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A Simple Explanation Of The Federal Reserve Statement on September 23

FOMC Announcement September 23 2009The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.

It also reiterated plans to support the mortgage market to the tune of $1.5 trillion.

In its press release, the FOMC noted that the U.S. economy is “picking up following its severe downturn” and that financial markets have “improved further”.

It’s the second consecutive post-FOMC statement in which the Fed appears somewhat optimistic — a signal that the recession will end soon, or has already ended.

That said, the economy still has some soft spots and the Fed made a point to single them out.  Each poses a distinct threat to economic recovery.

  1. Ongoing job losses
  2. Sluggish income growth
  3. Tight credit conditions

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.

However, the FOMC changed its timeframe on the mortgage-backed bond buys, extending its deadline to March 2010.  This move should help the Fed keep mortgage rates in the Dayton, Ohio area from rising too high as the economic expansion takes hold.

Market reaction to the Fed’s press release is positive.  After an early day sell-off that drove rates higher by about a quarter-percent, most of the pressure is easing.  Pricing is worse on the day overall, but well off its lows.

The FOMC’s next scheduled meeting is November 3-4, 2009.


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Posted on September 23rd, 2009 by Mark Ryan

Want To Know Why Dayton Ohio Mortgage Rates Are Up Over 1.125% In 10 Days?

Non-Farm Payroll Report June 2009

Mortgage rates in Dayton and the nation are on the move…

Since Memorial Day, conforming mortgage rates have jumped by more than 1.125 percent, adding thousands of dollars to the annual cost of home buying a home in Dayton or any of the surrounding areas.  That is really not what we need in today’s challenging market.

To the casual observer, the moves may seem random or just more of the up and down we may have come to expect.  There’s a reason this is happening, however.

  • It starts with inflation.
  • As an economic force, inflation erodes the value of the U.S. Dollar.  Left unchecked, it drives up the Cost of Living as each dollar “buys less” at the supermarket, gas station, or anywhere else.
  • But with respect to mortgage rates and what you will have to pay when you buy a home in the Dayton Ohio area, inflation’s impact is more immediate.  Because inflation devalues the dollar over the long-term, it renders long-term mortgage bonds a less attractive investment for traders.
  • If bond investors are repaid in U.S. Dollars, after all, it would make the investment worth less if the dollar is in an inflationary free fall.
  • Stay with me here… I know it is boring but if you are thinking of buying a home in Dayton or even selling a home in Dayton Ohio metro area this is stuff that impacts what you can afford to buy and or what your home may be worth…
  • Therefore, in situations when inflation is likely to present, we find that traders often sell out of their mortgage bond positions which, in turn, drives down the bond prices.  Then, because bond yields move in the opposite direction of bond prices, rising rates are the inevitable result.

Lately, Wall Street is fearing inflation for a number of reasons:

  1. Job losses are slowing, adding to consumer spending expectations
  2. Gas prices have risen 41 days in a row
  3. The federal government is increasing the money supply

These 3 factors — plus a few others — are all coming to a head around the same time and traders are getting defensive with their portfolios.  As a result, they’re selling their mortgage bond positions and it’s driving mortgage rates higher for Dayton, Ohio home buyers.

Rates may continue to trek toward 7 percent through July and August, or they may retreat toward 5 percent.  We can’t know for sure.  What we can know, though, is that volatility in rates should continue until the economic picture gets more clear. That could be next week, or next year.

For now, be ready to lock at a moment’s notice.  Mortgage rates are changing quickly.

So, if your loan officer says you may want to lock… consider the risks of not doing just that…


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Posted on June 8th, 2009 by Mark Ryan

Buying a HUD house in Dayton Ohio

Thinking of buying a HUD house?

Dayton Ohio Foreclosure

Dayton, Ohio real estate can be a great buy…

If you are looking to buy a home in the greater Dayton Ohio area then buying a HUD home or foreclosure may be something you want to consider.  This is not something that you should do without thinking it through before you buy however.  Buying a HUD home or foreclosure is not something that you should just wake up on day and say I’m going to buy a HUD home or foreclosure in the Dayton area today… Buying a foreclosure or HUD house is different than buying a “regular” home…

Pro’s of buying a HUD house or Bank owned / REO in the Dayton area.

