Daily Archives: July 14, 2012

S&P: Affordable housing issuance set to drop even as demand rises | Bedford Corners Homes

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Falling mortgage rates and tighter credit may force state housing finance agencies to issue even fewer mortgages to low-income borrowers this year, according to Standard & Poor’s research.

State HFAs finance the purchase of affordable housing as long as the rate on their debt is less than the mortgage rates the agencies charge. The downgrade of U.S. credit — by S&P — and other factors drove up the costs on state agency debt. At the same time, mortgage rates continue to plunge to new lows thanks to the Federal Reserve.

The return between their debt and rates is still positive, according to S&P, but thinning.

“The low rates on borrowed money have made the spreads increasingly thin, leaving the agencies with reduced profitability and diminished debt service coverage,” analysts said. (Click on the graph below to expand.)

Issuance of HFA multifamily bonds shifted above $200 billion in 2011, more than doubling from two years prior.

Before the downgrade of the U.S. debt, S&P rated more than half all affordable housing issuance AAA, but as of July, only 8% of these bonds hold the gilded rating, because of the agencies’ link to the U.S. rating.

The loans themselves perform better than the average mortgage, even though borrowers generally have lower FICO scores and a small, if any, down payment. The delinquency rate on HFA loans was roughly 6% in the third quarter, less than the average rate across the entire mortgage space.

Some are already looking to the secondary market to fund future affordable housing loans, according to Moody’s Investors Service.

“Some HFAs have also diversified somewhat and receive revenues from other sources, such as servicing fees,” S&P analysts said. “As long as interest rates remain low, agencies that can exercise these options will remain more strongly capitalized and, in our opinion, have stronger credit quality.”

via housingwire.com

Find Your Handyman on Facebook | Chappaqua Homes

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Word of mouth is still the best way to find a handyman you can trust. If a friend refers a plumber or electrician it’s because they had a good experience, so good that they want to share with you. That means a lot.

Ask Your Group

ID 10038882 300x225 Find Your Handyman on FacebookRecently there have been local groups popping up on Facebook where people can list their local businesses, buy and sell used items, advertise upcoming events, and more. I joined several groups in my area and am always finding great bits of information that I may have missed. One of the great things about these closed groups is that someone has to invite you in. It creates a kind of six degrees of separation feel. Perhaps you don’t know all the people, but you know people who know people who know them. I’ve also joined a moms club on facebook so I have a group of women in my area that I actually hang out and have playdates with. These are the ones I ask when I need something like Smog testing for my car before I can pay the registration. I got referrals to three different testing garages, all of them without any hesitation. It makes me feel good about calling up and making an appointment knowing that friends of mine had good experiences there.
It’s the same with handymen you need to visit your home for plumbing or electrical repairs. Check with your local friends on facebook to see who to use and sometimes you will also hear warnings about who not to use.

Ask The Right Questions

3212671393 70d61466ca 300x199 Find Your Handyman on FacebookWhen you call a handyman, you should be prepared with some questions to ask so you don’t get as many surprises later. learn to find tools online and their names, check out standard prices for common jobs around the house. The first thing you should ask about is the minimum callout charge. What are you paying them to come and find the problem? They are very unlikely to offer a free consultation! Before you agree on a fee, ask if they have insurance and if they have any accreditation or professional affiliations.  Find out if they charge you for travel time, when exactly are they on the clock.

Plumbers and Electricians

Find out if they have tools and parts. If you are going to need to replace parts that they don’t stock, will they get them for you or will you have to go to the hardware store. Ask your electrician if the work you need done requires any kind of permit or inspection.

Roofers

Always get three estimates for big jobs like roofs. Get their opinions on whether to repair or replace the roof and whether you can go over the existing surface or if it needs to come down. Get the warranty in the contract so there is no question about that.

Painter

Whether you are painting inside or outside, make sure that the estimate includes all the prep work. Sometimes the masking and getting the area ready for paint takes longer than the actual application of paint. All the supplies the painter will need should be in the estimate. A painter will usually be able to get a better deal on the paint and supplies because of the volume they buy

via dreamgrow.com

Producer Price Index | Armonk Homes

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In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses producer prices and the cost of living adjustment.

  • Producer price data released today showed that the prices paid by producers rose 0.1 percent for finished goods in June.  Excluding volatile food and energy prices, finished goods prices rose 0.2 percent in June.  Energy prices declined 0.9 percent while food prices rose 0.5 percent in June.
  • If the monthly trend in finished goods prices were to continue, this might be cause for concern, but declines were seen in the prices of intermediate and crude goods suggesting weakness ahead for finished goods prices.  Additionally, price weakness earlier in the year has kept headline producer price inflation to a low 0.7 percent year over year rate while core producer price growth is only 2.6 percent.
  • This relatively low inflation reading gives the Federal Reserve room to continue its current policy of keeping rates low while watching for signs of further economic pressure that might signal a need for extra stimulus.  The minutes from the June meeting released yesterday show that some at the Fed are concerned about the risks of policy accommodation leading to inflation, but those views seem to be held by a minority.  A greater number are concerned about economic weakness, particularly in the job market.
  • Monday data on prices paid by consumers will be out.  Weakness in energy prices is likely to keep headline inflation—prices paid for all items—low, while core inflation is likely to continue to increase at about 2 percent.
  • Cost of living adjustments for social security beneficiaries are made based on CPI in the third quarter.  On its current trajectory, the index is likely to be higher this year than last year meaning some additional money to offset rising costs for beneficiaries in 2013.
via economistsoutlook.blogs.realtor.org