It”s nearly impossible for the average citizen to keep track of all events directly impacting housing and mortgage markets.  Professional mortgage lenders monitor the live trading of Mortgage-Backed Securities (MBS). Government and conventional mortgage rates are directly based upon MBS. So…what exactly is a MBS?

Compliments of Wikipedia

A mortgage-backed security (MBS) is an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans, most commonly on residential property.

First, mortgage loans are purchased from banks, mortgage companies, and other originators. Then, these loans are assembled into pools. This is done by government agencies, government-sponsored enterprises, and private entities, which may offer features to mitigate the risk of default associated with these mortgages.

Mortgage-backed securities represent claims on the principal and payments on the loans in the pool, through a process known as “securitization”. These securities are usually sold as bonds, but financial innovation has created a variety of securities that derive their ultimate value from mortgage pools.

In the United States, most MBS’s are issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), U.S. government-sponsored enterprises. Ginnie Mae, backed by the full faith and credit of the U.S. government, guarantees that investors receive timely payments.

Fannie Mae and Freddie Mac also provide certain guarantees and, while not backed by the full faith and credit of the U.S. government, have special authority to borrow from the U.S. Treasury. Some private institutions, such as brokerage firms, banks, and homebuilders, also securitize mortgages, known as “private-label” mortgage securities.

Residential mortgages in the United States have the option to pay more than the required monthly payment (curtailment) or to pay off the loan in its entirety (prepayment). Because curtailment and prepayment affect the remaining loan principal, the monthly cash flow of an MBS is not known in advance, and therefore presents an additional risk to MBS investors.

For information about Katy real estate, contact me directly at 713-818-2404 or via email. I have specialized in Katy real estate for over 20 years. Experience does count!

by Danielle Hale, Research Economist

• Headline CPI is the measure of inflation based on the Consumer Price Index most often discussed in the media because it is what most consumers actually feel in their pocket books—the changes in the prices of all goods. Headline CPI is used to adjust Treasury Inflation Protected Securities and individual income tax parameters.
• Core CPI is a measure of inflation also based on the Consumer Price Index and reported by the Bureau of Labor Statistics. It is called “Core” inflation, because it excludes volatile food and energy prices, which tend to swing in response to economic rather than monetary shocks. It tends to be used by monetary policy makers.
• Looking at data from the late 1990s through the present, we see that headline inflation is more varied and is frequently but not always higher than core inflation.
• Core inflation, has remained in the 1 to 3 percent range (denoted by green brackets).
• Whether the Fed is intentional about it or not, core CPI has tracked a 2 percent target fairly closely in the last decade. Even in recent months, when talk of inflation and deflation is grabbing headlines, Core CPI has remained at 1.7 to 1.8 percent on a year-over-year basis—well within the range it has maintained for the last 10 years.Copyright National Association of Realtors, Reprinted with permission

About today’s real estate market:

Courtesy of federalhousingtaxcredit.com

It seems like every time we turn on the evening news or read a newspaper headline, the bad news deepens our fear and concerns about the economy. With the news media in full throttle, using terms like “meltdown” and “crises”, it’s easy to see why you might lack confidence in buying and selling a home.

We have to remind ourselves that the media reports negative news, not positive. Their key objective is to pull in an audience and advertisers, not to make you feel good about yourself. They announce the unemployment rate rising despite the fact that millions of people are still working, making money, eating at restaurants and even buying and selling homes.

Are we really spinning out of control? Let’s look at the facts remembering that Katy is far ahead in financial recovery than other parts of the nation. The following data in based on national averages:

• The U.S. Gross Domestic Product is greater than Japan’s, Germany’s and China’s combined.
• Approximately 30% of American homes are owned free and clear and do not have a mortgage.
• Of the 70% that do have a mortgage, a full 96.7% are not in foreclosure.
• When mortgage rates fall to a record low, housing affordability surges to a record high.
• The Housing Affordability Index is at the highest level of affordability in history.
• First time home-buyers have more flexibility when entering into the real estate market because they aren’t concerned about selling another house. Given the low home prices, plentiful supply and low interest rates, its an optimal time for first-time buyers with a long-term view.
• First time home-buyers can get a tax credit for as much as 10% of a primary residence purchase up to $8000.
• If you own a home that doesn’t meet your current needs or you prefer to be in a different neighborhood, it’s the time to take advantage of so many homes in inventory. It’s a perfect time to find a home you love!
• If you are an investor, in certain areas, houses are on “sale”. If you are looking for a long-term investment in real estate, than you should be looking now. With the built in discount on interest rates and housing prices, smart investors can hold onto the property to build equity and long-term wealth.

  For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404.I have specialized in Katy real estate for over 20 years. Experience does count!

PathFinder Energy Services, Inc., a Houston based company, has announced it has begun work on their new corporate location in Katy.  The 34-acre site is located near the northwest corner of Colonial Parkway and the Grand Parkway on the north side of I-10. The site is adjacent to the 800,000 square-foot 99-Cents-Only warehouse.

