We thought you would want to read this from a local Maui lender:
 

The current Government purchases of mortgage backed securities are likely to end soon; this is because the perception among economists is that the economy and the housing market are starting to improve.
As many of you know, the Government has been purchasing mortgage backed securities since the beginning of January.  Interest rates went down in December in anticipation of this taking place.  At that time, we discussed that these rates were unlikely to last because of the upward pressure on interest rates as the economy begins to stabilize.  Interest rates have increased about 1% over the past month.  If the Government wasn’t purchasing mortgages, it is estimated that rates would be at least 1% higher than they are now.
According to all our sources (which are many and we track them daily), the Government is unlikely to continue to purchase mortgages after December of this year.  The purchase program could also end abruptly (before December) if the economy stabilizes further, the housing market shows more signs of recovery or if there are any signs of inflation. 
Even if the Government purchases mortgages through December, loans would have to be closed by November 15th.   For a December Government purchase given the current 60-90 day escrows, properties would need to be in escrow by August to meet these windows.
As we have been telling our clients, NOW is the time to purchase and take advantage of the low rates, large selection and low purchase prices.  People who buy now will be considered geniuses in the years to come!
Hawaii’s Premiere Mortgage is both a banker & a broker with offices in Kihei, Wailea, Kahana & on Kauai to assist you and your clients.  Some realtors have found that providing rate flyers specific to a property, can help with marketing efforts for Open House Events; Please let us know if we can assist you by providing Flyers for your events or if we can assist you in any other way!
Mahalo & Aloha,
Tricia & the Premiere Mortgage Team
Tricia & the Premiere Mortgage Team

Please take 5 minutes to vote for the best restaurants, activities and specials Maui has to offer.  See link below, click right below the lead titles. 

 http://extras.mauinews.com/onlineform/

The bubble in the mortgage markets finally blew up this week.  After holding and holding, while the 10 yr note rate climbed, mortgage rates jumped to levels not seen in several months. Many analysts have been warning that the mortgage markets couldn’t hold on forever while treasury rates increased. Mortgage lenders became complacent with hedging risk, believing apparently that the $1.25T the Fed committed to buy, would keep mortgage rates from increasing.  It is finally hitting home that the Fed has a serious problem; the problem is how to keep mortgage rates down, the housing markets are the key to any economic recovery and one of the keys to getting the housing sector back on track is keeping mortgage rates affordable and low. It was widely thought that buying $1.25T of MBSs would do it. Not the case; we all know about the massive supply Treasury has to sell in the debt markets, as we have noted it is unlikely that can happen (raising $200B a month along the yield curve, not including T-bills under 1 yr) without higher rates and the potential of creating inflation fears.

Without lower mortgage rates the economy isn’t going to recover at the pace recent thoughts had developed. If housing and home prices are not stabilized there isn’t going to be much of a recovery based on the timeframe markets had been expecting. 

The market had been looking for a solid showing and while this was less impressive than the 2-yrs, that was also expected. The market had been looking for a draw of 2.33% plus and liked the lower yield. More Treasury borrowing tomorrow; $26B of 7 yr notes will complete this week’s $101B of borrowing. Markets will have two weeks to breathe before Treasury comes back with 3 yr, 10 yr and 30 yr bond auctions on June 9, 10, and 11. With this mornings jobless claims at 8:30 expected to be up 5K; and April durable goods orders (+0.5%). At 10:00 Apr new home sales are expected to be up 1.8%. The selling today adds to the technically oversold markets. 

Mortgage rates cannot stand against the increase in long term treasury rates. The spread between the 10 yr note and 30 yr mortgages came back in line two weeks ago as we reported, back to about 165 basis point from a high of 270 basis point six months ago.

BOTTOM LINE…if you are a home buyer looking to purchase in the bay area, your window of opportunity to get a super low rate may be closing, so act now.  If you are a home owner and have not refinanced into the low rates we have seen , you will want to act now! 

