Rates Dip
Mortgage rates dipped at the end of August for the fifth consecutive week, according to the latest survey by mortgage giant Freddie Mac.
The belief that the Federal Reserve Board could possibly refrain from increasing short-term rates any further has "taken upward pressure off mortgage rates," says Frank Nothaft, Freddie Mac's chief economist.
The average rate for a 30-year, fixed-rate mortgage stood at 6.48 percent, the lowest point since April when the average was 6.43 percent. Last year at this time, however, the typical cost of a 30-year fixed loan was 5.77.
The average for a 15-year fixed loan ended the month at 6.18 percent. A year ago, the average was 5.35 percent, but by April, it had climbed to 6.17 and it hadn't been any lower since.
On average, borrowers also were paying 0.4 points for either fixed-rate product. A point is 1 percent of the loan amount.
April also is the benchmark for adjustable-rate mortgages. The average for a five-year hybrid ARM -- the rate remains fixed for the first 60 payments and then resets on an annual basis thereafter -- was 5.57 percent four months ago. Now, it's 5.6 percent. But a year ago, it was 5.3 percent.
The rate on one-year adjustables now averages 5.6 percent. In April, it was 5.57 percent; a year ago, 4.56 percent.
Rent Instead of Sell?
Can't sell that condo? List it as a rental.
It's not a slam-dunk proposition. Certain conditions are required to make for a good rental property, but the option could be an alternative in today's changing market -- if only temporarily. Speculators are bailing out of the once super hot condo markets and some potential first and second-home buyers, thwarted by higher energy costs, are opting for the rental market instead. As a result, condo inventories are rising and the sector is slowing down much more quickly than the single-family detached home market.
The good news is that rentals are tightening and rates are on the upswing. So you might be able to rent a place you are unable to sell, at least until the market starts to swing back in your favor. Rent it for enough and you could be able to cover your entire mortgage payment with little or no other out-of-pocket costs.
Command Performance
Here's one that gives a whole new meaning to the term "mobile home." Auto parts maker Lear Corp. has tricked out a garage door opener that puts you in the driver's seat, zapping commands to electricity-powered items in your home.
Lear, which makes 80 percent of the seats for GM automobiles, is rolling out its futurist garage door remote, the Car2U System, in a host of 2007 GM models from Buicks to Yukons.
The glorified garage door remote option is a three-button, DIP switch-configured, universal transmitter, embedded in your car's interior to remotely activate, from up to a football field away, just about anything in your home that you can plug into a 110-volt outlet. In fully-equipped cars you can also use a fob to remotely start your car, start the climate control, roll the windows, activate the entertainment system, and adjust the electric seats.
Later, modules for many electricity-power devices in your home will cost $30 to $60 each, but no price has been set for the home automation set up.
Just think of the possibilities. Hit the preprogrammed Car2U button as you arrive home from work to crank up the big screen TV so you won't miss an inning of the big game. Or perhaps you just left the house and forgot to turn out the lights, close the electric shades and set the security alarm. As long as you are less than two blocks away, and the gear is in place, there's practically nothing you can't turn off, turn on, start up or shut down.
A Time to Pause
With the country's population expected to pass the 300 million mark later this year, the Census Bureau recently took a look back at the year in which America hit the 200 million mark (1967) and the year the U.S. made it to 100 million (1915). Here's some of what it found:
- Price of a new home: $290,600 in 2006; $24,600 ($149,147 in 2006 dollars) in 1967; and $3,200 ($64,158 in 2006 dollars) in 1915.
- Cost for a gallon of regular gas: $3.04 as of Aug. 7; 33 cents ($2 in '06 dollars) in 1967; and 25 cents ($5.01 in 2006 dollars) in 1915.
- Cost of a gallon of milk: $3 in 2006; $1.03 gallon ($6.24 in 2006 dollars) in 1967; and $0.36 gallon ($7.22 in '06 dollars) in 1915.
- Cost of a first-class stamp: 39 cents in 2006; 5 cents in 1967; and 2 cents in 1915.
- Symbolizing the nation's movement both south and west, Phoenix has grown from a population of a mere 11,134 people in 1915 to 439,170 in 1967 and 1.5 million in 2006, making it the country's sixth most populous city.
- Florida, too, has been transformed from almost an afterthought with just 923,000 people in 1915 to 6.2 million people in 1967 and a whopping 17.8 million in 2006.
- Percentage of households who owned the home in which they live: 45.9 in 1915; 63.6 in 1967; and 68.9 in 2006.
- Number of motor vehicle registrations: 2.5 million in 1915, 98.9 million in 1967 and 237.2 million in 2006.
No wonder we need so many two and three-car garages!
Construction Defect Litigation Book
When a leak in the roof or a crack in the basement turns a new dream home into a nightmare, the builder or developer will usually repair it. But if he doesn't, there is now help for owners, community managers, and others who need practical advice on how to resolve these complicated issues.
"Construction Defect Litigation: The Community Association's Guide to the Legal Process," is now available from Community Associations Press, the publishing division of Community Associations Institute.
The 264-page book explains how to identify, investigate and document defects, the importance of right-to-repair laws and alternative dispute resolution, the community manager's role in the case, and what happens when the process is completed. The book also provides detailed, step-by-step guidance on how to prepare for and proceed successfully to resolve construction defect problems, regardless of whether the case goes to court.
The book costs $49.95 and can be ordered by calling CAI tool-free at 888-224-4321. CAI is a national membership organization dedicated to helping homeowner and condominium associations meet the expectations of their residents. The group's 28,000 members include community managers, volunteer homeowner leaders and businesses and professionals who support associations.
