KISSED BY A.....ECONOMIC UPDATE - 05/30/08 03:27 PM
No one was sending roses to the U. S. bond markets this week after the 10 year treasuries (30 year fixed rates) were kissed by an ugly stick. The “stick” was the revision of the first quarter Gross Domestic Product (What we are buying; How much are we paying; If the products we are shipping outside of our borders , exports, is balanced with the products we are bringing in, imports) indicating our economy is stronger than originally reported. Investors did the happy dance in their Manolo Blaniks (visual) and left the safe haven of the treasuries for the stocks that … (4 comments)

Baby, You Can Drive....Economic Update - 05/23/08 01:50 PM
This weekend, we will be parking our gas thirsty SUV and walk to the movies to see Indiana Jones. Sticker shock took on a whole new meaning with gasoline in the United States hitting $4.00 a gallon and $9.00 a gallon in Europe (it is not a typo). After our long walk to the theater (since public transportation in Maricopa County is a challenge) we will be watching Indy without our snacks since popcorn prices have increased due to the shortage of corn. That’s okay; we were getting a little chunky anyway. The markets are absorbing the dramatic increases in oil … (1 comments)

It is always sunny....Economic Update - 05/19/08 03:20 PM
Is that the sun peaking through the clouds? Housing resales in some communities are showing signs of recovery, mainly spurred by sales of REO’s. Wednesday’s Consumer Price Index indicated that the prices we are paying are in line with what we are making, therefore keeping the big “I” (inflation) away from the door. Friday’s construction starts showed a surprising gain, the strongest showing in two years. New apartment complexes were the cause for the increase, not residential housing. Secretary of Treasury, Hank Paulson, stated that the financial markets are improving. Ben Bernanke, Fed Chair, speaking at a Fed conference in Chicago, … (1 comments)

MORTGAGE CHANGES! - 05/14/08 12:27 PM
Mortgage Update
 
There are only two types of loans: Conventional and Government (FHA,VA and The Department of Agriculture, more on the Government loans in next weeks e-mail)  Conventional Loans with loan amounts below $417,000 are virtually all purchased by Fannie Mae and Freddie Mac.  It is Fannie and Freddie's guidelines that lenders are following for loan approval. When the lender funds the loan they immediately "ship" the loan to Fannie or Freddie and wait for their vault to be replenished.  If the loan passes audit, all guidelines are met, the lender gets their money in return for the loan.
 
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WHAT THE WORLD NEEDS....ECONOMIC UPDATE - 05/09/08 12:32 PM
The International Money Fund issued a statement today stating the main worries for our globe today is inflation. Food and Energy (oil) costs are at an all time high and it is not just the third world countries that are at risk. The rising costs will affect all of us. Some analysts are predicting that gas will be over $4.00 per gallon to celebrate the summer travel season. Hmmm….coincidence? The U. S. can spend a trillion dollars to start a war in Iraq, send tax rebates to millions, yet we cannot figure out how to lower the cost of gasoline? The … (0 comments)

FOOD FOR......ECONOMIC UPDATE - 05/02/08 01:10 PM
U. S. Investor’s happy thoughts paid off in this busy week of positive economic reports. Personal Consumption grew by .04 per cent in March up from the previous month (could it be from feeding our cars?), manufacturing activity continued to grow, and our exports increased. The Gross Domestic Product, the leading indicator for “are we or are we not in a recession”, first quarter results says no, we are not in a recession, but just barely. The Fed dropped their rate as expected by .250 (Does not effect the mortgage rates!). The employment numbers today were not good, but much better … (0 comments)

 

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