Sunday, January 23, 2011
MARKET RECAP 01/23/2010
The economic news stumbled out of the gate this week when the Commerce Department reported that homebuilders began work on the second fewest number of homes in more than fifty years in 2010, breaking ground on only 587,600 homes. Of course, the first fewest was the year before, 2009, when they broke ground on 554,000 homes, so there was an improvement.
The news quickly regained its footing, though. Builders appear to be planning more projects in 2011, based on permits rising 16.7 percent in December to a seasonally adjusted annual rate of 635,000 units, the best pace since last March. Fannie Mae is even more optimistic. It expects overall starts to increase 17.3 percent and hit 710,000 units this year, with another 42 percent increase to 1.1 million units in 2012, followed by a 42 percent gain to 1.5 million units in 2013.
As for the existing home market, RE/MAX reported a 13.2 percent increase in December sales. More encouraging, crisis hotspots Arizona and Florida produced double-digit yearly gains, proving once again the ironclad law of economics – lower prices equal more demand. According to RE/MAX CEO Margaret Kelly, “December's trends put the housing market in a strong position for growth as the home shopping season nears.”
The NAR corroborated RE/MAX's bullish outlook with bullish data of its own. The NAR reported that existing house sales increased 12 percent to a 5.28-million annual rate in December. Moreover, the number of homes on the market dropped 4.2 percent to 3.56 million units. At the current sales pace, it would take 8.1 months to sell these houses compared with 9.5 months at the end of November. An eight-to-nine month supply is considered consistent with stable prices.
Stable prices have been the defining characteristic of the mortgage market so far in 2011. The prime 30-year fixed-rate loan has been holding around 5 percent, vacillating only a few basis points in either direction. However, rates could be pressured higher if China continues to sell US government debt, particularly 10-year Treasury notes. Mortgage rates aren't directly tied to 10-year Treasury notes, but these instruments hold tremendous sway over the direction of long-term debt instruments, including mortgage-backed securities.
Therefore, it's worth repeating that although mortgage rates are off November's lows, they're still historically low. We doubt lower rates are in our future, and we are unsure how long price stability will last. At this point, we simply cannot offer any sound economic reason for people to wait on a refinance or a home purchase.
Economic
Indicator
Release
Date and Time
Consensus
Estimate
Analysis
Case-Shiller Home Price Index
(November)
Tues., Jan. 25,
9:00 am, et
0.4% (Decrease)
Important. Data released from other sources suggest the consensus estimate is low.
Mortgage Applications
Wed., Jan 26,
7:00 am, et
None
Important. Stable rates are reviving refinance activity.
New Home Sales
(December)
Wed., Jan 26,
10:00 am, et
285,000 (Annualized)
Important. Excessive inventory continues to weigh on sales.
Federal Reserve FOMC Meeting
Wed., Jan 26,
2:15 pm , et
Federal Funds Rate: 0.0% to 0.25%
Important. The Fed will hold the fed funds rate low, but a few board members are considering raising it.
Pending Home Sales Index
(December)
Thurs., Jan 27,
10:30 am , et
89 Index
Important. The index suggests an uptrend is waiting in 2011 home sales.
Gross Domestic Product
(4th Quarter 2010.)
Fri. Jan. 28,
8:30 am , et
3.5% (Annualized Increase)
Important. Economic growth appears to have accelerated in the closing months of 2010.
The Economy is More Than the Consumer.
Economists expend a lot of time and energy analyzing the consumer. It's understandable, given that personal consumption represents 70 percent of gross domestic product. However, GDP only measures the value of final output. It deliberately leaves out a big chunk of the economy – namely intermediate production or goods-in-process at the commodity, manufacturing, and wholesale stages.
A more thorough accounting of total spending at all stages actually doubles GDP. By this measure, the consumer represents only 30 percent of the economy, while business investment (including intermediate output) represents over 50 percent. In other words, businesses stimulate the economy as much, if not more so, than consumers.
Businesses make decisions based on two factors: current consumption and expected future consumption. We often forget the latter, which businesses gear up for by purchasing commodities, capital equipment and workers' services ahead of consumer sales. Therefore, while consumer spending might lag at the time, that doesn't mean the economy is lagging too. The good news is that business spending has been strong over the past few months, which we think portends better things for 2011.
The news quickly regained its footing, though. Builders appear to be planning more projects in 2011, based on permits rising 16.7 percent in December to a seasonally adjusted annual rate of 635,000 units, the best pace since last March. Fannie Mae is even more optimistic. It expects overall starts to increase 17.3 percent and hit 710,000 units this year, with another 42 percent increase to 1.1 million units in 2012, followed by a 42 percent gain to 1.5 million units in 2013.
As for the existing home market, RE/MAX reported a 13.2 percent increase in December sales. More encouraging, crisis hotspots Arizona and Florida produced double-digit yearly gains, proving once again the ironclad law of economics – lower prices equal more demand. According to RE/MAX CEO Margaret Kelly, “December's trends put the housing market in a strong position for growth as the home shopping season nears.”
The NAR corroborated RE/MAX's bullish outlook with bullish data of its own. The NAR reported that existing house sales increased 12 percent to a 5.28-million annual rate in December. Moreover, the number of homes on the market dropped 4.2 percent to 3.56 million units. At the current sales pace, it would take 8.1 months to sell these houses compared with 9.5 months at the end of November. An eight-to-nine month supply is considered consistent with stable prices.
Stable prices have been the defining characteristic of the mortgage market so far in 2011. The prime 30-year fixed-rate loan has been holding around 5 percent, vacillating only a few basis points in either direction. However, rates could be pressured higher if China continues to sell US government debt, particularly 10-year Treasury notes. Mortgage rates aren't directly tied to 10-year Treasury notes, but these instruments hold tremendous sway over the direction of long-term debt instruments, including mortgage-backed securities.
Therefore, it's worth repeating that although mortgage rates are off November's lows, they're still historically low. We doubt lower rates are in our future, and we are unsure how long price stability will last. At this point, we simply cannot offer any sound economic reason for people to wait on a refinance or a home purchase.
Economic
Indicator
Release
Date and Time
Consensus
Estimate
Analysis
Case-Shiller Home Price Index
(November)
Tues., Jan. 25,
9:00 am, et
0.4% (Decrease)
Important. Data released from other sources suggest the consensus estimate is low.
Mortgage Applications
Wed., Jan 26,
7:00 am, et
None
Important. Stable rates are reviving refinance activity.
New Home Sales
(December)
Wed., Jan 26,
10:00 am, et
285,000 (Annualized)
Important. Excessive inventory continues to weigh on sales.
Federal Reserve FOMC Meeting
Wed., Jan 26,
2:15 pm , et
Federal Funds Rate: 0.0% to 0.25%
Important. The Fed will hold the fed funds rate low, but a few board members are considering raising it.
Pending Home Sales Index
(December)
Thurs., Jan 27,
10:30 am , et
89 Index
Important. The index suggests an uptrend is waiting in 2011 home sales.
Gross Domestic Product
(4th Quarter 2010.)
Fri. Jan. 28,
8:30 am , et
3.5% (Annualized Increase)
Important. Economic growth appears to have accelerated in the closing months of 2010.
The Economy is More Than the Consumer.
Economists expend a lot of time and energy analyzing the consumer. It's understandable, given that personal consumption represents 70 percent of gross domestic product. However, GDP only measures the value of final output. It deliberately leaves out a big chunk of the economy – namely intermediate production or goods-in-process at the commodity, manufacturing, and wholesale stages.
A more thorough accounting of total spending at all stages actually doubles GDP. By this measure, the consumer represents only 30 percent of the economy, while business investment (including intermediate output) represents over 50 percent. In other words, businesses stimulate the economy as much, if not more so, than consumers.
Businesses make decisions based on two factors: current consumption and expected future consumption. We often forget the latter, which businesses gear up for by purchasing commodities, capital equipment and workers' services ahead of consumer sales. Therefore, while consumer spending might lag at the time, that doesn't mean the economy is lagging too. The good news is that business spending has been strong over the past few months, which we think portends better things for 2011.
Saturday, January 22, 2011
Westlake named nation's most affluent neighborhood
Westlake named nation's most affluent neighborhood
By Mike Drago/Editor
mdrago@dallasnews.com |
12:20 PM on Thu., Jan. 20, 2011 | Permalink
Westlake, that bastion of sports and entertainment celebrities and corporate moguls, has been named by Forbes as the nation's most affluent neighborhood.
The town, with its gated Vaquero community of estate-sized mansions, made the headlines in 2008, when the Jonas Brothers bought a swanky house. Westlake is popular with celebrities because of its proximity to D/FW International Airport, the privacy afforded within Vaquero and because the community is on a high-end golf course.
Forbes quotes Westlake Mayor Laura Wheat as being unsurprised, "since we are a very small town and we have a number of highly paid professional athletes who live here, CEOs of major corporations, members of a popular band of brothers ... There is no place like it."
To compile its list, Forbes used census data to look at average median household income estimates from 2005 to 2009. Westlake led the nation with an average $250,000. The next highest was the Village of Kenilworth, Ill., a Chicago suburb, at $247,000.
Forbes' story leads with the Jonas Brothers, but editors might have missed this tidbit: We're not sure the crooners even live there anymore. They put their mansion on the market in October. According to the listing broker, the JoBros sold their place for $2.2 million just before Christmas.
By Mike Drago/Editor
mdrago@dallasnews.com |
12:20 PM on Thu., Jan. 20, 2011 | Permalink
Westlake, that bastion of sports and entertainment celebrities and corporate moguls, has been named by Forbes as the nation's most affluent neighborhood.
The town, with its gated Vaquero community of estate-sized mansions, made the headlines in 2008, when the Jonas Brothers bought a swanky house. Westlake is popular with celebrities because of its proximity to D/FW International Airport, the privacy afforded within Vaquero and because the community is on a high-end golf course.
Forbes quotes Westlake Mayor Laura Wheat as being unsurprised, "since we are a very small town and we have a number of highly paid professional athletes who live here, CEOs of major corporations, members of a popular band of brothers ... There is no place like it."
To compile its list, Forbes used census data to look at average median household income estimates from 2005 to 2009. Westlake led the nation with an average $250,000. The next highest was the Village of Kenilworth, Ill., a Chicago suburb, at $247,000.
Forbes' story leads with the Jonas Brothers, but editors might have missed this tidbit: We're not sure the crooners even live there anymore. They put their mansion on the market in October. According to the listing broker, the JoBros sold their place for $2.2 million just before Christmas.
Friday, January 21, 2011
Texas releases $45 million more for first-time homebuyer tax credit
The Texas Department of Housing and Community Affairs recently made available a second round of funding for its first-time homebuyer tax credit program under its Texas Mortgage Credit Program.
The state agency just released $45 million of $500 million allocated for the program. The department released $50 million of the funds in May when the program was first implemented.
“Despite all the negatives we hear from other states, the fact is that the Texas economy — and the demand for homeownership — both remain quite healthy,” said Michael Gerber, executive director of the Texas agency. “Many families want and are ready to take that exciting step toward homeownership."
The Texas Mortgage Tax Program was the state's response to the expiration of the federal tax credit in April 2010, and is the single largest financing initiative for state homebuyers in the 27-year history of the tax program. The program is funded through a bond program, however, no one at the agency was immediately available to provide details concerning funding.
The program is designed to make housing more affordable to low- to middle-income Texas families who have not lived in a home for three years by offering borrowers a tax liability reduction. According to the agency, a borrower can receive a tax credit up to $2,000 annually, depending on which of two mortgage loan options they decide to take advantage of.
The first is an assisted loan option. Under this option, a borrower receives a 5.74% interest rate on a 30-year, fixed-rate mortgage, along with payment assistance on the down payment and closing costs up to 5% of the principal amount. This 5% assistance comes in the form of a 30-year repayable second-lien loan.
The second option is an unassisted loan, in which case the borrower receives a 30-year FRM at a 4.99% interest rate. State funds do not help with down payments or closing costs.
The benefit lasts throughout the life of the loan.
A borrower is required to take a homebuyer education class in order to qualify for the tax break. Homebuyer education is arguably one of the most important steps to homeowner sustainability, according to Marietta Rodriguez, national director for National Homeownership and Lending at NeighborWorks America.
"We believe strongly in pre-purchase homebuyer education before a mortgage product is selected," Rodriguez said in an interview, adding that the industry, and especially the government-sponsored enterprises, have shied away from this strategy recently.
"With that action, Fannie and Freddie are sending a message to the industry that counseling doesn't matter and that has strong ramifications on the industry as a whole."
Texans interested in the program must be earning up to 115% of the area median family income. For residents living in specific targeted areas of the state, such as places impacted by natural disaster, households may earn up to 140% of the average median income in the area and still qualify. In these cases, the first-time homebuyer requirement is waived.
