Wakefield,Reutlinger
o r s .c o m
Rr e al t
W
Insider
REAL ESTATE
A Publication of Wakefield, Reutlinger and Company/Realtors
Wakefield, Reutlinger agent,
Mary Lowry, who is well known By year’s end, the Treasury yield is expected to rise
in the horse community, has
produced a wonderful video
about the World Equestrian
Games coming to the Kentucky mortgage rate on FHA and conventional loans
Horse Park in Lexington this fall. will be 5.7 percent by the end of the year,
The “WEGS” are the Olympics of assuming normal financial market patterns.
horse sports, showcasing 8
different equine disciplines.
Over 50 nations are expected
to participate. The Games are
anticipated to have a $150+
million impact on the state of
Kentucky, plus NBC will provide
national TV coverage. The
WEG runs from September 25 ‐
October 10, 2010. For more
information visit alltechfei‐
games.com. Mary is available to
present the WEG video at your
club or civic event. She can be
contacted at 552‐1477
ALL THE WAY HOME...425-0225
AND COMPANY/REALTORS
Vol. 1 No. 24 May 2010
NAR 10-year Treasury Yield and Mortgage Rate Forecast
The 10-year Treasury yield has risen to about Because of the lingering effects of the financial
3.9 percent in recent days. It had averaged 3.3 per- market crisis, non-conventional and non-government
cent in 2009, and was at around 3.7 percent in the backed mortgages of jumbo and commercial real
first quarter of this year. estate had been largely frozen. But as the financial
The reason for the rise in 10-year Treasury could be market exhibits clear signs of stabilization and as
from investors’ belief in economic recovery and a banks continue to build up their capital buffer, it is
shift away from risk-free assets (as in Treasury). only a matter of time before lenders start lending to
Another reason is due to a very high budget deficit. non-government backed sectors. So the underwriting
The government can only finance such large loans standards for jumbo and commercial real estate
by offering higher rates to investors. mortgages will become less stringent over time.
The 30-year mortgage rate is priced off the 10-year
Treasury. Typically the spread is about 150 basis NAR Interest Rate Forecast April 12, 2010
points (or 1.5 percentage points); this means that if By Lawrence Yun, Chief Economist
the Treasury is 3.9 percent, then the average GDP 2010 Q1: +2.5% GDP 2010 Q2: +1.8%
mortgage rate will be higher by 1.5 percentage GDP 2010 Q3: +2.3%
points to 5.4 percent. Unemployment rate by the year-end 2010: 9.9%
Average 30-year fixed mortgage rate by the year-end
to 4.2 percent according to the Blue Chip Consensus 2010: 5.7%
The U.S. government’s borrowing rates shot up the
Forecast. That would mean that the average past two weeks. That means borrowing rates for
nearly everything will also rise.
The only borrowing rates that might fall are for com-
mercial real estate and jumbo residential mortgages.
Louisville
Year to Date at a Glance
Real Estate UPDATE
Sales by Price Range-Single Family Residential & Condo Average Price
Price Range Statistics 1/1-3/31 09 1/1-3/31 10 % Change January 1 - March 31
Up to $99,999 730 714 -2.2 %
$100,000-$199,999 819 1023 +24.9%
$200,000-$299,999 252 387 +53.6%
$300,000-$399,999 94 133 +41.5%
$400,000-$499,999 36 40 +11.1%
$500,000+ 36 42 +16.7 %
Average Cumulative Days on Market
Month at a Glance January 1 - March 31
Residential Sales Stats Single Family Residential & Condo
Jan 1 - Mar 31 Jan 1 - Mar 31 Jan1-Mar 31
2008 2009 2010
Houses Sold 2694 1967 2339
Average Selling Price $163,024 $148,208 $157,511
Median Selling Price $132,000 $122,400 $131,900
Source: Greater Louisville MLS.
With the interest rates staying very low,
it’s still a great time to buy a house.
Call me and let me help you
take advantage of this once in a
lifetime opportunity!

Mortgage Rates
30 Year Fixed 5.125%
15 Year Fixed 4.375%
30 Year FHA 5%
This is not intended to solicit a currently listed property. Information
is deemed reliable, but not guaranteed.

