Coming Soon in Leesburg’s Red Cedar West!
20425 Crimson Pl, Leesburg, VA 20175
Coming Soon! Gorgeous Randolph Model in Red Cedar West, Must See!
4BR/4+1BA Single Family House offered at $949,900
- Year Built 2006
- Sq Footage 6,700
- Bedrooms 4 Bathrooms
- 4 full, 1 partial
- Floors 3
- Parking 3 Car garage
- Lot Size 59,241 sqft
- HOA/Maint $103 per month
DESCRIPTION
This Home is situated on the largest and best lot in Red Cedar West with some of the most beautiful views! This Home features a huge, flat backyard, all brick exterior, three car garage, gourmet kitchen with Jenn-Air Stainless Steel Appliances and cherry cabinets, a large sun filled morning room, granite countertops in kitchen and master bath, sand in place hardwood flooring throughout main level and more! The large finished lower level with media room, exercise room, large rec room with full bath is sure to impress!
With about 6700 sf, you have plenty of room to do just about anything!
PROPERTY PHOTOS
Main Exterior
Dining Room
Family Room
Living Room
Master Suite
Rear Exterior
More Photos and information soon to come!
Community Spotlight: Belmont Country Club
- Belmont Country Club’s Arnold Palmer Course
Image waking up to such a beautiful setting every single day. What would you feel: relaxed, happy, stunned? Whatever it is you must admit that it is a positive feeling correct? Well that’s why we absolutely adore this beautiful and unique community.
Think about it, does your current neighborhood offer lawn maintenance in the HOA? Or Hi-Speed Internet & Cable by Comcast? Yes alot of the neighborhoods have been close but most of which hasn’t been able to beat Belmont’s accessibility to major roads and location.
Let us know what you think of Belmont and if you still don’t like what you read, then call us and we will give you a personal tour like no other!
Belmont’s Homeowners Association Is “One of a Kind”
Featuring
- Full Lawn & Landscape Maintenance which Includes: Mowing, Fertilization, Aeration, Weed Control, Pruning of Shrubs & Trees and Mulching
- Cable Television
- High Speed Internet
- Always on Internet & Belmont Intranet
- Trash & Recycling
- Social Membership
- Swimming Pools, Tennis Courts, Basketball Courts, Volleyball Pit, Soccer Field, Walking & Biking Trails, Spectacular Playground
- Access to the Clubhouse
- You and your family will enjoy our private Dining Facilities, Club Grill and all social events
- Gate Guarded 24 hours a day
- Resort Like Living Is Pricelsss!
- Social Membership
- 36,000 S.F. Country Club
- Historic Belmont Manor Home
- Arnold Palmer Signature Golf Course
- Lighted Har-Tru Tennis Courts
- Recreation Center Featuring Pools, Hard Courts, Basketball, Volleyball, Sport Fields and Huge Playground.
- Fitness Center
- Aerobics Studio
- Adult Pool, Hot Tub and Cabana
- Hosts Summer Concert Series
Check out photos of this community here!
Currently Living in Belmont and a Previous Toll Brothers Community Manager, Greg has built an unsurpassed expertise of this beautiful, “one of a kind” community. If you wish to experience the community for yourself contact Greg today at 571-223-2947!
Belmont Country Club,
Where Golf is More than Just a Sport,
Its a Way of Life!
Community Spotlight: Beacon Hill
Welcoming Sign to Beacon Hill
Equestrian Center & Golf Course
Beacon Hill's Private Residents Only Equestrian Grounds
Beacon Hill is one of the area’s premier estate communities. This community of mostly 3 acre lots is simply gorgeous. The significant elevation changes not only showcase the homes but also form the layout of the 27-hole Championship golf course. Beacon Hill also features a private equestrian center with stables. Home to the area’s elite, Beacon Hill’s residents include CEOs, VPs and professional athletes.
