"You can't do it unless you can imagine it."
-- George Lucas, director
"Courage is rarely reckless or foolish. Courage usually involves a
highly realistic estimate of the odds that must be faced."
-- Margaret Truman, author
"Do not pray for tasks equal to your powers. Pray for powers equal to
your tasks."
-- Phillips Brooks, clergyman
"Trouble is only opportunity in work clothes."
-- Henry Kaiser, industrialist
"I learned that good judgment comes from experience and that experience
grows out of mistakes."
-- Omar Bradley, general
All "Betts" on Brian! The Only Realtor you want!
Friday, December 10, 2010
Tuesday, December 7, 2010
Daily Quotes Dec. 7 2010!
Daily Quotes Dec. 7 2010!
"Problems should be solved on the spot, as soon as they arise. No
frontline employee should have to wait for a supervisor's permission."
-- Jan Carlzon, airline executive
"Knowledge has to be improved, challenged and increased constantly, or it vanishes."
-- Peter Drucker, management expert
"Dreams never hurt anybody if he keeps working right behind the dream to
make as much of it become real as he can."
-- Frank Woolworth, Entrepreneur
"Wisdom is knowing what to do; virtue is doing it."
-- David Jordan, scientist
"You are not beaten until you admit it."
-- George Patton, general
All "Betts" on Brain! The Only Realtor you want!
"Problems should be solved on the spot, as soon as they arise. No
frontline employee should have to wait for a supervisor's permission."
-- Jan Carlzon, airline executive
"Knowledge has to be improved, challenged and increased constantly, or it vanishes."
-- Peter Drucker, management expert
"Dreams never hurt anybody if he keeps working right behind the dream to
make as much of it become real as he can."
-- Frank Woolworth, Entrepreneur
"Wisdom is knowing what to do; virtue is doing it."
-- David Jordan, scientist
"You are not beaten until you admit it."
-- George Patton, general
All "Betts" on Brain! The Only Realtor you want!
Monday, December 6, 2010
For the week of November 29, 2010
For the week of November 29, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
Last week was short, but still managed to squeeze in two reports on our favorite topic. Wednesday's New Home Sales for October were down 8.1% from the month before, at an annual rate of 283,000. A slight upward move in these numbers had been forecast. The inventory of new homes edged up to 8.6 months, higher than the 6 month's supply level everyone would like to see.
But Tuesday, October Existing Home Sales came in with a way smaller decline – down just 2.2% from September and in line with expectations. The National Association of Realtors (NAR) reported the annual sales rate at 4.43 million homes. Actual sales, year to date, are 4.15 million, down 2.9% from the same period a year ago. The NAR's chief economist feels that sales activity appears to be "off the bottom and attempting to settle into normal, sustainable levels." He expects steady improvement to levels "above 5 million by spring of next year." The median existing home price edged down a little to $170,500 and is down only 0.9% from a year ago. The months' supply of existing homes dipped to 10.5 from September's 10.6 reading, as inventories declined overall.
Review of Last Week
A TURKEY FOR WALL STREET... Unfortunately, Thanksgiving week turned out to be a turkey for stock market investors. Stock prices went down following renewed concerns over European debt and North and South Korea lobbing shells at each other across their border. Even though one trading day registered a 150-point gain thanks to some encouraging economic news, three out of the four days were downers, so the Dow and the S&P 500 ended lower for the week, while the Nasdaq eked out a miniscule gain.
With European debt, there are once again fears of contagion, which negatively affected stock markets there and around the world. While Ireland works its bailout with the European Union and the International Monetary Fund, worries about Portugal and Spain re-surface. On the home front, a negative Durable Goods Orders reading for October was offset by an upwardly revised 5.0% gain for September. The fall-off in New Home Sales was similarly balanced by Existing Home Sales coming in as expected, covered above.
Encouraging indicators also included Q3 GDP (gross domestic product) getting an upward revision from its initial estimate, to a 2.5% annual growth rate. Improvements in consumer spending and exports drove the solid move up. Initial jobless claims held at under 450,000 for the third week in a row, now down to 407,000. Finally, University of Michigan Consumer Sentiment surged to 71.6, more than two points above consensus expectations.
For the week, the Dow was down 1.0%, to 11092.00; the S&P 500 was down 0.9%, to 1189.40; but the Nasdaq was UP 0.7%, to 2534.56.
The bond market benefited from the flight to safety caused by events in Europe and Korea, but there was enough good economic news to put bond prices under pressure. The FNMA 30-year 4.0% bond we watch ended down 8 basis points for the week, closing at $101.09. National average rates for fixed-rate mortgages barely moved last week, according to Freddie Mac's survey of conforming mortgage rates. They are still at historically low levels.
This Week’s Forecast
MORE JOBS, SAME UNEMPLOYMENT RATE... The month ends tomorrow, so Friday brings the
November Employment Report and everyone will be looking for signs of hope on the jobs front. Experts predict we'll have another monthly gain in payrolls, although the 130,000 jobs predicted won't be enough to move the unemployment rate down. A jobs recovery is key to the housing recovery, but we're not quite there.
Thursday's Pending Home Sales report for October will give us an idea about existing home sales a couple of months out. No one expects a surge just yet. Manufacturing, however, is forecast to continue its steady expansion, with both Chicago PMI and the ISM Index well north of 50. The ISM Services read also shows growth in the nonmanufacturing sector. Observers are expecting a slight hike in November Consumer Confidence, always a good thing.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months Economists expect the Fed Funds Rate to remain low while the Fed continues its $600 billion bond buying program through the first half of next year. A surge in inflation or in the economic recovery could of course change that. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
Last week was short, but still managed to squeeze in two reports on our favorite topic. Wednesday's New Home Sales for October were down 8.1% from the month before, at an annual rate of 283,000. A slight upward move in these numbers had been forecast. The inventory of new homes edged up to 8.6 months, higher than the 6 month's supply level everyone would like to see.
But Tuesday, October Existing Home Sales came in with a way smaller decline – down just 2.2% from September and in line with expectations. The National Association of Realtors (NAR) reported the annual sales rate at 4.43 million homes. Actual sales, year to date, are 4.15 million, down 2.9% from the same period a year ago. The NAR's chief economist feels that sales activity appears to be "off the bottom and attempting to settle into normal, sustainable levels." He expects steady improvement to levels "above 5 million by spring of next year." The median existing home price edged down a little to $170,500 and is down only 0.9% from a year ago. The months' supply of existing homes dipped to 10.5 from September's 10.6 reading, as inventories declined overall.
Review of Last Week
A TURKEY FOR WALL STREET... Unfortunately, Thanksgiving week turned out to be a turkey for stock market investors. Stock prices went down following renewed concerns over European debt and North and South Korea lobbing shells at each other across their border. Even though one trading day registered a 150-point gain thanks to some encouraging economic news, three out of the four days were downers, so the Dow and the S&P 500 ended lower for the week, while the Nasdaq eked out a miniscule gain.
With European debt, there are once again fears of contagion, which negatively affected stock markets there and around the world. While Ireland works its bailout with the European Union and the International Monetary Fund, worries about Portugal and Spain re-surface. On the home front, a negative Durable Goods Orders reading for October was offset by an upwardly revised 5.0% gain for September. The fall-off in New Home Sales was similarly balanced by Existing Home Sales coming in as expected, covered above.
Encouraging indicators also included Q3 GDP (gross domestic product) getting an upward revision from its initial estimate, to a 2.5% annual growth rate. Improvements in consumer spending and exports drove the solid move up. Initial jobless claims held at under 450,000 for the third week in a row, now down to 407,000. Finally, University of Michigan Consumer Sentiment surged to 71.6, more than two points above consensus expectations.
For the week, the Dow was down 1.0%, to 11092.00; the S&P 500 was down 0.9%, to 1189.40; but the Nasdaq was UP 0.7%, to 2534.56.
The bond market benefited from the flight to safety caused by events in Europe and Korea, but there was enough good economic news to put bond prices under pressure. The FNMA 30-year 4.0% bond we watch ended down 8 basis points for the week, closing at $101.09. National average rates for fixed-rate mortgages barely moved last week, according to Freddie Mac's survey of conforming mortgage rates. They are still at historically low levels.
This Week’s Forecast
MORE JOBS, SAME UNEMPLOYMENT RATE... The month ends tomorrow, so Friday brings the
November Employment Report and everyone will be looking for signs of hope on the jobs front. Experts predict we'll have another monthly gain in payrolls, although the 130,000 jobs predicted won't be enough to move the unemployment rate down. A jobs recovery is key to the housing recovery, but we're not quite there.
Thursday's Pending Home Sales report for October will give us an idea about existing home sales a couple of months out. No one expects a surge just yet. Manufacturing, however, is forecast to continue its steady expansion, with both Chicago PMI and the ISM Index well north of 50. The ISM Services read also shows growth in the nonmanufacturing sector. Observers are expecting a slight hike in November Consumer Confidence, always a good thing.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months Economists expect the Fed Funds Rate to remain low while the Fed continues its $600 billion bond buying program through the first half of next year. A surge in inflation or in the economic recovery could of course change that. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
Last Week in the News November 29, 2010
Last Week in the News November 29, 2010
Retail sales fell 0.6% for the week ending November 20, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.8%.
Gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 2.5% in the third quarter of 2010. This follows a 1.7% pace of growth in the second quarter of 2010.
Existing home sales fell 2.2% in October to a seasonally adjusted annual rate of 4.43 million units from 4.53 million units in September. The inventory of unsold homes on the market declined 3.4% to 3.86 million, a 10.5-month supply at the current sales pace, down from a revised 10.6-month supply in September.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending November 19 rose 2.1%. Refinancing applications decreased 1%. Purchase volume rose 14.4%.
Orders for durable goods — items expected to last three or more years — fell 3.3% in October after increasing an upwardly revised 5% in September. Excluding volatile transportation-related goods, orders posted a monthly decrease of 2.7%.
New home sales fell 8.1% in October to a seasonally adjusted annual rate of 283,000 units from a rate of 307,000 units in September. Economists had expected a pace of 314,000 units.
Initial claims for unemployment benefits fell by 34,000 to 407,000 for the week ending November 20. That's the lowest level since July 2008. Continuing claims for the week ending November 13 fell by 142,000 to 4.18 million.
Upcoming on the economic calendar are reports on the housing price index on November 30, construction spending on December 1 and pending home sales on December 2.
All "Betts" on Brian! The Only Relator you want!
Retail sales fell 0.6% for the week ending November 20, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.8%.
Gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 2.5% in the third quarter of 2010. This follows a 1.7% pace of growth in the second quarter of 2010.
Existing home sales fell 2.2% in October to a seasonally adjusted annual rate of 4.43 million units from 4.53 million units in September. The inventory of unsold homes on the market declined 3.4% to 3.86 million, a 10.5-month supply at the current sales pace, down from a revised 10.6-month supply in September.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending November 19 rose 2.1%. Refinancing applications decreased 1%. Purchase volume rose 14.4%.
Orders for durable goods — items expected to last three or more years — fell 3.3% in October after increasing an upwardly revised 5% in September. Excluding volatile transportation-related goods, orders posted a monthly decrease of 2.7%.
New home sales fell 8.1% in October to a seasonally adjusted annual rate of 283,000 units from a rate of 307,000 units in September. Economists had expected a pace of 314,000 units.
Initial claims for unemployment benefits fell by 34,000 to 407,000 for the week ending November 20. That's the lowest level since July 2008. Continuing claims for the week ending November 13 fell by 142,000 to 4.18 million.
Upcoming on the economic calendar are reports on the housing price index on November 30, construction spending on December 1 and pending home sales on December 2.
All "Betts" on Brian! The Only Relator you want!
For the week of November 22, 2010
For the week of November 22, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
The Commerce Department reported last Wednesday that Housing Starts dropped 11.7% in October. This put them at a seasonally adjusted annual rate of 519,000, their lowest level in 18 months. But most of the fall off came from a 43.5% decline in multifamily construction, a volatile part of the market. Single-family building, accounting for more than 80% of all starts, was off just 1.1%, to 436,000 units. And September single-family starts were revised UP to a 2.1% gain. Meanwhile, Building Permits, which reflect builders' views of the future, were UP 0.5% to 550,000, another hopeful sign.
National average mortgage rates edged up in both Freddie Mac and Mortgage Bankers Association (MBA) weekly reports. The MBA felt rates rose because of "stronger economic data and lingering uncertainty regarding the structure and impact of the Fed's QE2 program." This Fed plan to buy $600 billion in bonds in a second round of quantitative easing was supposed to push rates down, stimulating the economy by making borrowing more affordable. But some investors fear QE2 will spark inflation, which pushes mortgage bond prices down and mortgage rates up. People looking to buy or refinance should probably not drag their feet waiting for lower rates that may never happen.
Review of Last Week
FLAT... The week on Wall Street saw a big drop in stock prices Tuesday, followed by a big gain on Thursday, but when all was said and done, the week ended virtually flat for all three market indexes. This, however, was a big improvement over the prior week's big declines for all the indexes.
Negative influences on the proceedings included the drop in Housing Starts covered above, along with the unexpected rise in mortgage rates after the start of the Fed's bond buying program. But once you got past those items, you had to go overseas to find more downers, which were basically continuations of last week's concerns. Investors don't like Chinese inflation threatening a rise in interest rates over there, or the increasing possibility of a bailout for the Irish banks.
But back over here, we did have some goodies going on. Retail sales were UP 1.2% in October, following a September gain that was upwardly revised to 0.7%. Could other positive economic surprises be on the way? Inflation came in tame, with the Consumer Price Index up just 0.2% for October and Core CPI up only 0.6% year-over-year, the smallest inflation increase in the index's history, dating back to 1957! Initial jobless claims held at under 450,000 for the second week in a row, still too high but showing that the labor market is better than it's been. The General Motors IPO gave back over $13 billion of the money taxpayers put in to prevent a GM bankruptcy.
For the week, the Dow was up just 0.1%, to 11203.55; the S&P 500 was flat, up only a fraction of a point, to 1199.73; and the Nasdaq was also flat, down a fraction of a point, to 2518.12.
The bond market had an up and down week of it, with prices under pressure on some issues at the end. The FNMA 30-year 4.0% bond we watch ended down 89 basis points for the week, closing at $101.17. This downward action in mortgage bond prices sent national average rates for fixed-rate mortgages up a tad for the week, as mentioned above.
This Week’s Forecast
TWO PACKED DAYS... Thanksgiving shortens the week, so a slew of economic reports get packed into Tuesday and Wednesday. We start with Second Estimate Q3 GDP, expected to edge up from the preliminary reading. Existing Home Sales for October should show a slight drop in the annual rate. Also Tuesday, the Minutes of the FOMC meeting of the Fed on November 3, could give more insight into the economic recovery.
Wednesday kicks off with Core PCE Prices, expected to inch up a tad, but still within the Fed's comfort zone for inflation. No need for them to curtail their QE2 bond-buying! Durable Goods Orders are forecast down a little for October, while Initial Unemployment Claims for the week should remain at their currently lower levels. Happily, New Home Sales for October are projected up a tad and let's hope the experts have that right.... Happy Thanksgiving!
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months With last week's CPI readings showing inflation very mild indeed, economists expect the Fed Funds Rate to stay low as the Fed continues its $600 billion bond buying program through the first half of next year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts' on Brian! The Ony Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
The Commerce Department reported last Wednesday that Housing Starts dropped 11.7% in October. This put them at a seasonally adjusted annual rate of 519,000, their lowest level in 18 months. But most of the fall off came from a 43.5% decline in multifamily construction, a volatile part of the market. Single-family building, accounting for more than 80% of all starts, was off just 1.1%, to 436,000 units. And September single-family starts were revised UP to a 2.1% gain. Meanwhile, Building Permits, which reflect builders' views of the future, were UP 0.5% to 550,000, another hopeful sign.
National average mortgage rates edged up in both Freddie Mac and Mortgage Bankers Association (MBA) weekly reports. The MBA felt rates rose because of "stronger economic data and lingering uncertainty regarding the structure and impact of the Fed's QE2 program." This Fed plan to buy $600 billion in bonds in a second round of quantitative easing was supposed to push rates down, stimulating the economy by making borrowing more affordable. But some investors fear QE2 will spark inflation, which pushes mortgage bond prices down and mortgage rates up. People looking to buy or refinance should probably not drag their feet waiting for lower rates that may never happen.
Review of Last Week
FLAT... The week on Wall Street saw a big drop in stock prices Tuesday, followed by a big gain on Thursday, but when all was said and done, the week ended virtually flat for all three market indexes. This, however, was a big improvement over the prior week's big declines for all the indexes.
Negative influences on the proceedings included the drop in Housing Starts covered above, along with the unexpected rise in mortgage rates after the start of the Fed's bond buying program. But once you got past those items, you had to go overseas to find more downers, which were basically continuations of last week's concerns. Investors don't like Chinese inflation threatening a rise in interest rates over there, or the increasing possibility of a bailout for the Irish banks.
But back over here, we did have some goodies going on. Retail sales were UP 1.2% in October, following a September gain that was upwardly revised to 0.7%. Could other positive economic surprises be on the way? Inflation came in tame, with the Consumer Price Index up just 0.2% for October and Core CPI up only 0.6% year-over-year, the smallest inflation increase in the index's history, dating back to 1957! Initial jobless claims held at under 450,000 for the second week in a row, still too high but showing that the labor market is better than it's been. The General Motors IPO gave back over $13 billion of the money taxpayers put in to prevent a GM bankruptcy.
For the week, the Dow was up just 0.1%, to 11203.55; the S&P 500 was flat, up only a fraction of a point, to 1199.73; and the Nasdaq was also flat, down a fraction of a point, to 2518.12.
The bond market had an up and down week of it, with prices under pressure on some issues at the end. The FNMA 30-year 4.0% bond we watch ended down 89 basis points for the week, closing at $101.17. This downward action in mortgage bond prices sent national average rates for fixed-rate mortgages up a tad for the week, as mentioned above.
