KUNO Real Estate

Financial Market Up-Date

BOE (Bank of England) & ECB (European Central Bank) kept interest rates the same along with the FED. The 3 monetary entities are more worried about economic growth instead of inflation. Last report that the inflation rate in the U.S. rose over 5% which is the highest jump in 18 years. When does the FED start raising rates to cool off inflation? Oil is the number one cause of inflation. With oil prices continuning to go down from it's high of $147.00 this will be a good sign to slow down inflation. Oil is currently around $115.00 a barrel. If oil keeps going down and the dollar strengthing the FED may keep rates the same to keep economic growth on it's radar. The financial slow down is also being effected globally. A global recession is a possible concern to everyone because of the financial markets. As global investors had there share of investing in sub-prime mortgages. We will have to see each quarter how things play out. Based on data that I am seeing with more continued write downs from Investment & Commercial Banks the financial slow down will continue to the end of the year for sure. I will keep an eye on the markets and quarterly gains or losses and report accordingly. Lending institutions will continue to hold on to their money which means tighter lending restrictions for consumers. Do not listen to the media there is money out there for mortgages. It’s just harder to get. If you have good credit, down payment money and your debt to income ratios (28% to 36% guideline) are with-in the lending institutions guidelines than you can get an affordable loan.

Fannie Mae & Freddie Mac is also a big concern. The U.S. Government will bail them out if need be, so far that has not happened. Between the 2 they insure 5 Trillion Dollars worth of mortgages. President Bush signed off on the housing bill (July 30^th, 2008) which part of the bill is to help Fannie Mae & Freddie Mac if needed. The new bill will immediately help 243,000 mortgage holders from foreclosure and will eventually reach up to 400,000 mortgage holders. 

Also part of the housing bill first time home buyers will receive a $7500.00 tax credit. If you are a first time home buyer the credit is good even if you purchased your home before the bill was signed. The tax credit will be from April 9^th 2008 to before July 1^st 2009. Check out www.kunorealestate.com and go to mortgage/Housing bill page for more info.

The way we will come out of this housing slump/credit crisis is commodities (oil, gold, copper). The more oil drops the stronger the dollar, the stronger the dollar than investors will buy bank stocks and treasuries. The more bank stocks being purchased the more money the banks will have to lend. The more money the banks have then their lending restrictions become more relaxed. A strong housing market is the key to a strong economy! Investor confidence in our financials is a must! 

Interest rates have stayed steady moving up or down with-in 1/8% to 1% for the last couple months. 10 Year Note Yields have stayed around 4%. When the yield goes down so do interest rates.  

Home prices are staying steady in Northwest Indiana except for foreclosures. You are still in a great environment to buy in. Remember we are not California, Las Vegas, Phoenix and Florida were speculators inflated home prices. We are at the bottom of home prices (except foreclosures) or pretty close in are area. I do not see us going past 12% to 15% total loss since the housing slide began. We have come down 6% to 10% depending on the location of your property.

Remember that property taxes for 2009 payable in 2010 will be 1.5%. In 2010 payable 2011 taxes will be 1% and will continue to be (assessed value). This is for owner occupied homes.

Lake County may vary this by 2 tenths of a percent. Real Estate Investors and Commercial Business owners will also have taxes reduced. This should also help real estate sales. Pending home sales rose 5.3% for June which market annalists estimated a 1% loss. This is a good sign buyers are starting to come out.

The 3 combinations-lower home prices, lower taxes and historically low interest rates mean buy, buy, buy!!!!!!!!! Do not wait. Contact KUNO Real Estate the best buyer agent on your next purchase!!!!!

KUNO Real Estate to pay up to $1000.00 in closing costs

As I predicted the FED did not raise or lower the Fed Funds Rate, it's still at 2%. By this move the FED is more worried about economic growth than inflation. At some point in the future the FED will have to start raising the Fed Funds Rate to cool off inflation which in turn will strengthen the dollar. Once this happens commodities (crude oil) will start to come down. Investors will have confidence to start investing in financials and treasuries again. 

