Real Estate Information

30yr fixed 4.25%

15yr fixed 3.75%

5/1 ARM   3.25%

FHA 30yr fixed 4.25%

FHA 15yr fixed 3.875%

FHA 5/1 ARM  3. 375%

 Below Average GDP Growth

Uncertainty about the pace of the economic recovery pushed mortgage rates down to another record low this week. The economic outlook is for slower than normal economic growth with low inflation, which is favorable for mortgage rates. The risks of a "double dip" recession and deflation also increase demand for relatively safer investments such as mortgage-backed securities (MBS).The consensus economic outlook is for slower than average economic growth for several years. The Gross Domestic Product (GDP) report released this week was consistent with this view. GDP increased at a 2.4% annual rate during the second quarter of 2010, which was below the long-term average of about 3.0% per year. With a high Unemployment Rate, below normal economic growth is far from ideal for the labor market, but this is what investors expect. If the economy performs much more poorly, however, the consequences could be severe. The Fed's Bullard stated this week that he is worried about the risk of a deflationary period in the US similar to that of Japan, which would be very undesirable for the economy, but which would likely lead to lower mortgage rates. He emphasized that he thinks that the most likely scenario is for continued modest economic growth.The best steps to take to stimulate the economy are being highly debated right now. It's not clear whether further monetary stimulus from the Fed would be effective enough to offset the downside effects. As a result, most Fed officials feel that they should not take additional actions unless the economy experiences a major downturn. Given enormous budget deficits, fiscal stimulus (more government spending) is also a highly contested option. The Fed's Fisher pointed to uncertainty about government policies and regulations as a major obstacle for faster growth, but this may not change very quickly. In any case, if the economy follows the expected path for modest economic growth, it may be difficult for the Fed or the government to launch any major new stimulus actions.


Also Notable:June New Home Sales rose 24% from a record low level in MayConsumer Confidence fell to the lowest level since FebruaryThe Fed's Beige Book painted a picture of slow economic growth in most regionsThe Obama administration will provide a "comprehensive housing finance reform proposal" by Jan. 2011


* All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.
Brandon RoyNMLS #119434

Residential Lending Fairway Independent Mortgage Corporation

Cell: 206-229-3944

Fax: 425-943-7725

Email: broy@remedygroupmortgage.com

http://www.fairwayindependentmc.com/

Remember that lower rates give you more buying power, making it an ideal time for anyone sitting on the fence to move forward with that purchase. For example, with a payment of $2,000 P&I a buyer could borrow the following, based on different rates:

Rate Loan amount

4.5% $395,000

5.0% $372,000

5.5% $351,000

6.0% $333,000

6.5%   $316,000

As you can see, a small difference can make a huge impact on the affordability of a new home!  Contact Troy for today’s interest rate.

Economic growth has slowed considerably over the last two months.  Is this the sign of a second “double dip” recession or just a temporary period of slower growth?  

Most of the data still indicates a growing economy, rather than a shrinking one.  Both of the previous two recoveries had periods of very slow real GDP growth in their first couple of years.  This suggests that the recovery that began in July 2009 will be a “jobless recovery” with modest job growth, slow declines in unemployment rates, and periods of weak real GDP growth, rather than a double dip recession.

We saw a sharp, but expected, decline in home sales following the expiration of the tax credit at the end of April. Pending home sales in King County were down 45.3% from April to May 2010.  However, modest job improvement, record low mortgage rates, and improving demographics suggest that home sales should rebound in the second half of the year.

Barring any unforeseen shocks to the economy, home sales should increase at a faster pace in 2011.

Despite the sharp decline in pending sales, due to the expiration of the tax credit, the number of homes sold remained surprisingly steady month to month since March.  Year to year, the number of homes sold is up 1% from June 2009.  For a detailed report of recent sales and inventory levels in your neighborhood, contact Troy.

