Buying a Foreclosed Home?

Top Problem Areas to Look Out For:
Today’s real estate landscape offers some great buys for savvy real estate consumers, especially when it comes to foreclosure properties. Unfortunately, even though there are already a large number of foreclosures on the market, analysts are predicting that yet another wave of distressed properties will crop up in the coming months.
As a Member of the Top 5 in Real Estate Network®, I’ve consulted with many clients seeking to capitalize on a foreclosure purchase. I always advise them, however, to weigh the pros and cons. While a foreclosure could represent your best chance to get a great deal, make sure you educate yourself about the potential pitfalls of purchasing a distressed property in advance – and what correcting those pitfalls might cost. In most cases, it’s not so much about what damage occurred but rather the source of the damage and how long before the problem was addressed.
Here are the top 10 signs that may indicate trouble in a foreclosed home:

Unheated house in winter months. If the home has been properly winterized, there’s no need for heat. But if the home has not been properly winterized, pipes will burst and cause water damage.
Missing sinks, toilets and other fixtures. Make sure they’ve been properly removed and not ripped from walls and floors.
Peeling, bubbling and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms), or a musty odor all indicate water damage and, potentially, the presence of moisture and mold.
Fungus growth inside cabinets, behind drawers and built-ins. Fungus could mean that there has been water damage. Since water falls down, look for the source above the mold.
Blocked drains or pipes will cause future problems and may have already created sewage backups.
Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This could point to potential soot damage or a malfunctioning furnace.
An older home with extensive renovations. Check with the city for pulled permits in order to get remolding details. If asbestos is present and has been disturbed, be sure it’s been remediated by a certified specialist.
Excessive painting of every nook, cranny, door and floor may mean that the seller is covering up mold.
Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.
Air quality. The air quality within a home tells a lot about the home’s condition. Be sure to include air and surface testing in your home inspection. It’s a few hundred dollars well spent.
There are indeed many great opportunities in today’s market, but proper education and preparation are essential to making the right investment. Please e-mail me for further information and be sure to forward this article to others who might be considering a foreclosure purchase.
MaryAnne Simmons
Premier Real Estate & Home Services 
Mobile: 859-983-4663
MaryAnne@MaryAnneSimmons.com
http://www.maryannesimmons.com

from Mortgage Commentary 2010 (alamode): 

There are six relevant economic reports scheduled for release this week in addition to the minutes from the most recent Fed monetary policy meeting. With at least one piece of data being posted each day this week, it is fairly safe to assume that we will see another active week in the financial and mortgage markets.

Unlike many Mondays, tomorrow does bring us one of those reports. July’s Personal Income and Outlays report will be released early tomorrow morning, giving us a measurement of consumer ability to spend and current spending habits. It is expected to show an increase of 0.2% in income and a 0.3% increase in spending. Weaker than expected numbers would be considered good news for the bond market and mortgage rates.

The Conference Board will post their Consumer Confidence Index (CCI) for August late Tuesday morning. This index measures consumer sentiment about their personal financial situations, giving us a measurement of consumer willingness to spend. That is important because consumer spending makes up two thirds of the U.S. economy. A decline in confidence would indicate that surveyed consumers probably will not make a large purchase in the immediate future. That sign of economic weakness should drive bond prices higher, leading to lower mortgage rates Tuesday. It is expected to show a reading of 50.0, which would be a small decline from July’s 50.4. The lower the reading, the better the news for bonds and mortgage pricing.

Also Tuesday is the release of the minutes from the last FOMC meeting. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member’s views on the economy and inflation and if they will hint what the Fed’s next move may be. But this is one of those events that can cause significant movement in rates after its release or be a non-factor. I suspect that this particular release will cause a little movement in bond prices, but not enough to significantly affect mortgage pricing.

