Mar

4

curtis.mortgagemapp.com

Click the link to get my Mortgage Ap with great mortgage calculator tools, interest rate trends, and real time mortgage and real estate news. It is also a great way to share my information with your friends, family members, coworkers, and clients. You can email, text or call me right out of the Ap. Please download it, check it out and let me know what you think!

Curtis Schartz, Certified Mortgage Planner at First State Bank Mortgage

May

31

Click Here for My Featured Chart.

May

8

In This Issue  
Last Week in Review:The Jobs Report for April is in, but what did the news reveal about our economy?Forecast for the Week: A quiet week is ahead, but an important inflation report will be released.  

View: If you’ve ever forgotten the name of an important colleague or client, have no fear. These tips can help.

 

Last Week in Review  
Take this job and love it.And the Labor Department’s Jobs Report for April showed that fewer than expected people are able to do this, as fewer than expected jobs were created. Read on for details and what they mean for home loan rates. The Jobs Report showed that 115,000 jobs were created in April, with 130,000 private sector jobs offsetting government job losses. This number was a disappointment and below expectations. The only silver lining in the report were upward revisions to the previous month’s readings which added 53,000 more jobs than what was previously reported.  

The unemployment rate dropped a tick to 8.1% — the lowest since January 2009. However, the decline was mainly due to the labor force shrinking by 300,000, rather than by robust job growth. And as expected, we are starting to hear more and more about the Labor Force Participation Rate (LFPR). The LFPR dropped to 63.6, the lowest ratio since December 1981. Why is this important? The LFPR gives us a clear read of who is working and who is not. And if someone is not participating, then they are probably receiving some sort of social security or unemployment insurance. The bottom line is that it is tough to pay down debt when there are not enough people participating in the labor force.

 

Overall the Jobs Report was underwhelming and, unfortunately, further accommodative monetary policy or even more Bond buying (known as Quantitative Easing or QE3) will have a very limited effect on job growth. What’s more, the debt drama in Europe continues to escalate, as both Italy and Germany reported higher than expected unemployment rates, while Spain has slipped into its second recession since the financial crisis.

 

The events in Europe and potential softening of our economy have resulted in home loan rates remaining near historic lows. That means now continues to be a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 

 

Forecast for the Week  
After two weeks featuring a slew of economic reports, this week’s calendar is light. But that doesn’t mean there won’t be a battle for investing dollars in the Stock and Bond markets!

  • The first report won’t be released until Thursday with the weekly Initial Jobless Claimsreport. Last week, claims fell by 27,000, which was the largest weekly decline since May 2011.
  • On Friday, inflation at the wholesale level will be released in the form of the Producer Price Index (PPI). Last week it was reported that the year-over-year Core Personal Consumption Expenditures (PCE) rose to 2%, the high end of the Fed’s range.
  • The last report on Friday will be the first reading on Consumer Sentiment for May.

 

With so few economic reports this week, market players will be focusing in on the ongoing debt crisis in Europe, earnings reports and how the $66 Billion in Treasury Notes and Bonds will be received. All three of those news items could move Bonds and home loan rates this week.

 

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. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

 

When you see these Bond prices moving higher, it means home loan rates are improving — and when they are moving lower, home loan rates are getting worse.

 

To go one step further — a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

 

As you can see in the chart below, Bonds and home loan rates reached record best levels after last week’s Jobs Report. I’ll be monitoring the markets closely this week to see what happens next.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday May 04, 2012)

 

Japanese Candlestick Chart

 

The Mortgage Market Guide View…  
    It Pays to Have a Good MemoryIn today’s housing market, it can pay (quite literally) to have a good memory. That’s because a good memory can help you stand out from the competition — especially when you’re networking and trying to remember names.  

Unfortunately, many of us have trouble remembering the name of someone two minutes after we shake her hand. If that sounds like you, don’t worry… you’re not alone. It’s actually an extremely common occurrence for many people. The good news is there are a number of simple, practical steps you can take to improve your memory now and long into the future. Here are just two of the great tips for proactively strengthening your memory.

 

Tip #1: Neurobic Exercise

 

You know all about the wonderful effects aerobic exercise has on the heart, but have you heard of neurobic exercise for the brain?

