The biggest news for St. Louis and national real estate this week is coming from the mortgage industry. Mortgage interest rates have dropped below 4% for a conventional 30 year fixed-rate loan. While the vast majority of loan applications are for refinances, we are seeing a pick up in purchase activity as a result.

With inventory holding steady and pending sales increasing slightly, the data found on the Nolting Report points to good news this week. In fact, our months of inventory average number has now dipped into the 6 – 7 range for the first time in a long while. While this number still indicates a buyer’s market, it is awfully close to a balanced market. I’m continuing to expect a healthy fall sales season as buyers who waited out the summer’s political and economic troubles (debt ceiling debate, downgrade of the economy by Standard and Poor’s) finally decide to get back in the market.

Within the last 7 days, Active Listings have dropped from 3993 to 3931 as many listing agreements expired on the last day of August.  We also saw a large number of end of the month closings, resulting in a our Pending number dropping from 1011 to 937.  This week should show a healthy beginning of the fall market in St. Louis as continued low interest rates push those who have been sitting on the sidelines onto the playing field.

This week’s slide in the number of Pending Contracts in St. Louis is accompanied by a reduction in the number of ACTIVE listings.  In fact, from a statistical standpoint, your home continues to have the same statistical likelihood of being selected by the buyer pool — fewer buyers have fewer homes to choose from.  Typical expectations for the 2nd half of August — showings tend to be on the slow side as families focus on getting their kids back to school.  After Labor Day, we start to see a pick up as families begin to focus on moving prior to the holidays.  Of course, the highest quality buyer — the one who NEEDS to find something — is always out there regardless of the time of year.

According to the Associated Press in Washington DC the Standard & Poor’s Ratings Services on Monday downgraded the credit ratings of Fannie Mae and Freddie Mac and other agencies linked to long-term U.S debt.

The agency also lowered the ratings for: farm lenders; long-term U.S. government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options. All the downgrades were from AAA to AA+, reflecting the same downgrade S&P made of long-term U.S. government debt on Friday.

The downgrades of the US credit rating from a AAA to AA+ means that the collective pool of risk in the United States is viewed as slightly riskier than it was in the past. The Federal debt will be repriced to match this higher risk with higher interest rates.

Monday’s downgrades of the mortgage giants Fannie and Freddie reflected their “direct reliance” on the U.S. government, S&P said.

Fannie and Freddie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans worth more than $5 trillion. As part of a nationalized system, they account for nearly all new mortgage loans. Their downgrade might force anyone looking to buy a home to pay higher mortgage rates.

Neither have commented on whether or not the credit rating from AAA to AA+ will effect there interest rates, but it is something to watch out for in the near future for first time home buyers. Still, mortgage rates will likely stay low and might  hit new record lows in the next few weeks. Debt issued by the nationalized  mortgage-finance companies is still an attractive option for skittish traders  looking for relatively safe investments.

Many commercial banks also are loaded down with  Fannie and Freddie debt, which could prompt them to raise more money and  constrain new lending to consumers and businesses. That could mean tougher  lending requirements for would-be buyers. In a bear market like today, it is imperative to have great representation. That is why at the Russell Nolting Group, Powered by Keller Williams, we study the St. Louis real estate market day in and day out to have to best knowledge of how to sell your home for the best price, and find the house you’ve always dreamed of. Call Russell at 314-677-6560.

The St. Louis real estate market took an expected hit last week.  Concerns about the financial stability of our country, back-to-school seasonal issues, and continued heat-dome weather contributed to reduced showings, offers, and contracts.  The good news is all over the media:  Interest rates continue to be at record-breaking lows!  Buyers will choose homes that are aggressively priced and move-in ready. For any information about your next home, please call Russell Nolting at 314-677-6560

According to a USA Today article, written by Sandra Block, “if you’re considering buying a home or planning to refinance, here’s some advice: lock in a mortgage rate. Now.”

Mortgage rates, which have been at historic lows for months, could shoot higher if lawmakers fail to reach an agreement to raise the debt ceiling by Tuesday, says Greg McBride, senior financial analyst for Bankrate.com.

A government default would cause Treasury bond prices to plummet, and yields would rise. “Uncle Sam’s borrowing rate is the baseline from which all consumer and business borrowing rates are determined,” McBride says. “If Uncle Sam’s costs go up, borrowing costs go up for everybody.”

Even if the default is short-lived, the ratings agencies have signaled they’ll downgrade U.S. debt. That would also drive up consumer rates, because the government would be forced to pay higher rates to bond investors.

So far, the debt-ceiling fracas hasn’t affected mortgage rates. The average rate for a 30-year fixed-rate mortgage for the week ended July 28 was 4.55%, only slightly higher than a week earlier, according to Freddie Mac. Rates slipped on Friday after the Commerce Department reported that the economy grew at a lower-than-expected 1.3% in the second quarter.

It is also even more important to have a great real estate agent when looking for a new home. St. Louis has low rates on mortgage’s and this would be a great time to lock into a low fixed mortgage rate now!  Russell Nolting is a dedicated listing specialist who can help price and sell home’s for his clients that are looking to move to or from the St. Louis real estate area.  Check out Russell’s home buyer’s search site. For any questions do not hesitate to call him at 314-677-6560.