This influx of PathFinder employees to the Katy area will be a boon to Katy real estate particularly to homes on the market.

According to The Houston Chronicle, “The firm anticipates spending more than $20 million on the technology center. Plans are to build a two-story facility and other buildings for a total of 225,000 square feet of space.”

Quoting PathFinder’s website, PathFinder is “one of a few companies worldwide that currently has the technological capability to offer a full complement of logging-while-drilling products and services.”

The Houston Chronicle continues, “PathFinder specializes in logging-while-drilling tools <that> provide real-time data about the physical properties of down-hole formations. In addition to indicating the possible presence of hydrocarbons, this data also assists in improving drilling performance.”

The new corporate location is anticipated to open in mid-2010. It will consolidate staff from several existing Houston-area PathFinder offices bringing real estate buyers to Katy.

For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404.I have specialized in Katy real estate for over 20 years. Experience does count!

Recently, the Katy Area Chamber of Commerce visited the David Weekley “Hansboro” model in Firethorne and enjoyed a “Business After Hours” event. A large group of members, approximately 90 people, attended the reception. It was quite the honor for David Weekley as it was the very first time that a Firethorne homebuilder has hosted such a Katy  Chamber event.

The 1,400-acre Firethorne master-planned community,  where the vibrancy of West Houston meets the small-town charm of Fulshear, is located in the acclaimed Katy Independent School District. It features 150-acres devoted to parks and recreational amenities including a 12-acre lake with surrounding greenbelt. There is also a sports field, hike-and-bike trails, parks and playgrounds. One of the nicest features is a wildlife observation area and a natural bird habitat–unique features for a Katy development.

Guests were complimentary of the David Weekley model and enjoyed the flow between rooms so accommodating for such a large group of party-goers. Sandee Horton, Senior Sales Consultant for David Weekley,  is pictured in the accompanying photo. From left-to-right in the photo are Stan Stanley of the Katy Area Economic Development Council, Sandee Horton, Realtor Rick Henderson, and Shawna Radke, another David Weekley Sales Consultant.

In addition to David Weekley, the Firethorne builder team includes Coventry Homes, Highland Homes, Partners in Building, Perry Homes and Plantation Homes.

It is always best to purchase new construction with the help of a Realtor; it will not cost you anything and it will give you the protection of a professional to look out for your best interests. This is very important. Contact me, I have special buyer incentives.

For more information about Firethorne homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404. I have specialized in Katy real estate for over 20 years. Experience does count!

Don’t believe everything you read or hear. Yes, the national economy seems to be in the toilet but, happily, Katy continues to defy dire predictions!

Although many Houston commercial developments have been canceled, Katy will soon be home to a major real estate project, Katy Main Street. The mixed-use project will occupy 86-acres located at the southwest corner of Interstate 10 and Pin Oak Road in Katy. Plans for Katy Main Street were unveiled by Katy’s Economic Development Council.

Occupants will include  entertainment, retail and office space. Specifically, there will be speculative retail space as well as several pad sites for a bank and restaurants.

The anchor store is a high-end grocery store, the name of which is still being kept under wraps. I am thinking maybe Central Grocery or Rice Emporium but keeping my fingers crossed for Whole Foods! What would you like to see?

Commenting on the grocery store, “It’s a very nice, high-end, well-known brand,” says J. Troy Maxwell, a principal with Woodcreek Development Co. Woodcreek and BPI Realty Services Inc. are developing Katy Main Street in a 50-50 partnership.

There will also be a full-service hotel and a convention center. Walgreen’s Co. has leased a space in the first phase of Katy Main Street; this initial portion of the real estate development is being built across the street from Katy Mills Mall.

Infrastructure for all of Katy Main Street is under development. Phase One is currently being built. Phase Two is projected for 2010.

For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404. I have specialized in Katy real estate for over 20 years. Experience does count!

After the indefinite postponement of KBR’s Katy campus, Katy business leaders have looked to the new medical developments as the major vehicles to bring new jobs to the Katy area and help Katy property values recover. Thank goodness, it’s all happy news concerning the construction of Katy’s Texas Children’s Hospital, Methodist Hospital and St. Luke’s Hospital. Construction proceeds “full speed ahead”!

Despite the economic downturn, all three major Houston hospitals are committed to their ongoing construction. Texas Children’s and Methodist are already under construction and St. Luke’s is in the final phase of architectural planning. According to The Houston Chronicle, “Officials at these hospitals say a shaky economy hasn’t halted plans to proceed with the facilities, which all will serve a rapidly expanding population and community.”

Located at the northwest corner of Barker Cypress and I-10, Texas Children’s Hospital is building a $220-million medical facility on 55 acres. It will include a 220,000-square-foot outpatient care center and 295,000-square-foot inpatient hospital. It is scheduled to open in the winter of 2010.

