Market Update

QUOTE OF THE WEEK... "It is always wise to look ahead, but difficult to look further than you can see." --Winston Churchill INFO THAT HITS US WHERE WE LIVE... Keeping Sir Winston's words in mind, let's consider some prognostications coming out now about the real estate market in 2014. A national online listing site sees housing becoming a little less affordable and repeat buyers emerging as the market's dominant players. The site's chief economist explained, "repeat buyers will be able to offset the higher price of the home they buy with the higher price from the home they sell." This expert also sees mortgage rates creeping up, although he feels that should make the mortgage process easier, as lenders shift resources from refinancings to purchase loans. Freddie Mac's chief economist revealed that "single family mortgage debt outstanding increased for the first time since 2008." He further explained: "This is a positive sign, as it reflects that the pick-up in new purchase-money originations has offset loan paydowns and led to a net increase in principal outstanding." The Mortgage Bankers Association chimed in with a report that purchase loan applications were up a seasonally adjusted 1% for the week ending December 6, compared to a week earlier. BUSINESS TIP OF THE WEEK... Despite the popularity of videos and social media, e-newsletters remain very useful marketing tools. Use your Facebook page and website to get sign-ups by offering freebies containing useful information. Review of Last Week FED FEARS STALL SANTA... Anyone hoping for an end-of-the-year Santa Claus rally to begin early had those hopes dashed last week, as Wall Street investors sent stock prices down, fearing the Fed will start tapering its bond buying program at this week's FOMC meeting. The Dow and S&P 500 sailed south for the second week in a row, and this time they were joined by the tech-heavy Nasdaq. There wasn't a lot of economic news, so traders were free to obsess over the coming Fed meeting. Now, a growing number of investors and economists think the central bank will announce the beginning of tapering on Wednesday. In addition to sending stock prices up, the extra money the Fed has been pouring into the economy was intended to stimulate it. So tapering would be a sign our central bankers have become more confident about the recovery. Evidence to support that confidence came last week in the form of a Retail Sales Report that came in UP 0.7% for November and UP 4.7% over a year ago. This was joined by Wholesale Inventories and Business Inventories registering larger than expected build-ups. Even the monthly Federal Deficit came in lower than expected, while Core PPI wholesale prices remained within the Fed's target. The week ended with the Dow down 1.7%, to 15755; the S&P 500 down 1.6%, to 1775; and the Nasdaq down 1.5%, to 4001. Greater concerns that the Fed could announce tapering as early as this week's meeting sent bond prices skidding down. The FNMA 3.5% bond we watch ended the week down .80, to $99.24. This might have pushed mortgage rates up, but national average mortgage rates actually dipped slightlyfor the week ending December 12 in Freddie Mac's Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... Realtor.com reports that more than half of all page views of listings, nationwide, now occur through a mobile device, as opposed to a desktop computer. MANUFACTURING AND HOUSING STARTS UP, INFLATION OK, BUT WILL THE FED START TO TAPER?... Manufacturing activity is forecast to continue expanding in December by both the New York Empire and Philadelphia Fed Indexes. We'll finally have Housing Starts for September and October, as well as for November, with steady growth expected. The Consumer Price Index (CPI) is predicted to show inflation well within the Fed's target range. The big focus will be on the FOMC Meeting on Wednesday. With recent improvements in some economic data, the Fed could begin tapering its $85 billion dollar a month bond buying program.

6 questions to ask before hiring a contractor - PLUS 7 tips for taking care of your tools

When you're ready to remodel, make sure you're hiring the best contractor. Here are six key questions to ask. 1. Can you itemize your bid? Some contractors like to give one total price for the project. Always ask for an itemized bid with costs for all elements of the job-demolition, framing, plumbing, electrical, materials, and such. This helps with comparing bids and lets you see options for cutting costs. If you decide not to do part of the job, it shows how much you should be credited for eliminating that work. 2. Is your bid a fixed price or an estimate? With an estimate, the final bill can wind up higher, so always ask for a fixed price bid. If the contractor hesitates because there are too many unknowns, try to get the answers. Open a wall to check the structure, or ask for more detailed design plans. If unknowns persist, ask the contractor for project specs, describing what will be done. If more work is needed later, get a mini-bid for the new items. 3. How long have you been in business here? You should hire someone who's been working in your town 5 to 10 years. They'll have a local reputation to uphold, plus a good network of subcontractors and suppliers. Avoid hiring contractors from out of the area. 4. Can you include some of your earliest clients as references? This verifies that the contractor has been in business for a while and tells you how the work stands up. 5. Who are your suppliers? Get their names and call them. Ask what customers think of the contractor, how promptly they pay their bills, and if you should hire them. 6. Can I meet the job foreman? Some contractors aren't there running the job every day. Find out who that will be and ask to meet them, ideally at a job site. This is the most important person on your team. 7 KEY TACTICS FOR MAINTAINING YOUR TOOLS Here's how to keep the tools you use in tip-top shape. 1. Clean and check hand tools. These are your screwdrivers, wrenches, hammers, pliers, levels, wire cutters, and such. After each use, wipe them with a rag and put them away. Periodically check handles for cracks and metal parts for corrosion. Repair or replace damaged tools. 2. Store tools correctly. Never leave hand tools out. They get damaged by the elements outside and pose a danger to your family indoors. Store in a tool box, tool bag, storage container, shelving unit, or on a pegboard. Hang lawn and garden tools, such as rakes and shovels, to protect them from ground moisture. 3. Keep power tools clean. Wipe them clean with a rag at the end of every job. Clean exhausts and intakes with lightly oiled cotton swabs or a rag wrapped around a thin tool. A can of compressed air is the best way to remove dirt and dust from vents and crevices. Regularly replace filters. 4. Store power tools properly. Protect them from dust, moisture, and other damage by storing in original cases, drawers, or tool chests. Keep instruction manuals in a drawer or cabinet in your workspace. 5. Inspect power tools for damage. Every so often, check for signs of wear or damage, paying special attention to power cords. If you see frayed insulation or exposed wires, have a professional repair or replace the cord immediately. Check for bent or loose prongs on plugs. Damaged power cords can give you a shock or start a fire. 6. Oil moving parts. This makes the tool run smoothly and helps prevent rust. Common machine oil works, but consult your owner's manual for manufacturer recommendations. 7. Look after batteries. Cordless tools are great, but pay attention to their rechargeable batteries. Follow manufacturer recommendations for charging and discharging. Clean contacts with cotton swabs and alcohol. Store batteries you won't be using in a clean, dry place away from heat. When you're ready for a move, we can answer any questions about financing. We can also help with refinancing your existing home or funding home improvements. Please call or email us any time. We're always here for you... Have a great day! P.S.: As the housing market recovers, mortgage rates remain at historically attractive levels, but they can be volatile. When buying or refinancing, it's smart to start the process early. Please call or email us to explore the appealing options available now.

Weekly Newsletter

Please click here to read this weeks updates to the market! Click here

Weekly update

Last Week in Review: Key housing and jobs data was released. Plus a surprising read on Gross Domestic Product, the broadest measure of economic activity. Forecast for the Week: This week's economic calendar is light, featuring readings on retail sales, jobless claims and wholesale inflation. View: See the important time tip that can make all the difference any time of year. "Tomorrow is often the busiest day of the week." Spanish Proverb. And it sure seemed that way with last week's busy economic calendar, as Friday's Jobs Report capped off a week filled with data. Here are the highlights. The highly anticipated November Jobs Report revealed that employers created 203,000 jobs last month, above the 188,000 expected. The Unemployment Rate fell to a 5-year low of 7 percent while the Labor Force Participation Rate (LFPR) managed to tick up to 63.0 percent, though it is still at lows not seen since the late 1970s. The LFPR is a measure of how many people are looking for work. All in all this was a good report, but the labor market is not out of the woods yet. Also of significance, the second reading of third quarter Gross Domestic Product (GDP) rose by 3.6 percent, above expectations and the best level in a year and a half. But a closer look shows the gains coming from a large buildup in inventories. This is important to note because a buildup in inventories could cause goods to stay on the shelf and not materialize into sales, which could set the stage for a disappointing read in the fourth quarter. In housing news, research firm CoreLogic reported that home prices, including distressed sales, rose by 12.5 percent in October 2013 compared to October 2012. This marks the twentieth month of year-over-year home price gains. In addition, New Home Sales for September fell but October's New Home Sales surged 26 percent, coming in above expectations. Both reports were delayed due to the government shutdown. What does this mean for home loan rates? Remember that the Fed has been purchasing $85 billion in Bonds and Treasuries each month to stimulate the economy and housing market. The Fed has said that its decision regarding when to taper these purchases will be dependent on economic data. Whether data has been strong enough for the Fed to begin tapering these purchases after its meeting of the Federal Open Market Committee on December 17-18 remains to be seen. Either way, the timing of the Fed's decision will definitely impact home loan rates heading into 2014 and it's why economic data in the coming weeks will be important to monitor. The bottom line is that now remains a great time to consider a home purchase or refinance as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients. Forecast for the Week Economic data is light this week and doesn't kick off until Thursday. ■As usual, Thursday brings Weekly Initial Jobless Claims. Last week's claims dropped below 300,000, though this figure could have been skewed by the Thanksgiving holiday. ■Also on Thursday, Retail Sales will be delivered and will show the health of consumer spending. ■The last report this week will be the Producer Price Index on Friday, which will reveal if there are any inflation pressures at the wholesale level. 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.

