Andrea 's Blog

WELCOME BETTER HOMES & GARDENS - HOMETOWN CONNECTION

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Wed, 25 Nov 2009 10:42:19 -0800

Check out our website: http://www.bhghometownconnection.com/

IKE hits my hometown!

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 15 Sep 2008 11:35:10 -0700

I was absolutely glued to the television these past few days in awe over the destruction that hurricane Ike inflicted on the Texas gulf coast. Partially because I still have family and friends in Houston and Galveston and Louisiana, and partially because I was able to see things on the news that I recognized. It is eerie seeing a thriving metropolitan area as large as Houston the way it was. Downtown deserted. Freeways empty. I know it is hard to put in perspective to those of you who have never been there but i remember the amount of traffic on 8 lines of freeway and for them to be empty is a MAJOR deal. Glass shattered out of sky scrappers, houses damaged, streets flooded, what a mess! Thankfully Houston fared better than Galveston, a place I have visited MANY times on my spring breaks, summer vacations, and even my honeymoon. It is heartbreaking to me and I am sure to many others across this great nation. Please keep the affected people in your prayers, they will need it.

Just a few pics I found.

Market Commentary 09/15/2008

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 15 Sep 2008 11:13:08 -0700

Market Commentary

At Legacy Mortgage we are constantly seeking ways to enhance our dedication to our clients and real estate partners. Our position as an innovator in the field of real estate finance allows us to help you make informed decisions regarding your customers mortgage financing. We have scoured through the financial reports for the week and we wanted to share the information with you. Please let us know if we can be of further assistance to you and your valued clients.

There are only four pieces of economic news scheduled for release this week and one of them is a highly important inflation reading. We also have another Federal Open Market Committee (FOMC) meeting, which likely will not bring a change to key short-term interest rates. There is a pretty good possibility of seeing a fair amount of volatility in the markets and likely mortgage rates the next several days.

The first report of the week is August's Industrial Production data this morning. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be moderately important but could cause movement in mortgage rates. Analysts are currently expecting to see a 0.3% decline in production. A higher level of output could lead to higher mortgage rates, while a weaker than expected figure should help push rates slightly lower .

August's Consumer Price Index (CPI) will be released Tuesday morning at 8:30 am ET. The CPI is one of the most important reports we see each and every month. It is considered to be a key indicator of inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. Current forecasts are calling for no change in the overall reading and a 0.2% rise in the core data reading. A larger increase in the core data would likely lead to higher mortgage rates Tuesday, while a smaller increase would be good news.

The FOMC meeting will adjourn at 2:15 PM Tuesday. There is little debate about a possible change to key short-term interest rates at this meeting. The overwhelming consensus is that there will be no change to rates at this meeting. However, the post-meeting statement could very well lead to volatility during afternoon trading as investors dissect it in an effort to find the Fed's expected next move . The wild card is how the markets react to the statement. If we see significant weakness in stocks, the bond market may benefit as a safe-haven from the volatility. This could lead to lower mortgage rates Tuesday afternoon and Wednesday morning.

August's Housing Starts report will be released early Wednesday morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand, but is usually considered to be of low importance to the financial markets.

Late Thursday morning, the Conference Board will release its Leading Economic Indicators (LEI). This index attempts to measure economic activity over the next three to six months. If it estimates an increase in activity, the bond market will probably fall and mortgage rates will rise slightly. If it shows weaker than expected readings, the bond market may rally and mortgage rates should fall. Current forecasts are calling for a 0.2% decline from July's reading.

Overall,we expect to see some pressure in bonds tomorrow as investors prepare for Tuesday's events. Tuesday will most likely be the most important day of the week with the CPI release and the FOMC meeting. If the CPI eases inflation concerns and the Fed statement doesn't reveal any negative surprises, we will most likely see mortgage rates move lower for the week.

Family Fun!!

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 21 Jul 2008 13:51:50 -0700

The only thing that my daughter wanted for her birthday this year was a trip to the water park. Happily we all went on Saturday to Tie Breaker Park in Hopkinsville, KY. I must say we had a blast. I think I enjoyed it more than the kiddos did. It is a small park perfect for all ages. I would think that some of the Teens may find it a bit lame BUT for my kids ages 10, 9, and 8. It was perfect. I could just about see them all over the park no matter where they were, the water only goes up to 3 ft 6 inches so it took away most of my worries of being able to keep my girls safe. They had several lifeguards on duty as well, which made me feel more at ease allowing the girls freedom to roam for a few minutes at a time. This allowed time for my husband and I to enjoy the day, talking and playing on the water-slides as well. We all spent hours splashing around in the cool refreshing water and I must say at a very reasonable price. Admission is around $9 per person, if you are a military family it is even cheaper. This is one place I would recommend to take your kids, it is a great family outing that won't blow your budget. For more information go to http://www.tiebreakerpark.com . Your kids will thank you, and you may actually get a bit of peace and fun for yourself!

PITI chart VA

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 21 Jul 2008 13:22:49 -0700

VA BAH CHART for Fort Campbell

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Tue, 15 Jul 2008 13:25:54 -0700

Market Update

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Tue, 15 Jul 2008 12:44:43 -0700

Watch out for Mortgage Rates this week!

