From the EB Express: A cynosure attracts all eyes, and this show at UC Berkeley Art Department’s gallery, subtitled “New Work from East Bay Galleries,” may be just that, showcasing thirty-something thirtyish emerging local artists selected by their galleries in consultation with curator AnuVikram. Last chance to see this is Saturday.
Help Your Fellow Living Beings:
FoundationForFreedom.org: Their mission: To promote literacy in impoverished communities around the world through primary education for children. We envision a world in which each and every child is literate regardless of geographic location or socioeconomic status. We believe that education is the foundation from which the destitute are empowered to achieve the self-determination needed to improve their lives and the lives of those in their community. Check ‘em out!
Two Weekends from Now:
Sacred Space: Joshua Redman Solo Sax Performance at Grace Cathedral: From their website: Redman occupies a special niche among the pantheon of SFJAZZ performers, having served as Artistic Director of the Spring Season for seven years. Now, ten years after his first solo performance here, Redman returns to Grace Cathedral and revisits music of the masters – Ellington, Monk, Shorter, Coltrane and others.
Pic of the Week… from my phone camera:
I think you get the picture