THE ULTIMATE FIRST TIME BUYING GUIDES/MORTGAGE WIZARD'S CORNER

Back in the Saddle at Active Rain!!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Fri, 26 Dec 2008 08:04:33 -0800

I took off many months from Blogging and Predicting where the market would go because so many unpredictable events were happening on Wall Street and Main Street.... With so many new precedents being set, and rules being made up through Congress and The Treasury Dept I thought it would make more sense to watch what happening and learn from it, than to actually try to figure out why it all happened!!

I am still loving my job as a realtor and had 2 nice closings for $660,000 last week for my 1st settlements with my new company... Keller Williams Real Estate in Blue Bell. NICE!!!

Both clients got great houses, in great locations, and at GREAT PRICES!!! I enjoyed every minute that I spent helping my clients buy their 1st house!! One client looked at about 40 or 50 houses.... One client looked at about 6 or 8 houses... Both clients had the exact same experience while traveling vastly different roads to the Settlement Table. AWESOME!!

Interest rates are pretty much at an ALL TIME LOW!! I am doing a lot of ZERO FEE refinances for past clients, new customers, and friends and family!! Rates right now are hovering in the high 4's and low 5's depending on what day it is...

I am looking forward to a GREAT 2009 and hope that all of you are as well!!!

HAPPY NEW YEAR TO ALL ACTIVE RAINERS!!!! CARPE DIEM IN 2009

FREE GOLF LESSONS FOR ACTIVE RAINERS!!! READ MORE AND FIX YOUR SLICE!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Thu, 20 Mar 2008 06:30:48 -0700

So.... As much as I enjoy writing about the Markets, and interest rates, and mortgages and real estate...

I play to a scratch handicap, and successfully competed in last years REMAX LONG DRIVE CHAMPIONSHIP. My longest drive was about 385 yards with most of them being well in excess of 325 yards!! I love golf and love to share my expertise with my friends, family, and clients!!

I also like to write about golf. I have written a lot of golf columns over the years. So many people enjoy this game even while it frustrates them to the core sometimes. I teach golf to a good amount of students every golf season. Obviously one of the biggest requests that I get from my students is to fix their slice. This is easier said than done, yet I have never had a student that had a slice that I couldn't fix.

My students always ask me, "Why does my golf ball slice so much" There are only a couple of reasons why and how a ball can curve during its flight after contact with your golf club.

WELL.... there are more reasons than that, but who wants to talk about Shanks and Hosel Rockets and other unmentionable golf shots that tend to go more Right than Left.... I just want to talk about shots that originate off the club face not the heel, toe, hosel, or the always entertaining... The Shaft Breaker.... These are rare... but Entertaining!!

The golf ball begins... At Rest.

Said golf ball is affected by a nicely shaped steel or titanium mass moving at about 100 miles an hour attached to a shiny steel shaft, a grip, and a golfer. Depending on the golfer there are countless outcomes....... Just a lot of things in life... It's all in the delivery!!! Get to the ball down the right swing path and with the clubface in the right attitude for your golf swing and get ready to watch in AWE as your golf ball goes directly towards your intended target like an arrow.

Here are 2 main reasons for Slicing or Hitting it Left to Right.... (For us Southpaw's it's Right to Left.....)

1. Open club face at impact as opposed to having and keeping your clubface square through the hitting area

2. An outside to inside swing path with the golf club. This means you slap at it, instead of hitting from a more solid and consistent striking angle.. This is easy to fix in a one on one lesson!!

What are the fixes?? In this BLOG I will deal with helping you establish a fundamentally sound golf grip which will help to eliminate Reason 1 for slicing... I will deal with Reason 2 in my next Blog.... Both of these are much easier to explain in person, but here goes!!!

Let's start with some fundamentals!! How is your grip on the golf club... Do you have a weak or strong grip... A weak grip is a grip where your dominant hand ( Right hand for RH golfers/Left hand for LH golfers) assumes a position that is more on top of the club instead of more underneath the club. This makes it difficult for you "roll" your hands over and get the clubface closed before you get to the hitting zone.

A strong grip is just the opposite... A strong grip will let the dominant hand slip underneath and around the bottom of the grip so as to give more control to the dominant hand. This type of grip is usually best achieved by using a 10 finger baseball style grip.... This grip allows the clubface to close quite easily, and usually is the cause of a wicked hook... or a running draw.... A good shot trajectory when you know how to pull this type of shot off when you need it.

A good golf grip is a grip that allows you to generate maximum energy while maintaining a neutral relationship between both of your hands on the grip of the club so that you can deliver the clubface squarely..... Not open or closed.... This 50/50 relationship allows golfers to swing harder and hit the ball farther because you have already insured the fact that your clubface is not being dominated by one of your hands.

To find this neutral position on the grip with your hands there are a couple of tricks that I can tell you about before you put your hands on the club to hit the ball. First of all. Put your hands together in front of your chest with your chin up. Match your fingers and palms perfectly up with one another like you are praying!! YES... A little prayer goes a long way in golf!!

This is the perfect neutral position for the hands to be on the club. The challenge here is that one of your hands needs to be the top hand on the grip and one of your hands needs to be the bottom hand. Dominant hand goes on the bottom unless you play cross handed.... Which is a whole 'nother lesson.

Take your perfectly matched up hands and if you are right handed slide your left hand up a little bit, and your right hand down a little bit until the fat pads on your thumbs are no longer matching up anymore. The fingers on your left hand should be about an inch longer now because of this slide up move.

