GLENN EZELLE PRINCIPAL BROKER / OWNER

"New home sales plummet to record low" from CNNMoney.com

GLENN EZELLE — Wed, 23 Jun 2010 16:21:00 GMT

New home sales plummet to record low

By Hibah Yousuf, staff reporterJune 23, 2010: 11:25 AM ET

NEW YORK (CNNMoney.com) -- New home sales plummeted to a record low in May, the first month following the expiration of the homebuyer tax credit. This snapped a two-month streak of gains.

New home sales declined 32.7% to a seasonally adjusted annual rate of 300,000 last month, down from an downwardly revised 446,000 in April, the Commerce Department reported Wednesday. Sales year-over-year fell 18.3%.

This is the slowest sales pace since the Commerce Department began tracking data in 1963. The prior record was set in September 1981, when new homes sold at an annual rate of 338,000.

"We expected a slowdown, but the extent of this decline was a surprise," said Anika Khan, an economist at Wells Fargo. The figure was even worse than her relatively pessimistic forecast of an annual rate of 380,000 in May.

A consensus of economists surveyed by Briefing.com had expected May sales to slide to an annual rate of 430,000.

"Clearly, the lack of a tax credit had a lot to do with it, and it's going to be a bit of a bumpy road ahead as we get a few more months of payback," Khan said.

Home sales had surged in March and April as homebuyers scrambled to sign contracts ahead of the April 30 deadline for the tax credit. First-time homebuyers qualified for a tax credit up to $8,000, while repeat buyers could get as much as a $6,500 break.

Homebuyers have until June 30 to close deals, but the Senate may vote to push that deadline back to Sept. 30.

Khan expects home sales to remain depressed through the third quarter as home construction continues to contract and lending standards remain tight. But, she said, sales should pick up slightly in the fourth quarter.

Although, she added, we are still years away from a normal level of new home sales -- an annual rate between 800,000 and 900,000.

"A full housing recovery is contingent on employment," Khan said. "When we see the unemployment rate abate, and some growth in salaries and incomes, we'll get some sustainable momentum in the housing market."

A real estate industry report released earlier this week showed that existing home sales, based closed sales rather than signed contracts, slipped slightly last month but remained elevated.

Price and inventory: The government report showed that the median price of new homes sold in May was $200,900, down less than 1% from April but a 9.6% drop from May 2009.

An estimated 213,000 new homes were for sale at the end of May, the lowest inventory level in more than 40 years.

Still, at the current sales pace, the government expects it will take 8.5 months to sell through that inventory, up from 5.8 months in April. Six months of inventory is considered normal market conditions.

Sales by region: Sales fell the most in the West, where they decreased by more than 50%; the Northwest saw sales declined by about a third. Sales in the South and Midwest declined by about 25%.

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This Memorial Day, Fix Those Gutters from Realtor.org/Realtor Magazine

GLENN EZELLE — Wed, 05 May 2010 05:10:00 GMT

This Memorial Day, Fix Those Gutters
The flurry of Memorial Day sales at home-improvement retailers offers the perfect occasion to remind sellers to pick up the materials they need to fix any issues, like gutter problems, which could deter buyers.

Buyers are drawn like magnets to well-maintained homes. A sagging gutter here, a gutter with plants sprouting out of it there, and the sellers’ first impression is nothing but a missed opportunity.

For tips you can share with sellers on repairing common gutter problems, head to the REALTOR^® Content Resource, the new tool powered by HouseLogic, where your NAR membership entitles you to download free homeownership content in your consumer Web site, blog, or e-newsletter. Here are just a few of the tips available now at REALTOR^® Content Resource:

• Clear clogged gutters: Sellers can tackle the most common problem of all if they’re comfortable on a ladder, don’t mind getting wet and dirty, and don’t have an extremely tall house. It’s a matter of clearing the muck from gutters and then flushing them with a garden hose to make sure the water drains properly. To really impress potential buyers, sellers can even have gutter covers installed.

• Straighten sagging gutters: Replacing faulty or missing hangers, which secure gutters to a home, is an inexpensive fix. Hangers can deteriorate over time or they can be spaced too far apart to support the gutters’ weight. Sellers can pick up hangers for $10 or less and fasteners for about $1 each.

• Plug leaks: Sealing leaky gutter joints requires only caulking with a $5 tube of gutter sealant.

Demonstrate your knowledge as an expert on home value by using these tips to educate sellers about these relatively easy — but visually critical — fixes to gutter glitches. If sellers have no gutter worries, they’re bound to be able to benefit from tips on saving energy on water heaters, inspecting and maintaining their garage, and improving curb appeal and safety with outdoor lighting, all of which are also available now at REALTOR^® Content Resource.

The REALTOR® Content Resource, powered by HouseLogic, is an exclusive, free benefit for NAR members. HouseLogic is the National Association of REALTORS’^® no-topic-left-uncovered consumer Web site geared to helping home owners make smart decisions to maintain, protect, and increase the value of their home.

Mortgage Insurer Reports Housing Is Recovering from Realtor.org/Realtor Magazine

GLENN EZELLE — Wed, 05 May 2010 04:41:00 GMT

Mortgage Insurer Reports Housing Is Recovering
Mortgage insurer PMI released a report Monday indicating that the housing market is recovering and predicting that prices are likely to rise in many markets over the next two years. PMI considerations include increasing affordability, generally improving mortgage credit quality, decreasing foreclosure rates, and a drop in excess housing supply.

Key findings include:

Of the nation’s 384 MSAs (metropolitan statistical areas), 356 had a declining risk score, with only one showing a slight increase and the remainder unchanged.
The number of MSAs in the riskiest category fell by 26.4 percent during the fourth quarter.
The number of MSAs in the least-risky category increased 26.5 percent.

Large MSAs with the most improved risk scores are:

Columbus, Ohio
Pittsburgh
Memphis
Charlotte, N.C.
St. Louis
San Antonio, Texas
Kansas City, Mo.
Nashville, Tenn.
Chicago-Naperville
Indianapolis

Source: PMI Mortgage Insurance Co.

Pending Home Sales on an Upswing from Realtor.org/Realtor Magazine

GLENN EZELLE — Wed, 05 May 2010 04:36:00 GMT

Pending Home Sales on an Upswing
Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

Regional Numbers

The PHSI in the Northeast declined 3.3 percent to 75.1 in March, but remains 27.2 percent higher than March 2009.
In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago.
Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009.
In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.

“Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

Source: NAR

REAL ESTATE TAKES OFF IN THE SOUTH OF THE UNITED STATES

GLENN EZELLE — Mon, 03 May 2010 19:29:00 GMT

Home Sales Surge in Southern Cities

By THE ASSOCIATED PRESS

Published: April 22, 2010

Filed at 2:31 p.m. ET

MIAMI (AP) -- March home sales climbed nearly 19 percent in the South as buyers scrambled to claim federal tax credits and take advantage of affordable prices.

