Deanna Valeo

Mortgage rates ended the week at the lowest levels since May October 5, 2009

After several weeks of economic announcements generally exceeding forecasts, weaker than expected labor and manufacturing data, along with comforting comments from Fed officials about inflation, helped mortgage markets this week. Reacting to the data, investors shifted funds out of the stock market and into bond markets, and mortgage rates ended the week at the lowest levels since May.

Right now there are exceptional spreads between 30YR Fixed and all ARMs there is a full 1% difference in a 7/1 ARM - it may make sense if the time line for ownership is shorter to go this direction .vs. a 30YR.  Ask us to run a cash flow comparison.

The labor market is at it's weakest point since 1983 with reported unemployment at 9.8% - an economist once told me that the true unemployment rate is usually 5% higher (this includes those who do not report and have quit looking for a job)... while this seems gloomy a very interesting report was issued by several economist for money managers believing that higher earnings will lead to a turn-around where companies will begin adding jobs in Q1 2010.  While this is still a few months away we are getting toward a bottom.  While I personally believe the growth upward will be slow it will be good for home sales.

At this point there is still no news on a extension of the first time home buyer tax credit.  While "experts" remained split - I seem to go with those who say that the Fed needs to raise capital and not give more away.  While this makes fiscal sense - politics does not always make sense. 

Keeping with our theme of counting down business days until the end of the tax credit there are only 38 business days until the credit expires - we are getting very close to the deadline for buyers.  By the way banks are closed next Monday Oct 12th for Columbus day and no one can fund that day.  I did count this as a day in my business day

For those wishing to use House Charlotte or NC Bond for down payment assistance, this is even closer, as many of the first time home buyer classes are full for two weeks out...  We may be able to work a miracle but your buyer must have already gotten their home buyer training certificate.  MCC is always a good choice for buyers with funds they can take advantage of good rates and get additional tax credits - up to $2000 per year or 20% of interested expense paid whichever is higher.

On a personal note I do hope that the government does extend the tax credit I am being told we will not know until November.  I know you who have first time home buyer clients' and friends are trying to get them off the sidelines now.  Let's get the contracts in so we can get them closed on time.

Have a great week and remember we are here for you.

The Valeo-Croy Team

Deanna, Todd and Ryan

NMLO license #91421, #91428 and # 154891

Equal Housing Lender



Charlotte-Mecklenburg Schools New-student enrollment opening for 2010-2011 school year October 11, 2009

New-student enrollment opening for 2010-2011 school year - From the CMS Web Site

Families may enroll children beginning Monday, Oct. 5. 

Charlotte-Mecklenburg Schools have only been open for 27 days, but parents can already look ahead to the 2010-2011 school year. New students may begin enrolling in CMS on Monday, Oct. 5.

New-student enrollment is for children entering kindergarten or older students who will be new to Charlotte-Mecklenburg Schools. Students must be enrolled by Dec. 14, 2009, to be eligible for the first magnet lottery, which will be open from Jan. 8 - Feb. 8, 2010. Families who are enrolled by the Dec. 14 deadline will receive a personalized magnet-lottery instruction sheet in the mail during the first week of January. Families who plan to send their child to their assigned home school do not have to register by Dec. 14, but are encouraged to enroll as soon as possible.

Children must be five years old on or before Aug. 31, 2010, to be considered for kindergarten. Students must be four years old on or before Aug. 31, 2010, to be considered for pre-kindergarten. Pre-kindergarten screening will begin December 1, 2009.

In order to enroll students in CMS, families must provide three documents to show proof of residency. There are three categories of acceptable documents; parents must submit one document from each category. Category one includes a copy of a lease and record of the most recent rent payment, or a record of the most recent mortgage payment. Category two includes a utility bill dated within the past 30 days, and category three includes a valid driver license or vehicle tax bill. Parents or guardians must fill out a Safe Schools Enrollment Declaration per North Carolina law. The declaration states whether the student is under suspension or expulsion from any public or private school, or whether the student has been convicted of a felony.

In addition to these forms, parents must also provide an official birth certificate (with seal) and a copy of the student's current immunization record. New student-enrollment forms are available (, at any school, learning community office, or the Family Application Center (700 Marsh Road). For more information, please call the Family Application Center at 980-343-5335 or e-mail .

Higher stock market results = higher interest rates. October 20, 2009

“I never worry about action, but only about inaction” ~ Winston Churchill
Rates ended last week a bit higher from the week before falling in line with the previously reported correlation between higher stock market results = higher interest rates.

The following outlines last week’s economic announcements that fed the stock market higher. 
Earning reports were for the most part higher than expectations – these had the most influence:
  1. Retail sales were up .5% excluding cars (down 1.5% with car sales included - car sales are down 10.4%)
  2. Business inventories are down to all time lows. This gives less inventory to dump meaning retail prices may finally be stabilizing (this will lead to higher earning opportunities as the market recovers).
  3. Overall consumer prices are down 1.3% YTD – this month they were up .2% (however this includes fuel prices – as we know gas was up this month).
  4. Industry production is up to 70.5% = 80% is considered optimal so we are still low – however so are inventories
  5. Productivity is up significantly during this time of record unemployment – people who still have jobs are working harder to keep them.
Bottom line we may have seen the low in mortgage rates. As reported before the Fed is not increasing the $1.25 Trillion in Mortgage Backed Securities they will purchase – they have simply extended the deadline to spend the current balance to the end of the Q1 2010;  which when compared to the past purchase volume is less – this should lead to slightly higher rates (baring a big drop in stocks).

Have a great week –

Extending the Tax Credit? October 21, 2009

This information came from the Fannie Mae market updates we subscribe to it give insight as to what is being pushed for in congress:
"Outside of the pressures that have been on the housing market (tight credit, increasing unemployment, and home price declines), the expiration of the first time homebuyers tax credit at the end of the month is beginning to flow through into the housing reports.   The tax credit has been attributed with helping to stabilize housing market numbers throughout the summer.   Many involved in the housing market are urging Congress to extend the credit, as well as to expand it to all homebuyers and to increase it from $8,000 to $15,000.  

At a Senate Banking Committee hearing on the State of the Nation’s Housing Market yesterday, Chairman Dodd called for an extension of the homebuyer tax credit, saying it "helped to stabilize housing prices and the market at large."   Dodd joined with Senator Isakson (R-GA) for extending the credit through next June and expanding it "so more middle class families can take advantage of what I believe has been an effective program."

Specifically, Isakson has proposed making the tax credit available to all buyers who purchase a home for their principle residence and whose joint income is $330k or less. He said, "I believe this will provide the stabilization necessary for home values to begin to return.”
The Link below will take you to your congressman's web site where you can write an email in support of extending the tax credit.  Please directly mention Senator Dodd's desire to extend the tax credit to middle class earners and quote the article above.  Take a few minutes it may just help.