Simple and Sustainable -- Lynn Reidl, Real Estate Blogger

Banks Raise Mortgage Qualification Standards

Thu, 12 Nov 2009 07:45:00 -0700

Despite the economy's improvement and prodding from Congress, banks don't seem ready to open their purse strings just yet.

Nationally, mortgage approval standards are tightening.

The data comes from a quarterly survey the Federal Reserve sends to its member banks. The Fed asks senior bank loan officers around the country whether "prime" residential mortgage guidelines had tightened in the last 3 months.

For the period July-September 2009:

Roughly 1 in 4 banks said guidelines tightened
Roughly 3 in 4 banks said guidelines were "basically unchanged"

Just one bank said its guidelines had loosened.

Combine the Fed's survey with recent underwriting updates from the FHA and from Fannie Mae and it becomes clear that mortgage lenders are much more cautious about their loans than they were, say, 2 years ago.

Today's borrowers face a host of hurdles including:

Higher minimum FICO scores
Larger downpayment requirements for purchases
Larger equity positions for refinances
Lower debt-to-income ratios

In other words, mortgage rates may stay low into 2010, but that won't matter to homeowners that don't meet minimum eligibility standards. With each passing quarter, that list gets smaller.

Therefore, if you're on the fence about whether now is a good time to buy a home, remember that, along with an increase in mortgage approval standards, home values are rising, too.

Acting sooner is probably better than acting later.

GMAC real estate to be Re-Branded 'Real Living' as Brookfield Continues Expansion

Tue, 10 Nov 2009 22:21:00 -0700

REAL LIVING, THE NATION'S FIRST CONSUMER LIFESTYLE REAL ESTATE

BRAND, IS ABOUT TO GET BIGGER - MUCH BIGGER

GMAC Real Estate to be Re-Branded 'Real Living' as Brookfield Continues Expansion

and Ongoing Commitment to the Industry by Acquiring

Real Living Network Services

Oak Brook, Ill. and Columbus, Ohio (November 11, 2009) - Real Living Network Services, a subsidiary of Real Living, Inc. (http://www.realliving.com), the real estate industry's first consumer lifestyle brand franchisor, and GMAC Real Estate (http://www.gmacrealestate.com) today announced they are merging to become one of America's leading residential real estate franchises with more than $20 billion in annual home sales.

Locally, Real Living HER (central Ohio market) and Real Living Realty Services (Dayton, Cincinnati and Louisville) will continue to be independently owned and operated franchisees. Chris Derrow, who was executive vice president of Real Living will become president of the holding company that has ownership interests in Real Living HER and Real Living Realty Services as well as Real Living Title, Real Living Mortgage and Real Living HomeGard (warranty). Clyde Corle, president of Real Living Realty Services and Pat Law will continue their leadership of Realty Services. RLHER and RLRS will remain, as they are today, franchisees of the new Real Living real estate franchisors.

'I eagerly anticipate working with an expanded network of real estate professionals, enhanced technology platforms, and a thriving relocation program,' said Chris Derrow. 'This merger for Real Living Network Services will further strengthen our award-winning franchises-providing new opportunities for our real estate agents and an enhanced consumer experience.'

The move was set in motion late last year when Brookfield Residential Property Services (Brookfield RPS), a division of Brookfield Asset Management Inc. (Brookfield), acquired GMAC Real Estate. Earlier this month, Brookfield RPS acquired Real Living Network Services, a subsidiary of Real Living Inc., and as a result will now rebrand GMAC Real Estate as Real Living.

Columbus, Ohio-based Real Living is a national award-winning brand known for its innovation, customer service and track record of attracting results-driven brokers and sales professionals, along with a culture of partnership and collaboration within its network.

'In Real Living, we found the ideal partner and brand for what we are hoping to accomplish with our real estate operations, which we are committed to building even further,' said Graham Badun, Managing Partner & CEO of Brookfield Residential Property Services. 'We explored a number of options, including creating an entirely new brand from the ground up, but our customer feedback and research kept leading us back to Real Living. Both companies share many of the same core values and combined will be part of a bigger, stronger network of brokers and sales professionals.'