This Week’s Forecast
TWO PACKED DAYS... Thanksgiving shortens the week, so a slew of economic reports get packed into Tuesday and Wednesday. We start with Second Estimate Q3 GDP, expected to edge up from the preliminary reading. Existing Home Sales for October should show a slight drop in the annual rate. Also Tuesday, the Minutes of the FOMC meeting of the Fed on November 3, could give more insight into the economic recovery.
Wednesday kicks off with Core PCE Prices, expected to inch up a tad, but still within the Fed's comfort zone for inflation. No need for them to curtail their QE2 bond-buying! Durable Goods Orders are forecast down a little for October, while Initial Unemployment Claims for the week should remain at their currently lower levels. Happily, New Home Sales for October are projected up a tad and let's hope the experts have that right.... Happy Thanksgiving!
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months With last week's CPI readings showing inflation very mild indeed, economists expect the Fed Funds Rate to stay low as the Fed continues its $600 billion bond buying program through the first half of next year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts' on Brian! The Ony Realtor you want!
Last Week in the News November 22, 2010
Last Week in the News November 22, 2010
Retail sales rose 1.2% in October after an upwardly revised 0.7% increase in September. It was the largest increase in seven months. Economists had anticipated retail sales to rise 0.7% in October.
Total business inventories rose 0.9% in September to $1.4 trillion, the highest level since March 2009. Total business sales rose 0.5% in September after a 0.3% increase in August.
The producer price index, which tracks wholesale price inflation, rose 0.4% in October, matching a 0.4% increase in September. Core prices — excluding food and fuel — fell 0.6% in October, the most since July 2006. For the year, seasonally adjusted wholesale prices are up 4.3%.
Industrial production at the nation's factories, mines and utilities was unchanged in October, following a revised 0.1% increase in September. Economists had anticipated a gain of 0.3%. Capacity utilization was unchanged at 74.8% in October.
Consumer prices rose a seasonally adjusted 0.2% in October, following a 0.1% increase in September. For the year, seasonally adjusted consumer prices are up 1.2%.
The combined construction of new single-family homes and apartments in October fell 11.7% to a seasonally adjusted annual rate of 519,000 units. Single-family starts fell 1.1%. Multifamily starts dropped 43.5%. Applications for new building permits, seen as an indicator of future activity, rose 0.5% to an annual rate of 550,000 units.
Initial claims for unemployment benefits rose by 2,000 to 439,000 for the week ending November 13. Continuing claims for the week ending November 6 fell by 48,000 to 4.295 million, the lowest level since the recovery began.
Upcoming on the economic calendar are reports on existing home sales on November 23 and new home sales on November 24.
All "Betts" on Brian! The Only Relator you want!
Retail sales rose 1.2% in October after an upwardly revised 0.7% increase in September. It was the largest increase in seven months. Economists had anticipated retail sales to rise 0.7% in October.
Total business inventories rose 0.9% in September to $1.4 trillion, the highest level since March 2009. Total business sales rose 0.5% in September after a 0.3% increase in August.
The producer price index, which tracks wholesale price inflation, rose 0.4% in October, matching a 0.4% increase in September. Core prices — excluding food and fuel — fell 0.6% in October, the most since July 2006. For the year, seasonally adjusted wholesale prices are up 4.3%.
Industrial production at the nation's factories, mines and utilities was unchanged in October, following a revised 0.1% increase in September. Economists had anticipated a gain of 0.3%. Capacity utilization was unchanged at 74.8% in October.
Consumer prices rose a seasonally adjusted 0.2% in October, following a 0.1% increase in September. For the year, seasonally adjusted consumer prices are up 1.2%.
The combined construction of new single-family homes and apartments in October fell 11.7% to a seasonally adjusted annual rate of 519,000 units. Single-family starts fell 1.1%. Multifamily starts dropped 43.5%. Applications for new building permits, seen as an indicator of future activity, rose 0.5% to an annual rate of 550,000 units.
Initial claims for unemployment benefits rose by 2,000 to 439,000 for the week ending November 13. Continuing claims for the week ending November 6 fell by 48,000 to 4.295 million, the lowest level since the recovery began.
Upcoming on the economic calendar are reports on existing home sales on November 23 and new home sales on November 24.
All "Betts" on Brian! The Only Relator you want!
Daily Quotes Dec. 6 2010!
"Small opportunities are often the beginning of great enterprises."
-- Demosthenes, statesman
"The successful man is the one who had the chance and took it."
-- Roger Babson, executive
"We can learn from past failures and mistakes, but we shouldn't get stuck there. We can keep future goals in mind, but we shouldn't get stuck there, either. The only way to reach our potential is to focus on what we must do now - this moment, this day - to perform effectively and win."
-- Joe Torre
"All men who deliberate on controversial matters should do it free of
hate, friendship, anger and pity."
-- Sallust, historian
"Instead of comparing our lot with that of those who are more fortunate
than we are, we should compare it with the lot of the great majority of
our fellow men. It then appears that we are among the privileged."
-- Helen Keller, lecturer
All "Betts" on Brian! The Only Relator you want!
-- Demosthenes, statesman
"The successful man is the one who had the chance and took it."
-- Roger Babson, executive
"We can learn from past failures and mistakes, but we shouldn't get stuck there. We can keep future goals in mind, but we shouldn't get stuck there, either. The only way to reach our potential is to focus on what we must do now - this moment, this day - to perform effectively and win."
-- Joe Torre
"All men who deliberate on controversial matters should do it free of
hate, friendship, anger and pity."
-- Sallust, historian
"Instead of comparing our lot with that of those who are more fortunate
than we are, we should compare it with the lot of the great majority of
our fellow men. It then appears that we are among the privileged."
-- Helen Keller, lecturer
All "Betts" on Brian! The Only Relator you want!
Wednesday, December 1, 2010
Daily Quotes Dec. 1 2010!
"Only by coming to grips with difficulty can you realize yor full potential."
-- Charles de Gaulle, president of France
"Know what you want to do, hold the thought firmly and do every day what should be done, and every sunset will see you that much nearer the goal."
-- Elbert Hubbard, publisher
"Life just doesn't hand you things. You have to get out there and make
things happen. That's the exciting part."
-- Emeril Lagasse, chef
"The virtue you would like to have, assume it is already yours,
appropriate it, enter into the part and live the character just as the
great actor is absorbed in... the part he plays."
-- Ralph Waldo Emerson, poet
"Small opportunities are often the beginning of great enterprises."
-- Demosthenes, statesman
All "Betts" on Brian! The Only Realtor you want!
-- Charles de Gaulle, president of France
"Know what you want to do, hold the thought firmly and do every day what should be done, and every sunset will see you that much nearer the goal."
-- Elbert Hubbard, publisher
"Life just doesn't hand you things. You have to get out there and make
things happen. That's the exciting part."
-- Emeril Lagasse, chef
"The virtue you would like to have, assume it is already yours,
appropriate it, enter into the part and live the character just as the
great actor is absorbed in... the part he plays."
-- Ralph Waldo Emerson, poet
"Small opportunities are often the beginning of great enterprises."
-- Demosthenes, statesman
All "Betts" on Brian! The Only Realtor you want!
Friday, November 19, 2010
Daily Quotes Nov. 19 2010!
Daily Quotes Nov. 19 2010!
"Don't say you don't have enough time. You have exactly the same number
of hours per day that were given to Helen Keller, Louis Pasteur,
Michelangelo, Leonardo da Vinci, Thomas Jefferson and Albert Einstein."
-- Jackson Brown Jr., writer
"Someone might have a germ of talent, but 90% of it is discipline and
how you practice it, what you do with it. Instinct won't carry you
through the entire journey. It's what you do in the moments between
inspiration."
-- Cate Blanchett, actress
"One of the things I learned the hard way was that it doesn't pay to get
discouraged. Keeping busy and making optimism a way of life can restore
your faith in yourself."
-- Lucille Ball, actress
"The past cannot be changed. The future is yet in your power. "
-- Hugh White, senator
"Action is the real measure of intelligence."
-- Napolean Hill, author
All "Betts" on Brian! The Only Realtor you want!
"Don't say you don't have enough time. You have exactly the same number
of hours per day that were given to Helen Keller, Louis Pasteur,
Michelangelo, Leonardo da Vinci, Thomas Jefferson and Albert Einstein."
-- Jackson Brown Jr., writer
"Someone might have a germ of talent, but 90% of it is discipline and
how you practice it, what you do with it. Instinct won't carry you
through the entire journey. It's what you do in the moments between
inspiration."
-- Cate Blanchett, actress
"One of the things I learned the hard way was that it doesn't pay to get
discouraged. Keeping busy and making optimism a way of life can restore
your faith in yourself."
-- Lucille Ball, actress
"The past cannot be changed. The future is yet in your power. "
-- Hugh White, senator
"Action is the real measure of intelligence."
-- Napolean Hill, author
All "Betts" on Brian! The Only Realtor you want!
Thursday, November 18, 2010
Daily Quotes Nov. 18 2010!
Daily Quotes Nov. 18 2010!
"Happiness is only a byproduct of successful living."
-- Austen Riggs, psychiatrist
"The key to successful leadership today is influence, not authority."
-- Kenneth Blanchard, writer
"You can't do it unless you can imagine it."
-- George Lucas, director
"All that is necessary to break the spell of inertia and frustration is
this: Act as if it were impossible to fail."
-- Dorothea Brande, writer
"Without courage, all other virtues lose their meaning."
-- Winston Churchill, British prime minister
All "Betts" on Brian! The Only Realtor you want!
"Happiness is only a byproduct of successful living."
-- Austen Riggs, psychiatrist
"The key to successful leadership today is influence, not authority."
-- Kenneth Blanchard, writer
"You can't do it unless you can imagine it."
-- George Lucas, director
"All that is necessary to break the spell of inertia and frustration is
this: Act as if it were impossible to fail."
-- Dorothea Brande, writer
"Without courage, all other virtues lose their meaning."
-- Winston Churchill, British prime minister
All "Betts" on Brian! The Only Realtor you want!
Tuesday, November 16, 2010
For the week of November 15, 2010
For the week of November 15, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
The National Association of Realtors (NAR) reported that home prices stayed essentially flat in the third quarter compared to the same time frame a year ago. This price stabilization is encouraging, given that sales of existing homes in the period did drop compared to both the prior quarter this year and to the same quarter a year ago. Of course, both those time periods saw buyers rushing in to take advantage of the federal tax credits.
On the mortgage front, national average mortgage rates dipped again according to Freddie Mac's weekly survey. This was considered by most experts to be the result of the Federal Reserve's recent announcement of their second round of "quantitative easing," dubbed "QE2." This is the plan in which the Fed will buy up to $600 billion in Treasuries from now till the end of June next year. Not surprisingly, mortgage applications spiked up 5.8% for the week for both purchase and refinance loans, according to the Mortgage Bankers Association.
Review of Last Week
COULDN'T MAKE IT SIX... The broadly based S&P 500 stock market index was up five weeks in a row, but just couldn't score that sixth up week. In sympathy, the Dow and the Nasdaq indexes also dropped for the week as Wall Street investors passed over some of the positive economic reports, preferring instead to dwell on the negative news.
Things to worry about now have an international flavor, beginning with, once again, guess what, European sovereign debt. This time the speculation was that Ireland couldn't afford to bail out its financial sector, so the European Union might have to step in. Another continent away, there were fears China will raise its interest rates to tame its growing inflation. Here in the U.S. we had tech bellwether Cisco trimming profit projections for the rest of its fiscal year.
Meanwhile, those sensing a quickening of the pace of recovery latched onto news of September's shrinking trade deficit, which featured a $0.5 billion increase in exports, always a nice thing to see. Best of all was the report that new unemployment claims dropped 24,000 for the week, to 435,000. This is the first weekly reading for jobless claims since the recession began that was below 440,000, not using any statistical or seasonal biases to get there. Some analysts saw this drop in initial claims as an encouraging sign that hiring could soon pick up.
For the week, the Dow was down 2.2%, to 11192.58; the S&P 500 was also down 2.2%, to 1199.21; and the Nasdaq dropped 2.4%, to 2518.21.
The week in the bond market closed with prices under pressure. Most observers put this to rising Chinese inflation because no matter where it originates, inflation drives bond prices down. The FNMA 30-year 4.0% bond we watch ended down 113 basis points for the week, closing at $102.06.
Nonetheless, as mentioned above, national average rates for fixed-rate mortgages hit historic lows, according to Freddie Mac's weekly survey of conforming loans.
This Week’s Forecast
A BIT OF EVERYTHING... In contrast to last week, we get wall-to-wall economic reports this time around. Monday's October Retail Sales are expected to reveal a slight increase in the consumer's participation in the recovery. We'll get manufacturing in the New York region on Monday (expected down) and in the Philadelphia region on Friday (expected up) with Industrial Production and Capacity Utilization (both up a tad) in between. Inflation is forecast up a trifle but well under control in both Wednesday's Consumer Price Index (CPI) and Tuesday's Producer Price Index (PPI).
Also on Wednesday, we'll see how home builders were feeling in October, with Housing Starts and Building Permits expected to remain at their modest levels. Thursday's Leading Economic Indicators (LEI) Index is forecast to show the recovery still slowly inching forward.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months The Fed's $600 billion worth of Treasury purchases are slated to continue through the first half of 2011. Experts say the Fed Funds Rate should stay at its rock bottom level during that time, as long as inflation remains tame. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
The National Association of Realtors (NAR) reported that home prices stayed essentially flat in the third quarter compared to the same time frame a year ago. This price stabilization is encouraging, given that sales of existing homes in the period did drop compared to both the prior quarter this year and to the same quarter a year ago. Of course, both those time periods saw buyers rushing in to take advantage of the federal tax credits.
On the mortgage front, national average mortgage rates dipped again according to Freddie Mac's weekly survey. This was considered by most experts to be the result of the Federal Reserve's recent announcement of their second round of "quantitative easing," dubbed "QE2." This is the plan in which the Fed will buy up to $600 billion in Treasuries from now till the end of June next year. Not surprisingly, mortgage applications spiked up 5.8% for the week for both purchase and refinance loans, according to the Mortgage Bankers Association.
Review of Last Week
COULDN'T MAKE IT SIX... The broadly based S&P 500 stock market index was up five weeks in a row, but just couldn't score that sixth up week. In sympathy, the Dow and the Nasdaq indexes also dropped for the week as Wall Street investors passed over some of the positive economic reports, preferring instead to dwell on the negative news.
Things to worry about now have an international flavor, beginning with, once again, guess what, European sovereign debt. This time the speculation was that Ireland couldn't afford to bail out its financial sector, so the European Union might have to step in. Another continent away, there were fears China will raise its interest rates to tame its growing inflation. Here in the U.S. we had tech bellwether Cisco trimming profit projections for the rest of its fiscal year.
Meanwhile, those sensing a quickening of the pace of recovery latched onto news of September's shrinking trade deficit, which featured a $0.5 billion increase in exports, always a nice thing to see. Best of all was the report that new unemployment claims dropped 24,000 for the week, to 435,000. This is the first weekly reading for jobless claims since the recession began that was below 440,000, not using any statistical or seasonal biases to get there. Some analysts saw this drop in initial claims as an encouraging sign that hiring could soon pick up.
For the week, the Dow was down 2.2%, to 11192.58; the S&P 500 was also down 2.2%, to 1199.21; and the Nasdaq dropped 2.4%, to 2518.21.
The week in the bond market closed with prices under pressure. Most observers put this to rising Chinese inflation because no matter where it originates, inflation drives bond prices down. The FNMA 30-year 4.0% bond we watch ended down 113 basis points for the week, closing at $102.06.
Nonetheless, as mentioned above, national average rates for fixed-rate mortgages hit historic lows, according to Freddie Mac's weekly survey of conforming loans.
This Week’s Forecast
A BIT OF EVERYTHING... In contrast to last week, we get wall-to-wall economic reports this time around. Monday's October Retail Sales are expected to reveal a slight increase in the consumer's participation in the recovery. We'll get manufacturing in the New York region on Monday (expected down) and in the Philadelphia region on Friday (expected up) with Industrial Production and Capacity Utilization (both up a tad) in between. Inflation is forecast up a trifle but well under control in both Wednesday's Consumer Price Index (CPI) and Tuesday's Producer Price Index (PPI).
Also on Wednesday, we'll see how home builders were feeling in October, with Housing Starts and Building Permits expected to remain at their modest levels. Thursday's Leading Economic Indicators (LEI) Index is forecast to show the recovery still slowly inching forward.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months The Fed's $600 billion worth of Treasury purchases are slated to continue through the first half of 2011. Experts say the Fed Funds Rate should stay at its rock bottom level during that time, as long as inflation remains tame. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
Daily Quotes Nov. 16 2010!
Daily Quotes Nov. 16 2010!
"My grandfather once told me that there were two kinds of people: those
who do the work and those who take the credit. He told me to try to be
in the first group; there was much less competition."
-- Indira Gandhi, Indian prime minister
"Perseverance is failing 19 times and succeeding the 20th."
-- Julie Andrews, actress
"You can't do it unless you can imagine it."
-- George Lucas, director
"Difficulties are meant to rouse, not discourage. The human spirit is to
grow strong by conflict."
-- William Channing, theologian
"The most dangerous question a prospect or customer asks is "Why should
I?" And he may ask it more than once... The product and its
communication stream must continue to provide him with both rational and
emotional answers."
-- Lester Wunderman, marketing pioneer
All "Betts" on Brian! The Only Realtor you want!
"My grandfather once told me that there were two kinds of people: those
who do the work and those who take the credit. He told me to try to be
in the first group; there was much less competition."
-- Indira Gandhi, Indian prime minister
"Perseverance is failing 19 times and succeeding the 20th."
-- Julie Andrews, actress
"You can't do it unless you can imagine it."