 

According to Lawrence Katz, co-author of Keep Your Brain Alive: 83 Neurobic Exercises, the best exercise for the brain is to force it to form “new patterns of association” or new pathways. In other words, challenge your brain every day. Take it off autopilot and make it relearn or create new associations with the most routine activities of your day.

 

Katz’s book offers numerous examples of small changes you can make to activate your brain, including: brushing your teeth with the other hand; taking an alternative route to work; moving your wastebasket to the other side of your desk; closing your eyes while putting your key in and unlocking the front door; and changing where you and your family members sit at the dinner table.

 

So if you feel like your memory might be starting to slip a bit, try some of these simple neurobic exercises today!

 

Tip #2: Mnemonic Drilling

 

There are actually three steps or stages of memorization: acquisition, consolidation, and retrieval. That means, once we acquire new information, like someone’s name for instance, the way in which we consolidate that data will directly affect how well we’re able to retrieve it from memory.

 

Whether you’re a visual or auditory type of learner, there are many mnemonic devices that can help you to better organize or consolidate the new information that you need to recall.

 

Here’s an example of simple steps that might help:

 

First, associate the data you want to remember with common images. For instance, let’s say you meet someone named Jennifer Green. Imagine Jennifer playing golf, or picture her wearing all green clothes, or imagine her face painted completely green.

 

Second, think of associations you can use to help you remember this person. For instance, link Jennifer to the quality that best fits her personality (use alliteration and rhymes whenever possible): Jolly Jennifer Green.

 

Finally, connect sound to your memory by saying the name aloud.

 

Do this regularly and, before you know it, you’ll never forget anyone’s name again! And that can give you a nice advantage in networking and communicating with clients!

 

Economic Calendar for the Week of May 07 – May 11

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Thu. May 10
08:30
Jobless Claims (Initial)
5/05
NA
NA
Moderate
Fri. May 11
08:30
Producer Price Index (PPI)
Apr
NA
0.0%
Moderate
Fri. May 11
08:30
Core Producer Price Index (PPI)
Apr
NA
0.3%
Moderate
Fri. May 11
10:00
Consumer Sentiment Index (UoM)
May
NA
76.4
Moderate

 

 

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, 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.
Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Market Guide, 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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, purchase,

Apr

25

  Last Week in Review:There was a mix of good, bad, and downright ugly news. Find out how home loan rates responded.Forecast for the Week: The Fed meets, plus there’s news on consumer confidence, housing, the state of the economy, and more.  

View: There’s some new data on housing from the Census Bureau. Check out the details below.

 

 
     

 

  Last Week in Review  

 

     
  “Bad news goes about in clogs, good news in stockinged feet.” Welsh Proverb.And we certainly saw both good and bad news in the economic reports released last week. Here are the details…and what they mean for home loan rates. On the good side, Retail Sales in March rose by a nice 0.8%, as consumers bought all kinds of products across the board. And when stripping out autos, sales still grew. This adds to the increasing trend seen in January and February and is a good sign for our economy, as consumers don’t spend when they aren’t feeling optimistic about their financial situation.  

But over in the manufacturing sector it was not as pretty a picture, as both the Empire State Manufacturing Index and the Philly Fed Index came in below expectations. This is largely being attributed to a global slowdown, and experts say that the outlook for our manufacturing remains positive…but just not accelerating at the present time. Things weren’t as pretty in the housing sector either, as both Existing Home Sales and Housing Starts fell in March.

 

And things in the labor market were verging on ugly, as Initial Jobless Claims spiked sharply higher. The Labor Department reported 386,000 fresh Claims in the latest week, above the 375,000 that was expected…and well above the 350,000 range seen in recent weeks.

 

Also verging on ugly was news out of Europe. There is growing and very justified concern about Spain’s ability to pay down debt, meet new budget deficit targets, and avoid a bailout or debt restructuring. The Spanish situation has prompted the G-20 (Finance Ministers and Central Bankers of the 20 largest economies) to urge the European Central Bank to do more to contain their debt crisis as it threatens global growth. And let’s not forget that besides Spain, we still have France, Portugal, Ireland and Greece to deal with in future months and years.

 

So what does all of this mean for Bonds and home loan rates? There will likely be more safe haven trading into the relative safety of the US Dollar and US Bonds (which will benefit Mortgage Bonds, to which home loan rates are tied) as the uncertainty out of Europe escalates. And more bad economic reports here in the United States could add to this safe haven trading into our Bonds, just as more good economic news here would likely benefit Stocks at the expense of our Bonds and home loan rates.

