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.