My Life as a Realtor

FED Rate Change Update

Holding Pattern…

After having lowered the FED Funds rate at seven consecutive meetings the FED has again left the rates in a holding pattern. Citing ‘uncertain’ inflationary signals in the marketplace and the FEDs desire to let the market forces continue to work they are standing pat with their current rate.

What this means is that mortgage rates will continue to be mainly influenced by the overall market. If the FED had chosen to raise the FED Funds rate, mortgage rates would have reacted to the downside, since raising the FED Funds rate is an anti-inflationary move.

Remember, Mortgage Bonds and Mortgage Rates have an inverse relationship. So, we need to focus on what moves the bonds to anticipate how rates will react. Therefore with a status-quo move by the FED we should see bonds stay in the holding pattern as well.

However, bonds will also be pushed and pulled by the broader economic market. That is why today we see them sell off because Freddie Mac reported a larger than expected loss.

We’re watching the reports and tracking the FED. We’ll let you know what information pops up that will impact rates in the long term. But for right now, if you have borrowers who think rates are going to fall in the near future our advice would be for them to lock sooner rather than later.

With changes to FHA in the new Housing Bailout Bill, and now the FED holding steady it is time for buyers to get off the fence.

Here are the quotes!

"Necessity is the mother of taking chances. "
-- Mark Twain, author

"Follow your instincts. That's where true wisdom manifests itself. "
-- Oprah Winfrey, Talk Show Host

"One person can make a difference. You don't have to be a big shot. You
don't have to have a lot of influence. You just have to have faith in
your power to change things."
-- Norman Vincent Peale, Clergyman

"A leader, once convinced a particular course of action is the right
one, must have the determination to stick with it and be undaunted when
the going gets rough. "
-- Ronald Reagan, 40th U.S. president

"No one can defeat us unless we first defeat ourselves."
-- Dwight Eisenhower, 34th President of the United States

"If you can dream it, you can do it. Always remember this whole thing
was started by a mouse."
-- Walt Disney, Animator, Film Producer

"Don't be afraid to give your best to what seemingly are small jobs.
Every time you conquer one it makes you that much stronger. If you do
the little jobs well, the big ones tend to take care of themselves. "
-- Dale Carnegie, Author

"The future belongs to those who see possibilities before they become
obvious. "
-- John Sculley, Former CEO of Apple

"Winning isn't everything. Wanting to win is."
-- Catfish Hunter, Baseball Player

"Perfection consists not in doing extraordinary things, but in doing
ordinary things extraordinarily well. "
-- Angelique Arnauld, Abbess of Port-Royal

My Life as a Realtor.

What a great Life we have!

Yesterday was great! We got or DOG! Mojo is in the building. At 8 weeks old he was 18 lbs and he will be huge!

I just thought I would let you all know. Now on to RE!

We just picked up a smoking deal on a home. We are willing to asign it for 130K. It has a tax value of 184K with renters that are willing to pay 850 monthly. If you know of anyone that wnts a cash flow property, call me today and I will give you all the back story.

Here is some facts on the bonds. The bonds determane mortgages.

This week brings us the release of only three pieces of economic data that are likely to affect mortgage rates. However, the biggest event of the week will be the Federal Open Market Committee (FOMC) meeting Tuesday. We may see some pressure in bonds today as investors prepare for the meeting, but most traders will likely make their moves post-meeting Tuesday.

The first important release is June's Personal Income and Outlays data Monday morning. The Income & Spending report helps us measure consumer ability to spend and current spending habits. Forecasts called for a decline of 0.1% in income and an increase of 0.5% in spending. Results were an increase of 0.1% in income and 0.6% increase in spending.

Bonds bounced lower on the immediate news but have rebounded off the lows of the trading session. What this means is that mortgage interest rates will rise as the bonds continue to fall.

The FED is meeting right now discussing the economy and any changes to the FED Funds Rate. Analysts are predicting a 93% chance of no change to the rate. Inflation remains the major topic of concern with the bonds reacting negatively to the better than expected news. Read The News section for more information. Bonds look to stay on the roller coaster for now.

Here are some quotes!

"No man who continues to add something to the material, intellectual and
moral well-being of the place in which he lives is left long without
proper reward. "
-- Booker T. Washington, educator

"Always bear in mind that your own resolution to succeed is more
important than any other one thing. "
-- Abraham Lincoln, 16th President of the United States

"Success is doing ordinary things extraordinarily well. "
-- Jim Rohn, Motivational Speaker

"Do more than is required. What is the distance between someone who
achieves their goals consistently and those who spend their lives and
careers merely following? The extra mile. "
-- Gary Ryan Blair, Author and Motivational Speaker

"The future belongs to those who believe in the beauty of their dreams."
-- Eleanor Roosevelt, Former First Lady

"People never improve unless they look to some standard or example
higher and better than themselves. "
-- Tyron Edwards, American Theologian

"People with goals succeed because they know where they're going"
-- Earl Nightingale, Motivational Speaker

"If you only care enough for a result, you will almost certainly attain it."
-- William James, Psychologist

"People do not decide to become extraordinary. They decide to accomplish extraordinary things. "
-- Sir Edmund Hilary, First to reach the summit of Mount Everest