Credit is available through the Federal Housing Administration, the Department of Veteran Affairs, the U.S. Department of Agriculture or one of many participating conventional mortgage lenders throughout the state.
“The Texas Mortgage Credit Program is another helpful yet responsible tool that TDHCA can offer to qualifying Texas families who are prepared to be homeowners,” said Gerber. “If you are ready to take that step toward homeownership, the state is ready to help you.”
Write to Christine Ricciardi.
The state agency just released $45 million of $500 million allocated for the program. The department released $50 million of the funds in May when the program was first implemented.
“Despite all the negatives we hear from other states, the fact is that the Texas economy — and the demand for homeownership — both remain quite healthy,” said Michael Gerber, executive director of the Texas agency. “Many families want and are ready to take that exciting step toward homeownership."
The Texas Mortgage Tax Program was the state's response to the expiration of the federal tax credit in April 2010, and is the single largest financing initiative for state homebuyers in the 27-year history of the tax program. The program is funded through a bond program, however, no one at the agency was immediately available to provide details concerning funding.
The program is designed to make housing more affordable to low- to middle-income Texas families who have not lived in a home for three years by offering borrowers a tax liability reduction. According to the agency, a borrower can receive a tax credit up to $2,000 annually, depending on which of two mortgage loan options they decide to take advantage of.
The first is an assisted loan option. Under this option, a borrower receives a 5.74% interest rate on a 30-year, fixed-rate mortgage, along with payment assistance on the down payment and closing costs up to 5% of the principal amount. This 5% assistance comes in the form of a 30-year repayable second-lien loan.
The second option is an unassisted loan, in which case the borrower receives a 30-year FRM at a 4.99% interest rate. State funds do not help with down payments or closing costs.
The benefit lasts throughout the life of the loan.
A borrower is required to take a homebuyer education class in order to qualify for the tax break. Homebuyer education is arguably one of the most important steps to homeowner sustainability, according to Marietta Rodriguez, national director for National Homeownership and Lending at NeighborWorks America.
"We believe strongly in pre-purchase homebuyer education before a mortgage product is selected," Rodriguez said in an interview, adding that the industry, and especially the government-sponsored enterprises, have shied away from this strategy recently.
"With that action, Fannie and Freddie are sending a message to the industry that counseling doesn't matter and that has strong ramifications on the industry as a whole."
Texans interested in the program must be earning up to 115% of the area median family income. For residents living in specific targeted areas of the state, such as places impacted by natural disaster, households may earn up to 140% of the average median income in the area and still qualify. In these cases, the first-time homebuyer requirement is waived.
Credit is available through the Federal Housing Administration, the Department of Veteran Affairs, the U.S. Department of Agriculture or one of many participating conventional mortgage lenders throughout the state.
“The Texas Mortgage Credit Program is another helpful yet responsible tool that TDHCA can offer to qualifying Texas families who are prepared to be homeowners,” said Gerber. “If you are ready to take that step toward homeownership, the state is ready to help you.”
Write to Christine Ricciardi.
Pricier houses’ sale and price gains drive up Dallas’ median sales price for 2010, but market for most homes fell
Pricier houses’ sale and price gains drive up Dallas’ median sales price for 2010, but market for most homes fell
Photo: DMN/Staff
INCLUDEPICTURE "http://www.dallasnews.com/skins/dmn/gfx/pixel.png" \* MERGEFORMATINET
By STEVE BROWN
Real Estate Editor
Published 20 January 2011 08:24 PM
More on this story
· See map of local area home sales
If you just go by the numbers, 2010 was a good year for Dallas-area home prices.
The median price of area homes sold by real estate agents rose 4 percent from a year earlier, according to Multiple Listing Service reports.
But the increase in home prices had more to do with what kind of homes folks bought last year — more expensive houses and fewer modest homes, a closer look at the numbers shows.
“Activity slowed much more dramatically at the entry-level price points than in the upper-level price points in the post-tax credit era,” said Ted Wilson of Dallas-based housing analyst Residential Strategies. “Thus, with lower activity on the entry level and increased activity at the higher prices, the median price has shifted higher.”
Wilson said home sales prices in most areas actually “inched lower” in 2010.
“This is not surprising since the inventory of homes for sale increased after the tax credit expired,” he said. “Excess inventory in any industry usually leads to some discounting or price reduction.”
But you can’t tell that by just looking at the price maps.
Median home prices were higher in 29 of the 46 Dallas-area residential districts The Dallas Morning News tracks each quarter. The data to make the comparisons comes from the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems.
Across the area, sales of houses priced at $250,000 and above rose 3.4 percent from a year ago, sales data shows, while purchases of more modest properties declined about 13 percent.
“Yes, no doubt some of the increases in overall price levels are attributable to the rebound in middle and upper-end market and decline in lower-end, first-time market,” said Dr. James Gaines, an economist with the Real Estate Center.
Gaines said that home values in North Texas are taking a hit from foreclosures, which were at record levels in 2010.
“What we’re seeing is that nondistressed home sales are trending up in value at just under ‘normal’ rates of increase, but the distressed sales — as best we can identify them — are falling in prices,” he said.
The biggest price declines last year were in areas with lots of home foreclosures, including Cedar Hill, Oak Cliff , Garland and Northwest Dallas.
Home sales numbers for 2010 are easier to figure out.
The number of pre-owned home purchases dropped in almost every area.
The only neighborhoods that saw significant increases in home sales were pricey districts where monied buyers were snapping up bargains.
Home sales jumped 30 percent in North Dallas, 29 percent in the Park Cities and 23 percent in Westlake-Trophy Club compared with 2009.
For all of the Dallas area, sales of pre-owned single-family homes fell about 8 percent in 2010 from 2009
LINK TO ARTICLE: http://www.dallasnews.com/business/headlines/20110120-pricier-houses’-sale-and-price-gains-drive-up-dallas’-median-sales-price-for-2010-but-market-for-most-homes-fell.ece
LINK TO INTERACTIVE MAP: http://www.dallasnews.com/business/area-home-sales/index.jsp
Photo: DMN/Staff
INCLUDEPICTURE "http://www.dallasnews.com/skins/dmn/gfx/pixel.png" \* MERGEFORMATINET
By STEVE BROWN
Real Estate Editor
Published 20 January 2011 08:24 PM
· See map of local area home sales
If you just go by the numbers, 2010 was a good year for Dallas-area home prices.
The median price of area homes sold by real estate agents rose 4 percent from a year earlier, according to Multiple Listing Service reports.
But the increase in home prices had more to do with what kind of homes folks bought last year — more expensive houses and fewer modest homes, a closer look at the numbers shows.
“Activity slowed much more dramatically at the entry-level price points than in the upper-level price points in the post-tax credit era,” said Ted Wilson of Dallas-based housing analyst Residential Strategies. “Thus, with lower activity on the entry level and increased activity at the higher prices, the median price has shifted higher.”
Wilson said home sales prices in most areas actually “inched lower” in 2010.
“This is not surprising since the inventory of homes for sale increased after the tax credit expired,” he said. “Excess inventory in any industry usually leads to some discounting or price reduction.”
But you can’t tell that by just looking at the price maps.
Median home prices were higher in 29 of the 46 Dallas-area residential districts The Dallas Morning News tracks each quarter. The data to make the comparisons comes from the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems.
Across the area, sales of houses priced at $250,000 and above rose 3.4 percent from a year ago, sales data shows, while purchases of more modest properties declined about 13 percent.
“Yes, no doubt some of the increases in overall price levels are attributable to the rebound in middle and upper-end market and decline in lower-end, first-time market,” said Dr. James Gaines, an economist with the Real Estate Center.
Gaines said that home values in North Texas are taking a hit from foreclosures, which were at record levels in 2010.
“What we’re seeing is that nondistressed home sales are trending up in value at just under ‘normal’ rates of increase, but the distressed sales — as best we can identify them — are falling in prices,” he said.
The biggest price declines last year were in areas with lots of home foreclosures, including Cedar Hill, Oak Cliff , Garland and Northwest Dallas.
Home sales numbers for 2010 are easier to figure out.
The number of pre-owned home purchases dropped in almost every area.
The only neighborhoods that saw significant increases in home sales were pricey districts where monied buyers were snapping up bargains.
Home sales jumped 30 percent in North Dallas, 29 percent in the Park Cities and 23 percent in Westlake-Trophy Club compared with 2009.
For all of the Dallas area, sales of pre-owned single-family homes fell about 8 percent in 2010 from 2009
LINK TO ARTICLE: http://www.dallasnews.com/business/headlines/20110120-pricier-houses’-sale-and-price-gains-drive-up-dallas’-median-sales-price-for-2010-but-market-for-most-homes-fell.ece
LINK TO INTERACTIVE MAP: http://www.dallasnews.com/business/area-home-sales/index.jsp
Wednesday, January 19, 2011
Short Sale is often the best way to avoid Foreclosure
DFW home sellers facing foreclosure are being helped using little known short sale strategies developed by Kim Raine. Kim Raine has been trained in this specialty and have all achieved the CDPE (Certified Distressed Property Expert) designation which uniquely qualifies them to help families in this unfortunate situation.
This real estate market has caused unbearable stress and heartache for many local families. A distressed family often makes decisions based on emotion rather than logic and knowledge of the situation they are in.
Kim Raine is here to help you in such distressed situations and ultimately help you fight off foreclosures. The extensive knowledge that we have obtained will greatly benefit the community in which we all live. While experiencing financial distress is extremely difficult for any family, the process of finding a valuable real estate professional compatible with your situation shouldn’t be. Kim Raine is committed to helping distressed families find better solutions for their future. With current conditions and our newly acquired CDPE designations, we have all of the essential tools at hand to ensure a lightning speed “Short Sale” allowing for zero balances on mortgages, while saving your credit at the same time. As your CDPE agent, we will explore every option with you and work towards a solid resolution. You have gone through enough, let us help!
It is estimated that most American families can only maintain their current living expenses for sixty (60) days or less when income is interrupted for any reason. This type of distress causes tremendous strain on families. Many people do not even realize that they are distressed, and as a result are finding their homes are in jeopardy. Many learn of Short Sales after it is too late. Eighty percent (80%) of homes in foreclosure today were never even on the market! Did you know that, according to the current conditions, distressed families may qualify for a Short Sale before even missing their first mortgage payment? With our CDPE designation, we not only have the means to easily identify a distressed family, we also have the strong capability to rescue them with our dedicated and knowledgeable professional guidance.
“Distress” can be caused by any of the following:
Unmanageable Debt
Job Loss
Medical Bills
Serious Illness
Incarceration
Divorce
Death
Military Service
Payment Increase and Mortgage Adjustments
Relocation
Reduced Income
Insurance or Tax Increases
While it may not seem like it now, there will come a time where your current financial troubles will pass. Let us fight for you and help you to avoid a devastating financial consequence so many people face today. With the help of Kim Raine, no stone will be left unturned!
Rescuing families one home at a time!
This real estate market has caused unbearable stress and heartache for many local families. A distressed family often makes decisions based on emotion rather than logic and knowledge of the situation they are in.
Kim Raine is here to help you in such distressed situations and ultimately help you fight off foreclosures. The extensive knowledge that we have obtained will greatly benefit the community in which we all live. While experiencing financial distress is extremely difficult for any family, the process of finding a valuable real estate professional compatible with your situation shouldn’t be. Kim Raine is committed to helping distressed families find better solutions for their future. With current conditions and our newly acquired CDPE designations, we have all of the essential tools at hand to ensure a lightning speed “Short Sale” allowing for zero balances on mortgages, while saving your credit at the same time. As your CDPE agent, we will explore every option with you and work towards a solid resolution. You have gone through enough, let us help!
It is estimated that most American families can only maintain their current living expenses for sixty (60) days or less when income is interrupted for any reason. This type of distress causes tremendous strain on families. Many people do not even realize that they are distressed, and as a result are finding their homes are in jeopardy. Many learn of Short Sales after it is too late. Eighty percent (80%) of homes in foreclosure today were never even on the market! Did you know that, according to the current conditions, distressed families may qualify for a Short Sale before even missing their first mortgage payment? With our CDPE designation, we not only have the means to easily identify a distressed family, we also have the strong capability to rescue them with our dedicated and knowledgeable professional guidance.
“Distress” can be caused by any of the following:
Unmanageable Debt
Job Loss
Medical Bills
Serious Illness
Incarceration
Divorce
Death
Military Service
Payment Increase and Mortgage Adjustments
Relocation
Reduced Income
Insurance or Tax Increases
While it may not seem like it now, there will come a time where your current financial troubles will pass. Let us fight for you and help you to avoid a devastating financial consequence so many people face today. With the help of Kim Raine, no stone will be left unturned!
Rescuing families one home at a time!
Sunday, January 16, 2011
Banks Loosen Purse Strings
Banks Loosen Purse Strings
By RUTH SIMON
WALL STREET JOURNAL
U.S. banks are expanding their loans to consumers for the first time since the credit crisis erupted, as lending standards begin to loosen and demand for new loans edges higher.