There were 160,000 sales of previously occupied homes last month in the South, which also saw prices increase more than 5 percent to $154,800, the National Association of Realtors said Thursday. The last time prices rose in the South on a year-over-year basis was June 2008.

Nationally, sales of previously occupied homes rose nearly 20 percent from March last year to a non-seasonally adjusted mark of 427,000. The median home price was flat at $170,700.

Low interest rates and the looming expiration of two tax credits at the end of April attracted more house hunters. First-time buyers are eligible for a tax credit of up to $8,000, and current homeowners who choose to buy and relocate can get up to $6,500.

When the government incentives end some experts think the housing market's recovery will stumble. But others argue that there are enough potential buyers to keep the market active.

Foreclosure sales, high unemployment and tight lending standards remain obstacles to a steady recovery. Foreclosures continued to stream into some Southern markets.

''Foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-time home buyers,'' said Lawrence Yun, chief economist for the Realtors' group.

In the South, sales increased in 18 of 19 Southern metro areas covered by the Associated Press-Re/Max Monthly Housing Report, also released Thursday. Sales were nearly flat in New Orleans, which is still feeling the effects of Hurricane Katrina.

Median sales prices rose in 8 of the 19 Southern cities covered by the AP-Re/Max report, which analyzes sales transactions in the metropolitan statistical areas recorded by all real estate agents, regardless of company affiliation.

The Texas metro areas of Dallas-Fort Worth and Houston, two markets which didn't see much of a pricing bubble during the housing boom, had the largest median sales price increases of the Southern cities covered by the AP-Re/Max report.

Prices rose nearly 6 percent in Dallas-Fort Worth to $148,00, and existing home sales climbed 6 percent compared with last March. In Houston, March sales increased 10 percent, and prices increased 4 percent to $153,000.

Real estate agent Mike Bowman said the tax credits, low mortgage rates and prices that remain affordable are creating a sales environment in Dallas-Fort Worth that's ''as good as you are going to get.''

''When people are optimistic about everything, then they are going to spend money, and that can only help the economy,'' said Bowman, president of Century 21 Mike Bowman Inc. in Grapevine, Texas.

While Congress seems reticent to extend the tax credits, Bowman said he wants lawmakers to consider it.

''That would give us enough momentum to carry on through the rest of the year and into 2011,'' Bowman said.

In Florida, home sales in Orlando jumped 42 percent, the highest year-over-year sales increase among the Southern cities covered by the AP-Re/Max report.

Foreclosures and overbuilding, which created high inventory, have pushed prices down in the central Florida metropolis. The median sales price in Orlando was just $111,000, down 18 percent from March 2009, the AP-Re/Max report.

Condos and houses are selling for less than half of what they were going for several years ago, said Orlando-area real estate agent Dana Hall. Houses located near Walt Disney World that once sold for $300,000 are now selling for around $90,000 in some areas, Hall said.

Meanwhile, more international buyers took advantage of favorable currency exchange rates to snare low-priced properties.

One of Hall's clients from the United Kingdom bought a two-bedroom, condo with a balcony for about $80,000 in Celebration, Fla.

The condo, a bank-owned foreclosure that was previously purchased for about $200,000, received multiple offers.

''Buyers now are getting steals,'' said Hall, owner of Century 21 Premium Properties in Celebration.

"New-home sales rise fastest in 47 years" from CNNMoney.com

GLENN EZELLE — Fri, 23 Apr 2010 21:44:00 GMT

New-home sales rise fastest in 47 years

By Chavon Sutton, staff reporterApril 23, 2010: 3:36 PM ET

NEW YORK (CNNMoney.com) -- New home sales improved in March at the fastest single-month rate in 47 years, according to a government report released Friday, as buyers snatched up properties ahead of the tax credit that's set to expire.

New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The gain snapped a four-month streak of declines.

A consensus of economists surveyed by Briefing.com expected March sales to rise to an annual rate of 330,000.

The March sales were the strongest since last July, and the percentage gain was the biggest on a month-over-month basis since a 31% gain in March 1963.

New-home sales spiked in every region of the United States. The South saw the biggest jump in new home sales, up 43.5%, while the Northeast region saw sales climb 35.7%. The West and Midwest regions both saw single-digit percentage growth, with the West up 6% and the Midwest up 4%.

The Census Bureau data followed a report from the National Association of Realtors on Thursday that showed existing home sales soared nearly 7% in March, as new homebuyers raced to buy up properties before a tax credit expires on April 30.

"It's obvious that homebuyers are rushing in to take advantage of the tax credit that's set to expire," said Robert Dye, senior economist for PNC Financial Services.

In November, the government extended and expanded an $8,000 tax credit, which also allows some repeat buyers to qualify for a $6,500 credit. Buyers have until April 30 to qualify.

Dye expects to see continued strength in April's data before "tailing off" through the summer as the group of buyers who rushed in are "all spent out."

The Census Bureau estimated that 228,000 new homes hit the market in March. At the current sales rate, it would take 6.7 months to sell through that inventory, down sharply from an estimated 9.2 months of inventory in February.

Although new-home sales in March exceeded analyst expectations, sales are still trending near record lows, and prices are still under pressure due to oversupply.

"It's a very good sign to see [the March inventory] number down," said Dye. "But this needs to tighten up more to see upward pressure on prices."

The average price of a new home was $258,600, according to the Census Bureau. That was virtually flat compared to a year earlier, and 12% below average prices in 2008.

A precarious jobs market continues to threaten the housing market. Dye expects the April unemployment rate to dip to a still-high 9.6% from March's 9.7% when data are announced May 7.

"Firming house prices and an improving jobs market will make recovery felt on Main Street as well as Wall Street," said Dye. "We're headed in the right direction."

Single Story For Sale in Pearl District

GLENN EZELLE — Thu, 22 Apr 2010 22:17:00 GMT

Prime Pearl District Gregory Penthouse

• 1,451 sq. ft., 2 bath, 1 bdrm single story - MLS® $599,000. - Price Reduction

Pearl District, Portland (Multnomah County) - Stunning one-of-a-kind Gregory penthouse in the heart of the Pearl District offers elegant finishes and true loft living at its finest. This immaculate pied-a-terre penthouse has an open and versatile floor plan and features a gourmet kitchen with maple cabinetry, granite island with eating bar and exceptional stainless appliances including SubZero refrigerator, 2 Thermador convection ovens and Asko dishwasher. French doors open out to two private terraces to enjoy impressive West Hills and city views. The luxurious master bathroom features marble counters, glass and tile shower and extra large soaking tub. This beautiful penthouse offers many amenities including fireplace, hardwoods, tile, artistic lighting, designer paint, automatic window coverings, 2 secure parking spaces and 2 secure storage spaces. Prime Pearl District location steps to the streetcar, shopping and restaurants. 1451 sq ft with one bedroom and 1 1/2 bathrooms, central vacuum, air conditioning and natural gas. This penthouse is a must see!

