If last week didn't have your head spinning from the FOMC meeting, the first State of the Union Speech by President Obama and mixed remarks from Barney Frank, then this week should be right up your alley.

Monday's first economic report will be the January's Personal Income and Outlays. Not only do the experts expect an increase in consumer's ability to spend, but they also expect current spending to rise both by 0.3%. Also on slate for tomorrow is January's Institute of Supply Management (ISM) Manufacturing Index. As one of the earliest pieces of economic data released each month, expectations are for the ISM Index to still show growth but less than December.

Pending Home Sales will be released on Tuesday and should be a non-event as winter doldrums and the holidays have distracted potential home buyers thus far. This report is not a major technical report but will impact the psychology of traders if the report shows any dynamic growth.

Wednesday will be led off by the ADP National Employment Report as a precursor to Friday's Employment report from the Labor Department. Although not considered to be as all inclusive as Friday's report, the ADP Report tends to shed light on the direction of white collar jobs.

December's Factory Orders and 4th Quarter Productivity will be the highlights on Thursday. Although both of these reports reflect the direction of the manufacturing sector, they should be a non-factor unless they vary significantly from Economists forecasts.

The most important report of the week and almost every month will come on Friday with the release of the January Employment. Forecasts are in for the addition of 13,000 new jobs with the national unemployment rate to remain at 10.0%. It has been said that the US economy has to produce a minimum of 125,000 jobs a month just to stay up with population growth. Whatever the number, the employment numbers will surely provide direction for the markets not only on Friday, but also for weeks to come.

Quick general rule of thumb when keeping an eye on mortgage rates.

• Weak Economic News: $$$ from Stocks --> Bonds = Home Loan Rates Improve
• Strong Economic News: $$$ from Bonds --> Stocks = Home Loan Rates Worsen

Want to see what other economic reports might impact home buyers in the coming week? Stop by and check out the Mortgage Market Update Provided to You Exclusively by The Barath Group.

This Is The Week Ahead for January 31st.

Five Recent Blog Posts of Interest:

1. The Irony - HAMP Offered Stated Income Loan Modifications
2. Let's Get Excited Indianapolis, BarCamp is Coming! #rebcin
3. How Long Can FHA Sustain Their Role in the Housing Market?
4. What Are You Doing to Keep The Dream Alive?
5. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

Thank you for reading my ActiveRain blog where I share my personal insight as a mortgage planner.

Did you know that I also write an outside blog dedicated to Northwest Indiana mortgages and real estate?

This is a summary of my newest blog entries from the past week from WelcomeHomeNWI.com.

Publish Date: January 29, 2009
Are Home Values Up or Are Home Values Down?
Excerpt: Reporting on a two-month lag, the government said home values rose 0.7 percent in November.  National home prices are at their highest point since February 2009. But before we look too much into...

Publish Date: January 27, 2009 - Evening Edition
Putting Today's FOMC Statement into Plain English
Excerpt: The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent. In its press release, the FOMC noted that the U.S. economy "has continued to...

Publish Date: January 27, 2009
My Mortgage Rate Lock Strategy Before FOMC Press Release
Excerpt: The Federal Open Market Committee ends a scheduled, 2-day meeting today in Washington. It's the first of 8 scheduled meetings for the policy-setting group in 2010. The group adjourns at...

Publish Date: January 26, 2009
Good News Home Buyers - Existing Home Sales Tanked
Excerpt: Just one month after from blowing away Wall Street, December's Existing Home Sales hit the skids, shedding nearly 17 percent and falling to a 4-month low. Don't be alarmed, though. The plunge...

Publish Date: January 25, 2009
What's Ahead for Mortgage Rates This Week: January 25th
Excerpt: Conforming and FHA mortgage rates improved last week on the combination of weaker-than-expected economic data and new anti-banking rhetoric from the White House. The S&P 500 shed...

Weekly Blog Update for the Week Ending January 30th.

Five Recent Blog Posts of Interest:

1. The Irony - HAMP Offered Stated Income Loan Modifications
2. Let's Get Excited Indianapolis, BarCamp is Coming! #rebcin
3. How Long Can FHA Sustain Their Role in the Housing Market?
4. What Are You Doing to Keep The Dream Alive?
5. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

With so much talk about the Federal Open Market Committee's press release yesterday, Apple's new iPad, the lackluster state of the union address last night and a variety of other business related news, I wouldn't blame you for missing the anti-climatic revisions to President's Obama foreclosure prevention plan.

Today's press release by the Treasury Department was to have been the next step forward to improve the effectiveness of the Making Home Affordable Program (HAMP). If you recall, HAMP was launched last April to slow down the rapid rise in foreclosures through loan modifications. Here are some interesting results of HAMP as of year end 2009.