Per The Houston Chronicle, “The Katy-area is expected to grow by 50,000 people in the next five years, according to Katy-area economic development studies, and a large percentage of those residents will be children. No pediatric hospital exists in the area.“

Methodist Hospital is being built adjacent to Texas Children’s Hospital on a 70 acres. The 192-bed hospital will include an imaging center, labor and delivery facilities and 14 operating rooms. The hospital will have open-heart capability and an emergency room. The hospital can treat 30,000 patients annually. It has a budget of $300 million. Also being constructed is a medical office building that includes cancer radiation therapy. Methodist is slated to open fall 2010.

On 28 acres at the intersection of Grand Parkway and Kingsland, the new St. Luke’s Episcopal Hospital will be built. The planned facility will be a 90-bed, four-story hospital. “The hospital will include room for expansion and growth to meet the community’s needs”, said David Koontz, senior vice president of St. Luke’s Episcopal Health Systems. Plans are being made for a spring 2011 opening.

According to The Houston Chronicle, “Over the past year, crews have laid the infrastructure and utilities, developed the roadways and prepared the land for construction, Koontz said. A general contractor will be chosen sometime in January.

“The site is ready to build and we’re looking forward to some of the landscape architecture going in in the next couple of months,” Kootz said, adding that the entire facility will cost more than $100 million to build.

The new hospitals join Memorial Hermann Katy, the first Medical Center facility to make a committment to Katy and Katy residents. Memorial Hermann Katy, which has been fully operative for quite some time, is located just northwest of The Grand Parkway and I-10.

For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404. I have specialized in Katy real estate for over 20 years. Experience does count!

Being a Mom takes precedence over being a Katy TX Realtor. (Unfortunately, I don’t think my kiddos would necessarily agree with this statement. Do you have the same guilt-induced scenarios with your children?)  I was a Katy Realtor long before I adopted my children. My career, like motherhood, is very time-consuming. It’s also extremely rewarding but never as meaningful as parenting my children.

Most of this time, I’ve been a single mother and have continued selling real estate with the exception of a  two-year break when my son needed intensive physical therapy. I love my children and I love my professional life, too. However, when faced with a decision between being a Mom and a Realtor, of course, I chose parenthood.

My daughter turned 17 on Saturday. It’s almost impossible to think about how old she is and how soon she will be college bound! The older I get, the faster time flies. No longer are we celebrating at Chuck E. Cheese but, rather, she picked Friday’s at Katy Mills Mall for her birthday dinner. Her boyfriend, whom I really like, came, too. My, how times have changed.

It’s never bothered my daughter that her birthday is so close to Christmas. Now, that she “only wants money”, she thinks the timing is awesome considering the pre-Christmas sales. It’s all about spending that birthday money, as quickly as possible, on clothes! From my vantage point, it’s all about fighting those crowds, inside and outside in the parking lots. Gotta’ be a good Mom so, into the chaos, I venture.

Saturday afternoon, once I hit the streets inside the Katy Mills Mall perimeter, those with the stop signs, things really unraveled. I am not exaggerating, it took more than 10 minutes to get through each stop sign. There were three stop signs! Are you headed to Katy Mills Mall for the pre-or-post Christmas sales? Here’s my advice: Do what I did when returning for dinner, take the Pin Oak exit!

For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404. I have specialized in Katy real estate for over 20 years. Experience does count!

LaCenterra and the Katy Chamber of Commerce invite you to participate in their Annual Tree Lighting fesitivies! Find your holiday cheer on Saturday, November 29, starting at 5:30 p.m. Cinco Ranch High School’s Bravo and VIVA! choirs will perform holiday favorites.

There will be special events for children including the Teddy Bear Parade. Little ones are encouraged to bring their favorite stuffed animal(s) to help guide Santa to LaCenterra’s Christmas tree.

The Salvation Army’s Bears and Blankets Annual Drive will kick-off at the tree lighting and continue until December 12. Please bring stuffed animals, blankets or winter wear for donation to benefit the Salvation Army’s Angel Christmas Tree tradition.

For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404. I have specialized in Katy real estate for over 19 years. Experience does count!

Sorry to be late with this announcement, I just received the press release. Tomorrow’s party sounds like a blast and a chance to win prizes, always my favorite.

On October 27th the Farmers Market at LaCenterra celebrated it’s One Year Anniversary!

Tomorrow, Saturday, November 1st, the Farmers Market is holding a Customer Appreciation Day Celebration and you are invited to attend. Like the market, the party will be from 8:00 a.m. to 12:00 p.m.

Prizes will be given away every hour during the celebration!

The Farmers Market at LaCenterra sends you, “A great big thank you for your loyal support and business in the last year. We appreciate your patronage.”

The Farmers Market at LaCenterra, a weekly Saturday market, is located at LaCenterra at the southwest corner of Hwy 99, The Grand Parkway, and Cinco Ranch Blvd.

For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404.  I have specialized in Katy real estate for over 19 years. Experience does count!