Dickson Realty – January 2015 Newsletter
News You Can Use Truckee | North Lake Tahoe
Dickson Realty’s January 2015 Newsletter
HAPPY NEW YEAR! We wish you and yours a wonderful new year, full of all good things, especially happiness and health.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
Dickson Realty’s January 2015 Newsletter BEST TIME FOR LOCKING A LOAN When the best time to lock in a rate? We get asked this question daily. It is really a personal choice but we think it depends on your risk tolerance and whether it is a purchase or a refinance. The best rates happened in the beginning of 2013 before Federal Chairman Ben Bernanke stated that quantitative easing would most likely be coming to an end soon. Quantitative easing created an economic market (the Fed Government) for mortgage backed securities (MBS). This allowed rates to go to historical lows. 30 year fixed loans were offered between 3.25%- 3.875% before the statement. Once the impact of that statement was digested, MBS were impacted and rates began to climb. We saw 30 year rates range between 4.5%- 4.875% early in 2014. It is important to understand that mortgage backed securities are instruments (bonds) used to give a fixed return to investors. The global economy impacts MBS as well. Investors seem to run to the flight of stocks when the economy is good and to bonds (including MBS) when there is a stressed market and they want more safety in investments. Europe is having a hard time financially and that has been to the benefit of the US rates/MBS. That is one simple explanation but there are many small factors affecting our US home loan rates. The bottom line, if you are purchasing a home, lock in if you are comfortable with the rate. Rates change daily and hourly depending on what is happening in the US as well as globally. Our suggestion, if you are satisfied with the payment, and feel like it works for your family, lock it in. Lately the market has been volatile with rates changing 1/8th up and 1/8th down easily each day. This can equate on a 417k loan amount to about $30.00 between 3.875% and 4%. In our opinion, if you wait to lock you’re taking a gamble, as the market could go either way. While we can see trends on the short term, something could still happen globally to shake things up. The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
Dickson Realty’s January 2015 Newsletter On refinances, you have a lot more options to wait as timing is not usually an issue. On a purchase, you need to close the loan according to the contract so waiting is not always an option. Usually you can wait until we are ready to order loan documents, however if rates have increased or decreased lenders usually are required to re-underwrite the loan again which could cause delays and could make you lose the contract, thus the home. Many analysts are predicting rates to stay low through early 2015. We will see how this prediction plays out. Last year the prediction was that rates would be at 5.125% or higher by this time. The average best execution rates for many 30 year loans today are ranging between 3.875%-4.25% depending on loan size, credit score, loan to value of home and other factors. Please call us for your specific scenario and rate quote. Please call Rice Conway team at 530-582-9992 or email us at Team@riceconwayteam.com with any questions.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
Dickson Realty’s January 2015 Newsletter
Talk to your agent before undertaking a remodel project. Sometimes they are not going to give you the return on investment you might be hoping for. The best projects are additional bedrooms and decks, with an updated bathroom a close third.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
Interest Rates and the Fed The Federal Reserve announced mid-December that it intends to take a slow approach to raising interest rates in the coming year, even as the economy continues to strengthen. In a policy statement released following the last 2014 meeting of the Federal Open Market Committee (FOMC), the central bank reaffirmed its view that the economy is expanding at a "moderate pace," pointing to continued improvements in the labor market tempered by still-high numbers of unemployed and underemployed Americans and slower growth in the housing sector. Given the current climate, the committee hinted that it will take steps to raise short-term interest rates in 2015, though it still would not commit to a time frame, saying only that "it will likely be appropriate to maintain ... the [current] federal funds rate for a considerable period of time." "Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy," the Fed said in its statement. While the phrase "considerable period of time"—commonly interpreted by analysts to be around six months—is not a new addition to the Fed's language, policymakers did clarify that they're counting the time from when the central bank ended its asset purchase program in October. If the interpretations hold out, that could signal an increase as soon as April, though many economists expect June is more likely. More‌