30yr fixed 4.25%

15yr fixed 3.75%

5/1 ARM   3.25%

FHA 30yr fixed 4.25%

FHA 15yr fixed 3.875%

FHA 5/1 ARM  3. 375%



"Unusually Uncertain"

Mortgage rates moved even lower during the week, as uncertainty about the pace of the economic recovery has increased investor demand for relatively safer assets such as government guaranteed mortgage-backed securities (MBS). The Fed Chairman acknowledged during the week that the economic outlook is even more difficult than usual to predict right now. Uncertain economic growth with low inflation is a favorable environment for mortgage rates.In his semi-annual testimony to Congress, Fed Chief Bernanke described the economic outlook as "unusually uncertain". According to Bernanke, this is the worst labor market since the Great Depression, and it is recovering more slowly than expected. Still, the Fed forecasts modest economic growth in 2010 with low inflation. Important for mortgage rates, Bernanke expressed reluctance to provide further monetary stimulus, unless the economy falters badly. He suggested that the upside of additional Fed actions may be limited, while the downside is that it would raise future inflation expectations.In the housing sector, June Existing Home Sales declined 5% from strong May levels to an annual rate of 5.37M units, which was well above the consensus forecast of 5.10M. Existing sales were 10% higher than one year ago. First-time buyers accounted for 43% of existing home sales in June. Existing home sales have been helped in recent months by the homebuyer tax credit. Even with the end of the tax credit, though, the National Association of Realtors (NAR) expects annual existing home sales to increase in 2010 and to rise further in 2011.
Brandon RoyNMLS #119434Residential LendingFairway Independent Mortgage CorporationCell: 206-229-3944Fax: 425-943-7725Email: broy@remedygroupmortgage.comhttp://www.fairwayindependentmc.com/

Rates Remain Low

With very little economic news during the short holiday week, mortgage rates remained at the lowest levels in decades. While mortgage rates ended the week slightly lower, the level of volatility in mortgage markets and other financial markets was relatively high. Even without major news, sudden movements in rates were common during the week. The stock market displayed similar price swings, as the Dow recovered the roughly 400 points it lost the prior week. This volatility in financial markets reflects the high level of investor uncertainty about the pace of global economic growth.The current low mortgage rates can be attributed to a couple of factors. One is that inflation is under control and is expected to remain low for quite a while. Another is that demand for mortgage-backed securities (MBS) is high. When packaged and sold as government guaranteed MBS, mortgages are viewed as safe investments, much like US Treasury securities, and safety has been important to investors in these uncertain times. With financial regulatory reform behind them, Congress is now beginning to consider the appropriate role for the government in the housing market. Central issues include government guarantees for mortgages and the future of Fannie Mae and Freddie Mac. The debate is expected to be long and difficult, with no easy answers.


Also Notable:Weekly Jobless Claims dropped to the lowest level in two monthsAs expected, the European Central Bank (ECB) made no change in ratesThe Treasury will auction $69 billion in 3-yr, 10-yr, and 30-yr securities next weekThe Fed's Fisher suggested that the main economic challenge is building confidence






Average 30 yr fixed rate:Last week:-0.05%
This week:-0.02%
Stocks (weekly):Dow:10,100+400NASDAQ:2,175+75
  Week AheadThe most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Thursday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Friday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, The Retail Sales report will be released on Wednesday. Retail Sales account for about 70% of economic activity. The detailed FOMC Minutes from the June 23 Fed meeting will also come out on Wednesday. Industrial Production, an important indicator of economic growth, is scheduled for Thursday. Empire State, Import Prices, Leading Indicators, the Trade Balance, Consumer Confidence, and Philly Fed will round out the week. There will be Treasury auctions on Monday, Tuesday, and Wednesday.

Rates Remain Low

With very little economic news during the short holiday week, mortgage rates remained at the lowest levels in decades. While mortgage rates ended the week slightly lower, the level of volatility in mortgage markets and other financial markets was relatively high. Even without major news, sudden movements in rates were common during the week. The stock market displayed similar price swings, as the Dow recovered the roughly 400 points it lost the prior week. This volatility in financial markets reflects the high level of investor uncertainty about the pace of global economic growth.The current low mortgage rates can be attributed to a couple of factors. One is that inflation is under control and is expected to remain low for quite a while. Another is that demand for mortgage-backed securities (MBS) is high. When packaged and sold as government guaranteed MBS, mortgages are viewed as safe investments, much like US Treasury securities, and safety has been important to investors in these uncertain times. With financial regulatory reform behind them, Congress is now beginning to consider the appropriate role for the government in the housing market. Central issues include government guarantees for mortgages and the future of Fannie Mae and Freddie Mac. The debate is expected to be long and difficult, with no easy answers.