  • You can save money on the purchase price.
  • Wait… I’m still thinking….
  • Yea… guess that’s about it???

Con’s of buying a HUD house in the Dayton area.


  • Most likely the house will need some work and repair before you will want to move in.
  • The process is more complicated and confusing then a “regular” deal…
  • You may have to pay to have the house de-winterize and re-winterized to do inspections.
  • You may have to get the utilities turned on at your expense to do inspections.  Generally HUD will not make repairs that are discovered by your inspections.
  • There can be title issues that will delay closing.

So, should you buy a HUD house in the Dayton area at all?

Well, I think you should consider buying a HUD house or foreclosure if you are looking to buy a house in the Dayton area.  They can be a great deal.  What we tell our clients is that when dealing with HUD and bank owned/REO/foreclosures is that they are most likely going to get a deal… with that deal comes headache…  The bank or the government does NOT care about your deadlines… They will however penalize you if you miss one of their deadlines…

So, yes buy one but go into it with YOUR eyes open… understand that with a “deal” comes some trouble too.

Good luck and remember we are certified experts in dealing with HUD and bank owned homes or REO.  Please feel free to call us for help.  We are happy to work with you.

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Posted on March 13th, 2009 by Mark Ryan

Kettering HUD owned home… great deal!

HUD Home for Sale in Kettering… just one of many great deals.

Kettering HUD home
Kettering HUD home

Nice Kettering, Ohio home for sale.   Features include a gas fireplace, skylights, and cathedral ceilings. The kitchen offers a stove, dishwasher, and garbage disposal. In the master bedroom you will find a sitting area and walk-in closet.  Situated on a cul-de-sac call now… great deal…

Are you interested in this Kettering Ohio HUD home home or other foreclosed homes?  We would love to help you bid on this Kettering HUD home, other REO properties or foreclosed homes.  If you would like to see more information on this Kettering HUD home follow this link.  Kettering HUD home

Price: $140,000
Appraisal Date: 12/04/08
Bed/Bath: 3/1.5
Rooms: 7
Units: 1
Sqft: 1,360
Year: 2002
Type: Detached
FHA Financing: Insured with Repair Escrow (IE)
203K Eligible: Yes

Kettering HUD home

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Posted on January 2nd, 2009 by Mark Ryan

Dayton Ohio Homes for Sale… What About a Foreclosure?

Not all Dayton Ohio Real Estate Buyers want a Foreclosure


dayton ohio real estate foreclsoures


Real Estate research is in… recently released s survey showing that most Americans are uncomfortable with the idea of buying a foreclosed house. Research showed that:

  • About half of the home buyers would consider buying a foreclosure home.
  • Of those 2/3 of them conceded that there were “negative aspects” related in a foreclosure purchase.
  • Concerns of Dayton Ohio real estate home buyers could include: hidden costs, possibility the value with decline and others.

What else could this survey tell us about Dayton Ohio real estate home buyers? 

  • Men are more likely to buy a foreclosure than women (57% vs. 51%)
  • Young buyers (18-34) looking at Dayton Ohio homes for sale are more likely to buy a foreclosure home than older adults 55 and older (69% vs. 32%)
  • 20% of the home buyers surveyed said that having a personal connection to the previous home owners of the foreclosure home would be a negative aspect.


Foreclosure vs. Short Sale… pros/cons?

So if you are searching for Dayton Ohio homes for sale and may want to consider a foreclosure home you should consider a short sale.  Short sales are also know as pre foreclosure homes.  That is exactly what they are… pre foreclosure.  When you buy Dayton Ohio real estate that is a short sale you get the home BEFORE the bank.  You get a deal and the home owner avoids foreclosure.  You also avoid many of the bad points to buying a foreclosure stated above. 

Think you may want to search Dayton homes for sale looking for a short sale?  If so, you need a Dayton Ohio real estate EXPERT that really understands short sales.  There are many unusual steps in the process of buying a short sale.  Not all Dayton Ohio real estate transactions are the same that is for sure… and short sales are certainly one of the exceptions.

Contact us now if you have questions on the process or also check out Dayton Ohio real estate short sale experts




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Posted on August 18th, 2008 by Mark Ryan