Badun added, 'We are thrilled to have Real Living as our flagship U.S. real estate brand, and welcome Real Living's 2,000 brokers and sales associates into Brookfield RPS' North American real estate network of almost 30,000 real estate professionals. We look forward to further expanding the size of our network by adding new franchisees that are truly looking for something fresh and different, and we are excited about the opportunity to take the brand to new markets internationally. Adopting and expanding an already established and respected brand will benefit the entire GMAC Real Estate network of brokers and sales professionals from day one,' he said.

Badun also announced the appointment of Real Living's Harley E. Rouda, Jr., a longtime real estate industry broker, owner, operator and franchisor, as President of the newly combined operations.

Real Living was founded in 2002 and the company has grown to become one of the nation's premier real estate companies and brands. Its technology platform has been recognized by Inman News as one of the best in the industry, the company has been named 'Most Promising New National Brand' by the Swanepoel TRENDS Report, and Entrepreneur Magazine listed Real Living as one of the Top 50 New Franchises.

'We brought a truly fresh approach to the industry earlier this decade when we launched Real Living as the first-ever consumer lifestyle real estate brand, and we will continue to do so by bringing new programs, services, support, training and technology, to our brokers and sales professionals,' Rouda, Jr. said.

'There is an incredible need for a broker and agent-centric brand that is consumer-focused, yet managed by an experienced team that understands real estate. Combined, Real Living and GMAC Real Estate have that team as well as a truly differentiated brand,' he said.

Brokers and sales professionals looking for more information on the launch and rollout of the Real Living brand can view RealLiving.com for more about the announcement. Company executives will also be available at this week's annual NATIONAL ASSOCIATION OF REALTORS� Conference & Expo in San Diego.

About Real Living

Real Living is a full-service real estate company with a comprehensive and integrated suite of resources and services for franchisees, sales professionals, and consumers. Real Living was named one of the best new franchisors by Entrepreneur magazine. The firm also won the Inman Innovator Award and was named the most promising new national brand by the Swanepoel TRENDS Report. For more information, visit http://www.realliving.com

About GMAC Real Estate

GMAC Real Estate is one of the industry's leading real estate firms with offices throughout the United States, Canada and Portugal. The company's unique service delivery model, Premier Service�, has earned it a national Customer Satisfaction Rating of 95% since its inception in 2002 - the best in the industry. For more information, visit http://www.gmacrealestate.com

About Brookfield Residential Property Services

Brookfield Residential Property Services is a division of Brookfield Asset Management Inc., a global asset manager focused on property, power and infrastructure assets. Brookfield has approximately USD $90 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA. Brookfield Residential Property Services was named in the 2009 Swanepoel TRENDS Report as the number one real estate trendsetter in 2008. For more information, visit http://www.brookfieldrps.com

FHA Streamline Refinance Program : There's 5 Days Left

Tue, 10 Nov 2009 07:45:00 -0700

Consider this a last call for FHA Streamline Refinances. Starting next Tuesday, the popular rate-lowering program gets strict on borrowers.

There's 5 days left.

Under the current streamline refi guidelines, FHA homeowners have minimal program eligibility requirements.

FICO scores must be 620 or higher
The refinance must provide a "tangible benefit"
No mortgage lates allowed in the last 12 months

Beyond that, everything else goes, practically. There's no income, asset, or job verification with the current FHA Streamline program. Neither is there an appraisal requirement. It doesn't matter if you're 50% underwater.

Until next week, that is.

Beginning November 17, FHA Streamline Refinance applicants must show evidence of income and employment, plus proof of cash required to close. Furthermore, the FHA is limited loan-to-values to 97.75% for homeowners that want to "roll closing costs" into their mortgage.

In areas of declining home values, this may render refinancing impossible.

There's more changes, too, as highlighted by the Federal Housing Commissioner. Read up for yourself, or ask a mortgage professional for help.

If you're a homeowner and you're currently financed through the FHA, it may be prudent to explore the possibility of an FHA Streamline Refi. Mortgage rates are low right now and FHA guidelines are loose.

Starting next week, FHA Streamlines will be a completely different beast.

In What Direction Should My Ceiling Fan Blades Rotate?

Mon, 09 Nov 2009 07:45:00 -0700

It's November. The official start of winter is 6 weeks away. For homeowners with ceiling fans, let this be a reminder to reverse your units' blade rotation.

Watch this 2-minute video for a hands-on demonstration of changing the direction of your ceiling fans, plus a clever test using ordinary tissue to see if you've done it properly.

