30-year fixed mortgage

Consumers inspired by Wednesday's rate cuts in overnight lending rates shouldn't count on consumer interest rates falling in response
Last week, the average rate for a 30-year fixed mortgage was 5.48%, one of the lowest rates since 2004, according to Freddie Mac's survey.
After the Fed's move, market rates for 30-year notes and 10-year bonds rose steeply. By contrast, rates fell sharply for 3-month and 6-month bills
Fixed-interest mortgage rates are set by markets based on long-term money rates, not short-term rates. If bond investors fear that the Fed is letting inflation get out of control, then long-term rates could rise, as they did on Wednesday after the rate-cut decision.
Interest rates for other consumer products could drop. Adjustable-rate mortgages and some credit card rates are tied to short-term rates that closely follow the federal funds rate set by the Fed.
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SC hospital infections report

Starting Friday, a report on hospital associated infections in South Carolina will be available for the public to view.
According to the Centers for Disease Control, by law, all South Carolina hospitals now have to submit their infectious findings to Department of Health and Environmental Control officials .
The reports are being made public to help patients and health officials lower infectious rates throughout the hospital system.
To view a complete report, click on the website below:
SC Hospital Report

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Canadians new border law

New rules for the types of identification U.S. or Canadian citizens must present to cross into the country shouldn't cause significant delays and won't be strictly enforced at first, a senior federal official said.
Under the rules going into effect Thursday, people will no longer be allowed to simply declare to immigration officers at border crossings that they are citizens
Thousands of Canadians visit the Grand Strand each year and a driver's license is the only ID they've ever needed to cross the border.
They say, after September 11th, crossing the border became a little more of a hassle than it was before and now, the US government is adding another wrinkle.
Starting Thursday, Canadians will be required to show proof of citizenship, like a passport or birth certificate, along with their photo ID.
But the Travel Industry Association of America isn't convinced that it's no problem.
The association says the new law could hinder border travel and they say just a 5% decline in Canadian visits could cost the US economy nearly $700-million, without really improving security.
The visitors from Canada say if the new border requirements cause any problem at all, it might be a slightly longer time getting across the border and those wait times are already long enough.
Longer waits or not a passport will be required for all travel outside the US starting in June, 2009.
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Fed cuts key rate by half a point

The central bank lowered the federal funds rate by 50 basis points to 3%. Financial markets were hoping that the Fed would decide to cut rates by this amount. The Fed has cut rates by 1.25 percentage points in eight days, the fastest pace in 20 years.
The Fed also announced that it was cutting its discount rate, the interest it charges on direct loans it makes to banks, by a half-point to 3.5%.
In a statement, the Fed said that downside risks to growth remain, and that it would act in a timely manner to address them.
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5% down at 5.5% fixed rate

As the mortgage lending market continues to tighten, first time home buyers with low down payments still have choices.
Banks still have Loans with 5% down at reasonably low fixed rates. These are Full documentation and NO or little documentation Loans. Examples of these loans are 5% down at a 5.5% fixed rate for 30 years on a Stated Loan.

Adjustable-rate mortgage applications dropped 39.6% from January 2007 to January 2008, while applications for fixed-rate loans climbed 60.1% in the same period. Borrowers who put down less than 20% on a home are flocking to insured, single mortgages rather than risky piggyback loans. The number of borrowers using private mortgage insurance jumped 41% in the first nine months of 2007 over that period the previous year, a trend that is expected to continue as mortgage insurance premiums are now tax deductible through 2010
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Fed Rate Cut 2:15 p.m. EST

The Federal Reserve is expected to lower U.S. interest rates on Wednesday as part of an ongoing aggressive effort to spare the economy from the worst effects of a deep housing slump and credit crunch.
Financial markets see a three-in-four chance the Fed lowers benchmark overnight rates by a steep half-percentage point, with at least a quarter-point trim a certainty, as the Fed seeks to counter the risk of a U.S. recession.
Any rate cut would follow a surprise three-quarter-point reduction on January 22 and mark one of the deepest and fastest rate-cutting episodes since the early 1980s. The Fed is expected to announce its decision at about 2:15 p.m. EST.

