30-Year Mortgage Rates Fall Below 5%

Mortgage rates dropped to their 11th straight weekly decline, reaching new record lows, according to Freddie Mac. Interest rates on 30-year, fixed rate mortgages averaged 4.96 percent this week, down from a previous week's 5.01 percent.

The low rates have caused a spike in home refinancing loans and a welcome relief to cash-strapped home owners facing a slowing economy and rising unemployment rates.

"The fact that interest rates have dropped to a record low is an important development since more affordable home financing could help bring buyers back to the market and prevent some of these foreclosures," says Lawrence White, professor of economics at New York University's Stern School of Business.

Other rates were mixed for the week:
15 year fixed rates: averaged 4.65 percent, up from 4.62 percent.
1-year adjustable rate mortgages: fell slightly averaging 4.89 percent from 4.95 percent last week.
5/1 ARMs: averaged 5.25 percent compared with 5.49 percent last week.

Mortgage rates have continued to drop ever since the Federal Reserve announced a plan in December to buy up $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae—the government-sponsored enterprises.

Source: Reuters, Julie Haviv (1/15/09), http://www.realtor.org/

Fed Action Creates Best Interest Rates in 50 Years

The National Association of Realtors® applauds the actions of the Federal Reserve Board in lowering interest rates for home buyers and homeowners who need to refinance. This will significantly impact housing sales, home valuations, and the nation’s overall economy.
The Federal Reserve is purchasing large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets.

“NAR has been aggressively calling for mortgage rate reductions, and the Fed’s action to slash interest rates, coupled with the actions by the Federal Housing Finance Agency and the Department of the Treasury, has driven down interest rates to make the dream of homeownership once again attainable for thousands of Americans,” said NAR President Charles McMillan.

Mortgage rates, which had averaged 6.3 percent in the third quarter, have recently fallen into the 4 percent range in some parts of the country. “That is the lowest rate in nearly 50 years and will bring buyers back to the market,” McMillan said. “We are pleased that the government heard our message and responded to our call for action.”

NAR has estimated that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes. “To boost the economy, it is critical to stem the rising tide of foreclosures and boost home buyer confidence in the housing market.” McMillan said. “Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership.”

NAR continues to call on the federal government to maintain the higher loan limits passed in the economic stimulus bill earlier this year and to expand the $7,500 tax credit for first-time home buyers to all buyers and to eliminate the credit repayment requirement. “Together, all of these actions will stimulate and stabilize the housing market and begin an overall economic recovery,” McMillan said.

Source: Mary Trupo, "Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report," Dec. 17, 2008. http://www.realtor.org/press_room/news_releases/2008/fed_action_creates_best_interest_rates,

National Association of Realtors Challenges Fannie Mae Fee Increases

The National Association of Realtors® Challenges Fannie Mae Fee Increases On January 2, 2009, NAR President Charles McMillan wrote to the Director of the Federal Housing Finance Agency, Jim Lockhart, to express REALTOR® concerns about the increased fees for mortgages purchased or securitized on or after April 1, 2009. Director Lockhart is the federal conservator and regulator of Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs). The letter questions whether it makes sense, from a policy standpoint, to increase fees considering the mission of the GSEs to promote affordable homeownership. It also explains NAR's concern about the lack of any explanation of, or justification for, the Fannie Mae decision. NAR is urging Director Lockhart, in the absence of a compelling justification, to require Fannie Mae to rescind the fee increases and to direct Freddie Mac not to raise its fees.

Source: Jeff Lischer, "NAR Challenges Fannie Mae Fee Increases," Conventional Residential Lending Report, Jan. 5, 2009. http://www.realtor.org/fedistrk.nsf/pages/wk01052009?OpenDocument#report_1_01_05_2009,

Housing Price Statistics Show Long-Term Value of Homeownership

The latest federal statistics on housing prices in hundreds of local markets reveal patterns that haven't been making the news: While on a national basis homeowners have lost more than $1 trillion in equity since the end of the boom, the overwhelming majority of markets continue to show net cumulative value growth over the past 60 months.
· According to the third quarter survey released Nov. 25 by the Federal Housing Finance Agency, out of 292 metropolitan markets, 273 showed positive net home values over the course of the previous five years.

· Nationally, the survey found prices down 4% over the year, but still up almost 29% over five years.

· Unlike stocks, where your asset values can go from peak to zero in a matter of weeks, house values tend to be far slower moving, and can be more durable over extended periods.

· Forty-three metropolitan markets saw appreciation gains of 2% or higher in the past year, while others -- mainly in California, Florida and Nevada -- experienced double-digit deflation. Twenty-seven metropolitan areas around the country have racked up 50% or higher cumulative gains since 2003.

-- “Long-Term Numbers Tell a Different Story,” by Kenneth R. Harney, Washington Post, Dec. 6, 2008.