It’s a Perfect Time to Buy
Buildable Homesite that's currently For Sale by Apex Custom Homes
With prices being low and mortgage rates being great, its seriously never been a better time to buy into a luxury community. The rolling terrain perfectly showcases the custom homes ranging from 4,000 to 10,000+ square feet. Currently there are homes on the market ranging from one to five million dollars. There are still a few buildable homesites within the community and of course a few resales. For more information on our current listing, Alysheba visit our website.
Previously Home to a Legend
The land now known as Beacon Hill the community was home to the estate of Arthur Godfrey in the 1950s. In fact the home that Godfrey built still stands and can be seen through the trees in the winter.
Located Minutes from Leesburg and the Dulles Hi-Tech Corridor
Enjoy the views of the community's location
The location gives residents easy access to the area’s finest restaurants and shopping. It has great access for commuting yet feels like its in the heart of Virginia hunt country. Also, it only takes a few minutes to the historic towns of Leesburg, Waterford, Hamilton, Purcellville and Round Hill.
All throughout Beacon Hill you see beautiful scenery and majestic views, here are some of them:
• The Catoctin/Blue Ridge Mountains
• Virginia’s well-known hills and valleys, along with countryside
• The elevation allows views of Leesburg’s city lights and Dulles Hi-Tech Corridor
• Private equestrian grounds
• Beacon Hill’s own 27-hole golf course
It’s nearly impossible not to be captivated and relaxed when visiting this community. If you want to learn more about Beacon Hill, feel free to visit our website where we will be adding more information about the community.
Also to learn more about 40925 Alysheba Dr – our current listing in Beacon Hill, visit our website.
18752 Upper Meadow Dr – Lansdowne – $929,900
This is a Gorgeous Estate Home on a Beautiful 1/2 Acre Lot Backing to Trees! Chefs Kitchen w/GE Monogram Appliances, Huge Island w/Prep Sink Breakfast Bar! Elegant Master Suite w/Coffered Ceiling, Sitting Room w/Fireplace and Private Veranda! Luxury Bath w/Ultra Shower Jacuzzi Tub! LL w/Wet Bar/Kitchen, Bedroom Suite, Theater Room! Deck, Patio, Hot Tub, Irrigation, Landscaping! Must See!
For a Flyer on this property go here.
For more information visit FranklyMLS: http://franklymls.com/LO7214489
Market Update – May 26, 2009
Not much meat in this weeks newsletter because of the holiday. That being said, the US Treasury will be in the credit markets this week selling over $100billion in notes to continue to pay for economic packages. That is a pile of supply. If foreign investors show a fair amount of demand for this supply, mortgage interest rates should remain relatively stable. A poor foreign showing could put some upward pressure on mortgage rates.
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Memorial Day Holiday
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| As your Trusted Advisor, I sincerely hope you have been enjoying your complimentary subscription to the MORTGAGE MARKET GUIDE WEEKLY. As the Memorial Day holiday is being observed, the next full issue will arrive on Monday, June 1. I wish you and your family a peaceful Memorial Day holiday, as we remember the sacrifices of all of our Armed Forces servicemen and women, past and present, who have worked so hard to protect our great country.
The MORTGAGE MARKET GUIDE WEEKLY is the industry’s leading publication of this type, and I am pleased to provide this valuable resource to you. If you feel any of your clients, friends, family members, or associates would benefit from keeping up-to-date on market and economic trends in this easy to read format, please let me know, and I would be more than happy to add them free of charge. Best wishes to you, and please do not hesitate to contact me if I may be of any assistance to you at this time! |
The Mortgage Market View…
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What’s A Couple Extra Trillion?
While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet.
And $1 BILLION. now we’re really getting somewhere.
Next we’ll look at ONE TRILLION dollars. This is that number we’ve been hearing about so much. What is a trillion dollars? Well, it’s a million million. It’s a thousand billion. It’s a one followed by 12 zeros.