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2 Story For Sale in South End

GLENN EZELLE — Thu, 22 Apr 2010 22:09:00 GMT

Developer Opportunity Possible 8-9 Lots

• 2,357 sq. ft., 3 bath, 4 bdrm 2 story "Ranch" - MLS® $620,000 - R-10 CAN BE SUBDIVIDED

South End, Oregon City - 2.24 acre development opportunity in the South End neighborhood of Oregon City. Surrounded by newer $300-$400,000 homes on three sides with greenspace across the street this property zoned R10 offers the potential for 8-9 new homes. Perfect for any and all builder developers to either land bank or build now. Utilities are available at the street. Buyer to do own due diligence. Property currently offers a 2 story ranch style home with 2357 square feet, 4 bedrooms and 2 1/2 bathrooms.

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LOOKING FOR A DEAL TRY THESE

GLENN EZELLE — Sat, 17 Apr 2010 02:33:00 GMT

Economic indicators in these metros have gone from bad to worse, with no sign of recovery.

Miami boasts a popular South Beach club scene, Art Deco Architecture, and perhaps the best Cuban food in the country. But residents don't have much else to celebrate.

More than three years after the economy started its downward slide, the Miami metro area, like a handful of Sun Belt cities, still hasn't begun to recover. Median home prices in Miami have fallen 38% since its market peaked in the second quarter of 2007; the city's 11% unemployment rate is above the national average and has grown more than most of the 40 cities we surveyed.

List: 10 U.S. Cities In Free Fall

Cities in the "Sand States" of Florida, California, Arizona and Nevada, where overbuilding was rampant, are also in trouble, claiming nine of the top 10 spots in our list of cities in free fall. In Las Vegas, Riverside, Calif., and Phoenix, median home prices have fallen 50%, 44% and 37% from their respective peaks. Jobs are vanishing. Though country-wide, employers added 162,00 jobs last month, Riverside gained 13% fewer jobs in February 2010 (the latest numbers available by metro) than it did the same month three years earlier. Tampa, Fla., saw a 10% drop, and Los Angeles added 9% fewer jobs over the same time period.

These cities are also slow to absorb their glut of unsold foreclosed homes, keeping recovery at bay.

"These were highly speculative housing markets," says Jonathan Miller, president of Miller Samuel, a Manhattan-based real estate appraisal firm. "In the markets that have unloaded a lot of foreclosed housing stock there's still a lot more coming."

Behind the Numbers

To find the country's cities in free fall, we rated its 40 largest Metropolitan Statistical Areas (MSA) on six metrics.

We ranked each MSA on the percent its median home price has fallen since its individual peak, using data provided by Local Market Monitor, a housing market data tracker. To get an estimate for the number of new homes being built, we used data from the U.S. Census Bureau, which tracks how many building permits are issued. Roughly 98% of these permits become new home starts. We looked at the percent change in new building permits between February 2007 and February 2010.

We also wanted to know how many people were moving in and out of these metros, since a growing population buoys a local economy. We used the Census Bureau's most recent population estimates to rank each metro on its net population change between July 2006 and July 2009. To judge each city's productivity we also ranked each metro on its per capita gross domestic product in 2008, the most recent year available, using data from Moody's Economy.com. Finally, we ranked the metros on the percent change in unemployment between January 2007 and January 2010 and the number of jobs they added between February 2007 and February 2010, with data from the Bureau of Labor Statistics. We averaged these rankings to arrive at a final score.

Sunshine State Stagnancy

Florida cities dominate our list, with Tampa, Orlando and Jacksonville joining Miami. Florida's real estate market keeps falling even as some herald the start of a rebound. The state's comparatively sluggish foreclosure process keeps those homes from getting easily flushed out of the market. Because every foreclosure must be approved by a judge, the procedure takes a minimum of five months to complete.

"In states with complex foreclosure laws, the recovery is clearly being delayed," says Mike Simonsen, CEO of Altos Research, a Mountain View, Calif.-based real estate research firm, who adds that lengthy foreclosures may be driving away real estate investors in these cities.

A Trouble Spot in the Northeast

Picturesque Providence, R.I., is the only New England metro on our list. Economically, it's struggling far more than other cities in the region. Although Providence saw a slower three-year increase in unemployment than some other major metros, it still has a high unemployment rate, at 14%. The city also added 9% fewer jobs in 2010 than three years earlier. Workers are getting the message and leaving town. Providence is the only city in our top 10 to see a net loss in population.

Grim News for the Golden State

California cities are struggling too. Riverside, Los Angeles and Sacramento are suffering because of the knocks they took after their inflated housing markets began to plummet. Unemployment in the City of Angels has nearly tripled in three years, to 12%. Riverside's unemployment has also ballooned, to 15%. Meanwhile Sacramento saw a 75% drop in new building permits. These are troubling signs for Cali metros, but not surprising. The end of the state's home-price climb triggered more than just a housing slump.

"In California, so many jobs were concentrated in construction," says Michael Fratantoni, vice president of research at the Mortgage Bankers Association, the professional association for real estate financiers. "Jobs building single family homes wound up not being sustainable, and there were a lot of job losses."

The long-term consequences of the housing crash in these cities are still playing out, and new factors that complicate a recovery keep cropping up.

"Places like Phoenix and Riverside may take even longer to recover because people might just pick up and leave to go to places doing better," says Fratantoni. "It may make more sense to leave, rather than wait for jobs to return."

Top 5 Cities in a Free Fall

1. Miami-Fort Lauderdale-Pompano Beach, FL
Net Population Change, 2006-2009: 1.47%
Per Capita Gross Domestic Product: $42,645.52
Change in New Building Permits, February 2007-February 2010: -77.46%
Change in Unemployment, January 2007-January 2010: 202.70%
Change in New Jobs Added, February 2007 - February 2010: -9.68%
Change in Median Home Price from Market Peak: -38%

2. Tampa-Clearwater, FL
Net Population Change, 2006-2009: 2.33%
Per Capita Gross Domestic Product: $42,562.92
Change in New Building Permits, February 2007-February 2010: -44.18%
Change in Unemployment, January 2007-January 2010: 235.90%
Change in New Jobs Added, February 2007 - February 2010: -9.87%
Change in Median Home Price from Market Peak: -32%

3. Riverside-San Bernardino-Ontario, Calif.
Net Population Change, 2006-2009: 4.40%
Per Capita Gross Domestic Product: $32,403.49
Change in New Building Permits, February 2007-February 2010: -65.69%
Change in Unemployment, January 2007-January 2010: 177.78%
Change in New Jobs Added, February 2007 - February 2010: -12.94%
Change in Median Home Price from Market Peak: -44%

