Archive for April, 2008
Hilton Head Mortgage Rates and the Federal Reserve
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Source: Bankrate.com |
Hilton Head Mortgage Rates and the 10-year Treasury Note
Changes in Hilton Head mortgage rates are more closely tied to fluctuations in the yield on the 10 year Treasury note. In a “normal” lending environment, you would find the rate on a 30 year fixed rate conforming loan (those with loan amounts under $417,000) to be about 1.75% above the yield on the 10 year Treasury note. As we are all aware, we are not in a “normal” lending environment at the present time, as investors are requiring a larger spread to cover assumed risk. Thus, today you will find the rate on the same 30 year loan to be about 2.25% above the yield.
Short-term vs. Long-term Mortgage Rates
In fact, many times we see mortgage rates on Hilton Head rise after a reduction in short term rates by the Federal Reserve. Why, you ask? Well, the biggest fear of the treasury market is inflation, as that erodes the value of the note. One would normally find rising inflation in times of economic upturns. When the Federal Reserve reduces the short term rates, the treasury market reads that as a stimulus to the economy which could lead to a possible rise in inflation. So to guard against this, the treasuries sell off forcing a rise in the yield. Having said all of this, most of the time a reduction is so anticipated that the rise in the yield has already been priced into the value of the note, so when the rate cut is finally announced it is pretty much a non-event. For example, three weeks ago, the yield on the 10 year note was 3.46%. As we drew closer to today’s fed meeting, most economists were predicting a .25% cut in the short term rate. So, over the past three weeks we have seen the yield on the 10 year note rise to today’s 3.82%. After the announcement, the yield did not move at all.
Rate Cuts are Probably Over
Where do Hilton Head borrowers and lenders go from here? Most analysts feel that the Federal Reserve will not cut rates again in 2008. This means that the monthly economic data will determine the direction of the treasury yield. Bad news will lower the yield while positive news will cause it to rise. Even the experts don’t know if rates will be higher or lower later this year. Remember that historically rates are still very, very low. There are many properties in the Hilton Head area that are value priced. If you find one that you like, buy it now. Don’t wait for lower interest rates.
Patrick S. Child, Vice President
Residential Lending, Wachovia Mortgage
Hilton Head Island, South Carolina
(843) 686-9342
Posted in 
McDonald's Restaurant Reopens at the Sea Pines Circle
When McDonald’s first opened near the Sea Pines circle many years ago they were not allowed to build their golden arches because they did not blend with the Island’s character. McDonald’s didn’t clown around and they built without the arches serving millions of Islanders and visitors until the fall of 2007. That was when the owners decided that it was time for a new building. They tore down the original restaurant and built a new one from scratch during the winter of 2007-2008. The new McDonald’s re-opened on March 15, 2008. It is larger and more attractive than the original restaurant both inside and out and with a variety of new features and services.
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One is free wi-fi service and this has to be good news for travelers who increasingly want online services. Another is the McCafe with a selection of iced coffees, lattes and cappuccinos. The new McDonald’s has an indoor play land that is well separated from the main seating area. The dining area has an art deco style with wood, stone and tile and some flat screened
televisions. The new McDonald’s has two outside order lanes and menu boards. Parking, landscape, the flag pole and the sand blasted wood sign on William Hilton Parkway are all new.
Go Gated Realty ® is located near McDonald’s at the Executive Center on Corpus Christie Place. Come see us via McDonald’s and bring a sundae, coffee, burger, etc.
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Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@rkrealty.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories |
Enjoy Maximum Convenience and Luxury in Hilton Head Plantation at Skull Creek
Beside Skull Creek in Hilton Head Plantation are upscale villa residences located within an easy walk to to the Skull Creek
Marina and the Country Club of Hilton Head. Residences close to recreational amenities are highly desired by many people and there are very few locations anywhere with this kind of convenience. This area is for primary and second homeowners only. Hilton Head Plantation does not allow vacation rentals.
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In addition, many of these residences have fantastic, deep water sunset views! The locations include Governor’s Harbor, Indian Springs, the Courtyard, Mariners Point and Grandview. The one, two and three bedroom villas at these locations have different architecture, views, features and prices. Each villa location has its own swimming pool and all owners have use of the Spring Lake Recreational Center with the central swimming pool of the Plantation as well as walking beach and views of Port Royal Sound provided at the community’s Dolphin Head Recreational Center. Hilton Head Plantation has two, 24-hour security gates and a wide variety of shopping, restaurants and the Hilton Head Hospital just outside of the main security gate.
The Country Club of Hilton Head is just across the street and memebership is optional. It has an 18-hole Rees Jones design .jpg)
course that was the the local qualifying site for the 1999 and 2005 U.S. Opens. It also has six har-tru clay tennis courts, a large fitness center with an aerobics room, indoor and outdoor swimming pools, meeting rooms and formal and casual dining. The Country Club of Hilton Head was founded in 1986 and is owned by ClubCorp. Members may enjoy benefits of ClubCorp affiliate clubs and resorts throughout the United States.
The Skull Creek Marina is located at mile 555 on the Intracoastal Waterway. It has floating docks for sale or lease with berths to 200 feet. Every slip has internet, water and electric service and a dock box. Gas and diesel fuel is available as well as a travel lift, boatyard services, dock house, full time staff and concierge services. Owning or renting a boat slip is optional and is not included with the real estate along Skull Creek.
Go Gated Realty ® is pleased to offer #34 Governor’s Harbor for sale. The two-
bedroom, two-bath flat has incomparable deep water sunset views of Skull Creek from the living room, kitchen, master bedroom and screened porch. It is an ‘end’ unit with a bay window at the dining table. The interior is professionally decorated with a living environment of comfort and quality. The soothing wall colors tastefully blend with granite counter tops, custom cabinetry, floor tiles and furniture. The master bathroom has a jacuzzi tub. Access to the villa’s second floor location is by steps or elevator. There is a private storage closet and two additional 5′x8′ storage areas. The furnishings can be negotiated. Offered for $549,000.
To compare this villa with any other available villa or home, please contact the Gated Communities Specialist ® today!
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Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@rkrealty.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories |