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Your Lender for Life
| For the week of Aug 29, 2005 --- Vol. 3, Issue 35 |
Last Week In Review
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| HE’S LEAN, HE’S MEAN,
HE’S AN ECONOMIC MACHINE…None other than our own Chairman Greenspan,
who with his scintillating speech at the conference titled “The Greenspan
Era: Lessons for the Future”, fired a shot across the bow of the housing
sector on Friday. Although Greenspan remains consistent in his judgment that
there is no national housing bubble, he has increased the level of his
concern about the housing market in recent months. Especially directed
towards highly speculative or investor markets, he threw up a yellow flag,
saying "history has not dealt kindly" with those who think the good times
will never end. He went on to say that the ten Fed Funds Rate hikes since June of 2004 were not designed specifically to cool the housing market or to keep housing prices from rising. It appears that the tightening pattern will continue until he turns over the keys to his unnamed successor – perhaps Ben Bernanke – who will have some awfully big shoes to fill. Bonds had eked out some minor gains during the week, but lost ground on Friday afternoon, leaving home loan rates essentially unchanged for the week overall. "IF I’D HAVE KNOWN HOW MUCH PACKING I’D HAVE TO DO…I WOULD HAVE RUN AGAIN” SAID HARRY S TRUMAN UPON LEAVING THE WHITE HOUSE IN JANUARY 1953. AND IT’S A SENTIMENT MOST OF US CAN APPRECIATE – MOVING IS JUST A HASSLE, PLAIN AND SIMPLE. FOR SOME EASY WAYS TO ENSURE A SMOOTH MOVE, DON’T MISS THIS WEEK’S MORTGAGE MARKET VIEW. |
| Forecast For The Week
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| So like a wild herd of turtles, Bonds finally
managed to inch away from the ugly “Down Escalator” they had ridden for most
of the summer. What happens next? Much will depend on the outcome of this
week’s packed Economic Calendar, especially the heavy hitting Jobs Report
due on Friday. Analysts are predicting 200,000 new job creations for August.
If the number is significantly lower, Bonds and home loan rates will likely
benefit immediately. But if the number is significantly higher, Bonds and
home loan rates will suffer. On a technical level, Bonds are getting close to being “squeezed” between a rising floor of support and an overhead ceiling of resistance. While they may just stay put in advance of Friday’s big Jobs number, a break higher or lower will likely set the trend for a few weeks to come.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday August 26, 2005)
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| The Mortgage Market View…
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| The stomach churns, a cold sweat breaks out on the
brow, the knees go weak…a bad case of summer flu? No – just the prospect of
packing up and moving a whole houseful of stuff. Take a deep breath and
relax – here are a few helpful hints to make sure your next move is super
smooth. Choosing a mover: Hiring a mover can be a daunting process. If you can’t get a referral from a friend or family member, doing some checking around will likely pay off in spades. Choose three to four moving companies, request an in-home estimate and compare the quotes. Prior to making the final decision, confirm that you are working with a reputable moving company by visiting www.movingscam.com or www.movingadvocateteam.com. If hiring a moving company does not fit the budget, research a "you pack and load – they drive" company. For more information, visit sites such as www.upack.com, providing information and quotes on such services. Where to purchase packing supplies: This has gotten more convenient over the years. Simply go to one of the following websites and purchase all of your packing supplies – even get an estimate of how many boxes you will need for your home. www.onlinemovingboxes.com, www.boxesdelivered.com, or www.uhaul.com/boxes/. These sites often sell packing supplies for as much as 20% below supply stores. Organize your move: The checklist you can link to below provides a step by step plan – as well as a detailed time frame – to help create a truly organized move: http://www.realsimple.com/realsimple/web/pdf/0605/moving.pdf. And always be sure to check with your trusted Real Estate or home loan professional, who may have some great tips for you as well. Happy Trails! |
| The Week's Economic Indicator Calendar
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| This week's economic calendar shifts into
“overdrive”, including another high-impact monthly Jobs Report on Friday
which may influence the trend of home loan rates for days or even weeks to
come. Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise. Economic Calendar for the Week of August 29 – September 2
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Red Letter Mortgage ~ 6417 Odana Road Suite B ~ Madison, WI 53719 Phone: 608.273.3554 Email: info@redlettermortgage.com © 2002-2005 Red Letter Mortgage. All rights reserved. |