In today’s economy there is one thing that is certain, money and credit make the world go round. There was a fox news report on how to increase your credit score by using just 15 minutes of your time. I believe that since trying to get a home loan in today’s real estate market is quite difficult now a days, keeping your credit in good standing is a must. Here are the eight tips to improving your credit:

1. Set up automatic bill payment or alerts. “The one thing you need to do is pay bills on time — that has the biggest impact on your score,” says Carrie Coghill, director of consumer education for FreeScore.com. One way to do thatis to set up automatic bill payment through your bank or credit union, at least for the typical minimum amounts of your bills, says Lita Epstein, author of”The Complete Idiot’s Guide to Improving Your Credit Score.” Or, if you’re not comfortable with automatic bill payment, Coghill recommends setting up regular email or text message alerts to remind you of bill due dates. On-time payments over a period of about six months can increase your score by as much as 50 points,says Epstein. “It shows you are getting responsible about your bills.”

2. Pay down revolving debt. If your credit card debt is more than 35% of your credit limit, it’s probably dragging your score down, but paying balances down can provide a quick boost. Experts recommend setting up regular automatic payments to make a dent in your debt or making one big extra payment if you can sell something on Craigslist or eBay or if you get a windfall. “People sometimes get a sizeable tax refund. I recommend using that to pay off debt,”says Doug Borkowski, director of the nonprofit Iowa State University Financial Counseling Clinic. A good rule to follow is this: For every $1,000 of available credit, try to use less than $350, says Clifton O’Neal, a spokesman for TransUnion.”Say you have three cards, each with a $1,000 limit,” O’Neal says. “One has a$500 balance, one has a $350 balance and one has a $250 balance. Pay on all of them, but pay more on the first one to bring it down under 35%.”

3. Pay your credit card bill early. If you use your card for everything from groceries to utilities to a pack of gum to get rewards — but pay in full each month — pay early. Because if you charge, say, $2,000 each month, but pay your bill after you get your statement, it looks as though you’re carrying a large balance when you’re not, Epstein says. “Check when the statement closing date is,”Epstein says. “Making the payment before the statement closing date — just five or six days early — can make a big difference over time. It will be reported to the credit bureaus as a $0 balance and will look like you’re holding less credit.”

4. Ask your credit card company to raise your limit. If you carry a credit card balance but have been making payments on time and make enough money to support a higher credit limit, a quick phone call to your credit card company could raise your score. A higher credit limit will lower your credit utilization ratio (the amount of available credit you’re using), experts say. However, experts also say it’s important to be honest about whether that step would tempt you to rack up more debt. “It’s about knowing yourself,asking, ‘Am I going to be responsible using that credit card?’” Borkowski says. “Because what if your limit is $4,000 and it gets raised to$8,000 and all you end up with is more credit card debt? But, for those who can handle it, yes, call and try to get your limit raised so you’re at a one-third or less [credit utilization ratio].”

5. Go online to dispute an item on your credit report. Some experts advise consumers to dispute a possible credit report error by registered mail, and to include evidence. But,let’s face it, many never get around to making copies, hunting down a stamp and heading to the post office. All three major credit bureaus offer the option of filing a dispute online — and it can be faster and easier, experts say. “The first thing to do is pull a copy of your credit report from all three bureaus.You can do it free once a year at AnnualCreditReport.com,” says O’Neal. “Look at each one and see if there’s anything you don’t recognize. If you have any questions about information on your reports, you can file a dispute online. You can track it online, too, so it’s a lot quicker.”

6. Just say noto too many inquiries. When you’re buying those cool new sunglasses and the cashier asks if you’d like to get a 10% discount by signing up for astore credit card, just say no. “Whenever you take new credit, you get a ding on your credit score, so don’t apply for new credit cards all the time,”Epstein says. In fact, she recommends applying for new credit, at most, twice a year.

7. Get a late paymentre moved from your credit report. In the “it-can’t-hurt-to-ask” category, it sometimes pays to call a creditor and ask to have a late payment removed from your credit report. “I always say, ‘just ask,’” says Borkowski, who recommends asking for the hardship department whenever you call a credit card company to make such a request. “A lot of times, general customer service might say they can’t help you, but the hardship department — or its equivalent — might,”Borkowski says. “They make a lot of money from the person who misses a payment every now and then but carries a big balance. They like to keep those customers.”

8. Play what-if with your credit score. Each consumer’s credit history is different, so Epstein recommends spending a few minutes at the consumer website CreditKarma.com, The site offers a peek at your credit score — though it’s not the widely used FICO score –and offers a simulator that allows you to see how different actions you could take would likely affect your score. “I use it all the time. I see whether my score is going up or down,” Epstein says. “You can also go in a week after you’ve done something you think might have impacted the score, and you can seethe change.”

It is often repeated that, when it comes to credit scores,there are no quick fixes. However, if you follow these tips, you could see a big improvement in your credit score — with just a small investment of time.

In this week’s update of the St. Louis residential real estate total market overview we show you that today’s real estate market is actually increasing in the number of houses being listed. This is a great time for buyers of the St. Louis area to find a great deal in this current market. This St. Louis residential real estate statistical analysis gives all the information for current home owners and future home owners to make a decision on whether or not to buy or sell. Russell Nolting is working diligently to find his clients’ the best deals in the St. Louis residential real estate market. Russell’s goal is to make his clients feel comfortable throughout the transaction and negotiate the best deal possible to leave both parties feeling satisfied. For any information on a home, please do not hesistate to call Russell at 314-677-6560.

This week’s updated St. Louis Residential Real Estate Total Market Overview. This gives you the total market overview of all Residential Real Estate in St. Louis. This gives the buyers and sellers out there in the range of $100,000 and up the information they need before they begin the process of becoming a new home owner and shows the probability of selling a home in the St. Louis Real Estate market today. Russell Nolting is a dedicated listing specialist in St. Louis and can make the life of a St. Louis Real Estate buyer or seller become much easier with his expertise. Please do not hesistate to contact him at 314-677-6560.