The Federal Reserve and Mortgage Rates
Consumers are often misled when it comes to the subject of the Federal Reserve and how it affects mortgage interest rates. Often the media is the culprit causing the confusion. Many times, the Fed has taken action that caused mortgage interest rates to move in a direction other than what consumers expected, because the media provided weak reporting on the subject.
The Federal Reserve affects short-term interest rate maturities, the Fed Funds rate, and the Overnight Lending rate. These factors have a direct impact on the Prime rate. If you took only this into consideration, you may mistakenly conclude that changes made by the Fed will cause a similar movement in mortgage interest rates. However, mortgage interest rates are dictated by the trading of mortgage-backed securities, which trade on a daily basis. The real dynamic at the heart of interest rate movement is the relationship between stocks and bonds.
Stocks and bonds compete for the same investment dollar on a daily basis. There is literally only so much money to be invested. When the Federal Reserve feels that interest rates need to be decreased in an effort to stimulate the economy, this reduction in rates can often cause a stock market rally. When the market becomes bullish, the money to invest in stocks comes from the selling of mortgage-backed securities.
Unfortunately, selling mortgage-backed securities to fuel stock market rallies causes interest rates to go up, not down.
Historically, there have been many times when the Federal Reserve has increased interest rates. Stocks then sell off in fear that the increase will affect corporate profit margins, and the liquidated stock assets need a place to park until the next rally comes along. The safe haven is found in mortgage-backed securities which cause mortgage rates to drop.
The daily ebb and flow of money is what matters most when it comes to the movement of mortgage interest rates. I make it a point to continuosly monitor interest rates for my clients, and advise them of opportunities to manage their mortgage debt at a better rate. This is the foundation of my business model as a Trusted Advisor.
Let’s us know how we can help with your Real Estate purchase in the Seattle area!
Jennifer Fisher Sr. Mortgage Planner|Partner
Conforming
(< $ 417,000)
Conv. 30 Year Fixed 4.750%/4.893 APR
Conv. 15 Year Fixed 4.125%/4.388 APR
Conv. 5 Year ARM 3.250%/3.391 APR
FHA 30 Year Fixed 4.750%/5.911 APR
FHA 5 Year ARM 3.500%/3.746 APR
High Balance
(> $ 417,000 – $567,500**)
Conv. 30 Year Fixed 4.875%/4.995 APR
Conv. 15 Year Fixed 4.250%/4.474 APR
Conv. 5 Year ARM 4.125%/3.387 APR
FHA 30 Year Fixed 4.875%/4.833 APR
FHA 5 Year ARM 4.750%/3.794 APR
Jumbo
(> $ 567,500)
30 Year Fixed 5.750%/5.870 APR
15 Year Fixed 5.375%/5.595 APR
5 Year ARM 4.250%/3.711 APR Super Jumbo Option
(> $ 1,000,000)
5/1 ARM = 4.125% / 4.151 APR
7/1 ARM = 4.500% / 3.956 APR
Please let me know if I can be of any assistance.
It is an honor and pleasure to serve you.
“People will forget what you said, and people will forget what you did, but people will never forget how you made them feel”
- Maya Angelou
Rates are for a Purchase or Refinance, based on 740+ credit score, Full Doc Income, Conventional 80% Loan To Value, Conventional 80% Combined Loan To Value, FHA Purchase 96.5% Loan to Value, Primary Home, Single Family Residence, King County, 25 Day Lock with 1% Loan Origination Fee & 0% Discount Points and does not include any add-ons to rate or fee for such things as Cash Out, 2nd Home, Investment Property, 2nd Mortgages, etc. **County Limits Apply, Max for King, Pierce & Snohomish = $567,500. You can visit Jennifer’s website www.jenniferjfisher.com for more information or to apply for a loan. Cobalt Mortgage is an Equal Housing Lender.