Stress-Free Holidays for Busy People

What do holidays have to do with productivity? Glad you asked! Consider physical exercise for a moment: Science has long understood that you don't build muscle during the workout, muscle builds during rest–that's why working out too long or too often is counterproductive to fitness. When it comes to work, the same principle holds true: Attempting to sustain 24/7 productivity leads to fatigue, lowered immunity to illness, lack of ideas (or just plain bad ones), and time-wasting. The holidays present an opportunity to set work aside, but they can also be stressful in their own way. So here are a few ideas that can help you get more from your holiday breaks: Focus on your Top Three. Think of three things you love about the holidays, write them down, and forget everything else. Be it lighting the Hanukkah menorah, cuddling under the mistletoe, decorating your Christmas tree, listening to holiday music, or just driving around the neighborhood to see the pretty lights–your focused intention matters when it comes to enjoying experiences. Sock your smartphone. Remember the days when phones were tethered to the base unit and you couldn't check your Facebook newsfeed? Aside from risking technology addiction, turning off your phone and putting it out of reach will help refocus attention on visiting with family and friends and, believe it or not, increase the fun! Take me for a walk. Bundle up and trundle out for a walk, by yourself or with the whole group! A change in scenery can alleviate that "cabin fever" feeling you get with extra people in the house. Plus, a little exercise clears your head and fills your body with those delightful endorphins, making you feel great! Don't get SAD. Sometimes, lack of enjoyment during the holiday season stems from physiological reactions to reduced daylight during winter months. Seasonal Affective Disorder (SAD) is caused by a lack of light coming through the eyes. It is easily relieved, however, by gradually increasing your exposure to natural and full spectrum light sources. Try spending 15-30 minutes a day in sunlight, and replace overhead fluorescent light bulbs with "full spectrum" bulbs. Give a little bit. The last few years haven't been easy for many people. Donating your time or talent to make the holidays special for someone in need is one of the few gifts you can give to someone else and yourself at the same time. I hope you enjoy a wonderful holiday season ahead with your friends and family. I know that I certainly have much to be thankful for, including many wonderful colleagues, clients and friends like you.

Inside Lending Newsletter

QUOTE OF THE WEEK... "After all is said and done, more is said than done." --Aesop, Greek story teller INFO THAT HITS US WHERE WE LIVE... Plenty was being said last week about Existing Homes Sales, down 3.2% for October. The talk among some analysts was that the drop indicates a slowdown in the housing recovery. But October sales appear to have been somewhat affected by the government shutdown (remember that?), with closings delayed because the IRS couldn't verify income. Even with that, October posted the fifth highest level for any month since late 2009, when the home buyer tax credit was about to go away. In fact, October sales came in at a 5.12 million annual rate, up 6% from a year ago. The National Association of Realtors (NAR) feels a lack of inventory is holding down sales, However, the median existing home price is up 12.8% over a year ago, which should bring more sellers into the market. Rising prices also make buyers more willing to commit than when they feared values could keep dropping. Plus, the National Association of Home Builders confidence index held at 54 in November, near its highest levels in eight years, which should boost the new home supply. For the week ending November 15, mortgage applications for purchase loans jumped 6%. BUSINESS TIP OF THE WEEK..."Touch it once" is a time-tested time management strategy. Act on an item the moment you touch it, instead of going back to it again and again before actually completing it. >> Review of Last Week SWEET 16... In spite of all the talk about stock market bubbles, the Dow Jones Industrial Average closed above 16,000 for the first time ever. This Sweet 16 party was joined by the S&P 500 celebrating its record close above 1800, as it nailed its seventh straight weekly gain. Many investors maintain these increases are not a price bubble. They point to real value tied to better than expected Q3 corporate earnings, improvements in the major economies of the U.S., China, and Europe, and the understanding that although the Fed may taper its bond buying, it won't raise interest rates any time soon. Wall Street's optimistic view of our economic future was supported by Retail Sales, UP 0.4% in October, as the consumer clearly wasn't spooked by the federal government's partial shutdown. Business Inventories, UP at a faster-than-predicted 0.6% rate, showed companies seemed as confident as their customers. Yes, Existing Home Sales dipped in October and the Philly Fed showed manufacturing in that region grew less than forecast. But CPI inflation stayed under control and weekly Unemployment Claims saw their largest drop in nearly three months! The week ended with the Dow up 0.6%, to 16065; the S&P 500 up 0.4%, to 1805; and the Nasdaq up 0.1%, to 3992. Bonds were pressured after minutes from the October 30 meeting hinted the Fed could begin tapering its bond buying soon. The FNMA 3.5% bond we watch ended the week down .10, to $101.06. National average fixed mortgage rates fell in Freddie Mac's Primary Mortgage Market Survey for the week ending November 21. This was attributed to low overall inflation rates and weaker manufacturing growth. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... The NAR reported the median time on market for all homes sold in October was 54 days -- and 36% were on the market less than a month! The median time for all homes sold in October 2012 was 71 days. >> This Week’s Forecast HOME BUILDING AND PENDING SALES UP, CONSUMERS KEEP SMILING... There's a lot to learn in just three days. We get a two-month view of home building, as October's Housing Starts and Building Permits come in with September's, unreported during the government shutdown. Economists expect gains for these, as well as for October Pending Home Sales. Consumer Confidence and Michigan Consumer Sentiment are forecast up in November. The stock and bond markets are closed on Thanksgiving and close early on Black Friday. Happy Thanksgiving to you and yours!

7 Steps to Becoming a Better Blog Writer

A good blog can be an effective way to deepen customer relationships and attract new prospects who find your post while searching for a topic that interests them. SEO experts tell us a blog may also move you up in search engine results. But in our busy professional lives, maintaining a blog can seem like a tall order. Here are 7 steps you can take to make the task easier. 1. Commit to blogging. Add a blog page to your website or create a branded blogsite using resources like WordPress.com, Blogger.com, or Wix.com. These sites also offer a range of templates and options to fit your business, but you may want to hire a professional to customize them. 2. Schedule time to think and write. Schedule specific time periods to work on your blog. This frees you up to think of a topic, research it, formulate your point of view on it, and then write a post about it. Schedule at least 2–3 of these time periods a week, although daily is best. Oh, and pick a place where you like to write! 3. Keep an idea notebook. Carry this with you always. Jot down thoughts and daily life experiences. Brainstorm about yourself. Write down your 5 key areas of expertise. Come up with 10 more areas that complement those key ones. Describe your target audience by their needs and interests. What expertise of yours would they find most useful? Check out sources on the web for generating blog topics. 4. Choose a topic and outline it. Research topics on search engines and industry sites, then pick one you'd like to explore. Write a snappy keyword title, and then do an outline with 3–5 bullet points that take you from beginning to middle to end. Study blog posts you like and outline how their content flows. 5. Write the post. Flesh out your outline with more about the topic, peppered with your point of view, knowledge, and personal experiences. Focus on what you want your audience to take away from the post. Make sure it answers the promise in the title. Use the content to feature your expertise. 6. Add engaging hooks. Readers can get hooked on a variety of elements you put into a post. Experts say that insightful quotes, fascinating statistics, photos, drawings, and charts can increase opens and engagement by 65%. Look for opportunities to add videos, podcast links, infographics and to offer case studies, fact sheets, or white papers you have. These all add value and keep readers involved. 7. Publish and promote it. Publish your post to your blog; then be sure to link to it on all the communication channels you use. Facebook, LinkedIn, Twitter, YouTube, Pinterest, Google+, podcasts, emails, and videos are all great ways to promote your latest blog post. Then Google yourself to see how it's all working. With blogs, the important thing is to keep posting. People are always searching for fresh content they can share. If you have something of value to say and something useful to offer, folks will find you. Use your blog to inform, educate, and inspire people and you will sell them too. Here's to your continued success, as you keep putting together your best year ever.... Enjoy a great month!

Inside Lending Newsletter - Market Update

QUOTE OF THE WEEK... "There are two ways of spreading light: to be the candle or the mirror that reflects it." --Edith Wharton, American writer INFO THAT HITS US WHERE WE LIVE... This week we'll have to be the candle that spreads light on the housing recovery, as the September Pending Home Sales Index didn't shine too brightly. This measure of contracts signed on existing homes fell 5.6% from August to September, suggesting a dip in closings for that type of property during Q4. The September drop was put to a lower level of consumer confidence, plus higher mortgage rates and home prices, although home price gains also reassure buyers that they're making an appreciating investment. But please note. Those slightly higher mortgage rates were still near historical lows and have since receded. In addition, 2013 should be a solid year for home sales overall, with the National Association of Realtors (NAR) predicting total existing home sales 10% higher than in 2012. The NAR also expects this year's 11% to 11.5% price gain to be followed by a 5% to 6% increase for 2014. The S&P/Cash Shiller 20-City Composite index of home prices showed a 12.8% annual gain in August, its biggest since February 2006. BUSINESS TIP OF THE WEEK... You always want to hit all the points you've worked into your pitch. But if the other person starts tuning you out, change the conversation to his or her needs. It gets you closer to the sale and leaves a good impression. Review of Last Week MIXED BAG... Inspired by decent manufacturing data and corporate earnings, investors sent the Dow and S&P 500 upward for the fourth week in a row, but the tech-heavy Nasdaq dipped, ending its two week winning streak. The Fed met and although they didn't begin to taper their bond buying program, their policy statement was read as a bit hawkish, indicating tapering could start sooner. This was because they deleted the reference to "tightening financial conditions" from their September statement and did not cite any negative economic impact from the partial government shutdown. That was corroborated by Friday's ISM Manufacturing index, which was up for October. Popular opinion during the federal shutdown was that manufacturing would suffer. So much for popular opinion. September Industrial Production enjoyed the biggest monthly gain since February, hitting its highest level since March 2008. Inflation stayed under control, the wholesale Producer Price Index (PPI) down a tad and the Consumer Price Index (CPI) up just a bit for September. Unfortunately, September Retail Sales dipped a little and Pending Home Sales a lot. The week ended with the Dow up 0.3%, to 15616; the S&P 500 up 0.1%, to 1762; but the Nasdaq slid 0.5%, to 3922. The Fed policy statement wasn't as dovish as some had expected, sparking a wave of bond selling. The FNMA 3.5% bond we watch ended the week down .21, at $102.01. For the week ending October 31, national average mortgage rates dropped again in Freddie Mac's Primary Mortgage Market Survey. Their chief economist noted that coming out of the Fed meeting, "there was no policy change, which should help sustain low mortgage rates in the near future." Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... The Fed's statements are called hawkish when they favor increasing interest rates and tapering bond buying, dovish when they favor maintaining low interest rates and current bond buying levels. This Week’s Forecast GDP AND JOB GROWTH TEPID, BUT INFLATION IN CHECK... The first, or "Advanced" estimate of GDP for Q3 is expected to show the economy growing even more slowly, dipping down below 2%. Friday we get the October Employment Report and job growth won't be very hot either, just 100,000 new Nonfarm Payrolls forecast for the month and the Unemployment Rate back up to 7.3%. At least inflation is predicted to stay under control, Core PCE Prices remaining within Fed guidelines.