In the cooler months, the blades of a ceiling fan should be set to rotate clockwise. It forces warm air at the top of a room to recirculate downward into the "living space". Proper blade rotation can change a room's "feel" by 8 degrees or more, allowing for more modest settings on a home thermostat.

Congress Expands And Extends The First-Time Home Buyer Tax Credit

Fri, 06 Nov 2009 07:45:00 -0700

Congress both extended and expanded the First-Time Home Buyer Tax Credit program Thursday.

The White House says the President will sign it into law today.

The up-to-$8000 tax credit's expiration date has been pushed forward to spring, requiring homebuyers to be under contract by April 30, 2010, and to be closed by June 30, 2010.

The program's basic eligibility requirements remain the same:

Buyers can't purchase the home from a parent, spouse, or child
Buyers can't purchase the home from an entity in which they're a majority owner
Buyers can't acquire the home by gift or inheritance
All parties to the purchase must meet eligibility requirements

The new law includes some notable updates, however.

For one, the definition of "first-time home buyer" has been expanded to include most homeowners with at least 5 years in their current home. "Move-up" buyers like these are now eligible for IRS tax credits, but with a cap at $6,500.

This means that you don't have to be a true first-time home buyer to claim the "first-time home buyer tax credit".

Other eligibility changes include:

The subject property's sales price may not exceed $800,000
The subject property must be a primary residence
Income thresholds raised to $125,000 for single-filers and $225,500 for joint-filer

And remember, the First-Time Home Buyer program grants a tax credit as opposed to a deduction. This means that a tax filer would receive a cash payment of $2,000 from the U.S. Treasury if his "normal" tax liability totals $6,000 and he was eligible for all $8,000 available under the new law.

The complete list of qualifying criteria is posted on the IRS website. Be sure to review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010.

It's 5 months away.

A Simple Explanation Of The Federal Reserve Statement (November 4, 2009 Edition)

Wed, 04 Nov 2009 13:50:01 -0700

The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.

In its press release, the FOMC noted that the U.S. economy "has continued to pick up" since the September FOMC meeting and that housing market activity has increased.

It's the third consecutive post-FOMC statement in which the Fed speaks optimistically about the U.S. economy -- a signal that the recession is likely over.

The economy isn't without threats, however, and the Fed identified several in its announcement, including:

Ongoing job losses for American workers
Reduced fixed investment by businesses
Ongoing challenges for the financial markets

The overall tone remained positive, however, as inflation appears to be held in check.

Also in its statement, the Fed confirmed its plan to hold the Fed Funds Rate near zero percent "for an extended period" and to honor its $1.25 trillion commitment to the mortgage bond market.

The Fed plans to wind down its mortgage market support over the next 5 months, reaffirming its March 2010 exit date. For now, Fed support helps hold mortgage rates down.

Mortgage market reaction to the Fed's press release is negative overall. Mortgage rates are rising.

The FOMC's next scheduled meeting is December 15-16, 2009.

Because Of The Federal Reserve, You Should Lock Before 2:15 PM ET Today

Wed, 04 Nov 2009 07:45:00 -0700

The Federal Open Market Committee caps off a scheduled, 2-day meeting today in the nation's capital, its 8th meeting of the year.

The group adjourns at 2:15 PM ET and, as is customary, will issue a press release reviewing its monetary policy and the health of the U.S. economy.

The FOMC's post-meeting statements are brief but comprehensive. They're a window into the mind of the Federal Reserve and Wall Street picks apart every sentence for clues.

It's why FOMC meetings tend to shake up the mortgage markets -- for good and for bad.

After its September 2009 meeting, the FOMC said in its press release:

Financial markets have improved
Housing activity has increased
Economic activity has "picked up"

Since September, the momentum has picked up. Credit risks have reduced further, home sales are surging, and, although unemployment remains high, the Fed remains optimistic about a full economic recovery.

Today's FOMC press release will be closely watched. If the Fed alludes to strong growth with inflation in 2010, mortgage rates should rise. Reference to slower growth should help keep rates steady.

The FOMC is expected to leave the Fed Funds Rate within its target range of 0.000-0.250 percent -- the lowest it's been in history. However, it's what the Fed says Wednesday that will matter more than what it does.

If you're floating a mortgage rate or wondering if the time is right to lock, the safe approach is to lock prior to 2:15 PM ET Wednesday.

