A new report out from two well respected South Florida researchers shows that the world’s oceans are in fact warming, but a side effect of the warming means fewer hurricanes due to increased wind shear. Interestingly, the researchers found that warmer temperatures in the tropical Atlantic decrease wind shear, while warmer temperatures in the tropical Pacific and Indian oceans increase shear – but the winds produced over the Pacific and Indian oceans are most important. To get a better understanding of the report please read the full article on Global warming causing fewer hurricanes as reported by the Associated Press.

The Federal Reserve has just cut the key rate by three quarters of a point. This is the largest cut in over 20 years and should help stimulate the economy to a certain degree. As fears of a recession looms, the Fed said the rate-cut was to help restore confidence in the U.S. economy. The Fed also approved a decrease in the discount rate — which, among other things, impacts how consumers pay home equity lines of credit — to 4 percent. The Fed’s next scheduled meeting is on Jan. 30, where analysts say another rate-cut may be likely. The Fed should be commended on their decisive action to help keep the country from slipping into a recession.

The Mortgage Bankers Association is reporting that mortgage demand is at a four year high due to very low rates. Mortgage application volume reached 906.4, an increase of 28.4 percent on a seasonally adjusted basis, up from 706 one week earlier. On an unadjusted basis, the index increased 64.8 percent compared with the previous week, which was shortened by the New Year holiday and was up 39 percent compared with the same week a year ago. Refinancing also experienced and increase in volume.

- 30-year fixed-rate mortgages decreased to 5.62 percent from 5.73 percent.
- 15-year fixed-rate mortgages decreased to 5.07 percent from 5.21 percent.
- 1-year ARMs decreased to 5.77 percent from 6.04 percent

This is a positive sign for the overall real estate market and one step on the path to getting back to normal sales activity. Mortgage brokers serve as a very important part of the real estate process, but like anything else if that part is abused it can have a dire affect on the market. It does look as though the measures put in place by banks to curb abuse are starting to take affect. I think we can look forward to a good 2008 and steady growth for years to come.

Some interesting statistics in a recent article published by the Miami Herald show that real estate in Miami may be showing signs of stabilization. The Miami condo market is generally regarded as the worst segment of the Miami real estate market, but recent statistics show that from November of 2006 to November of 2007 the median price for condos actually rose by 3%. These statistics take into account all of the closed condo sales in Miami-Dade County for that one year period. In that same period the median price for homes sold in Miami-Dade Country were only down by 4%. On the flip side of that coin however, inventory is up and sales volume is down. This is not a very fair comparison because the middle of 2006 was the top of the real estate market, and as we all know 2007 was a bad year for real estate. There are still plenty of homes being bought and sold in Miami-Dade and the statistics are today are comparable to the statistics from the years leading up to the real estate boom we experienced here in South Florida. If you would like a copy of the Miami Herald article please send me an email and I will send It to you in PDF format.