2 types of energy tax credits to take by year end - PLUS 6 things to cover in your Fall cleanup

In February, the federal tax credit was reinstated for energy efficient home improvements made in 2012 and 2013. A tax credit is a direct reduction of taxes due. It can be better than a tax deduction that only reduces taxable income. The energy tax credit now has a $500 lifetime cap for qualified energy efficient upgrades to your existing principal residence, but the deadline is December 31. New homes and rentals do not qualify. You'll find all the details on: http://www.energystar.gov/taxcredits. The highlights: 1. Tax credits for 10% of the cost. You may claim a tax credit of 10% of the cost of certain energy-saving upgrades. These include qualified insulation, windows, roofs, and doors, with a $200 limit for all doors. 2. Tax credits for the full cost. You can claim tax credits for the full cost of specified types of "qualified residential property," but only up to certain caps. For example: advanced main air circulating fan – $50 natural gas, propane, or oil furnace or hot water boiler with annual fuel utilization rate of 95 or greater – $150 electric heat pump water heater with minimum 2.0 energy factor – $300 electric heat pump or central air conditioner that achieves the highest efficiency tier of the Consortium for Energy Efficiency – $300 each natural gas, propane, or oil water heater that has either a minimum energy factor of 0.82 or a minimum thermal efficiency of 90% – $300 biomass stove that uses "plant-derived fuel available on a renewable or recurring basis" (see site for details) – $300 You'll need to file IRS Form 5695 with your tax return and have the Manufacturer's Certification Statement that the item meets the efficiency requirements on the energystar.gov website. That site also lists a few alternative energy items (such as solar panels) that qualify for tax credits after December 31. Please consult a tax professional before making any purchases you think will qualify for a tax credit. 6 KEY FALL CLEANUP AREAS 1. Lawn. Mow until the first frost, keeping the length above 2.5". Rake leaves that smother and kill grass. Rake up excess grass clippings using an iron rake or thatch rake. Check with a garden pro whether to aerate and fertilize. 2. Garden. Ask a local expert which plants to fertilize before the first frost. For example, you won't want to fertilize roses because it discourages winter growth and makes them vulnerable to extreme weather. 3. New plantings. For a nice spring bloom, plant bulbs such as tulips, daffodils, and hyacinths. Day lilies and dahlias are also good for fall planting. To fill bare spots in your lawn, plant cool-season grasses such as perennial rye, bluegrass, and fescue. 4. Deck or patio. Sweep off leaves and debris. Cover patio furniture or remove and store if you have space. Wipe each piece with damp cloths and dry with towels. Remove or cover your grill and store it if possible. Remove mildew on decks with a solution of 3 quarts of water to 1 quart oxygen bleach and 1/4 cup of ammonia-free liquid dishwasher detergent. Put this in a garden sprayer and apply liberally. Let it set for 10 to 15 minutes. 5. Gutters. After most of the leaves have fallen, clean out and repair your gutters. Clogged and leaky gutters can flood the basement and cause other water damage to your home when snow melts. 6. Hoses and Mowers. Disconnect garden hoses and store inside. Turn off water supply at shutoff valve inside the house and open the outdoor spigot to drain it. Drain the gas from your lawn mower and sharpen or replace blades on garden tools. If you're thinking about buying a home in today's market, here's some great advice from CNN Money. Click here to view. When you're ready, we can answer any questions about financing. We can also help with refinancing your existing home or funding home improvements. Please call or email us any time. We're always here for you.... Have a great day! P.S.: In the recovering housing market, mortgage rates are volatile, but remain at historically attractive levels. When buying or refinancing, it's smart to start the process early. Please call or email us to explore the appealing options available now.

Social Media Jargon: 15 Terms You Should Know

New words, phrases, and acronyms are constantly popping up across social networks. You can't afford to ignore social media, so here are 15 terms you might find useful to know. 1. Circles. These are the community groups users put together on Google+. 2. Connections. This is the online version of your business network, made up of the people you decide to "connect" with on LinkedIn. When you're a "connection" in someone's LinkedIn network, you can view their "full," profile instead of their "limited," one and send them private messages and updates. 3. Geotagging. This is adding a geographic ID to let others know your location. Found on smart phone apps for social media sites. 4. Hashtag. A hashtag begins with a number sign followed by a word or string of words with no spaces. On Twitter, and now Facebook, this creates a hyperlink that when clicked on, performs a search for that word or phrase on the social network. 5. Meme. Rhymes with "seem." Short for "mimicked theme." A meme is an idea, style, or action that spreads virally, often as mimicry, over the Internet. It may be an image, video, hashtag, or hyperlink. 6. Pinning. This is how you show you like content on Pinterest. Once content is pinned, it appears on your own Pinboard. 7. RSS. Often called Really Simple Syndication, but actually stands for Rich Site Summary. A web standard for content delivery for everything from blog posts and news stories to images and videos. Lets you stay current with information sources without having to browse all their content. 8. Social Graph. A visual that shows all the connections an individual has within a social network. 9. Social Media Optimization (SMO). SMO is the process of checking that all the content you've created or curated is available to share across your key social media and networking sites. Types of media to check include RSS feeds, social news and bookmarking sites, as well as the social networks, video, and blogging sites you use. 10. Tag. A keyword or phrase assigned to a piece of information, such as a blog, bookmark, or digital image. It helps describe the item or topic and enables it to be found again through a browse or search. 11. Tumblr. Another blogging website and social platform. Lets users share content and connect based on their blog entries, as well as "follow" other users' blogs. 12. Tweets, Retweets. Tweets are posts on Twitter, limited to 140 characters. When a user tweets another's tweet, it's called a retweet. Credit still goes to the original user and the tweet appears as RT in the timelines of all the retweeter's followers. 13. Twebinar. This is a live podcast or audio broadcast that uses Twitter as the backchannel for discussion. 14. Viral. This describes anything that is rapidly shared across the Internet through social media, email, and video sharing websites. 15. Widget. This is a mini application that performs a specific function connecting a user to the Internet. Social media's influence now reaches way beyond teenagers glued to their smart phones. Business professionals don't need to spend tons of time on every social network, but it makes sense to stay up to speed. Here's to your continued success, as you keep putting together your best year ever.... Enjoy a great month!

Inside Lending Newsletter - Market Update

Market Update QUOTE OF THE WEEK... "Do not even listen, only wait." --Franz Kafka, novelist and short story writer INFO THAT HITS US WHERE WE LIVE... The early 20th century author of nightmarish tales certainly had the best advice for getting through the scares coming out of Washington last week. Much of the housing "news" consisted of fearful warnings about what might happen to the real estate recovery if the debt limit weren't raised or the partial government shutdown continued. These nightmares proved not worth listening to, as an agreement came, although we had to wait until the very last minute. We'll still have to wait for the reports on September Housing Starts and Building Permits, delayed by the government shutdown. Real housing news, when it appeared, wasn't so bad. The day things went back to normal, Fannie Mae's monthly outlook said the shutdown and debt ceiling debates seem to have had a "minimal effect" on housing. They pointed out rising home prices may actually help cushion any negative economic impacts by raising household net worth. People are clearly still buying, as Ellie Mae reported that purchase mortgages made up 58% of the closed loans in September. Here's a great link to pass on to prospects: To view, click here. BUSINESS TIP OF THE WEEK... To make the day more productive, prioritize your tasks. Ask yourself first thing: "What single accomplishment will let me sleep better tonight?" Review of Last Week THE CAN IS KICKED... A half hour into the day the Treasury said it would hit its borrowing limit, the President signed a bill approved by both houses of Congress that raises the debt ceiling through February 7 and funds the government through January 15. Nothing was resolved beyond those dates, so this is what's known in economic parlance as "kicking the can down the road." Nonetheless, stocks ended the week solidly ahead, with the S&P 500 posting its best weekly gain since mid-July. Were investors celebrating the reopening of some non-essential government functions and the fact that Treasury wouldn't default on the debt? Not exactly. Some observers felt the stock market advance came on the assumption that the Fed would continue its $85 billion a month of bond purchases to keep interest rates low and stimulate the economy. That's because the future remains uncertain: the budget standoff wasn't resolved, it was merely postponed. In any case, the Fed would find it difficult to start tapering bond buying at this month's meeting, since many of the reports it uses to monitor the economy didn't come out during the shutdown. We did have weekly Initial Unemployment Claims dipping to 358,000. The week ended with the Dow up 1.1%, to 15400; the S&P 500 up 2.4%, to 1745; and the Nasdaq up 3.2%, to 3914. Once the possibility of default evaporated, investors flocked to the safe haven of bonds, made even more attractive by the political shenanigans. The FNMA 3.5% bond we watch ended the week up .97, at $102.00. For the week ending October 17, Freddie Mac's Primary Mortgage Market Survey reported national average mortgage rates edging higher as we approached the debt limit deadline. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... The Wall Street Journal reports that with today's home prices and mortgage rates, homes are more affordable now than at any time between 1989 and late 2008. This Week’s Forecast EXISTING HOMES SALES SLOW, NEW HOMES SALES GROW, SEPTEMBER ADDS JOBS... Analysts predict Existing Home Sales will slow a bit for September, but still stay well above the 5 million unit annual rate. The New Home Sales report for that month may be delayed but is forecast up a tad. The September Employment Report, delayed since October 4, is expected on Tuesday to show jobs inching up, though still below 200,000 added payrolls for the month. This should not be enough to push the Unemployment Rate below 7.3%.

