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TO EVERYTHING (EARN, EARN, EARN)…THERE IS A SEASON (EARN, EARN, EARN)… That’s how Pete Seeger and The Byrd’s famous 1962 hit, “Turn, Turn, Turn” could be rewritten for the financial markets of late – earnings season kicked off last week, with several reports delivering music to the economy’s ears.

The week began with the sweet sounds of investment banking giant Goldman Sachs reporting earnings that were much better than expected. More good news from the financial zone followed, with better than expected earnings from JP Morgan Chase and Citigroup. As you can see in the chart below, the financial sector has clearly been helped by the recent mark-to-market discussions and easing of the FASB ruling. In other sectors, big players Google and General Electric also reported earnings that were higher than anticipated.

———————– Chart: S&P 500 Banking Index

And more good news last week, as Fed Chairman Ben Bernanke sang out that there are signs that the sharp decline in the economy is slowing, indicating a potential “first step” towards a recovery from the worst recession in a generation. Specifically, he said, “I am fundamentally optimistic about our economy. Today’s economic conditions are difficult, but the foundations of our economy are strong, and we face no problems that cannot be overcome with insight, patience, and persistence.” While last week’s Retail Sales Report came in lower than expected, indicating that consumers are still keeping a good grip on their wallets – Bernanke’s words certainly inspire some economic confidence.

There was also some inflation news to note last week – important in particular as inflation is the arch-enemy of Bonds and home loan rates. While the Producer Price Index showed that inflation at the wholesale level is tame and the overall Consumer Price Index was lower than expected, the Core Consumer Price Index – which excludes volatile food and energy prices – came in slightly hotter than expected. Although inflation is not a present concern, traders are watching carefully for signs of it heating up, particularly as the year progresses and the impact of massive economic stimulus takes hold.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. And that’s what was seen at the end of last week, as Stocks were buoyed by the strong earnings reports, causing Bonds to fall below a key technical support level as money flowed out of Bonds and into Stocks. After bouncing around a bit throughout the week, Bonds and rates ended the week at similar levels to where they began.

WANT TO MAKE SURE THE GOVERNMENT ISN’T GOING TO BURN, BURN, BURN THROUGH THE $787 BILLION STIMULUS PACKAGE? CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW TO LEARN HOW YOU CAN STAY IN THE KNOW.

Forecast for the Week

There are several important economic reports hitting the charts this week, as we get a read on the housing market with Thursday’s Existing Home Sales Report and Friday’s New Home Sales Report. Also on Friday, we will get an update on consumer and business consumption and buying behavior via the Durable Goods Report, which shows data on items that are non-disposable, such as cars, furniture, appliances, games, cameras, business equipment, etc.

In addition, earnings season continues, and while some additional “better-than-expected” earnings reports would be great news for our economy, they could also make it harder for Bonds and home loan rates to improve in the short term. As you can see in the chart below, Bonds and rates ended the week in a worsening direction, due in part to the positive earnings reports. As always, I will be watching closely to see what happens this week – but remember, home loan rates are still near historic lows. Give me a call if you want to learn if this presents an opportunity for you, or to simply confirm that your current home loan is positioned properly.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday Apr 17, 2009)

The Mortgage Market View…

Give Me Money… That’s What I Want

The Beatles weren’t singing about the US economy, but they may as well have been. Earlier this year, the government unveiled its new $787 Billion Stimulus Plan to infuse the economy with money and confidence. That’s some serious money!

But have you ever wondered who’s actually getting that money. what types of projects may be funded. and how it impacts your state and local community?

Here’s your answer: StimulusWatch.org!

StimulusWatch.org was built to help the government keep its pledge to invest stimulus money smartly and to add transparency and accountability to the process.

At StimulusWatch.org, you can find and review projects that are candidates for funding by federal grant programs. You can even sort the projects by activity, expense, and need.

Better still, you can access a list of projects by state, so you can see how the Stimulus Plan may impact your state and local community – including costs, number of jobs, and exact locations! Simply select your state and review the projects under consideration. You can even add comments about the value of the projects listed!

It’s convenient, interactive, and easy to understand – check it out today!

The Week’s Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of April 20 – April 24

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: stdrake@windermere.com

If you prefer to send your removal request by mail the address is:

Stacey Drake
2416 Second Avenue
Suite 101
Seattle, WA 98121

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Last Week in Review

“HAVE THE NERVE TO GO INTO UNEXPLORED TERRITORY.” Alan Alda. Taking those words to heart, Bonds and home loan rates did exactly that last week, reaching historic levels.