This week brings us the release of six important economic reports for the bond market to digest. Several of these reports are considered to be of high importance, meaning we will likely see volatility in the financial markets and mortgage pricing over the next several days. There are also plenty of corporate earnings releases scheduled for the stock markets this week along with the minutes from the last FOMC meeting. Throw in a couple of days of Fed testimony and we have the makings for a very interesting week.

The first piece of data comes Tuesday morning with the release of June's Producer Price Index (PPI). The PPI is very important because it measures inflationary pressures at the producer level of the economy. It is expected to show a 1.3% increase in the overall reading and a 0.3% rise in the core data reading. The bond market should react quite favorably to weaker than expected readings, but a bigger than expected jump in the core reading could send mortgage rates higher Tuesday.

June's Retail Sales report will also be posted Tuesday. The Commerce Department is expected to say that sales at retail establishments rose 0.3% last month. This data is considered to be of high importance because it measures consumer spending. Consumer spending makes up two-thirds of the U.S. economy, so any related data is watched closely. A smaller than expected increase in sales could help fuel a bond rally and lead to lower mortgage rates, depending on the results of the PPI report.

Next on tap is Wednesday's release of June's Consumer Price Index (CPI). It is a mirror of Tuesday's PPI with the exception that the CPI measures inflation at the more important consumer level of the economy. Analysts have forecasted a 0.7% increase in the overall index and a 0.2% rise in the core data. The core data is considered to be the k ey reading of both the PPI and CPI because they exclude more volatile food and energy prices, giving us a more stable measure of inflation. Higher than expected readings could raise inflation fears and push mortgage rates higher both days.

June's Industrial Production data will also be posted Wednesday morning. This data measures output and U.S. factories, mines and utilities, giving us an indication of manufacturing sector strength. It is expected to show a 0.2% rise in production, indicating that the manufacturing sector showed moderate growth during the month. A smaller than expected increase would be good news and could help push mortgage rates slightly lower Wednesday.

Also worth noting about Wednesday is the release of the minutes from the last FOMC meeting. There is a possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members during discussion and voting at the last meeting.

Fed Chairman Bernanke will speak before the Senate Banking Committee Tuesday morning and the House Financial Services Committee Wednesday morning at 10:00am ET. His testimony will be broadcasted and will be watched very closely. Analysts and traders will be looking for the status of the economy and his expectations of future growth, particularly inflation concerns. This should create a great deal of volatility in the markets during the testimony and the question and answer session that follows. If he indicates that inflation is still a point of concern, we will likely see the bond market tank and mortgage rates rise.

Thursday's only relevant data is June's Housing Starts report. This data gives us an indication of housing sector strength, but is not considered to be of high importance. Analysts are currently expecting to see a small decline in new starts of housing projects. However, we don't see this data having a much of an impact on mortgage rates Thursday unless it va ries greatly from forecasts.

Overall though, we think we will see the most movement in mortgage pricing this week on Tuesday or Wednesday due to the release of the inflation related indexes and Mr. Bernanke's testimony those days. This weekend's news of Fed support of Fannie Mae and Freddie Mac will likely help stocks, but we are not sure of how the bond and mortgage markets will react to that news. We suspect it will be taken as positive news, but it will be interesting to see if it has a significant influence on mortgage pricing. Regardless, even without that turn of events, it will likely be an active week for mortgage rates with a fair amount of volatility.

Market Commentary 06/16/2008

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 16 Jun 2008 12:23:47 -0700

Market Commentary

At Legacy Mortgage we are constantly seeking ways to enhance our dedication to our clients and real estate partners. Our postition as an innovator in the field of real estate finance allows us to help you make informed decisions regarding your customers mortgage financing. We have scoured through the financial reports for the week and we wanted to share the information with you. Please let us know if we can be of further assistance to you and your valued clients.

This week is moderately busy with four economic reports scheduled to be released. Only one of the four is considered to be of high importance to the markets and mortgage rates. The remaining three are of interest to the markets but likely will not cause a large change in mortgage rates unless they vary greatly from forecasts.

The first report of the week is also the most important. May's Producer Price Index (PPI) will be posted early Tuesday morning. It helps us measure inflationary pressures at the producer level of the economy and is the sister report to last week's Consumer Price Index (CPI). There are two readings of this index, the overall and the core data. The core data is considered to be the more important of the two because it excludes more volatile food and energy prices. A large increase could add fuel to the theory that inflat ion is a real threat to the economy because the higher prices will likely be passed on to the consumer in the near future. This would not be good news for bond prices or mortgage rates since inflation erodes the value of a bond's future fixed interest payments. Rising inflation causes investors to sell bonds, driving prices lower and mortgage rates higher. Analysts are expecting to see an increase of 1.0% in the overall index and a 0.2% rise in the core data.

The second of three reports being posted Tuesday is May's Housing Starts report. This report gives us a measurement of housing sector strength, but is the week's least important. It usually doesn't have a major impact on the bond market or mortgage rates and we see no reason for this month's results to be any different. Analysts are expecting to see a drop in starts of new homes between April and May.

