The FOMC released its announcement this morning at 9:30 eastern. Two very important indications of what the FOMC will do are found in the statement released to the press.   1. They anticipate keeping the “exceptionally low fed funds rate at least through late 2014″. (Had previously been “into late 2013″, so this is favorable to interest rates.) 2. They have announced extending their program to bolster long-term security holdings.   The impact to the rates was precipitous. Check out this chart to see how the bellwether 10-yr Treasury dropped 14 bps immediately after the announcement.    Mortgage rates continue to improve.  01/25/2012

Big news in the Interest Rates market! The mortgage backed securities that enable banks to package loans into the secondary market are at an all-time high which means rates are great and getting better. Only once ever has the 3.50% coupon MBS from Fannie Mae closed this high and it was in the excitement of the “Operation Twist” announcement and introduction about 100 days ago. At that time interest rates plummeted.  Today we are experiencing the same thing with interest rates in a place that allow for cost-free, 30-year fixed loans on purchases and refis with a 3 in front. That’s right APRs sub 4.0%.   See your friendly neighborhood mortgage broker on Monday for the best available rates! 01/07/2012

Bend Oregon Among Best Housing Markets by John and Sandy Kohlmoos Bend Oregon Real Estate 'Twas the season to be jolly, and I was getting rather tired of writing about the negatives (Central Oregon Economy Sputters, Notices of Default Skyrocket, Stress) associated with the real estate market in Bend . . . in the nick of time (no pun intended), along comes this hopeful report on housing here in Bend. Fiserv Case Shiller Latest Case Shiller data estimates that home prices will appreciate at an annual rate of 3.2% over the next 5 years. www.businessinsider.com has pored over the Case Shiller statistics, and has  come up with their list of the top 15 housing markets over the next five years. Bend Oregon is #1 The gist of the report on housing in Bend forecasts the annual growth at 11.9%. “... 01/04/2012

  Skiers Mob Bachelor . . . Free Skiing, New Chairlift by John and Sandy Kohlmoos Skiers Mob Mt. Bachelor In this season of no snow, the tagline seemed too good to be true. I came across this article in the Bend Bulletin looking back on Bend 25 years ago . . . made me chuckle. A simpler time. I wonder what housing prices in Bend were then? Unheard-of-event Skiers used to shelling out big bucks for lift tickets came in droves to Mount Bachelor Friday for an almost unheard-of-event–a free day of skiing. Eager schussers began arriving at Mount Bachelor’s parking lots at 4:30 AM. And they began lining up at the chairlifts about 30 minutes before they opened, Said Jeff Lokting, marketing and sales manager for Mount Bachelor, Inc. “The Kind of Day We Wanted” “This is exactly the kind of day w... 01/04/2012

Pronghorn Sells! www.bestbendhomes.com   Pronghorn Lender Sells Loans   The real estate landscape in Central Oregon continues to evolve as The Bend Bulletin reported  that Societe Generale, the holder of $43 M in loans  at Pronghorn has sold the note to a “master developer.”     Email to Pronghorn Members   An email to members at Pronghorn, sent out by general manager, Spencer Schaub, failed to identify the buyer; but, stated, in part, “We are excited to confirm that a well-established group which has extensive experience with luxury resorts and residential golf communities has been selected . . .”     A spokesperson from Cascade Sotheby’s International Realty in Bend, corroborated the info, and further identified the company as The Resort Group, headed by Jeff Stone, and headquartered... 12/19/2011

...Jobs and it Begins with Housing! But wait... Unemployment dropped sharply last week to 8.6%! Watch this number. The biggest component of the drop is the 100s of thousands who gave up their search, either for the holidays or until the economy makes job search a bit better. I haven't heard any Administration officials touting this number yet and I hope I don't. People have been scared away and discouraged. The jobs created at 120,000 reported last week is still not enough to even break even with the number of workers coming of age outpacing those turning standard retirement age. And that doesn't take into account that so many are now working much later in life than they used to. So Unemployment improved but jobs are still not keeping up. We need 1- More-reasonable credit standards in ... 12/05/2011

Today's topic: Exploring some nationwide statistics on Foreclosures and Delinquent Loans. Delinquencies are the "pipeline" to future foreclosures. I read a report this morning that is very informative and I think you will like it too. You can find a PowerPoint graphically presenting all of the data by clicking here. The presentation is provided by LPS Applied Analytics. Foreclosure stats of interest nationwide: * Seriously delinquent loans (>90 days delinquent) are down ~40% from high of ~3.0M in January 2010 now 1.7M loans. This is represented by the first chart on the right, above * 3.9M loans are either seriously delinquent (>90 days delinquent) or in Foreclosure * 2.2M of those are in Foreclosure, the highest number ever and 4.3% of all active loans * Another 7.9% are delinquent by ... 12/05/2011