INFRASTRUCTURE PROJECTS

This website is for you to view where the money for capital improvements to Maui county will be going.  Track the projects for new school projects, airports and highways.

 go to:  hawaii.gov/ciphttp://hawaii.gov/gov/cip/maui/

IMPORTANT INFO FOR HOMEOWNERS ON MAUI!

yOU COULD BE IN A FLOOD ZONE, BE SURE TO CHECK NOW, YOU MIGHT BE SURPRISED.  SEE THE FOLLOWING PRESENTATION TO LEARN MORE ABOUT THE CHANGES:

 http://yourwebcast.com/ram/041709generalmeeting.htm.  The attached copy of our presentation may be easier to follow along with the video instead of the one imbedded in the webcast.

Our very own film festival is on its way!  Date set is June 17th, the 10th year anniversary.  Enjoy the latest films on the beach and golf courses of Wailea.  Simply one of the best events of the year.

Thank you Trish Morrison for the interesting articles you sent.  Below are some of the points from her latest newsletter:

Good news last week, as Housing Starts for February came in better than expected and actually increased for the first time in eight months. In addition, Fed Chairman Bernanke stated the recession should end in 2009 and that he is confident of the long-term outlook for the US economy.

Last week, the Fed saw their regularly scheduled meeting as a window of opportunity to make a blockbuster announcement.  As mentioned earlier, on Wednesday the Fed announced that over the course of 2009, they will purchase an additional $750 Billion of Mortgage Backed Securities, as well as $300 Billion in long-term Treasuries, primarily to help shore up the housing market and keep home loan rates low. On the announcement, Bonds exploded higher, leaving Bond prices within whiskers of the best levels ever. 

However, it’s important to understand that while their actions may keep a lid on rates moving higher, they may not cause them to move dramatically lower… more on this in the Mortgage Market View article below. 

Additionally, due to many understaffed lenders and investors currently working at maximum capacity, we could once again see that improvements in Bond pricing may not all be passed through to our rate sheets. 

Another factor that could impact whether Bonds and rates see significant improvement ahead are concerns of future inflation - the arch enemy of Bonds and home loan rates - brought on by all the recent aggressive moves by the Fed. While we know there is little inflation at the present time, the chatter of future inflation could have a negative impact on Bonds and home loan rates, or at least stifle any improvements. 

Although the media is already spinning it differently, this is not a time to stay on the fence, hoping and waiting for lower rates. Home loan rates remain within inches of all-time historic lows, but may not necessarily move significantly lower based on this purchasing plan - waiting is a very risky move. 

The Federal Reserve just announced they will buy up to $300B in Treasury Bonds (see attached).  As a result, we feel interest rates will move lower and recommend the following:
1)      YOUR TIME TO BUY PROPERTY IS NOW!  Phenominal property values  are there for your easy picking.
2)      Whether you are buying or refinancing, it is really important to Get in “Ready Position” by choosing a lender and preparing any documents they deem necessary to be in “ready position” at the moment rates are lower
3)      “Watch the Market” for the best interest rates and then “Lock” when rates actually drop which sometimes can be for a very short period of time.  Be sure the lender of your choice is prepared too and has your interest for the best interest rate as their priority.
If you would like a lender list of agents recommended to us by our clients, we would be happy to email you one. 
 

                              www.MauiRealEstate.NET
                              dad@MauiRealEstate.net

                              808-879-3667

Happy St. Patty’s Day to you.  May the luck of the Irish be with you today and always!!!!! 

Aloha
Bob, Donna,Rorie, and Clint

The Hansen Ohana

We thought you would like to know:

WEBSITE CENTRALIIZED PERMIT AND DEVELOPMENT APPLICATIONS ADDED

The County of Maui announced today the recent addition of an online, centralized listing of permit and development applications to assist the public in accessing these services. A total of 63 permit applications are now available online, with most permits having a brief description of the purpose, application procedure, approving agencies, processing time, duration of approval, fees, related forms, resources and contact information. The web link to the new section is www.mauicounty.gov/permitinfo; the section is also cross-referenced by links under the tabs “For Residents,” “For Business,” “What’s New,” and corresponding department and Boards and Commissions webpages. 

The new online permit repository contains information on the various County applications and permits available including construction applications and permits; development applications, permits, reviews and variances; hazardous materials and firecracker permits; wastewater discharge and hauler permits. The online service also allows the public to check the status of a permit, and to search for the database of current permits by type, number, permit/project name, applicant name, status, location, County department and a number of other variables.