RhettCo.com

Mortgage Info Update

Rhett — Wed, 23 Jun 2010 20:13:16 +0000

The fed announcement, which contained the key phrase “exceptionally low levels of the federal funds rate for an extended period”, came out pretty much as expected. The announcement followed a poor 5 year auction, which traders gave a grade of “D”. The $38 Billion auction saw a higher 1.995%, light a 2.58 bid-to-cover and an indirect bidder take of 34.6% while directs took 10.7%. Tomorrow we have $30 Billion of 7-year. Mortgage rates are holding steady, with the expected fed language helping balance poor auction numbers. The FOMC Statement is below, followed by some additional market news.

Release Date: June 23, 2010

For immediate release

Information received since the Federal Open Market Committee met in April suggests that the economic recovery is proceeding and that the labor market is improving gradually. Household spending is increasing but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls. Housing starts remain at a depressed level. Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad. Bank lending has continued to contract in recent months. Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be moderate for a time.

Prices of energy and other commodities have declined somewhat in recent months, and underlying inflation has trended lower. With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action was Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to a build-up of future imbalances and increase risks to longer-run macroeconomic and financial stability, while limiting the Committee’s flexibility to begin raising rates modestly.

New Home Sales Plunge 32.7% in May to a seasonally adjusted annual rate of 300,000 the lowest since 1963 when the reporting began. New home sales is a small part of the overall housing market, accounting for just 8% of homes sold in April. The 32.7% decrease was also a record. The sharp drop followed two big increases that reflected buyers rushing to market before the tax credit expired. The decline exceeded what had been dire expectations, and is likely to raise fears about housing. The sector is a sore spot within the broader economy. Year over year, sales were down 18.3%. The median price for a new home decreased, year over year, in May by 9.6%, to $200,900 from $222,300 in May 2009. Inventories of new homes slid 0.5% in May to an estimated 213,000 homes for sale, from 214,000 at the end of April. But because of the severe sales drop the months’ supply at the current sales rate leaped to 8.5 from a revised 5.8 in April. Regionally, new-home sales plunged 23.9% in the Midwest, 53.2% in the West, 25.4% in the South, and 33.3% in the Northeast.

FOMC rate decision expected at 2:15 today. The FOMC is widely expected to keep its key policy rate–the federal-funds target rate–at a record low near zero for an extended period to revitalize the economy, a decision the central bank has maintained since December 2008. Investors will scrutinize clues from the Fed on the economic outlook given that many recent U.S. data releases have been weak, including an unexpected plunge in existing home sales and weaker-than-forecast job growth.

Treasuries Rally Before Fed’s Decision as New Home Sales Drop to a Record . The two-year note’s yield dropped to 0.673% Tuesday, the lowest level since 0.662% on May 25, as the bond market rallied on an unexpected plunge in existing home sales, which boosted demand for safe assets. The yield is not far away from its record low of 0.601% hit in mid-December 2008 after the collapse of Lehman. The five-year auction, the second leg of this week’s $108 billion in new government note sales, is due at 1 p.m. EDT. While the five-year note auction faces some risks as it will be held before the FOMC rate announcement, traders said the demand should be fine as many investors prefer safe assets as the quarter end approaches. Tuesday’s $40 billion two-year note sale was stellar, which was offered at the lowest auctioned yield ever for the maturity.

Lower Inflation Expectations in U.S. Signal No Rush for Fed to Raise Rates A decline in expectations for future inflation in the U.S. signals that Federal Reserve policy makers should be in no hurry to raise rates as they meet today to set borrowing costs.

U.S. House Negotiators Rebuff Attempt to Revive Plan to Audit Fed Policy U.S. House lawmakers negotiating an overhaul of financial regulation rebuffed an attempt by Republicans to revive a measure that would remove the Federal Reserve’s shield against audits of its interest-rate decisions.

Outlook for Home Prices Grows Darker. A monthly report by MacroMarkets LLC, due for release Wednesday, found that 56% of the 106 economists and other analysts surveyed expect home prices to decline this year. That is up from 40% a month ago.

Bernanke May Get Help From Stronger Yuan in Bid to Buoy Prices, Employment Federal Reserve Chairman Ben S. Bernanke’s efforts to keep U.S. prices and employment from falling may get a helping hand from China’s decision to let its currency gain against the dollar.

Housing Sales Slide Resumes in Threat to Obama’s Stimulus-Driven Recovery The U.S. real estate market threatens to undercut the Obama administration’s stimulus-driven economic recovery as home sales resume their record slide following the end of the federal homebuyer tax credit.