4. Jacksonville, Fl.
Net Population Change, 2006-2009: 3.83%
Per Capita Gross Domestic Product: $16,035.65
Change in New Building Permits, February 2007-February 2010: -66.09%
Change in Unemployment, January 2007-January 2010: 227.03%
Change in New Jobs Added, February 2007 - February 2010: -7.74%
Change in Median Home Price from Market Peak: -23%

5. Phoenix-Mesa-Scottsdale, AZ
Net Population Change, 2006-2009: 7.85%
Per Capita Gross Domestic Product: $40,870.16
Change in New Building Permits, February 2007-February 2010: -83.61%
Change in Unemployment, January 2007-January 2010: 148.65%
Change in New Jobs Added, February 2007 - February 2010: -10.01%
Change in Median Home Price from Market Peak: -37%

Click here to see the full list of Ten U.S. Cities In Free Fall

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Single Story For Sale in Reynolds School District

GLENN EZELLE — Mon, 12 Apr 2010 01:48:00 GMT

CHARMING 3 BED 2 BATH RANCH

• 1,092 sq. ft., 2 bath, 3 bdrm single story "RANCH" - MLS® $189,900 - GREAT HOME FOR THE MONEY

Reynolds School District, Northeast Portland - CLOVER CREST NEIGHBORHOOD OFF HALSEY AND 192ND CORNER LOT 3 BED 2 BATH 1092 SQ FT RANCH WITH FIRPLACE AND NEW OVEN, SINK, DISHWASHER, CARPET, PAINT, PED LAV AND BEAUTIFUL FENCED YARD WITH 2 CAR GARAGE, ALARM, COVERED PATIO, AND WATER FEATURE

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FIRST TIME HOME BUYER CREDIT EXPIRES APRIL 30

GLENN EZELLE — Thu, 01 Apr 2010 14:29:00 GMT

IF ARE STILL ON THE FENCE ABOUT BUYING A HOME NOW IS THE TIME. THE MARKET IS RECOVERING AND THE HOME PRICES HAVE BEGUN TO STABLIZE. Now is the time to buy before the prices start to go up again. Dont miss the chance to receive that first time home buyer credit of $8000 or the repeat home buyer credit of $6500. There are certain qualifications so check the federal guidlines to make sure you qualify.

First-Time Homebuyer Credit: Answers

Lot / Land For Sale in Skyline Bvld

GLENN EZELLE — Mon, 22 Mar 2010 18:23:00 GMT

Skyline Blvd Opportunity

• lot / land - MLS® $399,000

Skyline Bvld, Portland - Amazing opportunity to design and build your own home on this beautifully treed lot with partial valley view. This west facing .55 acre lot has a gentle slope to sloped topography and offers an inviting landscape for a variety of home styles. Seller has information on sand filtration and lot site. Utilities are available. Buyer to do own due diligence.

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"Mortgage Rates Improve, Stocks Fall" from Mortgage Time

GLENN EZELLE — Sun, 31 Jan 2010 22:28:00 GMT

Mortgage Rates Improve, Stocks Fall

While the economic data released this week had little impact, mortgage rates were heavily influenced by two big stories. One was an announcement that China will take steps to slow its economic growth and the other was President Obama's proposed new restrictions on the activities of financial institutions. Both measures are expected to lead to slower economic growth in the US, which hurt the stock market but helped fixed income markets. As a result, mortgage rates ended a little lower.

During the week, China released a report showing that its Gross Domestic Product (GDP) grew at an 8.7% pace in 2009. Rapid growth generally leads to higher inflation. In an effort to slow its economy and prevent inflation, China announced that it is going to curb bank lending. China currently has the third largest economy and is responsible for a significant percentage of global economic growth, so the effects of a slowdown in China will be felt around the world. In the US, President Obama proposed to limit the size and activities of large banks to reduce the risks to the financial system as a whole. If passed by Congress, this too would lead to slower growth for many large US financial services firms. The potential for slower economic growth and the resulting reduction in inflationary pressures was favorable for mortgage rates.

To build capital and reduce risk, the FHA announced that it will raise insurance rates and tighten credit score requirements. The major changes include increasing upfront premiums from 1.75% to 2.25%, reducing the maximum seller contribution from 6% to 3%, and increasing the level of FICO scores from 500 to 580 below which a down payment of 10% is required. At this point, the expected timing of the upfront premium increase will be in the spring, and the other changes will take place over the summer.

"Ten Inexpensive Ways to Wow Buyers" from Realtor Magazine Online

GLENN EZELLE — Thu, 28 Jan 2010 17:49:00 GMT

Ten Inexpensive Ways to Wow Buyers
Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season. "If you have been beating your head against a wall, this is going to feel a lot better,” he jokes.

Here are 10 cheap ways to make a property more attractive to shoppers.

Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

Source: U.S. News & World Report, Luke Mullins (01/21/2010)

"10 Cities Where It's Smarter to Buy" from Realtor Magazine Online

GLENN EZELLE — Sun, 24 Jan 2010 01:52:00 GMT

10 Cities Where It's Smarter to Buy
For people who want to own a home, the premium to buy—the spread between what they’d spend to rent and what they’d pay for a mortgage—is much lower than the 15-year average in many cities.

To determine what cities are smart buys, Forbes magazine computed the premium and also identified locales where economists predict home prices will go up the most over the next five years.

Here are the top 10 cities the magazine chose as the best places to buy right now.

Boston-Cambridge-Quincy, Mass.
Charlotte-Gastonia-Concord, N.C.-S.C.
Chicago-Naperville-Joliet, Ill.-Ind.-Wis.
Cincinnati-Middletown, Ohio-Ky.-Ind.
Denver-Aurora-Broomfield, Colo
Minneapolis-St. Paul-Bloomington, Minn.-Wis.
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
Portland-Vancouver-Beaverton, Ore.-Wash.
San Francisco-Oakland-Fremont, Calif.
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.

Source: Forbes, Francesca Levy (01/21/2010)

2 Story For Sale in Pearl District

GLENN EZELLE — Fri, 22 Jan 2010 01:41:00 GMT

Pearl District Pinnacle View Penthouse

• 1,854 sq. ft., 2 bath, 2 bdrm 2 story "Townhome Style" - MLS® $699,000 - REDUCED TO SHORT SALE

Pearl District, Portland - Pearl District Pinnacle 2 story penthouse with 2 expansive terraces totalling 1300 square feet offers amazing West Hills, City and River Views! This top floor condo has it all...gourmet kitchen with granite counters, granite island, stainless appliances, 6 burner gas cook top and wine fridge, living room with wall of windows, marble fireplace and door to main 700 sq ft terrace, upper level master suite with city views and 2nd 600 sq ft terrace, wood floors throughout, tandem parking in secure garage and an extra storage unit.The Ultimate in Outdoor Living and Entertaining. Prime Location near Parks and the Streetcar.