Real Living Helios E-Waste Recycle Fundraiser

Tue, 03 Nov 2009 10:34:00 -0700

After my recent twitter complaint about Chicago's recycling options, I was happy to hear my company is involved in this recycling fundraiser.

We have a box located in the office so that everybody can participate in our E-Waste Recycling Fundraiser. We will be earning money by recycling inkjet cartridges, cell phones, PDAs, digital cameras and iPods with a 100% landfill-free company. Just bring your items in and drop them in the box, tell your friends and family the more we get the more money for our charity.

Since 1988, B.C.S. Recycling Specialists has been properly disposing of e-waste by reuse, recycling and remarketing. B.C.S. is a 100% landfill-free company so, items are either recycled or reused and nothing reaches the landfill! In the case of reuse, items are first wiped clean of all data using a government approved data erasing software.

If you would like more information on this company here is their website - www.scrapdr.com

Higher Home Prices Ahead, Says The Pending Home Sales Index

Tue, 03 Nov 2009 07:45:00 -0700

The housing market continues to steam forward.

As reported by the National Association of Realtors�, the Pending Home Sales Index posted its 8th consecutive monthly gain in September.

It's the longest winning streak in the history of the index and Pending Home Sales are now at their highest levels since December 2006.

A Pending Home Sale is a home under contract to sell, but not yet closed. It's the precursor to an Existing Home Sale.

Trade group data shows that nearly 80 percent of "pending" homes close within 2 months. The majority of those remaining close within months 3 and 4.

When the Pending Home Sales Index rises, it tells us that market activity has picked up. September's data confirms what we've been noticing since February -- the Buyers Market is ending.

With more homes under contract in the marketplace, homebuyers typically face one or more of the following:

1. Competitive, multiple-offer situations
2. Reduced purchase price leverage over sellers
3. Fewer seller concessions

Therefore, if you're buying a home in the next several months, know that the 8-month run in Pending Sales will lead to a run in closed sales. It should result in higher home prices, too

Indeed, we're already seeing it.

A Healthier Home Choice -- 1255 N Greenview

Mon, 02 Nov 2009 10:19:00 -0700

'It's not easy to know if your home sweet home could be making you sick, because symptoms of environmental illness (a long list that can include irritation of the eyes, throat, skin, and nasal passages, as well as headaches and fatigue) can have many causes. But your house may indeed be the culprit if you notice you consistently feel better outside than indoors, or you start feeling lousy after: moving into a new home; remodeling your current one; bringing in a new piece of furniture; or using a new product.' -- Sally Lehrman

The Home is Where the Heart is. I have found that my favorite places to live are the ones where good memories have been made and that I feel a serene calm and a pleasant nights sleep. Health, Heart, Home that is what I want for my clients and for myself.

Our new listing at 1255 N Greenview is a good example of a rehab that accented with as many healthy home options. Chemical sensitivity is a problem for many, some who know and some who have no idea why they wake up feeling poorly due to these allergens and offgassing chemicals.

Let's focus on positive solutions and let me tell you of some great ways this home is creating wellness and how your can either locate a healthy home option or rehab your own home. 1255 N Greenview's Healthy Home Aspects - water filtration system, low VOC paints, gas available but capped, air filter systems, low emitting carpets, and recycled glass tiles.

During my time as a real estate agent, I have found that new construction and rehab properties have caused myself and my clients to leave the "dusty showings" with symptoms of allergens, signs such as headache, stuffy sinuses, coughing, etc. I had to wonder how the chemicals of a new home smell are actually affecting us. So I got down to do some research and look what I found:

'About 10-100 organic compounds were detected offgassing from each material. Four mixtures of materials were then chosen for detailed study: paint on sheetrock; carpet and carpet glue; wallpaper and adhesives; cleansers and a spray pesticide...We conclude that common materials found in nearly every home and place of business may cause elevated exposures to toxic chemicals.'