(And notice those pallets are double stacked.YOU are the little person in the red shirt standing at the lower left corner) |
The Week’s Economic Indicator Calendar
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Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of May 25 – May 29
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Stephen T. Cowen 612 Hunton Place Leesburg, VA 20176  |
Market Update – May 18, 2009
Steve Cowen, Director of Mortgage Production at Middleburg Bank, sums up the current mortgage situation for us. To contact Steve for any mortgage related questions he can be reached at 703-737-3403 or email him at scowen@middleburgbank.com.
There is little on tap this week in the way of notable economic reports and of course we are headed into a Holiday weekend. Late in the week we could see some volatility as trading activity slows down. This can make for choppy mortgage prices. There is nothing fundamental at this point to think rates will be moving notably higher or lower in the near term. Purchase activity seems to have picked up in the past several weeks. Have a great week.
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Last Week in Review
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| “I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW.” Og Mandino. The markets took those words to heart last week, with plenty of timely action ranging from telling economic reports to interesting announcements from the government, related to homebuyers.On the economic news front, the headlines were mixed. On the disappointing side was a worse than expected Retail Sales Report, which showed that consumers are continuing to tighten their purse strings. Not entirely surprising, but it did mark the eighth decline in the past ten months for Retail Sales. Initial Unemployment Claims were also reported worse than expected – which some said were due to massive Chrysler layoffs – but still was disappointing after there had been some recent signs of improvement in the labor markets.
However, there was positive economic news as well, including improved readings from the manufacturing sector, as the New York Empire State Manufacturing Index improved for the third month straight. Consumer Sentiment was also better than the previous reading and the best since September of last year. So although the consumer isn’t out spending money with abandon just yet, this report shows that most folks are indeed starting to feel better about the economic outlook, likely due in part to the values of their investment accounts improving as Stock values move higher. Looking at the always-important inflation headlines, wholesale inflation levels moved higher in April, driven by an increase in food prices. On the consumer inflation side, the Consumer Price Index (CPI) report was flat, although the Core CPI – which removes food and energy prices – was a little hotter than expected, largely due to a huge spike in tobacco prices by a smoking 9.3%! Core inflation has been moving slightly higher since February, as you can see in the chart below. ———————– Chart: Core Consumer Price Index
Remember, inflation is the archenemy of Bonds and home loan rates, so I will be keeping a close eye on this in the coming months. And as if that all weren’t enough, the government got in on the action, with the Department of Housing and Urban Development’s Federal Housing Administration making a very interesting announcement that ultimately appeared to be slightly premature. They announced a new plan to allow first-time homebuyers to use the Federal tax credit of up to $8,000 for a down payment at closing, rather than making buyers wait to receive the benefit after the fact at tax time. However, no details or logistics of how this will actually work were released, causing them to actually pull some of the industry announcements as they regroup to provide more details. This could be great news for first-time homebuyers, who are slated to account for 53% of home purchases in 2009. When the details of the program are fully released, I will certainly keep you posted as I learn more. Bonds and home loan rates were able to make some improvements in the early part of the week as weak economic reports caused money to flow from Stocks into Bonds. And while Bonds lost some ground on Friday, home loan rates still ended the week slightly improved from where they began. NOW IS THE PERFECT TIME TO TAKE SOME ACTION IN GETTING YOUR HOME READY FOR SUMMER. CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW FOR SOME GREAT TIPS AND IDEAS. |
Forecast for the Week
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| The week ahead is sure to be just as action packed as the last, including a read on the housing market via Tuesday’s Housing Starts and Building Permits report. And given last week’s worse than expected Initial Unemployment Claims report, this Thursday’s updated number will be one to keep an eye on.Thursday also brings more news from the manufacturing sector with the Philadelphia Fed Report. This monthly survey of manufacturing purchasing managers conducting business around the tri-state area of Pennsylvania, New Jersey, and Delaware is one of the most-watched manufacturing reports overall. And given the good news from last week’s New York Empire State Manufacturing Report, it will be interesting to see what the Philadelphia Fed Report reveals.