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SWITCHING TO A SELLER'S MARKET

GLENN EZELLE — Sat, 02 Jan 2010 17:37:00 GMT

2010 will be the year that the market switches back to a sellers market. Already in the last 3 months 6 out of 10 homes have seen a price increase. Do not wait until it is too late. Now is the time to buy a home. The first time buyer credit and previous home buyer credit has been expanded and extended. The time has never been better. Lenders are starting to lend again and the job market is starting to improve. Call me for a market analysis. If you want to buy or sell call Glenn Ezelle.

30 years of subsidized risk

GLENN EZELLE — Sat, 07 Nov 2009 05:56:00 GMT

Subsidized Risk

There's a reason Dick Fuld didn't believe Lehman would be allowed to fail.

By CHARLES GASPARINO

I recently sat down with legendary investor Ted Forstmann to discuss why, on the one-year anniversary of the financial meltdown, the press has largely ignored the role of government in creating the meltdown—and possibly setting the stage for another one—by allowing Wall Street to borrow cheaply and easily during the past three decades.

"I guess reporters think writing about greedy investment bankers is more interesting," Mr. Forstmann laughed.

Mr. Forstmann knows a thing or two about greedy investment bankers: He's been calling them on the carpet for years, most famously during the 1980s when he fulminated against the excesses of the junk-bond era. He also knows that blaming banking greed alone can't by itself explain the financial tsunami that tore the markets apart last year and left the banking system and the economy in tatters.

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Chad Crowe

The greed merchants needed a co-conspirator, Mr. Forstmann argues, and that co-conspirator is and was the United States government.

"They're always there waiting to hand out free money," he said. "They just throw money at the problem every time Wall Street gets in trouble. It starts out when they have a cold and it builds until the risk-taking leads to cancer."

Mr. Forstmann's point shouldn't be taken lightly. Not by the press, nor by policy makers in Washington. But so far it has been, and the easy money is flowing like never before. Interest rates are close to zero; in effect the Federal Reserve is subsidizing the risk-taking and bond trading that has allowed Goldman Sachs to produce billions in profits and that infamous $16 billion bonus pool (analysts say it could grow to as high as $20 billion). The Treasury has lent banks money, guaranteed Wall Street's debt and declared every firm to be a commercial bank, from Citigroup with close to $1 trillion in U.S. deposits, to Morgan Stanley with close to zero. They are all "too big to fail" and so free to trade as they please—on the taxpayer dime.

The conventional wisdom as perpetuated in the media is that these bailout mechanisms are unique, designed to ameliorate a once-in-a-lifetime financial "perfect storm." They are unique, but only in size. A quick look back at the past three decades will demonstrate what Mr. Forstmann meant when he said the government has been ready to hand out free money nearly every time risk-taking led to losses.

The first mortgage market meltdown of the mid-1980s, spurred by the Fed's supply of easy money, was among the most painful market upheavals in the history of the bond market. The pioneers of the mortgage bond market, Lew Ranieri of Salomon Brothers and Larry Fink of First Boston (the same Larry Fink now considered a sage CEO at money management powerhouse BlackRock), lost what were then unheard-of sums of money. (Mr. Fink concedes to losses of over $100 million.)

"What happened then was a dry run of what was to come," Mr. Fink recently told me, as he looked back on the market he created, which would eventually lie at the heart of the most recent financial crisis. Wall Street took excessive risk in mortgage bonds amid the easy money supplied by the Fed—and lost. When the crisis began, the Fed under then Chairman Alan Greenspan slashed interest rates—as it would do after Orange County, Calif., declared bankruptcy in 1994 because of bad bets on complex bonds; and again in 1998 when the hedge fund Long-Term Capital Management (LTCM) blew up; and of course in the bond-market crisis of 2007 and 2008. The lower rates each time lessened the pain of the risk-taking gone awry, and opened the door for increased risk down the line.

Easy money wasn't the only way government induced the bubble. The mortgage-bond market was the mechanism by which policy makers transformed home ownership into something that must be earned into something close to a civil right. The Community Reinvestment Act and projects by the Department of Housing and Urban Development, beginning in the Clinton years, couldn't have been accomplished without the mortgage bond—which allowed banks to offload the increasingly risky mortgages to Wall Street, which in turn securitized them into triple-A rated bonds thanks to compliant ratings agencies.

The perversity of these efforts wasn't merely that bonds packed with subprime loans received such high ratings. It was also that by inducing homeownership, the government was itself making homeownership less affordable. Because families without the real economic means to repay traditional 30-year mortgages were getting them, housing prices grew to artificially high levels.

This is where the real sin of Fannie Mae and Freddie Mac comes into play. Both were created by Congress to make housing affordable to the middle class. But when they began guaranteeing subprime loans, they actually began pricing out the working class from the market until the banking business responded with ways to make repayment of mortgages allegedly easier through adjustable rates loans that start off with low payments. But these loans, fully sanctioned by the government, were a ticking time bomb, as we're all now so painfully aware.

A similar bomb exploded in 1998, when LTCM blew up. The policy response to the LTCM debacle is instructive; more than anything else it solidified Wall Street's belief that there were little if any real risks to risk-taking. With $5 billion under management, LTCM was deemed too big to fail because, with nearly every major firm copying its money losing trades, much of Wall Street might have failed with it.

That's what the policy makers told us anyway. On Wall Street there's general agreement that the implosion of LTCM would have tanked one of the biggest risk takers in the market, Lehman Brothers, a full decade before its historic bankruptcy filing. Officials at Merrill, including its then-CFO (and future CEO) Stan O'Neal, believed Merrill's risk-taking in esoteric bonds could have led to a similar implosion 10 years before its calamitous merger with Bank of America.

We'll never know if LTCM's demise would have tanked the financial system or simply tanked a couple of firms that bet wrong. But one thing is certain: A valuable lesson in risk-taking was lost. By 2007, the years of excessive risk-taking, aided and abetted by the belief that the government was ready to paper over mistakes, had taken their toll.

With so much easy money, with the government always ready to ease their pain, Wall Street developed new and even more innovative ways to make money through risk-taking. The old mortgage bonds created by Messrs. Fink and Ranieri as simple securitized pools had morphed into the so-called collateralized debt obligations (CDOs), complex structures that allowed Wall Street banks as well as quasi-governmental agencies Fannie Mae and Freddie Mac to securitize ever riskier mortgages.

