Chattanooga Blog

another mortgage rate update

2008-10-16T10:23:00.001-07:00

Economic reports this morning indicate that the economy is weaker than expected. The biggest surprise is a large drop in industrial production, although the Consumer Price Index also helped lessen inflation concerns.

It is fairly encouraging to me that the markets have stabilized enough that the economic reports are impacting market swings. Up until the last few days it did not matter what the economy was doing - investors were pulling out of the stock and the bond markets.

The Daily Rate Advisory is making a lock recommendation recommendation if you are closing in 7 days, but a float recommendation for loans closing later than 7 days.

The thinking is that rates will not significantly change in the next week, but for longer times the economy is expected to show continued weakness.

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Home rates finally show a break

2008-10-15T14:54:00.001-07:00

It has been almost two weeks since the mortgage bailout plan was signed into law. The initial bond market was extremely positive once the initial details came out. The market response since then has not been good.

The stock market and the bond market showed consistent drops over several days. This was duplicated in the global markets. So much so that the Treasury held emergency forced meeting with major US bankers to announce a change of focus for the bailout from purchasing defaulted mortgages to purchasing equity in banks.

The hope is to encourage an unfreezing of the credit markets by a massive infusion of capital directly to the banks.This is a more direct recapitalization approach that removing bad mortgages from the bank balance sheets.

The stock markets responded quickly with a tremendous rebound, only to lose the gains because of economic reports that reveal a declining economy.

Bond markets had for the most part continued to decline, not attracting investors. Even the economic reports showing a low threat of inflation did not draw investors to bonds.

Until this afternoon, there was finally some new investment into the bond markets.

Hopefully, this will stabilize the mortgage interest rates and help draw them back down after their steady rise over the last several days.

Publix opens in Hixson

2008-10-11T06:11:00.001-07:00

The grand opening of the new Publix was held Wednesday. Despite the strong rain and the early morning time (6:45am) the turnout was strong. This is the second major grocery chain opening in Hixson in the last couple months.

The Times Free Press ran an article Wednesday describing the growing competition among grocers in Hixson.

The Chattanoogan article on the opening focused on the opening of the Creek Plantation Village . This is a 78,490 sqare foot neighborhood shopping center, managed by Watkins Retail Group.

It is part of the growth that is being experienced in our Hixson area.

Visit my website www.RichardSmithHomeLoans.com
My other blog www.RichardsRealEstateThoughts.com and Local Hamilton County
C ell 423-280-0345 Email rsmith@aamonline.com
Please join me on LinkedIn, Facebook, and Twitter

Alhambra Shrine Circus

2008-10-07T18:26:00.000-07:00

The Alambra Shrine circus is this week, October 9-12. The circus is a well known and well attended event in Chattanooga. The circus is held at Camp Jordan

Show times are
2008 Performances
Thursday, Oct. 9th, 7:00pm
Friday, Oct. 10th, 7:30pm
Saturday, Oct. 11th, 1:00pm, 4:00pm, 7:30pm
Sunday, Oct. 12th, 1:00pm, 4:30pm

Ticket information:

For Ticket Information Call The Alhambra Shrine: 423-892-0223
http://www.alhambrashrine.com/

Red Bank Lions

2008-10-07T18:16:00.000-07:00

The Red Bank Lions Club expects to get their pecans for the annual Christmas sales by November 15. The pecans and Christmas tree sales are a tradition in Red Bank. Many schools and other organizations help with the pecan sales. The proceeds are used to support the Kids Sight program.

The Lions also make a donation to the organizations that help sell the pecans. Last year over $2800 was given to participating schools and other programs.

If you are interested in joining the Red Bank Lions, please call. It is a fun and active group. Men and women are welcome.

Three Sisters Music Festival

2008-10-04T20:32:00.000-07:00

My wife and I spent the afternoon at the Three Sisters Music Festival at Ross' Landing today. We saw the Dismembered Tennesseans and Chattam County Line. Excellent shows. Chatham County Line was a new group for me, but they had a following in the audience. Several people called out some requests.

Excellent vocals and harmonies.

the weather was perfect, and we saw several friends there.

Congratulations Downtown Partnership and Fletcher Bright, an event sponsor.

Bailout bill and pork

2008-10-04T06:25:00.000-07:00

If the $700 billion bailout is such a good idea, why was it necessary to add so much to sweeten it before the bill could be passed?

And if the $700 billion bailout is such a bad idea, why was it passed on the basis of the unrelated addons that total another $110 billion?

I am generally in favor of the bailout, with provisions for pricing the purchases in line with market value, with provisions for oversight and review,and with more detail procedures for modifying defaulted mortgages (which mortgages, what qualifications, what terms).

There is more detail in the pork addons than there is in the $700 billion bailout portion.

Finally, there is no provision to stabilize the tightening credit markets, other than hope the promise of $700 billion for bad mortgage securities will restore banker confidence in extending credit to consumers and to other banks.

We need to ask Representative Wamp why he changed his vote on the bailout from NO to YES, after the bill was changed to add other legislation. What made the loaded bill better than the streamlined version?

We need to ask Senators Alexander and Corker why they voted YES with a bill so short on details on the spending of $700 billion and so long on details about the extra spending.