Remember: Weak economic news normally causes money to flow out of the Stock market and into the Bond market, helping Bonds and home loan rates improve…while positive and strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates made some improvements last week, so I will be watching closely to see if this direction continues in the coming week. If you have questions as to how current historically low interest rates might benefit you, or someone you know, please feel free to send me an email or give me a call – my contact information is right at the top of this newsletter. Chart: Fannie Mae 4.0% Mortgage Bond (Friday May 15, 2009)
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The Mortgage Market View…
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| “Summerize” Your Home with These Spring Projects
It’s hard to believe, but the official start of summer is just a few weeks away! Here are some spring cleaning projects you should definitely consider tackling before the hottest days of summer descend upon us. Air Conditioning It’s important to have your air conditioner in perfect working order before summer starts. Taking care of any issues after the summer heat hits can potentially result in an increase in price, as well as an increase in the time it takes for a technician to visit your home. You should also replace any filters now. Simply remove the old one and take it to your local home improvement center. Sales representatives should have no problem finding its replacement. Clean out your garage Organizing a garage can be an excruciating experience during the hot summer months, so if that’s something you need to do, don’t put it off any longer. Once you clean out your garage, either donate any unwanted items or sell them. Paint Late spring is the perfect time to paint the interior of your home since the weather best lends itself to keeping your windows open, allowing the fresh air in and the paint fumes out. If you decide to paint the inside of your home, think about lightening the existing color as opposed to darkening it. Lighter colors are not only inviting, they create the illusion of a bigger, more open space. Buy fans Installing ceiling fans and using portable fans are great methods for cutting the heat inside your home. They are also far less expensive to use than an air conditioner. Using fans of any kind also enables you to keep windows open at night, allowing fresh air to circulate throughout the house. Install dimmer switches Dimmer switches not only add ambience, they also cut down on energy and the unwanted heat given off by brighter bulbs. Another tip is to use low-wattage light bulbs whenever possible. Good luck and happy “summerizing!” |
The Week’s Economic Indicator Calendar
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Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of May 18 – May 22
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Stephen T. Cowen 612 Hunton Place Leesburg, VA 20176 |
Market Update – May 11, 2009
The market got a bit jittery late last week with anxious moments leading up to the employment numbers for April. These numbers were better than expected but our economy still shed almost a half of a million jobs. This week the market will look closely at our retail sales numbers (are consumers buying things again?) and a closely watched gauge on inflation. I will keep you posted. Rates are still hovering close to historic low’s. Please feel free to give me a call with any questions.
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| For the week of May 11, 2009 — Vol. 7, Issue 19 |
Last Week in Review
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| “REALITY IS THE LEADING CAUSE OF STRESS AMONGST THOSE IN TOUCH WITH IT.” Lily Tomlin. The reality of the recession has been stressful for many of us, but various pieces of news this week show things may be starting to turn around.
Friday’s important Jobs Report showed there were 539,000 jobs lost in April versus expectations of a 610,000 loss, representing the smallest job loss since October. Even though the Unemployment Rate moved higher and hit a 26-year high of 8.9%, this is a lagging indicator, and many other data points hint that the worst could be over for the job market, and could lead to lessening stress in this area during the months ahead. ———————– Chart: Jobs Report
Speaking of stress, last week’s “stress test” results showed the banking system is on the mend, and in better shape than it was a few months back. 10 of the 19 largest banks will need additional capital to cope with potential future challenges, but as a whole the banking system is solvent and regaining health. A crucial point to remember is that almost all of the institutions under scrutiny elected to choose the cash flow method of asset valuation, as opposed to the mark-to-market method. This would not have been possible without the Financial Accounting Standards Board (FASB) allowing for this change last month. Positive news came from Wal-Mart, saying that their sales for April were better than forecast. And they say, “As goes Wal-Mart, so goes the entire retail sector”, so this may mean health is also coming back to retailers at large. Bonds attempted to regain some ground in the early part of the week, but the good news from Thursday’s bank stress test, the better than expected Jobs Report on Friday, and the rally in Stocks caused Bonds to fall below key support levels. As a result, Bonds and home loan rates ended the week slightly worse than where they began. NO NEED TO STRESS OVER THE LATEST POSTAGE RATE INCREASE. CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW FOR ALL THE CHANGES YOU NEED TO KNOW ABOUT. |
Forecast for the Week
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| More news will be coming on the health of the retail sector on Wednesday, via the Retail Sales Report for April. March’s Retail Sales Report showed that consumers were still closely watching their spending, so it will be interesting to see which way sales for April have moved, especially given the good report from Wal-Mart.