Notice how your hands fit together this way.... This is a neutral position in which you can now put your hand on the club in the right way. Grab a wedge or 9 iron and get your hands on the grip now.

Put the head of the iron on the ground and have the shaft and the grip leaning on your belt buckle. Always put your weak hand on the club first.... SO... Grip the club with your left hand getting more of the grip in your fingers than in your palm. The most important element of this part of the grip is that the back of your left hand should mirror the face angle of the clubhead. This means that when you swing the club to hit the ball that if the back of your left hand is square through impact/the hitting zone that your clubface will also be square through hitting zone. Have fun with this new knowledge... With only one hand on the club(your weak hand) turn the club right and left and watch how the clubface now mimics every motion that your hand makes....

Now it's time to put your strong hand on the grip as well.... Your hands when they are on the club should fit tightly together with little or no grip showing to the outside world. With both hands on the grip if you would life the club in front of you so that the iron is now over your head but directly in front of you and perpendicular to the ground.... Your playing partner shouldn't be able to see the dark grip between your fingers.

Because your dominant hand is the hand on the top of the weak hand and on the bottom of the club it's important to find a place to either overlap or interlock the pinky finger on your dominant hand with the index finger on your weak hand. Golfers with big hands usually overlap... smaller hands it makes sense to interlock your pinky finger with the index and middle finger on your weak hand. This is called the Vardon Grip for golf historians out there....

After getting your hands comfortable with this new grip...... get the club with your hands gripping directly in front of you vertically so that the shaft and the club head are right in front of your face and above your head... Perfectly vertical to the ground..... You will know when it is perfectly vertical because the club and shaft will be such perfect balance that you could stay here all day and the club would still be quite light....

This weightless position is what the golf swing is all about.... Let the club "fall" slightly to the right or left... Feel how heavy the club is.... Get it back to vertical again and feel how light the club becomes.... This weightlessness is why some golfers are able to hit the ball so FAR with such little effort... Truly a good golfswing... at least above the waist is all about getting to this weightless position and then making a complete turn to put the club in a great position at the top of the swing.... Try it.

Get the club in front of you... With your new grip.... Make it weightless... (VERTICAL)

NOW.... Pick your target..... and turn your shoulders to take the club back... Remember the club should start out right in front of your chest and face and vertical.... Turn your shoulders and extend the club a little bit and you will find that you are close to where you are when you are at the top of your golfswing.... Get the club back where you think it should be at the top of the swing.... Do not take your hands above your chin!! Unless you are John Daly or you used to moonlight at Cirque Du Soleil you need to keep your hands below your chin during most golf swings!!

Make sure to keep your left arm straight across your chest.... Keep your head looking towards where the ball would be.... You should feel some tension in the back and outside of your right shoulder.... This tension is part of why you can hit the ball so far.... Your straight left arm doesn't want to stay straight.... or across your chest for any long period of time. This is one of the biggest catalysts in building power for the golf swing... resistance... your arm WANTS to come back down into its normal territory.... Don't let it..... Until you are ready for it in the downswing.... This is a HUGE part of generating leverage and torque in one's golf swing.

This new position.... A weightless position at the beginning, middle, and end of the golf swing is one of the most misunderstood parts of the game.

LET ME KNOW IF YOU ARE A LOCAL ACTIVE RAINER TO ME, AND YOU WANT A GOLF LESSON!!!!

I TEACH BOTH MEN AND WOMEN SO DON'T BE SHY LADIES!!!

GOLF IS AND CAN BE A GREAT TOOL FOR YOUR REAL ESTATE AND MORTGAGE BUSINES!!!

Is Bear Stearns Debacle really the bottom of the Market?? I don't think so.....

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Wed, 19 Mar 2008 07:51:55 -0700

Without a doubt everyone wishes that Bear Stearns was still in business!! It was an institution on Wall Street that no one wanted to see explode. It seems though that as a company that Bear Stearns made some bets with some excessive risk that boomeranged right back at them and punched them where it hurts the most on Wall Street. The bottom line. When the bookie came to get the $... The Gig was up!! I wish Bear Stearns had made different bets!!

Without Bear Stearns on Wall Street what is actual impact on the economy?? Probably not that much. It weakens confidence a bit, but for the most part it doesn't really affect what is a HUGE multi zillion dollar juggernaut that is our economy. It is definitely one of the heavier and most recent straws on the camels back, but this camel(US economy) is stronger than your average camel!! Resiliency is one its strongest traits. Our best years are still to come!!

On March 19th, 2008, there are just as many pressures on the global economy as there was before the Bear Stearns Debacle began to unfurl late last week. The world keeps revolving. Oil is still $110 a barrel, 63,000 Americans still lost their jobs in February, 85,000 Americans have lost a job this year, Gas is almost $4 a gallon in some locales, the average consumer has seen their 401K and their equity in their house shrink in the past 6 months, and it seems anything that is anything at the grocery store is still increasing in cost. With all of these factors and scores of other material factors that would spin the average readers head, it reasons that we are not out of the Woods just yet. The 420 pt stock market gain was nice yesterday though!! The US economy can see where the forest ends, but there could be a couple of obstacles, painful as they might be as the US economy attempts to break free of the shadows of Recession.