Big Impact, Low Cost Remodeling Projects
Tidy up kitchen cabinets.
Buyers open kitchen cabinets.
Add rollout organizing trays so
when buyers peek in, they feel like
there’s lots of room for their stuff.
Add or replace tile.
By re-tiling very inexpensively,
you make a room look way cleaner
that it was. Pay only for the low-
cost tile and labor to replace a dated
backsplash or re-tile a bathroom.
Add a breakfast bar.
When a wall separates a kitchen
from a family room, cut out an
opening to create a breakfast bar.
Add an oversized granite slab/
breakfast bar, and put chairs in
front of it. That cost about $600.
Install granite tile instead of a slab.
Rather than a $5,000 granite up-
grade, put in 12-inch granite tiles
for about $300 in materials and get
very high impact for little money.
Freshen up a bathroom without
re-tiling.
Put in a new medicine cabinet for
$100 to $150, light fixtures for about
$100, a faucet for $50 to $75, and a
vanity for $200. Existing grout can
be lightly scraped and re-grouted,
when buffed it will look brand new.
Also install glass shower doors. A
French door adds a lot of panache
and elegance for $250.
Freshen up the basement.
Fill in cracks of a cement or block
basement, paint with waterproofing
paint. Add a top coat to add color.
Paint the basement floor with a
good floor paint.
Energy Efficiency Rebate Program
As part of the federal economic
stimulus bill, on April 22 the state
will begin offering $4,000,000 in
rebates to Kentucky residents who
replace old appliances with U.S.
certified Energy Star models pur-
chased at Kentucky stores on or
after that date. Once the program
starts on April 22, Kentucky resi-
dents can reserve rebates at
www.KYappliancerebates.com
and have 14 days to complete the
purchase and rebate paperwork.
Kentucky Eligible Appliance
Categories and Rebates
•Room air conditioners - $40
•Dishwashers - $50
•Refrigerators - $50
•Freezers - $50
•High-efficiency gas storage water
heaters (EF>=0.62) - $50
•Central air conditioners - $100
•Clothes washers - $100
•High-performance gas storage water
heaters (EF>=0.67) - $100
•Gas boilers - $200
•Gas tankless water heaters - $300
•Gas furnaces - $300
•Solar water heaters (gas or electric
backup) - $400
•Air source heat pumps - $400
•Geothermal heat pumps - $400
•Electric pump water heaters - $400
Source: www.energy.ky.gov/recovery/
rebate/

Nothing poses a greater problem is simply a hole that water oozes through, either from surface
Solutions to Common long-term risk to your runoff or from wet soil. If the water is coming up through the floor, or at
home’s value than a wet
Wet-Basement Problems basement. If left unchecked,
the joint where floor and walls meet, the problem is ground water, and
plugs won’t do the trick- see below.
basement moisture can ruin Restore the crown
floors and walls, encourage mold, even damage roofing. Some wet base- If the gutters are working and you’ve plugged obvious holes, but you still
ments are easy to cure, simply by making sure gutters stay clear and by see water dribbling into your basement or crawl space from high on the
diverting gutter water well away from the foundation. But if the problem foundation walls, then surface water isn’t draining away from the house.
comes from other sources—water flowing toward the house on the surface, Your house should sit on a
seeping in from underground, or backing up through municipal storm drains, “crown” of soil that slopes at least FEATURED PROPERTY
take more aggressive action. Here’s help with figuring out what may be six inches over the first 10 feet in
causing your water trouble, and basement waterproofing strategies to try. all directions. Over time, the soil
Add underground piping may have settled. Build it back up
If downspouts are dumping too close to the house, you can get water the with more dirt. One cubic yard of
recommended five feet or more away from the foundation by adding roll a water-shedding clay-loam mix
-out plastic or metal gutter extenders. But they aren’t the neatest or most from a landscape supply house
effective long-term solution. Permanent underground piping is invisible costs around $30 and is enough
and capable of moving large quantities of runoff much farther from your for a two-foot-wide, three-inch-
house. For about $10 a foot, a landscaper or waterproofing contractor deep layer along 57 feet of
will dig a trench and install piping to carry the water safely away. foundation.
Plug gaps
If you see water dribbling into the basement through cracks or gaps around For complete article: houselogic.com/
plumbing pipes, you can plug the openings yourself with hydraulic articles/8-solutions-to-common-wet-
cement or polyurethane caulk for less than $20. Plugs work when the basement-problems/
By: Jeanne Huber