Housing on the Rocks, Make It a Double? Instead of a double-dip recession in housing, this week’s slew of economics reports are likely to point to a long, slow melt.

15 Acre RV Park Lake of the Ozarks

Rhett — Mon, 14 Jun 2010 15:48:08 +0000

13242 Montana Road
Gravois Mills, MO 65037
Spaces: 28+
Price: $725,000

Beautiful Lake of the Ozarks Property, perfect for an owner operator. 28 complete RV sites on 3 +/- acres, with electric, cable, internet, water and sewer and 12 additional acres for development. Well established customer base with 15 yearly customers. Includes 2 cedar cabins (furnished), gift store (very established store featuring Missouri wines and hand made/painted wine glasses), pool, laundry facility, game room and permanent rental home, developed up and running web page, local radio presence, member of Westside Chamber of Commerce and Loco (a local campground organization) as well as members of Woodall’s, Moarc and Trailer Life. Newer owners/managers home with 3 bed 2 baths. Verizon Cell tower on property with 25 year lease, and storage facility. Quiet side of Lake of the Ozarks and conveniently located near Gravois Mills, Laurie and Camdenton. Turn key business with everything updated.

Contact Information:

Rhett Smillie
KW Commercial
2925 E Battlefield Suite 111
Springfield, MO 65804
Phone: 417-883-4900
FAX: 417-447-9775
www.rhettco.com
Email: rhett@smillie.net

Commercial Real Estate Post

Rhett — Fri, 14 May 2010 13:23:38 +0000

GE Capital Real Estate
To succeed in this real estate market, investors and managers need a new kind of toolbox. While financial implements are still critical, more traditional tools of the trade, a hammer, paintbrush and the number of a good plumber, for example, have joined them.

As the industry experiences one of the worst downturns in decades, real estate investors and managers are reconsidering strategies for success. Many of them have embraced a back-to-basics approach that provides a path for staying strong in a difficult economy. A key part of that approach: actively maintaining their properties.

Download the full White Paper

repost from:
Larry Culbertson, Regional Commercial Director,CLC Member, Dir. KWC Atlanta, Midtown, Assoc.Broker, Principal, The C Group, LLC

1456 Trafficway Springfield MO

Rhett — Wed, 21 Apr 2010 22:03:48 +0000

1011 E McCanse $74900 MLS#1005874

Rhett — Tue, 06 Apr 2010 19:39:32 +0000

Virtual Tour

1011 E McCanse Springfiled MO $74,900 MLS#1005874

Rhett — Tue, 06 Apr 2010 19:12:40 +0000

Commercial Real Estate in Springfield MO

Rhett — Wed, 10 Mar 2010 06:03:09 +0000

2240 N Grant Springfield MO
Great stand alone building just south of Kearney on Grant. All concrete block construction and many recent updates. Property currently has efficency living quarters in rear with kitchen and full bath (all newer). This very secure building has been a gun shop and is currently a locksmith shop. Garage/shop area in back attached to building with overhead door. $89,900

Residential Single Family 3 bed 2 bath Inground Pool SW springfield

Rhett — Wed, 24 Feb 2010 06:24:49 +0000

322 S Campbell in Historic Downtown Springfield Missouri

Rhett — Thu, 28 Jan 2010 06:15:15 +0000

Fantastic downtown location perfect for boutique, salon, cafe, pub, etc. Tons of character and ready to move in! This downtown building has been completely renovated including newer heat and air, alarm system, electric system update and repainted. The roof was replaced in 2002. This location has two bathrooms and a janitor’s closet w/sink. The property is located just north of Historic Walnut Street and has a semi private courtyard off of the back of the building with black iron fencing and gates. The interior boasts tons of natural lighting, stained concete floors, custom island/check out counter/bar with custom limestone top and 12 foot cielings with the original stamped ceiling panels.