Wednesday’s only important news is the release of the Institute for Supply Management’s (ISM) manufacturing index at 10:00 AM ET. This index measures manufacturer sentiment and is expected to show 53.0, which would be a decline from last month’s reading of 55.5. A reading above 50 means that more surveyed manufacturers felt business improved during the month than those who felt it worsened. A larger than expected decline in the index would likely cause selling in the stock markets and lead to an improvement in mortgage rates Wednesday.

There are two reports scheduled for Thursday. The first is the revised 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without in flation concerns. It is expected to show a downward change from the previous estimate of a 0.9% decline. Forecasts are currently calling for a 1.6% drop, meaning productivity was weaker than previously thought. This would be negative news for the bond market and mortgage rates.

July’s Factory Orders data will also be released Thursday morning. This report measures manufacturing sector strength and is similar to last week’s Durable Goods Orders, but includes orders for both durable and non-durable goods. It is expected to show a 0.3% increase in new orders. A smaller than expected rise would be favorable for bonds, but I don’t see this data causing much movement in rates unless its results vary greatly from forecasts.

The biggest news of the week comes Friday morning. The Labor Department will post the unemployment rate, number of new jobs added or lost and average hourly earnings for August early Friday morning. The ideal scenario f or the bond market and mortgage rates is rising unemployment, a larger than expected drop in payrolls and earnings to remain unchanged. Analysts are expecting to see that the unemployment rate moved from 9.5% to 9.6% and that 118,000 jobs were lost during the month. Weaker then expected readings would be very good news for bonds and lead to lower mortgage rates Friday. However, if we get stronger than expected numbers, mortgage rates will probably spike higher Friday.

 Some Green Tips For Your Lawn

We spend lots of time, energy and money making our lawns beautiful and user-friendly.

Here are some tips for making them environmentally friendly as well.

Grass clippings contain valuable nutrients taken right out of your soil. So isn’t it odd that

we gather our grass  clippings in bags and ship them off to a land fill somewhere on the other

side of the county?

1. Mulch Your Grass Clippings when possible.

Did you know that mulching your grass and leaves can save you as many as two

fertilizer applications every year?  Most lawn mowers come with a mulching blade

that chops grass and leaves into small pieces and deposits them right back into the

lawn.

Mulched leaves – especially sugar and red maple leaves – provide a degree of natural

weed control when mulched into the lawn. Sometimes it is not practical to mulch

your leaves because you have too many of them. But often it is – and it helps your

lawn too!

2. Plant trees, shrubs and flowers – You know that trees are good for the

environment. They help clean the air, return moisture to the air and provide shade

from the hot sun.  Shrubs, flowers and bushes also have many benefits other than

just adding beauty. They help stimulate the soil, add bio-diversity to your yard, and

attract birds and other wildlife.

3. Use Fertilizer Wisely – Synthetic fertilizers almost always contain nitrogen and

phosphorous. Nitrogen is what your grass needs for healthy growth. Much of your

lawn’s nitrogen requirements can be supplied by mulching your grass each time you

mow it.

Phosophorous (the second number) is usually unnecessary for healthy lawns, and it

has some negative effects on the environment. Phosphorous that ends up in our

rivers, lakes and ponds stimulates plant growth which disrupts the habitat of fish and

other water life. Look for a fertilizer than has “0″ phosophorous.

Organic fertilizers may actually contain more phosophorus than synthetic ones, so

read the label carefully.

From my good friend Wayne Thompson, Walden Mortgage, Lexington, KY

Last Week in Review

Heigh Ho, Heigh Ho, It’s Off to Work We Go! If ever there was a week to sing that old Disney? song, it was last week when Americans received some good employment news. Despite a worse-than-expected ADP National Employment report – which isn’t known for its accuracy – the Initial Jobless Claims report came in on Thursday with some good news. According to the report, Americans filing for unemployment benefits came in at 550,000, versus the 580,000 expected. In addition, the four-week moving average declined for the sixth consecutive week.
The markets received more evidence of an improving job market on Friday. The Labor Department reported 247,000 jobs lost in July versus economists’ expectations of 328,000 jobs lost. As you can see in the chart below, this is down pretty sharply from June’s lower, revised 443,000 jobs lost and the smallest loss since August 2008. Even better, the Unemployment Rate dropped to 9.4%, from the prior month’s reading of 9.5%. This reading broke a streak of 9 straight monthly increases and gave a lot of credibility to the good news in the job market.