-- George Lucas, director
"Difficulties are meant to rouse, not discourage. The human spirit is to
grow strong by conflict."
-- William Channing, theologian
"The most dangerous question a prospect or customer asks is "Why should
I?" And he may ask it more than once... The product and its
communication stream must continue to provide him with both rational and
emotional answers."
-- Lester Wunderman, marketing pioneer
All "Betts" on Brian! The Only Realtor you want!
Friday, November 12, 2010
Daily Quotes Nov. 12 2010!
Daily Quotes Nov. 12 2010!
"No matter how good an idea sounds, test it first. "
-- Henry Bloch, H&R Block co-founder
"To some degree, you control your life by controlling your time. "
-- Conrad Hilton, hotel executive
"The hours we pass with happy prospects in view are more pleasing than
those crowded with fruition."
-- Oliver Goldsmith, writer
"Every memorable act in the world is a triumph of enthusiasm. Nothing
great was ever achieved without it because it gives any challenge or any
occupation, no matter how frightening or difficult, a new meaning.
Without enthusiasm you are doomed to a life of mediocrity but with it
you can accomplish miracles."
-- Og Mandion
"Being smart is an elusive concept. There's a certain sharpness, an
ability to absorb new facts, to ask an insightful question or relate to
domains that may not seem connected at first."
-- Bill Gates, Microsoft co-founder
All "Betts" on Brian! The Only Relator you want!
"No matter how good an idea sounds, test it first. "
-- Henry Bloch, H&R Block co-founder
"To some degree, you control your life by controlling your time. "
-- Conrad Hilton, hotel executive
"The hours we pass with happy prospects in view are more pleasing than
those crowded with fruition."
-- Oliver Goldsmith, writer
"Every memorable act in the world is a triumph of enthusiasm. Nothing
great was ever achieved without it because it gives any challenge or any
occupation, no matter how frightening or difficult, a new meaning.
Without enthusiasm you are doomed to a life of mediocrity but with it
you can accomplish miracles."
-- Og Mandion
"Being smart is an elusive concept. There's a certain sharpness, an
ability to absorb new facts, to ask an insightful question or relate to
domains that may not seem connected at first."
-- Bill Gates, Microsoft co-founder
All "Betts" on Brian! The Only Relator you want!
Wednesday, November 10, 2010
For the week of November 8, 2010
For the week of November 8, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
Last Friday the National Association of Realtors (NAR) reported that their gauge of Pending Home Sales dropped 1.8% in September from an upwardly revised August reading. The pending sales index reflects signed contracts. Since it typically takes a few months to get from contract to closing, this reading forecasts actual existing home sales toward the end of this year.
The NAR's chief economist made an insightful point: "We've added 30 million people to the U.S. population over the past ten years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the market once the economy gathers momentum." Other analysts commented that "decade low mortgage rates and near record highs in affordability should help stabilize sales in the near term, however it will take meaningful improvement in the labor market to drive housing going forward."
Review of Last Week
UP WE GO AGAIN... Stock market investors pushed the Dow UP to its highest level since September 8, 2008, which was just before the economy headed south. In fact, all the major market indexes registered two year highs last week, as Wall Street reacted to the midterm elections on Tuesday, the Federal Reserve's announcement on Wednesday, and the October Jobs report on Friday.
The week began on a bit of a sour note, with September Personal Income down 0.1% and Personal Spending up only 0.2%, both missing expectations. But consumer inflation was up just 0.1% for the month and up 1.4% over a year ago. Core inflation, excluding food and energy, was up only 1.2% from a year ago, well within Fed guidelines. October ISM Manufacturing and ISM Services indexes were both UP, beating expectations and showing business growth.
Tuesday's election results were expected, with Republicans taking the House and Democrats keeping control of the Senate despite losing six seats to Republicans. Wednesday the Fed announced their second round of quantitative easing (QE 2). The Fed will be purchasing $600 billion in long-term Treasury securities from now till the middle of next year to help further stimulate the economy. The big upside surprise was Friday's employment report. 151,000 new jobs were created in October, versus the mere 60,000 expected. The private payroll gain was 159,000, which puts the private sector up by more than 100,000 jobs for each of the last four months. Unfortunately, the workforce increase kept the unemployment rate at 9.6%.
For the week, the Dow was UP 2.9%, to 11444.08; the S&P 500 ended UP 3.6%, at 1225.85; and the Nasdaq was UP 2.9%, to 2578.98.
It was a movable feast last week in the bond market, with prices moving up on the Fed's announcement, then pulling back with the unexpectedly positive jobs report. Nonetheless, the FNMA 30-year 4.0% bond we watch ended UP 17 basis points for the week, closing at $103.19.
According to Freddie Mac's weekly survey of conforming loans, national average rates for fixed-rate mortgages remain at historic lows, even lower than predicted for this time frame.
This Week’s Forecast
QUIET TIME... What a change from last week. No economic reports on Veteran's Day Thursday and the rest of the week is fairly sedate. Wednesday, we'll want to keep an eye on Initial Weekly and Continuing Unemployment Claims, although they're forecast to stay pretty much where they've been. This is still not at a level that will start reducing the Unemployment Rate, which is the good news we need for the housing recovery. The week will close out with preliminary November Michigan Consumer Sentiment, expected to rise just a bit.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months The Fed has said their quantitative easing Treasury purchases can continue through the first half of 2011. So economists expect the Fed Funds Rate to stay at its rock bottom level during that time, unless inflation becomes a problem, which it hasn't up till now. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
Last Friday the National Association of Realtors (NAR) reported that their gauge of Pending Home Sales dropped 1.8% in September from an upwardly revised August reading. The pending sales index reflects signed contracts. Since it typically takes a few months to get from contract to closing, this reading forecasts actual existing home sales toward the end of this year.
The NAR's chief economist made an insightful point: "We've added 30 million people to the U.S. population over the past ten years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the market once the economy gathers momentum." Other analysts commented that "decade low mortgage rates and near record highs in affordability should help stabilize sales in the near term, however it will take meaningful improvement in the labor market to drive housing going forward."
Review of Last Week
UP WE GO AGAIN... Stock market investors pushed the Dow UP to its highest level since September 8, 2008, which was just before the economy headed south. In fact, all the major market indexes registered two year highs last week, as Wall Street reacted to the midterm elections on Tuesday, the Federal Reserve's announcement on Wednesday, and the October Jobs report on Friday.
The week began on a bit of a sour note, with September Personal Income down 0.1% and Personal Spending up only 0.2%, both missing expectations. But consumer inflation was up just 0.1% for the month and up 1.4% over a year ago. Core inflation, excluding food and energy, was up only 1.2% from a year ago, well within Fed guidelines. October ISM Manufacturing and ISM Services indexes were both UP, beating expectations and showing business growth.
Tuesday's election results were expected, with Republicans taking the House and Democrats keeping control of the Senate despite losing six seats to Republicans. Wednesday the Fed announced their second round of quantitative easing (QE 2). The Fed will be purchasing $600 billion in long-term Treasury securities from now till the middle of next year to help further stimulate the economy. The big upside surprise was Friday's employment report. 151,000 new jobs were created in October, versus the mere 60,000 expected. The private payroll gain was 159,000, which puts the private sector up by more than 100,000 jobs for each of the last four months. Unfortunately, the workforce increase kept the unemployment rate at 9.6%.
For the week, the Dow was UP 2.9%, to 11444.08; the S&P 500 ended UP 3.6%, at 1225.85; and the Nasdaq was UP 2.9%, to 2578.98.
It was a movable feast last week in the bond market, with prices moving up on the Fed's announcement, then pulling back with the unexpectedly positive jobs report. Nonetheless, the FNMA 30-year 4.0% bond we watch ended UP 17 basis points for the week, closing at $103.19.
According to Freddie Mac's weekly survey of conforming loans, national average rates for fixed-rate mortgages remain at historic lows, even lower than predicted for this time frame.
This Week’s Forecast
QUIET TIME... What a change from last week. No economic reports on Veteran's Day Thursday and the rest of the week is fairly sedate. Wednesday, we'll want to keep an eye on Initial Weekly and Continuing Unemployment Claims, although they're forecast to stay pretty much where they've been. This is still not at a level that will start reducing the Unemployment Rate, which is the good news we need for the housing recovery. The week will close out with preliminary November Michigan Consumer Sentiment, expected to rise just a bit.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months The Fed has said their quantitative easing Treasury purchases can continue through the first half of 2011. So economists expect the Fed Funds Rate to stay at its rock bottom level during that time, unless inflation becomes a problem, which it hasn't up till now. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
Last Week in the News November 8, 2010
Last Week in the News
The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 56.9 in October after reaching 54.4 in September. Economists had anticipated a reading of 54.5. A reading above 50 signals expansion. It was the 15th straight month of expansion.
Total construction spending rose 0.5% to $801.7 billion in September, following a revised 0.2% drop in August. Economists had anticipated a drop of 0.5% in September.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 29 fell 5%. Refinancing applications decreased 6.4%. Purchase volume rose 1.4%.
Factory orders rose 2.1% in September to a seasonally adjusted $420 billion. The increase follows a 0.5% drop in August. The increase was largely due to a 15.8% rise in demand for commercial aircraft. Excluding the volatile transportation sector, orders rose 0.4%.
The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity rose to 54.3 in October from 53.2 in September. A reading above 50 signals expansion.
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 1.8% in September after a revised 4.4% increase in August. On a year-over-year basis, pending sales are down nearly 25%.
Initial claims for unemployment benefits rose by 20,000 to 457,000 for the week ending October 30. Continuing claims for the week ending October 23 fell by 42,000 to 4.34 million, the lowest level since the recovery began. Non-farm payroll employment increased by 151,000 in October, a reading much higher than the 60,000 anticipated.
Upcoming on the economic calendar are reports on wholesale trade on November 9 and consumer sentiment on November 12.
All "Betts" on Brian! The Only Realtor you want!
The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 56.9 in October after reaching 54.4 in September. Economists had anticipated a reading of 54.5. A reading above 50 signals expansion. It was the 15th straight month of expansion.
Total construction spending rose 0.5% to $801.7 billion in September, following a revised 0.2% drop in August. Economists had anticipated a drop of 0.5% in September.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 29 fell 5%. Refinancing applications decreased 6.4%. Purchase volume rose 1.4%.
Factory orders rose 2.1% in September to a seasonally adjusted $420 billion. The increase follows a 0.5% drop in August. The increase was largely due to a 15.8% rise in demand for commercial aircraft. Excluding the volatile transportation sector, orders rose 0.4%.
The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity rose to 54.3 in October from 53.2 in September. A reading above 50 signals expansion.
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 1.8% in September after a revised 4.4% increase in August. On a year-over-year basis, pending sales are down nearly 25%.
Initial claims for unemployment benefits rose by 20,000 to 457,000 for the week ending October 30. Continuing claims for the week ending October 23 fell by 42,000 to 4.34 million, the lowest level since the recovery began. Non-farm payroll employment increased by 151,000 in October, a reading much higher than the 60,000 anticipated.
Upcoming on the economic calendar are reports on wholesale trade on November 9 and consumer sentiment on November 12.
All "Betts" on Brian! The Only Realtor you want!
What Are Discount Points?
What Are Discount Points?
Discount points are fees paid to a lender in order to purchase a lower interest rate. This process is also known as a "rate buydown" and the net result is a lower monthly mortgage payment over the life of the loan.
One point is 1% of the loan amount. So the cost — paid at closing — for one point on a loan of $100,000 is $1,000. Typically, one point will lower the interest rate .25% to .375%, depending on the type of loan.
Does it make sense for your clients to consider purchasing discount points? That depends on a number of factors. Usually, it is best to avoid discount points if a client will be in the home less than four years, is applying for an adjustable rate mortgage or plans to refinance within a few years. Discount points are generally a good idea if the homebuyer plans to remain in the home over five years and is not planning on refinancing in the near future.
When considering discount points, it's best to conduct a break-even analysis. This is done by calculating the monthly mortgage payment with no points, then subtracting the monthly mortgage payment with points. The difference is the monthly savings. Then divide the cost of the discount points by the savings. The result is the number of months until the homebuyer breaks even.
Discount points for residential property are tax deductible in the year they are paid. Discount points are available when refinancing, but those are deductible over the life of the loan. It's best to advise your clients to consult with a tax advisor regarding the details of these deductions
All "Betts" on Brian! The Only Relator you want!
Discount points are fees paid to a lender in order to purchase a lower interest rate. This process is also known as a "rate buydown" and the net result is a lower monthly mortgage payment over the life of the loan.
One point is 1% of the loan amount. So the cost — paid at closing — for one point on a loan of $100,000 is $1,000. Typically, one point will lower the interest rate .25% to .375%, depending on the type of loan.
Does it make sense for your clients to consider purchasing discount points? That depends on a number of factors. Usually, it is best to avoid discount points if a client will be in the home less than four years, is applying for an adjustable rate mortgage or plans to refinance within a few years. Discount points are generally a good idea if the homebuyer plans to remain in the home over five years and is not planning on refinancing in the near future.
When considering discount points, it's best to conduct a break-even analysis. This is done by calculating the monthly mortgage payment with no points, then subtracting the monthly mortgage payment with points. The difference is the monthly savings. Then divide the cost of the discount points by the savings. The result is the number of months until the homebuyer breaks even.
Discount points for residential property are tax deductible in the year they are paid. Discount points are available when refinancing, but those are deductible over the life of the loan. It's best to advise your clients to consult with a tax advisor regarding the details of these deductions
All "Betts" on Brian! The Only Relator you want!
TOMORROW IS OFTEN THE BUSIEST DAY OF THE WEEK
"TOMORROW IS OFTEN THE BUSIEST DAY OF THE WEEK." Spanish Proverb. And it sure seemed that way every day of last week, with one of the busiest economic calendars seen in years. Friday’s Jobs Report capped off a week filled with election results and a big announcement from the Fed regarding the next round of Quantitative Easing (QE2). So what impact did all of this news have on Bonds and home loan rates? Let’s break it down.
On Friday, the Labor Department reported that 151,000 jobs were created in October, all in the private sector. This was much higher than the 60,000 job creations that were expected - and while the economy needs a lot more job creations to put a dent in the unemployment rate, this is a great start to a recovery in the labor market.
Adding to the positive tone of the report, there were upward revisions to both August and September's numbers, and the Unemployment Rate held steady at 9.6%. The Average Hourly Wage increased as well - and across the board, the numbers were stronger than anticipated. Should this trend continue in the coming months, it would support the notion that labor has not only stabilized - but is perhaps even expanding, which would be welcome news indeed.
And while this is great news for the economy, remember that when good economic news arrives, investors move money into Stocks... and this pulls money out of all types of Bonds, including Mortgage Backed Securities, which home loan rates are based on. When money moves out of Bonds, it causes Bond pricing and home loan rates to worsen - and that’s exactly what happened, following the better than expected Jobs Report. Although we all like to hear good news for the economy - any strong, positive economic news is bad news for Bond pricing and home loan rates.
Home loan rates were exceptionally volatile all last week - and likely to remain so ahead. While rates are still at very low, affordable levels - they won’t last forever, so please get in touch if you have questions about how the current rate climate might benefit your situation.
In other big news last week, the Federal Reserve Board made their much anticipated announcement regarding another round of "Quantitative Easing" or QE2, where the Fed will participate in purchasing Treasury Securities in a bid to keep the economic recovery on track. On Wednesday, the Fed announced that they intend to purchase $600 Billion in Treasuries, starting now and continuing through mid-2011, which equates to about $75 Billion in purchases per month. So how will this impact home loan rates ahead?
We need to be mindful that the Fed initiated QE2 for three reasons. One, to help lower interest rates in order to spur consumer and business spending... which in turn will create inflation. Two, to help lower the unemployment rate via an economic boost. And three, to help push Stock prices higher. And all three of these factors will cause headwinds for Bonds and home loan rates down the road.
As the Fed gets to work on putting their latest plan into effect - we can be sure that inflation readings in various economic reports will likely be more highly scrutinized by the markets. Upcoming reports will reveal whether the Fed will be successful in their quest to fight deflation, and create a level of Goldilocks inflation that is not too hot, not too cool... but juuuust right. Ultimately, if inflation expectations creep higher, interest rates for long-term Bonds - like Mortgage Bonds - will rise as well.
One thing is certain, the volatility we saw in the markets last week is sure to continue. If you have any questions about how you can take advantage of today’s historic low rates and fabulous home prices, please contact me, and let’s evaluate your current situation. And feel free to forward this email to any friends, family members, or colleagues who may have questions as well - I’m always pleased to talk with anyone you’d refer my way.
All "Betts" on Brian! The Only Relator you want!
On Friday, the Labor Department reported that 151,000 jobs were created in October, all in the private sector. This was much higher than the 60,000 job creations that were expected - and while the economy needs a lot more job creations to put a dent in the unemployment rate, this is a great start to a recovery in the labor market.
Adding to the positive tone of the report, there were upward revisions to both August and September's numbers, and the Unemployment Rate held steady at 9.6%. The Average Hourly Wage increased as well - and across the board, the numbers were stronger than anticipated. Should this trend continue in the coming months, it would support the notion that labor has not only stabilized - but is perhaps even expanding, which would be welcome news indeed.
And while this is great news for the economy, remember that when good economic news arrives, investors move money into Stocks... and this pulls money out of all types of Bonds, including Mortgage Backed Securities, which home loan rates are based on. When money moves out of Bonds, it causes Bond pricing and home loan rates to worsen - and that’s exactly what happened, following the better than expected Jobs Report. Although we all like to hear good news for the economy - any strong, positive economic news is bad news for Bond pricing and home loan rates.
Home loan rates were exceptionally volatile all last week - and likely to remain so ahead. While rates are still at very low, affordable levels - they won’t last forever, so please get in touch if you have questions about how the current rate climate might benefit your situation.