We will also learn this week if inflation is something we need to start stressing about. Thursday brings the wholesale price inflation measuring Producer Price Index (PPI) Report, while Friday delivers the inflation news on the retail level, via the Consumer Price Index (CPI) Report. Given the large amounts of stimulus being poured into the economy, inflation is sure to be a factor down the road. And since inflation is the arch enemy of home loan rates, it will be important to see what these reports reveal. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bond prices and home loan rates improve, while strong economic news normally has the opposite result, causing Bond prices to move lower and home loan rates to worsen. As you can see in the chart below, Bonds were unable to remain above a key support level after breaking below it last week. I will be watching closely to see if Bonds can boldly break through this resistance and go where they have been before. Chart: Fannie Mae 4.0% Mortgage Bond (Friday May 08, 2009)
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The Mortgage Market View…
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Starting May 11, 2009, it’ll cost you two extra cents to mail someone your thoughts. That’s right…the US Postal Service is implementing its annual price adjustment, and the biggest change for most consumers will be a price increase for First Class stamps from 42¢ to 44¢. Prices for mailing services are reviewed annually and adjusted each May. The information below can help you plan for your postal expenses and figure out how you can save! New Prices Consistent with The Postal Accountability and Enhancement Act, the average increase of the prices is at or below the rate of inflation as measured by the Consumer Price Index. Here’s what the new pricing will be: First-Class Mail letter 1 oz. = .44¢ (current price = .42¢) Postcard = .28¢ (current price = .27¢) Certified Mail = $2.80 (current price = $2.70) First-Class Mail International:
Save with Forever Stamps Remember, if you purchased Forever Stamps prior to May 11 at a lower rate, you can use them even after the price change. As the Postal Service likes to say: Forever really means forever. So try to purchase and use these stamps whenever possible. Forever Stamps are widely available through Post Offices, consignment locations, automated postage centers, and To learn more about the new pricing structure, visit the USPS website. You can also access a press release as well as audio “soundbites” about the new prices on the USPS newsroom. |
The Week’s Economic Indicator Calendar
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Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of May 11 – May 15
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612 Hunton Place Leesburg, VA 20176 |
Market Update – May 4, 2009
This past week has been an interesting one for the mortgage market. Uncle Sam sold about $70billion in notes this week. That is a lot of supply for the fixed income asset market. The results of the banking industry stress tests will be released on Thursday and Friday the unemployment numbers will be released for the month of April. If the results of the stress tests show that the banking industry still may require support, that would be supportive of steady to fractionally lower mortgage rates. Unemployment numbers that are equal to or worse than expectations would also be a positive for steady mortgage rates. Please feel free to give me a call with any questions. Many thanks.
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| For the week of May 11, 2009 — Vol. 7, Issue 19 |
Last Week in Review  |
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| “REALITY IS THE LEADING CAUSE OF STRESS AMONGST THOSE IN TOUCH WITH IT.” Lily Tomlin. The reality of the recession has been stressful for many of us, but various pieces of news this week show things may be starting to turn around.