J.P. Morgan Chase & Co., which Friday posted a 47% profit jump for its fourth quarter, said its total loans increased 6% since the end of September. While most of the loan growth came from loans to businesses, the nation's No. 2 bank by assets said total credit-card balances rose for the first time in two years.
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Consumers were more willing to pull out their plastic. Credit-card usage was up 10% year-over-year. The bank issued 3.4 million new credit cards in the fourth quarter, up 4% from the same period a year earlier.
"We see the consumer is getting stronger," said J.P. Morgan Chairman James Dimon. He added that many Americans are still saving and paying down their debts, which he said will make them better borrowers.
The New York bank's profit surge and optimism that more consumers and businesses are looking for loans triggered a rally Friday in financial stocks. That helped push the Dow Jones Industrial Average to its highest level since June 2008. The Dow, which includes J.P. Morgan shares, rose 55.48 points, or 0.47%, to 11787.28, finishing the week up nearly 1%. It was the bellwether average's seventh weekly gain in a row, during which it has gained 6%.
Signs of a lending rebound in business loans already were evident at some big U.S. banks, and Mr. Dimon cited "fairly broad-based strength across corporate, middle market, even small business." But consumer lending has lagged behind because of unemployment, foreclosures and the reluctance of many Americans to go deeper into debt.
Now, the economy is gaining momentum, as shown by the Commerce Department's report Friday that consumers spent more for the sixth straight month. That means profit-hungry bankers are growing more eager to make new loans, especially to borrowers with strong credit histories.
When other banks post earnings in the coming week, many analysts expect more evidence that at least the healthiest lenders are shifting focus from grappling with troubled loans to making new ones. That would be bullish for many sectors of the economy, such as auto dealers, retailers and home builders.
"The rapid decline in job losses has made everyone more comfortable to lend," said Roger Hochschild, president of Discover Financial Services. The credit-card issuer expects higher account balances, newly opened accounts and balance transfers on cards wooed away from rival issuers to result in "modest" growth in Discover's overall credit-card portfolio in the second half of 2011.
New-loan growth has "been slow and sluggish" but is approaching a level that will be strong enough to offset borrowers who are paying down debts, said Charles Kim, chief financial officer at Commerce Bancshares Inc. On Thursday, the regional bank in Kansas City, Mo., posted a 25% profit jump from the year-ago quarter. Home-equity and installment loans are increasing, and credit-card volume grew because of "better-than-expected spending," Mr. Kim added.
In the third quarter, lenders made more than 36 million consumer loans, up 3.7% from a year earlier, according to Equifax Inc. and Moody's Analytics. That was the first year-over-year gain since the crisis began. Consumer-loan originations are expected to climb 5.9% this year, much higher than the slim 1.1% increase in 2010. Still, the amount of available new credit is just half of its prerecession level, according to the latest figures from Equifax.
The totals include bank-issued and retail credit cards, auto loans, consumer-finance loans, home-equity lending and student loans. The totals exclude mortgages, partly because home-loan volume is driven by refinancing.
The consumer-loan uptick is most pronounced in the auto sector, where the dollar value of loans originated last year topped the 2009 total, Equifax estimates. The percentage of auto-loan applications by prime borrowers that were approved rose to 91% in December from 82% a year earlier, said CNW Research. Among so-called near-prime borrowers with credit scores of 620 to 749, the approval rate jumped to 83% from 70%.In addition, down-payment requirements have loosened, and "there are plenty of resources for financing," said John McEleney, president of McEleney Chevrolet and McEleney Toyota in Clinton, Iowa.
Robyn Crouse, who lives in Clinton and works at a call center, financed her recent purchase of a 2008 Toyota Corolla with a loan from a credit union that offered a 5.99% interest rate and $500 down payment. A year ago, she couldn't get a loan from a local bank, because it considered her too risky and said she didn't have enough of a credit history. "It was a whole different experience" this time, she said.
At J.P. Morgan, auto-loan originations fell 19% year-over-year, due to more competition.
Credit-card companies, which had reined in their pitches because of higher loan losses and new regulations, are now also stepping up their marketing. In the fourth quarter, direct-mail solicitations doubled from a year earlier, according to Synovate, a unit of Aegis Group PLC.
"It's not just the super-prime" borrowers who are being barraged with new offers, said Anuj Shahani, director of Synovate's Competitive Tracking Services. Mailings to subprime borrowers surged 90%.
View Full Image
Some of those offers are starting to pay off for card issuers. In October, the latest month for which figures are available, banks issued 3.3 million new credit cards, up 21% from October 2009, according to Equifax.
And while many borrowers continue to pay down debt, credit-card balances have also begun to rebound. Bank of America CEO Brian Moynihan told analysts last month that industrywide, credit-card holders who carry balances "have actually started to borrow just a little bit more: not a lot, but 3% or 5%."
At Discover, customers who revolve their credit-card balances increased their spending in September, October and November. Barclays Capital estimates that loans will grow by 2% this year at American Express Co. and 5% at Discover and Capital One Financial Corp.
Home-equity lending, which dried up when home prices fell, is on the comeback trail. Originations of home-equity lines increased in October, the first monthly gain since the mortgage crisis, Equifax said. Terms for home-equity loans have loosened in recent weeks, said Stephen Calk, chairman and CEO of mortgage banker Chicago Bancorp. Some small banks have raised the maximum amount of a home's value that can be financed to 90% from 80%.
Some borrowers are using home-equity loans for home improvements, to avoid mortgage insurance or to escape the higher interest rates charged on jumbo mortgages. Jumbo loans are too big for government backing.
Beth and Sean Smith took out a home-equity line of credit this month to help finance the purchase of a 4,000 square-foot, four-bedroom home in Indianapolis. "It gave us the flexibility we needed to get into a house that we couldn't have afforded if we didn't do that," Ms. Smith said.
Write to Ruth Simon at ruth.simon@wsj.com
By RUTH SIMON
WALL STREET JOURNAL
U.S. banks are expanding their loans to consumers for the first time since the credit crisis erupted, as lending standards begin to loosen and demand for new loans edges higher.
J.P. Morgan Chase & Co., which Friday posted a 47% profit jump for its fourth quarter, said its total loans increased 6% since the end of September. While most of the loan growth came from loans to businesses, the nation's No. 2 bank by assets said total credit-card balances rose for the first time in two years.
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Consumers were more willing to pull out their plastic. Credit-card usage was up 10% year-over-year. The bank issued 3.4 million new credit cards in the fourth quarter, up 4% from the same period a year earlier.
"We see the consumer is getting stronger," said J.P. Morgan Chairman James Dimon. He added that many Americans are still saving and paying down their debts, which he said will make them better borrowers.
The New York bank's profit surge and optimism that more consumers and businesses are looking for loans triggered a rally Friday in financial stocks. That helped push the Dow Jones Industrial Average to its highest level since June 2008. The Dow, which includes J.P. Morgan shares, rose 55.48 points, or 0.47%, to 11787.28, finishing the week up nearly 1%. It was the bellwether average's seventh weekly gain in a row, during which it has gained 6%.
Signs of a lending rebound in business loans already were evident at some big U.S. banks, and Mr. Dimon cited "fairly broad-based strength across corporate, middle market, even small business." But consumer lending has lagged behind because of unemployment, foreclosures and the reluctance of many Americans to go deeper into debt.
Now, the economy is gaining momentum, as shown by the Commerce Department's report Friday that consumers spent more for the sixth straight month. That means profit-hungry bankers are growing more eager to make new loans, especially to borrowers with strong credit histories.
When other banks post earnings in the coming week, many analysts expect more evidence that at least the healthiest lenders are shifting focus from grappling with troubled loans to making new ones. That would be bullish for many sectors of the economy, such as auto dealers, retailers and home builders.
"The rapid decline in job losses has made everyone more comfortable to lend," said Roger Hochschild, president of Discover Financial Services. The credit-card issuer expects higher account balances, newly opened accounts and balance transfers on cards wooed away from rival issuers to result in "modest" growth in Discover's overall credit-card portfolio in the second half of 2011.
New-loan growth has "been slow and sluggish" but is approaching a level that will be strong enough to offset borrowers who are paying down debts, said Charles Kim, chief financial officer at Commerce Bancshares Inc. On Thursday, the regional bank in Kansas City, Mo., posted a 25% profit jump from the year-ago quarter. Home-equity and installment loans are increasing, and credit-card volume grew because of "better-than-expected spending," Mr. Kim added.
In the third quarter, lenders made more than 36 million consumer loans, up 3.7% from a year earlier, according to Equifax Inc. and Moody's Analytics. That was the first year-over-year gain since the crisis began. Consumer-loan originations are expected to climb 5.9% this year, much higher than the slim 1.1% increase in 2010. Still, the amount of available new credit is just half of its prerecession level, according to the latest figures from Equifax.
The totals include bank-issued and retail credit cards, auto loans, consumer-finance loans, home-equity lending and student loans. The totals exclude mortgages, partly because home-loan volume is driven by refinancing.
The consumer-loan uptick is most pronounced in the auto sector, where the dollar value of loans originated last year topped the 2009 total, Equifax estimates. The percentage of auto-loan applications by prime borrowers that were approved rose to 91% in December from 82% a year earlier, said CNW Research. Among so-called near-prime borrowers with credit scores of 620 to 749, the approval rate jumped to 83% from 70%.In addition, down-payment requirements have loosened, and "there are plenty of resources for financing," said John McEleney, president of McEleney Chevrolet and McEleney Toyota in Clinton, Iowa.
Robyn Crouse, who lives in Clinton and works at a call center, financed her recent purchase of a 2008 Toyota Corolla with a loan from a credit union that offered a 5.99% interest rate and $500 down payment. A year ago, she couldn't get a loan from a local bank, because it considered her too risky and said she didn't have enough of a credit history. "It was a whole different experience" this time, she said.
At J.P. Morgan, auto-loan originations fell 19% year-over-year, due to more competition.
Credit-card companies, which had reined in their pitches because of higher loan losses and new regulations, are now also stepping up their marketing. In the fourth quarter, direct-mail solicitations doubled from a year earlier, according to Synovate, a unit of Aegis Group PLC.
"It's not just the super-prime" borrowers who are being barraged with new offers, said Anuj Shahani, director of Synovate's Competitive Tracking Services. Mailings to subprime borrowers surged 90%.
View Full Image
Some of those offers are starting to pay off for card issuers. In October, the latest month for which figures are available, banks issued 3.3 million new credit cards, up 21% from October 2009, according to Equifax.
And while many borrowers continue to pay down debt, credit-card balances have also begun to rebound. Bank of America CEO Brian Moynihan told analysts last month that industrywide, credit-card holders who carry balances "have actually started to borrow just a little bit more: not a lot, but 3% or 5%."
At Discover, customers who revolve their credit-card balances increased their spending in September, October and November. Barclays Capital estimates that loans will grow by 2% this year at American Express Co. and 5% at Discover and Capital One Financial Corp.
Home-equity lending, which dried up when home prices fell, is on the comeback trail. Originations of home-equity lines increased in October, the first monthly gain since the mortgage crisis, Equifax said. Terms for home-equity loans have loosened in recent weeks, said Stephen Calk, chairman and CEO of mortgage banker Chicago Bancorp. Some small banks have raised the maximum amount of a home's value that can be financed to 90% from 80%.
Some borrowers are using home-equity loans for home improvements, to avoid mortgage insurance or to escape the higher interest rates charged on jumbo mortgages. Jumbo loans are too big for government backing.
Beth and Sean Smith took out a home-equity line of credit this month to help finance the purchase of a 4,000 square-foot, four-bedroom home in Indianapolis. "It gave us the flexibility we needed to get into a house that we couldn't have afforded if we didn't do that," Ms. Smith said.
Write to Ruth Simon at ruth.simon@wsj.com
A Guide to Loving Winter Greens
A Guide to Loving Winter Greens
Think you don't want to eat chard and kale? Clearly you haven't tried the eight inspired recipes on the next page
Photographs by David Prince for The Wall Street Journal, Food Styling by Brett Kurzweil
Clockwise from top left: turnip greens, collard greens, swiss chard, chicory, kale and cavolo nero.
Brave a cold walk through a farmers' market anywhere other than Southern California right now and you'll likely tire of seeing so much that's big, leafy and green. Multiple varieties of kale, chicory and mustard greens are in season with a vengeance, crowding out colorful produce and dulling our culinary creativity. Summer bounty like tomatoes and corn we buy up blindly, figuring we'll find something to do with them—or just eat them plain. But hulking bunches of cavolo nero? Not always the most mouthwatering prospect. Yet greens are versatile, flavorful and bursting with the kind of nutrients we're depleted of in the wake of the holidays. And there are all kinds of interesting and, yes, delicious ways to cook them, as chefs around the country are proving: They're spiking collards with bright Asian flavors, throwing chicory on the grill and shredding kale into refreshing winter salads. Turn the page for eight recipes that will keep you entertained until that first tender asparagus spear shows up.
