Commentary:Mortgage investors continue to deal with headlines from Greece and today those headlines are shaded towards the possibility that the long awaited financial rescue agreement will be in place before the end of the day on Monday. Investors will likely be hesitant to move mortgage interest rates lower as the long weekend approaches and negotiations over Greece’s debt restructuring are still unresolved. The risk of a Greek sovereign debt default is not yet off of the table.

Here at home the Labor Department reported a 0.9% spike in gasoline prices in January pushed the overall consumer price index up to its fastest clip in four months. The 0.2% increase in the headline Consumer Price Index was just below most economists’ projections calling for a 0.3% surge in the pace of inflation at the consumer level. The so called “core rate”, a value that strips out the more volatile food and energy components, rose 0.2% — generally in-line with expectations. Most mortgage investors were quick to note the rate of core price increases over the 12-month period ending in January unexpectedly climb to 2.3%.

Here’s the “so what” factor buried within this pile of statistical mumbo-jumbo – the increase in the 12-month core reading, which is viewed by most investors as a barometer of inflation trends, is starting to suggest the underlying pace of inflation pressure may not be as benign as previously thought – a condition that is almost certain to make investors think twice before considering a move to nudge mortgage interest rates noticeably lower from current levels.

Looking ahead to the coming holiday shortened trading week Uncle Sam will be in the credit markets from Tuesday through Thursday conducting auctions to sell a total of $99 billion worth of debt in the form of 2-, 5- and 7-year notes. This week’s sell-off in the Treasury market has probably pushed the price of these three securities down to levels that will likely prove attractive to the global investment community. If so, well bid auctions will tend to be supportive of steady mortgage interest rates.

In terms of macro-economic data — mortgage investors will get a look at the condition of the single-family housing sector when the National Association of Realtors releases their January Existing Home Sales figures on Wednesday. On Friday the government will release last month’s New Home Sales figures. Both reports are expected to show demand in the housing sector remains soft – a condition that will not likely influence the trend trajectory of mortgage interest rates one way or the other.

Mortgage Rates as of Friday February 17, 2012 ( purchase transactions )

30 day rate locks, subject to credit score and loan to value edits

FHA

30 year fixed 3.75% 0% origination fee or 3.5% with 1.0% origination fee

Conventional

30 year fixed rate 3.875%

15 year fixed rate 3.25%

5/1 ARM 2.875%

7/1 ARM 3.125%

Rates change constantly, call or email me for an update anytime!

In the Twin Cities region, for the week ending February 11:

• New Listings decreased 0.4% to 1,313 • Pending Sales increased 28.9% to 928 • Inventory decreased 23.5% to 17,690

For the month of January:

• Median Sales Price decreased 3.4% to $140,000 • Days on Market decreased 8.5% to 142 • Percent of Original List Price Received increased 3.4% to 91.2% • Months Supply of Inventory decreased 34.6% to 4.7

Local Market Updates

Uptown Minneapolis:

There are 112 ACTIVE LISTINGS. There were 10 NEW LISTINGS, 3 PENDING & 1 SOLD LISTING last week.

Columbia Heights:

There are 42 ACTIVE LISTINGS. There were 5 NEW LISTINGS, 3 PENDING & NO SOLD LISTINGS last week.

Original article By Erica Christoffer, multimedia Web producer, REALTOR® Magazine

Looking for quick, easy ideas to bring a home to life, add value, or prep for sale without spending a lot? Learn from the pros! Designers who presented at the International Builders’ Show in Orlando last week had a plethora low-cost, chic ideas to make the most of an interior space.

1. Transform closets: You might consider turning a smaller, awkward closet into a built-in with cabinetry and shelving, or if there’s enough space, even a desk nook. Add dramatic dimension with disc lighting on each shelf. People are looking to maximize every inch of a home with workspaces and storage solutions they’ll actually use. (Jerry Collin, Kay Green Design) [Here are some great before and after closet transformations from Real Simple.]

