Don't count on it!  Approximately 40% of all homes listed for sale in the Valley of the Sun (Greater Phoenix) MLS are currently vacant!   This is very troubling since most sellers think that their home is covered by the home insurance policy that they had in place when they were living there. 

All insurance property policies have a requirement that the dwelling they are insuring not be vacant for any greater than 30, 60, or 90 days at any time (depending on the policy) during the policy term.  If it is vacant longer than whatever number of days are specified, and becomes damaged during those later days, in many instances the insurance company will deny the claim because you failed to comply with the insuring requirements.

Sometimes you can get a “Vacancy Permit” which basically extends very basic coverages for your property for an additional short period of time to allow you time to either move back into the property yourself or find a renter.

So to be on the safe side we recommend that you call your insurance agent immediately and talk with them regarding your policy.

Hope this helps some of you sellers out there.

After a jump of almost half a percent in early June, for the last month and a half interest rates on fixed rate mortgages have remained fairly steady. 

Last week, the Standard & Poor stock average fell 5%.  Often the stock market slides in advance of slower economic growth.

The housing sector of the economy is down, homebuilders are hurting -- and so are financial companies, including mortgage companies, credit card services, consumer finance companies, and even those that help finance mergers and acquisitions.

Durable goods orders fell 0.5%.  Durable goods are purchases of items expected to last more than a year.  Refrigerators, cars, carpets, airplanes, etc.

Even so, economists are optimistic.  They believe that economic growth in the second quarter will exceed 3%.  Manufacturing is up in the United States, for example. 

But trucking is down.

A trade war could be developing, too.  Congress is very unhappy with China because they appear to purposely devalue their currency, making their manufactured goods cheaper to import than it costs to build things in the U.S.  So the Senate passed a bill that could "punish" China.  The result?  It might cost more to buy things.

That could potentially mean inflation, though that too appears to be under control for now.

During times of inflation, interest rates go up.

During times of strong economic growth, there is more danger of inflation. 

So are economists right?  Or is the stock market right?

You can't always trust the stock market because of the occasional rise of "irrational exuberance" and "cheerless gloom." But you cannot always trust economists, either -- because they focus on numbers and data, ignoring the effects of psychology on the markets -- which become exaggerated during upward and downward trends.

Right now the bond market is saying, things aren't great, but they're not so bad, either.  We just want "safe" investments -- not risky investments.

That's what happens when the future is uncertain.

Interest rates for A-paper mortgages will probably remain stable or slightly increase in the near future.  For those with sub-prime credit or an inability to adequately document income, things will be tight and loans may be difficult to obtain without paying drastically higher interest rates or making larger down payments.

As always, no predictions can be guaranteed.

Selling Your Home?  Here are 11 ways to easily boost your Curb Appeal in a weekend.  Check out this article.

http://www.homepages.com/article.aspx?ArticleID=182b7d7a-d61e-4eed-88fc-ef50013ace17

Feel Free to call us if you have any questions.

Randy & Paul