If you’re looking to buy or sell real estate in Seattle, I’m sure the term “short sale” has come up at some point. A short sale is when an owner sells their home or property for less than what is owed on the loan secured by the owner’s property. The challenge with this process is that the mortgagee (or lender) has to approve the acceptance of less money than what is owed to them to release the lien and let the short sale happen. To say the least, this process can take a very long time. If the property isn’t going for well below market price, it isn’t worth your time as a buyer. As a “short sale” seller of property, your Real Estate Team needs to make the math work for your mortgage holder – more on that topic on a later blog post. Sometimes it doesn’t even make sense to do a Short Sale as a Seller, but that is a complicated decision that is best discussed one-on-one with a trusted professional. If you are a buyer – you definitely don’t want to pay market price with all of the hassle of a short sale – it must be below market value.
Keep in mind that the short sale trend is happening all over the country. According to National Association of Realtors (NAR) data, in the second quarter of 2010, the top states where significant shares of all properties on the market are potential short sales are: Nevada (32%), California (28%), Florida (27%) and Arizona (24%). While Washington isn’t on the top of this list (or even near the top!), short sales are still very much a reality when considering buying real estate in Seattle. A property owner in Seattle that bought in the bubble years (2006/2007) with little money down and is selling in 2010 & 2011 will be in a short sale situation due to market decline.
Here are two reasons why short sales have become more of a more viable option in Seattle:
1. Bank Owned Properties (REO’s) appear to be in shorter supply recently because they are so aggressively priced, which often brings out deal seeking investors or buyers. This causes the properties to generate multiple offers and sell fast, thereby creating buyers that increasingly become more and more aggressive with each property that they lose out on. On the upside, this behavior is good for our future economy (as long as it doesn’t create the same irrational exuberance that got us here in the first place). These zealous buyers then have to consider all of their options to purchase and–low and behold–short sales enter into the conversation. Now keep in mind that they are definitely not the only option. I actually just wrote about it here. But, with short sales becoming a better option than foreclosures for distressed sellers, more are being listed every day. This, combined with the fact that buyers are willing to make offers on short sales (aka pre-foreclosure), banks have been willing to approve more and more short sales.
2. In general, I think it is safe to say that banks overall are getting better and more open to approving these short sale deals. When the real estate market started to collapse, banks and/or lenders did not know how to deal with short sales (and they certainly weren’t staffed to handle the volume). Now that we are several years into the decline, the banks/lenders have staffed the Loss Mitigation Departments and have put processes into place to more adeptly approve short sales.
If you’re looking to purchase Seattle Residential Real Estate, we all better get use to short sales since they will be around, and in large volumes, for at least the next three years. So it really is important that you know your REALTOR’S comfort level and experience in working with short sales—whether you’re buying or selling. We would love to help you with your short sale here at Urban Abode Group. Give us a call or post a comment—we’re here to help.
August 2010 & September 2010 Bellevue Tower Closings – (Floor Plans)
10608 NE 4th St Unit 1005 Bellevue WA 98004 8/2/2010 $500,000 2 Bed / 2 Bath
10608 NE 4th St Unit 1509 Bellevue WA 98004 8/2/2010 $300,000 Studio / 1 Bath
10608 NE 4th St Unit 3212 Bellevue WA 98004 8/20/2010 $888,500 2 Bed / 2.5 Bath
10608 NE 4th St Unit 1105 Bellevue WA 98004 8/31/2010 $510,000 2 Bed / 2 Bath
10608 NE 4th St Unit 332 Bellevue WA 98004 9/7/2010 $325,000 1 Bed / 1 Bath
10608 NE 4th St Unit 1107 Bellevue WA 98004 9/16/2010 $380,000 1 Bed / 1.5 Bath
10608 NE 4th St Unit 1912 Bellevue WA 98004 9/23/2010 $580,000 2 Bed / 2 Bath
10608 NE 4th St Unit 1001 Bellevue WA 98004 9/27/2010 $707,000 2 Bed / 2 Bath
10608 NE 4th St Unit 608 Bellevue WA 98004 9/30/2010 $500,000 2 Bed / 2 Bath
No closed transactions in October 2010
Search Downtown Bellevue Condos Now!