—Katherine Wheelock
Wilted Collards With Ginger and Shoyu
A light, flavorful dish to accompany steamed fish or roasted pork—or simply serve over a big bowl of rice. Serves 4.
Blanch 2 pounds baby collard greens—stemmed, leaves cut into ½-inch strips—for 30 seconds in a large pot of boiling salted water and shock them in ice water. Drain and squeeze as dry as possible. // Transfer collards to a large bowl and toss with your fingers to separate, adding 2 tablespoons shoyu or regular soy sauce and ½ teaspoon toasted sesame oil and distributing evenly. Heat 2 tablespoons olive oil in a medium sauté pan over medium-low heat. Add 2 tablespoons thinly julienned ginger, and 2 crumbled dried red chiles. // Sauté for 1 minute, raise the heat to medium and add the collards. Season with salt and toss to coat. Add 2/3 cup chicken stock and cook, stirring frequently, for 3 minutes. Season with additional salt if necessary and serve.
—Andrea Reusing of Lantern, Chapel Hill, N.C.; author of "Cooking in the Moment" (April 2011, Clarkson Potter)
Parmesan Broth With Swiss Chard and White Beans
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Parmesan broth with Swiss chard and white beans
A deeply satisfying soup that can compete with chicken noodle as a winter cure-all.Serves 4 to 6.
Over low heat, steep 8 cups chicken stock with 8 ounces Parmesan rinds for about 45 minutes, until the rinds are soft. Strain the liquid and reserve. // In a heavy-bottomed soup pot, sauté 1 smashed garlic clove in 2 tablespoons olive oil over medium heat until garlic just begins to color. Add 1 dried red chili, crumbled; 4 cups loosely packed Swiss chard, stems removed and leaves cut into ribbons; and stir to coat. //Add the warm, strained stock and 2 cups canned cannellini beans and bring to a simmer. Season with salt and pepper and add a teaspoon lemon zest. To serve, ladle soup over a slice of toasted country bread and drizzle with olive oil. —Sara Jenkins of Porsena and Porchetta, New York
Mustard Greens Braised With Ginger, Cilantro and Rice
A quick braise and a one-two punch of ginger and cilantro that adds up to a restorative one-pot meal. Serves 4 to 6.
Heat 3 tablespoons oilive oil in a wide, heavy pot over medium heat. Add 1 onion, diced; ¼ cup white rice; 2 tablespoons finely chopped fresh ginger; and 1 teaspoon each ground cumin and paprika. Stir to coat with oil. Cook for 2 minutes, then add 1 cup chopped cilantro (leaves and stems) and 2 bunches mustard greens, stems removed. Sprinkle with 1 teaspoon salt, cover, and cook until volume reduces, about 10 to 15 minutes. // Stir, reduce heat to low, cover and cook slowly for 30 to 40 minutes. Check occasionally and if the pan seems dry, add a few tablespoons water. // Cook 10 minutes more, until greens are so tender they're silky, and serve warm or at room temperature, with plain yogurt spooned on top or just a squeeze of fresh lemon. —Deborah Madison, author of "Local Flavors" (Clarkson Potter)
Grilled Chicories With a Crispy Fried Egg
Lightly charred winter lettuces bathed in pancetta dressing to erase all memories of summer's grilled vegetables. Serves 4. Place a handful of outer leaves from four bunches of mixed chicories like escarole, frisée, radicchio and curly endive in a bowl along with leaves separated from the base of 1 Belgian endive and add some olive oil, salt, pepper, a splash of water and mix. // In a separate bowl, combine ¼ cup red wine vinegar and 1 minced shallot and whisk in 2 tablespoons honey, 3 tablespoons rendered pancetta or bacon fat (from about ¼ pound pancetta, sautéed in a pan over medium heat) and ½ cup olive oil, and season with salt and pepper. The dressing should taste sharp but balanced by the honey. // Pile the chicories on a hot grill pan and move them around with tongs so leaves get slightly charred and steamed at the same time. When they begin to soften, return them to a bowl. Meanwhile, get a cast-iron skillet hot and fry a farm egg sunny-side up until the whites begin to set but the yolk is still runny. // Toss the still-warm chicories with the dressing and serve with the crispy egg and a bit of shaved Parmesan on top.
—Travis Lett of Gjelina, Venice Beach, Calif.
Kale With Kimchi Butter
A cure for kale fatigue in the form of steamed greens drizzled with umami-rich kimchi butter—the perfect match for grilled steak. Serves 4 to 6 as a side dish.
Trim, wash and blanch 3 bunches each of curly kale and Tuscan kale in a big pot of boiling salted water for about 3 minutes. Shock the kale in ice water for 1 minute, then drain and spread on paper towels to dry. // To make kimchi butter: Bring 2/3 cup water to boil in a small pot. Cut 8 ounces unsalted butter into small chunks and whisk into the water. Reduce the heat to low and add 1 teaspoon honey, 2 tablespoons fish sauce (preferably Three Crabs brand), 2 tablespoons sambal sauce (available at Asian markets), 1 teaspoon finely grated garlic, 2 tablespoons finely grated fresh ginger and ¼ cup rice wine vinegar. Whisk until mixed well. // To serve, warm the kale leaves in a pot with a splash of water and heat the kimchi butter. Distribute the kale on plates and drizzle over about 3 tablespoons kimichi butter per plate. Finish with a sprinkle of toasted pine nuts and fleur de sel.
—Ludo Lefebvre of LudoBites, Los Angeles
Delicata Squash and Kale Salad
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Delicata Squash and Kale Salad
A zesty marriage of two winter heavyweights—no slow-cooking required. Serves 4 to 6.
Preheat oven to 400 degrees. Peel a medium squash's skin off with a knife, not a peeler. Cut the squash in half lengthwise and scoop out the seeds with a spoon, then cut it into pieces about 2 inches long and 1 inch thick. Place the squash on a baking sheet lined with foil, drizzle with olive oil, season with salt and pepper and bake for 25 minutes, until very tender. // Remove the squash from the oven and toss with ½ tablespoon chopped parsley, the zest of half an orange and a drizzle of olive oil; let cool. // In a mixing bowl, toss the cooled squash with half a minced shallot, ½ cup raw shredded kale, ¼ cup shaved Parmesan, 1 tablespoon shaved radish, 1 tablespoon crushed toasted pecans, ½ tablespoon each of chopped parsley and chives and 3 teaspoons fresh-squeezed lemon juice. Drizzle with olive oil, and season with salt and pepper to taste.
—Michael Paley of Proof on Main, Louisville, Ky.
Pasta With Mustard Greens and Lamb Sausage
A quick, hardy pasta guaranteed to become a weeknight staple—and shave minutes off your time spent staring down farmers' market mustard greens. Serves 4 to 6.
Bring a large pot of heavily salted water to boil. Season 2 pounds ground lamb with 3 cloves garlic, finely chopped; 2 tablespoons crushed red pepper; 1 tablespoon dried oregano; and a pinch of salt. Heat 2 tablespoons olive oil in a large, heavy-bottomed pot over medium heat. // Add the seasoned lamb and cook for 5 minutes, breaking it into pieces with a spoon to prevent large clumps. Add ¼ cup heavy cream and 2 tablespoons water and let it cook down until only a couple of tablespoons of liquid remain. Add 1 bunch mustard greens, stems removed and leaves roughly chopped, and let wilt. // Cook 1 pound of bucatini, maccheroncini or anneloni according to package instructions. Drain, toss immediately with sauce, and toss again with ¼ cup grated Pecorino. If you like, add 3 tablespoons breadcrumbs crisped in hot olive oil in a frying pan. Adjust seasoning and serve.
—Sara Jenkins
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Cavolo Nero Caesar Salad
Cavolo Nero Caesar Salad
Kale Caesar! A clever, nutritionally superior twist on the classic salad—complete with DIY croutons and a heap of Parmesan. Serves 4 to 6. To make the dressing, place the zest of 1 lemon, 3 cloves peeled garlic and 6 olive-oil-packed anchovy fillets in a mortar and pestle and pound into a thick paste. Add 1 egg yolk, a pinch of salt and a squeeze of lemon juice and stir thoroughly to combine. While stirring, slowly stir in ½ cup of a total of 2 cups olive oil. // Continue to add a slow stream of olive oil, periodically stopping to add a squeeze of lemon. Add more salt and lemon juice to taste. Add water as needed to thin the dressing to the consistency of heavy cream. To make croutons, toss a few torn-up slices of ciabatta or whole wheat bread with olive oil and salt and toast in the oven at 375 degrees until just golden. // For the salad, combine 2 pounds cavolo nero (also called Tuscan, Lacinato or Dinosaur kale), center stems removed and leaves torn, with croutons in a large bowl. Pour dressing over the top and toss to coat. Add ½ cup grated or shaved Parmesan, toss again, and serve.
—Ignacio Mattos of Il Buco, New York
Think you don't want to eat chard and kale? Clearly you haven't tried the eight inspired recipes on the next page
Photographs by David Prince for The Wall Street Journal, Food Styling by Brett Kurzweil
Clockwise from top left: turnip greens, collard greens, swiss chard, chicory, kale and cavolo nero.
Brave a cold walk through a farmers' market anywhere other than Southern California right now and you'll likely tire of seeing so much that's big, leafy and green. Multiple varieties of kale, chicory and mustard greens are in season with a vengeance, crowding out colorful produce and dulling our culinary creativity. Summer bounty like tomatoes and corn we buy up blindly, figuring we'll find something to do with them—or just eat them plain. But hulking bunches of cavolo nero? Not always the most mouthwatering prospect. Yet greens are versatile, flavorful and bursting with the kind of nutrients we're depleted of in the wake of the holidays. And there are all kinds of interesting and, yes, delicious ways to cook them, as chefs around the country are proving: They're spiking collards with bright Asian flavors, throwing chicory on the grill and shredding kale into refreshing winter salads. Turn the page for eight recipes that will keep you entertained until that first tender asparagus spear shows up.
—Katherine Wheelock
Wilted Collards With Ginger and Shoyu
A light, flavorful dish to accompany steamed fish or roasted pork—or simply serve over a big bowl of rice. Serves 4.
Blanch 2 pounds baby collard greens—stemmed, leaves cut into ½-inch strips—for 30 seconds in a large pot of boiling salted water and shock them in ice water. Drain and squeeze as dry as possible. // Transfer collards to a large bowl and toss with your fingers to separate, adding 2 tablespoons shoyu or regular soy sauce and ½ teaspoon toasted sesame oil and distributing evenly. Heat 2 tablespoons olive oil in a medium sauté pan over medium-low heat. Add 2 tablespoons thinly julienned ginger, and 2 crumbled dried red chiles. // Sauté for 1 minute, raise the heat to medium and add the collards. Season with salt and toss to coat. Add 2/3 cup chicken stock and cook, stirring frequently, for 3 minutes. Season with additional salt if necessary and serve.
—Andrea Reusing of Lantern, Chapel Hill, N.C.; author of "Cooking in the Moment" (April 2011, Clarkson Potter)
Parmesan Broth With Swiss Chard and White Beans
View Full Image
Parmesan broth with Swiss chard and white beans
A deeply satisfying soup that can compete with chicken noodle as a winter cure-all.Serves 4 to 6.
Over low heat, steep 8 cups chicken stock with 8 ounces Parmesan rinds for about 45 minutes, until the rinds are soft. Strain the liquid and reserve. // In a heavy-bottomed soup pot, sauté 1 smashed garlic clove in 2 tablespoons olive oil over medium heat until garlic just begins to color. Add 1 dried red chili, crumbled; 4 cups loosely packed Swiss chard, stems removed and leaves cut into ribbons; and stir to coat. //Add the warm, strained stock and 2 cups canned cannellini beans and bring to a simmer. Season with salt and pepper and add a teaspoon lemon zest. To serve, ladle soup over a slice of toasted country bread and drizzle with olive oil. —Sara Jenkins of Porsena and Porchetta, New York
Mustard Greens Braised With Ginger, Cilantro and Rice
A quick braise and a one-two punch of ginger and cilantro that adds up to a restorative one-pot meal. Serves 4 to 6.