 

This mix of factors will continue to impact the direction in which Bonds and home loan rates move in the weeks ahead. The takeaway is that home loan rates remain near historic lows and now continues to be a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     

 

  Forecast for the Week  

 

     
  The economic calendar this week will give the investor a broad view of the U.S. economy…but the Federal Open Market Committee (FOMC) meeting will be front and center in the minds of investors. Here’s a break down of what to watch:  

  • Consumer Confidence will be released on Tuesday…with Consumer Sentimentset to be delivered on Friday.
  • Also on Tuesday, New Home Sales for March will be released, followed by Pending Home Salesfor March on Thursday.
  • On Wednesday, Durable Orders– which are products that are supposed to last at least three years – will be released.
  • Initial Weekly Jobless Claimswill be released on Thursday. The number of new claims has been steadily rising in the past month, which is not a good sign for the labor markets. So all eyes will once again be on this report.
  • On Friday, the first reading on Gross Domestic Product (GDP)for the first quarter of 2012 will be announced.
  • Also on Friday, we’ll see the Employment Cost Index, which measures the costs of hiring and paying the American workforce. Higher costs could lead to inflation pressures, which could push Bond prices lower and home loan rates higher.

 

In addition to those reports, this week’s FOMC meeting will be closely watched by both the Bond and Stock markets for any clues on how the U.S. economy is holding up.

 

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. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

 

When you see these Bond prices moving higher, it means home loan rates are improving – and when they are moving lower, home loan rates are getting worse.

 

To go one step further – a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

 

As you can see in the chart below, the mix of news last week benefitted Bonds and home loan rates. I’ll be watching closely to see what happens this week.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Apr 20, 2012)

 

Japanese Candlestick Chart

 

 
     

 

  The Mortgage Market Guide View…  

 

     
      Fun Housing Facts The United States Census Bureau recently released some fun facts related to housing across the country, based on data for 2010. Here are just a few highlights from the release that you may find interesting…and may want to pass on to others.  

Heating Our Homes

 

  • 57 million = Number of houses heated by utility gas.
  • 2.2 million = Number of houses heated by wood.
  • 38,010 = Number of houses heated by solar energy.

 

From Home to Work

 

  • 25.3 minutes = Average time workers across the country spent getting from home to work.
  • 31.8 minutes = Longest commute time in the nation, which belonged to Maryland residents.
  • 16.1 minutes = Shortest commute time in the nation, which belonged to North Dakota residents.

 

Home Sweet Home

 

  • 2,392 square feet = Average size of a single-family house built in 2010. That number was down a little from 2,438 square feet in 2009.
  • 131.7 million = Number of housing units counted in the 2010 Census. Compare that to 37.2 million in the first housing census, which was conducted in 1940!

 

Bonus Fact!

 

The first housing census in 1940 featured 31 housing questions – including some we may find odd today, such as whether the house had a radio…toilets or an outhouse…electric lighting…and running water.

 

Conversely, the 2010 census only included two housing questions: (1) whether the home was owned or rented and (2) whether the respondent sometimes lived or stayed somewhere else. The number of housing questions in the census has dropped because we now ask a number of housing questions in the American Community Survey, which is sent to about 3 million households nationwide every year.

 

Over the years, housing has really changed. But regardless of the time or location, one thing remains the same…there’s no place like home!

 

Economic Calendar for the Week of April 23 – April 27

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. April 24
10:00
Consumer Confidence
Apr
NA
 
70.2
Moderate
Tue. April 24
10:00
New Home Sales
Mar
NA
 
70.2
Moderate
Wed. April 25
08:30
Durable Goods Orders
Mar
NA
 
2.4%
Moderate
Wed. April 25
12:30
FOMC Meeting
Apr
NA
 
0.25%
HIGH
Thu. April 26
08:30
Jobless Claims (Initial)
4/21
NA
 
NA
Moderate
Thu. April 26
10:00
Pending Home Sales
Mar
NA
 
-0.5%
Moderate
Fri. April 27
01:00
Gross Domestic Product (GDP)
Q1
NA
 
3.0%
Moderate
Fri. April 27
01:00
GDP Chain Deflator
Q1
NA
 
0.9%
Moderate
Fri. April 27
01:00
Employment Cost Index (ECI)
Q1
NA
 
0.4%
HIGH
Fri. April 27
01:00
Consumer Sentiment Index (UoM)
Apr
NA
 
75.7
Moderate

 

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, 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.
Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Market Guide, 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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase,

Oct

27

Click Here for My Featured Chart.