Important FHA Changes

FHA has made changes to how Collections, Charge Offs, Judgments and Disputed Accounts are handled. These changes are effective as of October 15th, 2013. Please see below a summary of the FHA Mortgagee letters 2013-24 and 2013-25 and if you have any questions please contact me. EFFECTIVE DATE • These new rules are applicable for FHA case numbers issued on and after October 15, 2013 COLLECTIONS AND/OR CHARGE OFF ACCOUNTS • Medical collections and/or charge offs are excluded from this guidance. • A letter of explanation from the borrower(s) is: - Not required for loans receiving an approved/eligible from FHA Total Scorecard (DU). - Is required for all manually underwritten loans. In addition to the letter of explanation, the borrower(s) must provide supporting documentation that provides the DE underwriter with evidence that the collection account was not the result of the borrower’s disregard for financial obligation and/or inability to manage debt. • Payment plan - Must be considered if the aggregate balance of all outstanding collections is equal to or greater than $2000. - Considered for both manual underwrites and loans receiving a FHA Total Scorecard (DU) A/E decision. o Medical collections are EXCLUDED from this aggregate. o Unless excluded by State law, the collection accounts of a non-purchasing spouse in a community property State are INCLUDED in this aggregate. - One of the following actions MUST be taken if the aggregate from all borrowers is $2000 or higher. (Note: If borrower A total is $1500 and borrower B total is $600 the sum is over $2000 and therefore the guidance applies.) o Payment in full at or prior to closing (with the source of funds properly verified) o If a payment plan has been made with creditor, include the agreed upon amount in the DTI. o If a payment plan has not been made, 5% of the balance must be included in DTI. JUDGMENTS • Applies to all loans, whether approved by Total Scorecard (DU) or manually underwritten. • All judgments (including medical) must be paid in full at or prior to closing. - An exception may be given if the borrower has entered into an agreement with the creditor. Full documentation of the payment agreement required AND a minimum of 3 months of scheduled payments have been made. Borrowers may NOT prepay the scheduled payments in order to satisfy the 3 month requirement. • Payments must be included in the DTI. • Unless exempt by State law, the judgments of a non-purchasing spouse, in a community property State, included in this guidance. DISPUTED ACCOUNTS - DEROGATORY INFORMATION ON THE REPORT • This category is used to determine if a manual downgrade to a loan is required, if the loan is approved by Total Scorecard (DU) and there are derogatory disputed items on the borrower’s credit report. • Derogatory disputed information is defined as: - Disputed collection accounts - OR - Disputed charge off accounts - OR - Disputed accounts with late payments in the last 24 months • Excluded from the calculation are: - Disputed medical accounts. - Accounts that are the result of identity theft; credit card theft and/or unauthorized use. However, there must be appropriate documentation, such as a police report, to substantiate the theft and/or unauthorized use claim. If proper documentation cannot be obtained, then the accounts are included in the calculation. • Cumulative outstanding balances from all borrowers are $1,000 or higher the file must be downgraded to a “Refer”. (Note: If borrower A total is $500 and borrower B total is $600 the sum is over $1000 and therefore the guidance applies.) - The DE underwriter will then consider this derogatory disputed information in the credit analysis as a manual underwrite. - If the disputed information is isolated and the overall credit profile of the borrower is acceptable, the DE underwriter may leave the file with an open dispute. - If the disputed information is not isolated and/or the overall credit profile of the borrower is not acceptable, the DE underwrite may require that the dispute be satisfactorily resolved before the loan can be closed. • Cumulative outstanding balances from all borrowers are $999 or less, a downgrade is NOT required. DISPUTED ACCOUNTS - NON DEROGATORY INFORMATION ON THE REPORT • Non-Derogatory disputed information is defined as: - Disputed accounts with zero balance - Disputed accounts that are current and paid as agreed - Disputed accounts with late payments aged 24 months or longer • Non-derogatory disputed accounts do NOT require a manual downgrade. • The DE underwriter IS required to consider the disputed accounts and the potential impact to the borrower’s ability to repay the loan, including the impact to the DTI.

6 good reasons now is a very good time to buy a home — PLUS 8 ways to keep teens safe online

If you've been pondering a home purchase, there are some good reasons why now might be a great time to proceed. 1. Home prices have turned the corner. Home price trends vary by market; however, nationally, on average, home prices are rebounding. Although no one can predict the future, homes prices appear to be heading up. 2. Homes are very affordable. Homes are still very affordable relative to household incomes. This means you can buy more house for the money now, than you could in less affordable times. 3. Mortgage rates are near historical lows. Mortgage rates inched up recently, but they're still near historical lows. 4. Buying remains cheaper than renting. A 2012 study found buying a home is 44% cheaper than renting in the 100 largest metros. Even with this year's mortgage rates and home prices, there is still a significant cost advantage to buying versus renting. 5. Fewer house flippers to compete with. As home prices recover, house flippers leave the market. These are investors looking to buy a house at a rock bottom price and then quickly sell, or flip, it. They're tough to compete with because they often offer sellers cash deals. 6. More inventory to choose from. Fewer house flippers can mean there's more inventory to choose from and less pressure to close a deal because of other pending offers. Again, the situation varies from market to market, but you may find there are more homes to see and less pressure to buy in the neighborhoods where you're looking. 8 TIPS TO PROTECT TEENS ONLINE The Internet is a great place for information and communication, but it's also a source of worry for parents with teens. Dangers from predators lurk online. Plus, teens often don't realize that the comments, photos, and videos they post can later create problems. Here are some steps to take: 1. Have a family "tech talk." Tell your kids about online dangers, including cyberbullying, overexposure on social networks, and inappropriate content. Voice your concerns and establish some rules. The basic one, "If you wouldn't say it, do it, or watch it with me in the room, it's not okay." 2. Activate parental controls. Most computers and mobile devices come with parental control settings, plus there are apps you can download and parental control settings on sites like Netflix, YouTube, and iTunes. 3. Friend your kids on Facebook, follow them on Twitter. Let them know you're seeing their posts. Make sure only their friends can see what they've put on Facebook. Remind them that tweets live in cyberspace forever. Relate some of the horror stories that have happened to kids on social media. 4. No sleeping with phones, tablets, or laptops. At night all portable devices belong plugged into a power strip or charging station in a public place, such as the kitchen. 5. Keep desktop computers out in public. Never install a desktop in a child's bedroom. Keep the monitor in plain sight in the family room, living room, den or other well-trafficked part of the house. 6. Know all their passwords. Get your kid's passwords for email, social media accounts, and all other sites they visit. If they balk, explain that when you let them use this technology, they waive any expectation of privacy. This is no different from companies who can monitor all employee activities on the technology they provide. 7. Monitor activities. Check your teen's devices regularly. Monitor social posts, browsing history, emails, and texting. This seems obvious, but many parents don't keep up with what their kids do online, with disastrous results. 8. Be a role model. If you want your kids to use technology wisely, do so yourself. Curtail your own smartphone use. No cell phones or tablets at the dinner table. Institute a weekend family day when all electronic devices are left off. Show kids they can survive just fine without technology. When you're ready to take advantage of today's favorable housing market, we're ready to answer any questions about financing. We can also help with refinancing your existing home or funding home improvements. Please call or email us any time. We're always here for you.... Have a great day! P.S.: In the current recovering housing market, mortgage rates are volatile, but remain at historically attractive levels. If you're thinking about buying or refinancing, it's smart to start the process early. Please call or email us to explore the appealing options available now.