2. Create a ‘Garage Mahal’: Make the garage an attractive space with a dedicated recycling area, wall mounted shop-vacuum, and maybe a mini (or big) refrigerator for adult beverages. When in doubt, hang it up – provide hanging areas for bikes, tools, equipment, etc. Consider installing a workbench and storage. (Jillian Prichard Cooke, DES-SYN)

3. Avoid seasonal colors: Greys and stone colors are the new neutrals. Accent them with bursts of bright blues, oranges or reds. (Marc Thee, Marc-Michaels Interior Design)

4. Provide simple luxury: A foldout cabana, two outdoor lounge chairs, and a small table is an inexpensive way to give a backyard living space a sense of luxury. Stage it with candles, flowers or cool drinks (iced tea, lemonade, water, etc.)  (Jillian Prichard Cooke, DES-SYN)

5. Set the mood:  Try halogen narrow spot bulbs to create warm, pooled light for romantic shadows and definition. (Marc Thee, Marc-Michaels Interior Design)

6. Faux wood: Textured wall finishes add weight to a space, which can provide warmth and richness to great rooms. Wood mimicking wallpaper is a great way to get the look of wood paneling without big cost or long-term commitment. (Marc Thee, Marc-Michaels Interior Design)

7. Inexpensive creativity: Molding brings depth and clever detail to a space a low-cost: for example, use molding assembled as a square over a bed with two smaller pictures hung side-by-side within the square. (Jillian Prichard Cooke, DES-SYN)

These are just a few easy ways to transform the look of your house without spending a lot. For more ideas and creative tips, check back next week!

Some homeowners have been waiting for years for a better  housing market and a good time to sell. Is it better to wait a few more years  and see if you can realize a higher sale price, or sell now and move on with  your life?

The motivation for selling is a key factor. Are you  commuting to work several hours a day and the commute is killing you? Are your  children grown and your home is now too big, in addition to being a burden to  maintain? Is your home too small? Have you taken a job out of the area? Can you  no longer afford to own your home? Or do you no longer want to pay the price it  costs to own your home?

These are all good reasons for considering making a move.  Not only do current market conditions enter into the equation, but making a  move like this is usually more complicated than it was the first time you  bought a home.

HOUSE HUNTING TIP: First, you need to find out the probable  sale price of your home and access the state of the current home-sale market in  your area. You also need to know what you can do to maximize the salability of  your home. Then you should consider where you’ll live next and how much that  will cost.

You’ll also want to know how long you can expect it to take  to sell your home. How many homes like yours have sold recently? Are homes like  yours in high demand? Or, is it located in a less desirable area that could  mean a longer marketing time and, perhaps, a lower price than you were  expecting?

Ask your agent to walk through your home with you and point  out what should be done to make your home marketable. Homes that sell today are  priced right for the market and are in move-in condition.

You want to make cost-effective improvements. If the kitchen  and bathrooms are outdated, consider a cosmetic redo. Update paint, hardware,  light fixtures and floor coverings, if necessary. Don’t do a complete remodel  unless you plan to stay in your home for years; otherwise, you won’t recoup  your investment.

Deciding where to move — and when — can be difficult. Some buyers can afford to buy a new home  before selling, and prefer to make the move that way. Most repeat buyers can’t  afford to buy first. Others who can won’t buy first due to market uncertainty  and the stress of owning two homes at once.

The most prudent approach to making a move from one home to  another is to sell first and rent if necessary until you find the right home to  buy. By selling first, you will know exactly how much money you have to apply  to a new home. Today’s housing market is volatile. A dip in the market could  shave tens of thousands of dollars, or more, off your selling price.

The other benefit of renting before buying is that you’re  under no pressure to buy the first listing you see. Interest rates are low and  are expected to stay low through 2012. Prices are also low and aren’t expected  to move up much for the next several years.