Mr. O'Neal, the man considered most responsible for Merrill's disastrous foray into risk-taking, told me in an interview last year that in the fall of 2007, when he saw that the firm's problems were insurmountable, he had a deal to sell Merrill to Bank of America for around $90 a share. But Merrill's board rejected it, believing he would be selling out cheaply. The CDOs would eventually recover, they argued, as the Fed pumped life into the markets.

Likewise, nearly to the minute he was forced to file for bankruptcy, former Lehman CEO Dick Fuld believed the government wouldn't let Lehman die. After all, government largess had always been there in the past.

All of which brings me back to Mr. Fortsmann's comment about policy makers helping turn a cold into cancer. What if the Fed hadn't eased Wall Street's pain in the late 1980s, and again after the 1994 bond-market collapse? What if policy makers in 1998 had allowed the markets to feel the consequences of risk—allowing LTCM to fail, and letting Lehman Brothers and possibly Merrill Lynch die as well?

There would have been pain—lots of it—for Wall Street and even for Main Street, but a lot less than what we're experiencing today. Wall Street would have learned a valuable lesson: There are consequences to risk.

Mr. Gasparino is a CNBC on-air editor and the author, most recently, of "The Sellout: How Three Decades of Wall Street Greed and Government Mismanagement Destroyed the Global Financial System," just published by HarperBusiness.

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EXISTING HOMES SALES INCREASE FOR THE 8TH MONTH IN A ROW

GLENN EZELLE — Mon, 02 Nov 2009 18:47:00 GMT

Pending Sales of Existing Homes in U.S. Rise 6.1% (Update1)

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By Bob Willis

Nov. 2 (Bloomberg) -- The number of contracts to buy previously owned homes in the U.S. rose in September for an eighth straight month as Americans rushed to meet a deadline for a home-buyer tax credit.

The index of signed purchase agreements, or pending home sales, rose 6.1 percent after a 6.4 percent gain in August, the National Association of Realtors said in Washington. Compared with a year earlier, pending sales rose 19.8 percent, without adjusting for seasonal variations.

Many buyers accelerated purchases of new homes to take advantage of the $8,000 tax credit before it expires Nov. 30. Foreclosure-driven price declines and low mortgage rates have also pushed sales up this year. Home sales may cool in coming months unless the credit is extended under a deal worked out by Senate Democrats.

“Home sales continued to show improvement as we see people rush to take advantage of the homebuyer tax credit, although the sustainability of this move is in doubt, and we expect a far slower growth rate going forward,” David Semmens, an economist at Standard Chartered Bank in New York, said before the report.

Stocks extended gains after separate reports showed that manufacturing expanded at the fastest pace in more than three years and spending on construction unexpectedly increased.

The Standard & Poor’s 500 Index added 1.3 percent to 1,049.43 at 10:21 a.m. in New York.

Factory Index

The Institute for Supply Management’s factory index rose to 55.7 in October, the highest level since April 2006, from 52.6 in September, according to the Tempe, Arizona-based group. Readings above 50 signal expansion.

Construction spending rose 0.8 percent in September, the most in a year, followed a revised 0.1 percent drop in August, Commerce Department figures showed. Spending on residential and government projects climbed, while outlays on private commercial construction slumped.

Pending home sales were projected to be unchanged in September from the prior month, according to the median forecast of 33 economists in a Bloomberg News survey. Estimates ranged from a drop of 2.5 percent to an increase of 5.5 percent.

The Realtors group has collected pending sales data since January 2001, and it started publishing the index in March 2005.

Leading Indicator

Pending home sales are considered a leading indicator because they track contract signings. The Realtors’ existing- home sales report tallies closings, which typically occur a month or two later.

Sales rose in three of four regions from the prior month. They increased 10.2 percent in the West, 8.1 percent in the Midwest and 4.9 percent in the South. Sales fell 2 percent in the Northeast.

“As long as buyers do not overstretch and stay well within their budget, a sizeable pent up demand can be tapped among financially qualified potential buyers,” NAR Chief Economist Lawrence Yun said in a statement. Still, “We’re clearly not out of the woods because an excess of homes remains on the market.”

Sales of existing homes surged a record 9.4 percent in September to a 5.57 million annual rate, a report last month showed. The median price fell at the slowest pace in a year as the number of houses on the market shrank.

Federal Reserve

The Federal Reserve has announced it will phase out its purchases of $1.25 trillion in mortgage-backed securities by March, signaling borrowing costs for home buyers may rise after the average rate on a 30-year mortgage fell to a record 4.78 percent in April.

Housing-related companies are still recovering from the industry’s worst slump since the Great Depression. USG Corp., North America’s largest maker of gypsum wallboard, posted its eighth straight net loss last quarter as sales dropped 32 percent from the same time last year.

“We’re expecting we’ve hit the bottom in housing,” Chief Executive Officer William Foote said Oct. 21 on a conference call with analysts. He added it would take time for any sustained improvement to “really kick in.”

To contact the reporters on this story: Bob Willis in Washington bwillis@bloomberg.net;

Last Updated: November 2, 2009 10:23 EST

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WHY THIS COUNTRY BELONGS TO THE PEOPLE THAT RUN IT.

GLENN EZELLE — Fri, 09 Oct 2009 16:20:00 GMT

Andrea Tantaros

- FOXNews.com

- October 09, 2009

Pelosi's Sinking In the Swamp

If she hopes to survive a bloody battle in 2010 -- one where her own words and actions will be used against her -- Speaker Pelosi must insist that New York Congressman Charlie Rangel resign immediately.

When she became Speaker of the House Nancy Pelosi assured Americans she would “drain the swamp” and clean up ethics violations. To this day, she still boasts about that notion as an accomplishment. Sadly, the swamp is winning.

In perhaps the most appalling display of “cronyism,” -- a word Pelosi herself used almost incessantly when Republicans were in power, -- she has allowed her good friend and political ally, Rep. Charlie Rangel to retain his powerful post as Chairman of the Ways and Means Committee. This, despite calls for him to step down from both sides of the aisle and a litany of unethical transgressions, including the following:

- Evading taxes on $1.3 million in income derived from multiple properties and failing to disclose hundreds of thousands of dollars of assets and income.
- Accusations of taking a $1 million contribution to the Rangel Center at City College from a wealthy businessman who later got a lucrative tax break for his company.
-Accepting a Citigroup-funded trip to the Caribbean in November 2008, when the bank was bleeding the bailout funds dry.
- Unreported rental income from a vacation villa in the Dominican Republic that Rangel failed to acknowledge when filling out financial disclosure forms.

Instead of applying the same guidelines on impropriety that she did for the GOP, Pelosi has largely stayed mum, opting instead to duck, deny, and ignore the gravity of the situation in front of her. It's not surprising since this isn’t the first instance of her favoritism.

