If you are considering any home remodeling, be sure to check out the latest Federal Tax Credits.  Some of the tax credits are for up to 30% for such things as windows, insulation, roofs, HVAC and even biomass stoves.  Homeowners can be eligible if the improvement is for an existing home and is your principal residence.  Installation fees typically are not eligible for the tax credit.  The IRS has issued guidelines to begin preparation for filing 2010 taxes worth grabbing now to begin planning for later in the year. 

Once again the troubled housing market remains the center of media attention as Goldman-Sachs faces federal charges related to its dealings around hedge funds.  The charges are bringing to light a segment of the financial markets that many average people didn't know existed.  In the world of hedge funds, the basic premise is to bet the something will or will not happen; not that dissimilar to the futures market wherein investors speculate future oil, corn or even cattle pricing.  What is disturbing many is ...

the nature of the wagers Goldman-Sachs was facilitating, betting against us, if you will.  Focus is being placed upon what has been called Abacus 2007-1, a portfolio of over 500,000 U.S. mortgages at the center of the betting.  This hedge fund was set up at the request of hedge fund guru John Paulson who wanted to wager that the US housing market would collapse.  It was comprised of 90 mortgage bond funds sourcing from a variety of mortgage lenders.   Many bond funds were of the sub-prime nature.  Investors could wager that the majority of the mortgages would default or they would be just fine over a period of time.  Investors including the German bank IKB Deutsche IndustrieBank stood to make or lose millions. The majority bet in favor of success including IKB which ultimately lost $150 million as the majority of the loans in the portfolio are in foreclosure or default.   The wicked web this created ultimately landed this German bank in the dubious club of bailed out too big to fail banks. 

Freddie Mac's survey of mortgage lenders reveals that the weekly rate for a thirty (30) year fixed rate mortgage remains flat at 5.07%.  The fifteen year fixed rate is at 4.39% (4.4% last week).  Across the country, points down averaged 0.7 to get the rate.   NAHB reports builder confidence is up.  NAHB data reports a nearly 100% fold increase in year over year single family residential building permit activity in the Pikes Peak region.  Nationally, the NAHB reports that residential permit activity is up 37% year over year.  Local builders are expressing enthusiasm because recent contracts and sales are at levels not seen in at least two years.  Conversely, multi-family has pretty much come to a halt in the Pikes Peak region.  Nationally, there is some movement but still down 33% year over year.  There is still quite a bit of vacancy in available multi-family units that must be absorbed before any real movement will occur.