A few important news items from last week… First, the results are in on the Fed’s first run at purchasing Mortgage Backed Securities under their new $500 Billion buying program. Over the last week, the Fed bought $10.2 Billion of Mortgage Backed Securities. Any time there is increased buying demand – for anything – prices will move higher. When Bond prices move higher, home loan rates improve.

Next, Stocks faced selling pressure last week due to a rash of earnings warnings from the nation’s retailers, including Macy’s, who announced they are closing eleven stores. Because money coming out of Stocks is often parked over into the Bond market, Bonds and home loan rates responded by reaching never-before-seen levels.

Finally, the job market reached a level not seen since 1945. The Labor Department reported on Friday that there were 524,000 jobs lost during the month of December, which you can see in the Jobs Report chart below. Why does the chart look unusual? Because it’s measuring a negative number, for something that is normally reported as a positive, as in number of jobs created.

All told, there were 2,600,000 jobs lost in 2008, which represents the biggest job loss in any calendar year since 1945, when 2,750,000 jobs were lost as the wartime economy was demobilized. But we must consider that there are a lot more people in the US today. Adding further sting to the report was the Unemployment Rate, which shot up higher than expectations to 7.2%, the highest reading in 16 years.

As we know…Bonds and home loan rates typically improve on negative economic news, since money will flow out of Stocks and into Bonds when bad news hits the wires. But keep in mind, these are volatile times – and it’s hard to know how long the good times will last for home loan rates. Regardless of if you see a move or a refinance in your future, let’s review your situation to determine if any decisions need to be made at this time.

2009 IS LARGELY UNEXPLORED TERRITORY AT THIS POINT…ARE YOU READY? SEE THIS WEEK’S MORTGAGE MARKET VIEW FOR FIVE QUICK TIPS YOU CAN ACT ON RIGHT NOW, TO GET ORGANIZED AND SAVE SOME MONEY TOO!

Forecast for the Week

The Fed’s purchasing program will continue to be something to watch in the weeks and months ahead, and there are also several reports that may impact whether Bonds and rates continue to explore new territory during this coming week.

On Wednesday, we will see the Retail Sales Report for December, and since many retailers have already said this holiday season was the worst in a long time, it wouldn’t be a surprise if this is a horrible report…which could be friendly for Bonds and home loan rates.

This week also brings news on the inflation (or deflation) front, with Thursday’s wholesale measuring Producer Price Index (PPI) Report and Friday’s Consumer Price Index (CPI) Report. With the recent concerns on deflation, it will be important to see which way these reports have moved, and what the impact may be on home loan rates.

The Mortgage Market View…

How Ready Are You for 2009?

Now that the holidays are over and a new year has begun, now is the perfect time to make sure you are ready for 2009. Here are five things you should do this month that will make your life easier in the months ahead:
1.        Clean Out the Clutter: You keep saying you’ll do it…go ahead and do it. Spend an hour going through your old files, and shred those receipts, bills, and statements you no longer need, like old ATM receipts and utility bills, paystubs more than a year old, and receipts for things that are not deductible.

2.        Get Organized: While you’re at it, create new files for your 2009 tax-related papers and receipts. Examples of categories include medical expenses, gift and charitable donations, and home improvements.

3.        Check the Gift Card Fine Print: If you received gift cards as a present over the holidays, use them soon. Some have expiration dates, or the amount on the card may get reduced over time. In addition, in the current economy, retailers that go out of business may not honor gift cards.

4.        Do Some Review: Review your various insurance policies – life, home, auto, etc – to make sure the coverage you have is still the best fit for your needs and situation. To save on cash out of pocket, you might even consider raising your deductible to get a lower premium.

5.        Do Some Reflection: Take an honest look at your schedule and responsibilities and make sure you are taking the time you need to stay healthy and feel good. Don’t feel bad about actually scheduling specific blocks of time to exercise or spend special time with family and friends, to ensure it actually happens. This will make everything else you have to do this year easier…and more enjoyable, too!

The Week’s Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of January 12 – January 16

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: stdrake@windermere.com

If you prefer to send your removal request by mail the address is:

Stacey Drake
2416 Second Avenue
Suite 101
Seattle, WA 98121

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

“AN OPTIMIST STAYS UP UNTIL MIDNIGHT TO SEE THE NEW YEAR IN. A PESSIMIST STAYS UP TO MAKE SURE THE OLD YEAR LEAVES.” Bill Vaughan. 2008 turned out to be a historic year on many counts, and optimists and pessimists alike were glad to close the books and say goodbye to the old year. In observance of the New Year’s holiday, the Bond market closed early last Wednesday and was closed all day Thursday, but there was still plenty of time for volatility due to several noteworthy news items. With a great deal of midweek activity, Bond pricing ended the week slightly worse with home loan rates about .125% higher than where they began.