The employment news is good news for the economy because it may signal that the worst recession in our lifetime could be ending. That said, the Obama Administration agreed on Friday that we’re seeing the light at the end of the tunnel, but cautioned that the country still has a lot further to go and that the US will not have a true recovery as long as job losses continue.
A stronger job market can also signal improvement in the housing market. We saw indication of that last week as the Pending Home Sales Index came in at 3.6%, which was much better than the 0.7% that was expected. The National Association of Realtors also reported that Pending Home Sales rose in June for the fifth straight month, fueled by low home loan rates and bargain home prices. Overall, the news was a strong indication that the housing market may be looking to improve.

Overall, the economic news helped boost Stocks, as the Dow gained 114 points to close the week at its highest level of the year. The economic news and increase in Stocks last week, however, put pressure on Bonds, which ended the week lower, putting upward pressure on home loan rates.

Forecast for the Week

The Retail Sales Report comes out this Thursday, giving us our first picture of consumer spending for the month of July. Last month’s report came in better than expectations at 0.6%, but that number was slightly skewed by the high gasoline station sales. This month’s reading is expected to come in at 0.4%. With this report, we will see, among other things, how much impact the government’s Cash for Clunkers program has had on the retail picture.
Another big mover this week could be the Consumer Price Index, which is due out on Friday. Last month’s report showed that the cost of living in the US rose more than forecast, due largely to a jump in energy costs. Overall, core inflation remained in the Fed’s comfort zone, but that didn’t stop inflation concerns from becoming a hot topic. And for good reason – when lenders see changes in inflation or even anticipate a rise, they may increase their interest rates to make up for the losses they expect. With concerns already out there, lenders and investors will be watching this report closely.
In addition to these reports, the Treasury’s record auction of $75 Billion worth of 3-year and 10-year Notes could shake things up. The markets will definitely be paying attention to how the auction is received. Why? Let’s look at it this way, the flood of auctions lately has been like an all-you-can-eat buffet of Treasury securities – as fast as the offerings can be bought, the Treasury keeps refilling the bowls with a seemingly endless amount of supply. In the end, investor appetites may slow down as more and more supply just keeps on coming. Should that happen, higher rates may be needed to induce further buying. I will keep an eye on this situation this week and keep you posted.
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, Mortgage Bonds traded sharply lower due to strong Pending Home Sales, the announcement of another Treasury auction, and better-than-expected employment news.

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

Have you ever wondered if it is practical to consider powering your house with solar

electricity? Well, in a recent article at <a

href=”http://home.howstuffworks.com/home-improvement/energyefficiency/

question418.htm”>How Stuff Works</a> they asked the question “How

many solar cells would I need in order to provide all of the electricity that my house

needs?”

Making a series of assumptions about electricity use and basing the hardware costs

on today’s rates, the writers concluded that it would cost at least $30,000 to

generate enough to provide the electrical requirements of a typical home. And that

doesn’t even include the cost of space heating, water heating, cooking, and clothes

drying – all of which it was assumed would be done by natural gas.

The numbers go like this. A “typical” home in the US requires an average of 600

watts per hour every 24 hours to run the lights, appliances, computers, refrigerators,

TVs, and fans and motors on other appliances such as the furnace, clothes washer

and dryer, and so on. That is approximately 14,400 watt-hours per day.

To generate that much electricity using solar cells you would need about 41,000

square inches or 285 sq. ft. of solar panels. At today’s prices that would come to

about $16,000. And then, because the sun is not available for parts of some days or

at all on other days you would need a battery storage system that would cost at

least the same – roughly another $16,000. So that puts the price at about $32,000

for the system.