The End of tough days on Wall Street sadly are not here yet. But don't lose heart, with the Fed's aggressive actions the light at the end of the tunnel is not the R5 train to Strafford Station.... it's more jobs, and more corporate profits, and better wages for more employees. The Fed has employed unique ways and new avenues to provide liquidity to a thirsty banking industry that craves liquidity. According to my calculations the economy should right itself by the 3rd or 4th quarter this year. We might even see some early signs of recovery in some sectors by June. Housing prices will continue to fall slightly for the rest of this year. This will be mostly because of the prevalence of foreclosures entering the real estate inventory later this year and being sold for less than typical market value because of condition and corporate policy.

If you are looking to lock in an interest rate.... Monday was the day. Today rates will be a bit higher, but with the volatility at record levels anything could happen in the interest rate market today. You can still lock into today to a great rate, but it will probably be about an eighth in rate higher than Monday's rate.

We are still at the very bottom of the market as far as mortgages go. Lock and load if you have settlement dates coming in the next 30 days!!! If not... RIDE IT OUT, and we'll see where rates go from here!!!

What's more important.... Wall Street or Main Street....????

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Tue, 18 Mar 2008 06:34:44 -0700

With the actions of The Federal Reserve and JP MORGAN CHASE over the weekend in regard to the Bear Stearns bailout.... it leaves many to think about what's really important to The Federal Reserve and the Government. Is the Fed more concerned with what happens on Wall Street or what happens on Main Street. Without a doubt, it's tough to see how one doesn't affect the other in a lot of ways.

If consumers on Main Street stop spending money in their local stores.... Eventually Wall Street will feel the pinch. If Wall Street and its constituents fall flat on their face it's evident that somewhere somehow it will affect consumers as well. Consumer confidence is critical for our economy to run well. Without confident consumers retailers are the first to feel the pinch...

In the end, the coming days, weeks, and months, it will become increasingly more important that The Federal Reserve and it's policy makers in the government keep an eye on both Wall Street and Main Street. America is made of lot of little guys that make our economy run...... If the little guy has a problem in our economy... The Big Guys in our economy feel the pinch.

There are some major economic data that is announced today including new home starts and the Fed's decision to be announced at 2:15 or so that will determine how much of a rate cut the markets and the banking industry will get. My guess... After a .25 pt at the Discount Window on Sunday night..... A .75 pt cut in the Fed Funds Rate is a definite. The Fed also might decide to wrap up its cutting behavior and include an extra .25 pt to make a total Fed Funds rate cut of an entire point.

What are some of the opinions of other Activer Rainers out there?? How much does The Fed cut today??

Send me replies by 1 pm and I will tally the responses!!

To Say That It's a Bear Market Is An Understatement!!! Bear Stearns Goes Out of Biz!!! Rates and stocks plummet...

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Mon, 17 Mar 2008 07:22:34 -0700

I wrote about this late last week, and never thought that it would come to this. BEAR STEARNS IS OUT OF BUSINESS!! JP Morgan Chase has agreed... at the Federal Reserve's urging to buy Bear Stearns for $2 a share.... This amounts to $240 million dollars or so.

To put this in perspective Bear Stearns stock price was in the Mid $150's about a year and a half ago...

At the start of last week it was worth more than $59 bucks a share... and at the close of Fridays stock market.. It was in the low $30's. Beaten and bloodied no one thought that Bear had really run out of money to the extent that their company's stock was in effect... WORTHLESS... OK OK.. $2 a share is still a couple of bucks... (Their building is worth $10 bucks a share) But in an effort to avoid knocking over important economic dominoes, the Fed and JP Morgan came up with a plan to keep as many dominoes standing for as long as possible.

Europe and Asia stock markets were down considerably between 3 and 5% for the most part. US stock futures are down sharply as well. The only positive that comes out of this type of situation is that interest rates do move lower... Maybe an eighth or so on most mortgage products!! 5.875% on 30 years and 5.5% on 15 years....

RATES ARE LOWER... but who knows for how long. Will it be days or weeks?? Surely by the Fall interest rates will not be this attractive!!! At this end of the bond spectrum, there is not far to go until we effectively hit THE GROUND FLOOR.......

What is THE GROUND FLOOR?? In today's mortgage market this probably equates to around 5% and 0 pts on 15 year fixed rates, and closer to 5.5% on the 30 year fixed rates... The 2 year US Treasury is now at 1.30%, with the 10 year US Treasury hovering around the 3.35% mark. We closed at 3.47% on Friday after a positive gain in last weeks market!! If you have clients that haven't locked in.... Call them and make sure that they know that rates are down BIG since Wednesday of last week.....

What happened to the market that gave us over 400 points earlier last week..... IT... IS GONE...

At least for the foreseeable future..... With as much uncertainty in the global economy and inflation and deflation in real estate prices..... The American consumer for the most part is stuck with both hands in their pockets when it comes time to make new purchases.

The old saying comes to mind... "When America catches a cold... The whole world sneezes..." I'd hate to have the update the saying to include... "When America catches pneumonia, the whole world catches a cold..."

As always... Email me to get a FREE COPY of MY ULTIMATE FIRST TIME BUYING GUIDES!!!

Truly a "BEAR" Market today.... What has the economic world come to...!!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Fri, 14 Mar 2008 12:23:04 -0700

What are the chances that we would wake up today to hear that the Federal Reserve and JP Morgan Chase Bank needed to loan money to Bear Stearns to help them stay afloat.... I thought Bear Stearns had DEEP DEEP POCKETS.. I guess not that deep... HOLY COW!!!

On Wednesday, the CEO of Bear Stearns was on the early morning show Squawk Box on CNBC... The hosts asked pointed questions and repeatedly the CEO answered that they had a strong balance sheet, and that they were in good shape financially... 48 hours later Bear Stearns was using the emergency lifeline to call the Fed and set up company saving loan for billions....