Curtis Schartz, Certified Mortgage Planner, Pulaski Bank HARP Refinance, Lees Summit, Overland Park, Kansas City, Leawood, Lenexa, Olathe, Shawnee, Liberty

Sep

15

August Core CPI (Consumer Price Index) rises to 2.0%. This increase represents the upper-end of the Fed’s threshold. The Consumer Price Index measures changes in the price level of consumer goods and services and provides a hugely important read on consumer inflation. Inflationary signs, as seen here, could put a dent in Bond prices

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Sep

7

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Aug

23

Mortgage Market Guide – Featured Charts.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Aug

22

Mortgage Market Guide – Featured Charts.

Curtis Schartz, Certified Mortgage Planner with Pulaski Bank Lee’s Summit, Overland Park, Kansas City

Dec

20

In This Issue

Last Week in Review: The Fed met, and Congress passed the Tax Cut Bill. But what do both of these mean for home loan rates?
Forecast for the Week: Housing, inflation, and jobs news – all in a holiday shortened week.
View: As you unwrap gifts this holiday season, don’t throw the wrapping paper in with your Yule Log… find out why, and other tips on keeping your holiday season safe and fun.
Last Week in Review

“All good things must come to an end…” or so the popular saying goes. And right now, many people are wondering if this sentiment holds true for the historic low rates we’ve seen this year. Here’s what last week’s news suggests.
First, it’s important to understand that home loan rates are based on Mortgage Backed Securities, which is a type of Bond. Bonds typically help provide some built in “assistance” when the nation is suffering economic headwinds. For example, negative economic news serves to help Bond prices improve and rates decline, including home loan rates. This is helpful to have when the economy is struggling, as buyers of all products – including homes – need the extra incentive of low rates to be encouraged to buy.
But now, the sharply higher expectations for future economic growth has caused rates to climb – particularly including home loan rates, since the Fed announced its second round of “Quantitative Easing” or QE2 on November 3rd. With QE2, the Fed will purchase $600 Billion in Treasury Securities through mid-2011 to keep our economic recovery on track.
But is there any likelihood rates can rebound? Many experts expect that home loan rates will continue to move higher over time because:
• At its meeting last week, the Fed left the door open for further QE programs if our economic recovery requires which, like QE2, could hurt Bonds and home loan rates.
• Congress passed the $858 Billion Tax Cut Bill, and while this is a good economic stimulus, in the short run it adds to the ever-growing deficit – also bad for Bonds and home loan rates.
• Last week’s Producer Price Index and Consumer Price Index Reports showed that the Fed appears to be on track with their goal of stimulating a bit more inflation. Inflation erodes the value of the fixed return provided by a Bond, which causes home loan rates to rise.
It’s important to understand that rates don’t simply rise in a straight line. In fact, Bonds and home loan rates did have a late-week rally last week, and that trend of rates worsening with improving dips here and there like we saw last week may be what’s in store for us in the weeks and months ahead. At the end of the day, the ongoing and potential addition of further stimulus from the Fed, combined with the stimulus from the tax cuts, will make it tough for Bonds and home loan rates to return to the levels seen earlier this year.
But the good news is that home loan rates are still extremely attractive right now. If you have been thinking about purchasing or refinancing a home, call or email me now to get started. Or forward this newsletter on to someone you know who may benefit from today’s historically low rates.
Forecast for the Week

It will be a holiday shortened week, with the Bond Market closing at 2:00pm ET Thursday and both the Stock and Bond Markets closed Friday in honor of the Christmas holiday. But there will be plenty of action first, including:
• A double dose of housing news with Wednesday’s Existing Home Sales Report and Thursday’s New Home Sales Report.
• Wednesday also brings a read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.
• Big inflation news comes on Thursday with the Personal Consumption Expenditure (PCE) Index, which is the Fed’s favorite gauge of inflation, plus there’s also the Personal Income and Personal Spending Reports, which give us some information on the consumer perspective of the economy.
• Thursday’s Initial and Continuing Jobless Claims Reports will also tell us if the good trend continues – last week’s Initial Claims was the second lowest number seen during 2010, and also the third decline in four weeks.
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.
As you can see in the chart below, Bonds and home loan rates rallied at the end of last week. Now would be a great time to call or email me if you have any questions about your situation!