'A healthy building is one that adversely affects neither the health of its occupants nor the larger environment. Indoor air quality (IAQ) concerns are among many indoor environmental issues that must be addressed to avoid adverse impacts on occupants' health and well being. Among the other indoor environmental factors that must be considered are the quality of thermal, light, acoustic, privacy, security, and functional suitability. In addition to concerns about indoor environmental quality and its affect on occupants, buildings must not adversely affect the larger environment. The construction, operation, use, and ultimate disposition of a building must have minimal adverse effects on the natural environment or ultimately it will adversely affect people whether indoors or out. Buildings are healthy only if their effects on their occupants and the larger environment are benign.' -- Hal Levin & Associates

'negative environmental impacts of commercial and residential building construction, maintenance, and energy use. These impacts include inefficient and wasteful energy use, possible global warming from fossil fuel combustion for heating, indoor air pollution, respiratory and other health problems, and deforestation. The author advocates new approaches such as "climate-sensitive design," "flexible buildings," and more environmentally friendly materials.' -- David Roodman, Worldwatch Institute

After finding out so many different areas in the new construction and existing homes, I felt a need to find a few remedies. My best source at this point for my clients is with the link from Healthy Child Healthy World organization. To review details, click on the WebMD house http://healthychild.org/live-healthy/health_ehome/ and start implementing some of these disciplines'. Start small or do a total overhaul. But in the end, make that first action step. If you are searching for a new home, ask questions and think about purchasing a home that has created its design with wellness in mind.

How To Test A Home Smoke Alarm

Mon, 02 Nov 2009 07:45:00 -0700

According to the United States Fire Administration, there were an estimated 1.5 million domestic fires last year, resulting in more than 3,400 deaths.

Many of these deaths occurred in homes with no smoke detectors or no working smoke detectors.

When detectors fail, it's often because its batteries are dead or missing. Therefore, make a point to test your smoke detectors annually.

Here's how to do it:

Have somebody go to the farther point of the house from the detector
Push and hold the testing button for 5 seconds to activate the alarm
Confirm the alarm is audible by all parties

You should also buy smoke detector aerosol and spray it directly into the device. This will simulate a real fire. If the alarm doesn't sound, the smoke detector will fail when it's needed most. Replace the device immediately -- even if it beeps when you push the Test button.

Smoke detectors are inexpensive and essential. Make sure the devices in your home are working properly. Test them at least once per year.

How To Find Good Deals As The Buyers Market Comes To An End

Fri, 30 Oct 2009 07:45:00 -0700

At some point in their lives, every home buyer in America has wondered "Is now the best time to buy a home?" In this 3-minute video, NBC's The Today Show does a good job of answering the question.

The conclusion? Yes, but not if you're going to overpay.

The Buyers Market is ending, we learn, as home prices rise across most of the country. Pockets of opportunity remain, however, and the focused home buyer can still find a "good deal".

Some of the video's tips include:

On what types of homes can you get the best prices
What you can learn from looking in a seller's closet
How to identify a desperate seller

The piece also goes negative on short sales, noting the amount of time required to buy one. Short sales typically do take longer to close versus a "traditional" purchase, but that doesn't mean they should be avoided.

There's plenty of bargains in the short sale arena, too.

What The Media Missed In September's New Home Sales Report

Thu, 29 Oct 2009 07:45:00 -0700

Some days, newspaper headlines are a terrible place to get your real estate news.

Today is one of those days.

After the September New Home Sales report showed sales volume down from August, the mainstream media jumped on the story:

But the headlines miss the point, somewhat. Yes, home sales volume is important to housing, but it's not as important as home supply.

A deeper look at the New Home Sales data reveals an interesting comparison point:

New home sales volume fell 3.6%
The number of new homes available for sale fell 3.8%

In other words, sales outpaced supply -- a running theme this year and a positive signal for housing.

Since peaking in January 2009, the supply of newly-built homes has now dropped by 40 percent. The average sale price is up 15% over the same period.

This is why you can't get your real estate news from the headlines. You have to dig a little bit deeper to get the real story.

September's New Home Sales report was plenty strong. The housing market recovery continues.

Home Values In 95% Of Case-Shiller Markets Are Improving Year-To-Year

Wed, 28 Oct 2009 07:45:00 -0700

For August, the Case-Shiller Index showed annual home values improving across 19 of 20 U.S. markets. It's the first time in 3-plus years that the benchmark housing index has shown such strength.

According to a Case-Shiller Index spokesperson, "The rate of annual decline in home price values continues to improve."

It's yet another sign that housing may have already bottomed.

However, just because the Case-Shiller Index shows a stabilization in home values, that doesn't necessarily make it true. This is because real estate happens on the local level and the Case-Shiller Index is more "national". It tracks data in just 20 U.S. cities.

Homeowners everywhere else are unaccounted for.

Furthermore, even within the 20 tracked Case-Shiller markets, there's no allowance for the natural sub-markets that exist. Some neighborhoods under-perform and some neighborhoods out-perform.