The third and final piece of data scheduled for Tuesday is May's Industrial Production. This report will be released at 9:15 AM ET. It measures output at U.S. factories, mines and utilities, giving us an important measurement of manufacturing sector strength. If it reveals that production is rising, concerns of manufacturing strength may come into play in the bond market. A decline would indicate that the manufacturing sector is weaker than expected and should help push mortgage rates lower. Current forecasts are calling for an increase of 0.1%.

May's Leading Economic Indicators (LEI) will be posted late Thursday morning. The Conference Board, who is a New York-based business research group, will post this data. It attempts to predict economic activity over the next three to six months. If it shows rapidly rising levels of activity, bond prices will probably drop, pushing mortgage rates higher Thursday morning. But, a weaker than expected reading could lead to lower mortgage pricing. It is expected to show no change from April to May.

Overall, look for Tuesday to be the big day of the week. Not just because it brings the release of three of four reports, but because it brings us the PPI that is considered to be a key inflation reading. We are expecting to see the least amount of movement in rates tomorrow and Friday, unless the major stock indexes stage a considerable sell off or rally. However, we are still not sure that we have seen the end of the recent bond selling. Therefore, keep in constant contact with your mortgage professional through out the week.

market Update 05/19/2008

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 19 May 2008 13:26:32 -0700

Market Commentary

This week brings us the release of only three pieces of economic news in addition to the minutes from the last FOMC meeting. Only one of those three can be considered of high importance to the markets and mortgage rates, so we may see a fairly calm week for mortgage rates.

The first data comes this morning with the release of April's Leading Economic Indicators (LEI) at 10:00 AM ET. This Conference Board report attempts to measure economic activity over the next three to six months. It is expected to show no change from March's reading, meaning that economic activity is likely to remain flat during the next few months. A decline would be good news for the bond market and mortgage rates, while an increase could cause mortgage rates to inch higher tomorrow.

The second report of the week April's Producer Price Index (PPI) Tuesday morning, which helps us measure inflationary pressures at the producer level of the economy. If this report reveals weaker than expected readings, we should see the bond and stock markets rally. The overall index is expected to show an increase of 0.4%, while the core data that excludes food and energy prices is expected to rise 0.2%. A smaller than expected increase in the core data would be ideal for mortgage shoppers.

There is no relevant economic news scheduled for release Wednesday, but we will get to see the minutes from the last FOMC meeting. Market participants will be looking for how Fed members voted during the last meeting and any comments about inflation concerns in the economy. The goal is to form a guess about what the Fed's next move will be. The minutes will be released at 2:00 PM ET, so if there is a market reaction to them it will be evident during afternoon trading.

The National Association of Realtors will give us the Existing Home Sales report Friday morning. This data tracks resales of homes in the U.S., giving us a measurement of housing sector strength. However, it is not considered to be of much importance to the bond market unless it varies greatly from forecasts. Current forecasts are calling for decline in sales between March and April.

Overall, it may be an interesting week for mortgage rates. We could see little movement in rates if the stock markets remain calm and the week's data doesn't reveal any major surprises. Tuesday's PPI report is the single most important data of the week, but the FOMC minutes may also lead to some volatility in the markets. Also worth noting is an early close in the bond market Friday afternoon ahead of the Memorial Day Holiday Monday. These early closes sometimes lead to additional volatility bond prices as investors prepare for the long weekend and trading thins with many traders starting the weekend early.

Market Update 05/12/2008

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Tue, 13 May 2008 09:08:33 -0700

There are several important pieces of economic news scheduled to be released this week, but two stand out above the others. There are a total of five reports scheduled for release, so it could be considered a fairly active week. There is no relevant data due out today, so expect the stock markets to help drive bond trading and mortgage rates.

The first piece of data is the release of April's Retail Sales data early Tuesday morning. This is an extremely important report for the financial markets as it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, this data can have a pretty significant impact on the markets. Current forecasts are calling for no change in sales from March to April. A weaker than expected level of sales should push bond prices higher and mortgage rates lower Tuesday. However, a larger increase could fuel bond selling and lead to higher mortgage rates.

Wednesday's only relevant report is April's Consumer Price Index (CPI). It is similar to next week's PPI report, but measures inflationary pressures at the more important consumer level of the economy. Its results will be watched closely and can lead to significant volatility in the bond market and mortgage pricing. Current forecasts are calling for increases of 0.2% and 0.3% respectively in the overall index and the core data readings. The core data is the more important of the two since it excludes more volatile food and energy prices.

April's Industrial Production is Thursday's only relevant news. It measures manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to show a 0.2% decline in production, indicating that manufacturing activity is slowing. A larger decline in output would be good news for the bond market and mortgage rates because it would indicate that the manufacturing sector is weaker than expected.

There are two pieces of data due to be posted Friday. April's Housing Starts is the first and is the least important of the two. This data measures housing sector strength and mortgage credit demand by tracking new permits and actual starts of new home construction. It is expected to show a decline in new starts from March's readings. But, since this report is not considered to be of high importance to the bond market, it likely will have little impact on mortgage rates unless it varies greatly from forecasts.