Heat 3 tablespoons oilive oil in a wide, heavy pot over medium heat. Add 1 onion, diced; ¼ cup white rice; 2 tablespoons finely chopped fresh ginger; and 1 teaspoon each ground cumin and paprika. Stir to coat with oil. Cook for 2 minutes, then add 1 cup chopped cilantro (leaves and stems) and 2 bunches mustard greens, stems removed. Sprinkle with 1 teaspoon salt, cover, and cook until volume reduces, about 10 to 15 minutes. // Stir, reduce heat to low, cover and cook slowly for 30 to 40 minutes. Check occasionally and if the pan seems dry, add a few tablespoons water. // Cook 10 minutes more, until greens are so tender they're silky, and serve warm or at room temperature, with plain yogurt spooned on top or just a squeeze of fresh lemon. —Deborah Madison, author of "Local Flavors" (Clarkson Potter)
Grilled Chicories With a Crispy Fried Egg
Lightly charred winter lettuces bathed in pancetta dressing to erase all memories of summer's grilled vegetables. Serves 4. Place a handful of outer leaves from four bunches of mixed chicories like escarole, frisée, radicchio and curly endive in a bowl along with leaves separated from the base of 1 Belgian endive and add some olive oil, salt, pepper, a splash of water and mix. // In a separate bowl, combine ¼ cup red wine vinegar and 1 minced shallot and whisk in 2 tablespoons honey, 3 tablespoons rendered pancetta or bacon fat (from about ¼ pound pancetta, sautéed in a pan over medium heat) and ½ cup olive oil, and season with salt and pepper. The dressing should taste sharp but balanced by the honey. // Pile the chicories on a hot grill pan and move them around with tongs so leaves get slightly charred and steamed at the same time. When they begin to soften, return them to a bowl. Meanwhile, get a cast-iron skillet hot and fry a farm egg sunny-side up until the whites begin to set but the yolk is still runny. // Toss the still-warm chicories with the dressing and serve with the crispy egg and a bit of shaved Parmesan on top.
—Travis Lett of Gjelina, Venice Beach, Calif.
Kale With Kimchi Butter
A cure for kale fatigue in the form of steamed greens drizzled with umami-rich kimchi butter—the perfect match for grilled steak. Serves 4 to 6 as a side dish.
Trim, wash and blanch 3 bunches each of curly kale and Tuscan kale in a big pot of boiling salted water for about 3 minutes. Shock the kale in ice water for 1 minute, then drain and spread on paper towels to dry. // To make kimchi butter: Bring 2/3 cup water to boil in a small pot. Cut 8 ounces unsalted butter into small chunks and whisk into the water. Reduce the heat to low and add 1 teaspoon honey, 2 tablespoons fish sauce (preferably Three Crabs brand), 2 tablespoons sambal sauce (available at Asian markets), 1 teaspoon finely grated garlic, 2 tablespoons finely grated fresh ginger and ¼ cup rice wine vinegar. Whisk until mixed well. // To serve, warm the kale leaves in a pot with a splash of water and heat the kimchi butter. Distribute the kale on plates and drizzle over about 3 tablespoons kimichi butter per plate. Finish with a sprinkle of toasted pine nuts and fleur de sel.
—Ludo Lefebvre of LudoBites, Los Angeles
Delicata Squash and Kale Salad
View Full Image
Delicata Squash and Kale Salad
A zesty marriage of two winter heavyweights—no slow-cooking required. Serves 4 to 6.
Preheat oven to 400 degrees. Peel a medium squash's skin off with a knife, not a peeler. Cut the squash in half lengthwise and scoop out the seeds with a spoon, then cut it into pieces about 2 inches long and 1 inch thick. Place the squash on a baking sheet lined with foil, drizzle with olive oil, season with salt and pepper and bake for 25 minutes, until very tender. // Remove the squash from the oven and toss with ½ tablespoon chopped parsley, the zest of half an orange and a drizzle of olive oil; let cool. // In a mixing bowl, toss the cooled squash with half a minced shallot, ½ cup raw shredded kale, ¼ cup shaved Parmesan, 1 tablespoon shaved radish, 1 tablespoon crushed toasted pecans, ½ tablespoon each of chopped parsley and chives and 3 teaspoons fresh-squeezed lemon juice. Drizzle with olive oil, and season with salt and pepper to taste.
—Michael Paley of Proof on Main, Louisville, Ky.
Pasta With Mustard Greens and Lamb Sausage
A quick, hardy pasta guaranteed to become a weeknight staple—and shave minutes off your time spent staring down farmers' market mustard greens. Serves 4 to 6.
Bring a large pot of heavily salted water to boil. Season 2 pounds ground lamb with 3 cloves garlic, finely chopped; 2 tablespoons crushed red pepper; 1 tablespoon dried oregano; and a pinch of salt. Heat 2 tablespoons olive oil in a large, heavy-bottomed pot over medium heat. // Add the seasoned lamb and cook for 5 minutes, breaking it into pieces with a spoon to prevent large clumps. Add ¼ cup heavy cream and 2 tablespoons water and let it cook down until only a couple of tablespoons of liquid remain. Add 1 bunch mustard greens, stems removed and leaves roughly chopped, and let wilt. // Cook 1 pound of bucatini, maccheroncini or anneloni according to package instructions. Drain, toss immediately with sauce, and toss again with ¼ cup grated Pecorino. If you like, add 3 tablespoons breadcrumbs crisped in hot olive oil in a frying pan. Adjust seasoning and serve.
—Sara Jenkins
View Full Image
Cavolo Nero Caesar Salad
Cavolo Nero Caesar Salad
Kale Caesar! A clever, nutritionally superior twist on the classic salad—complete with DIY croutons and a heap of Parmesan. Serves 4 to 6. To make the dressing, place the zest of 1 lemon, 3 cloves peeled garlic and 6 olive-oil-packed anchovy fillets in a mortar and pestle and pound into a thick paste. Add 1 egg yolk, a pinch of salt and a squeeze of lemon juice and stir thoroughly to combine. While stirring, slowly stir in ½ cup of a total of 2 cups olive oil. // Continue to add a slow stream of olive oil, periodically stopping to add a squeeze of lemon. Add more salt and lemon juice to taste. Add water as needed to thin the dressing to the consistency of heavy cream. To make croutons, toss a few torn-up slices of ciabatta or whole wheat bread with olive oil and salt and toast in the oven at 375 degrees until just golden. // For the salad, combine 2 pounds cavolo nero (also called Tuscan, Lacinato or Dinosaur kale), center stems removed and leaves torn, with croutons in a large bowl. Pour dressing over the top and toss to coat. Add ½ cup grated or shaved Parmesan, toss again, and serve.
—Ignacio Mattos of Il Buco, New York
Friday, January 14, 2011
11 Pet Dangers to Avoid During the Fall & Winter Months
11 Pet Dangers to Avoid During the Fall & Winter Months
ORGANIC AUTHORITY
The crisp chill of autumn is upon us, that means changing leaves, cozy sweaters, and lots of holidays. But along with all that excitement comes some dangers for your adorable pooch and kitty. Find out the top 11 fall pet dangers to avoid.
1. Antifreeze
Every year more than 10,000 dogs and cats are accidentally poisoned with automotive antifreeze. Pets are attracted to the sweet taste of ethylene glycol and one to two teaspoons will poison a cat and three tablespoons is enough to kill a medium size dog.
2. Allergies
Fall weather can bring about all whole new set of allergies. Ragweed and mold are two big aggravates, along with grass and dust. Look for signs like scratching, biting, chewing, sneezing, coughing, watery eyes, and hives and rashes.
3. Arthritis
Cold weather can lead to arthritis caused by inflamed joints. If your dog or cat is limping, having trouble moving, jumping, or sitting, moving slower than usual, or whimpering when he moves, he may be suffering from seasonal arthritis.
4. Mushrooms
All mushrooms are toxic to dogs. Always watch for mushrooms in areas where you walk your dogs or where they run and play. Be especially cautious of parasol-shaped mushrooms and all small brown mushrooms. Symptoms of mushroom poisoning can range from mild vomiting and diarrhea to severe digestive problems to complete liver failure.
5. Compost Pile
Your compost pile in your backyard is also dangerous to your pet. The decomposing organic material could contain mycotoxins that can cause hyperthermia, agitation, excessive panting or drooling, and even seizures.
6. Rodenticides
In fall and winter, mice and rats come flocking indoors to warmer surroundings. Putting out rodenticides will get rid of rodents but could also be fatal to your pooch and cat. There are four different types of poison and each has the potential to kill your pet: anticoagulants, cholecalciferol, bromethalin, and phosphides.
7. Candy
Everyone knows that chocolate is toxic to dogs, especially the baking variety, but so are raisins and the sugar-free sweetener xylitol. Be extra cautious on Halloween where pets can get into bags of candy. Wrappers and sticks from lollipops can also pose a threat causing intestinal blockages.
8. Thanksgiving
You may have the urge to share your yummy feast with your pet. This is ok in moderation. Just check the list of toxic foods for pets before you feed them. Avoid fat and fatty foods that can trigger pancreatitis in dogs and cats, and never feed your dog poultry bones. They easily splinter and break and can cause serious damage if swallowed.
9. Cold Weather
Chilly temps can also pose a threat to your pet. Indoor animals don’t develop a thick double coat like outdoor pets and should not be left outside unattended for any period of time. Consider buying a sweater for your dog for walks or booties to keep his paws safe from ice and rock salt. Also be cautious around ice – your pet could easily slip and rip a ligament or break a bone.
10. Decorations
Halloween, Thanksgiving, and Christmas decorations can all be dangerous to your pet. Ornaments, tinsel, plants, costumes, and other decorations should all be kept out of your pet’s reach.
11. Plants
Although beautiful, some holiday plants are toxic to dogs. You should avoid holly, amaryllis, mistletoe, poinsettia, Christmas and Thanksgiving cactus, American and European bittersweet, chrysanthemum, Christmas rose, Jerusalem cherry, autumn crocus, and burning bush. They can cause vomiting, diarrhea, depression, lack of appetite, tremors, belly pain, difficulty breathing, shock, organ damage, slowed heart rate, collapse, and even death.
ORGANIC AUTHORITY
The crisp chill of autumn is upon us, that means changing leaves, cozy sweaters, and lots of holidays. But along with all that excitement comes some dangers for your adorable pooch and kitty. Find out the top 11 fall pet dangers to avoid.
1. Antifreeze
Every year more than 10,000 dogs and cats are accidentally poisoned with automotive antifreeze. Pets are attracted to the sweet taste of ethylene glycol and one to two teaspoons will poison a cat and three tablespoons is enough to kill a medium size dog.
2. Allergies
Fall weather can bring about all whole new set of allergies. Ragweed and mold are two big aggravates, along with grass and dust. Look for signs like scratching, biting, chewing, sneezing, coughing, watery eyes, and hives and rashes.
3. Arthritis
Cold weather can lead to arthritis caused by inflamed joints. If your dog or cat is limping, having trouble moving, jumping, or sitting, moving slower than usual, or whimpering when he moves, he may be suffering from seasonal arthritis.
4. Mushrooms
All mushrooms are toxic to dogs. Always watch for mushrooms in areas where you walk your dogs or where they run and play. Be especially cautious of parasol-shaped mushrooms and all small brown mushrooms. Symptoms of mushroom poisoning can range from mild vomiting and diarrhea to severe digestive problems to complete liver failure.
5. Compost Pile
Your compost pile in your backyard is also dangerous to your pet. The decomposing organic material could contain mycotoxins that can cause hyperthermia, agitation, excessive panting or drooling, and even seizures.
6. Rodenticides
In fall and winter, mice and rats come flocking indoors to warmer surroundings. Putting out rodenticides will get rid of rodents but could also be fatal to your pooch and cat. There are four different types of poison and each has the potential to kill your pet: anticoagulants, cholecalciferol, bromethalin, and phosphides.
7. Candy
Everyone knows that chocolate is toxic to dogs, especially the baking variety, but so are raisins and the sugar-free sweetener xylitol. Be extra cautious on Halloween where pets can get into bags of candy. Wrappers and sticks from lollipops can also pose a threat causing intestinal blockages.
8. Thanksgiving
You may have the urge to share your yummy feast with your pet. This is ok in moderation. Just check the list of toxic foods for pets before you feed them. Avoid fat and fatty foods that can trigger pancreatitis in dogs and cats, and never feed your dog poultry bones. They easily splinter and break and can cause serious damage if swallowed.
9. Cold Weather
Chilly temps can also pose a threat to your pet. Indoor animals don’t develop a thick double coat like outdoor pets and should not be left outside unattended for any period of time. Consider buying a sweater for your dog for walks or booties to keep his paws safe from ice and rock salt. Also be cautious around ice – your pet could easily slip and rip a ligament or break a bone.
10. Decorations
Halloween, Thanksgiving, and Christmas decorations can all be dangerous to your pet. Ornaments, tinsel, plants, costumes, and other decorations should all be kept out of your pet’s reach.
11. Plants
Although beautiful, some holiday plants are toxic to dogs. You should avoid holly, amaryllis, mistletoe, poinsettia, Christmas and Thanksgiving cactus, American and European bittersweet, chrysanthemum, Christmas rose, Jerusalem cherry, autumn crocus, and burning bush. They can cause vomiting, diarrhea, depression, lack of appetite, tremors, belly pain, difficulty breathing, shock, organ damage, slowed heart rate, collapse, and even death.
