There was not much in the way of data yesterday other than the July personal income and spending report.  Income came in up .2% while spending was also slightly better up .4%.  Lots of news due out this week highlighted by the Weekly Jobless Claims and July Pending Home Sales on Thursday followed by the big one – August Unemployment due out Friday morning. 

The good news from the mortgage rate side is that there really isn’t any strong evidence indicating rates will increase while the economy continues to struggle.  Stock, bond and mortgage markets should continue to see extreme volatility this week.

Josh received his Undergraduate Degree from Babson College in Finance and Entrepreneurial Studies and has his Law Degree from Washington University.

Upper End Properties is real estate company dedicated in understanding its clients’ individual needs and providing them with an exceptional real estate experience. The real estate boutique is located in Clayton, Missouri and has over 14 agents that utilize their vast knowledge and experience to make the buying and selling experience as easy and as enjoyable as possible from start to finish.  In addition to buying or selling a home, Upper End also specializes in property management, corporate relocation, and leasing.  For more information about Upper End Properties and its services please visitwww.upperendproperties.com

The treasury will be borrowing about $102 billion worth of 2 yr, 5 yr and 7 yr notes or roughly $2 billion less than it borrowed last month.  July existing home sales are due out and are expected to be down roughly 13% while new homes sales are actually expected to have increased 3%.  Existing home sales fell 5.1% in June and 2.2% in May.

So – it looks like the trouble for the housing market continues and is even increasing with the expiration of the homebuyer tax credits.  May and June sales were up 19.2% and 9.8% over the same months last year (again most likely a result of the tax credit).  New home sales saw a nice little push in June, increasing 23.6% after a decline of 36.7% in May.  Some of that push could be attributed to such a low volume in May.

Weekly jobless claims, which caused the interest rates markets to decline last week are again expected to decline, this time from 500,000 to 485,000.

Last week, they were expected to decline but ended up increasing 12,000 to 500,000.  Last week the mortgage bond market saw a bump Thursday when jobless claims were released and mortgage rates took a dip.  We’ll also see the 2^ndquarter revision of GDP which is expected to be up 1.4% after a decline of 2.4% was reported last month prior to the release.

Mortgage rate levels will most likely continue to test current low yields.  The only other news due out this week is the Mortgage Bankers Association (MBA) weekly mortgage applications release Wednesday.  Many experts believe that the 10 yr note and 30 yr mortgages are losing momentum in the short term while the longer term still appears bullish.

The bond and mortgage markets opened stronger this morning while US stock indexes and global markets opened weaker.  In the last few weeks it appears that investors have realized that despite Washington painting a picture that the economy is in recovery, the world economy is not in good shape.  This has caused investors to move into the safety of long-term treasuries and in turn caused mortgage rates to fall even lower.  Mortgages opened up .25 basis points from Friday’s close while the DJIA traded down about 13 points at 10:30 this morning.  At 8:30 this morning, the August NY Empire State Manufacturing data hit with the overall index increasing to 7.0 from 5.08 in July.  The new orders component took a hit and went negative for the first time in a while to -2.71 from +10.13, the employment component was better at 14.29 from 7.94 and prices paid for materials decreased due to price declines in commodities.  The National Association of Home Builders housing index came in at 13 down from 14 in July.  This may imply that housing starts which are expected to but up over 1% could actually come in lower tomorrow.  Its becoming very clear that until the housing sector begins some sort of recovers, the US economy will continue to struggle.

Other data due out this week includes July housing starts and permites, PPI, Industrial Production and Capital Uilization Tuesday.  Mortgage Bankers Association weekly mortgage applications come out on Wednesday.  Weekly Jobless Claims, July Leading Economic Indicators, and August Philadelphia Fed Business Index are all due out Thursday.

With the current conditions of the real estate market people have been able to purchase high end properties that they may not have been able to afford in a steady market.  This recent trend to buy that great deal has also left that purchaser wondering what to do with their “old” property.

We see this on a daily basis…in efforts to rid themselves of their old property; sellers are steadily lowering their asking prices with very little to no bites.  This has made the option to put the property up for lease not so bad.  This option that you would think as bad actually can turn out to be profitable in just a few weeks time.