Case-Shiller treats them all the same.

Despite its imperfections, though, the Case-Shiller Index remains a helpful, broader measurement of U.S. real estate. Economists believe that housing led the U.S. into the recession and they believe housing will lead us out, too.

If that's true, August's Case-Shiller data is another step in the right direction.

Falling Home Supplies Mean More Multiple-Offer Situations For Buyers

Tue, 27 Oct 2009 07:45:00 -0700

The national housing supply fell to a 2-year low last month, according to the National Association of Realtors�.

At the current sales pace, existing home inventories would sell out in 7.8 months -- 30 percent faster versus November 2008.

For a 10-month window, that's a major housing supply reduction and it helps to explain why multiple-offer situations have been so common lately.

Moreover, the same report from NAR showed sales activity reaching its highest point since July 2007, too.

If you're looking for evidence that the long-standing Buyers Market is ending, this month's Existing Home Sales report might be it.

Even median sales prices -- typically dragged lower by distressed and foreclosed properties -- declined at its slowest pace in a year. The market may have turned a corner.

Home prices are rooted in the basic economics of supply and demand.

When supply outweighs demand, home prices fall
When supply lags demand, home price rise

Since March 2009, the market has been moving in the right direction. Low mortgage rates, ample housing supply and a first-time home buyer tax credit fueled buy-side demand so that home prices are now rising in many U.S. markets.

If home supplies stay on this path into 2010, expect home prices to rise even more.

Powermat : The Wireless Battery Charger For Cell Phones

Mon, 26 Oct 2009 07:45:00 -0700

Tired of "wire clutter" where your mobile phones, MP3 players and gaming devices compete for outlet space?

The Powermat may be your solution.

The Powermat is a 12-inch long wireless battery charger that's conspicuously missing "plugs". Instead, it uses magnetic induction to safely recharge up to 3 devices at once.

Just place your phone(s) on the pad and they charge automatically.

The Powermat debuted at the 2009 Consumer Electronic Show and was reviewed in video. The reviewers had many positive comments on the Powermat, but highlighted some negatives aspects, too. Give a look and see what you think.

Powermat retails for $99 on Amazon.com and is usually shipped for free.

Government : Home Values Edged Lower In August

Fri, 23 Oct 2009 07:45:00 -0700

According to the government, home values edged lower last month.

The Federal Housing Finance Agency's Home Price Index report shows values down by 0.3 percent from the month prior -- the index's first down month since April.

The Home Price Index is based on the value of homes financed via Fannie Mae or Freddie Mac and, in this sense, the FHFA Home Price Index is more of a "national" real estate index than its private-sector cousin, the Case-Shiller Index.

But like the Case-Shiller, the HPI is as notable for what it specifically excludes as for what it includes. Most notably, the Home Price Index doesn't account for homes meeting any of the following descriptions:

Is considered new construction
Is a multi-unit property
Is financed by an entity other than Fannie Mae or Freddie Mac

Given the resurgence of FHA financing this year, this last exclusion is especially glaring. FHA represents about one-third of all mortgage loans in 2009.

Because of these exceptions, some analysts label the Home Price Index incomplete. The same could be said of every method of home valuation, however. Case-Shiller only collects data from 20 markets, for example.

In light of these shortcomings, therefore, what's most important is to recognize that both of the "popular" home valuation reports show similar patterns -- home prices have leveled and are showing signs of a rebound.

For a region-by-region breakdown of the Home Price Index, visit the FHFA website.

As Gas Prices Rise, Home Affordability Wanes

Thu, 22 Oct 2009 07:45:00 -0700

With crude oil at its highest levels since October 2008, retail gas is up 8 cents per gallon this week.

It's bad news for home buyers and mortgage rate shoppers. The same force that's driving oil higher is linked to rising mortgage rates.

We're talking about the weakening U.S. Dollar which is now at its worst levels versus the Euro in 15 months.

Crude oil is priced in U.S. dollars, by the barrel. When the dollar loses value, more of them are needed to buy the same barrel of oil. As a result, predictably, the price of crude oil goes up.

Now, there are other reasons why crude oil is rising, but the fading U.S. dollar is one of the major ones and it's why we're addressing it.

The dollar has a similar impact on mortgage rates.