Tri-Cities Upcoming Events

Saturday, December 20th, 2008:

30th Annual Cable Bridge Run
Location: Neil F. Lampson Office Building, 607 E. Columbia Dr.
City: Kennewick side of Cable Bridge
Phone: (509) 545-3456
Time: 9:00-10:30 a.m.
Fees & Prizes: Pre-registration fee is $14.00 with long sleeve shirt or $10.00 without shirt, and late registration fee is $20.00 or $12.00 respectively. Overall winners will receive gift certificates, and ribbons will be awarded to the first six finishers in each division. Participants must be present to be eligible for the variety of gifts at the random prize drawing following the runs at the Lampson Maintenance Shop Building. Only those who are pre-registered can be guaranteed a T-shirt on race day. Other Rules: On race day all runners must report to the Neil F. Lampson Office Building (Kennewick side of Cable Bridge) at 7:30 a.m. or no later than 8:30 a.m. Late registration ends at 8:30 a.m. Changing areas are not available at the check-in site. NO REFUNDS.
Finish Line: The 5K & 10K races still feature an indoor finish line at the Lampson Maintenance Shop in Big Pasco, and liquid refreshments will be available. A free shuttle bus will be provided by Ben Franklin Transit to transport runners from the 1 mile finish to the maintenance shop and then back to the starting line with a shuttle leaving approximately every 30 minutes from the maintenance shop.• If you are a walker, please do either the 1M or the 5K.• The course closes at 10:15 a.m.
Race Divisions: (Separate divisions for both male and female)
12 years and under
13—19 years
20—29 years
30—39 years
40—49 years
50—59 years
60—69 years
70 years and older

Gallery A-Glow" Art Exhibit & Sale
Location: Allied Arts Gallery, 89 Lee Blvd.
City: Richland
Phone: (509) 943-9815
Website: http://www.alliedartsrichland.org
Time: 10:00 a.m.- 5:00 p.m.
"Gallery A-Glow" is the theme for Allied Arts Association.It runs Nov. 4, 2008 thru Jan. 2, 2009. Regular gallery hours are Tuesday through Friday from 10 a.m. to 5:30 p.m. and Saturday from 10-5 p.m.* Open Sundays Nov 16 - Dec 21, 1 - 4 p.m. There is no charge for admission.

The Toy Train Christmas
Location: Northern Pacific Railway Museum, 10 Asotin Ave.
City: Toppenish
Phone: (509) 865-2409
Time: 10:00 a.m.- 4:00 p.m.
Admission includes: Caboose ride, candy canes from Santa, hot chocolate & cookies. Featuring decorated Christmas Trees with model trains underneath. See Santa, Mrs. Claus and elves.
Admission for the museum is: $6 for adults and $4 for kids 12 and younger.


Sunday, December 21, 2008:

Mid-Columbia Mastersingers Choral Christmas Concert "A Boy Was Born"
Location: Central United Protestant Church, 1124 Stevens
City: Richland
Phone: (509) 943-2244
Website: http://www.midcolumbiamastersingers.org
Time: 3:00- 5:00 p.m.
Presenting seasonal works of 20th century British masters, as well as arrangements of traditional and modern carols. Featuring organist Susan Miller.

The Toy Train Christmas
Location: Northern Pacific Railway Museum, 10 Asotin Ave.
City: Toppenish
Phone: (509) 865-2409
Time: 10:00 a.m.- 4:00 p.m.
Admission includes: Caboose ride, candy canes from Santa, hot chocolate & cookies. Featuring decorated Christmas Trees with model trains underneath. See Santa, Mrs. Claus and elves.
Admission for the museum is: $6 for adults and $4 for kids 12 and younger.


Wednesday, December 31, 2008:

First Night® Tri-Cities 2009
Location: Columbia Basin College, 2600 N. 20th Ave.
City: Pasco
Phone: (509) 586-7311
Website: http://www.firstnighttc.org
Time: 3:00- 11:55 p.m.
Kid Zone 3:00 -7:00 p.m
Entertainment 5:30 p.m. - Midnight
A family friendly way to spend New Year’s Eve.First Night® Tri-Cities is an alcohol-free, family-oriented celebration that allows families a chance to join together in a safe fun-filled environment to enjoy the visual and lively arts. It is an event that brings our communities together by providing a shared cultural experience that is accessible and affordable to everyone. By using the stars as a backdrop and the community as a stage, First Night® Tri-Cities is an opportunity to move and uplift our human spirit to celebrate all that is good and right in our world. It is a public celebration that revives the ancient tradition of marking the passage of time with art, ritual, and festivity in present day context. This unique New Year's Eve Celebration takes place both indoors and out as the campus of CBC becomes the homes for clowns, singers, dancers and many other entertainers. A spectacular fireworks show welcomes in the New Year at midnight as people gather together for the closing ceremonies.

New Years Eve - Island Style
Location: Clover Island Inn, 435 Clover Island
City: Kennewick
Phone: (509) 586-0541
Website: http://cloverislandinn.com
Time: 7:00 p.m. - 1:00 a.m. January 1st
The evening will start with a social hour in the ballroom at 7:00 p.m., with a dinner buffet from 7:30 until 8:30 p.m. The buffet will feature a true “Island Buffet” with a whole roasted pig, Island chicken, tropical fruits, pineapple upside down cake, and other delectable island treats. Then, put on your party hats and party favors (provided) and dance the night away with local favorite band ‘Colorblind’. A champagne or cider toast at midnight, then more music and dancing! If you prefer to ‘venture out’, catch the free shuttle bus to the Downtown Kennewick night clubs. A complimentary breakfast buffet the following morning, with a late check out will be provided on New Years Day. All this for $159.00 per couple. Reservations, call (509) 586-0541