The rates are still staying low this week. We hit our lowest rates in over 37 years on Wednesday with a slight uptick in rates this morning. The 10 year treasury bill is trading at 2.10 this morning. Investors are still in dismay as they wonder how the banks continue to lend at the largest spreads ever on mortgages.

If we look at the spreads between the 10 year treasury and 30 year mortgages, I believe you can historically expect about a 180 basis point spread. So basically, you would add 1.8% to the 10 year treasury yield. Today the 10 year treasure is 2.1, hence our rates should be at 3.9% or so. The banks are currently at a spread of 275 or so over the 10 year treasury with rates trading around 4.875.

The investors for mortgage backed securities are demanding higher returns due to the risk of mortgages and the default ratios. The banks are also working on retrieving their losses by adding their spread to the treasury to rebuild their coffers. Make no doubt about it, the banks never lose!! The public will always pay for it in the long run. But, if they did just “absorb” the losses, they would become insolvent and then our money would be worth nothing. Banks are a for profit business and have to pay dividends to their investors. Therefore, the spreads will remain high until their balance sheets rebuilt.

Having said that, the rates are still fantastic and buyers are now coming out of the woodwork. Finally.

Come out and play with us at the park!”
Is your gym routine getting stale? Mix it up a little and participate in this fun yet challenging group exercise class at Central Park. Riech Personal Training & Coaching will individualize your program to suit your fitness level. Sessions with Riech Personal Training are 4 weeks long; 2 or 3 days per week. Classes will include a warm-up, stretching routine, running, functional and core strengthening, and a cool-down.Classes are taught by Todd Riech, former Olympian, and Lisa Riech, licensed physical therapy assistant and highschool track coach.

I’ve been working out with Todd and the group for the last month in the park and it is wonderful workout, it’s like having your own personal trainer, no session is the same and the morning sunset mountain views are spectacular.
Margo Murray - Real Estate Broker in Rancho Santa Margarita http://www.margomurray.com http://RSMBlog.com
margo@margomurray.com

Please bring a workout mat and a pair of dumbbells. Recommend weights: 5 lbs. for the beginner level, 8 lbs. for the intermediate level, 10-12 lbs. for the advanced level.

Date/Time: Tuesday, Thursday & Saturday
Session 1 - February 12 - March 8, 6:00 a.m. or 9:15 a.m.
Session 2 - March 18 - April 12, 6:00 a.m. or 9:15 a.m.
Location: Central Park, 30842 La Miranda
Fee: $120 for 3 days/week (or $80 for 2 days/week)

To register or for more information on classes contact:
Riech Personal Training & Coaching 949.413.5768
http://www.toddriech.com or info@toddriech.com

                                        Source for statistics: California Association of Realtors

Gary Watts has long been recognized as a forecasting expert by the real estate industry. His long-term analysis has also drawn the attention of the media due to his consistent accuracy. His Economic Outlook has been spotlighted in regional newspapers, including the Orange County Register and the Los Angeles Times. He has been seen on the PBS TV program Real Orange, and he has been a featured advisor on real estate forecasting roundtables. He holds a degree in economics with advanced studies in psychology from California State University at Sacramento. 

The housing market below $250,000 has most likely reached the bottom
Prices now in the $350,000 range are close to the bottom.
The rest of the housing market still suffers a restructuring of prices. 
Expect foreclosures and short sales to dominate the market through 2010.
Listing inventory should rise due to the large number of foreclosures set to enter the market.
The credit conditions should greatly improve, bringing more buyers into the market place.
Demand for properties will continue to be higher than the past three years.

Recently, my office has received calls from concerned homeowners about property valuation in a declining market and what implications it may have on their property taxes. Home owners are asking, “Why are my taxes going up when my value is going down?” Here is a good explanation that was recently printed in Supervisor Pat Bates newsletter. “There are two values to look at when considering property taxes: the Market Value and the Proposition 13 Taxable Value. The Market Value is what the property would sell for in an open market transaction. The Prop. 13 Taxable Value is the Market Value of the property when it was purchased, plus a Consumer Price Index (CPI) adjustment of up to 2% per year, plus any new construction. In calculating property taxes each year, the Assessor compares these two values and the lower of the two is always used.Therefore, even if a property experiences a decrease in Market Value, if the Market Value is still higher than the Prop. 13 Taxable Value, a CPI adjustment may be added by up to 2% annually. Using this formula, taxpayers always benefit because they always pay the lower of the two amounts.” For more information about Market and Taxable Values, please click here. You may also contact the Assessor Department with any questions by calling (714) 834-2727 or visiting www.ocgov.com/assessor

         Are you “On The Fence” About Buying a Home?

• It helps transform the mortgaged-back securities.
  This keeps access to capital for borrowers high and
  interest rates low.

• Conforming/jumbo conforming rates should drop in
  the coming weeks by as much as a percentage point.

• It improves confidence in the stock market allowing
  investors to once again realize profits, which they in
  turn can re-invest in mortgages.

• Credit will flow again bringing new, qualified buyers
  into the market to take advantage of the investment
  opportunities currently available.

• Modified mortgages will allow some homeowners to
  restructure their mortgages and avoid foreclosure.

If you’re on the fence, now is an excellent opportunity to realize
dramatic savings on a home purchase before the market shifts,
and we begin the next ‘UP’ stage of the cycle.

Just came back from a cruising through the Tahitian Islands.http://tinyurl.com/5c749c

  3 Via Onza, Rancho Santa Margarita - Listed for $735,000 

Sold with mulitple offers in less than one month

 5 suggestions to ensure a successful real estate sale in Rancho Santa Margarita

1. Go green: Lawns tend to get greener after August when the nights get cooler. It’s also a great time to seed and fertilize your lawn if there are any bare spots or the grass is thin.

2. Add color: Plant mums or other colorful plants that will thrive in the fall. This will give your landscape color and vibrancy when everything starts to fade from the summer.

3. Details matter: Trim shrubs and trees on your landscape. Make sure things look sharp and neat.

4. Keep it clean: Tidy up your yard; put away hoses or superfluous lawn ornaments. Change over the general theme (if you have one) to an earthier, fall tone.

5. Preserve wildlife: Attract a little friendly wildlife to your lawn by putting out a birdfeeder.

6. Sparkle and shine: Wash your windows and your screens. As fall arrives, the arc of the sun changes and it’s easier to see dirt on windows; removing screens entirely will also help keep a clean, clear view through the windows.

7. The time is right: Make sure you adjust any automatic timers. As days begin to shorten, ensure automatic lights along the house or walkways come on when it starts to get dark.