I’m sure it comes as no surprise that your Real Estate Agent’s job is to get the most money for your house in the shortest amount of time. What should you and your REALTOR® do as a team to get your property sold in Seattle, WA?
Home sellers often think that to help this process that their Real Estate Agent needs to do a lot of “out of the box” thinking to get their property to stand out. Getting a house sold isn’t about out of the box thinking – it’s about making the basics solid – really, really solid. Does it look & smell great inside & out? Is it staged and de-cluttered? And most importantly is it priced right with a top performing agent? An agent with some crazy “500 point marketing plan” is never going to beat an agent that nails the basics. I have run across a few property owners that want to do less work and still over-price their homes. Not sure why anyone thinks this will work in today’s market. If it looks great inside and out and priced at market value with a top performing agent - it will sell.
Before you dive into any projects, I’d suggest consulting a professional real estate broker who can guide you in to focusing on getting it ready for market. Here are three items that will drastically help you sell your house quicker and for more money:
1) Professional Photography
In this day and age, the photos that are taken of your home are vital in attracting people to your property. Remember: all searches start online. I know it takes a lot of work to get your house or condo ready for the pictures, but keep in mind that these photos will drive all aspects of marketing your home. It’s worth the money to have good, quality photos. At Urban Abode Group – this is free to you. We pay for all professional photography for our clients.
2) Fixed Up & Staged
You’re going to have a lot of potential buyers walking through your home and you’ll want to make sure that it’s warm and inviting. You should be aiming for a “model home” feel to the property so make sure that it looks (and smells!) great inside and out and is free of clutter.
3) Priced to sell in 90 days or less!
A high priced house with great marketing only helps to sell all of the houses around it. People look at multiple homes before purchasing and if yours is overpriced, then it’s on to the next open house. In today’s market with pre- and post-foreclosures being your competition you need to be motivated to sell, not motivated to “test” the market. A properly priced house will create enough interest to get a quick offer, and this type of behavior will help you get the best price for your home history shows.
The focal point is to make sure that your home looks great online and in person and has a fair price. In today’s market you need to be a smart seller that is putting their time, effort, and money into the basics. I’m sure if you do these things, you’ll move your house quickly and for the best price.
We’ve recently sold a client’s condo in 22 days. Read more here.
When you’re ready to sell your Seattle House or Condo - give us a call or email! We’ve got the resources you need to get your home at the forefront of the local market. Urban Abode Group would be proud to help sell your Seattle property quickly and for a great price.
(Click Here For Seattle, WA Foreclosure Listings)
As a potential real estate buyer, of course you want to make sure that you’re getting the best deal possible. The media is quick to tell us that we should (and can) get a great price on real estate, but what exactly is a better price than fair market value? What is achievable and what isn’t? What is the best way to search online for a property? Tons of questions are bound to come up. That’s the nature of real estate. So I’d like to help you out by providing you with some concrete answers to help you get started.
First and foremost, you need to be sure that you’re working with a great real estate agent or Real Estate Team. They’ll be able to show you any property you want—from “listed properties” to “for sale by owner” listings. The best deals are always found with the help of an agent so you’ll want to be sure to interview possible candidates to find the right fit for you. Believe me, no one wants to overpay or accept a bad deal in this current economy, and an agent can help assure you that that doesn’t happen.
Here are some things to keep in mind when you’re searching for the perfect real estate agent:
1.) You always want to surround yourself with high performing individuals that are exercising good real estate practices on a regular basis. Your chances for success are significantly better when you are working with a team that is consistently enjoying success. They want you to help them keep their streak alive so you can be sure that they’ll be putting in the legwork to make it happen.