After the announcement this morning, Jim Cramer also of CNBC said that it was possible that things in a business like Bear Stearns could change in a matter of hours or days, and that the CEO could have been telling the truth at the time of the interview...

This news of the Prop Up of Bear Stearns by the Fed and JP Morgan Chase caused stocks to lose favor quite rapidly... Down 300 pts at one point the stock market clawed back to only down 100 pts before George Bush spoke at the Economic Club of America....

At some point in his speech he noted that he was... " An optimistic type of fella" .... which made me think of the campaign slogan of Herbert Hoover in 1928.. "A chicken for every pot"...

The last time that I checked, the economy didn't get points or a boost from motivational speeches from politicians that are completely out of touch with the reality of the current situation. Clearly if Ben Bernanke and his team of Fed Governors don't know what is coming down the pike at us in economic terms.... How in the world can George Bush be so blindly optimistic.....

THE GOOD NEWS IS>>>>>>>>>>>>>>>> INTEREST RATES ARE HEADED DOWN!!!!

LET'S SELL SOME HOUSES!!!

Overseas Markets Plunge on the News that Carlyle Capital is going out of business!! Interest Rates Move Down Swiftly!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Thu, 13 Mar 2008 06:53:18 -0700

Overnight and after hours Carlyle Capital announced that they would be turning over the remaining assets of the company to its lenders. Who is Carlyle Capital you might ask... A HUGE multi national holding company that operates and owns some of the most prominent names in the business. Like Dunkin Brands and the Nielsen Ratings..... This is bad news for the economy... and for coffee drinkers everywhere.... let alone all of the TV watchers out there in TV land....

Just Kidding... I can't imagine Carlyle's lenders getting into the coffee and doughnut biz or TV rating business anytime soon..... A big and supposedly solid company like Carlyle failing really highlights that we still don't know just how big the iceberg is...

Asia and Europe are down BIG... 1.5 to 3% overnight... Interest Rates are plummeting!!

30 Year Fixed Rates will be back under 6% with 0 pts.

15 Year Fixed Rates will be close to 5.5% with 0 pts.

If you can't get rates like these for your clients in PA, DE, MD, NJ, or VA don't hesitate to give me a call.

(215) 870-3060

And as always... My Ultimate First Time Buying Guide and My Ultimate First Time Settlement Table Guide are Free to good realtors. Email me today for your copies... ChrisCat2008@yahoo.com

FREE MONEY!!!! STRAIGHT FROM THE HORSES MOUTH!!! CHECK OUT WHEN AND WHY YOU WILL GET YOUR TAX REBATE CHECK FROM UNCLE SAM!!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Mon, 10 Mar 2008 07:07:35 -0700

This information came to me from one of my Best Sources!! Thanks JMH!! I wanted to share. I plan to send it to my entire past and current client database as a marketing piece. I think my clients will want to know exactly when they will get their check from Uncle Sam for either $600 to about several thousand dollars depending on how many children they have and why. Each child is worth $300 in rebate check.

Below is a schedule for the issuance of the Tax Relief Checks this summer.

The check is in the mail
Week	Last 2 digits of your SSN	Receive your check by week of
1	00 - 09	July 23
2	10 - 19	July 30
3	20 - 29	August 6
4	30 - 39	August 13
5	40 - 49	August 20
6	50 - 59	August 27
7	60 - 69	Sept. 3
8	70 - 79	Sept. 10
9	80 - 89	Sept. 17
10	90 - 99	Sept. 24
For married taxpayers who filed a joint return, the first Social Security Number on the return determines the mailing date. Source: Internal Revenue Service

If you made less than $75,000 in 2007, you get $600. A couple earning less than $150,000 gets $1,200 back, plus an additional $300 per child. If you made at least $3,000 but paid no taxes, you still get $300. But here's where it gets tricky. The rebate is technically an advance credit for your 2008 taxes, leading some to believe the extra money will come out of your refund for next year. It's a one-time stimulus to the economy, and it won't affect anything that anybody has for next year. The IRS gave Call 4 Action the same assurance. Plus, it said you can get another $300 next year on top of the rebate check if you have a child in 2008. And unlike years past, it won't make you pay taxes on that rebate money. But many of you who are elderly or low-income, living off Social Security or veterans benefits, could miss out altogether. To get the rebate check, you must file a tax form for 2007, even if youare not required to do so. Otherwise, you are passing up what is essentially free money.

I HOPE THIS INFORMATION CLEARS UP THE MURKY PICTURE OF WHEN ALL OF THIS STIMULUS WILL START TO

TRICKLE DOWN TO THE LITTLE GUYS!!!     Basically late summer.....

AFTER A GREAT WEEKEND>>>>>>        I wonder what this week could bring.   Good things I am sure!!!!

There has been talk this morning on Squawk Box about getting the Fed involved as a buyer of Mortgage Agency

Products.....   Mortgage Backed Securites...

THIS WOULD BE GREAT AND BRING SOME CERTAINTY TO AN UNCERTAIN SITUATION!!!!     THE CONVENTIONAL MORTGAGE MARKET.

All the smart people on TV these days seem to realize at least one thing.....     If the average American has to make their way on

what they have right now as a mortgage...     It could be a tough road.