In other big news last week, the Federal Reserve Board made their much anticipated announcement regarding another round of "Quantitative Easing" or QE2, where the Fed will participate in purchasing Treasury Securities in a bid to keep the economic recovery on track. On Wednesday, the Fed announced that they intend to purchase $600 Billion in Treasuries, starting now and continuing through mid-2011, which equates to about $75 Billion in purchases per month. So how will this impact home loan rates ahead?
We need to be mindful that the Fed initiated QE2 for three reasons. One, to help lower interest rates in order to spur consumer and business spending... which in turn will create inflation. Two, to help lower the unemployment rate via an economic boost. And three, to help push Stock prices higher. And all three of these factors will cause headwinds for Bonds and home loan rates down the road.
As the Fed gets to work on putting their latest plan into effect - we can be sure that inflation readings in various economic reports will likely be more highly scrutinized by the markets. Upcoming reports will reveal whether the Fed will be successful in their quest to fight deflation, and create a level of Goldilocks inflation that is not too hot, not too cool... but juuuust right. Ultimately, if inflation expectations creep higher, interest rates for long-term Bonds - like Mortgage Bonds - will rise as well.
One thing is certain, the volatility we saw in the markets last week is sure to continue. If you have any questions about how you can take advantage of today’s historic low rates and fabulous home prices, please contact me, and let’s evaluate your current situation. And feel free to forward this email to any friends, family members, or colleagues who may have questions as well - I’m always pleased to talk with anyone you’d refer my way.
All "Betts" on Brian! The Only Relator you want!
Daily Quotes Nov. 10 2010!
Daily Quotes Nov. 10 2010!
"No matter what it is, pick yourself up and go on to the next project."
-- Shelley Duvall, actress
"A man may fulfill the object of his existence by asking a question he
cannot answer and attempting a task he cannot achieve."
-- Oliver Wendell Holmes Sr., physician
"Our minds can shape the way a thing will be because we act according to
our expectations."
-- Federico Fellini, director
"All achievements, all earned riches, have their beginning in an idea."
-- Napolean Hill, author
"Kind words can be short and easy to speak, but their echoes are truly
endless."
-- Mother Teresa, charity worker
All "Betts" on Brian! The Only Realtor you want!
"No matter what it is, pick yourself up and go on to the next project."
-- Shelley Duvall, actress
"A man may fulfill the object of his existence by asking a question he
cannot answer and attempting a task he cannot achieve."
-- Oliver Wendell Holmes Sr., physician
"Our minds can shape the way a thing will be because we act according to
our expectations."
-- Federico Fellini, director
"All achievements, all earned riches, have their beginning in an idea."
-- Napolean Hill, author
"Kind words can be short and easy to speak, but their echoes are truly
endless."
-- Mother Teresa, charity worker
All "Betts" on Brian! The Only Realtor you want!
Friday, November 5, 2010
Daily Quotes Nov. 5 2010!
Daily Quotes Nov. 5 2010!
"Don't ever be afraid to admit you were wrong. It's like saying you're
wiser today than you were yesterday."
-- Robert Newell, humorist
"I am willing to put myself through anything; temporary pain or
discomfort means nothing to me as long as I can see that the experience
will take me to a new level."
-- Diana Nyad, swimmer
"If you want to conquer fear, don't sit at home and think about it. Go
out and get busy. "
-- Dale Carnegie, motivational expert
"Be more concerned with your character than your reputation, because
your character is what you really are, while your reputation is merely
what others think you are."
-- John Wooden, basketball coach
"Deal first with whatever is causing you the greatest emotional
distress. Often this will break the logjam in your work and free you up
mentally to complete (the) other tasks."
-- Brian Tracy, motivational coach
All "Betts" on Brian! The Only Realtor you want!
"Don't ever be afraid to admit you were wrong. It's like saying you're
wiser today than you were yesterday."
-- Robert Newell, humorist
"I am willing to put myself through anything; temporary pain or
discomfort means nothing to me as long as I can see that the experience
will take me to a new level."
-- Diana Nyad, swimmer
"If you want to conquer fear, don't sit at home and think about it. Go
out and get busy. "
-- Dale Carnegie, motivational expert
"Be more concerned with your character than your reputation, because
your character is what you really are, while your reputation is merely
what others think you are."
-- John Wooden, basketball coach
"Deal first with whatever is causing you the greatest emotional
distress. Often this will break the logjam in your work and free you up
mentally to complete (the) other tasks."
-- Brian Tracy, motivational coach
All "Betts" on Brian! The Only Realtor you want!
Thursday, November 4, 2010
November Newsletter and Reminder-Brian Betts
Wow! It is almost time for the Holliday season! Can you believe it?
I hope you had more treats the tricks on Halloween. I ate way to much candy as usual!
Don’t forget to “Fall back” 1 hour on November 7th this year!
My 1st born Brian E. Betts II “Deuce” will be 1 on Nov. 23! I can’t believe he is already 1! Time just fly’s to fast now!
As far as Real Estate, 634 homes Sold in the Salt Lake Valley in October. Rates are still low and so are home prices! Don’t forget you can still get the 1 Year Home Warranty for free from me is you buy or sell a home with me until the end of the year! You can start your search at www.bettshomes.com and search out ALL the active listings in Utah 24/7! Call me and we can go look at these homes in person!
Thank you for all your referrals of your friends and family that you trust me with. It’ is because of you that I am able to stay in business.
Remember to Use www.bettshomes.com to search out the active listings in Utah, or you can go to www.brianebetts.com for a Wealth of Information!
Food For Thought! When I came into the Real Estate World in the Beginning of 2006 there were almost 13,000 Realtors in Business in the Salt Lake Board of Realtors, now there are about 5,000! That should let you know what’s going on! To let you know as well, I’m not going anywhere! I will still be in business for the foreseeable future and will be able to service you for years to come.
All "Betts" on Brian! The Only Realtor you want!
I hope you had more treats the tricks on Halloween. I ate way to much candy as usual!
Don’t forget to “Fall back” 1 hour on November 7th this year!
My 1st born Brian E. Betts II “Deuce” will be 1 on Nov. 23! I can’t believe he is already 1! Time just fly’s to fast now!
As far as Real Estate, 634 homes Sold in the Salt Lake Valley in October. Rates are still low and so are home prices! Don’t forget you can still get the 1 Year Home Warranty for free from me is you buy or sell a home with me until the end of the year! You can start your search at www.bettshomes.com and search out ALL the active listings in Utah 24/7! Call me and we can go look at these homes in person!
Thank you for all your referrals of your friends and family that you trust me with. It’ is because of you that I am able to stay in business.
Remember to Use www.bettshomes.com to search out the active listings in Utah, or you can go to www.brianebetts.com for a Wealth of Information!
Food For Thought! When I came into the Real Estate World in the Beginning of 2006 there were almost 13,000 Realtors in Business in the Salt Lake Board of Realtors, now there are about 5,000! That should let you know what’s going on! To let you know as well, I’m not going anywhere! I will still be in business for the foreseeable future and will be able to service you for years to come.
All "Betts" on Brian! The Only Realtor you want!
Daily Quotes Nov. 4 2010!
Daily Quotes Nov. 4 2010!
"You can easily judge the character of others by how they treat those
who can do nothing for them or to them."
-- Malcolm Forbes, publisher
"All men who have achieved great things have been great dreamers."
-- Orison Swett Marden, writer
"Life is the sum of all your choices."
-- Albert Camus, Author
"I don't think that once you get to one level, you can relax. You've got to keep pushing. "
-- Larry Bird, basketball player
"Character is built daily by the way one thinks and acts - thought by
thought, action by action."
-- Helen Douglas, legislator
All "Betts" on Brian! The Only Realtor you want!
"You can easily judge the character of others by how they treat those
who can do nothing for them or to them."
-- Malcolm Forbes, publisher
"All men who have achieved great things have been great dreamers."
-- Orison Swett Marden, writer
"Life is the sum of all your choices."
-- Albert Camus, Author
"I don't think that once you get to one level, you can relax. You've got to keep pushing. "
-- Larry Bird, basketball player
"Character is built daily by the way one thinks and acts - thought by
thought, action by action."
-- Helen Douglas, legislator
All "Betts" on Brian! The Only Realtor you want!
Tuesday, November 2, 2010
For the week of November 1, 2010
For the week of November 1, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
Last week's big rush of housing news began on Monday with Existing Home Sales for September UP 10% from the month before. The annual rate hit 4.53 million. This was the second straight monthly gain after July's record low following the expiration of the tax credits. The national median price for existing homes is now at $171,700, down 2.4% from a year ago. Unsold inventory dropped 1.9% from the prior month to a 10.7 months' supply.
Tuesday, the S&P Case-Shiller home price indexes came in weaker for August, also seen as a result of the expiration of the tax credits. The 10-city index was down 0.1% for the month and the 20-city index off 0.2%. The Federal Housing Finance Agency's monthly house price index showed U.S. home prices falling 2.4% from August a year ago and 13.7% off their April 2007 peak. This index only tracks the prices of homes purchased with mortgages sold to or guaranteed by Fannie Mae or Freddie Mac.
Wednesday, New Home Sales for September were UP 6.6%, coming off record lows in July and August. The seasonally adjusted annual rate was 307,000, which is down 21.5% from a year ago. Good news came with the median new home price rising 3.3% from the year before, now at $223,800. The supply also came in at 8 months, with the actual number of unsold new homes the lowest it's been since 1968.
Review of Last Week
FLAT WEEK, UP MONTH... Investors on Wall Street kept things in check last week, leaving the Dow down by a whisker, the S&P 500 dead flat, and the tech-heavy Nasdaq up a modest 1.1%. Observers felt traders were awaiting this week's midterm elections and then Wednesday's Fed meeting statement regarding its next round of quantitative easing to spur growth. For the month, stocks did quite nicely with the S&P 500 up 3.7%; the Dow up 3%, its best October since 2006; and the Nasdaq up 5.9%, its best October in seven years.
In the week's economic news, a plus always seemed to come with a minus. For example, Consumer Confidence was up in October, but it still remains at historically low levels. This is occurring over a year since the economy transitioned from recession to recovery, at least as measured by overall growth. Durable Goods Orders were up 3.3% in September, but it all came from aircraft and parts. Exclude those, and orders were down 0.8% for the month.
It was somewhat encouraging to see weekly jobless claims dropping for the third straight week. This put them at their lowest level since July, but still in troublesome territory above 400,000. Finally, the advanced estimate of Q3 GDP came in at 2.0% annual growth. This was in line with expectations and shows the economy is in fact growing. But 2% is well below the growth rate economists say we need to make a significant dent in the unemployment rate.
For the week, the Dow was down 0.1%, to 11118.49; the S&P 500 ended flat, at 1183.26; but the Nasdaq was UP 1.1%, to 2507.41.
Bond prices dipped for a good part of the week, then rebounded, but not quite enough. The FNMA 30-year 4.0% bond we watch ended down 10 basis points for the week, closing at $103.02. National average mortgage rates for most mortgages remain at historically low levels. A cautionary note: the Mortgage Bankers Association predicts rates of 30-year fixed-rated mortgages will begin rising next year.
This Week’s Forecast
HEARING FROM THE FEDS, WAITING FOR THE JOBS... There are plenty of economic reports to ponder this week, but two items stand out. The Fed will be meeting on Wednesday and while no one expects the Fed Funds rate to go up, everyone will be looking for indications of when the Fed will start its second round of quantitative easing (QE-2) and how much money will get thrown into the system. The other point of interest will be the October jobs report on Friday. The forecast is for payrolls to be up by 45,000 jobs, which isn't very many, but at least it's a positive number, though the unemployment rate is predicted to hold at 9.6%.
Highlights of the remaining economic news include the PCE inflation reading expected to stay at 0.4%, and ISM predicted down a little, though still showing manufacturing expanding. The week ends with Friday's Pending Home Sales for September, forecast to be up 0.5%, a good thing but not quite as good as August's hike of over 4%.
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.
All "Betts" on Brian! The Only Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
Last week's big rush of housing news began on Monday with Existing Home Sales for September UP 10% from the month before. The annual rate hit 4.53 million. This was the second straight monthly gain after July's record low following the expiration of the tax credits. The national median price for existing homes is now at $171,700, down 2.4% from a year ago. Unsold inventory dropped 1.9% from the prior month to a 10.7 months' supply.
Tuesday, the S&P Case-Shiller home price indexes came in weaker for August, also seen as a result of the expiration of the tax credits. The 10-city index was down 0.1% for the month and the 20-city index off 0.2%. The Federal Housing Finance Agency's monthly house price index showed U.S. home prices falling 2.4% from August a year ago and 13.7% off their April 2007 peak. This index only tracks the prices of homes purchased with mortgages sold to or guaranteed by Fannie Mae or Freddie Mac.
Wednesday, New Home Sales for September were UP 6.6%, coming off record lows in July and August. The seasonally adjusted annual rate was 307,000, which is down 21.5% from a year ago. Good news came with the median new home price rising 3.3% from the year before, now at $223,800. The supply also came in at 8 months, with the actual number of unsold new homes the lowest it's been since 1968.
Review of Last Week
FLAT WEEK, UP MONTH... Investors on Wall Street kept things in check last week, leaving the Dow down by a whisker, the S&P 500 dead flat, and the tech-heavy Nasdaq up a modest 1.1%. Observers felt traders were awaiting this week's midterm elections and then Wednesday's Fed meeting statement regarding its next round of quantitative easing to spur growth. For the month, stocks did quite nicely with the S&P 500 up 3.7%; the Dow up 3%, its best October since 2006; and the Nasdaq up 5.9%, its best October in seven years.
In the week's economic news, a plus always seemed to come with a minus. For example, Consumer Confidence was up in October, but it still remains at historically low levels. This is occurring over a year since the economy transitioned from recession to recovery, at least as measured by overall growth. Durable Goods Orders were up 3.3% in September, but it all came from aircraft and parts. Exclude those, and orders were down 0.8% for the month.
It was somewhat encouraging to see weekly jobless claims dropping for the third straight week. This put them at their lowest level since July, but still in troublesome territory above 400,000. Finally, the advanced estimate of Q3 GDP came in at 2.0% annual growth. This was in line with expectations and shows the economy is in fact growing. But 2% is well below the growth rate economists say we need to make a significant dent in the unemployment rate.
For the week, the Dow was down 0.1%, to 11118.49; the S&P 500 ended flat, at 1183.26; but the Nasdaq was UP 1.1%, to 2507.41.
Bond prices dipped for a good part of the week, then rebounded, but not quite enough. The FNMA 30-year 4.0% bond we watch ended down 10 basis points for the week, closing at $103.02. National average mortgage rates for most mortgages remain at historically low levels. A cautionary note: the Mortgage Bankers Association predicts rates of 30-year fixed-rated mortgages will begin rising next year.
This Week’s Forecast
HEARING FROM THE FEDS, WAITING FOR THE JOBS... There are plenty of economic reports to ponder this week, but two items stand out. The Fed will be meeting on Wednesday and while no one expects the Fed Funds rate to go up, everyone will be looking for indications of when the Fed will start its second round of quantitative easing (QE-2) and how much money will get thrown into the system. The other point of interest will be the October jobs report on Friday. The forecast is for payrolls to be up by 45,000 jobs, which isn't very many, but at least it's a positive number, though the unemployment rate is predicted to hold at 9.6%.
Highlights of the remaining economic news include the PCE inflation reading expected to stay at 0.4%, and ISM predicted down a little, though still showing manufacturing expanding. The week ends with Friday's Pending Home Sales for September, forecast to be up 0.5%, a good thing but not quite as good as August's hike of over 4%.
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.
All "Betts" on Brian! The Only Realtor you want!
Last Week in the News November 1, 2010
Last Week in the News November 1, 2010
Existing home sales rose 10% in September to a seasonally adjusted annual rate of 4.53 million units from a revised 4.12 million units in August. The inventory of unsold homes on the market declined 1.9% to 4.04 million, a 10.7-month supply at the current sales pace, down from a 12-month supply in August.
The Standard & Poor's/Case-Shiller 20-city housing price index — on a seasonally adjusted basis — fell 0.3% in August after a 0.2% decrease in July. On a year-over-year basis, prices rose 1.7% compared with August 2009.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 22 rose 3.2%. Refinancing applications increased 3%. Purchase volume rose 3.9%.
Orders for durable goods — items expected to last three or more years — rose 3.3% in September after decreasing a revised 1% in August. Excluding volatile transportation-related goods, orders posted a monthly decrease of 0.8%.
New home sales rose 6.6% in September to a seasonally adjusted annual rate of 307,000 units from a rate of 288,000 units in August. Economists had expected a pace of 300,000 units.
The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 2% in the third quarter of 2010.
Initial claims for unemployment benefits fell by 21,000 to 434,000 for the week ending October 23. Continuing claims for the week ending October 16 fell by 122,000 to 4.35 million, the lowest level since the recovery began.
Upcoming on the economic calendar are reports on construction spending on November 1, factory orders on November 3 and pending home sales on November 5.
All "Betts" on Brian! The Only Realtor you want!
Existing home sales rose 10% in September to a seasonally adjusted annual rate of 4.53 million units from a revised 4.12 million units in August. The inventory of unsold homes on the market declined 1.9% to 4.04 million, a 10.7-month supply at the current sales pace, down from a 12-month supply in August.
The Standard & Poor's/Case-Shiller 20-city housing price index — on a seasonally adjusted basis — fell 0.3% in August after a 0.2% decrease in July. On a year-over-year basis, prices rose 1.7% compared with August 2009.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 22 rose 3.2%. Refinancing applications increased 3%. Purchase volume rose 3.9%.
Orders for durable goods — items expected to last three or more years — rose 3.3% in September after decreasing a revised 1% in August. Excluding volatile transportation-related goods, orders posted a monthly decrease of 0.8%.
New home sales rose 6.6% in September to a seasonally adjusted annual rate of 307,000 units from a rate of 288,000 units in August. Economists had expected a pace of 300,000 units.