———————–
Chart: Fannie Mae 4.0% Mortgage Bond (Friday, December 17, 2010)

The Mortgage Market Guide View…

Make Your Holiday as Safe as it is Happy
The holiday season is a special time of year, but the Consumer Product Safety Commission (CPSC) wants to remind everyone that it can also be dangerous. So the CPSC has issued a number of safety tips for the holidays and a holiday safety video to help keep families healthy, safe, and happy this season.
Here are just three of the important tips that the CPSC posted on its website:
1. Choose Age-Appropriate Toys. Look at the age recommendation on the toys you are choosing and match that recommendation to your child. Avoid toys with small parts for children younger than three-years-old. Those small parts can cause a child to choke. For children under six-years-old, avoid play sets or building toys with small magnets. A child can swallow those magnets, which can result in a serious injury or even death. Starting at a young age, teach your children not to put toys in their mouths.
2. Gear Up. If sports-related gifts such as ride-on toys, bicycles, skates or scooters are on your gift list or around your house, make sure to include helmets that are sized to your child’s head and other appropriate safety gear. And then, make sure your child wears the gear properly EVERY time he or she uses the toy or sports equipment.
3. Plastic Wrap. Keep a trash bag at your fingertips while your kids are opening presents. That way, you can immediately throw away plastic wrappings and other toy packaging before they become dangerous playthings. As an added bonus, it makes your cleanup faster, too.
Plus…
Here are two bonus tips from the CPSC’s Twitter account:
• “Heated rooms rapidly dry out live trees. Be sure to monitor water levels and keep the tree stand filled with water.”
• “Never put wrapping paper in the fireplace. It can result in a chimney fire.”
If you ever have questions about the safety of a toy or product, visit the CPSC’s website at http://www.cpsc.gov/onsafety/.
You can also follow the CPSC on Twitter at http://twitter.com/OnSafety and even watch safety videos on YouTube at http://www.youtube.com/USCPSC.
Have a safe and happy holiday!

————————–
Economic Calendar for the Week of December 20-24, 2010
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 20 – December 24
Date ET Economic Report For Estimate Actual Prior Impact
Wed. December 22 08:30 Gross Domestic Product (GDP) Q3 2.7% 2.5% Moderate
Wed. December 22 08:30 Chain Deflator Q3 2.3% 2.3% Moderate
Wed. December 22 08:30 Existing Home Sales Nov 4.68M 4.43M Moderate
Thu. December 23 10:00 Consumer Sentiment Index (UoM) Dec 75.0 74.2 Moderate
Thu. December 23 08:30 Jobless Claims (Initial) 12/18 424K 420K Moderate
Thu. December 23 08:30 Personal Consumption Expenditures and Core PCE Nov NA 0.9% HIGH
Thu. December 23 08:30 Personal Consumption Expenditures and Core PCE Nov 0.1% 0.0% HIGH
Thu. December 23 08:30 Personal Spending Nov 0.5% 0.4% Moderate
Thu. December 23 08:30 Personal Income Nov 0.2% 0.5% Moderate
Thu. December 23 10:00 New Home Sales Nov 303K 283K Moderate

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 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: curtis@kcmortgageplanner.com

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

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.

Certified Mortgage Planner, Curtis Schartz, home, Home loan, Interest Rates, kansas city, lees summit, overland park, Pulaski Bank, purchase, Refinance, shawnee

Dec

13

In This Issue

Last Week in Review: Are rates going to come back? Here’s a break down of possible scenarios!
Forecast for the Week: Get ready for a busy week. Find out what you should watch.
View: Know someone in college or headed there soon? Watch the video below for tips to avoid unexpected college costs.
Last Week in Review