A good percentage of America needs/wants to refinance into a lower FIXED interest rate and hunker down in the house that they like for the long haul..... or the short haul, whatever their

choice might be.      Without a good bit of these wanne be refinancers getting their refinances accomplished....... the average american consumer's purse strings will continue to be constrained

for months and years to come.    This means that whatever state the economy is in right now....   a pre Recession, or a Recession

depending on who you talk to...    this state would be extended, and that we might be in this type of situation for a while.

I VOTE FOR LOWER INTEREST RATES FOR THE REST OF 2008!!!!     NOW WHERE ARE THOSE SUPER DELEGATES AT WHEN I NEED THEM??

WHO'S WITH ME???

Inflation... Is just an UGLY WORD!!!!! Read More!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Sat, 08 Mar 2008 07:12:55 -0800

I don't think anybody has a good idea of what lies dead ahead of us when it comes to the economy. Not Ben Bernanke.... not anyone. Just when most realtors and mortgage professionals think interest rates should be moving down and helping out with the floundering real estate market.... They move up, and make things even more difficult!!

With Oil topping $105 for the first time in history it's tough to say that inflation isn't part of our everyday life.

People don't have to pay $5 a gallon of gas, or $10 for a sandwich and a drink to know that prices have moved up on almost everything except HD TV's..... As more consumers find more ways to spend less money on things like luxury items, and on big dinners out on the town because of high prices, and their shrinking home equity... The economy will continue to stay in the rut that it is in, and dig a deeper rut.

Inflation and Employment are two of the most powerful forces on the US economy. Not only are more people losing their job since March 2003, but the ones that do have paychecks are seeing their dollars by less and less everyday.

Even when it comes to home prices falling... A deinflationary contributor.... One realizes that unlike other items that are affected by inflation... Homeowners are likely to spend less of their hard earned bucks on everyday purchases simply because they are aware that there house is worth between $10,000 and $100,000 or more less than it was just a year ago. This instant awareness of the fact that the average homeowner's piggybank has cracked can be quite crippling and paralyzing when it comes to making new and large purchases. Most consumers will put off anything but the most necessary of purchases until things have settled down in their personal financial situation.

This loss of home equity is different than losing money in the stock market.... and it affects how people live their lives and spend their money. It makes people think that real estate is not a good investment... Even though we all know that a good piece of real estate is ALWAYS a good investment..... Especially if you are looking to buy and hold for more than 5 years!!

Mortgage Backed Securities Take A Punch To The Face!!!! OUCH!!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Fri, 07 Mar 2008 07:40:16 -0800

In case you just climbed out from beneath your rock.... Rates are skyrocketing in the mortgage market.

The mortgage market took a couple of punches off the snout yesterday. A good ONE TWO jab and upper cut which hurt new home purchasers about a quarter in interest rate.

A large bank, Thornburg has gotten themselves into HOT WATER. The ugly word margin call has entered Thornburg's picture it seems.

This weakness in what was a good bank has helped fuel a dramatic sell of mortgage rates of all terms. The reasoning is that if a bank like Thornburg can make a miscalculation like this to jeopardize their entire existence, are there other banks that have made the same mistake and just haven't paid the price for it yet. In December all the Big Financials on Wall Street bellied up to the bar and wrote down their asset values based on their losses in the subprime arena. They said that they were done with the writedowns associated with the Mortgage Meltdown, and now they are lining back up again to announce some additional writedowns... Clearly we are not at the Bottom of the Subprime Fallout stage yet.

It didn't help that on Wednesday the ISM Manufacturing Index popped up to 49 and change.. . (50 is treading water... Anything below 50 shows a manufacturing contraction, anything above 50 shows growth.) January had been 44 or so.... A big surprise to the Treasury market and the Mortgage backed securities.

Right now 30 year fixed rate mortgage are back in the 6.5% and 0 pts range. A HUGE difference from the Jan 22 and 23 low where 5.5% and 0 pts was very much in the mix. The mortgage rates have risen almost a whole point in just 6 weeks.

Somewhere somehow the real estate industry needs a break to get things back on track. LOW RATES can or could be that break.... More things need to happen, but with LOW RATES a recovery is not only possible, but probable. It's important to give people that want to refinance their high subprime or ARM mortgages a chance so that they do not lose their homes!!

Does anyone else wonder how interest rates could be at 6.5% when things like the real estate market and the economy are struggling so mightily?? LET ME KNOW WHAT YOU THINK!!!

NEW WAYS TO SELL A HOUSE.... WHAT ARE SOME OF THE MOST CREATIVE WAYS TO SELL A HOUSE THESE DAYS???

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Thu, 06 Mar 2008 07:21:26 -0800

I think that when you are a realtor and trying to sell a house that has been on the market for a while... That it's great time to think outside of the box and find new ways to get a buyer to write an acceptable offer. There are so many ways, and I want to hear new and creative ways by any interested parties!!

MONEY MERGE ACCOUNT

My good friend Jim Comly suggested in his blog the other day an interesting way to sell a house to a buyer that wants something more from the seller, yet they don't know what. Jim helps people pay off their mortgages early with the Money Merge Account. His suggestion.. Include a Money Merge Account with the sale of the house, and help the new owners to pay off their new 30 year fixed rate mortgage in 15 years thanks to the Money Merge Account. Good Suggestion Jim.. It's not for everyone, but it is for a lot of people. People that really want to pay off the house as soon as possible, and with the least amount of interest paid.