The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 2% in the third quarter of 2010.
Initial claims for unemployment benefits fell by 21,000 to 434,000 for the week ending October 23. Continuing claims for the week ending October 16 fell by 122,000 to 4.35 million, the lowest level since the recovery began.
Upcoming on the economic calendar are reports on construction spending on November 1, factory orders on November 3 and pending home sales on November 5.
All "Betts" on Brian! The Only Realtor you want!
MBA Forecast for 2011 & 2012
MBA Forecast for 2011 & 2012
The Mortgage Bankers Association (MBA) expects to see mortgage originations fall from an estimated $1.4 trillion in 2010 to slightly under $1 trillion in 2011, due mostly to a decline in refinance originations. However, the MBA also expects to see an increase in purchase originations next year.
The economy will grow at a slow pace but will see no significant job growth until 2011. The increase in purchase originations will be driven by modest increases in home sales and stabilizing home prices.
In contrast, MBA refinance originations are expected to fall steadily as mortgage rates gradually increase throughout 2011 and 2012.
The MBA predicts that total existing home sales for 2010 will be around 8% lower than in 2009, despite a boost to sales in the first half of the year from the home-buyer tax credit. Existing-home sales are projected to increase modestly in 2011, increasing by a little less than 2%, before increasing by about 16% in 2012. New-home sales for 2010 will be down by about 13% relative to 2009, although the MBA expects a slow recovery in 2011, increasing around 20% from a low base and then increasing 40% in 2012.
"Economic growth in 2010 has been subdued and this trend will likely continue for most of 2011," says Jay Brinkmann, MBA's chief economist and senior vice president for research and economics. "Households remain cautious given the weak job market. On top of that, uncertainty regarding tax rates for next year, and the potential for tax withholding to increase at the beginning of the year, led us to forecast that consumer spending will remain weak, particularly in the first half of 2011."
The MBA also reports that fixed mortgage rates will average about 4.4% in the fourth quarter of 2010, increase to 5.1% by the end of 2011, and head toward 5.7% in 2012. Purchase originations for 2010 will be $480 billion - about 28% below the 2009 level of $665 billion - but the MBA expects them to rise about 30% in 2011, as existing home sales recover and home prices stabilize, and should rise again in 2012 to $877 billion.
Refinance originations will end 2010 at $921 billion - a decrease of 31% from $1.3 trillion in 2009, the MBA adds, while refinance activity will decrease by 60% in 2011 to about $370 billion as mortgage rates increase and the pool of eligible borrowers shrinks, and will fall further to $310 billion in 2012.
All "Betts" on Brian! The Only Realtor you want!
The Mortgage Bankers Association (MBA) expects to see mortgage originations fall from an estimated $1.4 trillion in 2010 to slightly under $1 trillion in 2011, due mostly to a decline in refinance originations. However, the MBA also expects to see an increase in purchase originations next year.
The economy will grow at a slow pace but will see no significant job growth until 2011. The increase in purchase originations will be driven by modest increases in home sales and stabilizing home prices.
In contrast, MBA refinance originations are expected to fall steadily as mortgage rates gradually increase throughout 2011 and 2012.
The MBA predicts that total existing home sales for 2010 will be around 8% lower than in 2009, despite a boost to sales in the first half of the year from the home-buyer tax credit. Existing-home sales are projected to increase modestly in 2011, increasing by a little less than 2%, before increasing by about 16% in 2012. New-home sales for 2010 will be down by about 13% relative to 2009, although the MBA expects a slow recovery in 2011, increasing around 20% from a low base and then increasing 40% in 2012.
"Economic growth in 2010 has been subdued and this trend will likely continue for most of 2011," says Jay Brinkmann, MBA's chief economist and senior vice president for research and economics. "Households remain cautious given the weak job market. On top of that, uncertainty regarding tax rates for next year, and the potential for tax withholding to increase at the beginning of the year, led us to forecast that consumer spending will remain weak, particularly in the first half of 2011."
The MBA also reports that fixed mortgage rates will average about 4.4% in the fourth quarter of 2010, increase to 5.1% by the end of 2011, and head toward 5.7% in 2012. Purchase originations for 2010 will be $480 billion - about 28% below the 2009 level of $665 billion - but the MBA expects them to rise about 30% in 2011, as existing home sales recover and home prices stabilize, and should rise again in 2012 to $877 billion.
Refinance originations will end 2010 at $921 billion - a decrease of 31% from $1.3 trillion in 2009, the MBA adds, while refinance activity will decrease by 60% in 2011 to about $370 billion as mortgage rates increase and the pool of eligible borrowers shrinks, and will fall further to $310 billion in 2012.
All "Betts" on Brian! The Only Realtor you want!
Doing the Math Shows Homes are Affordable
Doing the Math Shows Homes are Affordable
Housing economist, Karl Case, urges American’s to “do the math” to see how affordable homes are now. Home prices and mortgage rates both have fallen in recent years, he explains.
Combining s smaller home with a lower interest rate produces big savings. Case estimates that a buyer today could have a payment which is almost half what someone purchasing the same home four years ago would owe.
“Down payments are smaller when your purchase price has been reduced,” adds Case. “Buying a home now can make a lot of sense. Housing has perhaps never been a better bargain.”
Also, since mortgage rates have hit new all-time lows this year, existing home owners are refinancing and saving each month. Reducing monthly housing costs has the same effect as earning larger paycheck.
All "Betts" on Brian! The Only Realtor you want!
Housing economist, Karl Case, urges American’s to “do the math” to see how affordable homes are now. Home prices and mortgage rates both have fallen in recent years, he explains.
Combining s smaller home with a lower interest rate produces big savings. Case estimates that a buyer today could have a payment which is almost half what someone purchasing the same home four years ago would owe.
“Down payments are smaller when your purchase price has been reduced,” adds Case. “Buying a home now can make a lot of sense. Housing has perhaps never been a better bargain.”
Also, since mortgage rates have hit new all-time lows this year, existing home owners are refinancing and saving each month. Reducing monthly housing costs has the same effect as earning larger paycheck.
All "Betts" on Brian! The Only Realtor you want!
For the week of October 25, 2010
For the week of October 25, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
Last week saw September Housing Starts UP 0.3% to an annual rate of 610,000 units, well ahead of the expected 580,000 unit pace. Even better, starts are UP 4.1% over a year ago. Interestingly, the September gain was totally driven by a healthy 4.4% rise in single family starts, while multi-family starts dropped 9.7%. But multi-family starts are volatile month to month, and are actually up 100.0% compared to a year ago, while single family starts are off 10.8% during the same time frame.
Builders remain cautious, as new Building Permits for September dropped 5.6%, to a 539,000 annual rate. This number of course reflects plans for builder activity a few months out. Nonetheless, the National Association of Home Builders (NAHB) reported builder confidence rose in October for the first time in five months. This brings it to a level not seen since June. The NAHB's chief economist feels the new home market is now past the quiet period that followed the expiration of the home buyer tax credits and the summer slowdown in the economy.
Review of Last Week
UP WITH VOLATILITY... It was not a quiet week on Wall Street, with a big move down in stock prices, which then came back up. But the markets did close up four out of the five days, so the week ended with all three major indexes ahead once again. Investors focused on a pile of pretty good corporate earnings results, but there were some less than stellar economic reports to get through too.
Industrial Production was off 0.2% in September, below estimates, though production is up at a 4.9% annual rate for the last six months. Capacity Utilization also dipped down to 74.7% for September, although it's still 6.5 percentage points above the low it hit back in June 2009. Countering these figures, the Philadelphia Fed Index for manufacturing in that region was back into positive territory. Leading Economic Indicators were up 0.3% for the month and weekly jobless claims fell a bit, though they're still well above 400,000.
The good news came in corporate earnings, with more than 100 S&P 500 companies reporting including 12 of the Dow components. The financials did well, with 21 out of 27 reporting better than expected earnings per share. In the tech sector, Apple and IBM also did nicely in the earnings department. Coca-Cola, Caterpillar, and airlines also showed gains. Even though the recovery has slowed, the vast majority of public companies continue to make good profit numbers.
For the week, the Dow ended UP 0.6%, to 11132.56; the S&P 500 was also UP 0.6%, to 1183.08; and the Nasdaq was UP 0.4%, to 2479.39.
Trading ranges in the bond market didn't go too wide, as investors stayed interested enough to keep prices up. The FNMA 30-year 4.0% bond we watch ended UP 12 basis points for the week, closing at $103.12. Freddie Mac's weekly survey showed national average mortgage rates for most mortgages remaining at historically low levels.
This Week’s Forecast
NOTHING SCARY... As we head into Halloween this week, it looks like nothing too frightening will be reported on the economic front. Monday's Existing Home Sales are projected up for September, just like September New Home Sales are expected to report come Wednesday. Friday, we get the Advanced Q3 GDP numbers, which economists are forecasting to be modestly positive.
Consumer Confidence on Tuesday and Michigan Consumer Sentiment on Friday are both projected to be up a tiny bit. Friday's Employment Cost Index should continue with modest growth, while the Chicago PMI is predicted to show a small decline in manufacturing in that region of the country.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months As economists debate how big the second round of quantitative easing (QE-2) will be, they're all in agreement that the Fed Funds Rate will stay at its rock bottom level for quite a bit more time. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
Last week saw September Housing Starts UP 0.3% to an annual rate of 610,000 units, well ahead of the expected 580,000 unit pace. Even better, starts are UP 4.1% over a year ago. Interestingly, the September gain was totally driven by a healthy 4.4% rise in single family starts, while multi-family starts dropped 9.7%. But multi-family starts are volatile month to month, and are actually up 100.0% compared to a year ago, while single family starts are off 10.8% during the same time frame.
Builders remain cautious, as new Building Permits for September dropped 5.6%, to a 539,000 annual rate. This number of course reflects plans for builder activity a few months out. Nonetheless, the National Association of Home Builders (NAHB) reported builder confidence rose in October for the first time in five months. This brings it to a level not seen since June. The NAHB's chief economist feels the new home market is now past the quiet period that followed the expiration of the home buyer tax credits and the summer slowdown in the economy.
Review of Last Week
UP WITH VOLATILITY... It was not a quiet week on Wall Street, with a big move down in stock prices, which then came back up. But the markets did close up four out of the five days, so the week ended with all three major indexes ahead once again. Investors focused on a pile of pretty good corporate earnings results, but there were some less than stellar economic reports to get through too.
Industrial Production was off 0.2% in September, below estimates, though production is up at a 4.9% annual rate for the last six months. Capacity Utilization also dipped down to 74.7% for September, although it's still 6.5 percentage points above the low it hit back in June 2009. Countering these figures, the Philadelphia Fed Index for manufacturing in that region was back into positive territory. Leading Economic Indicators were up 0.3% for the month and weekly jobless claims fell a bit, though they're still well above 400,000.
The good news came in corporate earnings, with more than 100 S&P 500 companies reporting including 12 of the Dow components. The financials did well, with 21 out of 27 reporting better than expected earnings per share. In the tech sector, Apple and IBM also did nicely in the earnings department. Coca-Cola, Caterpillar, and airlines also showed gains. Even though the recovery has slowed, the vast majority of public companies continue to make good profit numbers.
For the week, the Dow ended UP 0.6%, to 11132.56; the S&P 500 was also UP 0.6%, to 1183.08; and the Nasdaq was UP 0.4%, to 2479.39.
Trading ranges in the bond market didn't go too wide, as investors stayed interested enough to keep prices up. The FNMA 30-year 4.0% bond we watch ended UP 12 basis points for the week, closing at $103.12. Freddie Mac's weekly survey showed national average mortgage rates for most mortgages remaining at historically low levels.
This Week’s Forecast
NOTHING SCARY... As we head into Halloween this week, it looks like nothing too frightening will be reported on the economic front. Monday's Existing Home Sales are projected up for September, just like September New Home Sales are expected to report come Wednesday. Friday, we get the Advanced Q3 GDP numbers, which economists are forecasting to be modestly positive.
Consumer Confidence on Tuesday and Michigan Consumer Sentiment on Friday are both projected to be up a tiny bit. Friday's Employment Cost Index should continue with modest growth, while the Chicago PMI is predicted to show a small decline in manufacturing in that region of the country.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months As economists debate how big the second round of quantitative easing (QE-2) will be, they're all in agreement that the Fed Funds Rate will stay at its rock bottom level for quite a bit more time. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
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Last Week in the News October 25, 2010
Last Week in the News October 25, 2010
Industrial production at the nation's factories, mines and utilities fell 0.2% in September, following a 0.2% increase in August. Economists had anticipated a gain of 0.2%. Capacity utilization fell to 74.7% in September from a revised 74.8% in August.
The National Association of Home Builders/Wells Fargo housing market index rose three points in October to 16. Economists had anticipated a reading of 14. An index reading below 50 indicates negative sentiment about the housing market.
According to the ICSC-Goldman Sachs index, retail sales fell 0.7% for the week ending October 16. On a year-over-year basis, retailers saw sales increase 1.7%, the weakest reading since May.
The combined construction of new single-family homes and apartments in September rose 0.3% to a seasonally adjusted annual rate of 610,000 units. Single-family starts rose 4.4%. Multifamily starts dropped 9.7%. Applications for new building permits, seen as an indicator of future activity, fell 5.6% to an annual rate of 539,000 units.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 15 fell 10.5%. Refinancing applications decreased 11.2%. Purchase volume fell 6.7%.
The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.3% in September after a downwardly revised 0.1% increase in August.
Initial claims for unemployment benefits fell by 23,000 to 452,000 for the week ending October 16. Continuing claims for the week ending October 9 fell by 9,000 to 4.39 million, the lowest level since the recovery began.
Upcoming on the economic calendar are reports on existing home sales on October 25, the housing price index on October 26 and new home sales on October 27.
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Industrial production at the nation's factories, mines and utilities fell 0.2% in September, following a 0.2% increase in August. Economists had anticipated a gain of 0.2%. Capacity utilization fell to 74.7% in September from a revised 74.8% in August.
The National Association of Home Builders/Wells Fargo housing market index rose three points in October to 16. Economists had anticipated a reading of 14. An index reading below 50 indicates negative sentiment about the housing market.
According to the ICSC-Goldman Sachs index, retail sales fell 0.7% for the week ending October 16. On a year-over-year basis, retailers saw sales increase 1.7%, the weakest reading since May.
The combined construction of new single-family homes and apartments in September rose 0.3% to a seasonally adjusted annual rate of 610,000 units. Single-family starts rose 4.4%. Multifamily starts dropped 9.7%. Applications for new building permits, seen as an indicator of future activity, fell 5.6% to an annual rate of 539,000 units.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 15 fell 10.5%. Refinancing applications decreased 11.2%. Purchase volume fell 6.7%.
The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.3% in September after a downwardly revised 0.1% increase in August.
Initial claims for unemployment benefits fell by 23,000 to 452,000 for the week ending October 16. Continuing claims for the week ending October 9 fell by 9,000 to 4.39 million, the lowest level since the recovery began.
Upcoming on the economic calendar are reports on existing home sales on October 25, the housing price index on October 26 and new home sales on October 27.
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How Much Equity Do I Have?
How Much Equity Do Local Homeowners Have?
Homeowner equity for median homes in 154 metro areas varies considerably depending on location, according to a recent NAR report. An analysis of these median homes in 154 metro areas over a five-year period (2004 – 2009) reveals:
87 metro areas experienced price appreciation.
In 13 metro areas, a median buyer with a 30-year fixed-rate mortgage accumulated an average of more than $50,000 in equity.
67 metro areas experienced price depreciation.
In 11 metro areas — all located in California, Nevada and Florida — a median buyer with a 30-year fixed-rate mortgage was underwater more than $50,000.
Over the last 10 years, the price and equity picture is much brighter. Median buyers in the top 29 metro areas could have accumulated at least $100,000 or more in equity. Interestingly, four of the six California cities that have had the biggest equity losses over the last five years are among the biggest gainers over a 10-year horizon. Only 12 of 154 metro areas experienced price depreciation over this 10-year period, and only seven areas — concentrated in Ohio and Michigan — saw a decline substantial enough to leave a median buyer underwater.
Over an even longer term, we see positive equity build-up in all areas. For example, in 75 of the 154 areas, a buyer who bought at the median price 20 years ago would have over $100,000 in equity in their home. In an additional 67 areas, the buyer would have more than $50,000 in equity. Take a look at overall performance in your metro area by visiting NAR's Metro-Area Housing Equity Reports page.
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Homeowner equity for median homes in 154 metro areas varies considerably depending on location, according to a recent NAR report. An analysis of these median homes in 154 metro areas over a five-year period (2004 – 2009) reveals:
87 metro areas experienced price appreciation.
In 13 metro areas, a median buyer with a 30-year fixed-rate mortgage accumulated an average of more than $50,000 in equity.
67 metro areas experienced price depreciation.
In 11 metro areas — all located in California, Nevada and Florida — a median buyer with a 30-year fixed-rate mortgage was underwater more than $50,000.
Over the last 10 years, the price and equity picture is much brighter. Median buyers in the top 29 metro areas could have accumulated at least $100,000 or more in equity. Interestingly, four of the six California cities that have had the biggest equity losses over the last five years are among the biggest gainers over a 10-year horizon. Only 12 of 154 metro areas experienced price depreciation over this 10-year period, and only seven areas — concentrated in Ohio and Michigan — saw a decline substantial enough to leave a median buyer underwater.
Over an even longer term, we see positive equity build-up in all areas. For example, in 75 of the 154 areas, a buyer who bought at the median price 20 years ago would have over $100,000 in equity in their home. In an additional 67 areas, the buyer would have more than $50,000 in equity. Take a look at overall performance in your metro area by visiting NAR's Metro-Area Housing Equity Reports page.