  Bend Home Sales Bend Real Estate I have to admit to being just a little surprised . . . we take off for an exotic vacation to Australia,   and homes in Bend continue to sell. Actually, May offered some pretty healthy sales figures–we saw 171 homes purchased.  That’s up over 22% from April (Bend Homes–April 2011), and almost 12% from a year ago. Homes in Bend . . . Price Ranges We saw the sale of one million dollar plus home in Bend. A “stately lodge style with European flavor,” located at the end of the first fairway of the Weiskopf-designed Broken Top golf course; the home, listed at $1.65M, sold for $1,200,000 or $$157 per square foot. It was awarded the “best in show” for the 2003 Tour of Homes (most folks remember the corvette pictured below). It offered 6 bedrooms, 5.5 baths, and... 12/03/2011

Real Estate in Bend Bend Real Estate The Bend Oregon real estate market, especially the low end, stayed active in April. 133 homes sold in Bend. That’s down about 14% from March’s figure of 155 (March . . . Homes In Bend), but still a number indicating fairly robust activity. Price Ranges for Homes in Bend The bargain for April was, euphemistically speaking, “an affordable opportunity that needs some TLC.” I guess that’s one way of putting it. The 1680 square foot home in Bend featured 3 bedrooms and one bath. It was built in 1960; sited on a third of an acre just off Murphy Road on Bend’s east side. The bank-owned property sold for $54,900 or just under $33 per square foot. According to Central Oregon MLS, it sat on the market for 250 days. Sunset View Estates at $625,000 A little sad... 12/01/2011

Tripleknot Townhomes at Tetherow Construction continues on the Tripleknot Townhomes at Tetherow. Below is a photo from 11/19/11, a day more suited to being at Mt. Bachelor.  The right hand unit is 2900 square feet and will be used as a model home. It is available on a lease back program . . . call 541-480-8131 or check out www.bestbendhomes.com for detailed information. The left hand unit is a wonderful single level with great golf and mountain views. Call fro pricing and completion dates. Tripleknot Townhomes at Tetherow www.bestbendhomes.com Tripleknot Townhomes’ first phase consists of 22 homes with floor plans ranging from 2,350 to roughly 3,000 square feet. 11/22/2011

The markets for interest rates improved last week and today largely on scares in Europe, but also on the action and inaction of the US Super Committee. There are mixed reactions in the bond watchers to the Super-committee inaction; some attribute today’s drop in rates to a US-budget-caused safety flight from stocks to bonds. Others see this as a weak argument because the impact of a non-decision is distant and indirect. Nonetheless, it is interesting to me that the concession of defeat by the super committee was played out on National TV on Sunday even though the deadline is Monday night (tonight) at midnight. Both parties pointing sharply chiseled fingers at the other side. The troubles in Europe continue to worsen, under the cover of “all-is-well”. The ECB is single-handedly buying up... 11/21/2011

It's Official: Congress Passes And Obama Signs into Law the FHA Loan Limit Hike   What does this mean to Central Oregon?   First, note that this bill is lifting the FHA loan limit. In fact, congress considered and specifically excluded increasing the Freddie Mac and Fannie Mae loan limits. This means that limits for loans guaranteed by FHA (requiring mortgage insurance even if you are putting 20% down) will rise.  For some high cost areas (like the San Francisco bay area) it will rise as high as $729,750 where it was earlier this year.   But in Bend and Central Oregon, the limit for FHA loans will be only $332,500 (up slightly from today’s $305,900.) This expansion is in place 2 years through December 31, 2013.   Note that the much more common conforming loans, targeted to the GSEs Fred... 11/18/2011

The weeks and months and years of fretting over European debt came to a climax last week with replacement of both the Greek and Italian Prime Ministers. In both cases, they were replaced with technocrat, financial gurus rather than politicians. Berlusconi was finally ousted by a scandal, but a financial rather than the expected scandal. His replacement is Mario Monti, seen below and to the left, a former EU Commissioner and adviser to Goldman Sachs. The intent is not to prepare for the next election but to cure the ills and sooth the markets. The Italian problem is 100 times larger than Greece’s. Italy has the 4th largest sovereign debt in the world behind the US, Japan and Germany. They are too large to help. They need to improve GDP growth which has lagged the rest of the EU for years... 11/14/2011