Dickson Realty’s January 2015 Newsletter
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
Dickson Realty’s January 2015 Newsletter There’s a great way to enjoy a day on the slopes and benefit our local educational foundation at the same time. The Tahoe Truckee Excellence in Education Foundation has just announced the 2015 Skiing for Schools dates. Throughout the season, various North Lake Tahoe ski resorts will provide hefty discounts on day lift tickets, with the money going to support the programs of Excellence in Ed. Participating resorts include Homewood, Tahoe Donner, Sugar Bowl, Tahoe Cross Country, Northstar, Royal Gorge, Tahoe Donner Cross Country, Squaw Valley and Alpine Meadows. You’ll get bargain rates such as downhill ski tickets for just $40, and cross-country tickets for only $15 for most of the dates. For more information on the participating resorts and their dates, and where to purchase tickets, go to exined.org Over the past 25 years the Excellence in Education Foundation has provided over $2.7 million in grants to classes and programs at our local schools. Just last year, they provided over $300,000 in grants. Teachers and schools compete for grants based on merit, with awards going to those classrooms and programs where they can provide the most hands on assistance to kids. The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
Dickson Realty’s January 2015 Newsletter JANUARY EVENTS 2 - First Fridays Historic Downtown Truckee, 5:30 - 8 pm Most of downtown’s unique shops, boutiques, art studios, and eateries will keep their doors open later and offer special promotions, activities, demonstrations, food and beverages, music, and more! Participating shops and restaurants will display First Friday Flags so the public will know where the fun is. Information: www.historictruckee.com 4 - Pancake Breakfast Sierra Senior Center, 10040 Estates Drive, Truckee 8 to 11am, $7adults/$3 kids A fundraiser for Sierra Senior Services Information: www.sierraseniors.org 8, 9, 10 Truckee High School Drama Club presents “Collage” – an evening of scenes and monologues Truckee HS Auditorium, 11725 Donner Pass Road 7:00 pm Adults $10/students $8 Information: 530-386-1929 www.facebook.com/THSCpresentsCollage The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
Dickson Realty’s January 2015 Newsletter 21 Sierra College, Rocklin Campus 8am-4pm, $126pp Spend the day on Treasure Island with San Francisco guide, Craig Smith. You will learn why they call it Treasure Island! You will stop for fantastic views of the City and the Bay while you learn about Treasure Island past and present. See the spectacular mural, Pan American Unity, painted by Diego Rivera at the 1940 World's Fair that was painted fresco style in steel panels and moved to the lobby of the theater on the City College Campus 1961. A three-course lunch is included. Information: www.sierracollege.edu 23 Bingo Bash Truckee HS cafeteria, 6:30 pm. Enjoy bingo, along with coffee and desserts to benefit the Truckee HS Senior Class of 2015’s Safe & Sober Grad Night. Prizes for each round including lift tickets, restaurant gift certificates and more. Information: www.truckeeboosters.org 23 - 25 Burton Mountain Festival Northstar, 8:30 - 4 pm daily Join Northstar and Burton for this on-mountain experience. Guests will be able to try out the latest gear for free, win fun prizes, and introduce the kids to sideways sliding in the Riglet Park. There will be an après party held at TC’s Pub on Saturday night, and additional activities, as well. Information: www.northstarcalifornia.com
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
Dickson Realty’s January 2015 Newsletter 23 Brew master Dinner, Northstar, 6:00 - 8:30 pm Northstar Chefs Steve Anderson and Dan Carter will partner with innovative breweries to meticulously pair 5-courses of seasonally inspired dishes with mouth-watering craft beers from the Petaluma, California based Lagunitas Brewing Company. Information: www.northstarcalifornia.com
31 Spaghetti Feed and Bingo Truckee Parks & Rec., 5:00 pm The evening begins with a no host bar, followed by dinner and includes raffle prizes and a silent auction. Bingo starts at 7 pm. Event benefits Meals on Wheels in Truckee and North Lake Tahoe.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440