Broccolini Spinach Soup
Broccolini Spinach Soup
Serves 4-6
Ingredients:
1 1/2 pounds of organic broccolini
2 tablespoons extra-virgin olive oil
1 cup diced onion
1 cup chopped leek
1 1/2 tablespoons minced garlic
Salt and freshly ground pepper
1 teaspoon of fresh basil chopped
1 teaspoon of fresh marjoram chopped
1 teaspoon of fresh Italian parsley chopped
5 cups organic vegtable stock (you can also use chicken stock)
2 cups of packed organic spinach washed, and trimmed
2 teaspoons of freshly grated lemon zest
2 tablespoons of Meyer Lemon juice
1 cup organic soy or almond milk, or 1/4-1/2 cup of cream if preferred
Method:
Watch the Organic Broccolini & Spinach Soup Recipe video
Cut the stems from the florets of the broccolini. Cut stems into about 1/2 - inch pieces.
Heat the olive oil in a soup pot over medium high heat. Add the onion and leek to pan and season with salt and pepper. Add garlic and cook for about 1 minute. Lower temperature to medium heat and cook vegetables slowly until tender about 10 minutes (you do not want the vegetables to take on any color).
Stir in the basil, marjoram, and Italian parsley. Add the broccolini stems, vegetable stock and salt and pepper to taste. Bring to a simmer and cook uncovered for 2-3 minutes. Add the florets and cook until fork tender about 5 minutes. Stir in cleaned spinach and lemon zest. Once the spinach has wilted into the soup, puree the soup in small batches in a blender.
Return blended soup to pan and stir in lemon juice then soy milk. Taste and adjust seasoning if needed. Serve in warm bowls and garnish with lemon zest.
This recipe can be made ahead up until the point you blend the soup and store it in the refrigerator for several days or up to one month frozen.
Watch the Organic Broccolini & Spinach Soup Recipe video
Serves 4-6
Ingredients:
1 1/2 pounds of organic broccolini
2 tablespoons extra-virgin olive oil
1 cup diced onion
1 cup chopped leek
1 1/2 tablespoons minced garlic
Salt and freshly ground pepper
1 teaspoon of fresh basil chopped
1 teaspoon of fresh marjoram chopped
1 teaspoon of fresh Italian parsley chopped
5 cups organic vegtable stock (you can also use chicken stock)
2 cups of packed organic spinach washed, and trimmed
2 teaspoons of freshly grated lemon zest
2 tablespoons of Meyer Lemon juice
1 cup organic soy or almond milk, or 1/4-1/2 cup of cream if preferred
Method:
Watch the Organic Broccolini & Spinach Soup Recipe video
Cut the stems from the florets of the broccolini. Cut stems into about 1/2 - inch pieces.
Heat the olive oil in a soup pot over medium high heat. Add the onion and leek to pan and season with salt and pepper. Add garlic and cook for about 1 minute. Lower temperature to medium heat and cook vegetables slowly until tender about 10 minutes (you do not want the vegetables to take on any color).
Stir in the basil, marjoram, and Italian parsley. Add the broccolini stems, vegetable stock and salt and pepper to taste. Bring to a simmer and cook uncovered for 2-3 minutes. Add the florets and cook until fork tender about 5 minutes. Stir in cleaned spinach and lemon zest. Once the spinach has wilted into the soup, puree the soup in small batches in a blender.
Return blended soup to pan and stir in lemon juice then soy milk. Taste and adjust seasoning if needed. Serve in warm bowls and garnish with lemon zest.
This recipe can be made ahead up until the point you blend the soup and store it in the refrigerator for several days or up to one month frozen.
Watch the Organic Broccolini & Spinach Soup Recipe video
Serviced Apartment Ownership: The Next Investment Trend?
Serviced Apartment Ownership: The Next Investment Trend?
By Alice Truong
Ovolo Group
Ovolo is selling 48 serviced apartments in Sheung Wan, guaranteeing investors a 3.3% return.
Ovolo Group’s latest strategy is unheard of in Hong Kong: The serviced-apartment operator is selling its 48 units in a Sheung Wan building.
“It’s the first time it’s been done in Hong Kong,” said Girish Jhunjhnuwala, Ovolo’s founder and managing director.
Mr. Jhunjhnuwala said the sale of flats at 222 Hollywood Road (view photos)—each of which will carry a guaranteed 3.3% quarterly return—is aimed at giving the company cash to expand.
The idea of selling a branded residence isn’t new in Asia: The Ritz-Carlton in Singapore began selling apartments and penthouses in 2007, saying the hotel brand allows it to charge a 20% to 50% premium. In Macau, the Mandarin Oriental started selling serviced apartments in June.
Indeed, serviced apartments have proven to be a lucrative business in Hong Kong, with rents increasing 10% to 15% in 2010, according to the latest figures by property consultant CB Richard Ellis.
The business model of strata-title ownership, or dividing a building’s ownership to different parties, would give Ovolo the liquidity to purchase and operate additional apartments, Mr. Jhunjhnuwala said.
Ovolo, which operates 245 serviced apartments in Hong Kong, plans to open 63 serviced apartments in West Kowloon in the first quarter of 2011.
“This is a good way to utilize our assets to do more,” he said.
More than 250 brokers have visited the Hollywood Road show flat since the units went on sale Tuesday—a strong showing, said Raymond Fung, investment director at Knight Frank, the sole agent of the sale.
Ovolo said it would leverage its brand to bring in tenants and manage the premises, collecting monthly rents, which range from 35,000 Hong Kong dollars (US$4,502) to HK$39,000, and distributing a 3.3% return to investors on a quarterly basis. After covering expenses, the operator ends up with a net of about 1%, Mr. Jhunjhnuwala said.
More In Real Estate
A 'Brand Name' Building
New Luxury on the Peak
Property Prices, Transactions at Highest Level Since '97 Peak
Thirteen Bedrooms, Seven Floors, $50 Million
December Property Transactions Down 26.2%
“We’re offering a guaranteed yield because we’re so confident in the market,” said Mr. Jhunjhnuwala, adding the Hollywood Road building has maintained an occupancy rate of about 80% within the past year. Ovolo purchased 222 Hollywood Rd. from fellow serviced-apartment operator Kush last year, renovating the building in November in preparation of the strata-title sale.
“A 3% rental return is attractive given that returns for prime office or luxury residential property is now sub-3%,” said Ben Ma, associate director of CB Richard Ellis Research. Mr. Ma said a comparable 650-square-foot apartment in Sheung Wan would rent for HK$10,000 to HK$13,000, but Ovolo can charge three times as much because of its brand.
Buyers who intend to live in the units, on sale for HK$8.2 million to HK$13 million, would receive no return and would be responsible for monthly management fees of HK$1,820.
The apartments for sale are still subject to the government’s latest housing measures to combat speculators because the building is zoned as a residence. But Mr. Jhunjhnuwala said he expects buyers to be long-term investors because of the operator’s guaranteed returns. In November, the government levied additional stamp duties of up to 15% for properties bought and sold within two years and lowered the mortgage limit to 50% for residences valued at HK$12 million or above.
By Alice Truong
Ovolo Group
Ovolo is selling 48 serviced apartments in Sheung Wan, guaranteeing investors a 3.3% return.
Ovolo Group’s latest strategy is unheard of in Hong Kong: The serviced-apartment operator is selling its 48 units in a Sheung Wan building.
“It’s the first time it’s been done in Hong Kong,” said Girish Jhunjhnuwala, Ovolo’s founder and managing director.
Mr. Jhunjhnuwala said the sale of flats at 222 Hollywood Road (view photos)—each of which will carry a guaranteed 3.3% quarterly return—is aimed at giving the company cash to expand.
The idea of selling a branded residence isn’t new in Asia: The Ritz-Carlton in Singapore began selling apartments and penthouses in 2007, saying the hotel brand allows it to charge a 20% to 50% premium. In Macau, the Mandarin Oriental started selling serviced apartments in June.
Indeed, serviced apartments have proven to be a lucrative business in Hong Kong, with rents increasing 10% to 15% in 2010, according to the latest figures by property consultant CB Richard Ellis.
The business model of strata-title ownership, or dividing a building’s ownership to different parties, would give Ovolo the liquidity to purchase and operate additional apartments, Mr. Jhunjhnuwala said.
Ovolo, which operates 245 serviced apartments in Hong Kong, plans to open 63 serviced apartments in West Kowloon in the first quarter of 2011.
“This is a good way to utilize our assets to do more,” he said.
More than 250 brokers have visited the Hollywood Road show flat since the units went on sale Tuesday—a strong showing, said Raymond Fung, investment director at Knight Frank, the sole agent of the sale.
Ovolo said it would leverage its brand to bring in tenants and manage the premises, collecting monthly rents, which range from 35,000 Hong Kong dollars (US$4,502) to HK$39,000, and distributing a 3.3% return to investors on a quarterly basis. After covering expenses, the operator ends up with a net of about 1%, Mr. Jhunjhnuwala said.
More In Real Estate
A 'Brand Name' Building
New Luxury on the Peak
Property Prices, Transactions at Highest Level Since '97 Peak
Thirteen Bedrooms, Seven Floors, $50 Million
December Property Transactions Down 26.2%
“We’re offering a guaranteed yield because we’re so confident in the market,” said Mr. Jhunjhnuwala, adding the Hollywood Road building has maintained an occupancy rate of about 80% within the past year. Ovolo purchased 222 Hollywood Rd. from fellow serviced-apartment operator Kush last year, renovating the building in November in preparation of the strata-title sale.
“A 3% rental return is attractive given that returns for prime office or luxury residential property is now sub-3%,” said Ben Ma, associate director of CB Richard Ellis Research. Mr. Ma said a comparable 650-square-foot apartment in Sheung Wan would rent for HK$10,000 to HK$13,000, but Ovolo can charge three times as much because of its brand.
Buyers who intend to live in the units, on sale for HK$8.2 million to HK$13 million, would receive no return and would be responsible for monthly management fees of HK$1,820.
The apartments for sale are still subject to the government’s latest housing measures to combat speculators because the building is zoned as a residence. But Mr. Jhunjhnuwala said he expects buyers to be long-term investors because of the operator’s guaranteed returns. In November, the government levied additional stamp duties of up to 15% for properties bought and sold within two years and lowered the mortgage limit to 50% for residences valued at HK$12 million or above.
Mortgage Rates Decline to 4-Week low
Mortgage Rates Decline to 4-Week low
By RUTH MANTELL
Home-mortgage rates declined for a second straight week, according to data released Thursday by Freddie Mac, but the housing market continued to face headwinds from a supply glut and the struggling employment situation.
The average 30-year fixed-rate mortgage fell to 4.71% in the week ended Jan. 13, reaching a four-week low, Freddie Mac said. The rate was 4.77% in the prior week and 5.06% in the prior year, according to Freddie Mac, a buyer of residential mortgages.
To obtain the latest rate, the mortgage required payment of an average 0.8 point. A point is 1% of the mortgage amount, charged as prepaid interest.
The 15-year fixed-rate mortgage averaged 4.08% in the latest week, with an average 0.7 point, down from the prior week's 4.13% and the year-ago rate of 4.45%.
Low rates could help a still-troubled housing market, which has been hobbled by persistent employment weakness and a large supply of homes.
Rates on five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.72% in the latest week, with an average 0.7 point, down from 3.75% in the prior week and 4.32% last year. Also, one-year Treasury-indexed ARMs averaged 3.23% in the most recent week, with an average 0.6 point, down from 3.24% in the prior week and 4.39% a year ago.
Write to Ruth Mantell at ruth.mantell@dowjones.com
By RUTH MANTELL
Home-mortgage rates declined for a second straight week, according to data released Thursday by Freddie Mac, but the housing market continued to face headwinds from a supply glut and the struggling employment situation.
The average 30-year fixed-rate mortgage fell to 4.71% in the week ended Jan. 13, reaching a four-week low, Freddie Mac said. The rate was 4.77% in the prior week and 5.06% in the prior year, according to Freddie Mac, a buyer of residential mortgages.
To obtain the latest rate, the mortgage required payment of an average 0.8 point. A point is 1% of the mortgage amount, charged as prepaid interest.
The 15-year fixed-rate mortgage averaged 4.08% in the latest week, with an average 0.7 point, down from the prior week's 4.13% and the year-ago rate of 4.45%.
Low rates could help a still-troubled housing market, which has been hobbled by persistent employment weakness and a large supply of homes.
Rates on five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.72% in the latest week, with an average 0.7 point, down from 3.75% in the prior week and 4.32% last year. Also, one-year Treasury-indexed ARMs averaged 3.23% in the most recent week, with an average 0.6 point, down from 3.24% in the prior week and 4.39% a year ago.
Write to Ruth Mantell at ruth.mantell@dowjones.com
Economists Optimistic on Growth
ECONOMYJANUARY 14, 2011
Economists Optimistic on Growth
By PHIL IZZO
Economists surveyed by The Wall Street Journal are increasingly optimistic about the pace of the recovery, predicting the U.S. will grow at better than a 3.2% annual rate in each quarter this year.