Inside lending newsletter - market update

QUOTE OF THE WEEK... "Life is easy to chronicle, but bewildering to practice." --E.M. Forster, British writer INFO THAT HITS US WHERE WE LIVE... What's easy to chronicle is the continuing gain in home prices. One real estate research firm's index of home prices was up 12.4% year-over-year in August. This index includes distressed sales, which rebounded more, having started at lower levels. But extracting those sales from the measure still puts prices up 11.2% for the year. A second real estate data firm reported national home prices up 10.9% annually in September. An economist from one of the firms predicts, "moderate gains in home prices over the balance of this year." What's bewildering is the federal government shutdown. It hasn't hurt the housing market yet, as mortgage lenders are still taking applications, locking rates, processing, and closing. But home sales could suffer if the shutdown drags on. Bloomberg.com reports that mortgage applications could be held up because lenders won't be able to verify Social Security numbers and access IRS tax transcripts, now common underwriting procedures. They also said the shutdown may delay mortgage-related activities at the Federal Housing Administration (FHA) and the Department of Agriculture. BUSINESS TIP OF THE WEEK... Get to work an hour early. By starting when fewer people are around, you'll avoid distractions and be more efficient. You might even pick up an extra hour for yourself at the end of the day. Review of Last Week SHUTDOWN SENSITIVE... The federal government shut down last Tuesday after politicians were unable to agree on a budget by midnight Monday. This left investors sensitive to the melodrama coming out of Washington, sending stocks up and down. For the week, the Dow and the S&P 500 ended lower, but the Nasdaq posted its fifth straight weekly gain. Things could go on a bit longer, as the budget is being tied to raising the debt ceiling. If that doesn't happen, October 17 is the likely day of a default. Meanwhile, what economic data we got was mixed. The Chicago PMI and the ISM Index showed manufacturing growing a bit stronger than expected. But ISM Services missed its estimate, though still showed expansion. The government shutdown denied us the September Employment Report, but we did get some jobs data. The ADP employment index had a gain of 166,000 private payrolls, which economists say suggests a slight slowing in job growth. Weekly unemployment claims were up by 1,000, but stayed below recession and pre-recession levels and the four-week average fell to 305,000, its lowest level in more than six years. The week ended with the Dow down 1.2%, to 15073; the S&P 500 down 0.1%, to 1691; but the Nasdaq was up 0.7%, to 3808. The government shutdown had mixed impact on bonds, some issues booking modest losses, others posting small gains. The FNMA 3.5% bond we watch ended the week up .01, at $101.25. National average mortgage rates dipped for the third straight week, to their lowest level in more than three months, in Freddie Mac's Primary Mortgage Market Survey for the week ending October 3. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... A credit bureau reported originations for home purchase loans were up about 30% in the second quarter of this year, indicating a strengthening housing market. >> This Week’s Forecast WHAT THE FED SAID BEFORE LAST MONTH'S SURPRISE... Beyond the Washington distractions, the week's big focus should be Wednesday's release of the FOMC Minutes from the Fed's September 18 meeting. That's when the central bank surprised everyone by announcing they would NOT begin tapering the bond buying they've been doing to support the economy. They simply didn't feel the recovery was strong enough to stop and these Minutes may add some enlightening detail to that decision. This week's economic data should include Retail Sales, predicted to be off for September. Michigan Consumer Sentiment, which took a hit last month, is forecast to be down a bit more in October. However, the Producer Price Index (PPI) is expected to show wholesale price inflation still under control.

Inside Lending Newsletter - Market Update

QUOTE OF THE WEEK... "What is harder than rock, or softer than water? Yet soft water hollows out hard rock. Persevere." --Ovid, Roman poet INFO THAT HITS US WHERE WE LIVE... The Latin bard offers good advice in the wake of last Thursday's Pending Home Sales, down 1.6% for August. Observers said rising interest rates were partially to blame for the dip in this measure of contracts signed but not yet closed on existing homes. But national average mortgage rates have dropped the last two weeks with the Fed's announcement it would continue buying mortgage bonds, which should boost bond prices and keep rates low. Also helping us persevere is the fact Pending Home Sales are still up 5.8% for the year. Further encouragement came from single-family New Home Sales, up 7.9% in August and 12.6% year-over-year. They're now at a 421,000 annual rate, not where they need to be, but rebounding strongly. There were also signs of continued success for home prices. The S&P/Case-Shiller 20-city home price index was up 0.62% in July, its 18th consecutive monthly gain, with all 20 metros ahead. Its 12.39% annual gain was its biggest since early 2006. The FHFA price index of homes financed with conforming loans was up 1% in July, also gaining 18 months in a row, and up 8.8% annually. BUSINESS TIP OF THE WEEK... Understand your customers. When you know their wants and needs top to bottom, you can focus on giving them exactly what they want in a way no one else can. Review of last week: WATCHING THE BUDGET... All week, the budget battle in Washington loomed large over Wall Street. The lack of progress, with the deadline for an agreement just days away, kept investors cautious, sending the Dow and the S&P 500 indexes down for the first time in four weeks, although the tech-heavy Nasdaq showed a miniscule gain. The Senate did pass a bill to avoid government shutdown, but as of Friday, it still needed House approval. The U.S. will also hit its borrowing limit on October 17 unless the debt ceiling is raised. With all this going on, economic data held little sway. That data, as usual, was mixed. Durable Goods Orders were up 0.1% for August, following their drop in July. New Home Sales were up in August but Pending Home Sales were off. The Commerce Department left Q2 GDP, Third Estimate, unchanged, at an underwhelming 2.5% annual growth rate. The Fed's favorite inflation measure, the Core PCE Price index, was up 0.2% in August and well within the Fed's target range, up just 1.2% for the year. But Michigan Consumer Sentiment for September fell to its lowest final reading in five months. The week ended with the Dow down 1.2%, to 15258; the S&P 500 down 1.1%, to 1692; but the Nasdaq was up 0.2%, to 3782. The ongoing Washington budget wrangling drove many investors to the safe haven of bonds and prices continued to rise. The FNMA 3.5% bond we watch ended the week up 1.03, to $101.24. National average mortgage rates fell again in Freddie Mac's Primary Mortgage Market Survey for the week ending September 26. Their chief economist commented, "These low rates should somewhat offset the house price gains... and keep housing affordability elevated." Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... A recent survey by a consumer financial services company reported that the majority of Americans, 55%, are confident that home prices will increase over the next 12 months. This Week’s Forecast MANUFACTURING, JOBS GROPE FORWARD... The continuing story of an economy that's growing but oh so slowly should continue to be told this week. We'll see two key reads on manufacturing in September, the national ISM Index and the Chicago PMI for the Midwest. Both are forecast just over 50, indicating expansion. The ISM Services index is also expected to come in with a growth number, although slightly below August's. The first Friday of the month will feature, as always, the prior month's Employment Report. September Nonfarm Payrolls are predicted to be up a little, although well under 200,000 per month. This should not budge the Unemployment Rate, still above the Fed's 6.5% target.

5 Engaging Alternatives to the Elevator Pitch

With more opportunities today to get your message out, sales experts say it's time to re-think the time honored "30-second elevator pitch." In the many faceted world of digital communications, trying to engage a prospect in the 65 words you can say in half a minute seems downright verbose. The different ways available to instantly connect with one another require us to be brief and creative when pitching our idea, product, service or company. It's important to remember that you're not trying to make a sale. You just want to offer a proposition so compelling that it starts a conversation. Here are five ways to go. 1. A one-word pitch. You want to break through in a world of short attention spans? Come up with the one word that defines your brand. "Search?" That's Google. "Priceless?" MasterCard. President Barack Obama got elected in 2008 by equating himself with the one word, "hope." The one-word approach takes discipline and requires you to be clear about what it is you provide your clients. 2. A question pitch. A question can create a very powerful pitch. Giving equal time to the other political party, we'll reference President Ronald Reagan's 1980 campaign. He connected with voters struggling with a poor economy by asking the simple question: "Are you better off now than you were four years ago?" Pitching with a question can be way more powerful than pitching with a statement. Just make sure the facts are on your side. 3. A Twitter pitch. The late Steve Jobs was a master at this. His Apple product pitches neatly fit within 140 characters, long before Twitter exploded on the scene. In October 2001, Jobs introduced the iPod with the line, "1,000 songs in your pocket." A few years later came the MacBook Air, "the world's thinnest notebook." These Twitter pitches aren't a substitute for a whole presentation, but they can be a very powerful way to get people's attention and have them start asking questions. 4. A subject line pitch. Research into which emails get opened and which do not has uncovered some key findings on what makes a good subject line. A subject line that gets people to open an email can be a great subject line to get people to listen to your story. So what did the researchers find? The best subject lines offer up either a benefit or a promise to the recipient, drive curiosity, or share very specific information. Focus on those areas to create a subject line pitch people will open up to. 5. A rhyming pitch. It may sound corny to put your message into a rhyme, but the fact is, rhymes make ideas easier for people to understand and buy into. That's why they show up in advertising slogans. Pillsbury: "Nothin' says lovin' like something from the oven." Timex watches: "It takes a licking and keeps on ticking." "See the USA in your Chevrolet." "An apple a day keeps the doctor away." Rhymes have sold plenty of products and the right one could do the same for you. Keep in mind that you're not trying to make some profound statement that will blow people away. You just want to make the most of an opportunity to motivate a person to find out more about what you could do for them. Instead of that 30-second sales pitch you would use in an elevator, get creative. Try one or more of the five alternatives here to make what you do stand out in your marketplace. Here's to your continued success, as you keep putting together your best year ever.... Enjoy a great month!