She’s also stuck by her closest congressional cohort, John Murtha, who is also facing an investigation into his misdeeds including no-bid contracts awarded to a nephew’s company and $38.1 million in earmarked appropriations for clients of the PMA Group which employs former Murtha staff members and contributed to his campaign.

When asked about attempts to strengthen congressional ethics standards, the Pennsylvania Democrat responded that he thinks it's “crap.” Apparently his buddy Pelosi agrees.

And still, there more! Despite finding photos of $90,000 in cash tucked inside containers of pie crust and Boca Burgers from an FBI raid on the freezer in Louisiana Congressman William Jefferson’s house, Pelosi tried to "gift" him (ironically) with a Homeland Security committee assignment. -- He would later be convicted of 11 counts of racketeering and bribery.

Someone call Joe the Plumber! The drain on the swamp is awfully clogged up.

Even some Democrats agree. Two of the Speaker's own party members broke with ranks with her and voted against Mr. Rangel, a sign that the Speaker will soon have to answer for her actions -- or lack thereof. Many are calling on Rangel to resign, realizing that not only is this hypocrisy in it’s most audacious form, but also that Republicans will make political hay out of this issue until the leadership on the left, primarily Pelosi, speaks up and calls for the New York congressman to step down.

When the ultra-liberal New York Times editorial page wags its finger in disgust at a hometown son and one of their own, the writing's on the wall about the the severity of this mistake in leadership. On Friday here's what The Times said:

“It is time for Democrats in Congress — who once justifiably complained about the corruption of the Republican majority — to demonstrate to Americans that someone in that august body has ethical standards.

“Speaker Nancy Pelosi, maintaining her tunnel vision on behalf of a powerful colleague, led the majority to defeat the Republicans’ latest call to depose the New York lawmaker. She does the nation no favor.”

But many Democrats in Congress still refuse to see what damage this scandal is doing to their credibility. Why? Because Rangel is “a likeable guy.” Congressman Mark Foley was also a likeable guy. But he had to go. More obviously, a chilly demeanor isn’t the charge.

Mr. Rangel is the big cheese when it comes to writing federal legislation that impacts our tax code. To not only shield a member of her caucus as political payback for Rangel’s past support of Pelosi -- but to also reward that member -- shows that the Speaker is willing to risk losing her entire caucus, and what’s left of her almost non-existent credibility, for the sake of a few. That’s not just bad politics. That’s bad judgment.

If she hopes to survive a bloody battle in 2010, one where her own words and actions will be used against her, she must insist Rangel resign immediately.

If I had to talk to The New York Times -- who concluded their scathing rebuke of the Speaker by asserting that the protection of Mr. Rangel as chairman “is a grave misstep” that will only hand the ethics issue back to Pelosi’s political opponents -- I would argue that it’s far too late. The issue has already been returned to Republicans. We can only hope control of the House of Representatives is next.

Andrea Tantaros is a conservative columnist and FOXNews.com contributor. Follow her on Twitter @AndreaTantaros.

HOUSING TAKES A 2 YEAR HIGH BOUNCE BACK IN EXISTING SALES

GLENN EZELLE — Fri, 21 Aug 2009 16:09:00 GMT

Existing Home Sales in U.S. Jump to Two-Year High (Update3)

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By Shobhana Chandra

Aug. 21 (Bloomberg) -- Sales of existing U.S. homes jumped more than forecast in July to the highest level in almost two years, signaling the housing crisis that crippled the world’s largest economy is easing.

Purchases climbed 7.2 percent to a 5.24 million annual rate, the most since August 2007, the National Association of Realtors said today in Washington. The gain was the biggest since records began in 1999. The median price fell 15 percent.

Foreclosure-driven declines in prices, government credits for first-time buyers and near-record-low borrowing costs may keep stoking demand, helping the economy recover from the worst recession since the 1930s. At the same time, more Americans will probably lose their homes as companies cut payrolls, indicating a rebound will be slow to take hold.

“More and more buyers are becoming convinced that there is not a lot of downside left in the housing market,” said Ellen Zentner, a senior economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “We can count on housing no longer being a drag. The economic recovery is on track.”

Stocks jumped and Treasury securities dropped after the report added to evidence the housing market was turning. The Standard & Poor’s 500 index rose 1.6 percent to 1,023.26 at 11:26 a.m. in New York. The S&P builder supercomposite was up 4.4 percent. The yield on the 10-year note jumped to 3.53 percent from 3.43 percent late yesterday.

Exceeds Forecast

Existing home sales were forecast to rise to a 5 million annual rate, according to the median forecast of 64 economists in a Bloomberg News survey. Estimates ranged from 4.8 million to 5.25 million. June’s pace was unrevised at 4.89 million.

Sales had reached a 4.49 million pace in January, their lowest level since comparable records began in 1999.

Purchases of existing homes increased 5 percent compared with a year earlier. The median price dropped to $178,400 from the $210,100 in July 2008.

“We are bouncing back,” Lawrence Yun, the NAR’s chief economist, said in a press conference. Even so, “we still need to wait until year-end before we see price stabilization.”

The number of previously owned unsold homes on the market jumped 7.3 percent to 4.09 million in July, a “notable” increase that exceeded the historical average for the month, according Yun. Sellers who were waiting for the market to turn may now be putting their houses up for sale, he said.

At the current sales pace, it would take 9.4 months to sell those houses, the same as in June. A seven months’ supply is usually consistent with stabilization in prices, Yun said last month.

Distressed Sales

The share of homes sold as foreclosures or otherwise distressed properties held at 31 percent in July, he said.

Today’s report showed sales of existing single-family homes increased 6.5 percent to an annual rate of 4.61 million. Sales of condominiums and co-operatives climbed 13 percent to a 630,000 rate.

Purchases increased in three of four regions, led by a 13 percent jump in the Northeast.

The figures are compiled from contract closings and may reflect purchases agreed upon weeks or months earlier. Many economists consider new-home sales, recorded when a contract is signed, a more timely barometer of the market.

The Commerce Department may report next week that purchases of new houses rose in July to the highest level since November, according to the Bloomberg survey.

Cutting Costs

Home Depot Inc., the largest home-improvement retailer, is among businesses cutting costs to ride out the housing recession. The Atlanta-based company reported second-quarter profit that fell less than analysts estimated and raised its annual earnings forecast after trimming expenses, even as it projected a sales decline for the year.

“Performance across most of our regions is better,” Chief Executive Officer Frank Blake said on a conference call with analysts on Aug. 18. “But caution is still appropriate,” and “we remain concerned by the high level of foreclosure activity,” he said.

About $3.4 trillion worth of houses are at risk of default because the owners owe more than the property is worth, Santa Ana, California-based First American CoreLogic said last week. By putting more homes on the market, foreclosures are keeping inventory higher than levels consistent with stable prices.