Why is leasing Hot?  People are relocating to St. Louis and are more interested in scouting the area out, so leasing a place has become more appealing.  Some other reasons for the increase in the leasing trend include are attributed to the rise in status of Washington University’s medical school and the nationwide recognition that some of our area hospitals are starting to receive. It’s attracted Medical Students from all over the world to come and do their fellowships.  The rise in divorces has left those couples in dismay scrambling to get some sort of property, so the lease has appealed to them.

Why open your home? We have a lot of clients who are timid about opening their homes to a renter.  What if they damage the place?  What if they don’t pay their rent… etc?  When a lease is done properly it can not only cover your mortgage but could lead to a possible sale.  We make sure to screen prospective tenants for our clients, by running background, employment, income verification and criminal checks.  We also offer a guarantee, if they tenants do not pay their rent in the first six months, we refund our commission.  For the record we have not had to do that.

So when your realtor says the “L”word, don’t be afraid! Leasing can turn out to be a very lucrative move in the long run.

Liz Rainey

30 year conventional bonds increased 69 basis points, 30 year FHA bonds increased 100 basis points and 15 year conventional bonds increased 84 basis points.  Overall these bond price increases led to a decrease in mortgage rates of approximately 8 basis points on average.  Analysts believe investors flocked to bonds last week due to growing concerns with the United States economy.  Two key manufacturing indexes came in weaker than expected and the consumer sentiment index plunged (indicating that consumers are not nearly as comfortable with the state of the economy as Wall Street and Washington would like them to be).

Mortgage markets this week will be affected by the June housing reports that are due out.  June housing starts and permits are due out Tuesday while existing home sales are due out Thursday.  Both numbers are expected to be down from May.  Federal Reserve Chairman Ben Bernanke will speak Wednesday and Thursday.

Overall, the equity markets are expected to struggle this week, adding support to low mortgage rates.

CKC Communications is a public relations and marketing company that specializes in social and interactive media development, event planning, and media relations. They are heavily involved in building business to business relations as well as connecting businesses with their surrounding communities.

Sean and his team pride themselves on helping businesses navigate through the ever changing times. His unique background and experience has helped several area businesses thrive during these hard economic times.

Upper End Properties is happy to have the experience and contacts that Sean and his team brings to an already successful real estate boutique.

Sean Hadley’s BIO:

Sean Hadley has worked in and around the media for over 10 years. He started his career in Kansas City as an Associate Producer at the NBC Affiliate. There he assisted in coverage of the Pharmacist who was arrested for diluting cancer drugs. He also helped revamp KSHB’s Sunday night sports show, before taking a job at KSDK in St. Louis.

At KSDK Sean served as an Assignment Editor for several years. He was involved in coordinating coverage for several big stories in the St. Louis area including the discovery of Sean Hornbeck and the Praxair Explosion.

After working at KSDK for more than 4 years Sean got a chance to work on National Media scene as a producer NBC News. There he continued to grow and expand his editorial knowledge. He was involved in planning news coverage for some of the Nation’s top stories including the election of the country’s first African-American President Barrack Obama and the death of Pop Icon Michael Jackson.

He returned to the St. Louis area in hopes of serving more of an active role in the community. He formed CKC Communications, a public relations/marketing firm that specializes in helping businesses gain exposure through cost efficient marketing methods, as a way of getting involved in the community.

CKC Communications prides itself on keeping businesses connected with the surrounding community. We accomplish this through various marketing techniques including the use of social and interactive media. Our firm has the experience and the resources to accomplish a variety of needs.

At Upper End Properties, we consider our success and the success of the Saint Louis community one in the same.  We strive to deliver our best service not only to those who are interesting in the real estate market, but also those who need us the most.  Through our charitable giving program, we make donations to various charities around Saint Louis with every real estate transaction completed.  Our team has even gone the extra yard by volunteering to work “hands on” with Habitat for Humanity.  Our agents traded in the jackets and ties for gloves and hard hats to work on a home project in North Saint Louis.  We are always looking for projects such as those provided by Habitat for Humanity for the improvement of both our company and our community.

We are interested not only in improving the homes in our community, but also supporting those in need, regardless of their involvement in the real estate market.  We extend the benefits of our business to charitable organizations such as Operation Food Search, Ronald McDonald House, Big Brothers Big Sisters, Siteman Cancer Center, Humane Society and Kilo Foundation.  See our Charitable Giving page to see the complete list.

Has anyone heard of this “code of conduct” involving real estate appraisals?  The one that’s supposed to protect borrowers and lenders from faulty appraisals?  Yea that one.  Well, needless to say, it’s caused a whole lot of choas in the real estate industry.