Friday’s important Jobs Report showed there were 539,000 jobs lost in April versus expectations of a 610,000 loss, representing the smallest job loss since October. Even though the Unemployment Rate moved higher and hit a 26-year high of 8.9%, this is a lagging indicator, and many other data points hint that the worst could be over for the job market, and could lead to lessening stress in this area during the months ahead. ———————– Chart: Jobs Report
Speaking of stress, last week’s “stress test” results showed the banking system is on the mend, and in better shape than it was a few months back. 10 of the 19 largest banks will need additional capital to cope with potential future challenges, but as a whole the banking system is solvent and regaining health. A crucial point to remember is that almost all of the institutions under scrutiny elected to choose the cash flow method of asset valuation, as opposed to the mark-to-market method. This would not have been possible without the Financial Accounting Standards Board (FASB) allowing for this change last month. Positive news came from Wal-Mart, saying that their sales for April were better than forecast. And they say, “As goes Wal-Mart, so goes the entire retail sector”, so this may mean health is also coming back to retailers at large. Bonds attempted to regain some ground in the early part of the week, but the good news from Thursday’s bank stress test, the better than expected Jobs Report on Friday, and the rally in Stocks caused Bonds to fall below key support levels. As a result, Bonds and home loan rates ended the week slightly worse than where they began. NO NEED TO STRESS OVER THE LATEST POSTAGE RATE INCREASE. CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW FOR ALL THE CHANGES YOU NEED TO KNOW ABOUT. |
| Forecast for the Week |
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| More news will be coming on the health of the retail sector on Wednesday, via the Retail Sales Report for April. March’s Retail Sales Report showed that consumers were still closely watching their spending, so it will be interesting to see which way sales for April have moved, especially given the good report from Wal-Mart.
We will also learn this week if inflation is something we need to start stressing about. Thursday brings the wholesale price inflation measuring Producer Price Index (PPI) Report, while Friday delivers the inflation news on the retail level, via the Consumer Price Index (CPI) Report. Given the large amounts of stimulus being poured into the economy, inflation is sure to be a factor down the road. And since inflation is the arch enemy of home loan rates, it will be important to see what these reports reveal. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bond prices and home loan rates improve, while strong economic news normally has the opposite result, causing Bond prices to move lower and home loan rates to worsen. As you can see in the chart below, Bonds were unable to remain above a key support level after breaking below it last week. I will be watching closely to see if Bonds can boldly break through this resistance and go where they have been before. Chart: Fannie Mae 4.0% Mortgage Bond (Friday May 08, 2009)
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| The Mortgage Market View… |
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Prices for mailing services are reviewed annually and adjusted each May. The information below can help you plan for your postal expenses and figure out how you can save! New Prices Consistent with The Postal Accountability and Enhancement Act, the average increase of the prices is at or below the rate of inflation as measured by the Consumer Price Index. Here’s what the new pricing will be: First-Class Mail letter 1 oz. = .44¢ (current price = .42¢) Postcard = .28¢ (current price = .27¢) Certified Mail = $2.80 (current price = $2.70) First-Class Mail International:
Save with Forever Stamps Remember, if you purchased Forever Stamps prior to May 11 at a lower rate, you can use them even after the price change. As the Postal Service likes to say: Forever really means forever. So try to purchase and use these stamps whenever possible. Forever Stamps are widely available through Post Offices, consignment locations, automated postage centers, and To learn more about the new pricing structure, visit the USPS website. You can also access a press release as well as audio “soundbites” about the new prices on the USPS newsroom. |
| The Week’s Economic Indicator Calendar |
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Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of May 11 – May 15
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612 Hunton Place Leesburg, VA 20176 |
Market Update – May 1, 2009
Two relatively important economic looks are due this week. There is a FED meeting this week that concludes Wednesday and an important inflation indicator is due out Thursday. There is not likely to be any surprises from either so mortgage rates will take the cues from the stock market. If stocks do not perform well this week, look for mortgage rates to remain stable to fractionally better. Give me a call with any questions. Have a great week.