Inside Lending Newsletter - Market update

QUOTE OF THE WEEK... "Society is always taken by surprise at any new example of common sense." --Ralph Waldo Emerson, American essayist, lecturer and poet INFO THAT HITS US WHERE WE LIVE... The Fed took the markets by surprise last week when it announced it would NOT begin tapering its Treasury and mortgage bond buying. But this was just common sense. Since May, the Fed's been hinting it could start tapering bond purchases in September, which sent bond prices south and mortgage rates north. People then worried this might hurt housing, a bright spot in our slow overall recovery. So it makes perfect sense for the Fed to keep buying billions a month worth of bonds to, in their words, "maintain downward pressure on longer-term interest rates." This is all great for the real estate market, although its recovery hasn't faltered just yet. Existing Home Sales in August hit their highest level in more than six years: a 5.48 million annual rate, up 13.2% from a year ago. Builders are on the bandwagon too. Single-family Housing Starts climbed 7% in August and are up 16.9% from a year ago. Single-family Building Permits reached a five-year high, and the home builders confidence index is at its best level in nearly 8 years. So if, thanks to the Fed, mortgage rates edge back down, things should really get interesting. BUSINESS TIP OF THE WEEK... To turn visitors into customers, optimize your website. Ask some current clients to test the site and tell you if it flows well. Then make the necessary adjustments. >> Review of Last Week FED, UP... All week, investors focused on Fed news and stocks finished up. Monday, former Treasury Secretary Larry Summers withdrew from consideration as the next Fed Chairman. The markets rallied, since it was feared Summers would quickly raise interest rates. Wednesday, we had the Fed's surprise announcement it would not taper its bond buying program: "the Committee decided to await more evidence that [economic] progress will be sustained before adjusting the pace of its purchases." Stocks hit an all-time high, then fell back Friday when two Fed members left the door open for tapering at the October meeting. Meanwhile, the economy slowly moved ahead. Industrial Production and factory Capacity Utilization were up nicely in August. The Empire Manufacturing index dipped slightly for September but continued to show growth in the New York area, while the Philly Fed index of manufacturing in that region rose to its best reading in more than two years. Inflation stayed well under control, the Consumer Price Index up just 0.1% in August. Existing Home Sales, single-family Housing Starts and Building Permits, all up in August, show the real estate market continues to recover. The week ended with the Dow up 0.5%, to 15451; the S&P 500 up 1.3%, to 1710; and the Nasdaq up 1.4%, to 3775. Bonds benefited from the Fed's commitment to keep buying them at the same healthy pace, as well as from Friday's stock selloff. The FNMA 3.5% bond we watch ended the week up 1.91, to $100.21. Average fixed mortgage rates moved lower in Freddie Mac's Primary Mortgage Market Survey for the week ending September 19 and mortgage applications were up 11.2% for the week ending September 13, according to the Mortgage Bankers Association. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... The median price of an existing home sold in August was $212,100, up 14.7% from a year ago, the largest gain since October 2005.

Inside Lending Newsletter

QUOTE OF THE WEEK... "Small opportunities are often the beginning of great enterprises." --Demosthenes, Greek orator and statesman INFO THAT HITS US WHERE WE LIVE... Last week's small opportunity that could turn into a great enterprise in the housing market came from reports by a few real estate data firms. One observed that as home prices continue to increase, demand from move-up buyers does too. After gaining value on rising equity, those buyers can then come up with a substantial down payment on a new home. Another firm pointed out that thanks to the recovery in home prices, 18.5 million homeowners now have at least 20% equity. That's 40% of all homeowners who are in a prime position to sell. The same firm added that there are an additional 8.3 million homeowners who should have at least 20% equity in the next 15 months. That's assuming home prices keep appreciating at the rate they have. They very well may. A monthly real estate trends report from an online listing site said the median price of homes for sale in August was up more than 6% versus a year ago. Inventory, at 1.98 million in August, was up slightly from July, but down 2.5% from a year ago. The CEO commented, "... we are now looking at a housing market that much more closely resembles 'normal.'" Nice words, those. BUSINESS TIP OF THE WEEK... Never provide a service without delivering at least just a little bit more than the client expects. >> Review of Last Week TWO IN A ROW... Stocks last week posted their second consecutive gain, the Dow registering its best performance since January. Investors were starting to feel that this Wednesday's FOMC meeting would result in a smaller reduction in the Fed bond buying program than had originally been feared. The thinking was that the disappointing August employment report might give the Fed pause about tapering its $85 billion a month in asset purchases to boost the economy. Some feel the central bankers might make a small reduction in Treasury purchases, but maintain mortgage bond buying at the current level to help keep mortgage rates low. The week's economic data certainly did not show much evidence of a strengthening economy. August Retail Sales, up 0.2%, fell short of expectations and University of Michigan Consumer Sentiment came in way lower than forecast. It was encouraging at first to see that Initial Weekly Unemployment Claims fell to 292,000, their lowest level since April 2006. Unfortunately this wasn't a sign of a healthier job market, as a labor department official suggested the impressive drop was because of "faulty" reporting in two states that had experienced some computer glitches. The week ended with the Dow up 3.0%, to 15376; the S&P 500 up 2.0%, to 1688; and the Nasdaq up 1.7%, to 3722. Even though stocks were surging, Treasuries posted modest gains in a bond market that benefited from investors' cautious tone approaching this week's Fed meeting. The FNMA 3.5% bond we watch ended the week up .09, to $98.30. Average fixed mortgage rates remained unchanged in Freddie Mac's Primary Mortgage Market Survey for the week ending September 12. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... Fannie Mae reported that consumers polled in August anticipate home prices to go up 3.4% in the next 12 months. >> This Week’s Forecast INFLATION OK, HOUSING STILL HOLDING, BUT WILL THE FED TAPER?... The Consumer Price Index (CPI) for August is forecast to show inflation still in check. Housing Starts are expected up a little for August, and Building Permits should hold steady. Existing Home Sales are predicted to dip slightly but remain well north of the 5 million unit annual rate for August. Interesting as all this is, the real focus will be on Wednesday's FOMC meeting. We'll finally learn if the Fed will begin tapering its bond buying program. If so, we'll then want to note if that includes mortgage bonds. Any reduction of those bond purchases will negatively affect mortgage rates.

Inside Lending Newsletter

QUOTE OF THE WEEK... "If you only care enough for a result, you will almost certainly attain it." --William James, American philosopher and psychologist INFO THAT HITS US WHERE WE LIVE... We all do care a lot about keeping the housing market on its steady path of recovery and last week saw more evidence of progress in that direction. An analytics and research firm that serves the industry reported home prices throughout the country were up 12.4% year-over-year in July, the 17th month in a row of annual home price growth. Another analytical company, specializing in property values, posted home prices up 10.2% year-over-year in August. They noted that the last time they saw double-digit annual home price growth was in mid-2006. Home builders are aware of this. Private residential construction was up 0.6% in July, to its highest level since September 2008. The National Association of Realtors (NAR) forecast that existing home sales are expected to increase 10% for all of 2013, then hit 5.2 million by the end of 2014. And even with the recent rise in mortgage interest rates, the Mortgage Bankers Association reported mortgage applications up 1.3% for the week ending August 30. Economists also noted that rates now are roughly the same as they were two years ago, while housing affordability is at an all-time high. BUSINESS TIP OF THE WEEK... Overcome your personal blind spots. Push yourself to try things that are alien to you. If you're feeling comfortable, you're probably not pushing yourself hard enough. >> Review of Last Week STOCKS UP ON BOTH GOOD NEWS AND BAD... The Dow ended its four-week losing streak, as Wall Street responded positively to developments regarding Syria, as well as to good and bad economic news, led by Friday's disappointing Employment Report. Just 169,000 nonfarm payrolls were added in August, but June and July numbers were revised downward, so the net gain was only 95,000 jobs. The unemployment rate dipped to 7.3%, but this was again from a drop in the labor force participation rate to 63.2%, its lowest level in 35 years. But investors saw this all as good news, since the Fed may hold off on tapering its bond buying program. There was also good economic news that actually was good. Better than expected reports came in for Initial Weekly Unemployment Claims, which dropped to 323,000. Productivity was up nicely in Q2, and ISM Services showed strong growth in that important sector. New car sales hit an annualized pace of 16.09 million vehicles, a rate not seen since before the financial crisis. Even the Syrian situation proved less worrisome to investors, who keyed on political assurances that any strike would be strategic and not require American forces on the ground. The week ended with the Dow up 0.8%, to 14923; the S&P 500 up 1.4%, to 1655; and the Nasdaq up 2.0%, to 3660. Decent economic data pushed bond prices down before the disappointing jobs report helped Treasuries, though not all bonds. The FNMA 3.5% bond we watch ended the week down 1.01, to $98.21. Average fixed mortgage rates edged up in Freddie Mac's Primary Mortgage Market Survey for the week ending September 5. Their chief economist blamed it on "... signs of a stronger economic recovery. Real GDP was revised upwards to 2.5% growth." Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... Governments need to watch budget deficits, which are financed by government bonds. When more bonds are issued, more government revenues go to paying interest on them, instead of for productive purposes. >> This Week’s Forecast CONSUMERS SPENDING MORE AND SO ARE THE FEDS... This Friday, the important Retail Sales report for August is forecast to be up, as consumer spending keeps helping the economy. But federal government spending still exceeds monies coming in, so the Federal Budget should show a deficit for August. We also want to watch Initial Unemployment Claims, predicted to stay at their recently improved level below 350,000. The August Producer Price Index (PPI) is expected to show a very modest inflation rate for wholesale prices.