• Only 66,500 Permanent Loan Modifications; 900,000+ Application Requests
• 100+ Servicers Participating in HAMP; Accounts for 89% of ALL Mortgage Debt
• $500 per Month - Median Monthly Savings

In the haste of rolling out HAMP last summer, the Treasury Department allowed applicants to get approved for a temporary loan modification based on an oral application. It was then left to the servicers to chase down the paperwork over the 3 month trial period. If everything was accurate and the homeowner made the new payments on time, then the temporary loan modifications would become permanent.

Right now the HAMP only has a 7.4% success rate from application to permanent loan modification. Consequently, the Obama administration and the Treasury Department want to improve their success rate.

Can you guess what the big announcement was today?

In order to improve their success rate, they want to be able to get more homeowners converted from their trial loan modifications to permanent loan modifications. How will they accomplish this task?

From now on, homeowners will be required to submit all paperwork in advance of being offered a temporary loan modification. This way all that is left is for the homeowner to make their payments for 3 months. There are other things that were revised and updated, so go ahead and read the complete Supplemental Directive 10-01, Home Affordable Modification Program - Program Update and Resolution of Active Trial Modifications.

The Irony - HAMP Offered Stated Income Loan Modifications

Five Recent Blog Posts of Interest:

1. Let's Get Excited Indianapolis, BarCamp is Coming! #rebcin
2. How Long Can FHA Sustain Their Role in the Housing Market?
3. What Are You Doing to Keep The Dream Alive?
4. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates
5. Weekly Blog Update for the Week Ending January 23rd

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

As I am writing this post, I have my HP Mini 2140 charging up and downloading any updates that it may need in preparation for Real Estate BarCamp Indiana tomorrow. I also have my iPhone plugged into iTunes to see if there are any apps that I might need updated and/or downloaded in preparation to endure this day long event.

I have had many individuals ask why I would subject myself to waking up at 4 AM, CST to make the 2-1/2 hour drive from my home in Chesterton Indiana all the way to Indianapolis Indiana where the event is to take place. That's a good question.

First of all, what is Real Estate BarCamp (aka. REBarCamp)? According to Andy Kaufman, the founder, RE BarCamp is...

"an ad-hoc gathering born from the desire for people to share and learn in an open environment. It is an intense event with discussions, demos, and interaction from attendees."

Nobody is paid to speak and all of the events are coordinated by volunteers and paid by sponsors. It should be noted that this BarCamp is being hosted by not only the Indiana Assocation of REALTORS, but also the Indiana Commercial Board of REALTORS and will have Indiana Governor Mitch Daniels as a featured speaker.

Consequently, people gravitate for the purposes of sharing what really works and not just the theory of what should work. I was fortunate to witness one of the larger RE BarCamp events when it was hosted in Chicago by the National Association of Realtors.

This leads me to my second and primary purpose of attending this event. Since the original concept of this event evolved from a technology gathering, most of what is discussed is the proper methods to integrate technology into the human experience of real estate.

In other words, how can we enhance the law of attraction through all things digital. Want to know more? Come join us on Monday, January 25th, from 9 AM - 5 PM, EST. Can't make the event in person, follow the ongoing conversation on twitter.com with the search hash tag of #rebcin.

Let's Get Excited Indianapolis, BarCamp Is Coming! #rebcin

Five Recent Blog Posts of Interest:

1. Weekly Blog Update for the Week Ending January 23rd
2. How Long Can FHA Sustain Their Role in the Housing Market?
3. What Are You Doing to Keep The Dream Alive?
4. Weekly Blog Update for the Week Ending January 16th
5. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

Thank you for reading my ActiveRain blog where I share my personal insight as a mortgage planner.

Did you know that I also write an outside blog dedicated to Northwest Indiana mortgages and real estate?

This is a summary of my newest blog entries from the past week from WelcomeHomeNWI.com.

Publish Date: January 22, 2009
Housing Starts Down Now, But Housing Permits Heat Up
Excerpt: A "Housing Start" is a privately-owned home on which construction has started. It's an important gauge of housing health because it tracks new housing stock nationwide. In December 2009, starts...

Publish Date: January 21, 2009
New FHA Guidelines Will Be Tougher and More Expensive
Excerpt: Securing an FHA mortgage is about to get more expensive. In a statement issued Wednesday, the Federal Housing Authority outlined policy changes to its mortgage assistance program. The shift is...

Publish Date: January 20, 2009
100 Days Left To Claim Your Homebuyer Tax Credit
Excerpt: November 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Cred it program.  There's 100 days left to claim it. The expiration date of the up-to-$8,000 tax credit...