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| For the week of Apr 27, 2009 — Vol. 7, Issue 17 |
| Last Week in Review |
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| “AN OPTIMIST WILL TELL YOU THE GLASS IS HALF FULL; THE PESSIMIST, HALF EMPTY; AND THE ANALYST WILL TELL YOU THE GLASS IS TWICE THE SIZE IT NEEDS TO BE.” Anonymous. And indeed – last week certainly contained news that could cause you to view the economy in an optimistic or pessimistic light – let’s take a closer look.
Good earnings reports from financial companies continued as Bank of America reported earnings that were ten times greater than expectations – that’s right, TEN times better. The company also said it earned more in the first quarter of 2009 than through all of 2008, largely a result of enormous refinancing activity. In addition, Treasury Secretary Tim Geithner said that most banks are well capitalized, and there are signs that credit market conditions are improving, which is definitely something to be optimistic about. However, as earnings season marched on, there were also some weak reports, including clinkers from The Bank of New York, Caterpillar, Dupont, Coca-Cola, Merck and United Technologies.
In other news, Initial Jobless Claims were reported in-line with expectations. Initial Jobless Claims are a leading indicator and last week’s number does not yet suggest that the employment market is starting to improve. And March’s Durable Goods Orders marked the 7th negative reading in the last 8 months, as tighter credit and lack of business investment is continuing to fuel these negative numbers. However, it will be interesting to see how these numbers change with lending abilities now freed up following the recent relaxation of mark-to-market accounting rules, which will in turn make it easier for businesses and consumers to buy and spend. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. And last week’s mix of news saw money flowing back and forth from Stocks to Bonds, with Bonds and home loan rates ultimately ending the week very close to where they began. WHETHER YOU’RE EXPECTING TO GET A JUICY TAX REFUND OR NOT, MAKING WISE CHOICES WITH YOUR MONEY IS MORE IMPORTANT THAN EVER! CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW FOR SOME GREAT DOLLAR SMART TIPS. |
On the housing front, New Home Sales came out slightly better than expected, and it was especially good to see that the inventory number continues to fall – now at a 10.7 month supply, compared with February’s 11.2 months. Existing Home Sales came in slightly below market estimates – and while the report showed that Existing Home inventory in March fell by a modest 1.6%, at the current sales pace it would take an estimated 9.8 months to sell that inventory of properties, slightly longer than February’s 9.7 month reading. | Forecast for the Week |
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| There are several important reports and events to look for this week, and whether they will lean towards optimism or pessimism remains to be seen. On Tuesday the Consumer Confidence Report will show us if consumers are feeling their own glass is half full or half empty, while on Wednesday we will get a read on the economy with the Gross Domestic Product (GDP) Report, which is the broadest measure of economic activity.