8 mistakes to avoid with your 401(k) - PLUS 12 safe grilling tips

A group of financial thought leaders was asked: what's the biggest mistake people make with their 401(k)s? Here are their answers. Mistake 1. Not saving enough. Most experts say you should save at least 10% of your gross income, starting in your 20s, in order to have enough for retirement. If you're not at this level, start by increasing your savings rate by 2%, which you'll barely notice. Then go up another 2% in 3 to 6 months. Be persistent and you'll get where you need to be. Mistake 2. Not maximizing contributions as early as possible. If you don't maximize contributions as soon as you can, you're not taking full advantage of the compounding and tax savings 401(k)s provide. Mistake 3. Missing out on your employer's maximum matching contribution. Employers often match employee contributions in steps. But you have to contribute the amount that will trigger the maximum match for each step. Failing to contribute enough to get the employer match is just leaving money on the table. Mistake 4. Keeping your own company's stock. If your company gives you stock, take it – but sell it as soon as you're allowed. Company stock is great if the company does well. But if it folds, you lose your life savings along with your job. Mistake 5. Not acting your age. Young people can be more aggressive in their investment approach; older people should be more conservative. Unfortunately, many people act the opposite. They want to protect their hard-earned money when they're young, then get aggressive trying to build funds fast as they approach retirement. But aggressive risks should be taken early when you're years away from collecting the money. If you haven't put enough away, don't risk what you have. Instead, increase your contributions, and plan to work a little longer. Mistake 6. Not paying attention. With 401(k)s, people often neglect to monitor performance, fees, and asset allocation. Look at these issues at least once a year, preferably with the help of a financial professional, whom some companies provide. Mistake 7. Second-guessing your investment choices. The opposite of not paying attention is second guessing your investment decisions every time markets go down. Manage your plan by reviewing it in a disciplined manner. Mistake 8. Tapping into 401(k) funds now. People tap into their retirement money thinking that present wants are more important than future needs. Don't do it. Your retirement savings are a priority! Always consult your financial advisor about your investments. 12 GUIDELINES FOR SAFE GRILLING Many people enjoy their outdoor grills well into the fall. We've even heard of folks in northern climes who keep their grills going all winter. But there's always a risk of fire with grills, so follow these safe grilling tips. Before Only grill outdoors. Never move a grill to a screened porch or garage, even if it's raining cats and dogs. Place grill on a flat, non-flammable surface, such as a driveway or section of lawn away from buildings and flammable items. Position grill at least 15 feet away from home, railings, and flammable items, not under eaves or branches. Clean grate with a sponge and dishwashing soap and remove all grease and rust with a wire brush. For gas grills, put a light soap and water solution on the propane tank hose and watch for bubbles, indicating a leak. If there is one, have a professional service it. During Never use gasoline, alcohol, or kerosene to light your charcoal. Once coals are lit, never add lighter fluid or other flammable liquid. Keep children and pets at least three feet away from the grill. Never leave a charcoal or gas grill unattended. When grilling, if you smell gas, immediately move away from the grill and call the fire department. After Tightly close grill lid and vents. Do not remove coals or move the grill for at least 48 hours. If you want to take advantage of today's improving housing market, we're glad to answer any questions about financing. We can also help with refinancing your existing home or funding home improvements. Please call or email us any time. We're always here for you.... Have a great day! P.S.: The housing market is recovering, but mortgage rates are volatile, though still at historically attractive rates. So if you're thinking about buying or refinancing, start the process early. Please call or email us to explore the appealing options available now.

Inside Lending Newsletter

QUOTE OF THE WEEK... "Obstacles are those frightful things you see when you take your eyes off your goal.'" --Henry Ford, American industrialist INFO THAT HITS US WHERE WE LIVE... The week ended with what some saw as an obstacle to reaching our goal of a full housing recovery. New Home Sales were reported down 13.4% in July to a 394,000 unit annual rate, well below consensus expectations. A disappointing report to be sure, but not the end of the recovery. We may have had one bad month, but we're still on an upward trend, with new home sales up 6.8% and the median new home price up 8.3% versus a year ago. Also, the recent growth of existing home inventories is drawing buyers away from new homes. Evidence of that buyer interest in existing homes came Wednesday with the news that Existing Home Sales grew 6.5% in July, at a 5.39 million annual rate. That's the strongest pace since November 2009, and sales are now up 17.2% from a year ago. The median price dipped slightly, but is still up 13.7% versus a year ago. It was great to see sales up in all regions of the country, with single family homes leading the way, although condo/coop sales also gained. The FHFA index of prices for homes financed by conforming mortgages gained 0.6% in June and is up 7.8% in the past year. BUSINESS TIP OF THE WEEK... In social media marketing, grabbing people's attention is the key to success. Say something different, show something special, teach something terrific. Or just look at your competitors' efforts and do the opposite. >> Review of Last Week SECOND-GUESSING THE FED... It was a mixed week on Wall Street, as the S&P 500 and the Nasdaq snapped their two-week losing streaks, but the Dow dropped for the third week in a row. The focus was on how soon the Fed would begin tapering its bond buying program designed to keep interest rates down. Investors fear the economy is not strong enough yet for higher rates, but Fed meeting minutes released on Wednesday indicated tapering could begin in September. Freddie Mac's chief economist observed, "Several members expressed confidence the housing recovery would be resilient in the face of higher rates." Investors were happier on Friday following comments at the Fed's conference near Jackson Hole, Wyoming. One FOMC member felt they should proceed with caution, while another said there's no reason to hurry tapering bond purchases. Friday's deep drop in New Home Sales for July was looked at by the markets as another data point to support deferring tapering for now. The jobs situation watched closely by the Fed also remains iffy. Weekly Initial Unemployment Claims increased by 13,000, to 336,000, and Continuing Claims went up by 29,000 to just a tick under 3 million. The week ended with the Dow down 0.5%, to 15011; the S&P 500 up 0.5%, to 1664; and the Nasdaq up 1.5%, to 3658. Friday's weak New Home Sales report for July boosted bonds on Friday. The FNMA 3.5% bond we watch ended the week up .09, to $99.10. Freddie Mac's Primary Mortgage Market Survey showed average fixed mortgage rates edging higher for the week ending August 22. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. The Mortgage Bankers Association purchase loan index was up 1% for the week ending August 16. DID YOU KNOW?... Residential construction employment is up 4.5% year-over-year, compared to overall employment growth of just 1.7%. This Week’s Forecast PENDING HOME SALES, GDP, MIDWEST MANUFACTURING UP, INFLATION OK... After their dip in June, Pending Home Sales are expected to recover in July. This measure of contracts signed on existing homes indicates the housing recovery should continue on course. Thursday's GDP – Second Estimate is forecast to show a slightly higher growth rate for the economy in Q2, nudging just north of 2%. The week ends with Core PCE Prices predicted to remain within the Fed's inflation guidelines. The Chicago PMI should show manufacturing in the Midwest continuing to expand at a slightly higher pace. The Week’s Economic Indicator Calendar Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

10 Ways to Get People to Click on Your Headlines

You work hard writing your blog post. Then you let everyone know about it by Tweeting and posting it on Facebook, LinkedIn, or other social networks. Unfortunately, the result is often just a few clicks. The problem most likely isn't your content, but the headline you're using to tell people about it! People are hit with a tsunami of online information and they simply don't have time to access it all, so they scan before they click. That means if you want them to click through to your content, you'd better have a headline that stands out. Here are 10 ways to make that happen: 1. Be sure your content is giving readers what they want. The first rule to writing a compelling headline is that it's about content that's compelling to your audience. Write about topics your readers are interested in, not about topics you wish they were interested in. 2. Don't try to trick people. Tons of folks might click on a provocative headline that has little or no connection to your content, but those who fall for it won't feel good about you. They'll be less likely to click on your next post, or choose to do business with you. 3. Be surprising. Look for unexpected things to say in a headline. Think of juxtaposing seemingly unrelated things: "Leadership Lessons Learned from Weeding the Garden." People like to find out how these disparate things are connected. 4. Ask a question. Make it one people might want to know the answer to: "Are you really getting a bargain with those $4 flip-flops? 5. Name drop. "How to Leverage Technology Like Lady Gaga." We all love reading about famous people, products, and companies. Work those names into your post and then use them in an attention-getting headline. 6. Negatives attract. Optimistic, positive thinking is great, but people are still pulled in by the negative. Using words in your headlines like "mistake," "worst," or "failure" will get people to click. They hope they'll feel better, either by seeing that they don't fit the negative condition, or by learning what to do to avoid it. 7. Make the reader uncomfortable. "4 Pet Food Issues You Can't Afford to Ignore." In advertising, scare tactics are as old as the hills...because they work! If your headline makes people feel a little anxious and implies you have some info to help, it will reel readers in. 8. Use numbers where you can. A number in a headline, such as the one in the above tip, tells people how much info you're offering and suggests you're serving it up in bite-sized pieces. More people click through when they know what they're getting. 9. Mix it up. If you blog often (and you should), don't stick to any one of these tactics. Keep changing them. 10. Track what you're doing. Have fun experimenting. Be serious. Be funny. Then track the clicks those different approaches get and use that information to hone your headline style to your audience. These tips should help you write headlines that drive more traffic to your blog posts. Have fun, be patient, and be sure to track what you're doing. It's easy to get lost in the overwhelming flow of online information. Strive for carefully crafted content and clear headlines spiced with celebrity names, numbers, provocative questions, and the occasional surprise. Here's to your blogging success, as you keep putting together your best year ever.... Enjoy a great month!