The last report of the week is May's preliminary reading to the University of Michigan's Index of Consumer Sentiment. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. It is expected to show a reading of 63.0, which would be a slight increase from last month's final reading. If it shows a decline in consumer confidence, bond prices will likely rise. This should lead to mortgage rates moving slightly lower Friday.

Overall, it likely will be a moderately active week for mortgage rates. Besides the week's important economic news, look for the stock markets to be a major influence on trading. We suspect we will see a fair amount of volatility in stocks, which should affect bond prices. Significant stock weakness should translate into bond gains and lower mortgage rates. However, if the major stock indexes rally, we could see mortgage rates move higher as a result. Keep in contact with your mortgage professional this week for updated rates.

Market update 05/06/2008

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Tue, 06 May 2008 09:18:11 -0700

Market Commentary

Monday's bond market has opened fairly flat despite stock weakness. The major stock indexes are showing losses with the Dow down 53 points and the NASDAQ down 6 points. The bond market is currently down 3/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point over Friday's rates.

This week is very light in terms of economic releases scheduled to be posted. There are actually three reports scheduled that are worthy of addressing, but none of them are considered to be highly important to bonds and mortgage rates. The Institute for Supply Management (ISM) Services Index was posted this morning and came in stronger than expected. However, the variance between the actual reading and the forecasted reading was not enough to cause much concern in the bond or mortgage markets.

The Labor Department will release its 1st Quarter Productivity and Costs data early Wednesday morning. This information helps us measure employee productivity in the workplace. High levels of productivity help allow low-inflationary economic growth. If employee productivity is rising, the bond market should react favorably. However, a decrease could raise inflation concerns that cause bond prices to drop and mortgage rates to rise Wednesday morning. It is expected to show a 1.5% increase in productivity.

March's Goods and Services Trade Balance report will be released early Friday morning. This report gives us the size of the U.S. trade deficit but likely will not have much of an impact on the bond market or mortgage pricing. It is the least important of this week's data.

In addition to this week's economic data, we also have Treasury auctions that can influence bond trading and affect mortgage rates. The Treasury will hold a 10 year Note sale Wednesday and 30 Year Bond sale Thursday. Results of the auctions will be posted at 1:30 PM ET. If they were met with a strong demand from investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding could lead to higher mortgage pricing those afternoons.

Overall, we are expecting to see a fairly quiet week in mortgage rates, especially compared to last week's volatility. As long as the stock markets remain fairly calm, we think the day to day changes in mortgage rates will remain relatively small. Keep in constant contact with your mortgage professional this week for updated rates.

Clarksville Pavillion - WHATS NEXT?

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 05 May 2008 10:11:07 -0700

"While cleanup continues in the wake of four tornadoes that struck Clarksville early Saturday morning, some questions remain unanswered.

Among them: what will be done with the Wilma Rudolph Pavilion at Fairgrounds Park, which was destroyed by an F1 tornado that touched down just after 12:40 a.m. Saturday.

City Chief of Staff Jim Durrett said there are no current plans to rebuild the pavilion, but added that the next month should solidify details about the multi-purpose pavilion's future.

"It's kind of premature," Durrett said of rebuilding plans. "We're still in the recovery mode trying to get the building cleaned up and the park cleaned up."

Durrett said the pavilion was built in the early 1980s and had a unique structure, featuring wooden construction with laminated beams.

Durrett said some of those beams ended up on Highway 48/13 as 110 mph winds ravaged the open-air structure." - The Leaf Chronicle

I personally feel that they should look into building an even better structure than what was out there. The pavillion held tons of outdoor activites. Boxing matches, Parties, Festivals, and a Circus or two. I have nothing against the Pavillion it was a great place and I have taken my family there multiple times but I feel that a "convention center" of sorts would be better utitlized. We have a lot of very cold or very hot or rainy days that, although the pavillion was covered, made it unusable. I think that in the early 1980's when it was built it served Clarksville very well. But as most of you know Clarksville has grown tremendously since 1980 and I think could use something a bit better. What do you think?

I would like to know your opinion of what you would like to see Clarksville re-build there. Would you like a new pavillion rebuilt? A new building of sorts, or something completely different?

TORNADO DEMOLISHED PAVILLION

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 05 May 2008 09:54:18 -0700

"Splinters. That just about all that's left of the pavilion at the Clarksville Fairgrounds. At one corner, a two story chunk of storage and office space stands roofless and open to the elements, a stairway now wide open and rail-less, coming and going nowhere. The parking lot is cordoned off for utility vehicle only: phone, electric, and assorted repair and or demolition crews with cherry pickers for high wire work.

Pieces of the building have been pushed into a pile not unlike a tossed up package of children's "pick up sticks." Lumber littered the roadside and a good portion of the pavilion was blown across the street, pieces blended in a Cole Slaw mix with tree limbs and downed power lines. The finely shredded roofing shingles were generously laced throughout the chain link fence at both the fairgrounds and the neighboring Clarksville Jaycees." - clarksvilleonline.com

Market Commentary 04/28/2008

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 28 Apr 2008 11:25:35 -0700

This week is packed with relevant pieces of economic news in addition to another FOMC meeting. All seven of the reports are considered to be at least moderately important while several are considered very important to the markets and mortgage rates. This makes it likely that we will see plenty of movement in mortgage pricing over the next several days.

