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.

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…

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.

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

1568 DODDINGTON RD, DAYTON OH 45409 (MONTGOMERY county)
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

]]> http://daytonohiorealestateandmortgages.com/2009/01/02/kettering-hud-owned-home-great-deal/feed/ 0 http://daytonohiorealestateandmortgages.com/2008/08/18/dayton-ohio-homes-for-sale-what-about-a-foreclosure/ http://daytonohiorealestateandmortgages.com/2008/08/18/dayton-ohio-homes-for-sale-what-about-a-foreclosure/#comments Tue, 19 Aug 2008 07:54:44 +0000 markryan http://daytonohiorealestateandmortgages.realestatetomato.com/2008/08/18/dayton-ohio-homes-for-sale-what-about-a-foreclosure/ Not all Dayton Ohio Real Estate Buyers want a Foreclosure

Real Estate research is in…

Trulia.com 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

About the new Dayton Ohio Real Estate Community

• Washington Township location
• Centerville School System
• 277 home sites
• Over 30 acres of green space and lakes
• Community center with open air clubhouse, pool, kiddie pool and more.
• Hiker/Biker trails connect neighborhoods.
• Outstanding landscaping, tree lined streets, themed by neighborhood section, vintage lighting for streets

Want more spceific neighborhood info or just have questions?

Who are the builders for Trails of Saddle Creek?

• R.A. Rhoads Custom Homes
• Zicka Walker Homes
• M.J. Coates Homes
• Traditional Custom Home Builders
• Tera Builders
• Homes by Bill Simms
• Tom Peebles Builders
• Dungan-Dunnington Custom Home

Want more info on area home builders?  Feel free to contact us and we will be happy to discuss building a new home and go over the builder options and the whole process with you.  At no cost to you at all…  Also consider visiting http://www.newhomesofdayton.com/ for the Dayton area home builders association.

Trails of Saddle Creek Neighborhoods/Sections

• The Ridings: Manor Homes priced from $750,000 to $2,000,000
• The Trails:  Estate Homes priced from $500,000 to $800,000
• The Paddocks:  Club homes priced from $500,000 to $800,000
• The Carriages:  Villa Homes priced from $350,000 to $600,000

General Dayton Ohio Real Estate Needs?

I really love the Trails of Saddle Creek for it’s beautiful home sites, quality builders, great location and more.  But, I know it is not right for everyone or you may just want to get general information on Centerville Homes for sale, Washington Twp / Centerville Ohio real estate, School info, anything…  We have an extensive relocation package that we are happy to offer home buyers looking to move into the Greater Dayton Ohio Real Estate market.  We can offer the items listed below, as well as, just about anyting you could want or need.  We are here as your personal Dayton Ohio Real Estate Consigier.

• Centerville Ohio School reports, or any Dayton area school system.
• Centerville Ohio real estate / community information.
• Ability to compare area communities.
• Specific neighborhood “snapshots” with market trends, pricing, etc.
• Area maps.
• Builder information.
• New construction community information.
• Customizable home search tools that YOU can control.  Start your Dayton Ohio Real Estate home search now…
• Crime statistics.
• Economic, education and other demographic information.

This is just a sample of some of the free information we are happy to provide to you as not cost or obligation.  We know from experience that once home buyers begin working with the Mark Ryan Group… they simply LOVE us.  We are here to by your Dayton Ohio Real Estate Experts.

I often get question on Dayton Ohio real estate related topics and from time to time I like to answer them here.  This helps buyers of Dayton Ohio homes for sale or owners attempting to sell Dayton Ohio real estate advice. 

So, what is a Dayton Ohio Real Estate FIXTURE… that is the question.

• We had a purchase agreement signed on a home and later found out that
  the basketball goal on the driveway was not included as it was not
  listed. I had assumed that since the basketball post was bolted to the
  base plate and foundation, there was no question about it not being a
  part of the house. What is the answer?

So, lets set the stage here..

So, which of these to basketball hoops stay with the Dayton OH homes for sale?  Answer… the one on the left does NOT stay and the one on the right does.  Maybe NOT exactly for the reason you think… The one on the left goes because it is portable, unless the real estate contract says it stays.  The one on the right stays since it is attached to the ground….  Why else??? 

Well you see if something basically becomes a part of the Dayton Ohio  real estate it is a fixture and stays.  Check out the photo… notice that the ground has been turned into a basketball court and would not make any since without the hoop… so even if you had the portable hoop from the left there it would be a Fixture.  So when you are shopping Dayton Ohio homes for sale keep this in mind.

Here can be one rule of thumb…

If is is nailed down it stays… So DON’T do this… 

What does it all mean???

For those that don’t know there was a new law passed on July 30th that will impact homes for sale in Dayton Ohio and how home buyers shop for and purchase Dayton Ohio Real Estate for sale. 