Inside Lending Newsletter

QUOTE OF THE WEEK... "The barriers are not erected which can say to aspiring talents and industry, 'Thus far and no farther.'" --Ludwig van Beethoven, German composer INFO THAT HITS US WHERE WE LIVE... There seem to be no barriers in sight to the housing market recovery. Friday saw Housing Starts up 5.9% in July, hitting an 896,000 unit annual rate. Those looking for signs of impeded progress were quick to point out that all the gain was due to multi-family starts, which rebounded after their steep drop in June, while single-family starts slipped 2.2% for the month. But the underlying home building trends remain upward. Single-family starts are up 15.4% over a year ago and the total number of homes under construction is up 30% versus a year ago. Experts say the upward trend in home building should continue for at least a couple of years. They believe population growth and tear downs will require starts to ultimately rise to about 1.5 million units per year, most likely by 2015. This level of building puts the number of homes increasing at the same rate as the population. Building Permits headed up 2.7% in July, with permits for single-unit homes up 17.9% over a year ago. The National Association of Home Builders reported their Builders Confidence Index at its highest level since November 2005. BUSINESS TIP OF THE WEEK... Grow your email list by offering on your website a free article, podcast, or other short piece that speaks to a question, pain, or concern of your audience. Visitors get the download by entering their names and emails. Review of Last Week SUMMER FALL... Stocks dropped, as the Dow suffered its worst week of the year. The S&P 500 didn't do much better and the tech-heavy Nasdaq only dipped less because one major stock posted a strong gain for the week. Negatives included Michigan Consumer Sentiment way off the mark, Housing Starts down for single-family homes, and two corporate giants giving downbeat guidance going forward. But it was also true that many traders were away on vacation, so volumes were low, leaving markets vulnerable to big moves. There was plenty of good economic data. Retail Sales were up 0.2% in July. With the PPI unchanged, wholesale price inflation remained under control last month, while consumer prices held too, as the CPI was up only 0.2%. Weekly Initial Unemployment Claims dropped by 15,000, to 320,000, and Continuing Claims fell by 54,000, to 2.97 million. The New York Empire and Philadelphia Fed manufacturing indexes both dipped from the prior month, but continued to signal expansion. Even Q2 Productivity beat expectations, posting a 0.9% annual rate. The week ended with the Dow down 2.2%, to 15081; the S&P 500 down 2.1%, to 1656; and the Nasdaq down 1.6%, to 3603. There was enough decent economic data, plus Fed worries, to inspire heavy bond selling. The FNMA 3.5% bond we watch ended the week down 1.31, to $99.01. Freddie Mac's Primary Mortgage Market Survey showed average fixed mortgage rates largely unchanged for the week ending August 15. Their chief economist noted, "Rates have been bouncing around on market speculation that the Fed will taper some of its monetary stimulus." Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... Economics has been defined as the study of how the forces of supply and demand allocate scarce resources. This Week’s Forecast LEADING INDICATORS AND EXISTING HOMES UP, NEW HOMES DOWN, AND THE FED SAID WHAT?... Thursday expect to see the Leading Economic Indicators (LEI) index up for July following an upbeat Existing Home Sales report on Wednesday. Unfortunately, the week will end with New Home Sales for July forecast at a slightly lower annual rate. The FOMC Minutes from the last Fed meeting will be scrutinized as usual to see if the central bank will start tapering its bond buying program in September. This could send mortgage bond prices down and edge mortgage rates up.

6 reasons you should never buy an extended warranty - PLUS 4 ways to guard your car from theft

A common consumer myth is that there's value in buying an extended warranty on major purchases, such as major electronics and appliances. But the experts disagree. They say extended warranties have too many downsides – plus, there are other kinds of purchase protection that offer adequate peace of mind. Here are 6 reasons to pass on extended warranties: 1. The manufacturer's warranty is enough. Today, almost all products come with a one-year manufacturer's warranty. The truth is, most minor failures happen during the first year, while major breakdowns are likely to occur much later in the product's life, beyond the term of an extended warranty. 2. The extended warranty may not cover your malfunction. People think extended warranties cover anything that may go wrong, but this isn't always true. Typically, extended warranties are full of exclusions buried in the fine print. If you absolutely must buy an extended warranty for your peace of mind, fully investigate all aspects of the coverage before making your decision. 3. The prices of tech products keep dropping. For example, this year's flat screen LED TVs cost less than the last generation of LCD TVs two years ago. Suppose you buy a Blu-ray DVD player for $100 with a two-year extended warranty for $30. With the likely price drop in Blu-ray players over the next two years, it's probably better to put the $30 toward purchasing a new player if anything happens. 4. Products rarely need repairs. A leading product review publication tracked a range of electronics and appliances. They found repair rates ranged from 5% to 37%, generally indicating you're not likely to need a repair. So it makes sense to save the cost of an extended warranty for those very rare repairs. 5. Warranties are expensive. With high ticket items like used cars, the cost of an extended warranty can be more than you might pay for repairs. Also, if the extended warranty overlaps the manufacturer's coverage, understand that the price of a "two-year" extended warranty is really only for one extra year of protection. 6. Some credit cards offer better protection. If you pay for a product with certain credit cards, they double the length of the manufacturer's warranty free! Check your credit cards for this very worthwhile benefit. 4 WAYS TO FOIL CAR THIEVES According to the National Highway Traffic Safety Administration (NHTSA), summer is a hot time for auto theft. And don't think you're safe if you don't drive a luxury vehicle. The National Insurance Crime Bureau (NICB) says a 1994 Honda Accord is the car most likely to be stolen, while the NHTSA names the Dodge Charger as the thieves' favorite. To protect your car, the NICB suggests four approaches: 1. Use common sense. Always remove your keys from the ignition, lock your doors, and park in a well-lit area. These are the simplest, least expensive, and most effective ways to discourage thieves. 2. Let thieves know you're protected. You want visible evidence your vehicle is secured: steering column collars, steering wheel locks, alarm system stickers, and etching windows with vehicle identification (VIN) numbers. 3. Install immobilizing devices. Starter disablers and fuse and fuel cut-offs make it impossible for thieves to bypass your ignition and hot-wire the vehicle. Some items, such as smart keys and ignition disablers, may come standard on new vehicles. 4. Buy a tracking device. These systems transmit a signal to a monitoring station or police if your vehicle is stolen. And make sure you're not buying a stolen vehicle. Before you purchase a used vehicle, enter its VIN in the NICB (https://www.nicb.org) and the NICB's VINCheck Website. This free public service can help you quickly determine whether the vehicle may have been stolen. If you're thinking about taking advantage of the improved housing market, we're glad to answer any questions about financing. We can also help with refinancing your existing home or funding home improvements. Please call or email us any time. We're always here for you.... Have a great day! P.S.: The housing market is clearly in recovery, but mortgage rates are volatile. So if you're thinking about buying or refinancing, start the process early. Please call or email us to explore the attractive options available now.

Inside Lending Newsletter

QUOTE OF THE WEEK... "For the resolute and determined there is time and opportunity." --Ralph Waldo Emerson, American essayist, lecturer, and poet
INFO THAT HITS US WHERE WE LIVE... No one has been more resolute and determined than those working in the housing market and, yes, more opportunities are arising. Last Tuesday new single-family home sales were reported up 2.1% in May, to a better than expected 476,000 annual rate and up 29% versus a year ago. There were 4,000 more units in inventory, so the months' supply edged up to 4.1, despite the faster sales pace. But that's well below the 5.7-month average of the last 20 years and near the 4-month average of the 1998-2004 housing boom. So as sales grow, builders do have room to increase inventories.

The median sales price of new homes, at $263,900, is up 10.3% versus a year ago, while the average price of $307,800 is up 9.6% for the year. And prices are up for all kinds of sales. The FHFA index of prices for homes financed with conforming mortgages is up 7.4% in the last year. The Case-Shiller index of home prices in the 20 largest metro areas is up 12.1% from a year ago. Both indexes have been up for 15 months in a row. Thursday, Pending Home Sales (contracts signed) hit their highest level in six years, up 6.7% in May and up 12.1% versus a year ago. This forward-looking indicator points to solid gains for existing home sales in the months ahead.
BUSINESS TIP OF THE WEEK... As you attempt to develop new ideas, avoid relying on what worked in the past. Instead, focus like Steve Jobs on understanding customers' unmet needs, then figure out how to meet them.

Review of Last Week

BAD NEWS BRINGS GOOD NEWS... The bad news came when the final estimate for Q1 GDP calculated economic growth at a super slow 1.8% annual rate. That was well below the prior 2.4% growth estimate, which forecasters thought would hold. But the bad news was good news to investors, who felt that evidence of a weaker economy would keep the Fed from tapering its bond buying program, which has helped boost stocks as well as the recovery. After 5 volatile days, the major stock indexes closed up for the week. Traders seeking more comfort from bad news got it Friday when the Chicago PMI showed Midwest manufacturing weaker than expected in June.

But wait! There was a slew of economic reports that surprised to the upside. May Durable Goods Orders and Personal Income, and June Consumer Confidence and Michigan Consumer Sentiment all outpaced estimates. The housing recovery, which has been stronger than the overall economic recovery, continues to build. New Home Sales, Pending Home Sales, and the Case-Shiller 20-city Index of home prices all beat expectations. Even weekly Initial Unemployment Claims dipped by 9,000, to 346,000, with Continuing Claims still comfortably under 3 million.

The week ended with the Dow up 0.7%, to 14910; the S&P 500 up 0.9%, to 1606; and the Nasdaq up 1.4%, to 3403.
The big dip in Q1 GDP helped bond prices, as Treasuries scored only their second weekly gain in two months. The FNMA 3.5% bond we watch ended the week up 1.02, at $101.14. National average mortgage rates posted their largest weekly gain in 26 years, according to Freddie Mac's Primary Mortgage Market Survey for the week ending June 27. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. But rates are still attractive. The Mortgage Bankers Association had purchase loan demand up 3% for the week, and up 16% over a year ago.

DID YOU KNOW?... The new Mortgage Credit Availability Index from the Mortgage Bankers Association and an independent information provider gauges whether mortgage credit is more or less available month to month. It rose in May.

This Week’s Forecast

MANUFACTURING AND SERVICES UP, JOBS SLOW, UNEMPLOYMENT HOLDS... Today, the June ISM Index will tell us how the manufacturing sector of the economy is faring and economists expect a reading just into expansion territory. Wednesday's ISM Services should show that sector, already expanding, up again in June. The big news will be Friday's June Employment Report. Job growth is forecast to continue at a slow pace, with 165,000 new Nonfarm Payrolls added during the month. Analysts do not expect the Unemployment Rate to drop from 7.6%.

Thursday July 4, financial markets will be closed in observance of Independence Day.

The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.