(Rob Carson sent this in. He's snowed in at home today.)

The Federal Reserve’s dramatic cuts to lending rates have so far done little to help South Sound consumers, mortgage brokers in the Tacoma area said Thursday.

Home loan costs did not drop significantly with the Fed’s most recent cut on Tuesday, they say, and loans are still only available to those with excellent credit, lots of equity and proof of employment.

“Our phones are definitely ringing,” said Kevin Tinsley, president of All Tech Mortgage in Lakewood, “but we’re not able to help as many people as we could in previous booms.”

Tinsley said his business is up about 50 percent over a month ago, with much of the interest coming from people who took out loans 10 or 12 years ago and are interested in refinancing.

However, he said, those who want to refinance find the guidelines have changed since they took out their loans.

“There are a few more hoops people have to jump through,” he said. “We’re having to run people’s credit before we can even quote them a rate.”

Tinsley said his clients tend to be in upper income levels but, even so, only about 40 percent of them qualify for the lowest rates.

Jack Hansmann, loan officer at Capital Resources in Tacoma, said the Fed’s rate cuts may have made matters even worse.

“They’re doing the exact opposite of what they should do,” Hansmann said.

Lowering rates makes lenders even less willing to loan, he said.

“When rates get too low, there’s no money in it,” he said. “There’s just risk.”

Darcy Hansen, a loan officer at Financial Services Northwest, Inc. in Tacoma, estimated that the number of people calling her office has doubled since last week.

“Lots of people are calling in,” she said. “There’s a lot of interest out there.”

However, rates available to consumers are directly tied to the fed rates, Hansen pointed out, and they remain basically unchanged since last week.
Even so, there is significant interest among consumers, Hansen said.

“Everyone is under the impression they will come down further.”

The Seattle Times reports that Quadrant Homes has stopped building and selling at The Ridge in Gig Harbor.

The 120-lot development off Borgen Boulevard was to hold 1,500-3,100 square-foot homes for $259,000-$342,900, according to the story.

Peter Orser, Quadrant president, told the paper that the decision was "a suspension, not an abandonment" and that the stoppage would be temporary. But he acknowledged that the move was significant and attributed it to the contracting economy.

Have you bought a home in The Ridge? Or had you started the process of buying there? We want to hear from you. E-mail kathleen.cooper@thenewstribune.com with your name and a daytime phone number.

Median home prices in Pierce County dropped again in November, according to figures released Tuesday by the Northwest Multiple Listing Service.

The median price for a single-family home or condo in November was $230,000. That price is about $32,950 below the median for the same time last year - an almost 13 percent drop.

Month-to-month, however, it's a 4.5 percent decline from $241,000 in October.

The median price is the midpoint of all sales. Half of homes went for more and half for less.

Other county data for November from the Northwest MLS:

• Homes listed for sale dropped from 1,505 a year ago to 1,368.

• Closed sales were cut almost in half compared to a year ago, from 784 to 463.

Look for more details on the data in tomorrow's News Tribune.

The developer of the billion-dollar Point Ruston project, on the site of the former Asarco copper smelter, has started marketing view homes at “Stack Hill,” site of the smelter’s old emissions stack.

The Ruston Town Council approved the final plat for Stack Hill on Oct. 20, freeing developer Mike Cohen to start writing purchase and sale agreements.

Stack Hill reclaims the property where the 562-foot Asarco smelter stack once stood. The structure was demolished in 1993 and the land has since been remediated under EPA supervision. The EPA released Stack Hill for construction in 2007.

Cohen’s plans for Stack Hill include 36 single-family homes. Twelve of the home sites already have been reserved, Cohen says. All 36 homes will be both Built Green and Energy Star certified through the Master Builders Association of Pierce County.

The first model home opened in September and has drawn an average of 20 to 30 visitors per day during open house weekends, Cohen said. A permanent sales office will
be located in a second model home, which is expected to be complete and fully furnished in November.

To learn more about homes at Stack Hill, visit www.PointRuston.com or contact Julie McBride at (360) 456-6307,

Some Countrywide/Bank of American borrowers may be eligible for cheaper loans beginning December as a result of the Homeownership Retention Program, the state Attorney General's Office announced this week.

The program applies to borrowers of certain loans that originated between Jan. 1, 2004, and Dec. 31, 2007, who are behind on payments or likely to fall behind. It also includes money for borrowers who lost their homes and those who face foreclosure.

"My office is taking every possible step to help our state's residents survive a series of devastating blows to our economy," Attorney General Rob McKenna said in his "Ask the AG" column. "By working together, we'll weather this financial tempest as we look forward to better days ahead."

Those who qualify will receive a letter from the Attorney General's office and Bank of America in December. More information is available at my.countrywide.com/media/FinancialAssistance1.html.

Countrywide won't start foreclosures on homeowners who likely qualify for loan modifications. Those who face foreclosure are encouraged to call Countrywide at 1-800-669-6607.

Updates one the program are available at www.atg.wa.gov/countrywide.aspx.

Anyone who is not a Countrywide customer but who is still concerned about if they are able to make their mortgage payments should visit www.atg.wa.gov/foreclosure.aspx for information, McKenna wrote. Counseling is available at www.homeownership.wa.gov or 1-877-894-HOME.

Zillow.com said it is laying off 40 workers, about 25 percent of its staff, to weather the "economic storm."

The Seattle-based Web site provides consumers with estimates of their home's value based on market trends and sales.

"This was an incredibly painful decision for me and the leadership team, but, in the end, we concluded that we had no choice but to securely batten down the hatches as we sail into a major economic storm," said Zillow chief executive Rich Barton on the company's blog.

The staff reductions are effective Tuesday. Laid off workers will receive severance packages.

The housing industry has seen sales and prices fall steeply as mortgage money becomes increasingly hard to find. Some major banks and financial houses collapsed under the weight of subprime mortgage loans in recent weeks sending financial markets into a panic and prompting Congress to enact a $700 billion bailout bill.

A recent Webware column by Rafe Needleman names one of our favorite Web sites, Seattle-based Zillow, among 11 Web 2.0 start-ups "in serious danger of falling off a cliff."

Zillow's the site that gives approximations of your home's value based on sales and market data of nearby and like properties.

Here's what he says:

"The real estate site's revenue model is advertising. Real estate and bank advertising. Unless the real estate site starts charging for foreclosure listings, I don't see it doing too well in a hunkered-down economy in which people are trying to hold on to their homes for dear life, not upgrade."

At Zillow, as you might guess, they disagree.

Here's part of their reply from Zillow director of community relations David Gibbons:

"We actually do have a revenue-generating relationship with the supplier of our foreclosure listings, thanks, You're right that it's one of the opportunities to make lemonade right now. Zillow traffic is actually up 40 percent from last year. We're fortunate to enjoy a very strong brand in a fragmented real estate market."

Gibbons says on-line ad growth is out-stripping traffic growth.

"I won't deny that these are tough times and there's no free lunch in the real estate media industry right now. We've been very frank about the fact that this market delays IPO plans for Zillow. But there are opportunities in every market and many home buyers and owners are more interested in the value of their homes today than ever."