Summary of provisions for Dayton OH Real Estate:

1. Reform of GSE’s
   1. That’s Freddie Mac and Fannie Mae that you may have heard of…
2. FHA Reform
3. Home buyer Tax Credit
4. FHA Foreclosure Rescue (Dayton Ohio real estate can sure use this) more Foreclosure help
5. Seller funded down payment assistance programs
   1. Hint… they are taking these away and Dayton OH real estate did not need that…
6. VA loan limits
7. Risk based pricing for mortgage loans
8. GSE Stabilization
9. Mortgage revenue bond authority
   1. to help refinance subprime mortgages
   2. This is again something that Dayton OH real estate can use.
10. National affordable housing trust fund
11. CDBG Funding
    1. Funding to help revitalize communities by purchasing foreclosed homes
12. LIHTC (low income housing tax credit)
13. Loan originator requirements
    1. Dayton Ohio and Ohio in general already had strong licensing requirements for loan officers

KEY points for Dayton Ohio Real Estate:

1. FHA reform…
   • Looking for Dayton homes for sale and want to know how much you can get a mortgage loan for?  Well it depends on which greater Dayton Ohio Real Estate area you are looking to buy a home in.
     • Montgomery county – $271,050 max mortgage loan amt.
     • Warren county – $270,000 max mortgage loan amt.
     • Greene county – $271,050 max mortgage loan amt.
     • Miami county – $271,050 max mortgage loan amt.
     • Want to know limits for areas other then Dayton Ohio real estate?  Click Here  Mortgage loan limits
2. Home buyer tax credit…
   • This can be a huge benefit to Dayton Ohio real estate buyers.
   • As long as you are a Dayton OH real estate buyer you qualify (there are income restrictions…)
   • When you buy, on your next tax return you will GET up to a $7500 credit… that means even if you would not pay taxes or would be getting a refund… you still can get $7500 just for buying a Dayton Ohio homes for sale…
   • There are more details but this gives you the idea…
3. Seller funded down payment assistance programs
   • This one really hurts Dayton OH real estate. 
   • If you have  Dayton Ohio homes for sale this is going to take Dayton home buyers out of the market as they will not have the downpayment needed to buy your home.
   • If you are looking for  Dayton OH homes for sale you have until October 1st to find the right Dayton OH homes for sale and buy it…
4. Risk based pricing
   • This will put a delay on FHA using risk based pricing from Oct. 2008 to Sept. 2009
   • This could be good for Dayton OH home buyers with bad or not so great credit
   • This really makes no since as this whole law is to help dig us out of the sub prime mortgage troubles and the days of too easy credit… so now the government is just making the same bad decisions???

There is just a lot to learn about this and I would suggest you discuss all the many points and how they impact Dayton Ohio real estate and your ability to sell or buy Dayton Ohio homes for sale.  If you would like to search Dayton Homes for sale you can click the link at the top of the page… or if you want to get an idea what you Dayton OH real estate may sell for then click What is my Dayton OH home worth here or at the top of the page.

Overall I think you will find that this new law is good for Dayton OH real estate and the ability to sell Dayton Ohio homes for sale.

You can pick a great house…

Here is the reality of the current Dayton Ohio Real Estate market.

• If you buy today there is a good chance it will be less a year from now.
• There is an incredible selection of Dayton homes for sale available now.
• Mortgage rates are still at all record lows.
• This is the best buyers market in decades.

So, if you are considering buying Dayton Real Estate
this is a great time.  You may be tempted by the information above to
try and wait till the “bottom” of the market.  Sounds like a good plan
on the surface but what are the possible downfalls?

• It is very hard to time the “bottom” of the market and you just my miss it…
• It is even more likely that you will miss out on the right home for you…
• Even more likely… that mortgage rates in the Dayton Ohio Real Estate market will increase.
• With increased mortgage rates comes less buying power.
  • Follow this example.
    • You qualify today to purchase a $150,000 home at 6.25%
    • If mortgage rates increase to just 7% in the next year.
    • Then you would only qualify for about $138,000 home.
    • That is about an 8% drop in your buying power…
    • Dayton homes for sale may decrease in value 1-5% at most in the next year.
  • So, you are WAY ahead to buy Dayton real estate now rather than wait.

I know this
is not what you may hear from your friend or on the news.  feel free to
call and we can discuss this even more if you like.  Check out all the Dayton homes for sale here…

There are a lot of homes for sale in Dayton Ohio area.  So if you are looking for homes for sale in Dayton then the selection is great. 

What about Dayton Ohio area mortgage rates? Here is how rates work…

• The Federal Reserve actually has nothing to do with mortgage rates directly.
• Mortgage rates more closely follow the bond market and the expectations for inflation.
• Rates now vary from about 6% to 6.5% for a 30 year fixed rate mortgage.
• The expectation is that by next year rates will be around 7%.

That means that there is a very REAL penalty for waiting… it
sounds good but waiting could cost you thousands in higher mortgage
payments… Dayton Ohio real estate is a great deal right now.

Check out my post on Rules for buying Dayton Homes for sale for other things to consider when looking for Dayton homes for sale or buying Dayton Ohio area real estate.

Increased mortgage rates = less home buying power

• Consider this example
  • If you can buy a $150,000 home today at 6.25%
  • If mortgage rates go up to 7% in the next year…
  • Then you could only buy a Dayton homes for sale of about $138,000
  • That’s almost an 8% drop in the price of home you can buy.

So if you wait prices may come down but if rates go up… you should
buy NOW even if home prices continue to drop… which I think they
WILL… they wont drop more than the 8% you stand to loose in waiting…

So start looking right now at all the great deals that are available in Dayton Real Estate.  You can search every home listed for sale in Dayton real estate
right here on my site… Just click the Search Dayton Homes for sale
button at the top of the page and you are started on you way to buying
a Dayton homes for sale.