At today’s cost of electricity off the grid that much electricity would cost roughly

$525 per year. At these rates, to recover the up-front costs would take more than 50

years. Long before that time had passed the entire system would have to be. In fact

with today’s technology the battery system would probably have to be replaced

several times over that time period. So it is no wonder that not very many “solar

houses” are being built.

Even if we accept these numbers at face value it does not mean that solar energy

has no place in the energy mix of the future. It just means that it is important to

think long and hard about where it is practical to use it.

From the Lexington`Herald-Leader Sunday, August 2, 2009LBAR announces $555 million in retail sales

The Lexington-Bluegrass Association of Realtors reported 3,404 residential real estate year-to-date sales totaling $555 million for Central Kentucky as of June 30, 2009. 

The Housing Affordability Index (HAI) for June 2009 was 161.  The latest published national HAI was 171 for May 2009-the Bluegrass region outpaced this index in May 2009 with an index of 172.  An HAI of 172 means that the median family income is 173 percent of the necessary income to qualify for a median priced home using a 20 % down, 30 -year fixed rate mortgage.

Additionally, sales increased 8 percent in Fayette County alone for June  2009 vs. June 2008.  Median Sales prices prices remained stable year-to-date, falling 3 percent.

This is really true, as our TEAM Real Estate has had a great increase in sales.  Housing Affordability is phenonomenal and the first time homebuyer’s tax credit has finally kicked-in and folks are getting it !!!

If you haven’t  thought about buying a home now, whether it is a first-time home, a move-up (check with your agent about how great a time to move up in a down market), or down-sizing at this time or in this season of your life, NOW may just be the time.  As the trite saying goes, there may never be a better time to buy.  But this is true for my lifetime probably, and from my past experience of 26 years.

On another great note, my daughter, who has been in real estate for the almost 7 years as a Broker-Associate in Chicago, working now, for an awesome real estate brokerage, @properties in Chicago, has reciprocated to KY and is truly joining our TEAM Real Estate.  She will continue to be licensed in IL, as I am too now, but is looking forward to helping her friends and family in KY, as well as in Chicago, with all their real estate needs.  Kelly Karls (her old friends still call her Kelly Beth or KB, and her husband, Eric, and their 2 precious little girls, will also have a 2nd home in Lexington.   Welcome Home, KB !!!

I  now have my license in KY, TN, NC, SC, AL, FL, and IL.  With our TEAM, we can help you  with so many real estate needs, and help you make wise real estate decisions.

Our TEAM Real Estate is really enjoying such success with our staging company, Premier Designing Details, as we now have 4 sets of  staging furniture, to help merchandise/stage and market your home For Sale.  Check out  our website:  www.PremierRealEstateAndHomeServices.com  

 Call on our TEAM Real Estate now to Sell  or Buy.   maryanne simmons TEAM Real Estate

Top Remodeling Projects for Boosting Your Home’s Value

Whether you are thinking about putting your home on the market or you are concerned about increasing your home’s equity in a time of depreciating house values, knowing which remodeling projects yields the best return on investment, is critical.

Not all home remodeling projects are equal in terms of ROI, however. Here are the National Association of Home Builder’s suggestions for the best ways to add value to your home:

• A Home Office Remodel
With more and more people telecommuting in today’s difficult business climate, home offices are becoming less of a luxury and more of a necessity. Creating a state-of-the-art space for potential teleworkers is a surefire way to increase your home’s value.

• Renovate or Add a Family Room
A family room is an excellent way to make existing homes more like new construction. Take into account what homes in your area are like. People like to purchase homes that blend with other homes around them.

• Replace the Roof
The roof is one of the first impressions people have of a home. Replace an old roof or change the character of your home by looking into architecturally styled roofing tiles.

• Landscape Your Yard
Landscaping is also an integral part of your home’s first impression. A professionally landscaped yard adds value to your home and increases your living space.