More foreclosures coming up on the market. Great time to buy one. Non-foreclosure home prices are steady but not going up in value anytime soon. If this is what is keeping you from buying a home (declining prices) don’t be!!! We are not California, Las Vegas, Florida and Phoenix Arizona which I was there for 2 weeks checking out markets. These areas experienced mass speculations which drove home prices through the roof. We are not like that here. I believe the worst is over for our area. You are still way a head of the game if you buy now!

As a successful home buyer agent let me show you how it’s done right the first time. You will be so impressed on my market knowledge. I have really; I mean really saved thousands of dollars for my clients. It does not cost you any money for you to ask me questions. It also does not cost you any money if I represent you as a home buyer agent. The seller pays my commission.  

Interest rates have crept up in the last couple of months. Historically they are still very good. If you are waiting for rates to get to 5% for a 30 year fixed you will be waiting a very long time. If this also is making you wait to buy, don’t. The combinations for home buying are here! 

Rates are at 5.73% (April 16th) for a 30 year fixed.

FED meets in May to see if another rate cut is needed. Fed Fund Rate is currently at 2.25%. The resent cuts and policy changes has only helped the banking industry but has not helped the consumer with lower mortgage rates. Rates are flat between 5.6% and 6.2% for the last month or so. This is still a good rate historically. If people keep investing in commodities (like oil and gold) this takes money away from treasuries. It’s back to investor confidence in our financial markets; this is why people invest in commodities because it’s a safe haven for uncertainty in Wall Street. Hopefully the end of the 2^nd quarter will gives us a better feel on how the banking industry is doing as a whole with write downs and if there is a ceiling to them. This is why no one is really investing in the financial market and mortgage rates have not come done as they should have. Week dollar does not help either.  

Good prices on homes do not let the media scare you in purchasing a home. Prices have come down 6% to 10%. If you get a 15 or 30 year fixed rate you can not go wrong. The only thing that goes up or down is the taxes & insurance (escrow) principal & interest stay the same. This is the safest way to purchase a home.

 If you are an investor or builder then your mortgage needs are different. KUNO knows how to crunch numbers to see what is the best scenario for the businessman or businesswoman.

Please call my office for more in-depth information and how KUNO can educate and give the best option for you. I have recently told numerous people not to sale or buy based on the information and what their short & long term goals were. Yes a Realtor that passes up a sale. KUNO real estate believes in long term relationships and its good solid business sense. When people see that you are honest and sincere they will come back and send you more business.

There are some real good deals on foreclosures. 

Banks need to un-load them to get them off the books.

Because of the sub-prime fallout foreclosures are everywhere in everyone’s price range.

FORECLOSURES: Discover this hot market!!!!!!!!!!

WE HAVE BEEN BUYING FORECLOSURES SINCE 1995

New, newer and older homes to choose from with great deals! We can help you in this market because of our years purchasing them, plus knowing how to negotiate with the banks to get the best possible price. Do not be scared to purchase one this is were our construction experience pays off.; we know what to look for. All foreclosures are as-is purchases with no warranties or disclosures this is why you want to be represented by the best. Call KUNO today! The foreclosure market is a hot market to buy in now. What ever your price range there is a home for you. Some homes just need paint. Instant equity from 20% to 50% depending on the market the home is in. We are helping more buyers in this market. 

If you do not want to buy a foreclosure we can help you with an owner occupied or new construction also, its second nature to us because of the years of experience and knowledge in the construction industry. Trust the Realtor with the most overall knowledge!

Call Us Today 888-218-KUNO

www.kunorealestate.com

With all the moves the U.S. Treasury & the Federal Reserve has made (lowering the Fed Funds Rate & Discount Rate) plus other policy changes it has not helped the consumer with long term mortgages. The only sector that has benefited is the banks. 30 year mortgages are stagnant and are around 6%. This is still good but could be better. 

Contact our office for all your real estate needs.

Check out some tips on www.kunorealestate.com

This post is for the Galich family and their loss. Great Man and Great Family he will be very well missed. Mike and my father Tom Kunovski grew up together in Gary, IN.

God Bless Mike We Will Miss You!!!!!!!!!!!!!!!!!!!!