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Good news for home sales in Illinois!

The Illinois Association of Realtors ® last week published a report stating that Illinois home sales in December had their fourth consecutive monthly gain! That is something to celebrate.

State wide total home sales, (includes condominiums) were up 20.1% in December! 
Here are two things I find very impressive with these numbers:
    1. The first government incentive tax credit came to a close at the end of November. It wasn't until November 6th that the new government incentive program was even announced. That means new buyers didn't have a whole lot of time to find a home and close in December. Otherwise these December numbers may have been even stronger.
    2. Nationwide the numbers were not as good. U.S. sales were down 16.7% in December and yet in Illinois we were up 20.1%!!!.

Here is some more good news within the report. For the year home sales were down only 1.5% compared to 2008.
That's 107,501 home sold.
If you own a home in the Chicagoland area home sales were up for the 6th consecutive month! For the month of December sales were up 33.1% to 5,752 homes sold.

Home prices were still under pressure however, dropping in Chicagoland area about 18.3% compared to 2008. Many of you have experienced the disappointment and pain, trying to refinance but not being able to proceed due to the low appraised values of your homes.

By the way, for the previous month, November, sales were up 64.00% Statewide and 71.6% in Chicagoland!

So what does that mean? The housing market in Illinois seems to be rebounding faster than most regions in the country.
Interest rates are still very low. The $8,000 Tax Credit has been extended though April of 2010 and this program has been expanded to include repeat buyers as well if they meet certain criteria. Call my office at 847 592-9215 if you would like more information on this.

Let's spread the good news! This is still one of the best real estate buying opportunities our generation has ever seen. Make sure however you count you cost carefully before you jump in. My staff and I would be happy to help you with this as well.

Have a great week!
Make today and each day a masterpiece!

John Santorineos


Remember, whether you are buying or refinancing, our licensed professionals at
www.AboutHomeMortgages.com want to assist you with securing your next mortgage.

Get your Free Interest Rate Quote Now!


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Why so much focus on negative economic news?

Have you ever wondered what impact negative news has on people?
One thing for sure, it is not positive. Reporting more and more negative news about the housing market will certainly not help our economy. We have been bombarded with negative economic news for about 2 years or so now. It seems that negativity, breeds negativity. I like to think that a glass is half full. I like to look for the positive news within an article even though the headline may be negative.

Let me give you an example.  At the end of November, a number of articles were published stating that about 23% of all households are "underwater". However, as you read the article, there is some very good news within it. It stated that according the Census Bureau,  nearly 24 million owner-occupied homes don't have any mortgage. Well, that's big news! That is worth writing an article about. That gives the US housing market a lot more stability than most folks listening to and reading the news know. Were you aware that so many homes have no mortgage? I have read reports from various sources stating that we have 76,000,000 owner occupied homes in the US. If 24 million don't have a mortgage that is 31.6% of all owner occupied homes! These homes provide a solid foundation of stability to our economy. Once you put that number in the mix, then only about 14% of owner occupied homes are under water, not 23%.

Here is one more example of good news within another article that featured this same story.  This article mentions that "the majority of underwater mortgages are heavily concentrated in five states...Nevada, Arizona, Florida, Michigan and California." So what's some good news here? If you live in one of these states, not much, but if you live in any of the other 45 states, things are not nearly as bad as that 23% number that is featured in the article.
 
I'm certainly not saying that things are good. I'm just saying that I believe things are not as bad as most consumers have been led to believe. If you are a journalist, how about writing more of the positives regarding the US economy. How about featuring more stories of the approximately 90% of US homeowners that pay their mortgage on time or have no mortgage!

Till next time, make today an amazing day! Focus on the good. See the good. Inspire good.

John Santorineos



Remember, whether you are buying or refinancing, our licensed professionals at
www.AboutHomeMortgages.com want to assist you with securing your next mortgage.

Get your Free Interest Rate Quote Now!