• Replace Old Windows
Thirty percent of a home’s energy is lost through its windows. Replacing old windows with energy-efficient ones ups the overall quality of the house and saves you money on monthly utility bills.

• Remodel Your Basement
Do you have space that serves as a black hole of unused items…like your basement? Remodeled basements make excellent game rooms or guest suites, adding value to your home without adding space.

• Paint, Paint, Paint
It’s been said over and over but can’t be emphasized enough. Hire a professional if you need help and keep the colors neutral if you’re looking to sell.

• Remodel Your Kitchen
Kitchens sell a home, and in this case, size does matter. But a kitchen remodel is a long-term investment; you’ll see payback 10 years down the road. Sometimes doing it yourself can save money, but always bring in a professional for the big jobs.

• Remodel or Add a Bathroom
A bathroom remodel can mean making the most of your current space by upgrading fixtures, flooring and lighting. Or add a bathroom and automatically increase the value of your home.

For more information on adding value to your home, visit www.nahb.org/remodel, or in Canada, www.chba.ca.
As a Member of the Top 5 in Real Estate Network®, I am happy to provide specific remodeling suggestions based on your individual needs and home values in your neighborhood. Please e-mail me for more information or to receive a complimentary copy of Top 5’s Home Improvement Q & A Guide. Also, if you feel this article can be of benefit to your family and friends, please feel free to forward this email to them.

Sincerely,

MaryAnne

MaryAnne Simmons
Premier Real Estate & Home Services
Top 5 in Real Estate Member
MaryAnne@MaryAnneSimmons.com
www.maryannesimmons.com

 During warm-weather months, you have a primitive urge to clean up, clean out, and re-arrange your living space. Maybe it was easy for our forebears to clean out their caves, but for many of us it becomes a real challenge.

Just about everyone would like to have more living space. Here’s the secret most professionals agree upon: clutter is the enemy. It’s a challenge for most people to be ruthless when cleaning out their living area (or closets). But the results are a more serene and peaceful environment that will soothe you when you open your front door.

Think about your options. Being tough is easier when you know you are giving away items to a charitable organization, and that someone in need will make good use of them; or, that you’ll make a little money by selling them. Live by the rule: reduce, resell, and recycle.

Lauren Wilkins, an Interior Design instructor at The Art Institute of New York City, says summer is prime time for entertaining when everything is more casual, so lighten the feel of your environment. She suggests having small occasional tables, benches or stools to pull out of the closet when company comes. Scale is important; remove a big table and add nesting tables.

Brightening up the whole color scheme is simple and can be done inexpensively. Vibrant colors are summery, or if you prefer, cool colors can create a serene environment — think of the blues and aquas of the ocean, a lake or a pool.

“The heavy objects like major pieces of furniture will stay, but pillows, throws and light-weight curtains can be bought very inexpensively, and can change the tone of the room,’ Wilkins says. ‘The dark colors of fall — burgundy, brown, deep olive — are switched to bright florals, stripes or light solids. These are inexpensive but effective changes.”

LaToya Nelson, also an interior design instructor at The Art Institute of New York City says, “Think about people in the space in summer. Most people do entertain more, so visualize how your interior and exterior interact together. Emphasize the flow between the interior and the patio, terrace or lawn.”

“Roll up your heavy rug, add a light colored straw rug,” she suggests. She too is an advocate of nesting tables for entertaining.

Nelson emphasizes sustainability: “Help the environment by making sure the sun doesn’t blaze through the windows leading to an increase in air conditioning use.  Window treatments can help. They contribute to the aesthetic environment but also act as thermal barriers by reducing the direct impact of the sun,” she says.

“If you have direct southern exposure, protect the room,” Nelson says. “Eco-friendly products utilizing rapidly renewable or recycled materials may enhance the interior atmosphere by connecting the interior environment with nature. And of course, bringing plants inside is a way of bringing the outside in.”

Both instructors agree that this season it can be more than furniture you rearrange — it can be your attitude and awareness of nature and its harmonious relationship with your home space.