THE CLOSING: This gives you time to find the home that will  suit you for the long term.

In the Twin Cities region, for the week ending February 4:

• New Listings decreased 6.7% to 1,236 • Pending Sales increased 35.8% to 888 • Inventory decreased 23.2% to 17,697

For the month of January:

• Median Sales Price decreased 3.4% to $140,000 • Days on Market decreased 8.4% to 142 • Percent of Original List Price Received increased 3.4% to 91.2% • Months Supply of Inventory decreased 35.2% to 4.6

Local Market Updates:

Crystal-
There are 42 ACTIVE LISTINGS. There were 4 NEW LISTINGS, 4 PENDING & NO SOLD LISTINGS last week.

Uptown-
There are 103 ACTIVE LISTINGS. There were 8 NEW LISTINGS, NO PENDING & NO SOLD LISTINGS last week.

For more local market updates, visit The Skinny.

The buzz is out! There may be some relief for people in foreclosure, and for those who are upside down on their mortgages. Most of the details and logistics aren’t out yet, so we’re still waiting on the: who, what, where, when answers… but until then, here is a great summary of what’s going on. Look for more details as we find out more in the next few months!

After months of tense negotiations, the nation’s five largest banks and state and government officials have agreed to a $26 billion settlement aimed at holding banks accountable for the mishandling of some foreclosures.

The settlement is expected to help 1 million home owners, by having lenders reduce their mortgage debt or refinance into lower mortgage rates to reduce costs of their monthly payments. Also, about 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 are expected to receive checks for about $2,000. The aid from the settlement will be distributed over the next three years, The New York Times reports.

“I wouldn’t say it’s a panacea for the housing industry but it is good for the banks to get this behind them,” Jason Goldberg, an analyst with Barclays, told The New York Times about the settlement.

Details of the settlement still need to be finalized, including how many states will participate. Also, federal officials say the final figure could move upwards to $39 billion. Mortgages owned by Fannie Mae and Freddie Mac will not be part of the deal.

The banks involved in the settlement are Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial.

Article taken from Realtor.org

The normal retort to this thinking by people bullish on real estate is that prices may soon turn to the positive or that interest rates will start heading upward. Buy now before the cost of buying increases! Today, we want to look at this from a different angle. We want to alert our readers that their housing expense is about to increase if they continue to rent.

Currently, in most parts of the country, buying is less expensive than renting. Plus, purchasers can lock in their housing expense for the next thirty years by buying now. They will get a sensational price and a record low interest rate. What will happen if they continue to rent?

The Alternative to Buying

If a family continues to rent, they are looking at a housing expense which will rise with the market. Rental costs increase by 3% a year historically. But today’s rental market favors the landlord to a greater degree. Below is a graph of how rental prices have increased recently and where they are projected to go over the next few years based on a report from Marcus & Millichap.

Bottom Line:

Hoping to save by delaying the purchase of a home may result in higher housing costs while you’re waiting, thus achieving the exact opposite result. Check with a local real estate professional to determine the best option for you and your family.

By the KCM Blog

February 10-12
Lake Home & Cabin Show
Minneapolis Convention Center
Who else but a Minnesotan would end a hectic work week and drive three hours in the dark to sleep on a creaky bed just to “be there” for that first cup of coffee on the dock? We have a love affair with our lake homes and cabins and each year we rekindle it at the Lake Home & Cabin Show. The Lake Home & Cabin Show is Minnesota’s ONLY show that specializes in second homes and the second home lifestyle. If you own a lake home, cottage or cabin or you want to own one this is a truly unique and focused event you’ll want to experience.

February 16-19
Home & Patio Show
St. Paul River Centre
Whether you’re building a new home or sprucing up the one you have, there’s something for everyone. The Home and Patio Show has hundreds of exhibits and featured displays covering 3 floors of the River Centre complex. From Kitchens to Baths, Porches to Landscaping, Interior Designs and Exterior Remodeling, We Have It All… Including free daily workshops and seminars on Cooking, Home Improvements, Gardens and Landscaping. Get ideas. Get inspired. Celebrate spring!