TENNESSEE Representatives

Democrats — Cohen, Y; Cooper, Y; Davis, Lincoln, N; Gordon, Y; Tanner, Y.

Republicans — Blackburn, N; Davis, David, N; Duncan, N; Wamp, Y.

Here is a link to my post on the bailout addons , from www.RichardsRealEstateThoughs.com.

Here is link to a Rismedia story summarizing some of non related addons. The article is entitled "How Sweet It Is? ".

Here is the bill - 450 pages. Did they read it? Did they know what was included when they voted?

There is nothing in the bill to encourage new home buyers. They ignored reinstating seller funded down payment assistance (HR 6694), which would qualify more home buyers and go a long way to helping restore the housing market. With so much in unrelated additions, one might think that a related bill could have been added, especially one that costs the taxpayers nothing.

Photos from Susan G Komen Race

2008-10-02T19:50:00.000-07:00

Morning Pointe Assisted Living ground breaking

2008-10-02T15:41:00.000-07:00

Today Morning Pointe Assisted Living Residence held a well attended ground breaking for the new Greenbriar Cove, a senior healthcare services campus. The total development will be $75 million, and be built in 3 phrases on 20 acres on the former Hixson farm.

The Hixson High School band played. The Hixson family was represented and honored. Several local dignitaries, including Claude Ramsey, Hamilton County Mayor, Tom Wilson of the Chattanooga Chamber, and Sally Brewer of the Alzheimer's Association, spoke about the tremendous economic impact of the retirement community and of the great care that the new campus will offer our seniors.

Susan G Komen Race tomorrow

2008-09-27T20:17:00.000-07:00

Tomorrow the annual Susan G Komen race takes place. It is for breast cancer research and awareness. This is the fourth year my wife and I have run/walked. I'm a little out of shape this year, so will not improve my time. But it will be a great event.

Here is information on the Chattanooga Race for the Cure.

Here is my Komen Race for the Cure fundraising site.

Green Drinks at Habitat for Humanity

2008-09-24T17:51:00.000-07:00

Green Drinks held a reception at Habitat Chattanooga held a reception tonight to showcase the revovations to their ReStore shop. The store has lamps, appliances, woodwork, all kinds of house items - all good quality. The proceeds go to help fund Habitat homes.

Habitat is working on four homes right now and is looking for new lots. They are also starting to look for sponsors for the Riverbend house.

There is also a very active calendar of upcoming Green events. This was my first time at Green Drinks. It is an interesting idea - just a gathering of people who have some interest in sound ecological lifestyles. If you know more about the group, please comment. I hope to attend more of their events.

Modern Dave's Cafe provided the catering - the food was very good. Especially the smoked turkey and sauce.

Center for Creative Arts - Mona Golabek

2008-09-23T19:43:00.000-07:00

I made it to the concert by Mona Golabek at Chattanooga High School Center for Creative Arts. She gave a wonderful perfomance, a one woman show, presenting her book which celebrates her mother who was a refugee in Britain from Nazi Germany. She played wonderful and powerful classical piano to accompany her recitals from her book.

It was a moving performance, at times bringing tears.

Here is an NPR interview of her discussing her book.

She was invited to Chattanooga as part of the Facing History curriculum and the Community Conversation series.

High speed rail

2008-09-22T15:50:00.000-07:00

The high speed rail system was the subject of an article in the Times Free Press again this morning. That is an exciting prospect in my mind, just another great infrastructure for Chattanooga. The other great prospect is fiber optic cable.

Both of these would ensure Chattanooga future as a growth center in a growth region.

Treasury bailout

2008-09-21T11:03:00.000-07:00

The recent post on my real estate blog has this video about the upcoming Congressional debate for the Treasury plan to purchase $700 billion of mortgage assets.

Mortgage bailout and party politics

2008-09-20T18:27:00.000-07:00

The housing bill in July was intended to provide support for the housing market, but partisan politics made numerous additions. The importance of the bill required all these additions to be added. Such additions should have been debated and passed or denied on their own merits.

Will Democrats and Republican play similar games with this legislation?

Partisan additions threaten to delay and to load down emergency mortgage bailout legislation.

Chattanooga Memory Walk, St Peter's Team

2008-09-20T09:41:00.000-07:00

My wife and I just finished the Chattanooga Memory Walk at AT&T Field. It was a good turnout, my estimate about 1000 walkers. There were several teams present. Everyone has a family member or friend effected by Alzheimer's Disease. This year the leaders started using internet registration and fund raising. They hope to increase use of the Internet for next year's walk.

Next week is the Susan G Komen cancer walk.

I have posted on the three walks on my http://www.richardsrealestatethoughts.com/ blog. Please see http://activerain.com/blogsview/672101/Cancer-Walks-in-Chattanooga.

My websites for contributions are

Susan G Komen fund raising site

Prostate Cancer fund raising site

Here is Louie Lookout leading the walkers.

New Blog

2008-09-19T18:05:00.000-07:00

This is my first blog for Chattanooga. My other blog www.RichardsRealEstateThoughts.com focuses primarily mortgages and the real estate industry. There is much about local Chattanooga on it, but the focus is primarily housing.

I am excited to add this blog, to focus on Chattanooga.