To learn more about The Art Institutes system of schools, visit www.artinstitutes.edu/nz.

Starting a Compost Pile

Having a compost pile keeps organic yard and household waste out of your local

landfill. It also creates a rich “natural” mulch for your flowerbeds and vegetable

garden.

Here is how to create your own compost pile:

1. Create a pile (without a container) in an out of the way corner of your yard. Or

you can, build a simple three-sided compost box about three feet tall and three feet

square. Adding a removable front to your box is a good idea too. A compost box will

allow you to pile up enough organic material so that heat builds up and

decomposition is accelerated.

2. Properly managing your compost pile will speed up the process. First, you should

regularly turn your compost over with a spade. Second you should keep it damp, but

don’t let it get soaked regularly. If you live in a dry climate you should spray your

pile with a hose every few days. If you live in a damp climate you may have to keep

it covered with a tarp between the application of moisture.

3. Your pile should be located where it can get some sun – in order to keep the

temperature up. Regardless of the season, the interior of your pile should be warm.

As the material decomposes it creates heat, so a warm interior indicates that it is

decomposing correctly.

4. Your pile should contain both “brown” and “green” components with about 2/3

being “brown”. Brown components are rich in carbon and include such things as

dried leaves, pine needles, spoiled hay, straw and paper. Green ingredients are rich

in nitrogen and include grass clippings, yard waste, coffee grounds, fruit and

vegetable kitchen waste.

5. Start with a 5 inch layer of brown components and then add a 2 inch layer of

green, and so on.

6. Don’t add meat waste to your pile because it will attract raccoons and other pests.

7. Don’t add chemically treated grass, cat litter, dog feces etc.

8. Putting weeds in the center of the pile is good because the heat will kill the seeds.

What a great way to get rid of all those weeds!

So go ahead and create your own compost pile. A properly managed compost pile

will start yielding good compost in between 4 and 10 months. Your neighbors will be

“green” with envy.

  Provided to you Exclusively
 
 Wayne Thompson, CMB
Professional Mortgage Planning
Office: 859-514-5472
Cell: 859-797-0895
E-Mail: wayne@waynethompson.com
Website: www.waynethompson.com

Affiliated with Walden Mortgage  

For the week of Jul 20, 2009 — Vol. 7, Issue 29
 
Last Week in Review

INFLATION, ALL WE NEVER WANTED…! Or so the Go-Go’s song “Vacation – All I Ever Wanted” could have been re-written this week, as whispers and glimmers of future inflation as well as some positive economic news roiled the Bond market. Overall, home loan rates worsened by about .25% across the board.
Inflation at both the wholesale and consumer level came in hotter than expected via the Producer Price Index (PPI) and Consumer Price Index (CPI) reports, the latter shown in the chart below. The Consumer Price Index (CPI) rose by more than expected, and was the biggest increase in a year, mostly due to higher gasoline prices.
However, a look back over the past year shows a drop in overall CPI of 1.4%…why is this? It was a year ago that a barrel of oil was $147, and today that barrel stands at $60, up from the $30 range seen earlier this year. But even when stripping out food and energy, the most recent Core CPI rose 0.2%, higher than the 0.1% anticipated – and year-over-year, Core CPI prices were up 1.7% after rising 1.8% in the 12 months ended in May. On the wholesale side, even excluding volatile food and fuel prices, Core PPI rose quite a bit more than anticipated as well. And remember, inflation is bad for Bonds and home loan rates. If this trend continues, it could have a big impact on rates later this year.
———————–
Chart: Consumer Price Index
 