Also Notable:Weekly Jobless Claims dropped to the lowest level in two monthsAs expected, the European Central Bank (ECB) made no change in ratesThe Treasury will auction $69 billion in 3-yr, 10-yr, and 30-yr securities next weekThe Fed's Fisher suggested that the main economic challenge is building confidence






Average 30 yr fixed rate:Last week:-0.05%
This week:-0.02%
Stocks (weekly):Dow:10,100+400NASDAQ:2,175+75
  Week AheadThe most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Thursday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Friday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, The Retail Sales report will be released on Wednesday. Retail Sales account for about 70% of economic activity. The detailed FOMC Minutes from the June 23 Fed meeting will also come out on Wednesday. Industrial Production, an important indicator of economic growth, is scheduled for Thursday. Empire State, Import Prices, Leading Indicators, the Trade Balance, Consumer Confidence, and Philly Fed will round out the week. There will be Treasury auctions on Monday, Tuesday, and Wednesday.

Bank of America continues to puff on the hookah pipe when it comes to being in reality about their pending foreclosures. i.e short sale. Here is the latest response from them on a total fixer property that I have had under contract now 4 times! Its a great property, but needs work so not just any buyer can come along and buy or finance it. The buyer needs to have a substantial down payment or qualify for an FHA 203k rehab loan. This of course narrows the qualified buyers thus typically makes the property worth less and harder to sell. The latest buyer put a good reasonable offer in. Not a "low-ball" offer in today's market. Enjoy the response below, thus far they (Bank of America) are the only one's willing to pay this much for the home...

Bank of America and the investor are countering this offer:

·                    They want the sales price increased by $20,000 

·                    The buyers closing costs will only be approved at 3% of purchase price

·                    They are requesting the seller bring in $5,000 at closing and or sign a promissory note for    $13,000

·                    They will not cover any utility payments at closing

·                    They will not pay the short sale negotiation fee

This is why you need a good team on your side to navigate through the world of Short Sales. Contact the Troy Anderson Team if your facing a foreclosure or have short sale questions. 206-588-8409

Where to watch fireworks on Sunday:

Bainbridge Island: dusk, over Eagle Harbor

Bellevue: 10:05 p.m., Bellevue Downtown Park, 10201 N.E. Fourth St.

Carnation: dusk, Tolt-MacDonald Park; parking $5

Des Moines: dusk, Des Moines Marina, 22307 Dock St.

Edmonds: 10 p.m., Civic Stadium, Sixth Avenue and Bell Street

Enumclaw: 9:30 p.m., Enumclaw Expo Center, 45224 284th Ave. S.E.

Everett: 10 p.m., Legion Park, 145 Alverson Blvd.; free bus from Everett Community College Broadway lot and Everett Station

Federal Way: 10:15 p.m., Celebration Park, 1095 S. 324th St.; free on-site parking opens 5:30 p.m.

Kenmore: 10 p.m., Log Boom Park, Northeast 175th Street and 61st Avenue Northeast; additional parking available: Kenmore Lake Building, 6161 N.E. 175th St.; Bethany Bible Church, 6214 N.E. Bothell Way; and Uplake Professional Center, 5723 N.E. Bothell Way

Kent: 10 p.m., Lake Meridian Park, 14800 S.E. 272nd St.; free parking/shuttle bus every 20 minutes, Kentwood High School, 25800 164th Ave. S.E., and Kent Fire Station No. 75, 15635 S.E. 272nd St.

Kingston, Kitsap County: dusk, Mike Wallace Park

Kirkland: 10 p.m., Marina Park, 25 Lake Shore Plaza

Newcastle: 10 p.m., Lake Boren Park, Southeast 84th Avenue and Coal Creek Parkway Southeast; parking and free shuttle from Newcastle Elementary School

Orting, Pierce County: dusk, Lions Field

Puyallup: 9 p.m., Puyallup Fair and Events Center, 110 Ninth Ave. S.W.