February 29-March 4
Minneapolis Home & Garden Show
Minneapolis Convention Center
The Annual Minneapolis Home Garden Show, only place for you to experience what’s new in home, gardening, remodeling, home decor, and more! You’ll have the opportunity to meet over 1,000 experts and experience thousands of products and services.

Chip Wade of HGTV’s Curb Appeal; The Block and Designed to Sell will be appearing at the 2012 Minneapolis Home & Garden Show as well as Yigit Pura of BRAVO’s Top Chef: Just Desserts, Mark Brunetz of Style Network’s Clean House and Marjorie Johnson of Blue Ribbon Baking!

In the Twin Cities region, for the week ending January 28:

• New Listings decreased 17.5% to 1,090
• Pending Sales increased 22.9% to 833
• Inventory decreased 23.5% to 17,762

For the month of December:

• Median Sales Price decreased 6.5% to $145,000
• Days on Market decreased 2.3% to 141
• Percent of Original List Price Received increased 1.7% to 90.6%
• Months Supply of Inventory decreased 33.3% to 4.8

To stay current on market trends, visit The Skinny.

Local Market Updates

Uptown/Minneapolis:

There are 99 ACTIVE LISTINGS for condos in the Uptown area. There were 9 NEW LISTINGS, NO PENDING & NO SOLD LISTINGS last week.

Crystal:

There are 41 ACTIVE LISTINGS for single family homes. There were 5 NEW LISTINGS, 4 PENDING LISTINGS, and 1 SOLD LISTING last week.

Given that it’s Superbowl Week (Go Giants!), I thought we might go with a football theme today. I can’t tell you how many different people I hear proclaim that they are the quarterback of the real estate transaction – the agent, the loan officer, an attorney, accountant or financial planner. But for goodness sake, the buyer/borrower had better be the one calling the shots. Not that everyone else doesn’t play an important role, but the buyer/borrower is the one most impacted by the choices made.

Here’s my opinion of how the team works best:
■Head Coach (Your Loan Officer) – Your loan officer should be the Head Coach. After careful analysis of your income, credit and assets, this is the person in the best position to make sure you are playing to your strengths and minimizing your weaknesses. Your loan officer can discuss the economic realities of homeownership, while listening to your quality of life concerns. (How often you’ll be able to eat out or vacation, for example.) The loan officer can set up the game plan.
■Offensive Coordinator (Your Real Estate Agent) – Your real estate agent is your offensive coordinator. Armed with the game plan (which includes your limitations), the agent calls the plays, counseling you on the geography, the competition, the best ways to negotiate your way to your personal touchdown. Agents know the playing field (the inventory and the market). If you hire them to represent you, they can disclose the weaknesses of your competition (the seller).
■Offensive Line (Your Attorney, Accountant and Financial Advisors) – Your attorney, accountant and financial advisors are your offensive line. They are there to protect you from the blitzes that come from outside (sellers, title issues, tax consequences, and protecting your assets). Not the glamour positions, but vital to any success you are going to have.
■Running Backs and Wide Receivers (Your Friends and Family) – Your friends and family are the running backs and wide receivers. They often receive the glory and attention, but honestly, if everyone else doesn’t do their job, they rarely ever see success. Bad game plans, weak play calling, poor execution on the offensive line or by you, as quarterback, leave them merely as names on the roster.

As with any team, communication is the most important component to getting the desired results. Being the center of the action on the field, the quarterback (you) needs to honestly talk with your coaches and coordinators, so they can help direct you on the proper play calling. Simultaneously, you need to heed the feedback from your offensive line, running backs, and receivers to filter wise advice from emotion. Be the quarterback of your own home-buying process and you’ll be more likely to realize your dreams (and not the dreams of someone else).