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For the week of October 18, 2010
For the week of October 18, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
Mortgage rates, already at historically low levels, have been sliding even further the last few weeks. Nonetheless, the Mortgage Bankers Association's Weekly Mortgage Applications Survey showed purchase applications down a bit from the week before.
But happily, applications for conventional purchase loans are actually at their highest level since the start of May, following the home buyer tax credit expiration on April 30. Of course, with today's super low rates, demand for refinancings are also up -- a healthy 24% over the week before, with refinance application volumes now close to their highest level all year.
Review of Last Week
ANOTHER WEEK UP... Yup, the stock market maintained its steady cruise upward, begun in September and continuing now for the first two weeks in October. Investors on Wall Street seem to be staying in positive, if cautious mode. The economy sends mixed signals, but stocks push relentlessly upward. All three major market indexes were up for the week, with the tech-heavy Nasdaq leading the pack, delivering a very strong 2.8% gain, helped by good Q3 numbers from Intel and Google!
On the negative side, the trade deficit expanded by $3.8 billion in August to $46.3 billion, which was larger than anticipated. New claims for unemployment insurance also increased by 13,000. Continuing claims, however, dropped to their lowest level in almost two years, but it's unfortunately still a big number, at 4.399 million. Wholesale inflation inched ahead a bit, with the Producer Price Index up 0.4% in September and up 4.0% compared to a year ago. This, of course, isn't great, although worries about deflation should be less in the headlines.
For good news, we saw consumer inflation stay well under control, with consumer prices edging up just 0.1% in September. This was less than expected and up only 1.1%versus a year ago, well within the Fed's guidelines. Core consumer prices, which leave out food and energy, were unchanged for the month. These steady prices may be why retail sales were up 0.6% for the month, better than expected and giving evidence the consumer is trying to help the recovery.
For the week, the Dow ended UP 0.5%, to 11062.78; the S&P 500 was also UP 0.9%, to 1176.19; and the Nasdaq was UP 2.8%, to 2468.77.
It was a volatile week in the bond market, but prices held up well enough in certain areas. The FNMA 30-year 4.0% bond we watch ended down just 6 basis points for the week, closing at $103.00. Freddie Mac's weekly survey showed national average mortgage rates for most mortgages trickling lower for another week, staying at historically low levels.
This Week’s Forecast
BUILDING PRODUCTS, BUILDING HOMES...This week's economic reports begin and end with manufacturing readings, which are expected to still show a slow recovery. Monday's Industrial Production and Capacity Utilization are expected to stay flat for September. Thursday we get the Philadelphia Fed Index of the state of manufacturing in that region, forecast to nudge up into positive territory.
In addition to building products, we'll also get a look at building homes. Tuesday's September Housing Starts should be down a bit from August and still hovering at a modest rate below 600,000. September Building Permits, showing how builders are feeling further out, are expected to be slightly under the Housing Starts number, indicating still cautious attitudes in that industry.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months With Fed chairman Ben Bernanke last Friday all but promising a second round of quantitative easing (QE-2), economists do not expect the Fed Funds Rate to move off its rock bottom level for quite some time. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
Mortgage rates, already at historically low levels, have been sliding even further the last few weeks. Nonetheless, the Mortgage Bankers Association's Weekly Mortgage Applications Survey showed purchase applications down a bit from the week before.
But happily, applications for conventional purchase loans are actually at their highest level since the start of May, following the home buyer tax credit expiration on April 30. Of course, with today's super low rates, demand for refinancings are also up -- a healthy 24% over the week before, with refinance application volumes now close to their highest level all year.
Review of Last Week
ANOTHER WEEK UP... Yup, the stock market maintained its steady cruise upward, begun in September and continuing now for the first two weeks in October. Investors on Wall Street seem to be staying in positive, if cautious mode. The economy sends mixed signals, but stocks push relentlessly upward. All three major market indexes were up for the week, with the tech-heavy Nasdaq leading the pack, delivering a very strong 2.8% gain, helped by good Q3 numbers from Intel and Google!
On the negative side, the trade deficit expanded by $3.8 billion in August to $46.3 billion, which was larger than anticipated. New claims for unemployment insurance also increased by 13,000. Continuing claims, however, dropped to their lowest level in almost two years, but it's unfortunately still a big number, at 4.399 million. Wholesale inflation inched ahead a bit, with the Producer Price Index up 0.4% in September and up 4.0% compared to a year ago. This, of course, isn't great, although worries about deflation should be less in the headlines.
For good news, we saw consumer inflation stay well under control, with consumer prices edging up just 0.1% in September. This was less than expected and up only 1.1%versus a year ago, well within the Fed's guidelines. Core consumer prices, which leave out food and energy, were unchanged for the month. These steady prices may be why retail sales were up 0.6% for the month, better than expected and giving evidence the consumer is trying to help the recovery.
For the week, the Dow ended UP 0.5%, to 11062.78; the S&P 500 was also UP 0.9%, to 1176.19; and the Nasdaq was UP 2.8%, to 2468.77.
It was a volatile week in the bond market, but prices held up well enough in certain areas. The FNMA 30-year 4.0% bond we watch ended down just 6 basis points for the week, closing at $103.00. Freddie Mac's weekly survey showed national average mortgage rates for most mortgages trickling lower for another week, staying at historically low levels.
This Week’s Forecast
BUILDING PRODUCTS, BUILDING HOMES...This week's economic reports begin and end with manufacturing readings, which are expected to still show a slow recovery. Monday's Industrial Production and Capacity Utilization are expected to stay flat for September. Thursday we get the Philadelphia Fed Index of the state of manufacturing in that region, forecast to nudge up into positive territory.
In addition to building products, we'll also get a look at building homes. Tuesday's September Housing Starts should be down a bit from August and still hovering at a modest rate below 600,000. September Building Permits, showing how builders are feeling further out, are expected to be slightly under the Housing Starts number, indicating still cautious attitudes in that industry.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months With Fed chairman Ben Bernanke last Friday all but promising a second round of quantitative easing (QE-2), economists do not expect the Fed Funds Rate to move off its rock bottom level for quite some time. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
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Last Week in the News October 18, 2010
Last Week in the News October 18, 2010
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 8 rose 14.6%. Refinancing applications jumped 21%. Purchase volume fell 8.5%.
The trade deficit increased 8.8% to $46.3 billion in August. Economists had expected the trade deficit to rise to $44.3 billion. Exports rose 0.2% to $153.9 billion. Imports increased 2.1% to $200.2 billion.
The producer price index, which tracks wholesale price inflation, rose 0.4% in September, matching a 0.4% increase in August. Core prices — excluding food and fuel — rose 0.1%, also matching a 0.1% increase in August. For the year, seasonally adjusted wholesale prices are up 4%.
Retail sales rose 0.6% in September after an upwardly revised 0.7% increase in August. Economists had anticipated retail sales to rise 0.5% in September.
Total business inventories rose 0.6% in August, following a revised 1.1% increase in July. Total business sales rose 0.1% in August after a 0.8% increase in July.
Consumer prices rose a seasonally adjusted 0.1% in September, following a 0.3% increase in August. For the year, seasonally adjusted consumer prices are up 1.1%.
The Reuters/University of Michigan consumer sentiment index for October's preliminary reading fell to 67.9 from 68.2 in September.
Initial claims for unemployment benefits rose by 13,000 to 462,000 for the week ending October 9. Continuing claims for the week ending October 2 fell by 112,000 to 4.39 million, the lowest level since November 2008.
Upcoming on the economic calendar are reports on the housing market index on October 18, housing starts on October 19 and the index of leading economic indicators on October 21.
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The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 8 rose 14.6%. Refinancing applications jumped 21%. Purchase volume fell 8.5%.
The trade deficit increased 8.8% to $46.3 billion in August. Economists had expected the trade deficit to rise to $44.3 billion. Exports rose 0.2% to $153.9 billion. Imports increased 2.1% to $200.2 billion.
The producer price index, which tracks wholesale price inflation, rose 0.4% in September, matching a 0.4% increase in August. Core prices — excluding food and fuel — rose 0.1%, also matching a 0.1% increase in August. For the year, seasonally adjusted wholesale prices are up 4%.
Retail sales rose 0.6% in September after an upwardly revised 0.7% increase in August. Economists had anticipated retail sales to rise 0.5% in September.
Total business inventories rose 0.6% in August, following a revised 1.1% increase in July. Total business sales rose 0.1% in August after a 0.8% increase in July.
Consumer prices rose a seasonally adjusted 0.1% in September, following a 0.3% increase in August. For the year, seasonally adjusted consumer prices are up 1.1%.
The Reuters/University of Michigan consumer sentiment index for October's preliminary reading fell to 67.9 from 68.2 in September.
Initial claims for unemployment benefits rose by 13,000 to 462,000 for the week ending October 9. Continuing claims for the week ending October 2 fell by 112,000 to 4.39 million, the lowest level since November 2008.
Upcoming on the economic calendar are reports on the housing market index on October 18, housing starts on October 19 and the index of leading economic indicators on October 21.
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Daily Quotes!
Daily Quotes Nov. 2 2010!
"A good goal is like a strenuous exercise - it makes you stretch."
-- Mary Kay Ash, cosmetics pioneer
"Only when we are no longer afraid do we begin to live."
-- Dorothy Thompson, journalist
"Someone has well said, "Success is a journey, not a destination."
Happiness is to be found along the way, not at the end of the road."
-- Robert Updegraff, business counselor
"If life was so easy that you could just go buy success, there would be
a lot more successful companies in the world. Successful enterprises are
built from the ground up."
-- Lou Gerstner, IBM CEO
"The real winners in life are the people who look at every situation
with an expectation that they can make it work or make it better."
-- Barbara Pletcher, author
All "Betts" on Brian! The Only Realtor you want!
"A good goal is like a strenuous exercise - it makes you stretch."
-- Mary Kay Ash, cosmetics pioneer
"Only when we are no longer afraid do we begin to live."
-- Dorothy Thompson, journalist
"Someone has well said, "Success is a journey, not a destination."
Happiness is to be found along the way, not at the end of the road."
-- Robert Updegraff, business counselor
"If life was so easy that you could just go buy success, there would be
a lot more successful companies in the world. Successful enterprises are
built from the ground up."
-- Lou Gerstner, IBM CEO
"The real winners in life are the people who look at every situation
with an expectation that they can make it work or make it better."
-- Barbara Pletcher, author
All "Betts" on Brian! The Only Realtor you want!
Monday, November 1, 2010
Daily Quotes!
Daily Quotes Nov. 1 2010!
"Our greatest enemies, the ones we must fight most often, are within."
-- Thomas Paine, statesman
"Everybody talks bout wanting to change things and help and fix, but
ultimately all you can do is fix yourself. And that's a lot. Because if
you can fix yorself, it has a ripple effect."
-- Rob Reiner, director
"Confidence... thrives only on honesty, on honor, on the sacredness of
obligations, on faithful protection and on unselfish performance.
Without them, it cannot live."
-- Franklin Roosevelt, 32nd U.S. president
"One often hears the remark "He talks too much." But when did anyone
last hear the criticism "He listens too much?""
-- Norman Augustine, aerospace executive
"The secret of business, especially these days, is to focus relentlessly
on your unfair advantage - the thing you do that others don't."
-- John Rollwagen, executive
All "Betts" on Brian! The Only Relator you want!
"Our greatest enemies, the ones we must fight most often, are within."
-- Thomas Paine, statesman
"Everybody talks bout wanting to change things and help and fix, but
ultimately all you can do is fix yourself. And that's a lot. Because if
you can fix yorself, it has a ripple effect."
-- Rob Reiner, director
"Confidence... thrives only on honesty, on honor, on the sacredness of
obligations, on faithful protection and on unselfish performance.
Without them, it cannot live."
-- Franklin Roosevelt, 32nd U.S. president
"One often hears the remark "He talks too much." But when did anyone
last hear the criticism "He listens too much?""
-- Norman Augustine, aerospace executive
"The secret of business, especially these days, is to focus relentlessly
on your unfair advantage - the thing you do that others don't."
-- John Rollwagen, executive
All "Betts" on Brian! The Only Relator you want!
Friday, October 29, 2010
History of the Jack-O’-Lantern
History of the Jack-O’-Lantern
Halloween is partially based on an ancient Celtic holiday known as Samhain (“s-ow-wun”) which roughly translates to “summer’s end.” The Celts considered it the most magical night of the year, referring to it as the Last Harvest.
On this night, jack-o’-lanterns carved from turnips or gourds were filled with burning lumps of coal and placed on porches to welcome deceased loved ones and to ward off spirits. When Irish settlers arrived in America they found the pumpkin to be easier to carve, and since the late 1800s Halloween has been celebrated with jack-o’-lanterns carved from the native American pumpkin.
HAPPY HALLOWEEN!!!
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Halloween is partially based on an ancient Celtic holiday known as Samhain (“s-ow-wun”) which roughly translates to “summer’s end.” The Celts considered it the most magical night of the year, referring to it as the Last Harvest.
On this night, jack-o’-lanterns carved from turnips or gourds were filled with burning lumps of coal and placed on porches to welcome deceased loved ones and to ward off spirits. When Irish settlers arrived in America they found the pumpkin to be easier to carve, and since the late 1800s Halloween has been celebrated with jack-o’-lanterns carved from the native American pumpkin.
HAPPY HALLOWEEN!!!
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Daily Quotes!
Daily Quotes Oct. 29 2010!
"Luck is not chance, it's toil. Fortune's expensive smile is earned."
-- Emily Dickinson, poet
"If you believe you can, you probably can. If you believe you won't, you
most assuredly won't. Belief is the ignition switch that gets you off
the launching pad."
-- Denis Waitley, motivational speaker
"As for worrying about what other people might think - forget it. They
aren't concerned about you. They're too busy worrying about what you and
other people think of them."
-- Michael le Boeuf
"You just don't luck into things as much as you'd like to think you do.
You build step by step, whether it's friendships or opportunities."
-- Barbara Bush, first lady
"Never turn down a job because you think it's too small. You don't know
where it can lead. "
-- Julia Morgan, architect
All "Betts" on Brian! The Only Realtor you want!
"Luck is not chance, it's toil. Fortune's expensive smile is earned."
-- Emily Dickinson, poet
"If you believe you can, you probably can. If you believe you won't, you
most assuredly won't. Belief is the ignition switch that gets you off
the launching pad."
-- Denis Waitley, motivational speaker
"As for worrying about what other people might think - forget it. They
aren't concerned about you. They're too busy worrying about what you and
other people think of them."
-- Michael le Boeuf
"You just don't luck into things as much as you'd like to think you do.
You build step by step, whether it's friendships or opportunities."
-- Barbara Bush, first lady
"Never turn down a job because you think it's too small. You don't know
where it can lead. "
-- Julia Morgan, architect
All "Betts" on Brian! The Only Realtor you want!
Wednesday, October 27, 2010
Daily Quotes!
Daily Quotes Oct. 27 2010!
"The future has several names. For the weak, it is the impossible. For the fainthearted, it is the unkown. For the thoughtful and valiant, it is the ideal."
-- Victor Hugo, writer
"One day Alice came to a fork in the road and saw a Cheshire cat in a tree. "Which road do I take?" she asked. "Where do you want to go?" was his response. "I don't know," Alice answered. "Then," said the cat, "it doesn't matter.""
-- Lewis Carroll, author
"Don't be content with doing only your duty. Do more than your duty. It's the horse that finishes a neck ahead that wins the race."
-- Andrew Carnegie, industrialist
"The superior man blames himself. The inferior man blames others."
-- Don Shula, football coach
"The most important thing is your self-respect. It doesn't matter what people think about you, but what you think about yourself."
-- Robert H. Abplanalp
All "Betts" on Brian! The Only Realtor you want!
"The future has several names. For the weak, it is the impossible. For the fainthearted, it is the unkown. For the thoughtful and valiant, it is the ideal."
-- Victor Hugo, writer
"One day Alice came to a fork in the road and saw a Cheshire cat in a tree. "Which road do I take?" she asked. "Where do you want to go?" was his response. "I don't know," Alice answered. "Then," said the cat, "it doesn't matter.""
-- Lewis Carroll, author
"Don't be content with doing only your duty. Do more than your duty. It's the horse that finishes a neck ahead that wins the race."
-- Andrew Carnegie, industrialist
"The superior man blames himself. The inferior man blames others."
-- Don Shula, football coach
"The most important thing is your self-respect. It doesn't matter what people think about you, but what you think about yourself."
-- Robert H. Abplanalp
All "Betts" on Brian! The Only Realtor you want!
Monday, October 25, 2010
Daily Quotes!
Daily Quotes Oct. 25 2010!
"If you want to achieve your dreams, you must follow them, and the best
way to follow them is not to think about wanting to be very rich, but to
think about doing something that you really want to do."
-- Jackie Collins, author
"If you keep working at it, in the last analysis, you win. They've got
to kill us a hundred times. All we have to do is kill them once."
-- Frederick Smith, Federal Express founder
"I might have been born in a hovel, but I am determined to travel with
the wind and the stars."
-- Jacqueline Cochran, aviator
"What holds so many employees back is an unwillingness to pay the price,
to make the effort to sacrifice their ease and comfort."
-- Orison Marden, writer
"Putting off an easy thing makes it hard. Putting off a hard thing makes
it impossible."
-- Charles Wilson, legislator
All "Betts" on Brian! The Only Realtor you want!
"If you want to achieve your dreams, you must follow them, and the best
way to follow them is not to think about wanting to be very rich, but to
think about doing something that you really want to do."
-- Jackie Collins, author
"If you keep working at it, in the last analysis, you win. They've got
to kill us a hundred times. All we have to do is kill them once."
-- Frederick Smith, Federal Express founder
"I might have been born in a hovel, but I am determined to travel with
the wind and the stars."
-- Jacqueline Cochran, aviator
"What holds so many employees back is an unwillingness to pay the price,
to make the effort to sacrifice their ease and comfort."