To some people the gift of the Money Merge Account may not be that interesting.... but to some it might be the tipping point to help them buy a great house... Your clients. Can you imagine having the seller of your soon to be home saying to you... If you want, we will give you a Money Merge Account that will help you save 15 years of mortgage payments. Hmmmmm 15 years time 12 payments... 180 payments saved... At $1,000 a month this will save them $180,000. Imagine how this works on a larger scale. The Money Merge Account requires that the borrower have or get a Line of Credit.

SELLER FINANCING

To those buyers that aren't interested in something like this, maybe some seller financing might float their boat. I have found that sellers, with equity to support being able to give a mortgage to their new buyer in some small or large way, can be a great way to help a buyer buy a house. In this day and age where a lot of lender are not lending to 100%, or even 95% and 90% in some cases.... CHASE.... 85% is just a slap in the face. Seller financing can be a great way to sell a house if a good buyer, and a credit worthy buyer needs a helping hand to put the keys in their hands.

If you have a seller that has a lot of equity, and doesn't need all of it to make their next move, including some seller financing with the deal can really sweeten things up!!

Truly there are so many ways to help get a listing off the market and in an acceptable Agreement of Sale.

Let me know some of the most creative ways that are out there??

Followup to Where does the Market go from here???

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Wed, 05 Mar 2008 08:47:21 -0800

The ADP private employment report was announced at 8 30 AM and was a bit disappointing. Even with the loss of 30,000 jobs, and some language that noted the businesses of all sizes were being affected by this job contraction... Rates barely budged. Productivity was up 2.1%, but the cost of this new productivity.. Labor cost were up 2.6% keeping the spectre of inflation in the Fed Viewfinder for the forseeable future.

The 10 year bond opened up this morning at 3.61% and after digesting its breakfast ( ADP report and productivity numbers) it yawned and moved down to 3.59%. The bigger news will come later in the week to reinforce the ADP report and the employment picture as a whole. I look for this number to be disappointing and for rates to go down over the next couple of weeks. The ISM number just came out surprisingly on the upside... Up goes the 10 year to 3.67%

Currently 30 year fixed rates are hovering around the upper 5's, and 15 year fixed rates are in the 5.375% range.

One would think that with rates at 5 something percent on both 15 and 30 year mortgages that houses would be flying off the shelves...... The Spring Market should give the real estate industry the needed shot in the arm that it craves. Look for more inventory to come on the market nationwide, but look for a good chunk to be sold as well. Make sure that you are of these realtors helping to right the ship!!

SELL SELL SELL LIST LIST LIST

CARPE DIEM

Where does the market go from here???

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Tue, 04 Mar 2008 07:11:26 -0800

It's been fun to see the guys on CNBC in the morning argue both sides of the argument so enthusiasticly. Actually there are so many sides of the argument to include when speaking about the US stock market and bond market. I have seen more than a couple of veins popping out of foreheads from the likes of Charlie Gasparino, Ron Insana, and Steve Leaseman. So many times in a market where it's difficult to see where we are going it is easy to argue multiple outcomes for the short and mid term.

We even got to see Ben Bernanke (THE BEARDED ONE) to sweat on Capitol Hill for a couple of days last week. To hear one of the Senators ask a question of Bernanke about who is in charge of monetary policy, and have him respond quite curtly that... " That's what we do at the Fed... Monetary policy" was priceless. He was far from having all the answers about where we go either up or down in the markets, and the economy.

My advice to realtors and mortgage pro's alike is to take advantage of what will be a GREAT SPRING MARKET, and get your clients into mortgage rates that start with 5... and into houses before rates creep back up into normal territory later in the year. Who knows how long rates for 30 year fixed rates will stay under 6 percent. My guess is anywhere from a couple of months to the end of the summer or early depending on just how bad things are for the economy and the US consumer as a whole.

Let people know that houses are less expensive, and that while rates are down low, it truly is the best of both worlds for first and second time buyers all over the country. Any buyer benefits from the HUGE inventory stackup, and super low rates to lock in for 30 years.

As Always... SELL SELL SELL & LIST LIST LIST To the Cramericans out there....

BOOYAH

It's time to take the guess work out of real estate transactions!!! Keep your clients on the Red Carpet!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Mon, 03 Mar 2008 06:07:58 -0800

After reading Joey R's blog about fraud at the settlement table in regard to seller assist/assistance I thought it is important to map out some ways to avoid things like this happening. One great way that I am able to make my mortgage clients lives easier (I sell both real estate and mortgages) is to make a drop dead date 1 week before settlement.

This means that I want ALL of my conditions on my clients conditional loan approval to satisfied at least 1 week before settlement. By achieving and working with this earlier(7 days) drop dead date, if anything pops up that is out of our control we have time and some flexibility to do things right. Very few conditions cannot be chased down days and weeks before the Closing Week.

If my clients are closing on March 21st, 2007... By March 14th I want their approval to be entirely clean, except for items that have been taken care of at settlement. (Like a HUD1 from the sale of their existing house) This is one condition that we just can't satisfy until they sell their existing house. On March 14th I want my clients to have many things.. Peace of Mind is #1. I want my client to know that we are clock watching for the last week.... and not chasing conditions that could have been chased weeks earlier. I want them to have a Prelim. Hud 1 settlement sheet so there are no surprises.

There are lot of things that realtors and mortgage professionals can do for their clients to make things easy. Procrastination on chasing conditions... or just procrastination in general by the realtor, or by the realtor's or the lender's company is unacceptable.

MAKE A COMMITMENT TO WORKING WITH YOU LENDER TO GET THINGS DONE NOW RATHER THAN LATER!!!