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What will happen to mortgage interest rates in 2010?

Obviously no one knows for certain, but based on a number of factors that we know today, most likely rates will slowly push higher in 2010.

Here's what we know:

The Federal Reserve has thus far purchased $1.137 trillion of MBS. (Mortgage Backed Securities). They promised to buy $1.25 trillion. This was a good decision I believe that the Fed made last year. The Fed started this program to drive down the interest rates. They successfully brought the rates from about 6.00% all the way down to the historic low of 4.75% for a 30 year fixed rate. However, they now have approximately another $113 billion of purchases left. A few months ago the Fed announced this program would end by the end of March of 2010.  If there are no changes, that means the Fed will be purchasing about $11 billion of MBS for the next 10 weeks. If indeed they discontinue this program, once they are no longer buying, mortgage rates will begin to go up. Will they go back up to where they were prior to the Fed program? We will have to wait and see.

Another factor that may influence the interest rates to go up is inflation. The last couple of years inflation has been low due to the severe problems with the economy. However, inflation picked up a little towards the end of 2009. The Fed closely looks at the monthly Consumer Price Index (CPI). Last month that reading came in at a tame 0.1% rise. Year over year in 2009, the CPI number was 2.7%. Even tamer though was the Core CPI. This number takes out the volatile food and energy swings. That number for the entire 2009 was an even lower 1.8%. The Fed has a comfort level between 1-2%. If we start seeing some stronger inflation numbers in 2010, most likely this may mean the Fed will start raising the rates to fight inflation. So this may add some additional pressure for the rates to go higher later in the year.

One last area that could put pressure on the rates is the stock market. The Dow closed on Friday at 10,610. A number of economists are predicting the DOW will continue to rise. This is creating competition for fixed rate investments like MBS. Individuals and organizations have increased their comfort level for risk again. Instead of buying treasuries, bonds or Mortgage Backed Securities, the stock market seems to be a wiser choice for many right now. If the stock market continues to rise, there is less money buying fixed securities,which can cause the rates to go up.


How does this affect you?

Hopefully you have not been waiting to refinance your existing home. If you have, don't wait any longer. It seems to be just a matter of time before the rates begin to go up some.

If you are in the market to purchase your home, even if the rates were to rise a little, you will probably look back in a few years grateful for the low interest rate that you got and also thankful that you bought your place before property values begin their next bull run.

Here is a little quote I hope you find encouraging: "Control what you can control and forget the rest!"  
Remember, we can control ourselves, our behaviors and our activities. The outcome of events is out of our control.

Till next time, have an amazing week!

John Santorineos



Remember, whether you are buying or refinancing, our licensed professionals at
www.AboutHomeMortgages.com want to assist you with securing your next mortgage.

Get your Free Interest Rate Quote Now!





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Is Now a Good Time to Buy Real Estate?

Where are the buyers? It seems that buyers like buying when it is a seller's market. When prices are going up quickly, three maybe four buyers may line up to make offers on a property sometimes thousands above asking price. If you like buying high, then now is not a good time for you to buy.

Here are two great reasons to buy right now: Number 1: Interest rates are now near historic lows for a 30 year fixed rate. That means, that the home that you may have wanted, is now more affordable than ever. Number 2: It is a buyer's market. Prices are at the lowest level in years and most sellers are willing to negotiate.

Give this a
 thought: Can one successfully time the stock market and hit it right at the bottom? That's nearly impossible. Same with real estate. Trying to hit the very bottom of the market may not be a wise thing.  When more buyers realize that right now is an amazing opportunity to buy a home, asking prices will jump up quicker than even the experts may think is possible.

Here is a quote to make you think about today's market: "A crisis is a terrible thing to waste." 

Don't waste this historic buying opportunity! 

Remember, whether you are buying or refinancing, our licensed professionals at www.AboutHomeMortgages.com want
to assist you with securing your next mortgage.

Get your Free Interest Rate Quote Now!



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