Publish Date: January 19, 2009
What's Ahead for Mortgage Rates This Week: January 19th
Excerpt: Mortgage markets showed little conviction last week, carving out just a narrow trading channel. There was very little data on which for markets to move, leaving mortgage rates momentum-bound. Luckily...

Publish Date: January 18, 2009
Martin Luther King Day - I Have A Dream
Excerpt: Every year I am asked by many the following question. What is it about this day that we need to celebrate? Up until last year, I actually misunderstood the meaning behind this holiday dedicated to...

Weekly Blog Update for the Week Ending January 23rd.

Five Recent Blog Posts of Interest:

1. How Long Can FHA Sustain Their Role in the Housing Market?
2. What Are You Doing to Keep The Dream Alive?
3. Weekly Blog Update for the Week Ending January 16th
4. Weekly Blog Update for the Week Ending January 9th
5. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

When it comes to home buyers in Northwest Indiana, FHA insured mortgages have become the preferred choice of record. This also appears to be the sentiment throughout the country as FHA insured loans have risen to account for 25% of all mortgages as recently as the 3rd quarter of 2009 according to Inside Mortgage Finance.

FHA has definitely received the lion share of the mortgage spotlight as it has made a precipitous return to the landscape of residential financing since 2006 when it only insured 2% of the mortgage market.

The big discussion today was about FHA's role and ability to walk the thin line of becoming the next big bubble for the real estate industry or the savior of the housing market that Congress wishes them to become. Real estate and mortgage experts across the country were focused on the article Souring Mortgages, Weak Market Force FHA to Walk a Tightrope published by the Wall Street Journal.

There is much debate on whether FHA should or should not be expanded to continue to levy the housing market in 2010.

There are valid arguments on both sides of the line. For instance, many claim that FHA insured loans has been the catalyst that has stabilized and in some markets even stimulated a housing recovery. While others proclaim the growth of looming trouble in FHA's insured portfolio referenced in the chart has become too big and will be too costly.

Here are some key point from the article that have some shaking in their boots:

• Demand for Higher Minimum FICO Score (i.e. 680)
• Demand for Larger Minimum Down Payments (i.e. 5%)
• ~24% Default Rate on FHA Insured Mortgages Originated in 2007-2008
• FHA No Longer Meets it's Minimum Capital-Reserve Ratio due to Defaults
• Mortgage Fraud Stemming from FHA-Approved Lenders (TB&W, LendAmerica, etc...) 

Whether you are for or against FHA taking a greater role, FHA is sure to be a part of the residential mortgage landscape for the foreseeable future. The real question of the day should be...

How Long Can FHA Sustain Their Role in the Housing Market?

Five Recent Blog Posts of Interest:

1. What Are You Doing to Keep The Dream Alive?
2. Weekly Blog Update for the Week Ending January 16th
3. Weekly Blog Update for the Week Ending January 9th
4. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates
5. This Is The Week Ahead for January 3rd

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

Every year I am asked by many the following question. What is it about this day that we need to celebrate?

Up until last year, I actually misunderstood the meaning behind this holiday dedicated to Martin Luther King, Jr.

I originally thought that this holiday was a day to recognize a dream towards equality.

Through my research, I learned that this day did not become a federal holiday until November 3, 1983 when former President Ronald Reagan singed the Holiday Bill establishing the 3rd Monday of January as Marting Luther King, Jr a National Holiday. Although it was signed in 1983, official celebration did not being until 1986.

Martin Luther King Day is more than acknowledging the fight against inequalities. Ultimately, this holiday is dedicated to nonviolence and all those who endured violence passively to unify humanity.

What Are You Doing to Keep The Dream Alive?

Five Recent Blog Posts of Interest:

1. Weekly Blog Update for the Week Ending January 16th
2. Weekly Blog Update for the Week Ending January 9th
3. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates
4. This Is The Week Ahead for January 3rd
5. Weekly Blog Update for the Week Ending January 2nd

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

Thank you for reading my ActiveRain blog where I share my personal insight as a mortgage planner.

Did you know that I also write an outside blog dedicated to Northwest Indiana mortgages and real estate?

This is a summary of my newest blog entries from the past week from WelcomeHomeNWI.com.

Publish Date: January 15, 2009
Optimism within RealtyTrac's 2009 Foreclosure Report
Excerpt: Like real estate, it appears that foreclosure activity is a local phenomenon, too. As reported by RealtyTrac.com, more than half of all foreclosure-related activity in 2009 came from just 4...

Publish Date: January 14, 2009
December Retail Sales Drop and Now Mortgage Rates Follow
Excerpt: Mortgage rates are dropping this morning on weaker-than-expected Retail Sales data from December. Lower rates means more bang for your home-buying buck. Excluding motor vehicles and parts, December's "ex-auto" sales...