2.) If you already know what area you want to live in and what your price range is, then do some research and see if you can find an agent that has done multiple transactions in exactly those areas. Once you find someone that fits the bill then you’ll already be ahead of the curve.
3.) Take the few extra steps to call up an agent’s past clients, read testimonials or check out what people are saying about them on websites like LinkedIn.com or Yelp.com. Word of mouth is the best endorsement a real estate agent can have.
Speaking of useful websites, property browsing starts online. But what web sites should you be visiting? Here are some web sites that I find really useful when searching for property:
1.) Multiple Listing Service (MLS) fed consumer sites - The multiple listing service is a forum in which participating real estate agents can list properties they have for sale. I like Estately.com but have also found luck on major brokerage sites like Windermere.com, JohnLScott.com, and KW.com. These sites have 100% of the MLS listed properties, so it’s just a matter of you selecting the site that fits you the best. They have 100% of the MLS Active Properties on their site.
2.) Syndicated Listing Sites - A prime example of this type of website is Zillow.com. Zillow is a really great resource for user generated listings that you cannot typically find on the MLS, especially listings that are “for sale by owners” with their Make Me Move prices. Keep in mind though that Zillow is not getting their data from the Northwest MLS so you cannot guarantee that you’re getting a comprehensive list of everything that is currently on the market with sites not getting an MLS feed – which is the case with Zillow.
So you’ve been looking into agents and surfing the web. Another avenue to consider when it comes to locking down a good deal are foreclosures. They may or may not be the best way to get the killer deal on Seattle real estate. Here are some things that everyone should know about the foreclosure process:
1.) Pre-foreclosure : Short Sales – To put it bluntly, short sales are not always a pleasant transaction. Quite often it will not afford you the best deal because the bank is usually very unwilling to go below fair market value. You need to make sure a short sale is an amazing deal to deal with the hassle. The key is to work with an agent and negotiators that have enough knowledge to get it closed for you at a price below market value. And keep in mind that short sales take time (normally 2 to 9 months). Things are improving and the market is seeing faster short sales. The important factor is to have someone on your side that has a lot of experience in short sales under their belt, and you’ll be in good hands.
2.) Foreclosure Auctions – If you’re so inclined to purchase a foreclosure at the courthouse steps, one thing to keep in mind is that you may never have the opportunity to inspect the property prior to bidding at the auction. This can be a bit scary, especially since properties may have structural defects that may go unnoticed until after you make your purchase or stripped clean for the cooper. The key to avoiding this misstep is a.) to focus your attention on “failed short sales” that have previously been on the market and/or b.) work with an agent who is aggressive enough to inspect the property on their own. And remember! At auction, you need to buy properties with cash, which most buyers simply do not have. But there is a solution–you can borrow hard money. Just make sure that the property you are buying is a.) a quality property b.) at a true discount and c.) that you can get out of your high interest, hard money loan via refinancing. And if you can manage it, buying at auction is best done when you can average it out over many purchases versus a single purchase. I view it as a professional investors track.
3.) Post Foreclosure : Bank Owned or “REO” Properties – Bank Owned Properties in Seattle often sell for 100% of listing price or over asking price but can be an amazing deal. Ask your Realtor to show you the past 180 days for the Zip Code you are looking in to get the full picture. Some listing agents love conducting bidding wars and other’s don’t. If you ask me, bidding wars result in a ton of wasted time and more often than not, they cause the price to shoot up past a desirable range. It is often the case that an emotional or obsessive buyer will find themselves bidding on properties at prices that are above and beyond market value. Don’t get caught up in the moment and over pay. You are here for a discount, not to see who wins. We know the REO Teams in Seattle and can help you navigate this often murky terrain. (Search Bank Owned Properties in City of Seattle)
Foreclosures are not the only way to get a great deal, here are some other great ways to get deals on Seattle real estate properties:
1.) Builder Closeouts – These are highly motivated sellers who are often undercutting the market by a sizeable amount. I also think it’s safe to say that there is a fair amount of inventory with builder closeouts right now. And remember: timing is everything. The last unit can be a great buy even compared to the auction process. It’s possible to obtain brand new units that can generate higher rental rates for non-owner occupied units, create years of low repair and maintenance costs, and allow below market purchase pricing as you squeeze the builder. Sometimes a negative can be that the subdivsion, complex or building has already been picked over.
