March 9th, 2009
Posted by Carol Miller
This began when the interest rates dropped several years ago creating a sellers market. Houses were on the market less then a week and sometimes hours. There were bidding wars going on between numerous buyers trying to purchase the same house. Buyers were paying more for the house and paying out of cash more then what the house appraised for. Buyers were essentially setting the prices creating an increase in property values. Also, at that time mortgage companies and banks were writing tons of mortgages and making windfalls of money. Mortgage lenders were able to loan to pretty much anyone who could breath. It didn’t matter how much a borrower made or what their credit looked like….there were loans for everyone. If they couldn’t find the loan box the borrower fit in then they created a “liars loan”. This is when predatory lending began with the lender telling the borrower what they should make to get the loan approved then the borrower giving their true salary. ARM loans were the talk and everyone could afford the loan….have a low interest rate to start with and watch your payment grow in 2 – 5 years. However, I don’t think some borrowers heard the part or understood how much your payment can increase over 2 – 5 years. ARM loans originated in the early 1980’s when loan rates were in their all time highs at around 12% -14%. It was a type of loan back then to attract more buyers and make homes more affordable. I don’t think ARM loans were the best mortgage product when the rates were at the all time lows…down to 5% a couple of years ago. Some borrowers were naïve to it all and trusted their lender and not realizing that over appraising their house, giving them an ARM loan for 2 to 5 years may force them to sell. The lenders were also pitching the fact that the value had gone up in their home now was the time to get an equity loan to payoff debt, buy a car or go on a trip. Even some appraisers were getting caught up in the scam by over appraising property so the borrower could get the equity they needed. Money was being made like never before in the industry.
All good things must come to an end… or was it good? Now we are at an economical crisis in mortgages and property values. People are not able to afford their mortgage payments and having to walk away from their homes they once were excited and emotional about moving into. I look forward to the day we can look in our rear view mirror and see this all behind us and business as usual.
November 14th, 2008
Posted by Carol Miller
I thought this picture was kind of cool, so I thought I would share it with you! I know Washington state is now a hands free state which means while driving you must not talk on your cell phone without being hooked up to some type of wireless contraption. That’s a different story which maybe I will write about or do a poll on which wirless works best in the car….because I have yet to find one that I can hear clearly on. Anyway, back to my story….I don’t remember seeing any state law that says you can’t take a picture while driving!!! So this brings me to this picture. This is our troops from McCord Airforce base practicing touch and go landings. I wish I could of taken the picture when it was closer. There are times when I’m on the freeway and these big birds fly so low that you think they are gong to land on top of your car. Next time when I see one of these flying machines and I’m not on my phone…wireless of cours, I will try to get a closer picture!
November 13th, 2008
Posted by Carol Miller
Happy 85th Birthday Blue Mouse Theater! Thanks to local investors 15 years ago who restored it making it today to be the oldest operating theater in the state of Washington. The 221 seat vintage theater located in the Proctor District shows second run movies with ticket prices at $5, drawing crowds from all over. Today’s birthday celebration begins at 6:00 p.m. with music and a catered meal. The theater is located at 2611 N Proctor in Tacoma. For more information on todays birthday party or to see what movies are playing visit: http://www.bluemousetheatre.com/
November 6th, 2008
Posted by Larry Cragun
I was asked by a client last night, where will rates go now that we have a new President?
Maybe this little guy knows the future of rates. I am not sure who else would know for sure. But here are two things to consider. 1- During this rocky ride through the mortgage mess rates have gone down as the stock market went down and rates have gone up as the stock market has gone up. That may continue. When we recover is not certain. When we hit bottom with real estate sales and values is not certain. What is certain is that a bottom will hit and there will be a recovery. I believe rates will go up if you think the economy has turned around.
Tip: (Interest rates move on fears and hopes before facts) When their is a fear of inflation rates will go up, just based on those fears.
2- A new factor has been introduced through the so called bail out. This is important and may bring rates down. That is that the government is now mortgage money just as they are for those that loan money to the government. What makes loaning money to the government a safe place is the guarantee of the US Government. That is keeping the rates of Treasury notes around 2%. The safeness makes money looking for safety go to Treasuries. Mortgage instruments are now guaranteed in the same way but the market has not discovered or accounted for that, paying around 6%.
It is very possible a flood of money will start heading for Fannie Mae and Freddie Mac. Hope for that because that will make rates go down, more money available to loan, more people affording housing, and a jump start to the economy.
So, now back to the question – what will happen to mortgage rates? My answer: Go fish, I don’t know.
October 14th, 2008
Posted by Carol Miller
The new Nordstroms store is now open at the Tacoma Mall! It is quite a bit bigger then the old one that is now sitting there vacant waiting for another retail store to take over. Here are pictures of the new store along with some art work that hangs in the doorway when you walk in. Check out the last picture of the piano player, well not so much the piano player but the man to the right sitting on the couch….here is what happens when the wife brings the husband shopping, he is given a newspaper to read and hopefully he doesn’t finish it until the wife is done looking at everything in the store!!
September 26th, 2008
Posted by Carol Miller
It’s not too late to visit the Tacoma Farmers Market located downtown on Broadway Street. It is open every Thursday from 9:00 a.m. to 2:00 p.m. until October 16th. The market is lined with vendors selling fresh vegetables, baked goods, arts, crafts and my favorite; the fabulous flowers. To get additional information visit: http://www.tacomafarmersmarket.com/About.aspx
August 25th, 2008
Posted by Carol Miller
Check out this fabulous sunset looking over the sound! Lastnight after the rains left the sky filled up with this gorgeous array of color and great cloud formation lasting about 30 minutes. I was so glad I didn’t miss it!
July 2nd, 2008
Posted by Carol Miller
If you are looking for somthing fun and interesting to do over the 4th of July, come see the tall ships in the Tacoma port! The ships sail into Thea Foss Waterway on the 3rd and will be docked until the 7th of July. I was there the last time the ships came to Tacoma and how exciting it was. The 31 sailboats are from all over, one coming all the way from New Hampshire. The ships length size is anywhere from 70 to 266 feet with mast heights up to 75 feet. One of the boats that will be here this year was built by MGM Studios in 1960 for the film “Mutiny on the Bounty”. There will be parking at the Tacoma Dome where you can take a shuttle bus to the waterway. Enjoy going aboard the ships to hear the stories the crews are willing to tell! Visit http://www.thenewstribune.com/tallships/ to check out more detailed information on each vessel and all about the festivites. Hope you can come and see the excitment in Tacoma….don’t forget to bring your camera!
June 5th, 2008
Posted by Carol Miller
If you are looking for something fun to do this weekend the 4th annual flower & garden show starts on June 6th at Point Defiance Park. I went by there today and the tents are up and all fenced in for the vendors to display their exhibits. It is 12 acres full of foral designs, window boxes, arts and crafts, plant market and even a jazz garden. If you enjoy playing in the dirt and planting flowers this is the place to be. Even if you are not into gardening there will be something there for you too, I’m sure! For more information regarding the events, visit: http://www.ptdefianceflowershow.com/
May 12th, 2008
Posted by Carol Miller
Visit the Museum of Glass located in downtown Tacoma.