"The U.S. economy appears to have successfully navigated the adjustment from a recovery driven primarily from economic stimulus and inventory rebuilding to one driven by private domestic demand and rising exports," said economists at Wells Fargo & Co. "Three percent growth looks pretty good, particularly with housing stuck in low gear."
A just-released WSJ survey of leading economists indicates they've turned more optimistic about the outlook for the recovery, despite the dismal housing market. Phil Izzo has details. Plus, will million-dollar art sell online?
Charts and Full Results
See forecasts for growth, unemployment, housing and more. Plus, views on the Fed, taxes and more. Survey conducted Jan. 7-11. (Or download all data as .xls)
Complete Coverage: Forecasting Survey
Economists have steadily grown more upbeat about growth in recent months and boosted their estimates for the fourth quarter of 2010 in this survey. On average, respondents now estimate the U.S. grew 3.3% at a seasonally adjusted annual rate in the fourth quarter—up from an estimate last month of 2.6% growth. The economy grew 2.6% in the third quarter.
These upbeat forecasts come despite a persistently bleak outlook for housing. On average, the economists now expect that home prices will post a decline in 2011, after more than 12 months of forecasting modest gains for the current year.
Meanwhile, 30 of the 56 surveyed economists, not all of whom answer every question, say home prices won't outpace inflation for at least the next three years. The excess supply of homes also is seen keeping construction at moribund levels. On average, the economists expect 700,000 housing starts in 2011, above 2010 and 2009 levels, but well below the 1.5 million averaged from 1959 to 2007.
"The labor market weakness is suppressing a housing recovery," said Sean M. Snaith of the University of Central Florida.
Amid the stronger growth forecasts, economists now expect the U.S. to generate nearly 180,000 jobs a month on average this year, significantly more than last year's average of 94,000. But with continued population growth, that isn't nearly enough to quickly bring down the unemployment rate, now at 9.4%. By the end of 2011, the economists, on average, expect the jobless rate to be 8.8%.
View Full Image
Bloomberg News
Economists are optimistic about the pace of the recovery. Above, shipping containers are stacked at the Port of Houston on Thursday.
About the Survey
The Wall Street Journal surveys a group of 56 economists throughout the year. Broad surveys on more than 10 major economic indicators are conducted every month. Once a year, economists are ranked on how well their forecasts have fared. For prior installments of the surveys, see: WSJ.com/Economist.
Persistent weakness in the job market also is expected to keep inflation in check over the course of 2011. On average, the economists expect consumer prices will rise 1.9% this year, within the Federal Reserve's comfort zone of 1.5% to 2%.
The central bank has a dual mandate to promote full employment and maintain price stability. With little pressure on the inflation front and a slow recovery in the job market, most of the economists don't expect the Fed to start raising interest rates until early 2012 at the earliest.
As the recovery moves forward, they expect the central bank to keep mostly to the sidelines. Fifty of 55 respondents predict policy makers will complete a previously announced $600 billion of bond purchases, and stop there. But the policy remains contentious, with just 27 economists supporting the full amount of the program.
The bond purchases "may not have been needed, but [Fed officials] shouldn't give in to critics once they have started," said Jim O'Sullivan of MF Global.
Despite the disagreements over Fed policy, 24 of 40 economists who answered the question gave Fed Chairman Ben Bernanke a grade of A or B, the highest marks among top central bankers. The European Central Bank's Jean-Claude Trichet and the Bank of England's Mervyn King received 22 and 19 grades above a C, respectively. Neither Masaaki Shirakawa of the Bank of Japan nor Zhou Xiaochuan of the People's Bank of China got more than 13 A's and B's.
"All were dealt a tough hand, but Bernanke seems the most innovative," said Bruce Kasman of J.P. Morgan Chase.
The economists also were generally encouraged by President Barack Obama's selection of Bill Daley to succeed Rahm Emanuel as White House chief of staff and Gene Sperling to take over the National Economic Council now that Larry Summers has departed.
Twenty-three of 46 economists said the new team would be better for economic policy, while just one said it would be worse. The remainder expected no significant difference.
Write to Phil Izzo at philip.izzo@wsj.com
Economists Optimistic on Growth
By PHIL IZZO
Economists surveyed by The Wall Street Journal are increasingly optimistic about the pace of the recovery, predicting the U.S. will grow at better than a 3.2% annual rate in each quarter this year.
"The U.S. economy appears to have successfully navigated the adjustment from a recovery driven primarily from economic stimulus and inventory rebuilding to one driven by private domestic demand and rising exports," said economists at Wells Fargo & Co. "Three percent growth looks pretty good, particularly with housing stuck in low gear."
A just-released WSJ survey of leading economists indicates they've turned more optimistic about the outlook for the recovery, despite the dismal housing market. Phil Izzo has details. Plus, will million-dollar art sell online?
Charts and Full Results
See forecasts for growth, unemployment, housing and more. Plus, views on the Fed, taxes and more. Survey conducted Jan. 7-11. (Or download all data as .xls)
Complete Coverage: Forecasting Survey
Economists have steadily grown more upbeat about growth in recent months and boosted their estimates for the fourth quarter of 2010 in this survey. On average, respondents now estimate the U.S. grew 3.3% at a seasonally adjusted annual rate in the fourth quarter—up from an estimate last month of 2.6% growth. The economy grew 2.6% in the third quarter.
These upbeat forecasts come despite a persistently bleak outlook for housing. On average, the economists now expect that home prices will post a decline in 2011, after more than 12 months of forecasting modest gains for the current year.
Meanwhile, 30 of the 56 surveyed economists, not all of whom answer every question, say home prices won't outpace inflation for at least the next three years. The excess supply of homes also is seen keeping construction at moribund levels. On average, the economists expect 700,000 housing starts in 2011, above 2010 and 2009 levels, but well below the 1.5 million averaged from 1959 to 2007.
"The labor market weakness is suppressing a housing recovery," said Sean M. Snaith of the University of Central Florida.
Amid the stronger growth forecasts, economists now expect the U.S. to generate nearly 180,000 jobs a month on average this year, significantly more than last year's average of 94,000. But with continued population growth, that isn't nearly enough to quickly bring down the unemployment rate, now at 9.4%. By the end of 2011, the economists, on average, expect the jobless rate to be 8.8%.
View Full Image
Bloomberg News
Economists are optimistic about the pace of the recovery. Above, shipping containers are stacked at the Port of Houston on Thursday.
About the Survey
The Wall Street Journal surveys a group of 56 economists throughout the year. Broad surveys on more than 10 major economic indicators are conducted every month. Once a year, economists are ranked on how well their forecasts have fared. For prior installments of the surveys, see: WSJ.com/Economist.
Persistent weakness in the job market also is expected to keep inflation in check over the course of 2011. On average, the economists expect consumer prices will rise 1.9% this year, within the Federal Reserve's comfort zone of 1.5% to 2%.
The central bank has a dual mandate to promote full employment and maintain price stability. With little pressure on the inflation front and a slow recovery in the job market, most of the economists don't expect the Fed to start raising interest rates until early 2012 at the earliest.
As the recovery moves forward, they expect the central bank to keep mostly to the sidelines. Fifty of 55 respondents predict policy makers will complete a previously announced $600 billion of bond purchases, and stop there. But the policy remains contentious, with just 27 economists supporting the full amount of the program.
The bond purchases "may not have been needed, but [Fed officials] shouldn't give in to critics once they have started," said Jim O'Sullivan of MF Global.
Despite the disagreements over Fed policy, 24 of 40 economists who answered the question gave Fed Chairman Ben Bernanke a grade of A or B, the highest marks among top central bankers. The European Central Bank's Jean-Claude Trichet and the Bank of England's Mervyn King received 22 and 19 grades above a C, respectively. Neither Masaaki Shirakawa of the Bank of Japan nor Zhou Xiaochuan of the People's Bank of China got more than 13 A's and B's.
"All were dealt a tough hand, but Bernanke seems the most innovative," said Bruce Kasman of J.P. Morgan Chase.
The economists also were generally encouraged by President Barack Obama's selection of Bill Daley to succeed Rahm Emanuel as White House chief of staff and Gene Sperling to take over the National Economic Council now that Larry Summers has departed.
Twenty-three of 46 economists said the new team would be better for economic policy, while just one said it would be worse. The remainder expected no significant difference.
Write to Phil Izzo at philip.izzo@wsj.com
5 Tips for Growing Herbs Indoors This Winter
5 Tips for Growing Herbs Indoors This Winter
Written by Kimberley Stakal
ORGANIC AUTHORITY
Yup, it’s officially winter out there. But you still want to grow your culinary herbs, darn it! Don’t fret, you can easily bring your outdoor herbs indoors for the nippy months. We’ve got five simple tips for growing those herbs indoors throughout the winter season.
1) Play Mother Nature with your indoor weather conditions. Healthy plants thrive best with lots of light, so make sure your herbs are exposed to 6 hours of natural light or 14 hours of artificial light. And keep them somewhere where the temperature stays mildly cool to warm — think Seattle. Sixty degrees at night to 70 degrees during the day is ideal for your budding herbs.
2) Location, location, location! House your herbs in the kitchen or bathroom, where they are most likely to stay slightly warm and humid naturally.
3) Love that soil. Keep the soil of your herbs moist, but don’t over water — and never let your plant sit in standing water. The roots will rot! Grow all herbs in a clay pot with holes for drainage. And start with an organic fertilizer for ultra eco-love — or better yet, create your own compost.
4) Wash that plant! Not really. But if your plant becomes infested with insects, which is common with indoor gardening, you can remove them with a soapy plant bath. Fill a large pot or kitchen sink with diluted soapy water, and gently tip the top of your herbs into the water, holding the base of the plant secure with your hands. Give it a few swishes in the soapy water and the pests should be swept away. If your plant is too delicate to turn upside down, use a spray bottle to spray the soapy solution onto the leaves and infected areas.
5) Choose your herbs wisely. Some herbs naturally lend themselves better to indoor growing conditions. Parsley, basil, sage and thyme are known to hold up stronger inside. Extra perk — they are all perfect herb solutions for winter stews, casseroles and roasts. Isn’t it great when those things work out?
Written by Kimberley Stakal
ORGANIC AUTHORITY
Yup, it’s officially winter out there. But you still want to grow your culinary herbs, darn it! Don’t fret, you can easily bring your outdoor herbs indoors for the nippy months. We’ve got five simple tips for growing those herbs indoors throughout the winter season.
1) Play Mother Nature with your indoor weather conditions. Healthy plants thrive best with lots of light, so make sure your herbs are exposed to 6 hours of natural light or 14 hours of artificial light. And keep them somewhere where the temperature stays mildly cool to warm — think Seattle. Sixty degrees at night to 70 degrees during the day is ideal for your budding herbs.
2) Location, location, location! House your herbs in the kitchen or bathroom, where they are most likely to stay slightly warm and humid naturally.
3) Love that soil. Keep the soil of your herbs moist, but don’t over water — and never let your plant sit in standing water. The roots will rot! Grow all herbs in a clay pot with holes for drainage. And start with an organic fertilizer for ultra eco-love — or better yet, create your own compost.
4) Wash that plant! Not really. But if your plant becomes infested with insects, which is common with indoor gardening, you can remove them with a soapy plant bath. Fill a large pot or kitchen sink with diluted soapy water, and gently tip the top of your herbs into the water, holding the base of the plant secure with your hands. Give it a few swishes in the soapy water and the pests should be swept away. If your plant is too delicate to turn upside down, use a spray bottle to spray the soapy solution onto the leaves and infected areas.
5) Choose your herbs wisely. Some herbs naturally lend themselves better to indoor growing conditions. Parsley, basil, sage and thyme are known to hold up stronger inside. Extra perk — they are all perfect herb solutions for winter stews, casseroles and roasts. Isn’t it great when those things work out?
Sexual Healing for Cold & Flu Prevention
Sexual Healing for Cold & Flu Prevention
Written by Jill Ettinger
ORGANIC AUTHORITY
Calling Dr. Love: Welcome to the first in our series on sex. It seems sex is integral to our health! Stay tuned...
Research has shown that frequent sexual activity — having an orgasm at least twice a week — can keep you from getting sick this winter. Individuals who engage in regular sexual activity have been shown to produce higher levels of immunoglobulin (IGA), an anti-body that can prevent susceptibility to catching minor colds and flus.
IGA is the dominant antibody in your body's defense system; it is present in saliva and mucosal lining and works as a barrier at the most common points of entry for germs that make you sick.
In a study conducted by Wilkes-Barre University in Pennsylvania, IGA levels were revealed to be significantly higher — at least 33 percent higher — in people that had regular sex with a partner than those who had less frequent sexual encounters. Regardless of length or the emotional health of the relationships, the benefits as a result of sexual activity were the same in the study participants. Not that we're advocating doing it with just anyone!