2.) Highly motivated sellers – These people will heavily compete with foreclosures to get their house sold. It’s just a matter of knowing the market, or working with an agent that knows the market, so that you can get you the best deal from these highly motivated sellers.
As you can see, it’s not a matter of where you look for discounts on Seattle Real Estates For Sale but who is on your side. Who do you want on your winning team? Nowadays, homebuyers have as much access to property listing as the agents themselves thanks to the internet. But the big difference is that you probably don’t have enough experience to make sure that you are buying a quality property at a true discount that is bound to close.
I’m proud to say that Urban Abode Group understands how to overcome the above obstacles and can get you a more than fair deal on a real estate purchase. So when searching for Seattle Real Estate For Sale, make sure you’ve got an expert by your side. Because that is how you get yourself the deal of a decade or a lifetime.
Best of luck to all of you on getting the best real estate discount in Seattle! Click Here to Search Bank Owned Property in Seattle, WA
Jennifer Fisher Sr. Mortgage Planner|Partner
Conforming
(< $ 417,000)
Conv. 30 Year Fixed 4.000%/4.641 APR
Conv. 15 Year Fixed 3.500%/4.197 APR
Conv. 5 Year ARM 3.000%/3.639 APR
FHA 30 Year Fixed 4.000%/5.097 APR
FHA 5 Year ARM 3.125%/5.747 APR
High Balance
(> $ 417,000 – $567,500**)
Conv. 30 Year Fixed 4.250%/4.366 APR
Conv. 15 Year Fixed 3.625%/3.826 APR
Conv. 5 Year ARM 3.750%/5.488 APR
FHA 30 Year Fixed 4.375%/4.690 APR
FHA 5 Year ARM 3.375%/5.094 APR
Jumbo
(> $ 567,500)
30 Year Fixed 4.875%/4.989 APR
15 Year Fixed 4.625%/4.821 APR
5 Year ARM 3.625%/5.415 APR
Super Jumbo Option
(> $ 1,000,000)
5/1 ARM = 3.500% / 3.513 APR
7/1 ARM = 3.875% / 4.169 APR
Please let me know if I can be of any assistance.
It is an honor and pleasure to serve you.
“Everyone who got where he is has had to begin where he was.”
– Robert Louis Stevenson
Rates are for a Purchase or Refinance, based on 740+ credit score, Full Doc Income, Conventional 80% Loan To Value, Conventional 80% Combined Loan To Value, FHA Purchase 96.5% Loan to Value, Primary Home, Single Family Residence, King County, 25 Day Lock with 1% Loan Origination Fee & 0% Discount Points and does not include any add-ons to rate or fee for such things as Cash Out, 2nd Home, Investment Property, 2nd Mortgages, etc. **County Limits Apply, Max for King, Pierce & Snohomish = $567,500. You can visit Jennifer’s website www.jenniferjfisher.com for more information or to apply for a loan. Cobalt Mortgage is an Equal Housing Lender.
Gallery Condos at 2911 2nd Avenue in Belltown has two retail spaces – both are now open for business.
Belltown Cafe Market has been open for 2 years now at 2911 2nd Avenue.
Belltown Cafe & Market - 2911 2nd Avenue
Banner Bank is now open at 2901 2nd Avenue in the Gallery Condo Building. Neon sign went up on October 8th, 2010.