Renton: 10 p.m., Gene Coulon Memorial Beach Park, 1201 Lake Washington Blvd.

Sammamish: 10:15 p.m., Sammamish Commons Park, 801 228th Ave. S.E.

Seattle: 10 p.m., Lake Union

Tacoma: 10:10 p.m., Waterfront Park, Ruston Way

Tukwila: dusk, Fort Dent Park, 6800 Fort Dent Way

Vashon Island: dusk, Quartermaster Harbor

This Fourth of July, the Cities of Bothell, Kenmore and Woodinville are teaming up for the fourth year in a row to provide events throughout the day for various ways to celebrate the holiday. All events are free unless otherwise noted.

 
City of Bothell Freedom Festival 
www.ci.Bothell.wa.us  or 425.486.7430

Bothell Road Closure Information

Notes for Bothell events:
Limited disabled parking will be available at Bothell City Hall (18305 101st Ave. NE, Bothell); first come, first serve. 
Lost persons during the event should contact a blue-vested City volunteer to proceed to the designated Lost Persons Area.
PLEASE NOTE: DUE TO CONSTRUCTION AND LIMITED PARKING, THERE WILL BE NO COMMUNITY DANCE OR RE-ENACTMENT OF THE BATTLE OF CONCORD THIS YEAR.

Sunday, July 4
City of Bothell Fire and E.M.S. Pancake Breakfast  9:30 to 11:30 a.m.
Downtown Firehouse (10726 Beardslee Blvd.)

Children's Parade 12:15 p.m.
Line-up at 104th Avenue NE & Main Street.  Parade route proceeds west on Main Street and then north on Bothell-Everett Highway to NE 188th Street.  Children must be accompanied by an adult throughout the parade route. No supervision is provided.

Grand Parade 1 p.m.  PARADE APPLICATION
This year's theme is "Under Construction."  Parade route proceeds west on Main Street and then north on Bothell-Everett Highway to NE 188th Street. Event sponsors are Pacific Medical Center, University of Washington Bothell and Bothell Pediatric and Hand Clinic.
NOTE FOR NON-REGISTERED Bothell GRAND PARADE PARTICIPANTS: You must arrive at UW Bothell/Cascadia no later than 11 a.m. to register and participate.  


City of Woodinville
www.ci.woodinville.wa.us  or City Event Line 425.984.2346

Notes for Woodinville event:
Public parking is available across the street from the Wilmot Gateway Park adjacent to the new baseball fields.
Free children’s crafts, contests (including most patriotic costume) and limited food choices from non-profit vendors will be all be part of the fun.
Spectators are encouraged to bring a blanket or chair. 

Sunday, July 4
Red, White and BLUESFEST at Wilmot Gateway Park, 17301 131st Ave. NE, Woodinville
(bands and performance times listed below)

Come join us at Wilmot Gateway Park to enjoy our 4th annual Bluesfest event which this year will feature an array of Salsa, Blues, and Jazz music. Bring a picnic and enjoy our beautiful park by the river. All events are free! The event is sponsored by Pacific Medical Centers.

SALSA- Orchestra Zarabanda : 3:30-4:40 p.m. 
BLUES- Becki Sue and Her Big Rockin’ Daddies:  5:00-6:30 p.m.
JAZZ- The Tempos: 6:50-8:00 p.m.

 
City of Kenmore
www.cityofkenmore.com/events  or 425.398.8900

Notes for Kenmore event:
Spectators are encouraged to bring a blanket or chair.
Parking available at Log Boom Park (NE 175th St & 61st Ave NE), Kenmore Lake Building (6161 NE 175th St), Bethany Bible Church (6214 NE Bothell Way), and Uplake Professional Center (5723 NE Bothell Way).
Limited disabled parking will be available at Log Boom Park (NE 175th St and 61st Ave. NE); first come, first serve.

Fourth of July Fireworks 10 p.m.
Log Boom Park, NE 175th Street and 61st Avenue NE
A fireworks spectacular display over Lake Washington. The event is sponsored by Pacific Medical Centers.


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