The first report comes late Tuesday morning when the Consumer Confidence Index (CCI) for April will be released. This Conference Board index is a key indicator of future spending by consumers. The group surveys 5000 consumers from across the country about their personal financial situations. If sentiment is strong or rising, it is believed that consumers are more apt to continue to spend. However, if they are concerned about issues such as job security and investments, they will probably delay making large purchases. The latter is better for the bond market and mortgage rates because the expected slowdown in spending would ease inflation concerns. But, a sizable increase could hurt the bond market, pushing mortgage rates higher Tuesday. It is expected to show a reading of 62.0, which would be a decline from March's 64.5 reading.

Wednesday brings us the release of two important reports along with the FOMC meeting. The first is the preliminary version of the 1st Quarter Gross Domestic Product (GDP). This is arguably the single most important report that we see on a regular basis. The GDP is the sum of all products and services produced in the U.S. and is considered to be the best indicator of economic growth or contraction. We expect this report to cause major movement in the financial markets Wednesday and therefore the mortgage market also. Analysts are expecting to see output at an annual rate of 0.4%. A smaller increase would be ideal for mortgage rates as it would fuel recession concerns. But, a larger increase would almost certainly cause inflation concerns in the bond market that would push mortgage rates higher Wednesday morning.

The next report of the day is the 1st Quarter Employment Cost Index (ECI), which tracks employer costs for wages and benefits. This gives us a measurement of wage-inflation. If it shows a large increase, we may see inflation concerns cause the bond market to fall and mortgage rates to rise. A smaller than expected increase would be good news for the bond market and mortgage pricing. Current forecasts are showing a rise of 0.8%.

This week's FOMC meeting will begin on Tuesday but will not adjourn until Wednesday afternoon. It will likely adjourn with an announcement of another rate cut to key short term interest rates. Just how much of a reduction is open for debate. Look for another round of volatility following the 2:15 PM ET post-meeting statement.

March's Personal Income & Outlays is the first of two reports due to be posted Thursday morning. This data helps us measure consumers' ability to spend and current spending habits, which is important to the mortgage market due to the influence that consumer spending related information has on the financial markets. If a consumer's income is rising, they are more likely to make additional purchases. This raises inflation concerns and has a negative affect on the bond market and mortgage rates. Current forecasts are calling for a 0.4% increase in income and a 0.2% rise in spending.

The Institute for Supply Management (ISM) will post their manufacturing index late Thursday morning. This is one of the first important economic reports released each month and gives us an indication of manufacturer sentiment. A reading above 50 means that more surveyed trade executives felt business improved during the month than those who felt it had worsened. This points toward more manufacturing activity and could hurt bond prices, pushing mortgage rates higher. But, if we see a drop from last month's reading of 48.6, the bond market should thrive and mortgage rates will probably fall. It is expected to show a reading of 48.0.

The week's most important release is being saved for nearly last. The almighty Employment report will be released Friday at 8:30AM, giving us April's employment statistics. This is where we may see a huge rally or major sell-off in the bond market and large changes in mortgage rates. The ideal situation for the bond and mortgage markets would be an increase in the unemployment rate and fewer than expected new payrolls. Just how much of an improvement or worsening depends on how much variance there is between forecasts and actual readings. This could turn out to be a wonderful day in the mortgage market, but it also carries risks of seeing mortgage rates move higher if the Labor Department posts stronger than expected readings. Current forecasts are calling for a 5.2% unemployment rate and approximately 80,000 jobs lost during the month.

Friday's second report and the last of the week is March's Factory Orders data at 10:00AM. This is a fairly important release because it measures manufacturing sector strength. It is similar to last week's Durable Goods Orders, except this report includes non-durable goods such as food and clothing. Generally, the market is more concerned with the durable goods orders like refrigerators and electronics than items such as cigarettes and toothpaste. This is why the Durable Goods report usually has more of an impact on the financial markets than the Factory Orders report does. Still, a smaller increase than the 0.4% that is expected could push mortgage rates slightly lower, while a larger increase will likely lead to higher rates. But, the employment numbers are of much more importance to the markets than this data is.

Overall, look for plenty of movement in the financial markets and mortgage rates this week. Wednesday or Friday will likely be the most important day of the week with the GDP and Employment numbers being posted along with the FOMC adjournment, but we may see noticeable changes to rates Tuesday also. If this week's reports reveal weaker than expected economic conditions, the bond market should rally and mortgage rates should fall significantly for the week. Keep in constant contact with your mortgage professional this week for updated rates.

CLARKSVILLE'S NEW LOGO

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Fri, 25 Apr 2008 14:35:16 -0700

"Clarksville announced last week it had found a new slogan: "Tennssee's Top Spot."

What do you think about the new logo? I think it is a nice concept and is fine, but I also think that they could have come up with something a little better. I truly think my 8yr old daughter could have come up with this. Then again simple is sometimes the best way to advertise. Tell me what you think.