In real estate and mortgage origination it's OK to get things done ahead of time... I always write my new business when all of my current clients are completely taken care of with their conditions and with their needs. This feeling of having everything that I am currently responsible for allows me to go out and make it RAIN new business very easily!!

GOOD LUCK AND WHEN YOU DO SELL SOME HOUSES MAKE SURE TO STAY ON TOP OF YOUR LENDER IN REGARD TO THE APPROVAL!!! BY DOING THIS YOU WILL MAKE YOUR TRANSACTIONS.... "SURE THINGS" instead of just possibilities!!

INTEREST RATES ARE AT THEIR LOWEST SINCE JANUARY 22nd..... IT'S TIME TO SELL SOME HOUSES!!!!

A WILD WILD WEEK IN THE MARKETS TO SAY THE LEAST!!!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Sat, 01 Mar 2008 07:51:08 -0800

Are there any markets out there anymore with low volatility and Ho Hum trading floors. Both the stock market and bond markets saw very volatile weeks with HUGE swings in interest rate yields to the downside. Stock prices plummeted as the week went on culminating with a 315 point loss to insure the Dow Jones 4th straight month. The Dow Jones loss was smaller than the January loss, but another down month in a series of down months.

Oil priced up to over $103 a barrel on Thursday and Friday increasing the risk of an inflationary trend on consumer and non consumer products. The Fed is keeping a shrewd eye on this situation to say the least. Did anyone else get to listen to Ben Bernanke speak on Capitol Hill on Wed and Thursday?? To say that he doesn't have all the answers is an understatement. The are so many murky parts in the economic picture right now that even he and his team (Fed Governors) are losing sleep over what is really going on in our economy and the worlds economy.

30 year interest rates eased back at weeks end to around 5.75%.... 15 year rates are even cheaper. For how long this cheaper money and possibly getting cheaper money will last is anyone's guess. My guess says its for weeks and months... but definitely not for seasons... Look for the party to be over by years end... and if it's not, and rates are still low... It's only because the economy is in such dire straits!! I don't predict this but come December if we are at 5.5% on the 30 year fixed rate money I would be much surprised.

Just like a Yo Yo reacts to the end of its string..... when the Fed needs to act and raise rates again later this year or early next to avoid higher prices.... Mortgage rates will bounce like a super ball at the first knowledge that the Fed's stance is becoming increasingly more restrictive with its monetary policy!!!!

FOR NOW ALL WE CAN DO IS SELL AS MANY HOUSES AND ORIGINATE AS MANY LOW INTEREST RATE MORTGAGES AS POSSIBLE!! IT'S IMPORTANT TO HELP AS MANY PEOPLE GET RATES THAT START WITH 5 INSTEAD OF 6 OR 7!!

AS ALWAYS IF ANYONE WANTS A COPY OF ONE MY FIRST TIME BUYING GUIDES JUST LET ME KNOW

ULTIMATE FIRST TIME BUYING GUIDE (75 pages) BUYING GUIDE TEST ( 35 Comprehensive ?'s)

ULTIMATE FIRST TIME CLOSING GUIDE AND SETTLEMENT TABLE GUIDE ( 70 pages)

ULTIMATE FIRST TIME REFINANCE GUIDE (70 pages)

DOWN WE GO IN INTEREST RATES!!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Fri, 29 Feb 2008 08:53:57 -0800

THE 10 YEAR BOND IS TESTING THE 3.50'S AS I WRITE THIS...

COULD 5.5% 30 YEAR FIXED RATE MONEY BE FAR BEHIND!!!

MY MESSAGE TO REALTORS AND MORTGAGE PROS ALIKE...

GET YOUR CLIENTS LOCKED IN WHILE GREAT RATES ARE STILL IN TOWN....

NO MATTER WHAT HAPPENS THIS SPRING AND SUMMER RATES WILL NOT BE BACK IN THESE NECK OF THE WOODS AGAIN FOR SOME TIME.

THE FED WILL RAISE RATES AGAIN STARTING IN THE FALL OR THE WINTER OF 2009 AND MORTGAGE RATES WILL REVERT TO BEING PRICED IN THE HIGH 6'S AND MID 7'S AS THE REAL ESTATE MARKET RECOVERS AND SLOWLY DIGESTS THE AMOUNT OF INVENTORY THAT IS ON THE MARKET!!

HAPPY LEAP DAY!!! Interest rates plummet... ARE YOU READY TO SELL SOME HOUSES??

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Fri, 29 Feb 2008 06:31:56 -0800

Well Folks it's that time of year again. Errrr.. You know what I mean!! Happy Leap Day!!!

The real estate industry and the mortgage industry have a lot to celebrate this LEAP DAY.... In the past 5 days the Bond Market has seen a complete turnaround to the tune of about 30 basis points... The overnight 10 year US treasury is hovering at 3.63% after slowing falling during the day yesterday from 3.79%...

This is a HUGE move, and should put a BIG SMILE on so many faces in AMERICA. Rates had climbed over .50 percent over the past month or so without much resistance. It just goes to show you sometimes that no matter what the facts are in the economic data spectrum there are ways to argue and trade both sides of the coin.

In the month or so since we have moved to higher rates and higher yields the markets have reacted to all sorts of stimuli including some anomalous and seasonal types. I found it tough to tell a couple of my clients that interest rates had moved up about an eighth because Mitt Romney had decided to pull his presidential campaign to a polite and quick end. Who knew that McCain was so Pro Business??