In other news, second quarter earnings season continued, including some highlights from the financial sector. Several companies reported strong earnings, including tech bellwether Intel; JP Morgan Chase, who reported a 36% jump in profits for the second quarter; and Goldman Sachs, reporting blowout earnings. Although some of the positive headlines helped Stocks, at the expense of Bonds and therefore home loan rates, overall the week’s earnings reports indicated the economic climate is still difficult.
And this difficulty was seen on the retail front – and even though Retail Sales rose slightly higher than expectations, overall department stores and restaurants still showed weak results, signaling that consumers remain hesitant to spend discretionary dollars.
BUT IF YOU’VE BEEN CONSIDERING A NEW CAR PURCHASE – TO BUY SOMETHING MORE FUEL EFFICIENT, OR JUST TO TAKE ADVANTAGE OF SOME OF THE GREAT DEALS OUT THERE – YOU’LL WANT TO READ THIS WEEK’S MORTGAGE MARKET VIEW, FOR IMPORTANT IMFORMATION ON A MONEY SAVING GOVERNMENT PROGRAM THAT’S DUE TO EXPIRE SOON.
Forecast for the Week

It’s a quiet week ahead when it comes to scheduled economic reports, but that doesn’t mean the volatility will quiet down. Keep a look out on Thursday for the Existing Home Sales Report for a read on the housing market. Last week showed a decent Housing Starts number, so it will be interesting to see if Existing Home Sales shows some good news for the Housing Market.
Also on Thursday, another Initial Jobless Claims report will be released. Last week, first time claims for unemployment benefits dropped by 47,000 to the lowest level since January. However, the reading is somewhat distorted by shifts in the timing of auto plant shutdowns. Usually plants would shut down in July, meaning last week’s unemployment claims number would usually have been higher, but the shutdown process was accelerated due to the bankruptcies of GM and Chrysler. Therefore, the seasonal adjustment makes this number look rosier than it really is.
In addition, earnings season continues with important reports from Legg Mason, Coca Cola, Dupont, Apple, Wells Fargo, Pepsi, eBay, and Xerox among others…and if these reports are good, Stocks could continue to improve, at the expense of Bonds and home loan rates.
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 rates worsened on the heels of a rally in Stocks. I’ll be watching to see if Bonds can remain above key support, which would help home loan rates stabilize. As always, I encourage you to give me a call to discuss how the current rate environment might benefit you.
Chart: Fannie Mae 4.5% Mortgage Bond (Friday Jul 17, 2009)

The Mortgage Market View…

THAT CLUNKER MAY BE WORTH MORE THAN YOU THINK…
If you have an old clunker sitting in your driveway and you’re thinking about upgrading to a new vehicle, you’ll definitely want to look into the Government’s new Consumer Assistance to Recycle and Save (CARS) Act of 2009…as you might be able to get some cash for that clunker!
The CARS Act-also knows as “Cash for Clunkers”-was passed by Congress late last month and then signed into law by President Obama. Basically, the program is designed to get older, less fuel-efficient vehicles off the road by providing buyers with a trade-in voucher when they upgrade to a new, fuel-efficient vehicle. The program offers different voucher incentives depending on the type of vehicle you trade in, as well as the gas mileage of the new vehicle you drive off in. The voucher is good on either domestic or imported vehicles, and it can be applied towards either the purchase or the lease of a new vehicle.
Trading in a Car for a New Car?
If you’re considering upgrading your car, here’s a quick look at what you can expect:
IF you trade in an older car
AND that car gets 18 mpg or less…
AND you purchase or lease a new car that gets at least 22 mpg…
You can qualify for a $3,500 voucher that is applied to the price of the new car.
 
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 July 20 – July 24DateETEconomic Report ForEstimateActualPriorImpact
Mon. July 2010:00Index of Leading Econ Ind (LEI)JunNA 1.2%Low
Wed. July 2210:30Crude Inventories7/17NA NAModerate
Thu. July 2308:30Jobless Claims (Initial)7/18NA 522KModerate
Thu. July 2310:00Existing Home SalesJunNA 4.77MModerate
Fri. July 2410:00Consumer Sentiment Index (UoM)JulNA 64.6Moderate

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.
 
 
Wayne Thompson
Walden Mortgage
3609 Walden Drive
Lexington, KY 40517
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.