If you would like to read the story about the unveiling take a look at the link below. You can also read about it in the leaf chronicle.

http://www.clarksvilleonline.com/2008/04/12/clarksville-unveils-new-brand-as-tennessees-top-spot/

Clarksville's Exit 1 Growth

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Fri, 25 Apr 2008 14:18:50 -0700

I like to keep up with new things in Clarksville. I am pleased that we are still growing even in the current state of our economy. That only means that Clarksville's future is still VERY bright. I like to log on to The Leaf Chronicle daily to check out the news in the Clarksville area and have started reading the blogs on various community topics on the site. The topic of the Exit 1 area surfaced. Check it out.

WHAT WOULD YOU LIKE TO SEE COME TO THE EXIT 1 AREA IN CLARKSVILLE?

"Exit 1 has seen a lot of retail growth recently like the Walgreens, Coldstone Creamery, Cheeseburger Charley's, Mr. Gatti's, El Bracereo and Michael's Pizza just to name a few within a block or two of the intersection of Trenton Road and Tiny Town Road.

How many out there would like to see a grocery store in our neighborhood?

If so, which grocery chain would you like to see come to our area? Krogers, Food Lion, Publix, Hill's, Aldi's, Dollar General Grocery, Walmart's branded grocery store, etc. (you name one I may have overlooked)

Also, what other type of restaurants would you like to see come to the area? More sit down establishments or fast food? Name some that are of interest ... TGI Fridays, Cheddars, Burger King, Mrs. Winner's, CiCi's Pizza, Pizza Hut ... you fill in the blank ________________ ?"

http://www.theleafchronicle.com/apps/pbcs.dll/section?category=PluckForum&plckForumPage=ForumDiscussion&plckDiscussionId=Cat%3a617d58a5-cac2-43c8-86dc-4bd1e22f0d43Forum%3a4fc7ecea-8a24-4afd-808d-ebdbe18bd09dDiscussion%3a33b967d5-bfe5-426a-8210-89c08fa12943

Clarksville Kennel Club Dog Show

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Thu, 24 Apr 2008 12:28:03 -0700

The Clarksville Kennel Club will be hosting it's 23rd Annual AKC All Breed Dog Show, Obedience and Rally, this Saturday and Sunday, April 26th and 27th in Clarksville at the Fairgrounds. If you have the time bring the family out and enjoy.

If you need more information please feel free to visit the Clarksville Kennel Club's Website at http://clarksvillekennelclub.homestead.com/index.html.

Willie - MiRo Boxers, Clarksville TN - www.miroboxers.com

What buyers SHOULD know

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Thu, 24 Apr 2008 11:42:20 -0700

Shopping Around

I think I can get you the best deal, provide you with the best service and like so many others turn you into a very satisfied customer. However, if you want to look around, I want to help you do that wisely as well!

First, make sure you are working with an experienced, professional loan officer affliated with a credible institution. The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way.

FTC Alert

According to the Federal Trade Commission (FTC), you may be signing on for trouble if a lender:

Encourages you to falsify your application information to get the loan.
Urges you to borrow more than you need.
Pushes you to accept payment terms that you can't realistically meet.
Fails to give you the required disclosures (e.g., APR, rescission rights, etc.).
Shows up at closing with a totally different loan product than you agreed to.
Asks you to sign blank forms. ("It'll speed things up. We'll fill in the blanks later, trust me.")
Denies you copies of documents you signed.

Four Critical Questions

Here are four simple questions your lender must answer for you. If the lender can not answer these questions to your satisfaction, then move on to the next lender and keep at it until you find a lender that can.

What are mortgage interest rates based on?

The correct answer is Mortgage Backed Securities or Mortgage Bonds sold in the open market and NOT the 10-year Treasury Note. The reason for the confusion is because the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds. However, it is not unusual to see them move in opposite directions. I suggest you NOT work with a lender who has their eyes on the wrong indicators.

What is the next Economic Report or event that could cause interest rate movement?

A professional lender should always have an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate.

When Bernanke and the Fed "change rates", what does this mean... and what impact does this have on mortgage interest rates?

The answer may surprise you. When the Fed makes a move, they are changing a rate called the "Fed Funds Rate". This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Mortgage rates most often will actually move in the opposite direction as the Fed change, due to the dynamics within the financial markets.

What is happening in the market today and what do you see in the near future?

If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as what is coming up in the near future, you are talking with someone who is still reading last week's newspaper, and probably not a professional with whom to entrust your home mortgage financing.

Be smart... Ask questions... Get answers!

'Four Critical Questions" Source: adapted from www.suewoodard.com

Market Update 04/21/08

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 21 Apr 2008 09:54:22 -0700

Market Commentary

This week is fairly light in terms of economic news scheduled for release. There are four reports scheduled, but only one of them is likely to cause much movement in mortgage rates. Accordingly, there is a fairly decent possibility of seeing a fairly calm week in the mortgage market.

The week's first piece of data is one of the least important of all four. The National Association of Realtors will post March's Existing Homes Sales numbers Tuesday morning, which are expected to show a drop from February. A similar report to this one and actually the week's least important data- March's New Home Sales will be released Thursday morning. Both of these releases give us an indication of housing sector strength and mortgage credit demand, but unless they vary greatly from analysts forecasts, we don't think they will cause much movement in mortgage rates.