Mortgage rates are based on the price of mortgage bonds that -- like crude oil -- are also denominated in dollars. As the dollar loses value, so do mortgage bonds. This causes demand for bonds to drop and prices on bonds to fall.

Because bond prices and bond rates move in opposite directions, mortgage rates rise and this is precisely what's happening on Wall Street today.

Since touching a 5-month low in early-October, mortgage rates have tacked on as much as 1/2 percent, depending on the product. Moreover, with the dollar showing no signs of a rebound, the upward pressure on rates should continue.

If you're trying to time the market bottom, you may have already missed it. Consider locking your mortgage rate before rates increase even more.

And your everyday signal that rates are rising? Just check your price at the pump. If gas prices are up, it's likely that mortgage rates are, too.

Healthy Home Tips -- Air Quality

Tue, 20 Oct 2009 23:01:00 -0700

When it comes to those in need of a new home interior or redesign, there are a few ideas and healthy home tips that should be taken into consideration. This post will focus mainly on air quality.

Hundreds of different indoor air pollutants have been identified by researchers. There is a short list of things we can do to keep contaminants out of our homes.

Here's how your family can enjoy a breath of fresh indoor air:

It may sound counterintuitive, but your air will be cleaner if you don't use air fresheners and room deodorizers, which typically fill your home with chemicals that simply cover up bad odors.
Don't use synthetic chemical cleaning products, which leave airborne micro-droplets behind as they're used. Make your own cleaners or opt for those that use non-toxic and naturally-derived ingredients.
When you clean, use a damp cloth that attracts and removes dust to avoid stirring contaminants back into the air.
Carpets and rugs tend to collect indoor pollutants. Vacuum these furnishings at least once a week, preferably with a filtering vacuum cleaner, and give them an occasional shampoo.
When you have an item cleaned by a conventional dry cleaner, dissipate lingering chemicals by removing it from the bag and airing it out in the garage or other exterior space before you bring it inside.
Buy furniture and furnishings made from solid wood and not plywood or pressed particleboard, which use glues that emit formaldehyde and other chemical fumes as they age.
Have your furnace, non-electric water heater, and/or wood stove inspected to make sure they're venting waste gases properly. Gas-burning ranges and stoves should also have some kind of working ventilation.
Dust mites, a key cause of allergies and asthma, thrive in warm, moist environments. Keeping your home's humidity level below 60% will keep their numbers low.
Ban pesticides, smoking, mothballs, and perfumes and colognes from your home. These are some of the biggest sources of indoor air pollution in the typical home.
Test your home for radon using a long-range test kit that checks air over the course of several seasons.
Get some houseplants, which act as natural air filters. Hard-working choices include Boston fern, areca palm, lady palm, bamboo palm, rubber plant, English ivy, ficus, and peace lily.
Last but not least, open your windows once in awhile and let fresh air in and rinse polluted air out. This is the single most effective strategy you can adopt. And it's the least expensive, too!

A great website and non-profit organization which promotes health is the Healthy Child Healthy World organization. (healthychild.org) Follow the link to recommended information and for a virtual example of items in your home which you can change or eliminate to make it more healthy. http://healthychild.org/live-healthy/health_ehome/

Housing Starts Post 8th Gain in 9 Months

Wed, 21 Oct 2009 07:45:00 -0700

Housing Starts on single-family homes gained last month, marking the 8th time that's happened this year.

A "Housing Start" is a home for which the foundation has been excavated and, considered alongside other key market metrics, September data suggests that the housing market stabilization is complete.

Momentum in housing is overwhelmingly positive:

Homes under contract are soaring
National home supplies are way down
Home values are up in a lot of markets

Despite the positive news, the press is calling September's Housing Starts data a "bummer". Citing a drop in monthly building permits, the media purports that housing will slow in the months ahead.

The conclusion may be right, but the rationale may be wrong.

The probable cause for fewer permits isn't that the housing market is overdone. It's that home builders are choosing to exercise caution given the pending expiration of the First-Time Home Buyer Tax Credit and a still-growing number of foreclosed homes.

It's unclear what housing demand will be beginning in December and the last present a builder wants for the holidays is an excess of inventory.

It makes sense that building permits are down, in other words.

Looking back at February of this year, there's a host of signs that housing is on the path to recovery. Now, that path won't be a straight line and there's bound to be setbacks, but September's Housing Starts is not one of them.

Housing Starts are up 40 percent on the year.