The average first time buyer just saw their interest rate move down by over .25%. In monthly dollar terms this means that if you are about to lock in your interest rate and buy your first house..... Or if you are about to refinance and lock your rate in.... That on a $200,000 30 year loan you just saved $33 a month for as long as you keep your mortgage.

Scarily enough... That adds up to $396 per year or about 2/3 of the BUSH "Stimulus" Plam if you are a single taxpayer that makes less than $75,000. Pretty amazing huh? 4 Days in the Bond Market = 66% of Bush Stimulus Plan for single taxpayers making under $75K. BRILLIANT!!!!

As mortgage rates move lower over the next several days,weeks, or months there will be many Americans that are able to lower their monthly costs in a lot of ways!! This will be a major component of the economic recovery for America. Americans will have less expensive mortgage payments and will be able to spend their dollars on better things.

If you have clients that are floating their interest rates before buying their first house...

TODAY is a great day to lock in an interest rate.

Next week could bring anything under the sun including lower rates.

ITS TIME TO SELL SOME HOUSES!!!

AS ALWAYS... LET ME KNOW IF ANYONE WANTS A COPY OF MY ULTIMATE FIRST TIME BUYING GUIDES??

THEY ARE FREE TO GOOD REALTORS AND MORTGAGE PROFESSIONALS THAT ARE INTERESTED!!

Interest rates plummet intraday on Jobless Claims and Bernanke Testimony!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Thu, 28 Feb 2008 13:42:00 -0800

Interest rates of all types moved down dramatically on Thursday in reaction to Bernanke's testimony and some key weak economic data. 10 year bond is now at 3.71% and holding steady. This means that interest rates are getting close to getting back under 6% on 30 year fixed rates.

Call me if you are looking to refinance in PA, DE, MD, NJ, and VA and you don't want to pay ANY CLOSING COSTS!!!

Another day of the Bearded One on Capitol Hill!!

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Thu, 28 Feb 2008 08:07:23 -0800

Yes.. It's TRUE... Ben Bernanke is back on Capitol Hill today trying to explain what is going on in the economy to Congressional Leaders. The big news before he gets to testify today is the the weekly jobless claims was up to 19,000 to 373,000 for last week. The 4 week moving average crept up to 360,500. Most economists think that when this average reaches 375,000 new jobless claims on the moving average that the RECESSION is officially here. At least in regard to job creation and job retention.

The bond market rallied late in the day yesterday, and continued on this weak jobless claims number. The 10 year US Treasury should open some where in the 3.70's as opposed to the 3 90's on Monday, and the 3.86 yesterday.

Keep an eye on Bernanke today, as he tends to telegraph his coming actions more than most Fed Chairmen...

Does Ben need a muzzle?? Some economists and pundits think that Ben the Bearded One should talk less, and let his actions do more of the talking. Personally I like Ben... He took over the reins at a time in the game when even a genius with uncanny Fed abilities would probably struggle. Look for Congress to be all over the inflation issue.... and the Dollar weakness. If Ben cuts rates again, it will weaken the Dollar even more, and give inflation another boost of energy as money gets cheaper, and products cost more.

Good Luck Ben... You have one of most difficult jobs in America, and the fact that you have umpteen thousand opinions on your job perfomance just reinforces that notion that NO GOOD DEED GOES UNPUNISHED!!!

Look for rates to be reasonably stable over the next several days as the stock market seems to have found a comfortable equilibrium and seem to be trading in a very tight trading range.

What will Bernanke have to say today???

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Wed, 27 Feb 2008 07:48:35 -0800

The bond market put up a mild rally yesterday after Fed Governor Kohn said his piece. The 10 year bond opened at 3.83% versus 3.92 on Monday morning. The big news today in that Bernanke will testify about monetary policy. This Fed seems more able and more comfortable to speak its mind. The latest telling stat about the looming recession is that 45% of Economists believe that a recession is imminent. The other 55% think that we will skirt a recession or avoid it entirely. Chances are that The Fed will continue it's easily policy in the coming months in an effort to turn the tide that is and remains a credit crunch on large sections of the consumer world. Job numbers are out later in the week and will be scrutinized closely to see which direction the employment market is really heading!!

If any ActiveRain member wants a copy of The Ultimate First Time Buying Guide, or The Ultimate First Time Closing and Settlement Table Guide just let me know. I can get a copy of it out in the mail to you. Both books are over 70 pages and contain some of the most important first time buying and closing information available.

February 25th Market Update

Chris Catanese (Ultimate First Time Buying Guides/Keller Williams Real Estat) — Mon, 25 Feb 2008 13:35:44 -0800

As the end of February nears, interest rates are at their highest levels since the end of last year. Many things have weighed on the market to move interest rates higher. This morning's Real Estate numbers were slightly negative, but because they were being predicted to be a lot worse interest rates continued to move up.

New home prices were down 4.6% for January and the new median house is worth $201,000

Existing home sales were down 0.4 percent for the month of January.

Inventories roses more than 5% and were up more than 18% as compared to a year ago. This means that it will take even longer to sell your average listing.

Interest rates are now approaching the 6.25% mark on 30 year fixed rate conventional money.

I am still able to do my famous.... "No Fee Refi" deal for anyone that is interested. It was a lot easier and attractive at 5.625% and No Fees than it is at 6.25% and No Fees.

I have advised my clients that decided not to lock in at 5.625% to get their appraisals done, and to get approved and keep an eye on the market. This way once the market cooperates they can lock in, and close in less than a week!!

As always, don't hesitate to give me a shout on my cellphone if you have questions. (215) 870 - 3060