“Where do we go from here?” That question from Alicia Keys’ song is on the minds of many Americans, as they wonder where home loan rates are headed after the recent negative news for Bonds.
Last week, Congress was busy at work on negotiations to extend the Bush-era tax cuts. That news kept a lid on any improvement for Bonds and home loan rates, due to the prospect of an ever-increasing deficit.
And adding to the troubles for Bonds and home loan rates last week was news that inflation is growing in China… and growing fast. How does that impact us? Remember, it’s a global economy, so Bond prices all over the world worsen on news of inflation, which is bad for home loan rates.
So the big question is: Will home loan rates go back down?
Although rates are still near historic lows, they have been headed up… and indications are that those unbelievably low home loan rates may be behind us. In fact, there are only a few things that would bring back the lows that we saw in early November:
• If the tax cut package doesn’t get passed, it would be very bad news for the economy and Stock market – but it would help interest rates.
• If the Fed’s recent round of Quantitative Easing falls on its face and doesn’t meet its mission of creating inflation, boosting Stock prices, lowering unemployment and creating consumer demand – Bond prices could make some gains as the threat of deflation reemerges. But this is a long shot.
• If the financial problems in Europe worsen significantly – which would drive investors into the safe haven of the US Bond market – it could help Bond prices, but probably only modestly.
Realistically, the chances of these events happening are unlikely – and in the end, rates may see some brief and fleeting improvements, but many experts believe they will likely continue to creep up over time. And when you include the stimulative action of extending the present tax rates and adding further cuts, it’s tough to see Bonds or home loan rates improving much.
The good news is that home loan rates are still extremely attractive and are still near historic lows for now. If you or someone you know has been thinking about purchasing or refinancing a home, NOW is the time to call or email to get started.
Forecast for the Week

Get ready for a busy week of economic reports and news that could impact home loan rates!
• We’ll start off Tuesday morning with the Retail Sales report for November, as well as the Fed’s final FOMC Meeting and Policy Statement of the year coming on Wednesday.
• We’ll also see new inflation reports starting on Tuesday with the Producer Price Index (PPI), which measures inflation at the wholesale level. The very next day, we’ll see the Consumer Price Index (CPI) with a look at inflation on the consumer level. With all of the recent talk over inflation concerns in the future, it will be important to see what these reports reveal – since inflation is the archenemy of Bonds and home loan rates.
• We’ll also get a dose of manufacturing news in the Empire State Index, which looks at New York State’s manufacturing sector, and is a good gauge of manufacturing overall. On Thursday, we’ll also see the Philadelphia Fed Index, which is another important manufacturing report. Those two indices have the potential to impact the market, since they indicate the health of the manufacturing sector in the US.
• Thursday brings the Initial and Continuing Jobless Claims Report. Last week, Initial Jobless Claims came in at 421,000, which was below expectations. That was encouraging news, but we still need to see consistent readings below 400,000 before real confidence in the labor market can take hold.
• Finally, we’ll see more housing news this week, when reports on Housing Starts and Building Permits in November are released on Thursday.
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.
The chart below shows the recent direction of Bonds – and, therefore, home loan rates. The important thing to note is the downward trend, which shows how Bond pricing and therefore home loan rates continued to worsen last week.
Fortunately, there’s still time to lock in at near historic lows. It only takes a few minutes to see if this makes sense for you, or one of your friends, family members, neighbors, clients or coworkers. Call or email today, and I’ll be happy to help right away.

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Chart: Fannie Mae 4.0% Mortgage Bond (Friday, December 10, 2010)

The Mortgage Market Guide View…

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College tuition costs are staggering these days – and so are some of the college-related expenses that you may not be expecting. Watch this video from Kiplinger.com on unexpected college expenses to come up with ways to avoid those indirect costs.
Whether you’re planning to send a child to college soon or you know a student in college this year that has already experienced some of these unexpected costs, this video is invaluable!