Early last week, a renewal of military conflict between Hamas in Palestinian Gaza and Israel sent crude oil jumping higher on concerns of supply disruption, causing volatile activity in both Stocks and Bonds. The strife in the region continues, and may cause more movement in the financial markets over the coming weeks.

GMAC received a $6 Billion lifeline from the Treasury to help stave off a bankruptcy protection filing or complete shutdown. This would have spelled big trouble for GM, as GMAC helps to finance purchases of most GM vehicles. This assistance is part of a larger effort to help aid the troubled auto industry, and GMAC announced that they will immediately resume financing to a wider range of car buyers. Stocks moved higher on the good news, which pulled a bit of money out of Bonds and caused home loan rates to rise.

NOTE: Stocks have made some nice moves higher of late, breaking above a key line in the sand at their own 50-day Moving Average. And with a great deal of cash on the sidelines waiting to be put back to work, as well as retirement money getting ready to be invested before tax time, this could spell better days ahead for Stocks. While money flowing into Stocks can sometimes pull money from Bonds and cause home loan rates to rise, the Fed has said they will be doing some buying of Mortgage Bonds, which could help home loan rates weather the storm much better than they have in the past.

In economic report news, the Chicago Purchasing Managers Index – which measures manufacturing activity – came in at 34.1, very close to estimates of 33.0. But Consumer Confidence somewhat unsurprisingly missed advance expectations of 45.5, arriving at a dismal, record low of 38.0. Just by way of perspective, last year at this time, Consumer Confidence was at 88.6…so there’s been quite a decline during 2008.

Also adding to the movement in the markets last week, the Securities and Exchange Commission recommended against suspending FASB 157, otherwise known as fair-value accounting rules or “mark to market”. These rules led to the failure of many financial institutions that really weren’t in bad shape, but simply made them appear to be overleveraged as they were forced to value their assets against distressed institutions selling at steep discounts. This announcement was not a surprise, as it wasn’t expected that they would completely eliminate the rule and go back to the days of Enron-style accounting and valuation systems which lacked transparency. For now, the SEC is instead suggesting “improvements” to deal with illiquid markets and reducing the number of models used to measure impaired assets…but the details of those “improvements” are yet unknown.

Rest assured that as 2009 kicks into full gear, I will be watching closely and keeping you updated as to all the latest financial news stories, market action, and home loan rate developments. Because windows of opportunity can be fleeting, please call me to look over your own financial situation so that we are ready to act on your behalf.

Forecast for the Week

As the first full trading week in the New Year begins, more important news is coming as we look forward to Friday’s Jobs Report, which will show the number of jobs lost or gained in December. Remember that the Department of Labor averages their numbers, and part of each month’s report includes “revisions” to the several prior months’ numbers.

The employment news last month was record-breaking: 533,000 jobs were lost during the month of November, which represented the most job losses the US has seen in 35 years. Additionally, November was only the fourth time in 58 years that our economy lost over 500,000 jobs. And adding more pain to last month’s Report were heavy downward revisions for September and October, which erased an additional 199,000 jobs.

I’ll be watching closely to see how Bonds and home loan rates respond to the Report…and all the other news this coming week is sure to have in store! Again, I encourage you to get in touch with me to review your own home loan scenario. We can determine together if it makes sense to consider acting on the low home loan rates currently available.

The Week’s Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of January 05 – January 09

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: stdrake@windermere.com

If you prefer to send your removal request by mail the address is:

Stacey Drake
2416 Second Avenue
Suite 101
Seattle, WA 98121

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: stdrake@windermere.com

If you prefer to send your removal request by mail the address is:

Stacey Drake
2416 Second Avenue
Suite 101
Seattle, WA 98121

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Last Week in Review

“What happens in Washington doesn’t stay in Washington.” And that was especially true last week, as the effect of Congress’ actions regarding the U.S. automakers rippled out into the markets.

Bonds and home loan rates spent last week testing their previous best levels of 2008, and finally rallied on Friday to reach their best levels not just of 2008 but of the last five years. Stocks, meanwhile, were under pressure throughout the week waiting to see whether Congress would approve emergency loans for GM and Chrysler. While the House of Representatives approved the measure Wednesday evening, the Senate rejected the $14 billion bailout for the US automakers on Thursday evening, citing a lack of wage concessions by the United Auto Workers (UAW). Friday, the White House announced that the government may be willing to use Troubled Assets Relief Program (TARP) funds to prevent an immediate collapse of the auto industry. One thing we can be sure of in this matter is that the volatility for both Stocks and Bonds will continue while this issue remains unresolved.