Fantasy Harbour Bridge

Construction crews are working to finish a bridge that should relieve traffic in Horry County.
Unfortunately, it won't be done by the time Hard Rock Park opens in May. And while Hard Rock Park can't predict exactly how many visitors they will have each day, we know there are 5,000 parking spaces available.
Everyone knows what a parking lot highway 501 can be in the Summer but for some, the thought of a rock and roll theme park trumps traffic.
"I live right down in that area so it's probably going to be pretty busy, but I love roller coasters and lets get Led Zeppelin to come to the Hard Rock Cafe," said Nick Deruosi of Myrtle Beach.
So this summer with a new theme park attraction situated right off the busy roadway roller coaster apprehension may be surpassed by the fear of increased traffic.
To which Hard Rock Park's CEO says no need to worry. "We've always focused on traffic from day one," said Steven Goodwin, Hard Rock Park CEO.
After construction crews finish the new ramp at Fantasy Harbour interchange, it will change the way visitors get there.
The new bridge will take drivers from Highway 17 Bypass straight to Hard Rock Park's entrance drivers don't even have to touch Highway 501.
"Our entrance is designed to bring people as far away from the main roads as possible so that we don't stack up and backup onto 501," Goodwin said.
To keep Highways 17 Bypass and 501 as clear as possible Goodwin hopes most people will use Highway 31 and frontage roads.
Hard Rock Park gates open at 10 am purposely planned to avoid morning rush hour.
"So I think between us, DOT, the local community, the city and the county, I think we'll manage to work out any problems," said Goodwin.
The ramp at Fantasy Harbour interchange should be completed next year.
No lane closures around that construction are expected.
Hard Rock Park officially opens May 9th.

Home prices falling at record rate in November

The decline in U.S. home values accelerated in November, with prices falling for the third month in a row in all 20 cities tracked by the Case-Shiller home price index released Tuesday by Standard & Poor's.
For the 20 cities, prices fell a record 2.1% in November. In the past three months, prices fell at an annual rate of 16.2%.
Among those 20 cities, prices have fallen a record 7.7% in the past year. For the original 10-city index, which has a longer history, prices are down a record 8.4% in the past year, exceeding the drop recorded in 1991.
Home prices fell in all 20 cities in November, led by a 3.6% drop in Los Angeles.
The outlook is grim, economists said.
"With supply overhang enormous and mortgage financing tougher to obtain, home prices are going to decline considerably further in the quarters ahead, most likely to a double-digit pace on a year-over-year basis before too long," wrote Joshua Shapiro, chief economist for MFR Inc.
"We reached another grim milestone in the housing market in November," said Robert J. Shiller, chief economist at MacroMarkets LLC and one of the developers of the index. He noted that prices fell at a record pace in November in 14 of the 20 cities. In eight of the cities, prices have been falling for more than a year.
'We reached another grim milestone in the housing market in November.'
The Case-Shiller index, which tracks multiple sales of the same homes, is considered by many observers to be the best gauge of national and metropolitan-area real-estate values. Its major flaw is that it may overemphasize the coastal regions that had the biggest bubble.
But even in non-bubble cities such as Atlanta, Cleveland, Chicago and Minneapolis, prices are dropping.
Prices are down in 17 of 20 cities compared with a year ago.
Miami has recorded the largest drop in home prices in the past year, down 15.1% since November 2006. Prices have tumbled 13.4% in San Diego, 13.2% in Las Vegas and 13% in Detroit. The figures are not adjusted for inflation in the rest of the economy.
After adjusting for inflation of 4.8%, prices have fallen even in the three cities with rising nominal prices over the past year -- Charlotte, N.C., Portland, Ore., and Seattle, Wash. Prices are up 2.9% in Charlotte, 1.8% in Seattle, and 1.3% in Portland.

New Horry County Fire Rescue

Horry County Fire Rescue is now better equipped to fight fires.
Monday, fire officials held a special ceremony to put this new fire truck in service.
It comes equipped with a 1,000 gallon water pump.
Firefighters rolled the truck out at University Station #23 in Conway.
Horry County Fire Rescue spokesman Todd Cartner said the new truck will come in handy. "We need these new apparatus so we can put them in our busier areas and provide better more efficient service to the community."
The public is invited to bring children to see the new truck or any truck at any fire station, to help get to know your firefighters and understand some of the equipment they use.

“very difficult” to find attractive U.S. real estate

The weak dollar has made the American real estate market look attractive to foreign bargain hunters.
The U.S. rose to the top of lists of the “most stable and secure” countries for real estate investment and the countries with the best opportunity for appreciation, according to the 16th annual survey of the Association of Foreign Investors in Real Estate (AFIRE)released Jan. 28. New York City and Washington D.C. were the top two global “Cities for Foreign Investors’ Real Estate Dollars,” according to the survey.