24/7 ATM & Lobby Hours of M-F 9-5 (with a 6PM close on Friday)
Banner Bank Belltown in Gallery Condo Building
Jennifer Fisher Sr. Mortgage Planner|Partner
Conforming
(< $ 417,000)
Conv. 30 Year Fixed 4.125%/4.270 APR
Conv. 15 Year Fixed 3.625%/4.068 APR
Conv. 5 Year ARM 2.875%/5.210 APR
FHA 30 Year Fixed 4.125%/4.629 APR
FHA 5 Year ARM 3.125%/5.025 APR
High Balance
(> $ 417,000 – $567,500**)
Conv. 30 Year Fixed 4.250%/4.440 APR
Conv. 15 Year Fixed 3.750%/3.987 APR
Conv. 5 Year ARM 3.875%/5.529 APR
FHA 30 Year Fixed 4.375%/4.768 APR
FHA 5 Year ARM 3.375%/5.119 APR
Jumbo
(> $ 567,500)
30 Year Fixed 4.750%/4.906 APR
15 Year Fixed 4.500%/4.770 APR
5 Year ARM 3.625%/5.595 APR
Super Jumbo Option
(> $ 1,000,000)
5/1 ARM = 4.250% / 3.802 APR
7/1 ARM = 4.625% / 4.473 APR
Please let me know if I can be of any assistance.
It is an honor and pleasure to serve you.
” The only reason why a cheetah rarely misses its prey is not because of its speed; it’s because it only focuses on one. In life, we need to identify our goals, go for them and not get distracted.”
~Author Unknown
Rates are for a Purchase or Refinance, based on 740+ credit score, Full Doc Income, Conventional 80% Loan To Value, Conventional 80% Combined Loan To Value, FHA Purchase 96.5% Loan to Value, Primary Home, Single Family Residence, King County, 25 Day Lock with 1% Loan Origination Fee & 0% Discount Points and does not include any add-ons to rate or fee for such things as Cash Out, 2nd Home, Investment Property, 2nd Mortgages, etc. **County Limits Apply, Max for King, Pierce & Snohomish = $567,500. You can visit Jennifer’s website www.jenniferjfisher.com for more information or to apply for a loan. Cobalt Mortgage is an Equal Housing Lender.
Seattle Parking Spot
Over the past five years – I’ve been involved in transactions where parking spots are offered for between $15,000 - $50,000 in the Seattle metro area. A high rise building with the average unit cost of $300,000 isn’t going to command a $50,000 parking spot price tag. You will find the $50,000 parking spot selling price at the higher end condo buildings with the average purchase price of the units going for more than a million dollars. The building average condo unit price is going to be the key factor in the parking spot price since most buildings restrict use of parking to building residents. Location seems to matter a fair amount, but you can see parking spots in Ballard & the eastside commanding prices close to the cost of downtown Seattle.
In talking with other agents, title professionals & looking at sales data - a fair price for a condo parking spot in Belltown in 2010/2011 appears to be $20,000 to $25,000.
Some parking spots are separately deeded and not limited common elements owned by the Association so the sale is recorded with King County as a separate real estate transaction.
Here are some data points from King County records from those separately recorded sales of parking spots:
Sold in 2004 Parking spot $20,000 Seattle 98101
Sold in 2005 Parking spot $12,000 Issaquah 98029
Sold in 2005 Parking spot $10,000 Seattle 98122
Sold in 2008 Parking spot $25,000 Seattle 98101
Sold in 2009 Parking spot $20,000 Seattle 98102
Most parking spots in downtown Seattle buildings are Limited Common Elements and are owned by the association. The unit owner is given exclusive use of the parking spot through the legal documents of the condo association. Talk to your management company and condo board before starting the process of buying or selling a parking spot.
Rental of parking spots is quite common in Seattle condo buildings. I regularly see people getting between $100 to $200 for renting parking spots in the City of Seattle to fellow condo owners. Most buildings restrict parking spot rentals to other owner/tenants in the building to keep security tight.
What do you think a parking spot is worth in Queen Anne or Belltown or Ballard?
