Rates on 30-year fixed-rate mortgages dropped to their lowest levels since May, Freddie Mac reported on Thursday.

The 30-year fixed-rate mortgage averaged 4.83% for the week ending Nov. 19, down from last week's 4.91% average, according to Freddie Mac's weekly survey of conforming mortgage rates. The mortgage averaged 6.04% a year ago.

Fifteen-year fixed-rate mortgages also dropped, averaging 4.32% this week, down from 4.36% last week and 5.73% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.25% this week, down from 4.29% last week and 5.87% a year ago. And one-year Treasury-indexed ARMs averaged 4.35%, down from 4.46% last week and 5.29% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 point, while the 15-year fixed-rate mortgage as well as the ARMs required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

"Interest rates on 30-year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21, while 15-year fixed rates were the lowest since our records began in 1991," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release.

"Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan. Moreover, for the fourth consecutive quarter, more than 95% of prime borrowers who originally had an ARM selected a conventional fixed-rate mortgage in the third quarter of this year," he said.

Original article from the Wall Street Journal
States hungry for revenue are turning to taxpayers to make up the shortfall as they deplete rainy-day and economic-stimulus funds. To avert a popular revolt, many are resorting to a so-called millionaire's tax, which puts the burden on a smaller group of the very well-heeled.

A flurry of rate increases occurred this year, and tax analysts say the trend will accelerate in 2010.

In response, some wealthy residents are rethinking their financial strategies, including where they reside. They may see some sense to moving before they sell a business, for example, or stop using certain kinds of trusts.

Doug Stanley, an attorney in the St. Louis office of law firm Bryan Cave LLP, said high personal income-tax rates are "definitely on the radar" of the wealthy clients he advises.

For the rich in California, the question can be "do you really need to live in this state when you have a state next door that has a zero income-tax rate?" said Don Weigandt, a wealth adviser in the Los Angeles office of J.P. Morgan Private Bank. That next-door neighbor is Nevada.

Californians, who have a top individual rate of 10.55% on income over $1 million, actually gained in sideways fashion from recent rate raises around the country. The state dropped below Hawaii, Oregon and New Jersey on the list of places with the highest individual tax rates.

Hawaii enacted a top individual rate of 11% on income over $200,000, Oregon has a new 11% rate on income over $250,000, and New Jersey enacted a 10.75% rate on income above $1 million.

The conservative-leaning Tax Foundation in Washington tracks individual income tax rates, and Joseph D. Henchman, its tax counsel and director of state projects, predicts more states will follow suit with rate increases next year.

If state revenues haven't recovered by then, he said, "we'll see a bitter fight over huge budget shortfalls across the country." Historically, state revenues recover after the general economic recovery, so the chances of such a scenario are high, Mr. Henchman said.

"These millionaire's tax increases will be very appealing because they help a short-term problem, even though they cause significant long-term damage," he said.

The policy of raising state rates on the rich has failed before.

Through the early 1990s, several states maintained double-digit income-tax rates, but eventually brought them down partly because legislators realized they were driving out entrepreneurs. To keep good talent, create jobs and drive economic growth, state tax systems had to be competitive with their neighbors.

Mr. Weigandt said the issue of high rates comes up with his clients most often in the context of selling a business. The question then is "what can I do about my taxes," and it can be tempting to relocate when the answer is that the tax bill could be cut by as much as 40% by just changing residence to Florida, Texas, Washington, Wyoming or another state with low or zero personal income tax.

Picking up stakes needs careful thought and planning, though. States have gotten increasingly aggressive about tracking former residents and seeking taxes from them after they have moved.
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In the private, gated community of Montreux, we have seen a lot of buyers coming from California simply because of the taxes. The Nevada tax advantages are enough in most cases for luxury real estate buyers to move their businesses (and their families) to Nevada. Most have found Reno to be a great area for business, recreation and family life.

To learn more about Montreux real estate opportunities, or other luxury Reno real estate, please contact Brooke Sullivan today.

How many times have you been with a real estate professional on a house tour that went something like this: "Here's the bathroom... here's the toilet... here's the kitchen... here's the refrigerator"... and so on?

As luxury real estate Buyers become more and more savvy--often purchasing multiple properties in a lifetime--the time spent with a luxury real estate professional has taken on a different role. No longer does a realtor need to show off the basics. These items are either self explanatory to well experienced Buyers, or often they have been well viewed through virtual tours and internet listing displays.

What a successful real estate agent should now demonstrate is what makes your home "Sizzle"? How is your house different than other homes? What is the emotional tie to the home? Why should a buyer purchase this house?

Good agents must learn to tell a story. For example, instead of pointing out the obvious "here's the kitchen", the agent can paint a picture of using that fabulous gourmet kitchen for an intimate dinner party. "There is plenty of room for your family and close friends to share a bottle of wine around these comfortable bar stools and expansive granite bar, while the family chef works his/her magic on the very best range. What an ideal space for everyone to be together in this great room layout! You know everyone follows the smell of good cooking."

This story telling idea works best when you know some details about the Buyers... what some of their "triggers" and preferences are. If they hate to cook, skip painting a picture about the highlights of the SubZero Refrigerator. Instead focus on the homes proximity to some of the areas best restaurants. If they have children, discuss how the bonus room would be the ideal place for game nights and sleep-over's. And, for the couple with no kids, that same bonus room has the perfect windows for an exercise room, providing views and ventilation!

Don't Be a Helicopter

In order for the Buyer to truly feel an emotional connection to a home, do not hover over them throughout the house. Paint the picture, see if there is interest in the home, and then get out of the way! There is nothing worse than following a prospective Buyer from room to room, hovering at each step.

After the Buyers have seen the home, give them some space. Offer to step out onto the patio, while they take a seat in the family room and enjoy the view. If they are captivated by the back yard landscaping, offer them a spot on one of the patio chairs with the excuse of checking your voicemail inside. This will give them a chance to discuss the pros and cons of the house, and most importantly, the opportunity to envision themselves living in the home. Of course, this picture does not include even their most beloved Montreux real estate agent!

For those first-time buyers who thought they missed out on the credit, you've got a second window.

Congress approved the extension (and the expansion) of the first-time home-buyer tax credit this week, lengthening the window for people to get up to $8,000 for buying their first home.

To be eligible, taxpayers must purchase their home, or be locked into a contract to close, before midnight on April 30. They need to close on that home before midnight on June 30.

Income restrictions for tax credit eligibility were also raised. To be eligible for the full credit, a single taxpayer can now make up to $125,000 a year; joint filers can earn up to $225,000, according to the National Association of Realtors.

This is great news for luxury real estate in general, especially Reno real estate and Montreux real estate. More people will qualify for the credit, especially in parts of the country with higher costs of living.

This tax credit will help to stimulate areas of the luxury real estate market that may not have been impacted by the old version of the credit. The Reno luxury real estate market will see increased sales because of this action by Congress.

In addition to first-time buyers, current homeowners will also be able to benefit. Move-up buyers could be eligible for a $6,500 credit for the purchase of their next home, if they've lived in their current home for at least five out of the past eight years.