Most Stable and Secure Countries for Real Estate Investments1. U.S. – 56% of vote2. Germany – 11% of vote; up from #3, with 4.5% of the vote in 20063. United Kingdom – 8.8% of vote; down from #2, with 11% of the vote in 20064. Australia – 8.8% of vote; up from #5, with 3% of the vote in 20065. Japan – 5.3% of vote; with 3% of the vote [tied with Australia], unchanged from 2006

U.S. SnapshotTop U.S. Property Types Within the U.S. property market, the most dramatic change was a total reversal of investors’ preferred U.S. property types, with every property category shifting and, most dramatically, office properties falling into fifth place and retail properties rising to first. 1. Retail – from 5th place in 20062. Hotels – from 3rd place in 20063. Industrial – from 4th place in 20064. Multi-family – from 2nd place in 20065. Office – from 1st place in 2006

• On average, survey respondents say that slightly more than 50% of their real estate planned acquisitions in 2008 will be allocated to the U.S. While the percentage allocated to the U.S. remains roughly the same as 2007, the actual dollar amount is expected to increase by 16%.

• The percentage of respondents saying it was “very difficult” to find attractive U.S. real estate fell to 22.8% from 37.5% in 2006. This represents the smallest percentage expressing this sentiment since 2003.

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self-directed IRAs for real estate investments

Individual retirement accounts that feature self-directed real estate purchases have become better understood in recent years, and consumers now a have speedier avenue to time-sensitive investments.Many providers of self-directed real estate IRAs now can set up a limited liability company (LLC) that allows consumers to write their own checks for property investments -- including foreclosures and recreational properties -- without waiting for a custodian to process paperwork or courier documents."The costs for setting up an IRA with checkbook control can be considerably more than a standard IRA, but the IRA holder doesn't pay additional transactional, special asset-based or holding fees,'' said David Nilssen, president and chief executive of ­Bellevue-based Guidant Financial Group.For example, a real estate IRA worth $100,000 would cost the holder about 1 percent a year -- or $1,000 -- in maintenance fees. These fees are usually billed in quarterly payments of $250. The transaction costs of acquiring other assets are additional. A checkbook control plan would cost approximately $3,500 in setup fees, mostly because of the time and effort involved in drawing up the LLC. However, once the documents are in place, the IRA holder typically faces yearly expenses of less than $150. There are no costs for acquiring new assets because the IRA holder essentially acts as his or her own custodian. "If you hold a $100,000 asset for 10 or 15 years, the annual maintenance fees can really begin to mount,'' Nilssen said. "And, the asset is probably going to appreciate, meaning the IRA holder would have to pay more because the annual fee is calculated on the value of the asset.''In addition, the ability to purchase real estate immediately -- for example, at a trustee's sale or at a recreational property auction -- allows IRA holders with checkbook control to compete with other investors who have liquid cash on hand.Consumers can invest self-directed IRA money in a range of investments, including stocks, bonds, mutual funds, money market funds, saving certificates, U.S. Treasury securities, promissory notes secured by mortgages or deeds of trust, limited partnerships and -- obviously -- real estate. This includes single-family homes, timber parcels, gorgeous getaway condos and office properties. And, IRA funds can be the answer for an investor who sees a bargain property, is confident it will appreciate and yet has no other available cash to purchase it.Self-directed IRAs are not only relatively easy to establish but they are also not subject to some of the rules that apply to employee-sponsored qualified plans that are enforced by the Department of Labor. The bank, as account holder, has an obligation of investigating each investment to be considered. This personal due diligence is a substitute for the rules that govern some employee-sponsored qualified plans.You cannot have your IRA "enable" an investment for yourself or another disqualified person, such as a family member. In other words, if the IRA's investment is deemed essential to accomplishing a transaction in which both you and your IRA invest, then the transaction would be considered a prohibited transaction. For example, you cannot use IRA money to buy your own residence, or any other property in which you live. The purchase must be investment property.Your IRA cannot purchase a real estate asset and then have a disqualified person use it while it is in the IRA. For example, you cannot buy a vacation home and use it partly for personal use, even though you might rent it to unrelated people the rest of the year. To prepare for your real estate IRA, designate the amount of your retirement funds that you wish to use in the property deal and open a new IRA account with an independent administrator. The best place to start is an independent community bank. However, many banks will not service real estate IRAs (some will say, "never heard of it") because it must act as owner -- pay the taxes, collect servicing fees -- paperwork that many lenders don't want or need.

