When people ask me what’s hot in the housing market today I would have to say Green Building or Going Green as many say. In past blogs I’ve written we’re going to have to embrace natural resources to heat, cool, recycle water and light our homes. As many of the green home technologies and products advance, prices are starting to become more affordable and cost justifiable.

I believe you really need to research and consider all Green Products when building or remodeling a home today. The demand for green energy efficient homes will be very high in just a few years.

For those of you that don’t personally know me, I’m not a tree hugger. I believe that as long as a truck fueled by diesel picks up my recyclable products then takes them to a recycling facility powered by a coal power plant isn’t saving or helping the earth’s eco system at all. And.…. many or the products after recycled aren’t suitable or in demand for use in the manufacturing of new consumer or industrial products.

When consumers or special interest groups bring things like Green Building to the forefront of America’s attention there seems to be someone that presents a different twist to the message glorifying their product and how it’s Green. To my understanding Green building should incorporate proper land use management, total energy conservation, products that were environmentally safe to make and wildlife habitat protection or replacement. All the products used in building any new Green home shouldn’t damage the environment in their manufacturing process or have waste that cannot be properly disposed of or is toxic. Say….. like vinyl siding does. Bottom line for me to consider something a Green Product it cannot harm the environment in any way when it’s manufactured, recycled or disposed of. For now we’re still going to have the diesel trucks moving these entire Green Products around the US. But the good news is they’re making diesel engines run cleaner all the time.

I just read an article with a new twist for going Green. It seems some of the hard hit vacation properties claim one way to go Green is to buy into the new fractional ownership housing now being offered at many resort properties. Fractional ownership is not a timeshare. Fractional ownership is taking a number of people; let’s say 4 families and they split the cost on a 500K beach condo. It’s easy to understand this opens the market up to a lot of people wanting second homes in expensive resort areas. But to consider this going Green is a stretch to me. David H. Schwartz, a real estate broker in Mammoth Lakes, CA was quoted in Forbes by saying. I observed, “Vacation homeowners using their home no more than one week a month. This is considered wasteful and definitely not green”. He goes on to claim fractional ownership is Green in every way. Sorry, David but I don’t buy it. The only Green involved here is the amount of Green Cash you’ll need to bring to closing table. Don’t get me wrong, fractional ownership is great, I can see myself buying one. But to claim fractional ownership is within the Green Movement is nuttier than a Snickers Bar.

If you are smart, and do your homework, buying or building a Green Home will have it’s pay offs! Both in energy and eco savings!

Trying to fight off a recession the Federal Reserve has cut the short term interest rates another .50%. This takes their benchmark rate to 3%. The Fed has now cut rates by 1.25% in just 9 days. They claim this is to moderate growth but cautions there are risk that still remains.

So what’s up with mortgage rates? Since the FED announcement mortgage rates have climbed. Nationally mortgage rates have climbed .375% since the FED cut rates 1.25%. Why?? Because the rate cut is on short term money, not long term money. It’s meant to stimulate the business sector not the housing sector. I believe the FED will have to lower mortgages rates in the next 60 days to help the housing sector out. One of the main concerns in the mortgage industry right now is the fact foreclosures have risen by 75% over the last 12 months. This causes more risk load that’s factored into current rates. I firmly believe some people looking to buy a home put way to much attention on interest rates. I’m asked several times a day what the rate is?? My standard answer is “depends”. There are still many types of mortgage programs out there. I simply have to know more about your long term goals!

Here are some facts I found interesting on 30 year mortgages that Jim Cramer (Mad Money) published. Did you know that only 28 times since 1971 have rates been below 6%? That means 28 out 444 months were under 6%. Only 2 months have ever been below 5.50%, March 2004 at 5.45%, June 2003 at 5.23%. From November 1978 to November 1990 mortgage rates were double digits nearly every month – including the high of 18.25 in October 1981. So rates shouldn’t be an issue to anyone thinking about buying a home today. If they are, then they’re misinformed or making poor excuses.
Mark my words a turnaround in is INEVITABLE! Buy now!!