New Home Sales Rise YAY!

New home sales rose by 4.8% in September. That's a great positive sign that we could be seeing the beginning of the end of the real estate downturn that's been happening over the past 2 years.

FL House Passes Propert Tax Reform Package

The Florida House passes a tax reform package that will now go to the Senate for approval. Here is a complete article: http://www.floridarealtors.org/NewsAndEvents/n1-102307.cfm

Florida Property Insurance

Well, we're almost through the 2007 Hurricane season. If we get through this one without any major incidents - we should continue to see more loosening of the belt in the insurance industry. Companies will not have such an excuse to have such high rates!

FHA being Sued by Ameridream and Nehemiah

Ameridream and Nehemiah are non-profit real estate companies that help facilitate the 3% downpayment required by FHA borrowers as a gift coming from the seller. FHA Rules require the 3% down payment to come from the Borrower and one of the allowed sources of that down payment is through a gift. Ameridream and Nehemiah would "gift" the money to the buyer after the seller "donates" the same amount of money to the non-profit org. I was pretty surprised when I first heard about this practice and that FHA allowed it. I guess FHA finally got wise and said that it wasn't allowed anymore. That must have made Ameridream and Nehemiah pretty upset because now they are suing FHA.

Florida Property Tax Estimator

Here is a tool I found that calculates the expected taxes you will pay if the Super Homestead exemption passes. https://midas.fgcu.edu/cob/taxsim/

Insurance Industry is BOOMING In Florida

Looking for a new business to start? Insurance may deserve your consideration. Big insurers reported $150 BILLION in profits over the last 3 years - even after paying off billions in hurricane claims! Insurance companies have also have the benefit of reduction in expenses due to state legislation that reduced the costs of re-insurance (the insurance insurance companies get). Governor Crist is not too happy about the fact that these large companies are making such record profits and yet have not reduced insurance rates commensurate with their profits! He all but accused them of collusion which is a serious federal offense and breaks anti-trust laws. If he can prove it - there will be a major shake down in the insurance industry! And who will benefit? Us! The everyday consumer! Lower rates, here we come!

Fed Cuts Fund Rate

As you probably already know, the FED cut the fund rate yesterday. What does that mean? Well, it affects short term rates (ARMs, HELOCs, and credit cards) that use the Fed funds rate as an index. It doesn't directly impact 30 year fixed rates on mortgages, though. Over the last 7 years there has been no direct or inverse relationship between the 30 year fixed rates, and the Fed funds rate (e.g. in Jan 01 the fed funds rate was 6.01% and 30 year fixed was at 7.03% by Dec 01 the Fed fund rate was all the way down to 4.25% and the 30 year fixed rates were up to 7.07%). There is a lot of uncertainty about what the Fed's move will do in the marketplace, although one thing is for certain: there is a lot of volatility. If you are waiting for a better 30 yr fixed rate, you could be waiting for a very long time. Historically (that is in the last 20 years) rates are very low. They have been as high as the high teens). If you would like a mortgage consultation, contact a reliable mortgage lender. Contact me if you would like to get the name and number of one!