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Economic Calendar for the Week of December 13-17, 2010
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 13 – December 17
Date ET Economic Report For Estimate Actual Prior Impact
Tue. December 14 08:30 Producer Price Index (PPI) Nov 0.5% 0.4% Moderate
Tue. December 14 08:30 Core Producer Price Index (PPI) Nov 0.2% -0.6% Moderate
Tue. December 14 08:30 Retail Sales Nov 0.8% 1.2% HIGH
Tue. December 14 08:30 Retail Sales ex-auto Nov 0.6% 0.4% HIGH
Tue. December 14 02:15 FOMC Meeting 12/14 Unch 0.25% HIGH
Wed. December 15 09:15 Capacity Utilization Nov 75.0% 74.8% Moderate
Wed. December 15 09:15 Industrial Production Nov 0.3% 0.0% Moderate
Wed. December 15 08:30 Empire State Index Dec 3.0 -11.14 Moderate
Wed. December 15 08:30 Core Consumer Price Index (CPI) Nov 0.1% 0.0% HIGH
Wed. December 15 08:30 Consumer Price Index (CPI) Nov 0.2% 0.2% HIGH
Thu. December 16 08:30 Jobless Claims (Initial) 12/11 425K 421K Moderate
Thu. December 16 08:30 Housing Starts Nov 545K 519K Moderate
Thu. December 16 08:30 Building Permits Nov 558K 550K Moderate
Thu. December 16 10:00 Philadelphia Fed Index Dec 12.5 22.5 Moderate
Thu. December 16 10:00 Index of Leading Econ Ind (LEI) Nov 1.2% 0.5% Low

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Certified Mortgage Planner, Curtis Schartz, home, Home loan, Interest Rates, kansas city, lees summit, overland park, Pulaski Bank, purchase, Refinance, shawnee

Sep

1

Interest rates for Johnson County, Jackson County and the surrounding Kansas City metro area are improving today. Mortgage Backed Securities have been fighting a tough triple layer of resistance the last couple of days. If they are able to break through the resistance we could see lower rates in the near future. If Mortgage Backed Securities are turned away once again from this tough layer of resistance we will see rates go up again. September is notorious for being a poor month for the stock market. If the market continues to falter like it is right now we could see a convincing break above the current resistance and see lower interest rates. The door usually doesn’t stay open very long when the opportunity arises to lock in for a low interest rate. The best strategy at this point is to have everything ready to go and lock in at the first sign that the market starts to turn for the worst. Call Curtis Schartz at Pulaski Bank Home Loans to get your Mortgage Plan in place so you are prepared to save the most amount of money on a No Cost Refinance.

Your Certified Mortgage Planner for Life – Curtis Schartz

Aug

26

Interest Rates in Overland Park and Lees Summit have been improving over the last week. The Bond auctions are going farely well thus far this week. However Mortgage Backed Securities are up against a tough layer of resistance. This could keep rates from moving much lower in the  near term. If you haven’t refinanced yet now is an opportune time to get locked in on a no cost refinance and take advantage of these low rates. Contact Curtis Schartz your Certified Mortgage Planner to find out about refinancing your home.

Aug

14

Lower interest Rates for the Kansas City, Overland Park, Shawnee and Lees Summit Market Continue. Mortgage Backed Securities rallied again today to test resistance at the 200 day moving average. By the end of the day Mortgage Backed securities were pushed back lower, yet ended the day in the positive. Rates have improved over the last week by approximately .25%. We are in a target zone for many people who have not refinanced yet to be able to take advantage of low rates. Call Curtis Schartz your Certified Mortgage Planner today to save the most on a no cost refinance. ARM rates continue to stay consistently lower. Some rates are in the 4.25% range. Call me to see if this fits into your Mortgage Plan.

Aug

13

Today’s interest rates for the Kansas City and Lees Summit Market are moving lower. There was a strong foreign participation in today’s 30 yr bond auction. With the well received auction Mortgage Backed Securities have rallied back today. Currently we have a floating bias as the Mortgage Backed Securities test resistance at the 25 day moving average. All in all this is good news for marginally lower rates. With all of the auctions over for the next couple of weeks we could see rates move a little lower. Stay tuned in this volatile market. The tide can change quickly. As your Certified Mortgage Planner with Pulaski Bank I will keep a watch on it for you.

Thanks – Curtis Schartz

Aug

5

As your Certified Mortgage Planner in Lees Summit and Overland Park I am here to help guide you through the turbulent Mortgage Market and help you to get the best interest rate. Today Mortgage Backed Securities are moving with great volatility. They have already traded in an 82 basis point range. Current direction for rates is lower attempting to stabilize. Today the ADP employment report missed the mark to the low side fueling the volatility and helping bonds to rebound from the lows of the day. Additionally the ISM services index also came in worse then expected helping to support an improvement in bonds. The economy and job scene is not out of the woods yet. Poor economic news will cause the bonds markets to rise which leads to lower interest rates. The opposite is also true – positive economic news will cause bonds to fall and lead to higher interest rates.