Stimulus Rebates Come by Mid-May

Most taxpayers could expect a rebate of up to $600 starting in mid-May under the economic aid plan set to go through Congress within weeks.
Couples could get twice as much, with even more for most families with children. All that, however, depends on smooth sailing at the Internal Revenue Service, and the agency already is up to its eyeballs in filings and refunds.
The Treasury Department says that despite the strains of tax filing season, the IRS will be able to begin delivering the payments within 60 days after President Bush signs the plan into law, and complete the process in approximately 10 weeks, possibly sooner. The payments would come separately from regular tax refunds.
But figuring out if you qualify -- and for how much -- can be complicated, thanks to confusing rules designed to get the money to middle-income workers and ensure it also benefits low-income people who are most likely to spend the cash.
"Almost everyone who earns income will receive some benefit," said Douglas W. Elmendorf, an analyst at the Brookings Institution. "The idea is to target the money on the people who will spend a large share of it, and to target it on people who are likely to be hurt by an economic downturn."
People who do not make enough to pay taxes but had at least $3,000 in earned income would get $300. Those earning less than that would be disqualified, as would the wealthiest. Older people living solely off Social Security checks would not get the rebate.
Individuals with adjusted gross incomes of more than $75,000 and couples with income exceeding $150,000 would get smaller checks. Contributions to individual retirement accounts, 401(k) retirement accounts and health savings accounts would not count toward the limits.
About three-quarters of those eligible for the checks are working people. About one-quarter would qualify solely through pension or interest income, such as retirees or people who are unemployed. Eligible people would get at least $300.
For middle-class people, the rebates are fairly straightforward. Most individuals would get a $600 rebate, couples would get $1,200, and those amounts would rise with the size of their families. High- and low-income people, however, would get only a partial benefit.
People with income less than $75,000 would get a rebate equal to the taxes they paid in 2007, up to $600. Couples with income less than $150,000 could get up to $1,200. Those who earned more than $3,000 but owed little or no taxes would get a flat $300, or $600 per couple.
So a low-income family of four -- with $35,000 in income and virtually no tax liability -- would get $1,200. That includes the flat $600 per couple and $300 for each child.
A single person earning minimum wage would receive the lower rebate, $300.
A single parent of two with income of $38,000 and a tax bill of $433 would get $1,033 -- a $433 tax rebate plus $300 per child.
To focus the payments on middle-class people, the plan includes rules that reduce the rebates for those with higher incomes. For each $1,000 over the limit, the payment goes down by $50.
That means that while a family of four with income of $95,000 would get $1,800 -- $1,200 for the couple and $300 for each child -- a family of four with income of $160,000 would get less, and the same family making $200,000 would get nothing.
Income of $160,000 would put a family $10,000 above the income threshold, reducing the benefit by $500 for a rebate of $1,300. The wealthier family, which falls $50,000 above the threshold, would see its rebate vanish under the formula.
Similarly, a single person with no children who had $16,000 in income would get $600, while the same person making $85,000 -- $10,000 above the limit -- would get just $100.
People would not have to work to receive a rebate. A retired couple owing $4,000 in taxes would get the full $1,200; if they owed no taxes, they would receive only half that. If the couple earned less than $3,000, however, they would be ineligible. That includes 20 million older people whose only income is their Social Security checks.
The plan would allow people who do not qualify for a rebate this year to get one in the spring of 2009 if they become eligible based on their income level or tax liability in 2008. That has been a standard feature of past rebates, although it does nothing to stimulate the economy.
Some 40 million people who file their tax returns online could start getting payments by direct deposit in May. Congressional tax analysts say the government can send out up to 9 million paper checks a week. The IRS will have to reprogram its computers to calculate who gets the rebate and how much they will receive.
"They sort of learned how to do this last time," said Jason Furman, a Brookings economist, referring to the last round of rebates in 2001.
"It's definitely complicated if you're trying to understand it, but it's not actually going to be complicated for people because they're going to get a check from the IRS without having to fill out a single form."
Still, the agency is already working overtime processing tax returns, and rebates will have to take a back seat come April, when it will be overwhelmed in the run-up to Tax Day.
"The two final weeks of tax filing season are very, very high-traffic weeks for the IRS," DeSouza said. "We'll just have to see what capacity they can handle."