March's Durable Goods Orders will be posted early Thursday morning. This report gives us an indication of manufacturing sector strength by tracking orders for big-ticket items at U.S. factories. Current forecasts call for a small increase in orders. A smaller than expected increase could help boost bond prices and cause mortgage rates to drop Thursday morning. However, a stronger than expected reading would indicate that the manufacturing sector is gaining strength quicker than many had thought. This would be negative news and would probably help drive mortgage rates higher.

Also Thursday is a 5-year Treasury Note auction. These sales sometimes bring volatility to the bond market ahead of the actual sales as investors prepare for them. However, that weakness is usually only temporary and will correct itself after the sale is complete as long as it was met with a decent demand from investors. Results of the sale will be posted at 1:00 PM ET. If there was a strong demand, bond prices should rise during afternoon trading. But, lackluster interest could lead to weakness and upward revisions to mortgage rates.

The last important data of the week is the University of Michigan's update to their Index of Consumer Sentiment for April. This report gives us an indication of consumer sentiment. We don't expect it to have a significant impact on bonds and mortgage pricing unless it varies greatly from forecasts Current forecasts are calling for an upward revision to 64.2.

Overall, look for Thursday to be the most important day of the week with the Durable Goods report being posted and the Treasury auction. The rest of the week will likely be heavily influenced by the stock markets. If the major stock indexes continue to rally, bonds will likely suffer and mortgage will move higher. If stocks pull back, we could see mortgage rates move lower this week. Keep in touch with your mortgage professional through out the week for updated rates.

I am still here!

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Thu, 17 Apr 2008 15:23:41 -0700

Media coverage of the "mortgage crisis" has been sometimes contradictory and often confusing. However, I want you to know that I'm still here for you... and I will continue to be here whenever you need me. I am committed to continuing to provide you with the loan products you need and the service and quality you deserve, regardless of the state of the mortgage market. I would also love to provide the same to your friends and family. If you are thinking of moving up or refinancing, or know someone who is, please give me a call.

Market Update 04/16/2008

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Wed, 16 Apr 2008 12:12:55 -0700

Market Commentary

This week brings us the release of seven relevant economic reports for the bond market to digest. We are also heading into corporate earnings season which could lead to fluctuations in the stock markets. If earnings come in lighter than estimates, the stock markets may fall, leading to an influx of funds into bonds. But, if earnings and forecasts are strong, the major stock indexes may rally, pulling funds from bonds and leading to higher mortgage rates. Some of the most influential companies don't report quarterly earnings for a few more weeks, but the early releases could affect optimism about what those big named companies' earnings will show.

The first important report comes early this morning when the Commerce Department will release March's Retail Sales data. This piece of data gives us a measurement of consumer spending, which is very important because consumer spending makes up two-thirds of the U.S. economy. Current forecasts call for a 0.1% increase in sales last month. If we see a larger increase in spending, the bond market will probably fall and mortgage rates will rise. However, a weaker than expected reading could push bond prices higher and mortgage rates lower tomorrow.

The Labor Department will post March's Producer Price Index (PPI) early Tuesday morning, giving us an important measurement of inflationary pressures at the producer level of the economy. There are two portions of the report that analysts watch- the overall reading and the core data reading. The core data is more important to market participants because it excludes more volatile food and energy prices. If it shows rapidly rising prices, inflation fears may hurt bond prices, leading to higher mortgage rates Tuesday morning. However, a small increase, or better yet a decline in prices, would be good news for the bond market and mortgage rates. Current forecasts are calling for a 0.4% increase in the overall reading and a 0.2% rise in the core data.

There are four pieces of news scheduled for release Wednesday. The first is the sister report of the PPI. March's Consumer Price Index (CPI) will be released early Wednesday morning. This index is very similar to Tuesday's PPI, but tracks prices at the more important consumer level of the economy. This is one of the most important pieces of data we see each month, so stronger than expected readings will undoubtedly lead to higher mortgage rates. Current forecasts are calling for an increase of 0.3% in the overall index and 0.2% in the core data.

March's Housing Starts report is the second report to be posted Wednesday morning, but it will most likely be a non-factor in the market. It gives us a measurement of housing sector strength and mortgage credit demand, however, usually doesn't cause much movement in mortgage pricing unless it varies greatly from forecasts. It is this week's least important report.

The third is March's Industrial Production report at 9:15 AM ET. It gives us a measurement of output at U.S. factories, mines and utilities, translating into an indication of manufacturing sector strength. Current forecasts are calling for a decline in production of 0.1%. Since signs of a weakening economy are considered favorable to bonds and therefore mortgage rates, a larger decline would be good news for mortgage pricing. However, the CPI is by far the most important data of the day.

The Federal Reserve will post its Fed Beige Book report at 2:00 PM ET Wednesday. This report, which is named simply after the color of its cover, details economic conditions throughout the U.S. by region. Since the Fed relies heavily on it during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any surprises.