Publish Date: January 13, 2009
Top 10 Cities for Bargain Homes
Excerpt: As the housing market improves across the country, certain cities are emerging as relative bargai ns.  Some areas, like Miami, were hit hard by the recession, and other areas are buoyed...

Publish Date: January 12, 2009
Jobs Report Wasn't All Bad - Mortgage Rates Did Fall
Excerpt: Despite the headlines, it's important to remember that December's jobs report wasn't all bad news.  Sure, the economy shed 85,000 jobs last month and the Unemployment Rate failed to dip...

Publish Date: January 11, 2009
What's Ahead for Mortgage Rates This Week: January 11th
Excerpt: Data was sparse through 2010's first trading week last week, setting the stage for a week of momentum trading. In up-and-down trading, mortgage pricing improved overall but the best rates...

Weekly Blog Update for the Week Ending January 16th.

Five Recent Blog Posts of Interest:

1. Weekly Blog Update for the Week Ending January 9th
2. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates
3. This Is The Week Ahead for January 3rd
4. Weekly Blog Update for the Week Ending January 2nd
5. Will You Make A Difference with Your Life in 2010?

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

Thank you for reading my ActiveRain blog where I share my personal insight as a mortgage planner.

Did you know that I also write an outside blog dedicated to Northwest Indiana mortgages and real estate?

This is a summary of my newest blog entries from the past week from WelcomeHomeNWI.com.

Publish Date: January 8, 2009
2010 FHA Loan Limit Restrictions As Outlined by HUD
Excerpt: FHA home loans are federal assistance mortgages made by lenders, and backed by the government. The FHA doesn't make loans to homeowners -- it insures loans made to homeowners by...

Publish Date: January 7, 2009
Surprise! Federal Reserve Is Uncertain About The Economy
Excerpt: Both mortgage rates and home affordability took a turn for the better Wednesday after the Federal Reserve released its December 15-16, 2009 meeting minutes. The Fed Minutes is a follow-up piece...

Publish Date: January 6, 2009
Home Buyers Get Green Light as Pending Home Sales Plunge
Excerpt: More positive signals from housing -- home values are still on the rise. According to the Federal Housing Finance Agency, after posting its first quarterly increase since 2007 this past...

Publish Date: January 5, 2009
How Will Housing and Mortgage Rates Do in 2010?
Excerpt: 2010 is just a few days old and already the "experts" are making predictions for the year. Housing calls and mortgage rate predictions run the gamut: Home prices will...

Publish Date: January 4, 2009
What's Ahead for Mortgage Rates This Week: January 4th
Excerpt: Mortgage markets were relatively flat last week during holiday-shortened trading.  After starting the week with a Monday surge higher, mortgage rates settled down through Tuesday and remained somewhat flat into...

Weekly Blog Update for the Week Ending January 9th.

Five Recent Blog Posts of Interest:

1. How Will Your Real Estate Business Be Affected by Higher Mortgage Rates
2. This Is The Week Ahead for January 3rd
3. Weekly Blog Update for the Week Ending January 2nd
4. Will You Make A Difference with Your Life in 2010?
5. Don't Miss Virtual RE BarCamp on January 4th

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index

It seems as if everyone has finally come to the consensus that mortgage rates have only one direction in 2010 and that is up. Many will also agree that as mortgage rates continue to rise that home affordability will decline as they are inversely related.

What isn't so clear is the relationship between higher mortgage rates and the overall impact on real estate transactions.

I was watching CNBC's Diane Olick - Daily Realty Check for an update on Commercial Mortgage Backed Securities early this afternoon. Although the delinquency rates are even more frightening in commercial real estate, the tail end of her update is what Realtors in the residential arena really need to pay attention.

Did you catch that?

Mortgage applications hit a six month low as mortgage rates increased during the holiday week of Christmas. 23% less as mortgage applications came to a halt. It should be noted that since mortgage rates hit their all time low near Thanksgiving weekend, a 30 year fixed home loan rate had increased by 0.500% - 0.625% to end 2009.

If a half percentage increase in residential home loan rates could impact mortgage applications by 23 percent...

How Will Your Real Estate Business Be Affected by Higher Mortgage Rates?

Five Recent Blog Posts of Interest:

1. This Is The Week Ahead for January 3rd
2. Weekly Blog Update for the Week Ending January 2nd
3. Will You Make A Difference with Your Life in 2010
4. Don't Miss Virtual RE BarCamp on January 4th
5. How Will Higher Mortgage Rates Impact the Housing Recovery

FEATURED Blog Posts on ActiveRain:

• Realtors®Please Stop with the New Listings!
• Existing-Home Sales Up, But Not All It's Cracked Up To Be!
• How Legitimate is the NAR Housing Affordability Index