"Love Your Life A Little More . . . Visit Bend" Sure, we've got worries . . . unemployment, the economy, the earth quake/ tsunami in Japan. But, we've also got a pretty incredible lifestyle here in Bend . I focus on the positive and write about hamburgers and snow-tubing. Visit Bend has just produced the following video to air on TV this summer: "Bend offers more ways to play outdoors than any destination on the planet. We know that 99% of people won't ever climb Monkey Face or kayak off a waterfall, but you will be inspired to tackle your ideal outdoor recreation adventure. It's all about loving your life a little more in Bend, Oregon." That blue pool is along the McKenzie River trail. You Don't Want a Lime in Your Beer I don't know about you, but the video makes me thirsty. Love your ... 11/13/2011

  Pilot Butte Drive-In to Open on Westside of Bend by John and Sandy Kohlmoos In this  time when an “anxious, troubled nation huddles in tight clusters of fear and uncertainty, shot through with far too much war, economic grief, Tea Party idiocy, iffy cell phone reception and low-level karmic doom,”* I, too, tire of all the negatives associated with our economy and our real estate market here in Bend (Foreclosures . . . . Bend as a Death-Defying City . . . Mortgage Rates Rising, etc.).  I find it necessary to shift focus, look at the positive, and write about hamburgers. Pilot Butte Drive-In to move west The iconic Pilot Butte Drive-In, home to the fabulous 18 oz. “Pilot Butte Burger” (“The biggest I’ve seen and tried to eat! Park the car and eat inside; trying to wrestle with one of th... 11/13/2011

  Tetherow . . . Green on the Greens by John and Sandy Kohlmoos Tetherow’s Commitment Building on a commitment to ensure environmentally sound philosophies and practices, Tetherow is not only one of the area’s only environmentally friendly golf courses, but it has extended that “green” mentality to the new custom homes under construction.  “Our vision from the onset was to create a world class golf experience that was in harmony with nature,” stated Tetherow managing partner, Chris van der Velde.  Tetherow is the only Audubon Signature Sanctuary Certified golf course in Oregon, and was also recently recognized for environmental stewardship by the Golf Course Superintendent’s Association of America (GCSAA). “The homes we are building at Tetherow mirror that vision,” said van der Velde. T... 11/13/2011

Bend Homes . . . Sales for February 2011 by John and Sandy Kohlmoos February 2011 Aawooo . . . the fluffy soft snow and frigid temperatures have returned to Central Oregon! I guess I have to retract all my whining from last month about the crummy conditions at Mt. Bachelor. February Bend Home Sales We saw the sale of 111 homes in Bend during February. Down a bit from the 125 houses sold in Bend in January (Homes sold in Bend), and almost identical (110) to the number of a year ago. Bend Real Estate Trends The median price in Bend rose just a hair . . . from $172,500 to $174,500.  Very scary to think that the median price approached $400,000 in May  of 2007.  Once again, the low end of the market was extremely active–roughly 60% of homes that sold in Bend were under $200,00. Four years ... 11/13/2011

  Bend Named No. 2 ‘Death-Defying City’ in the U.S. by Rocco (posthumously) The Dumbest Post of All time? I’m not sure it’s the lamest, but surely it must be close.  Bend Oregon is known for a lot of great things . . . clean air, affordable housing prices, short commutes, a salubrious climate boasting 300 sunny days a year, a million golf courses, a great ski area . . . in short, a tremendous lifestyle. Along comes Livability.com (who?),  having just released their infamous list . . . “Top 10 Cities To Defy Death”, a weird compilation of the best places to live in America for those who prefer to “live on the edge”  (why am I writing this drivel?).  Bend is No. 2 on that list!  Contact my master for the other nine. Keep the Adrenaline Rushing! “If you choose to live life to the extreme, ... 11/13/2011

Economic Stress in Deschutes and Crook Counties Stress in Deschutes and Crook Counties A recent article in the Bend Bulletin points to Crook and Deschutes counties as having recorded the worst indicators of economic stress in Oregon . . . and some of the highest in the nation, as reported in the latest Associated Press Economic Stress Index (it’s probably more fun to play with the chart than it is to read the rest of the post!). The index measures all U.S. counties’ economic stress based on their levels of unemployment, bankruptcies and foreclosures. The measurements are based on October numbers, the latest data available when the stress index was created Dec. 13. Difficulty in Housing and Construction In addition to getting hit with the collapse of the housing markets and construction... 11/11/2011

Europe teased us with an on-again, off-again solution to the Greek crisis with the PM announcing early in the week a rejection of the life raft floated to them. The rejection was in the form of a referendum to happen in 2012. This was followed by some back and forth political posturing in Greece, some ineffective threats from the G20, and finally by a return to accepting the handout during the week. The chart at the right shows the impact on US interest rates with the US 10-yr Treasury dropping from last week’s 2.30% to 1.98% temporarily and then settling in at about 2.05%. Over the weekend, the Greeks added to the drama with a compromise between the current PM and the opposition announcing the formaition of a new consensus government. The new government will not be led by PM Papandreou... 11/08/2011