Also this week, we have the Fed’s next regularly scheduled Federal Open Market Committee meeting, followed by their Policy Statement and Interest Rate Decision coming on Wednesday afternoon. It will be important to see if the Fed has a positive or negative read on the economy, and if they comment on any of the recent whispers of inflation. And speaking of the Fed and inflation, the Fed’s favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) index found within the Personal Income Report, will be released on Thursday. As you can see in the chart below, Bonds were unable to break through a strong overhead ceiling of technical resistance, which is preventing any improvements in home loan rates. Remember: home loan rates are still near historic lows, but the market is volatile. If we have not yet discussed your own situation, give me a call or quick email so that we can ensure you are positioned properly. And if you have any friends, family members, neighbors or coworkers who might need a word of advice, please remember I’d be honored to hear from them as well. Chart: Fannie Mae 4.0% Mortgage Bond (Friday Apr 24, 2009)
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| The Mortgage Market View… |
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10 Things We Overpay For: You can save big by buying cheap alternatives instead. By Joan Goldwasser, Senior Reporter, Kiplinger’s Personal Finance March 6, 2009 Reprinted with permission from www.kiplinger.com. Does the avalanche of news about layoffs, business losses and a declining stock market have you looking for ways to cut your spending so you can beef up your savings? We’re here to help, with suggestions for less-expensive alternatives to ten everyday purchases (for more ideas, go to www.BillShrink.com, which tracks cell-phone plans and credit cards). Afternoon snacks. Do you munch protein bars as a healthier alternative to a chocolate pick-me-up? You could easily be paying more than $2 per bar and consuming just as much sugar as you would with your favorite candy bar. Stock up on fruit for a fraction of the cost when you do your grocery shopping. You’ll be fitter and save a bundle. Bottled water. Yes, it’s important to drink water every day. But picking up the bottled variety with your lunch is an expensive way to stay hydrated. Rather than spend $2 a day for water, buy a pitcher and a filter for about $20 and drink as much as you want for pennies a glass. A caffeine fix. Can’t get through the day without at least one cuppa Joe? Stopping at Starbucks or Dunkin’ Donuts can set you back as much as $1.65 per cup. Splurge on a pound of gourmet coffee for $8 to $13 and you can make 40 cups for about 20 cents to 33 cents each. Favorite tunes. Do you rush out to buy the latest CD by your favorite group even though there are only one or two songs you really like? Instead of paying up to $18 for the CD, download those cuts you want from iTunes for 99 cents each, or from Amazon for as little as 79 cents. A night at the movies. An evening for two at your local theater costs an average of about $20, including the popcorn — and closer to $30 in major cities. And that doesn’t even count the babysitter. For just $5 a month, you can watch two movies from Netflix or pay $9 for unlimited viewing. If you’re willing to wait a little longer for new releases, borrow them free from your local library. (See Cut the Cable Cord for other inexpensive entertainment options.) Fresh flowers. A bouquet of spring blooms brightens up a room and your mood. But purchasing it from a florist at $25 and up can quickly put a dent in your budget. Check out your local grocery store, which offers a selection of seasonal bouquets for $5 to $10. Fruits and veggies. Sure, precut vegetables and salad mixes that are washed and bagged save a little time. But you’ll pay for the convenience. Broccoli florets and sliced peppers cost $6 per pound, compared with one-third to one-half the price for the uncut versions. Lettuce varieties that are pre-washed and bagged sell for $5.98 a pound. But it takes just minutes to wash and spin dry enough arugula for your evening salad, and you’ll pay one-third as much. Buying whole strawberries rather than sliced ones that are prepackaged cuts the price by 75%. Credit-card fees. Every month, millions of credit-card customers pay their bills late, and they’re assessed as much as $39 each time. Set up an automatic debit and you’ll never incur another late fee. Fax and mail services. Instead of paying FedEx $1.49 to fax one page, sign up to send free faxes from a provider such as faxZero or K7.net. Save on shipping with the U.S. Postal Service’s priority mail service. You’ll pay just $4.95 to mail an envelope or small box anywhere in the US, and your parcel is likely to arrive within two days. Larger packages cost $10.35. That saves at least 50% compared with UPS’s two-day service, the cost of which varies by weight and distance. |
| The Week’s Economic Indicator Calendar |
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Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of April 27 – May 01
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Stephen T. Cowen 612 Hunton Place |
Market Update – 4/14/09
Steve Cowen, Director of Mortgage Production at Middleburg Bank, sums up the current mortgage situation for us. To contact Steve for any mortgage related questions he can be reached at 703-737-3403 or email him at scowen@middleburgbank.com.
The mortgage market sold off a tad at the end of last week on weak trading during a holiday shortened week and a stock market that has been performing relatively well. Rates are still historically low and below 5% for most programs. Earnings season starts in earnest this week. Stronger than expected earnings will likely put upward pressure on mortgage rates as the stock market would likely rally a bit. Weaker than expected earnings and some profit taking would keep mortgage rates stable in the near term.
For More Information Visit: Steve Cowen’s Newsletter
