CAN YOU STILL GET A 5% MORTGAGE?

Here's What aRecent CNNMoney.com Article
Had to Say . . .

Since November 2008 the Federal Reserve has snapped up $1.25 trillion worth of mortgage-backed securities -- essentially, people's mortgages bundled together and sold to investors. When the Fed stops buying and cedes the playing field to private investors, they will almost surely demand better return for their risk. The Fed said it will taper off [purchases] gradually. Each week they buy less than the week before.
So far, though, the tapering has failed to spawn higher rates. Still, all of the experts agree that mortgage rates will climb. The good news is that none of them think the increase will be very large. Their projections are for a gradual run up to between 5.5% and 6% by December. That will add only about $70 to the monthly payment on a $150,000 note. That's still very reasonable and should not discourage many consumers.
Homebuyers may even find themselves paying less every month as housing markets continue to experience price declines. Industry experts are projecting further home price drops of 5% to 10%. Which would wipe out every bit, and more, of the monthly payment increases higher mortgage rates would bring.
CNN Money Article

Remodeling Costs Affected by New EPA Rule

Started on April 22, 2010, a new regulation went into effect, the Renovation, Remodeling and Painting Ruleor RRP Rule. The RRP Rule requires that all persons who provide construction trade services will be mandated to have successfully completed a professional 1-day training course and be licensed or certified by either the EPA or by the state where the work is occurring.
This rule will apply in any situation where the construction trade service is impacting an area in a home built before 1978 equal to or larger than 6 square feet of interior or an area equal to or greater than 20 square feet of exterior area that is affected by any material, paint, or surface coating containing lead.
Construction trades refers to renovators, remodelers, HVAC persons, plumbers, electricians, modernizers, roofers, carpet installers, maintenance repair people, or anyone working in a construction type trade.Everyone involved will need to be trained in the proper uses of lead safe work practices as well as the proper documentation. The trades will have to use the following rules:
1. Contain the work area. The area should be contained so that dust and debris do not escape from that area. Warning signs should be put up and heavy-duty plastic and tape should be used.
2. Minimize dust. There is no way to eliminate dust, but some methods make less dust than others. For example, using water to mist areas before sanding or scraping; scoring paint before separating components; and prying and pulling apart components instead of breaking them are techniques that generate less dust than alternatives.
3. Clean up thoroughly. The work area should be cleaned up daily to keep it as clean as possible. When all the work is done, the area should be cleaned up using special cleaning methods before taking down any plastic that isolates the work area from the rest of the home. The special cleaning methods should include: Using a HEPA vacuum (not just vacuum bag) to clean up dust and debris on all surfaces, followed by wet mopping with plenty of rinse water when the final cleaning is done, look around.
All this extra work costs money. You should probably expect to see additional cost for any home improvement you contract for, from new carpeting to a room addition. For more information on what "lead safe work practices" entails, see: EPA Lead & Rennovation.

DETROIT'S DOWNTOWN HOEDOWN

The Downtown Hoedown was established in 1983 and is widely recognized as the largest Country Music Festival of its kind in the world. Hosted by 99.5 WYCD, Detroit's Best Country, and produced by Wasserman Media Group, the Hoedown is regarded by the Country Music Industry as a premier showcase opportunity for new and established artists. Located at Hart Plaza in the heart of downtown Detroit, the event attracts hundreds of thousands of enthusiastic country music fans from the Midwest and beyond.

May 14 - 16 in the Hart Plaza

May 15-16 - Art Birmingham

Art Birmingham, originally known as the Birmingham Fine Art Festival, celebrates its 29th anniversary with a new and extraordinary location. The event moves from Shain Park to South Old Woodward, the celebrated gateway to downtown Birmingham. Unique shopping and fabulous restaurants line the street, drawing upscale shoppers and residents from throughout Oakland County and beyond. More than 160 juried artists will be featured in this elegant setting.
The BBAC is pleased to announce that it will be presenting this event in association with The Guild of Artists & Artisans. This new collaboration will help the BBAC continue to be a regional resource for the arts, artists and art education while ensuring the continuation of this highly respected fine art fair. The Guild of Artists & Artisans is a non‐profit, membership association of independent artists best known for its award‐winning Ann Arbor Summer Art Fair. Guild events have a reputation for excellent advertising, fair attendance and artist amenities.

Saturday, May 15th 10 a.m. - 6 p.m.Sunday, May 16th 11 a.m. - 5 p.m.

Location: Old Woodward in Birmingham

For more information contact the Birmingham Bloomfield Art Center at (248) 644-0866

St. Mary's Polish Country Fair

In Orchard Lake May 28-31, 2010 (fri-mon):
Free Admission - Parking $7
More than 45 Carnival Rides, Kid Zone, Authentic Polish and All-American Food, Las Vegas and Bingo Tents, Live Music and Dancing, more.
More information: St Mary's Festival

INTEREST RATES HAVE NOWHERE TO GO BUT UP!

Even as prospects for the American economy brighten, consumers are about to face a new financial burden: a sustained period of rising interest rates.

This fact, economists say, is the inevitable outcome of the nation's ballooning debt and the renewed prospect of more inflation as the economy recovers from the depths of the recent recession.

The shift is sure to come as a shock to consumers whose spending habits were shaped by a historic 30-year decline in the cost of borrowing.
The impact of higher rates is likely to be felt first in the housing market, which has only recently begun to rebound from a deep slump. The rate for a 30-year fixed rate mortgage has risen half a point since December, hitting 5.31 in April, the highest level since last summer. Along with the sell-off in bonds, the Federal Reserve has halted its emergency $1.25 trillion program to buy mortgage debt, placing even more upward pressure on rates.

The Mortgage Bankers Association expects the rise to continue, with the 30-year mortgage rate going to 5.5 percent by late summer and as high as 6 % by the end of the year.

For young home buyers today considering 30-year mortgages with a rate of just over 5 %, it might be hard to conceive of a time like October 1981, when mortgage rates reached a peak at 18.2 %t. Therefore, this meant monthly payments of $1,523 then compared with $556 now for a $100,000 loan.

No one expects rates to return to anything resembling 1981 levels. Still, for much of Wall Street, the question is not whether rates will go up, but rather by how much. For the complete article see: Complete NY Times Article

Interesting info about our unique neighborhoods in Birmingham and Bloomfield Mi.

Royal Oak Farmer's Market

The Market is located in the Civic Center at the corner of 11 Mile Road and Troy Street, across from the Library and adjacent to the 44th District Court. The Royal Oak Farmers Market provides one of the premium farm market venues in southeast Michigan. Farm producers sell from an enclosed building, with ample parking, on Friday during the farm season (May through Christmas) and Saturday all year 'round. During growing season farmers are only allowed to sell what they grow.

Birmingham Farmer's Market

WILL OPEN MAY 2nd!

Every Sunday
May 2 - October 24
9 a.m. - 2 p.m. at the Birmingham Farmers Market City Parking Lot #6North Old Woodward north of Harmon