-- Orison Marden, writer
"Putting off an easy thing makes it hard. Putting off a hard thing makes
it impossible."
-- Charles Wilson, legislator
All "Betts" on Brian! The Only Realtor you want!
Thursday, October 21, 2010
Daily Quotes!
Daily Quotes Oct. 21 2010!
"As a rule, men worry more about what they can't see than about what they can."
-- Julius Caesar, Roman leader
"If you don't like something, change it. If you can't change it, change your attitude. Don't complain."
-- Maya Angelou, poet
"Even when I lost, I learned what my weaknesses were and I went out the next day to turn those weaknesses into strengths."
-- Larry Bird, basketball player
"When I thought I couldn't go on, I forced myself to keep going. My success is based on persistence, not luck. "
-- Estee Lauder, entrepreneur
"If you're not making mistakes, your'e not trying hard enough."
-- Vince Lombardi, football coach
All "Betts" on Brian! The Only Realtor you want!
"As a rule, men worry more about what they can't see than about what they can."
-- Julius Caesar, Roman leader
"If you don't like something, change it. If you can't change it, change your attitude. Don't complain."
-- Maya Angelou, poet
"Even when I lost, I learned what my weaknesses were and I went out the next day to turn those weaknesses into strengths."
-- Larry Bird, basketball player
"When I thought I couldn't go on, I forced myself to keep going. My success is based on persistence, not luck. "
-- Estee Lauder, entrepreneur
"If you're not making mistakes, your'e not trying hard enough."
-- Vince Lombardi, football coach
All "Betts" on Brian! The Only Realtor you want!
Tuesday, October 19, 2010
Daily Quotes!
Daily Quotes Oct. 19 2010!
"I never won anything without hard labor and the exercise of my best judgment."
-- Theodore Roosevelt, 26th U.S. president
"The most important thing about goals is... having one."
-- Geoffry F. Abert
"I always tried to turn every disaster into an opportunity."
-- John D. Rockefeller, Industrialist
"When you dare to dream, dare to follow that dream; dare to suffer
through the pain, sacrifice, self-doubts and friction from the world."
-- Laura Schlessinger, talk-show host
"All growth depends upon activity. There is no development physically or
intellectually without effort, and effort means work."
-- Calvin Coolidge, 30th U.S. president
All "Betts" on Brian! The Only Realtor you want!
"I never won anything without hard labor and the exercise of my best judgment."
-- Theodore Roosevelt, 26th U.S. president
"The most important thing about goals is... having one."
-- Geoffry F. Abert
"I always tried to turn every disaster into an opportunity."
-- John D. Rockefeller, Industrialist
"When you dare to dream, dare to follow that dream; dare to suffer
through the pain, sacrifice, self-doubts and friction from the world."
-- Laura Schlessinger, talk-show host
"All growth depends upon activity. There is no development physically or
intellectually without effort, and effort means work."
-- Calvin Coolidge, 30th U.S. president
All "Betts" on Brian! The Only Realtor you want!
Monday, October 18, 2010
Daily Quotes!
Daily Quotes Oct. 18 2010!
"The superior man makes the difficulty to be overcome his first
interest; success comes only later."
-- William Jennings Bryan, attorney
"I don't know the key to success, but the key to failure is trying to
please everybody."
-- Bill Cosby, Comedian
"The value decade is upon us. If you can't sell a top-quality product at
the world's lowest price, you're going to be out of the game."
-- Jack Welch, Executive
"Within our dreams and aspirations we find our opportunities."
-- Sugar Ray Leonard, boxer
"Resolve to perform what you ought; perform without fail what you
resolve."
-- Benjamin Franklin, statesman
All "Betts" on Brian! The Only Realtor you want!
"The superior man makes the difficulty to be overcome his first
interest; success comes only later."
-- William Jennings Bryan, attorney
"I don't know the key to success, but the key to failure is trying to
please everybody."
-- Bill Cosby, Comedian
"The value decade is upon us. If you can't sell a top-quality product at
the world's lowest price, you're going to be out of the game."
-- Jack Welch, Executive
"Within our dreams and aspirations we find our opportunities."
-- Sugar Ray Leonard, boxer
"Resolve to perform what you ought; perform without fail what you
resolve."
-- Benjamin Franklin, statesman
All "Betts" on Brian! The Only Realtor you want!
Friday, October 15, 2010
Direct Marketing
Direct Marketing: 5 Easy Ways to Get It Right
Direct marketing — the practice of using impactful one-on-one communication to get your carefully chosen prospects to respond in a desired way — is a smart, cost-effective strategy for increasing your sales and business. The best direct marketers align the right message, audience, format, timing and measurement to create outstanding direct-marketing results. To do so, you need to develop the following:
Right Message: Compel your prospects to take action by giving them fresh, insightful information that will save them time and money, add comfort and convenience, or make their lives safer and more enjoyable. Attach guarantees, discounts and deadlines to make offers stand out even more.
Right Audience: These are the people you believe will benefit most from your products and services. On all of your communications, include a sign-up or subscribe button, along with your contact information. Continue to cull and cultivate your contacts and treat them like the gold they are.
Right Format: Your message and audience will often influence the format(s) your direct marketing will take. These formats include direct mail in the form of letters, postcards, flyers and brochures; electronic media such as emails, blogs and social networking sites; telemarketing; and point of purchase (POP) displays. Each, however, must be high-impact and professional looking. Collect direct-marketing examples you have admired and use them to influence your own pieces.
Right Timing: Tie your value-added information to holidays, birthdays or breaking news (i.e., changes in interest rates or new government homebuying incentives) to make it all the more timely and valuable. Providing customers with timely information that increases their knowledge and options will quickly set you apart from your competition.
Right Tracking: If you are not getting the results you want, continually refine and tweak your message, audience, product, service, offer, packaging, format, and/or timing. That's the beauty of direct marketing: It's measurable.
All "Betts" on Brian! The Only Realtor you want!
Direct marketing — the practice of using impactful one-on-one communication to get your carefully chosen prospects to respond in a desired way — is a smart, cost-effective strategy for increasing your sales and business. The best direct marketers align the right message, audience, format, timing and measurement to create outstanding direct-marketing results. To do so, you need to develop the following:
Right Message: Compel your prospects to take action by giving them fresh, insightful information that will save them time and money, add comfort and convenience, or make their lives safer and more enjoyable. Attach guarantees, discounts and deadlines to make offers stand out even more.
Right Audience: These are the people you believe will benefit most from your products and services. On all of your communications, include a sign-up or subscribe button, along with your contact information. Continue to cull and cultivate your contacts and treat them like the gold they are.
Right Format: Your message and audience will often influence the format(s) your direct marketing will take. These formats include direct mail in the form of letters, postcards, flyers and brochures; electronic media such as emails, blogs and social networking sites; telemarketing; and point of purchase (POP) displays. Each, however, must be high-impact and professional looking. Collect direct-marketing examples you have admired and use them to influence your own pieces.
Right Timing: Tie your value-added information to holidays, birthdays or breaking news (i.e., changes in interest rates or new government homebuying incentives) to make it all the more timely and valuable. Providing customers with timely information that increases their knowledge and options will quickly set you apart from your competition.
Right Tracking: If you are not getting the results you want, continually refine and tweak your message, audience, product, service, offer, packaging, format, and/or timing. That's the beauty of direct marketing: It's measurable.
All "Betts" on Brian! The Only Realtor you want!
Brian E. Betts-Helping people
Brian E. Betts-Helping people
This is an unfortunate part of our reality now. I know that you have someone in your life that is going through a rough time and knows that the time in now. Feel Comfortable knowing that I will let them know their options and lead them in the right direction.
I know what it takes to get the job done!
Truly,
Brian E. Betts
All "Betts" on Brian! The Only Realtor You Want!
Keller Williams Utah Realtors
435-513-0973
betts@kw.com
www.brianebetts.com
This is an unfortunate part of our reality now. I know that you have someone in your life that is going through a rough time and knows that the time in now. Feel Comfortable knowing that I will let them know their options and lead them in the right direction.
I know what it takes to get the job done!
Truly,
Brian E. Betts
All "Betts" on Brian! The Only Realtor You Want!
Keller Williams Utah Realtors
435-513-0973
betts@kw.com
www.brianebetts.com
Daily Quotes!
Daily Quotes for Oct. 15 2010!
"I would never have amounted to anything were it not for adversity. I
was forced to come up the hard way."
-- J.C. Penney, Businessman and Mason
"All serious daring starts from within."
-- Eudora Welty, writer
"Knowing thyself is the height of wisdom."
-- Socrates
"Never let life's hardships disturb you; no one can avoid problems, not
even saints or sages."
-- Nichiren Daishonen
"I believe in me more than anything in this world."
-- Wilma Rudolph, Olympic runner
All "Betts" on Brian! The Only Realtor you want!
"I would never have amounted to anything were it not for adversity. I
was forced to come up the hard way."
-- J.C. Penney, Businessman and Mason
"All serious daring starts from within."
-- Eudora Welty, writer
"Knowing thyself is the height of wisdom."
-- Socrates
"Never let life's hardships disturb you; no one can avoid problems, not
even saints or sages."
-- Nichiren Daishonen
"I believe in me more than anything in this world."
-- Wilma Rudolph, Olympic runner
All "Betts" on Brian! The Only Realtor you want!
Thursday, October 14, 2010
Daily Quotes!
Daily Quotes Oct. 14 2010!
"When you affirm big, believe big and pray big, putting faith into action, big things happen."
-- Norman Vincent Peale, clergyman
"No matter how small and unimportant what we are doing may seem, if we do it well, it may soon become the step that will lead us to better things."
-- Channing Pollock
"Never forget that it is the spirit with which you endow your work that makes it useful or futile."
-- Adelaide Hasse, librarian
"Sometimes we stare so long at a door that is closing that we see too late the one that is open."
-- Alexander Graham Bell, inventor
"You promote yourself every time you take on a new responsibility."
-- William Gore, executive
All "Betts" on Brian! The Only Realtor you want!
"When you affirm big, believe big and pray big, putting faith into action, big things happen."
-- Norman Vincent Peale, clergyman
"No matter how small and unimportant what we are doing may seem, if we do it well, it may soon become the step that will lead us to better things."
-- Channing Pollock
"Never forget that it is the spirit with which you endow your work that makes it useful or futile."
-- Adelaide Hasse, librarian
"Sometimes we stare so long at a door that is closing that we see too late the one that is open."
-- Alexander Graham Bell, inventor
"You promote yourself every time you take on a new responsibility."
-- William Gore, executive
All "Betts" on Brian! The Only Realtor you want!
Tuesday, October 12, 2010
For the week of October 11, 2010
For the week of October 11, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
With all the conflicting opinions about the housing market, we found this recently published article in the Wall Street Journal to be quite helpful. It's title says it all, "10 Reasons to Buy a Home".
Last Monday, the National Association of Realtors (NAR) reported its August Pending Home Sales index UP 4.3% over the prior month. But this measure of signed contracts on existing homes was down 20.1% compared to a year ago. The NAR's current economic forecast looks to a 6.4% drop in existing home sales for 2010 compared to 2009, putting the volume at 4.82 million, and the median existing home price UP 0.2%, to $172,900. This is a smaller drop and a greater price rise than previously predicted.
On the new homes front, the NAR projects sales off 13.4% for the year to 325,000, although housing starts will be UP 11.3% while the new home median price will dip 0.4% to $215,000. But the NAR projects new home sales UP a whopping 28.9% for 2011 and 28% in 2012, with the median price UP 2.4% next year and 4.9% the year after that. Finally, the President last week signed a bill that keeps in place today's higher loan limits for Fannie Mae and Freddie Mac guaranteed loans and FHA multifamily programs.
Review of Last Week
DOW AT 11 THOU... Stocks went up and down all week as investors on Wall Street tried to figure out if it was smarter to be betting on the economy or against it. The economic data coming from the government and corporations pointed opposite ways, but UP was the direction that ultimately prevailed. As a result, the Dow crossed over the 11,000 threshold for the first time since May, as all three major market indexes showed gains for the week and were up from 4.5% to almost 6% for the year.
It was nice to see Pending Homes Sales ahead for the month, but the 20% drop year-over-year indicates that the housing market still awaits real recovery. Then the week ended with a disappointing September employment report showing payrolls down by 95,000 for the month. This was all due to heavy layoffs in government jobs, as the private sector showed a gain of 64,000 jobs, which was OK, but a bit less than expected. The unemployment rate held at 9.6%
On the good news side, the ISM Services index rose above expectations in September, showing slow but still steady expansion in the non-manufacturing sector of the economy. There were also better-than-expected earnings reports from Alcoa, Yum! Brands, and Costco, with PepsiCo's Q3 numbers in line with expectations. But some observers felt the biggest push to the upside was investors' increasing certainty that the Fed will move soon to stimulate the economy with QE-2, its second round of quantitative easing. Of course, negative economic numbers increase chances that the Fed will act sooner.
For the week, the Dow ended UP 1.6%, to 1106.48; the S&P 500 was also UP 1.6%, to 1165.15; and the Nasdaq was UP 1.3%, to 2401.91.
Prices were strong in the bond market and held up, even with some profit-taking at the end of the week. The FNMA 30-year 4.0% bond we watch ended UP 79 basis points for the week, closing at $103.06. National average mortgage rates for most mortgages tracked in Freddie Mac's weekly survey remain at historically low levels.
This Week’s Forecast
THE FED'S THOUGHTS, INFLATION, RETAIL... Tuesday we have the minutes from the Fed's last FOMC meeting a few weeks ago. The economic experts are sure to pore over the dialogue to see when the central bank may go for another round of quantitative easing ("QE-2"). This will keep rates low, but could lead to more inflation later on, which could drive more people into the housing market.
Wholesale inflation for September is measured with Thursday's Producer Price Index (PPI), but more important are Friday's CPI readings on consumer inflation. These are all expected to remain in benign territory, where they've resided for some time. Friday's Retail Sales numbers will tell us more about the consumer's contribution to the recovery, but they're expected to show more modest gains than previously reported. All this indicates a slowing of the recovery, but at least we're not falling back into recession.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months There's more talk about the Fed helping the economy along with a second round of quantitative easing (QE-2). Consequently, economists expect the Fed Funds Rate to stay at its rock bottom level well into next year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Relator you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
With all the conflicting opinions about the housing market, we found this recently published article in the Wall Street Journal to be quite helpful. It's title says it all, "10 Reasons to Buy a Home".
Last Monday, the National Association of Realtors (NAR) reported its August Pending Home Sales index UP 4.3% over the prior month. But this measure of signed contracts on existing homes was down 20.1% compared to a year ago. The NAR's current economic forecast looks to a 6.4% drop in existing home sales for 2010 compared to 2009, putting the volume at 4.82 million, and the median existing home price UP 0.2%, to $172,900. This is a smaller drop and a greater price rise than previously predicted.
On the new homes front, the NAR projects sales off 13.4% for the year to 325,000, although housing starts will be UP 11.3% while the new home median price will dip 0.4% to $215,000. But the NAR projects new home sales UP a whopping 28.9% for 2011 and 28% in 2012, with the median price UP 2.4% next year and 4.9% the year after that. Finally, the President last week signed a bill that keeps in place today's higher loan limits for Fannie Mae and Freddie Mac guaranteed loans and FHA multifamily programs.
Review of Last Week
DOW AT 11 THOU... Stocks went up and down all week as investors on Wall Street tried to figure out if it was smarter to be betting on the economy or against it. The economic data coming from the government and corporations pointed opposite ways, but UP was the direction that ultimately prevailed. As a result, the Dow crossed over the 11,000 threshold for the first time since May, as all three major market indexes showed gains for the week and were up from 4.5% to almost 6% for the year.
It was nice to see Pending Homes Sales ahead for the month, but the 20% drop year-over-year indicates that the housing market still awaits real recovery. Then the week ended with a disappointing September employment report showing payrolls down by 95,000 for the month. This was all due to heavy layoffs in government jobs, as the private sector showed a gain of 64,000 jobs, which was OK, but a bit less than expected. The unemployment rate held at 9.6%
On the good news side, the ISM Services index rose above expectations in September, showing slow but still steady expansion in the non-manufacturing sector of the economy. There were also better-than-expected earnings reports from Alcoa, Yum! Brands, and Costco, with PepsiCo's Q3 numbers in line with expectations. But some observers felt the biggest push to the upside was investors' increasing certainty that the Fed will move soon to stimulate the economy with QE-2, its second round of quantitative easing. Of course, negative economic numbers increase chances that the Fed will act sooner.
For the week, the Dow ended UP 1.6%, to 1106.48; the S&P 500 was also UP 1.6%, to 1165.15; and the Nasdaq was UP 1.3%, to 2401.91.
Prices were strong in the bond market and held up, even with some profit-taking at the end of the week. The FNMA 30-year 4.0% bond we watch ended UP 79 basis points for the week, closing at $103.06. National average mortgage rates for most mortgages tracked in Freddie Mac's weekly survey remain at historically low levels.
This Week’s Forecast
THE FED'S THOUGHTS, INFLATION, RETAIL... Tuesday we have the minutes from the Fed's last FOMC meeting a few weeks ago. The economic experts are sure to pore over the dialogue to see when the central bank may go for another round of quantitative easing ("QE-2"). This will keep rates low, but could lead to more inflation later on, which could drive more people into the housing market.
Wholesale inflation for September is measured with Thursday's Producer Price Index (PPI), but more important are Friday's CPI readings on consumer inflation. These are all expected to remain in benign territory, where they've resided for some time. Friday's Retail Sales numbers will tell us more about the consumer's contribution to the recovery, but they're expected to show more modest gains than previously reported. All this indicates a slowing of the recovery, but at least we're not falling back into recession.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months There's more talk about the Fed helping the economy along with a second round of quantitative easing (QE-2). Consequently, economists expect the Fed Funds Rate to stay at its rock bottom level well into next year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Relator you want!
