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Fears about the economy led to a stock market decline and pushed mortgage rates a little lower during the week. Even with Tuesday’s passage of the new $787 billion stimulus plan, economic growth forecasts from Wall Street economists and from the Fed were revised lower.

Wednesday, President Obama announced the $275 billion Homeowner Stability Initiative, which contained broad outlines of three major elements intended to help prevent foreclosures and falling home values. First, the government will make it easier for many borrowers who currently may not be able to refinance their loans to refinance. Only existing owner-occupied loans owned or guaranteed by Fannie Mae or Freddie Mac are eligible for consideration under the plan. The government estimates that 4 to 5 million borrowers will be eligible for this program. Details regarding qualification and procedures for this refinance program are expected to be released in coming weeks.

Second, the government will increase its commitment to Fannie Mae and Freddie Mac from $200 billion to $400 billion and will raise the portfolio size limits for the two firms by $50 billion each. In addition, the government pledged to continue to support purchases of mortgage-backed securities to help keep mortgage rates low.

The third program provides incentives for servicers to work with borrowers at imminent risk of default to modify the terms of the mortgage, bringing payments down to affordable levels. If successful, the government hopes to prevent an estimated 2 to 3 million foreclosures, which would keep these homes from adding to the inventories currently on the market.

The final week of February will reveal a number of important indicators of economic growth. Existing Home Sales and New Home Sales will be released on Wednesday and Thursday, respectively. Durable Orders will also come out on Thursday. Revisions to fourth quarter 2008 Gross Domestic Product (GDP) will be released on Friday, along with the Chicago PMI national manufacturing index. Consumer Sentiment and Consumer Confidence are on the schedule as well. Fed speakers, Treasury auctions, and new information about government programs also may have a significant impact on mortgage markets next week.

Copyright @ 2009 MBSQuoteline

Sincerely

Beverly-Hanks Mortgage Services Associates
For more information on all of our financing services or if you have any questions, call one of our professional associates today.

1-866-858-2257

Asheville Mortgage Professionals
Copyright @ 2009 MBSQuoteline

Government announcements dominated the financial news this week. Updates on two major programs both were favorable for mortgage markets, and mortgage rates fell modestly during the week.

The most highly anticipated news concerned Tuesday’s speech from Treasury Secretary Geithner on the financial institution assistance plan. This “Financial Stability Plan” involves multiple programs to remove bad assets from banks’ books and to support new lending. It also contains funds to help prevent foreclosures. Investors were sorely disappointed by the lack of details about how the plans would work, however, and they responded to the uncertainty by purchasing relatively safer assets. The stock market plunged, while Treasury and mortgage-backed security markets rallied, pushing rates lower. Geithner suggested that more information about a plan to purchase troubled assets and a comprehensive housing program will be released in the next few weeks.

Later in the week, the House and the Senate agreed on a compromise $789 billion fiscal stimulus plan, which is expected to pass within days. The Obama administration estimates that the plan will create 3.5 million jobs. Both the House and the Senate had passed versions which were larger than the final compromise plan, and the reduction in scope helped mortgage markets. A smaller plan means that the government will have to issue less debt. Unfortunately, one of the spending cuts in the final plan was a provision for a $15,000 homebuyer tax credit, which came with an estimated price tag of $35 billion. Instead, the government will leave in place an existing $8,000 tax credit, applicable to only first time homebuyers. The primary change to the tax credit is that it will no longer need to be repaid. The estimated cost of this $8,000 tax break is less than $3 billion.

Inflation data will highlight a full Economic Calendar next week. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Friday. CPI looks at the price change for those finished goods which are sold to consumers. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Thursday. Industrial Production, an important indicator of economic activity, and Housing Starts will be released on Wednesday. In addition, investors will continue to wait for details from the Treasury on the Financial Stability Plan. Mortgage markets will be closed on Monday in observance of Presidents Day.

Sincerely

Beverly-Hanks Mortgage Services Associates
For more information on all of our financing services or if you have any questions, call one of our professional associates today.

1-866-858-2257

Copyright @ 2009 MBSQuoteline

Lake Lure is a little gem of a place located southeast of Asheville, and east of Hendersonville. The name Lake Lure applies to both the lake and the town. We are located in the Hickory Nut Gorge, between the mountains. Many of you will have heard of Chimney Rock Park, located in the Gorge. Scenes from “The Last of the Mohicans” were filmed there. The park has recently become North Carolina’s largest state park and we are both proud and very pleased that over a thousand acres will be pristinely maintained for generations to come.

We are a small town wrapped around the lake that is our heart. The mountain views here are superb and the lake has been recognized as one of the most beautiful man-made lakes in the country. Our pace of life is, well, a bit slower than in the big city. For instance, if the ducks at the community pond decide to cross the road, traffic stops. We might wonder why they don’t simply fly across, but they choose to walk, and we accommodate them.

Early in the 20th century, Dr. Lucius Morse discovered our corner of western NC and became the driving force bringing development to the area. His vision brought in a hydroelectric power plant, and created both the lake with its nearly thirty miles of shoreline, and the town, incorporated in 1927. Today, the town of Lake Lure owns the lake which means it is its residents who control what happens to it. There is a strong focus on keeping the water sparkling clean and maintaining high water levels for recreational usage.

Chimney Rock Park offers miles of hiking trails, a 400 foot waterfall, and a great view of the entire region from its lookout atop The Rock. The 720-acre lake provides yet more recreation opportunities. Visitors can rent boats, take boat tours, or just relax on the town beach. Water skiing- but not jet skiing- is permitted. Town residents have free access to the beach and a chance to rent a boat slip at the marina. Local riding stables offer horseback riding. North Carolina is golfer’s paradise and Lake Lure is no exception. There’s the Dan Maples Championship Golf Course at Apple Valley, the beautiful Bald Mountain Golf Course, the Lake Lure Municipal Golf Course, and several other excellent courses nearby.

Getting hungry? Lake Lure offers both casual and fine dining. Don’t worry if you forgot to bring a jacket and tie, just make sure you have shoes on your feet. There’s also a dinner cruise available and both food and sunset views across the lake and gorge are an event not to be missed.

Visitors and vacationers can find B&Bs, motels, condos, and homes ranging from modest log cabins to luxury lakefront mansions to rent for the weekend or the summer.

From Lake Lure, you can easily explore Asheville, Hendersonville, and the area to the south, Polk County. Tryon offers steeplechase, fox hunting, and dressage events and is the site of the NC Blue Ridge BBQ Festival, home of the NC Championship Cook-Off. There’s a public marina at Lake Adger where the NC record-holder Musky, a 41 pounder, was caught. Saluda is another charming Polk County village to explore.

Should you decide to stay forever, if you want to find a second home, or a place to build, Beverly-Hank’s Lake Lure office is located across the road from the Lake Lure beach, next door to the 1927 Lake Lure Inn, in the Lake Lure Arcade Building. Come in and say hello. We’ll be happy to help you explore Lake Lure further.

Joelle van den Berg
Beverly-Hanks, Lake Lure
109 Arcade Building