Cick here for a flyer

Missouri Tax Credit Info

Rhett — Fri, 27 Nov 2009 15:43:38 +0000

Contact: Scott Holste, (573) 751-0290
Governor’s Office
Scott.Holste@mo.gov
Jon Galloway, (573) 751-7595
Treasurer Zweifel’s Office
Jon.Galloway@treasurer.mo.gov
FOR IMMEDIATE RELEASE
Nov. 24, 2009
Gov. Nixon, Treasurer Zweifel unveil plan to increase
home ownership and energy efficiency by paying
Missourians’ property taxes for a year
JEFFERSON CITY, Mo. – Gov. Jay Nixon and State Treasurer Clint Zweifel, chairman of the
Missouri Housing Development Commission (MHDC), today announced a proposal to pay the first
year of property taxes for income-eligible Missourians who buy a new or existing Missouri home after
Jan. 1, 2010. They will take the proposal before the MHDC at its Dec. 18 meeting.
If approved by the commission, Missouri families making less than $98,000 a year who enter into a
contract to purchase a new or existing Missouri home after Jan. 1 would have their property tax paid up to
$1,250. Those families would be eligible to have an additional $500 paid towards the tax bill if the
homeowner purchases a energy efficient home or items, such as Energy Star appliances, to make the
home more energy efficient.
The proposal is expected to pay the property taxes for 9,000 to 11,000 Missouri families using $15
million in unencumbered reserve funds at MHDC.
“Purchasing a home not only helps families achieve part of the American dream, but it also strengthens
our economy and provides good-paying jobs,” Gov. Nixon said. “Because this is so vital to our state’s
economic growth, we want to do everything feasible to encourage people to buy homes and make it easier
for homeowners to save money and energy resources by installing energy-efficient features in their
homes.”
In a report earlier this month that identified Missouri as one of 11 states most likely to recover from this
recession the quickest, Moody’s listed Missouri’s diverse economy and stable housing prices as one of
the main reasons for a potentially quick economic recovery in comparison to other states.
“I appreciate Gov. Nixon and the panel’s efforts on ways to reinvest in the economy and put Missourians
back to work,” Treasurer Zweifel said. “Putting Missourians back to work and renewing the promise of
responsible homeownership have been two of my priorities on MHDC.”
In August, Gov. Nixon formed the Home Building and Residential Energy Efficiency Advisory Panel
by executive order to study how Missouri can both help increase home ownership and home building to
improve the economy and increase homeowner access to energy-saving measures. The 19-member panel
included representatives of the home building industry, banking institutions, real estate businesses, trade
unions and community action agencies, along with experts in energy efficiency and “green” building.
The advisory panel analyzed the strengths and weaknesses of the current new housing situation in
Missouri, as well as the opportunities and threats being faced. The panel also examined the current home
building market and the reasons to encourage energy efficiency home building in Missouri. Among the
recommendations were proposals to use the MHDC to promote home ownership and incentivize energy
efficiency. The panel’s full report can be found online at www.mo.gov
Who is eligible?
Income eligibility is based on previously adopted MHDC guidelines. Depending on the county of the
home sale, household income limit guidelines for low to moderate income persons or families approved
by MHDC last spring range from $58,300 to $98,560. These grants are for owner-occupied purchases
only.
When would it start?
If approved by the MHDC at its next meeting on Dec. 18, 2009, funds would be available for contracts
entered into after Jan. 1, 2010, on a first-come, first-served basis.
Where is the funding for this program coming from?
The funding would come from a reserve fund held by MHDC earned through successful management of
mortgage loans made to low- and medium-income individuals and families. These reserve funds are not
from general revenue, nor subject to the legislature’s appropriation process.
How much of the property tax bill could be paid?
Eligible homeowners could have up to $1,750 of their property tax bills paid. According to the State Tax
Commission, the average residential real estate tax bill for a Missouri homeowner is $1,160. An incomequalified
individual or family is eligible to receive $1,250 or the amount of their first year’s real estate tax
bill, whichever is highest, when they purchase a new or existing residential home. An income-qualified
individual or family can enhance this base amount, up to $1,750, if they purchase an energy-efficient new
home or make energy efficient improvements to an existing home that is purchased. These improvements
must be made prior to closing or within 60 days of closing.
How do Missourians apply for these funds?
Forms and affidavits will be part of documents executed at the home sale closing. Additional receipts and
documentation will be required for proof of energy efficient improvements.
What energy-efficiency upgrades would be eligible for the additional incentive?
Eligible improvements would include installing high-performance windows, house wraps, programmable
thermostat controls, water-efficient toilets and faucets, and energy-efficient water heaters, lighting and
appliances; sealing heating and air conditioning ductwork; caulking; insulating water heater pipes;
increasing the R-value of insulation in crawl spaces and attics; and conducting on-site energy efficiency
inspections and tests, including a blower door test, which tests the overall energy efficiency of the house,
and a duct blaster test, which tests how much the air ductwork leaks.