Obama administration efforts to revive housing include an $8,000 federal tax credit for first-time buyers who complete the transaction before Dec. 1. The government also is offering lenders incentives to modify the terms of delinquent mortgages, and the Federal Reserve is buying mortgage-backed securities to help reduce borrowing costs.

The first-time buyers accounted for about 30 percent of sales last month and the government’s credit is having a “significant impact,” the NAR’s Yun said.

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net

"Mortgage rates climb" CNNMoney.com

GLENN EZELLE — Mon, 15 Jun 2009 01:50:00 GMT

Mortgage rates climb

Treasury yields on a tear help pull rates higher; 30-year fixed mortgage jumps to 5.95%.

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NEW YORK (CNNMoney.com) -- Home mortgage rates jumped in the most recent week, pulled higher by skyrocketing Treasury yields.

The average 30-year fixed rate soared to 5.95% from 5.45% last week, according to a weekly national survey from Bankrate.com.

The 30-year rate is often influenced by the benchmark 10-year bond's yield, which has increased steadily to hover around 4% recently. The yield was 2% just six months ago. Investors worry that this has re-ignited inflation fears and threatens the potential for economic recovery.

In an effort to cap mortgage rates, the Federal Reserve in March revealed a campaign to buy back $300 billion in Treasurys in hopes that it will spark demand and keep yields -- and therefore, mortgage rates -- in check.

Mortgage rates fell as refinancings abounded. But those benefits seem to have worn off, as rates have been on a tear in recent weeks.

Although mortgage rates continue to rise, they remain much lower than last year, when the average 30-year fixed mortgage rate was 6.48%.

Adjustable-rate mortgages: Those rising rates have made it difficult for many homeowners to refinance, but ARMs are an option, the Bankrate report noted.

Adjustable-rate mortgages were higher last week, with the average 1-year ARM rising to 5.16% and the 5-year ARM jumping to 5.49%.

"Bankers say ARMs got a bad rap in the mortgage debacle," the report continued, adding that the riskiest loans in the housing bubble --"subprime, low down payment, interest-only, negative amortizing and stated income" -- tended to be adjustable-rate mortgages.

But the meltdown happened "because those loan features were layered on top of ARMs," the report said, meaning that it was not the adjustable rates that caused people to default. Rather, home buyers put no money down and "exaggerated their earnings when they applied for stated-income loans."

A few months ago, only about 1% of mortgage applications were for ARMs. Last week, it was 3.4%, the report added.

Other rates: The average 15-year fixed rate mortgage jumped to 5.37% from 5.06% the week prior.

The average jumbo 30-year fixed rate ticked up to 6.96% from 6.68%. Loans are considered "jumbo" when they are too large to be purchased or guaranteed by Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500). They carry higher rates than smaller "conforming" loans, which do have guarantees.

Have you applied for a loan modification or refinancing under the Obama administration plan? Did you run into roadbloacks or were you able to get a lower monthly payment and avoid foreclosure? We want to hear your experiences. E-mail your story to realstories@cnnmoney.com, and you could be part of an upcoming article. For the CNNMoney.com Comment Policy, click here.

Single Story For Sale in Garden Home

GLENN EZELLE — Mon, 15 Jun 2009 00:49:00 GMT

BRING ALL YOUR TOYS

• 1,682 sq. ft., 2 bath, 3 bdrm single story - MLS® $599,900 - REDUCED TO SELL NOW

Garden Home, Portland - Auto, recreation and hobby enthusiasts dream home. This 1682 sq ft traditional one level home with 3 bedrooms and 2 bathrooms offers hardwood floors, formal living room with built-in bookcase, family room with marble tile surround gas fireplace, spacious light and bright kitchen with nook, master suite with walk-in closet, tile bathroom, dual vanity and deep soaking tub, air conditioning, complete landscaping with two water features and a spacious deck. In addition to the 3 car attached garage with built-in cabinets and work areas, this property features RV parking and an additional 2 bay oversized garage with a hydrolic car lift, a shop with built-in cabinets and work areas, a separate office and a full bathroom. Seller has information on potential to divide lot for 2 additional 7500 sq ft lots. Buyer to do own due diligence.

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2 Story For Sale in Renaissance at Canyon Creek

GLENN EZELLE — Mon, 15 Jun 2009 00:49:00 GMT

Extraordinary Renaissance Model Home

• 3,328 sq. ft., 3 bath, 4 bdrm 2 story - MLS® $599,000

Renaissance at Canyon Creek, Wilsonville - Award winning Renaissance Design Center selected the extraordinary finishes of this Canyon Creek Model Home with over $150,000 in upgrades. This Earth Advantage Green home with clean air system features 5" hand scraped plank floors, upgraded carpet, decorative tile, accent painting, crown molding, wainscoting, accent drapes, valences, plantation shutters, designer light fixtures, stainless GE Profile appliances, double ovens, 5 burner gas stove, slab granite, ornate tile backsplash, raised panel alder cabinetry with chocolate glaze, surround sound system, spacious master suite with deep soaking tub and dual head tile shower, amazing outdoor living with stone gas fireplace, built-in 40" Capital stainless steel BBQ, refrigerator and stamped concrete covered patio with surround sound. Community pool and playground, 4 bedrooms, 3 bathrooms, 3328 square feet, large bonus room, home office with built-in desks and bookshelf, professionally landscaped front and back yards with sprinkler, decorative water feature with accent lighting, GE Profile Harmony washer and dryer, DirecTv satellite, Cat5 wiring, FIOS internet and phone, forced air with dual AC and furnaces and central vacuum.

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Single Story For Sale in Downtown

GLENN EZELLE — Mon, 15 Jun 2009 00:48:00 GMT

Eliot Tower Penthouse with Views

• 2,356 sq. ft., 3 bath, 2 bdrm single story - MLS® $1,600,000 - REDUCED $400,000

Downtown, Portland - Extraordinary Eliot Tower Penthouse with breathtaking 280 degree panoramic views of the city and West Hills. This 2356 square foot 18th floor NW corner penthouse with amazing views from every room offers top quality finishes. The gourmet kitchen has outstanding SubZero and Thermador stainless appliances, double oven, built-in wine refrigerator, granite counters and custom island with eating bar, the elegant living room features a floor to ceiling dual sided marble fireplace shared with the adjacent formal dining room, the generous master suite has a West Hills view, closet with organizer and a luxurious marble bathroom with glass shower and jetted tub. The Eliot Tower amenities include a meeting room, library, kitchen, roof top terrace, fitness center and concierge services.
Steel and glass construction with walls of windows
Expansive terrace
Hardwood floors throughout
2 luxury suites with marble bathrooms
2 side by side parking spaces in the secure garage
Generous extra storage unit next to parking
Prime downtown location next to the Streetcar

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