The study also revealed that while the higher IGA levels were consistent in couples that had intercourse several times per week, those couples that had "very frequent" sex — more than 3 times per week — demonstrated less potent IGA levels similar to those individuals who had no sexual activity.
So next time you're in the mood, you can simply tell your partner you need to have sex because you don't want to catch the cough that's been going around the office. Or, if you're not in the mood because you’ve done it twice already that week, you won't need to blame it on a headache; just remind your sweetie that too much sex is as bad for your immune system as not enough.
Stay in touch with Jill on Twitter: www.twitter.com/jille
Written by Jill Ettinger
ORGANIC AUTHORITY
Calling Dr. Love: Welcome to the first in our series on sex. It seems sex is integral to our health! Stay tuned...
Research has shown that frequent sexual activity — having an orgasm at least twice a week — can keep you from getting sick this winter. Individuals who engage in regular sexual activity have been shown to produce higher levels of immunoglobulin (IGA), an anti-body that can prevent susceptibility to catching minor colds and flus.
IGA is the dominant antibody in your body's defense system; it is present in saliva and mucosal lining and works as a barrier at the most common points of entry for germs that make you sick.
In a study conducted by Wilkes-Barre University in Pennsylvania, IGA levels were revealed to be significantly higher — at least 33 percent higher — in people that had regular sex with a partner than those who had less frequent sexual encounters. Regardless of length or the emotional health of the relationships, the benefits as a result of sexual activity were the same in the study participants. Not that we're advocating doing it with just anyone!
The study also revealed that while the higher IGA levels were consistent in couples that had intercourse several times per week, those couples that had "very frequent" sex — more than 3 times per week — demonstrated less potent IGA levels similar to those individuals who had no sexual activity.
So next time you're in the mood, you can simply tell your partner you need to have sex because you don't want to catch the cough that's been going around the office. Or, if you're not in the mood because you’ve done it twice already that week, you won't need to blame it on a headache; just remind your sweetie that too much sex is as bad for your immune system as not enough.
Stay in touch with Jill on Twitter: www.twitter.com/jille
16 Foods that Naturally Boost Your Metabolism
16 Foods that Naturally Boost Your Metabolism
Written by Brianne DiSylvester
ORGANIC AUTHORITY
Diet, schmiet. Ditch your strict eating regimen and give your metabolism a boost by eating. Yes, eating! Just by consuming certain drinks and foods, you can give your body a kick-start in calorie burning, and speed up that seemingly slow metabolism of yours. Here’s how…
What to Eat:
Almonds: Although high in calories (don’t overdo it), they contain fatty acids that raise your metabolism.
Apples and Pears: High fiber makes you burn more calories.
Beans: High protein + high fiber = more calories burned.
Broccoli: Calcium and vitamin C create a metabolism-rising duo.
Cinnamon: Add it to sugary drinks and foods to help your body better metabolize sweets.
Coffee: Caffeine gives your mind, body and metabolism a boost. Don’t exceed 2-3 cups a day.
Curry: Since it’s spicy, your body will work hard to metabolize it and give your calorie burning a boost.
Grapefruit: Lowers insulin levels and burns calories by breaking down the fiber.
Green Tea: EGCG speeds up your brain and nervous system, thus burning more calories.
Hot Peppers and Jalapenos: For hours after you eat them, these spicy peppers will speed up your heart rate and metabolism while burning calories.
Lean Turkey: Protein builds muscle and helps to burn calories since your body is working harder to process it.
Low-Fat Yogurt: Breaking down the high protein level burns calories and the probiotic cultures regulate digestion.
Oatmeal: Again high fiber means more calories are being burned while your body breaks it down.
Spinach: Speeds up your metabolism, plus it’s high in vitamin C, antioxidants and iron.
Unsweetened Soy Milk: Tons of calcium ups your metabolism.
Water: Your body’s metabolic rate will increase by 30 percent by drinking 17 ounces of water.
Now, unfortunately we don’t just want to gorge ourselves on these items. An efficient metabolism is all within the method...
How to Eat It:
Focus on low-glycemic foods that keep your blood sugar and insulin levels steady.
Eat the recommended amount of calories (calculate it) for your body type and activity. Eating too few, in addition to exercising, causes your body to go into starvation mode which slows down your metabolism.
Nosh every 3-5 hours. This will help maintain a fast metabolism. Plus, you’ll never be overly hungry and risk overeating.
Eat smaller portions. Each time your digestive system starts to work, you burn calories.
Add lean protein to every meal (3 oz) or snack (1 oz). The protein builds muscle, tells your brain to stop eating, and increases your metabolism since your body is working harder to digest it.
Work out. Try strength training 3 times a week… it boosts your metabolism.
Written by Brianne DiSylvester
ORGANIC AUTHORITY
Diet, schmiet. Ditch your strict eating regimen and give your metabolism a boost by eating. Yes, eating! Just by consuming certain drinks and foods, you can give your body a kick-start in calorie burning, and speed up that seemingly slow metabolism of yours. Here’s how…
What to Eat:
Almonds: Although high in calories (don’t overdo it), they contain fatty acids that raise your metabolism.
Apples and Pears: High fiber makes you burn more calories.
Beans: High protein + high fiber = more calories burned.
Broccoli: Calcium and vitamin C create a metabolism-rising duo.
Cinnamon: Add it to sugary drinks and foods to help your body better metabolize sweets.
Coffee: Caffeine gives your mind, body and metabolism a boost. Don’t exceed 2-3 cups a day.
Curry: Since it’s spicy, your body will work hard to metabolize it and give your calorie burning a boost.
Grapefruit: Lowers insulin levels and burns calories by breaking down the fiber.
Green Tea: EGCG speeds up your brain and nervous system, thus burning more calories.
Hot Peppers and Jalapenos: For hours after you eat them, these spicy peppers will speed up your heart rate and metabolism while burning calories.
Lean Turkey: Protein builds muscle and helps to burn calories since your body is working harder to process it.
Low-Fat Yogurt: Breaking down the high protein level burns calories and the probiotic cultures regulate digestion.
Oatmeal: Again high fiber means more calories are being burned while your body breaks it down.
Spinach: Speeds up your metabolism, plus it’s high in vitamin C, antioxidants and iron.
Unsweetened Soy Milk: Tons of calcium ups your metabolism.
Water: Your body’s metabolic rate will increase by 30 percent by drinking 17 ounces of water.
Now, unfortunately we don’t just want to gorge ourselves on these items. An efficient metabolism is all within the method...
How to Eat It:
Focus on low-glycemic foods that keep your blood sugar and insulin levels steady.
Eat the recommended amount of calories (calculate it) for your body type and activity. Eating too few, in addition to exercising, causes your body to go into starvation mode which slows down your metabolism.
Nosh every 3-5 hours. This will help maintain a fast metabolism. Plus, you’ll never be overly hungry and risk overeating.
Eat smaller portions. Each time your digestive system starts to work, you burn calories.
Add lean protein to every meal (3 oz) or snack (1 oz). The protein builds muscle, tells your brain to stop eating, and increases your metabolism since your body is working harder to digest it.
Work out. Try strength training 3 times a week… it boosts your metabolism.
Home and wealth Newsletters
Things to know about buying a home now...
With the start of the new year, there's lots of talk about where home prices, mortgage rates and home sales in general are headed. If you're thinking about buying a home in the near future, here are some points to ponder:
Prices are now at all-time lows. According to the National Association of Realtors (NAR) housing affordability index, home prices are more affordable now than during any other time in our history going back to 1970. In addition, this time of year is especially good for buyers, because activity has slowed down. The school year in full swing and the holiday season cuts the number of active buyers, so sellers are especially motivated to make a deal.
It's a good time to buy if you plan to stay awhile. A home is still a good investment, just don't expect the house you buy today to deliver a big jump in value right away. The NAR's chief economist says, "Despite very attractive affordability conditions, a housing market recovery will likely be slow and gradual...." But if you plan to stay in your home more than a few years, your investment should beat inflation. According to Department of Labor statistics, for the ten years from 7/1/2000 to 6/30/2010, the average home increased in price 3.4% per year in the US. Inflation measured by the CPI (Consumer Price Index) went up 2.4% per year in the same period.
Mortgage rates are still at historic lows. National average mortgage rates are at their lowest levels in history. You may have heard about rates inching up a little lately, but "inching" is truly the operative word. National average mortgage rates are still below where they were at the start of last year. The important thing to remember is that lower rates increase your buying power by allowing you to qualify for a larger loan amount.
You're in the driver's seat. It's still a buyer's market, so many sellers are prepared to negotiate to close the sale and move on with their lives. Price and appliances for instance are all things that can be up for discussion – you just have to test the waters. But remember, when home prices stabilize and start to head up, sellers won't be in the same bargaining mood. At that point, sellers could regain the upper hand as buyers compete with each other to purchase before prices go up more.
Don't forget the tax benefits. Buying a home gives you some nice tax breaks. Interest on your mortgage and real estate taxes are both tax deductable. If you pay points to reduce your loan's interest rate, that money may also be deductible. Please consult with a tax advisor to find out how these deductions apply to your circumstances.
You want choice? Now you've got it! In many areas of the country, home buyers are feeling like kids in a candy store. There are many nice options to explore. Just don't get overwhelmed. Figure out what you want in a home, a neighborhood that's right and what you can afford to pay – then go enjoy the shopping experience.
It's easy to get started. The first thing to do is to get qualified for a mortgage. This tells you how much money a lender is willing to loan you, so you know exactly what you can afford. Being qualified also strengthens your position when making an offer because the seller knows you're a pre-approved borrower. Please contact us and we'd be happy to help you through this process.
There may never be a better time to buy. One thing's for sure, mortgage rates and home prices won't stay at these historic levels forever. When you find a home you fall in love with, don't let it get away. Remember, you want the best home, not just the best deal, and holding off on a purchase for things to improve, could lose you the home of your dreams.
Feel free to call or email us about these or any matters relating to home financing or refinancing. We're glad to talk further about any of these topics... Have a great day!
With the start of the new year, there's lots of talk about where home prices, mortgage rates and home sales in general are headed. If you're thinking about buying a home in the near future, here are some points to ponder:
Prices are now at all-time lows. According to the National Association of Realtors (NAR) housing affordability index, home prices are more affordable now than during any other time in our history going back to 1970. In addition, this time of year is especially good for buyers, because activity has slowed down. The school year in full swing and the holiday season cuts the number of active buyers, so sellers are especially motivated to make a deal.
It's a good time to buy if you plan to stay awhile. A home is still a good investment, just don't expect the house you buy today to deliver a big jump in value right away. The NAR's chief economist says, "Despite very attractive affordability conditions, a housing market recovery will likely be slow and gradual...." But if you plan to stay in your home more than a few years, your investment should beat inflation. According to Department of Labor statistics, for the ten years from 7/1/2000 to 6/30/2010, the average home increased in price 3.4% per year in the US. Inflation measured by the CPI (Consumer Price Index) went up 2.4% per year in the same period.
Mortgage rates are still at historic lows. National average mortgage rates are at their lowest levels in history. You may have heard about rates inching up a little lately, but "inching" is truly the operative word. National average mortgage rates are still below where they were at the start of last year. The important thing to remember is that lower rates increase your buying power by allowing you to qualify for a larger loan amount.
You're in the driver's seat. It's still a buyer's market, so many sellers are prepared to negotiate to close the sale and move on with their lives. Price and appliances for instance are all things that can be up for discussion – you just have to test the waters. But remember, when home prices stabilize and start to head up, sellers won't be in the same bargaining mood. At that point, sellers could regain the upper hand as buyers compete with each other to purchase before prices go up more.
Don't forget the tax benefits. Buying a home gives you some nice tax breaks. Interest on your mortgage and real estate taxes are both tax deductable. If you pay points to reduce your loan's interest rate, that money may also be deductible. Please consult with a tax advisor to find out how these deductions apply to your circumstances.
You want choice? Now you've got it! In many areas of the country, home buyers are feeling like kids in a candy store. There are many nice options to explore. Just don't get overwhelmed. Figure out what you want in a home, a neighborhood that's right and what you can afford to pay – then go enjoy the shopping experience.
It's easy to get started. The first thing to do is to get qualified for a mortgage. This tells you how much money a lender is willing to loan you, so you know exactly what you can afford. Being qualified also strengthens your position when making an offer because the seller knows you're a pre-approved borrower. Please contact us and we'd be happy to help you through this process.
There may never be a better time to buy. One thing's for sure, mortgage rates and home prices won't stay at these historic levels forever. When you find a home you fall in love with, don't let it get away. Remember, you want the best home, not just the best deal, and holding off on a purchase for things to improve, could lose you the home of your dreams.
Feel free to call or email us about these or any matters relating to home financing or refinancing. We're glad to talk further about any of these topics... Have a great day!
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