There were other important happenings in Washington to note last week. Five members of the House Financial Services Committee are sponsoring a bill that would force the SEC to reinstate the uptick rule. The uptick rule is a former rule established by the SEC that requires every short sale transaction to be entered at a price that is higher than the price of the previous trade. So what would the reinstatement of the uptick rule mean for Bonds and home loan rates? The reinstatement of the uptick rule would do a lot to quiet the excessive volatility in both Stocks and Bonds.

In other important news to note last week, the Retail Sales report for November showed that retail sales fell for a fifth straight month. Meanwhile, Initial Jobless Claims reached their highest level in 26 years. Both of these reports are indicative of the current economic climate, and given the events of the week in Washington, they had minimal impact on Bonds and home loan rates.

As mentioned above, Bonds and home loan rates rallied Friday afternoon to reach their best levels of the year. As a result, they ended the week .25 percent better than where they began. There may be an opportunity for you to reduce your home loan payments, feel free to contact me.

ARE YOU WONDERING IF YOUR PROERTY TAX ASSESSMENT IS TOO HIGH? IF SO, THERE’S SOMETHING YOU CAN DO! SEE THIS WEEK’S MORTGAGE MARKET VIEW FOR IMPORTANT DETAILS!

Forecast for the Week

Tuesday will be a big day this week as more news from Washington may rock the markets. First, the Fed will be holding another regularly scheduled meeting of the Federal Open Market Committee (FOMC). Look for the Fed to cut the Fed Funds rate (the rate for overnight loans between banks) by a half point, to 0.50 percent. While a cut by the Fed often causes home loan rates to rise (because a Fed cut can lead to inflation, which is the arch enemy of Bonds and home loan rates), the deflationary environment we are currently in may prevent home loan rates from worsening.

Another event to note on Tuesday is the release of November’s Consumer Price Index (CPI) Report. This widely watched inflation indicator tells us how much more expensive goods and services are this month over last month, and with recent concerns on deflation – this will be an important report to watch.

As you can see in the chart below, Bonds and home loan rates ended the week at their best levels of this year and in over five years. Let me know if you want some more information about how you can take advantage of the current situation.

Chart: Fannie Mae 5.0% Mortgage Bond (Friday Dec 12, 2008)

The Mortgage Market View…

Is Your Property Tax Bill Too High?

Income tax, sales tax, estate tax, excise tax, alternative minimum tax…and just when you thought you’d paid them all…along comes your property tax bill as a homeowner. But did you know that the National Taxpayers Union estimates that as many as 60% of homes are assessed for too high of a value, resulting in an incorrectly larger property tax bill? Chances are good you might be in that group of people paying too much, so taking the time to review your property tax bill could save you a nice chunk of change.

The good news is that it’s easy.

First, contact your local tax assessor’s office and ask for someone in the reassessment area. Find out when appeals are heard, and how the process for submitting a property tax appeal works. Additionally, ask for a copy of your property card. Review the card and confirm that the basic information about your property is correct. For example, is the square footage and number of rooms for your home accurate? If the number is incorrect, the county may change the assessment without a formal appeal. If everything on the property card is correct but the assessed value still seems too high, your next step is to gather the following documentation to support an appeal. And don’t be surprised if the assessed value is lower than what you think the market value for your home is–many counties use a formula which uses a percentage of market value to determine assessed value. Ask what the formula is, because an assessment which is less than market value still might be too high.

If you have a current appraisal that supports the value being lower using recent market-value information, many counties will accept a copy of the appraisal with the appeal. If the appraisal is outdated, you can order a new one–just call me for a referral to a great appraiser. You can also visit the local assessor’s office or search online, and look through the public records for other homes that have similar features to yours, but have lower assessments. Additionally, contact me to get in touch with a great Realtor who knows your area. They will be able to give you current market information for your neighborhood, and help you see how your market value and assessed value stacks up against your neighbors’.

Submitting an appeal is generally a fairly simple process, but make sure to take the time to fill out all forms in advance and be prepared with your documentation if there is an in-person hearing that needs to take place.

More good news – according to the National Taxpayers Union, about 33% of property tax appeals succeed! Taking the time to review the accuracy of a tax bill could easily save you hundreds of dollars per year, adding up to thousands of dollars during the time you own your home. Please feel free to contact me for more information on this money-saving tip.

The Week’s Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of December 15 – December 19

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: stdrake@windermere.com

If you prefer to send your removal request by mail the address is:

Stacey Drake
2416 Second Avenue
Suite 101
Seattle, WA 98121

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.