“Mortgage brokers, appraisers and real-estate agents are up in arms over the new rules, which dictate how lenders select an appraiser when they originate certain home loans,” said Marcie Gaffner of BankRate.com.  ”Few borrowers care much, if at all, about how appraisers are hired or paid, but those borrowers whose loans have been delayed or derailed due to the new rules may take a very keen interest, indeed.”

“The code was originally put in place to ensure that home valuations would be “‘less inappropriately influenced.’” says David Feldman, president of First American eAppraise.  The problem now comes in the form of accuracy, timeliness, and cost, and whether or not borrowers are actually being protected.

In terms of accuracy, the main concern is wether or not you are getting an accurate estimate of home value.  The rules of “the code” state that an appraiser can no longer be selected by the lender.  On the one hand, this makes sense seeing as in the past, there were sketchy activities going on between lender and appraiser.  On the other hand, now you’re getting appointed an appraiser who could completely screw up your finances with a lackadaisical approach to the estimate.

Also, in terms of timeliness, you never know how long it’s going to take to be appointed an appraiser.  In the past, lenders kept one pretty much on hand.  Now, turnaround time could take weeks, something that can be extremely annoying to homebuyers with a specific purchase timeline.  Also, the cost has increased with demand, and oftentimes borrowers are asked to pay out of pocket and up front, something that used to be covered within the terms of the loan.

The best thing potential buyers/borrowers can do right now is research the market and be realistic about what you can get.  If you do your homework, understand comparable prices, but also appreciate the fact that we’re in a slow economy, things should turn out all right.  Also, having a real estate professional to help guide you through the process couldn’t hurt either.

Looking for a home doesn’t have to be chaotic.  That’s why we’re here…

At Upper End Properties, we’re very excited about the new year and the new opportunities 2010 will bring.  With the recent tax credit extension thats been put in place, many individuals will be looking to buy or sell new and used properties before the extension ends in April.  We’ve decided to compile a list of house hunting tips for those looking to enter into the market in 2010.  Wether you’re a first-time home buyer or a couple who knows the ins and outs of real estate, these 7 tips should make things a little bit easier on you come January.

1. “I Want a Foreclosure”

Beware, you likely really just want a good deal.  Ask your Realtor the best way to get an incredible bargain, but within a reasonable timeline.  Many foreclosure properties can take up to 6 months to purchase.

2. “Let’s Think About It For a While”

We actually recommend that you take control of the property by writing an offer and getting it accepted, then take your time to “look under the hood” and renegotiate if necessary.

3. “I’ll Just Use Craiglist”

The Internet is an amazing sales tool, especially when it comes to real estate.  Oftentimes buying, selling, leasing, or renting is a lot harder than it seems, especially in tough economic times.  We recommend using a real estate professional to help guide you through the process.  It might cost you a bit of a commission, but the help you receive will be well worth the costs.

4. Location, Location, Location.

How many times have you heard this one?  Yeah, it’s that important!  Research the different locations you’re interested in buying before you start your search.  With the thousands of listings available, you have no way of finding something great if you don’t narrow your search.  For information on locations in the central corridor, we recommend checking out our page on relocations.

5. “Let’s Buy It…We’re Getting $8,000 Back.”

The government has extended the tax credit.  For many, the $8,000 they are proposing will be the sole reason for buying or selling in 2010.  We do recommend buyers being cautious however because there are certain forms, contracts, and statements that need to be filled out in order to receive the credit.  It’s not rocket science, but it is often helpful to have an agent there to hold your hand.

6. Keep Your Ear to the Ground

There are some exciting opportunities in the pipeline to kickstart the housing market even more, specifically in St. Louis.  While nothing has been passed yet, St. Louis officials are pushing for a $1,250 tax break in the near future.  We recommend you stay up to date on real estate news by frequenting websites such as STLtoday or CNN and following companies on Twitter for a constant stream of information.

7. “I Want a Brunette Realtor”

We highly discourage this.  Blonde realtors have more fun and get you a better price .

We hope that these 7 tips make things a bit easier on you in 2010.  We also have about 21 more that we’d love to share with you but it will cost you.  How much?  About 30 minutes of your time.  Our office is located at 7803 Clayton Rd.  We’ve got agents ready to talk every day of the week.  Happy New Year from all of us here at Upper End Properties.  We look forward to a wonderful 2010.