Last Week in the News
Last Week in the News
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 4.3% in August after a downwardly revised 4.5% increase in July. On a year-over-year basis, pending sales are down 18.4%.
Factory orders fell 0.5% in August to a seasonally adjusted $408.9 billion. The decline follows a revised increase of 0.5% in July. The decrease was largely due to a 40.2% drop in demand for commercial aircraft. Excluding the volatile transportation sector, orders rose 0.9%.
The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity rose to 53.2 in September from 51.5 in August. A reading above 50 signals expansion. It was the ninth consecutive month of growth.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 1 fell 0.2%. Refinancing applications fell 2.5%. Purchase volume increased 9.3%, the highest level since early May.
Wholesalers increased their inventories 0.8% in August, following a revised 1.5% rise in July. Sales at the wholesale level rose 0.5% in August after a 0.8% increase in July. Economists had anticipated inventories would increase 0.5% in August.
Initial claims for unemployment benefits fell by 11,000 to 445,000 for the week ending October 2. Continuing claims for the week ending September 25 fell by 48,000 to 4.45 million. The unemployment rate remained unchanged at 9.6% in September.
Upcoming on the economic calendar are reports on international trade on October 14 and retail sales on October 15.
All "Betts" on Brian! The Only Realtor you want!
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 4.3% in August after a downwardly revised 4.5% increase in July. On a year-over-year basis, pending sales are down 18.4%.
Factory orders fell 0.5% in August to a seasonally adjusted $408.9 billion. The decline follows a revised increase of 0.5% in July. The decrease was largely due to a 40.2% drop in demand for commercial aircraft. Excluding the volatile transportation sector, orders rose 0.9%.
The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity rose to 53.2 in September from 51.5 in August. A reading above 50 signals expansion. It was the ninth consecutive month of growth.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 1 fell 0.2%. Refinancing applications fell 2.5%. Purchase volume increased 9.3%, the highest level since early May.
Wholesalers increased their inventories 0.8% in August, following a revised 1.5% rise in July. Sales at the wholesale level rose 0.5% in August after a 0.8% increase in July. Economists had anticipated inventories would increase 0.5% in August.
Initial claims for unemployment benefits fell by 11,000 to 445,000 for the week ending October 2. Continuing claims for the week ending September 25 fell by 48,000 to 4.45 million. The unemployment rate remained unchanged at 9.6% in September.
Upcoming on the economic calendar are reports on international trade on October 14 and retail sales on October 15.
All "Betts" on Brian! The Only Realtor you want!
Getting More Important Things Done
Getting More Important Things Done
You should start your day by tackling the biggest, hardest and most important task of the day. In short: Do the worst first and resist the temptation to start with the easier tasks. This is the central message of Brian Tracy's bestselling book, "Eat That Frog: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time."
To help you separate the big and important tasks from low-priority tasks, try creating imaginary deadlines. Work through your day as if you've just received an emergency message and been informed you must leave town tomorrow. Then ask yourself: What are my priorities? Write them down and grade them, with "A" being items of greatest importance.
Examine ways you can save, schedule and consolidate large chunks of time for the most important tasks. Work in blocks of time. Make work appointments with yourself then discipline yourself to keep those appointments. If you have tasks you can schedule, then set aside preplanned time slots where you focus only on one task at a time.
One of the most powerful tools for time management is the word "no." Learn to say no politely but clearly. Intentionally avoid working on low-value tasks, activities or responsibilities that you can abandon with no real loss. Keep in mind that to do something new you must stop or complete doing something old.
Develop a sense of urgency to everything you do. Impose deadlines for every task. There is never enough time to get everything done. But you are free to choose what you do next. And your ability to choose between the important and the unimportant is the key determinant of your success in life and work.
All "Betts" on Brian! The Only Relator you want!
You should start your day by tackling the biggest, hardest and most important task of the day. In short: Do the worst first and resist the temptation to start with the easier tasks. This is the central message of Brian Tracy's bestselling book, "Eat That Frog: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time."
To help you separate the big and important tasks from low-priority tasks, try creating imaginary deadlines. Work through your day as if you've just received an emergency message and been informed you must leave town tomorrow. Then ask yourself: What are my priorities? Write them down and grade them, with "A" being items of greatest importance.
Examine ways you can save, schedule and consolidate large chunks of time for the most important tasks. Work in blocks of time. Make work appointments with yourself then discipline yourself to keep those appointments. If you have tasks you can schedule, then set aside preplanned time slots where you focus only on one task at a time.
One of the most powerful tools for time management is the word "no." Learn to say no politely but clearly. Intentionally avoid working on low-value tasks, activities or responsibilities that you can abandon with no real loss. Keep in mind that to do something new you must stop or complete doing something old.
Develop a sense of urgency to everything you do. Impose deadlines for every task. There is never enough time to get everything done. But you are free to choose what you do next. And your ability to choose between the important and the unimportant is the key determinant of your success in life and work.
All "Betts" on Brian! The Only Relator you want!
Daily Quotes!
Daily Quotes Oct. 12 2010!
"Nurture your mind with great thoughts. To believe in the heroic makes heroes."
-- Benjamin Disraeli, British prime minister
"A smooth sea never made a skillful mariner."
-- English proverb
"Only those who risk going too far can possibly find out how far one can go."
-- T.S. Eliot
"The greater the difficulty, the more glory in surmounting it."
-- Epicurus
"Forgiveness does not change the past, but it does enlarge the future."
-- Paul Boese
All "Betts" on Brian! The Only Realtor you want!
"Nurture your mind with great thoughts. To believe in the heroic makes heroes."
-- Benjamin Disraeli, British prime minister
"A smooth sea never made a skillful mariner."
-- English proverb
"Only those who risk going too far can possibly find out how far one can go."
-- T.S. Eliot
"The greater the difficulty, the more glory in surmounting it."
-- Epicurus
"Forgiveness does not change the past, but it does enlarge the future."
-- Paul Boese
All "Betts" on Brian! The Only Realtor you want!
Tuesday, October 5, 2010
For the week of October 4, 2010
For the week of October 4, 2010
INFO THAT HITS US WHERE WE LIVE
Market Update
Last week's housing market data centered on Standard & Poor's S&P/Case-Shiller Home Price Index. This showed home prices UP in July for the fourth month in a row, but the pace of their gain had slowed from prior months. With the expiration of the government's home buyer tax incentives, some observers wonder if the S&P/Case-Shiller will keep moving up. The composite 20-city index, a broad measure of U.S. home prices, showed a 3.2% increase year over year, the sixth month in a row it posted an annual gain.
Nonetheless, home price gains did slow in the waning days of the tax credits. In July, only 12 of the 20 cities surveyed showed price gains, compared to 17 cities reporting rising prices in June. Analysts pointed out that these results underscore the fact that the spring/early summer months are the best for home sales. Most experts feel the next few months should give us a better idea of the true strength of the housing market.
Review of Last Week
A BIT OF A BREATHER... Investors on Wall Street took a rest last week from bidding stock prices up the way they had earlier in the month. Performance of the major market indexes was uninspiring, though slippages were all less than a half a percent. But performance for the month was impressive. The broad-based S&P 500 index, favored by professional investors, shot up 8.8% for September, its best monthly gain since April 2009 and its best September reading in over 70 years.
Perhaps investors took the week off because they remain cautious about the near-term economic recovery. Consumers seem to agree, as the week began with a surprise drop in September's Consumer Confidence Index, which hit a seven-month low, falling far short of consensus expectations. The ISM Manufacturing Index also slid a bit from August to September, missing estimates, but remaining in expansion territory.
Upside economic data included better than forecast weekly initial jobless claims, although 453,000 is still not a good number. Continuing claims dropped by 83,000 for the week, but that number remains well above 4 million. Personal income and spending (PCE) for August were up better than expected and Core PCE was up just 0.1%, so inflation is still in check.
For the week, the Dow ended down 0.3%, to 10829.68; the S&P 500 was down 0.2%, to 1146.24; and the Nasdaq was off 0.4%, to 2370.75.
The bond market ended the week with investor interest helping prices in some areas. One was the FNMA 30-year 4.0% bond we watch, which ended UP 10 basis points for the week, closing at $102.27. According to Freddie Mac's weekly survey, national average mortgage rates for fixed-rate mortgages dropped a tad, remaining at historically low levels.
This Week’s Forecast
WHERE WE'RE GOING WITH HOMES AND JOBS... The week begins with August Pending Home Sales, which count signed contracts and therefore tell us what will be happening with closings a few months out. Unfortunately, the consensus expects the August reading to be down a bit from July. But September ISM Services is expected to show the non-manufacturing sector still indicating expansion, with a reading just over 50.
The week ends with the September Employment Report and the forecast is for no increase in payrolls overall, although 70,000 jobs are expected to be added to the private sector. However, population growth outpaces this rate of job creation, so unemployment is predicted to tick up to 9.7%.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months There's been a lot of talk about the Fed's readiness to provide a second round of quantitative easing (QE-2) if needed. This has led economists to believe that the Fed Funds Rate will remain at its rock bottom levels for quite some time. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Market Update
Last week's housing market data centered on Standard & Poor's S&P/Case-Shiller Home Price Index. This showed home prices UP in July for the fourth month in a row, but the pace of their gain had slowed from prior months. With the expiration of the government's home buyer tax incentives, some observers wonder if the S&P/Case-Shiller will keep moving up. The composite 20-city index, a broad measure of U.S. home prices, showed a 3.2% increase year over year, the sixth month in a row it posted an annual gain.
Nonetheless, home price gains did slow in the waning days of the tax credits. In July, only 12 of the 20 cities surveyed showed price gains, compared to 17 cities reporting rising prices in June. Analysts pointed out that these results underscore the fact that the spring/early summer months are the best for home sales. Most experts feel the next few months should give us a better idea of the true strength of the housing market.
Review of Last Week
A BIT OF A BREATHER... Investors on Wall Street took a rest last week from bidding stock prices up the way they had earlier in the month. Performance of the major market indexes was uninspiring, though slippages were all less than a half a percent. But performance for the month was impressive. The broad-based S&P 500 index, favored by professional investors, shot up 8.8% for September, its best monthly gain since April 2009 and its best September reading in over 70 years.
Perhaps investors took the week off because they remain cautious about the near-term economic recovery. Consumers seem to agree, as the week began with a surprise drop in September's Consumer Confidence Index, which hit a seven-month low, falling far short of consensus expectations. The ISM Manufacturing Index also slid a bit from August to September, missing estimates, but remaining in expansion territory.
Upside economic data included better than forecast weekly initial jobless claims, although 453,000 is still not a good number. Continuing claims dropped by 83,000 for the week, but that number remains well above 4 million. Personal income and spending (PCE) for August were up better than expected and Core PCE was up just 0.1%, so inflation is still in check.
For the week, the Dow ended down 0.3%, to 10829.68; the S&P 500 was down 0.2%, to 1146.24; and the Nasdaq was off 0.4%, to 2370.75.
The bond market ended the week with investor interest helping prices in some areas. One was the FNMA 30-year 4.0% bond we watch, which ended UP 10 basis points for the week, closing at $102.27. According to Freddie Mac's weekly survey, national average mortgage rates for fixed-rate mortgages dropped a tad, remaining at historically low levels.
This Week’s Forecast
WHERE WE'RE GOING WITH HOMES AND JOBS... The week begins with August Pending Home Sales, which count signed contracts and therefore tell us what will be happening with closings a few months out. Unfortunately, the consensus expects the August reading to be down a bit from July. But September ISM Services is expected to show the non-manufacturing sector still indicating expansion, with a reading just over 50.
The week ends with the September Employment Report and the forecast is for no increase in payrolls overall, although 70,000 jobs are expected to be added to the private sector. However, population growth outpaces this rate of job creation, so unemployment is predicted to tick up to 9.7%.
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.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months There's been a lot of talk about the Fed's readiness to provide a second round of quantitative easing (QE-2) if needed. This has led economists to believe that the Fed Funds Rate will remain at its rock bottom levels for quite some time. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
Last Week in the News
Last Week in the News
According to the ICSC-Goldman Sachs index, retail sales rose 0.4% for the week ending September 25. On a year-over-year basis, retailers saw sales increase 3.6%, the best reading since early August.
The Standard & Poor's/Case-Shiller 20-city housing price index — on a seasonally adjusted basis — rose 0.6% in July after a 0.3% increase in June. On a year-over-year basis, prices rose 3.2% compared with July 2009.
The consumer confidence index fell to 48.5 in September from a downwardly revised 53.2 in August. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending September 24 fell 0.8%. Refinancing applications fell 1.6%. Purchase volume increased 2.4%.
The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 54.4 in September after reaching 56.3 in August. Economists had anticipated a reading of 54.5. A reading above 50 signals expansion. It was the 14th straight month of expansion.
Total construction spending rose 0.4% to $811.8 billion in August, following a downwardly revised 1.4% drop in July. Economists had anticipated a drop of 0.4% in August.
The Commerce Department reported that consumer spending rose $41.3 billion or 0.4% in August, matching what economists had anticipated. Personal income increased $59.3 billion or 0.5%.
Initial claims for unemployment benefits fell by 16,000 to 453,000 for the week ending September 25. Continuing claims for the week ending September 18 fell by 83,000 to 4.45 million.
Upcoming on the economic calendar are reports on pending home sales on October 4 and wholesale trade on October 8.
All"Betts" on Brian! The Only Realtor you want!
According to the ICSC-Goldman Sachs index, retail sales rose 0.4% for the week ending September 25. On a year-over-year basis, retailers saw sales increase 3.6%, the best reading since early August.
The Standard & Poor's/Case-Shiller 20-city housing price index — on a seasonally adjusted basis — rose 0.6% in July after a 0.3% increase in June. On a year-over-year basis, prices rose 3.2% compared with July 2009.
The consumer confidence index fell to 48.5 in September from a downwardly revised 53.2 in August. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending September 24 fell 0.8%. Refinancing applications fell 1.6%. Purchase volume increased 2.4%.
The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 54.4 in September after reaching 56.3 in August. Economists had anticipated a reading of 54.5. A reading above 50 signals expansion. It was the 14th straight month of expansion.
Total construction spending rose 0.4% to $811.8 billion in August, following a downwardly revised 1.4% drop in July. Economists had anticipated a drop of 0.4% in August.
The Commerce Department reported that consumer spending rose $41.3 billion or 0.4% in August, matching what economists had anticipated. Personal income increased $59.3 billion or 0.5%.
Initial claims for unemployment benefits fell by 16,000 to 453,000 for the week ending September 25. Continuing claims for the week ending September 18 fell by 83,000 to 4.45 million.
Upcoming on the economic calendar are reports on pending home sales on October 4 and wholesale trade on October 8.
All"Betts" on Brian! The Only Realtor you want!
Friday, October 1, 2010
Oct Newsletter
Oct Newsletter
Leaves are changing. The air is supposed to start getting cooler, home prices are low and rates are even lower (Below 4.25%)! It looks like nation wide home prices are 26% below what they were last year at this time! Let me ask you a question, and be honest, If you found out that the car you were looking at one year ago was 26% lower from what it was then, is now, wouldn’t you buy it? That’s what people are doing now, they are buying! In the last 30 days in just the County of Salt Lake 613 properties were sold! That is 613 people that sold their home and 613 buyers that bought homes! That is 1226 sides! What that means to me is that homes are selling and people are buying!
Only 1 out of 5 homes that sold were in distress of some kind, being a foreclosure or short sale. 4 out of 5 were people like you and me that just wanted to move and did! Remember, it is never as bad as the media makes it sound! Here is an interesting fact. Lenders started Foreclosure Proceedings on about 2.8 million homes last year, but the number or actual foreclosure sales was about 953,000! As Public Enemy states, “Don’t Believe the Hype”!
Please let me know if I can help you, your friends or family, anyone in your neighborhood or work that could use my knowledge and expertise!
I am an expert at getting homes sold, and as one of my buyer clients said just the other day, “A Bulldog” when it comes to helping you buy a home! Do the right thing and call me if you need anything!
You can also go to www.bettshomes.com and search out ALL the active listings in Utah 24/7! Call me and we can go look at these homes in person!
I am here to serve you! Enjoy the Newsletter!
Truly,
Brian E. Betts
All "Betts" on Brian! The Only Realtor You Want!
Keller Williams Utah Realtors
435-513-0973
betts@kw.com
www.brianebetts.com
Leaves are changing. The air is supposed to start getting cooler, home prices are low and rates are even lower (Below 4.25%)! It looks like nation wide home prices are 26% below what they were last year at this time! Let me ask you a question, and be honest, If you found out that the car you were looking at one year ago was 26% lower from what it was then, is now, wouldn’t you buy it? That’s what people are doing now, they are buying! In the last 30 days in just the County of Salt Lake 613 properties were sold! That is 613 people that sold their home and 613 buyers that bought homes! That is 1226 sides! What that means to me is that homes are selling and people are buying!
Only 1 out of 5 homes that sold were in distress of some kind, being a foreclosure or short sale. 4 out of 5 were people like you and me that just wanted to move and did! Remember, it is never as bad as the media makes it sound! Here is an interesting fact. Lenders started Foreclosure Proceedings on about 2.8 million homes last year, but the number or actual foreclosure sales was about 953,000! As Public Enemy states, “Don’t Believe the Hype”!
Please let me know if I can help you, your friends or family, anyone in your neighborhood or work that could use my knowledge and expertise!
I am an expert at getting homes sold, and as one of my buyer clients said just the other day, “A Bulldog” when it comes to helping you buy a home! Do the right thing and call me if you need anything!
You can also go to www.bettshomes.com and search out ALL the active listings in Utah 24/7! Call me and we can go look at these homes in person!
I am here to serve you! Enjoy the Newsletter!
Truly,
Brian E. Betts
All "Betts" on Brian! The Only Realtor You Want!
Keller Williams Utah Realtors
435-513-0973
betts@kw.com
www.brianebetts.com
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