Thursday's sole monthly report is the Conference Board's Leading Economic Indicators (LEI). This data attempts to measure economic activity over the next three to six months. If it estimates an increase in activity, the bond market may fall and mortgage rates could rise. If it shows weaker than expected readings, the bond market may rally and mortgage rates should move lower. This is considered to be a moderately important report, so we may see some movement in rates as a result of this report. It is expected to show an increase of 0.1%.

Overall, look for the most movement in rates early in the week. The Retail Sales, PPI and CPI reports are the biggest names on the agenda. Any of the three can cause significant movement in the markets and mortgage rates, so please keep in touch with your mortgage professional throughout the week.

Market Commentary 02/24/2008

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 25 Feb 2008 12:47:24 -0800

Market Commentary

Monday's bond market has opened in negative territory following early stock gains and stronger than expected housing news. The Dow is currently up 94 points while the Nasdaq has gained 15 points. The bond market is currently down 18/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.

The only economic data released this morning was January's Existing Home Sales report. The National Association of Realtors releases this data that tracks home resale in the U.S. It showed a slight drop in sales, but not nearly as much of a drop that analysts had expected. With this being today's only news, it has had a moderate impact on today's bond trading and mortgage rates.

The first big report of the week will be released early tomorrow morning when we will see the Labor Department's Producer Price Index (PPI) for January. It measures inflationary pressures at the producer level of the economy. There are two portions of the report that analyst's watch- the overall reading and the core data reading. The core data is more important to market participants because it excludes more volatile food and energy prices. If it shows rapidly rising prices, fears of inflation may rise, hurting bond prices and leading to higher mortgage rates tomorrow morning. However, a smaller than expected increase or better yet a decline in core prices would be good news for the bond market and mortgage rates. It is expected to show an increase of 0.4% in the overall reading and a 0.2% rise in the core data.

Also tomorrow morning is the release of February's Consumer Confidence Index (CCI). This Conference Board index measures consumer confidence in their personal financial situations, giving us a measurement of consumer willingness to spend. Since consumer spending makes up two-thirds of the economy, related data is considered important in terms of gauging economic activity. It is expected to show a decline in confidence from 87.9 in January to 82.5 this month.

Overall, look for plenty of movement in bond prices and mortgage rates this week. We think we will see the most movement either tomorrow or Wednesday, but several of the week's reports can cause movement in rates. This would be a good week to maintain contact with your mortgage professional.

Helpful Links

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 18 Feb 2008 11:57:59 -0800

If you are first time home buyer or and Agent helping one these links ar full of resources to assist your client.

http://www.state.tn.us/thda/
Tennessee Housing Development Agency
The state has several programs to assist homebuyers. Research before you buy!

http://www.hud.gov/buying/index.cfm
This is a great checklist of things to think about before you make your move, brought to you by HUD. There are also some great links!

Rural housing loans are a GREAT way for many people in Tennessee or Kentucky to buy a home with NO down payment and GREAT rates! http://www.rurdev.usda.gov/rhs/

I work with a lot of Veterans, this site is full of information for them: http://www.homeloans.va.gov/

market commentary Feb. 18th

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Mon, 18 Feb 2008 11:17:08 -0800

Market Commentary

There are only three economic reports worth watching this week that are likely to affect mortgage rates. Two of them are scheduled for release the same day, meaning we may see a relatively calm week for mortgage rates. The financial markets are closed today in observance of the President's Day Holiday and will re-open Tuesday morning. We are open for business today, but do not expect to see new rates issued until Tuesday.

Wednesday morning brings us the release of two of this week's relevant news and data. The Labor Department will release January's Consumer Price Index (CPI) at 8:30 AM ET, which measures inflationary pressures at the very important consumer level of the economy. With exception to maybe the Employment report, the CPI is the most important report that we see each month. It's results can have a huge impact on the financial markets, especially long-term securities such as mortgage-related bonds. It is expected to show a 0.3% increase in the overall index and a 0.2% rise in the more important core data. If we see weaker than expected readings, bond prices should rise and mortgage rates would likely fall.

The second report of the day is January's Housing Starts. This report gives us an indication of housing sector strength and mortgage credit demand. However, it isn't considered to be of high importance to the bond market or mortgage pricing. It likely will not affect rates unless it varies greatly from forecasts.

Also, Wednesday afternoon brings us the release of the minutes from the last FOMC meeting. Traders will be looking for any indication of the Fed's next move regarding monetary policy. They will be released at 2:00 PM ET, therefore, any reaction will come during afternoon trading.

The third and final relevant economic data of the week is the Leading Economic Indicators (LEI) for January late Thursday morning. This Conference Board report attempts to predict economic activity over the next three to six months. It is expected to show a 0.1% decline, meaning that economic activity may slow slightly in the near future. A larger than expected drop would be good news for the bond market and mortgage rates.

Overall, the most important day of the week is obviously Wednesday with the release of the CPI and the Fed minutes. We are expecting to see a fairly quiet week for the most part, particularly Tuesday and Friday. That is unless the stock markets post significant gains or losses, which then could influence bond trading and possibly mortgage rates those days.

Home Loans - Clarksville Tn

Andrea Sommermeyer (Better Homes & Gardens Real Estate - Hometown Connection) — Fri, 01 Feb 2008 14:24:12 -0800

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