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Week In Review - November 2nd - 6th, 2009

By
Mortgage and Lending with Homeowners Financial Group USA, LLC

Interesting how perspective can change in just one quick second.  As soon as news that the tax credit extension had been approved (see attached document), it seemed people weren't quite as pressured to buy a home, "right now".  That isn't at all a scientific observation, but perhaps just a feeling since there were a lot of people, realtors and lenders included, who breathed a sigh of relief.  As a result of the extension, a few borrowers that were concerned about the deadline can now take a bit more time to find the home that works the best for them without feeling rushed.  Not to mention the added benefit of continuing to help first time home buyers with a lasting benefit in the form of cash back from the government (even if it sets the deficit nationally further in the red - yes the statement is too political for this email so no further mention will be made of it, excuse the lapse in judgement...HAHA).  Again, it's that whole perspective thing.

Nevertheless, rates held steady through the week and at this point on Friday, the market is saying to "bail out", which just means to be patient to see how the market moves.  Again, there isn't a better time to buy a home then when you are ready.  And if you are ready when rates are historically low and the government is giving you money, then by all means...buy a home.

Besides the most important news (see above) there were some other interesting items:

•·         Consumer Credit Fell - AGAIN! - For the eighth straight month consumer credit fell and people were borrowing money at a slower pace than in the past.  It seems we are moving toward cash and away from credit.  But if it is any indication on the upcoming Holiday season, many retailers may be in for some hard times.  In some cases, there are stories of retailers beginning their "Black Friday" sales this weekend.  Retailers such as Walmart (no surprise there J ), Sears, JC Penney, etc. are having blowout sales every weekend leading up to "Black Friday", all in the hopes of capturing some of that consumer spending which may be very muted this year.  It will be an opportunity for many to find great deals throughout the end of the year and leading all the way up to Christmas.

•·         Credit Policies continue to tighten -  The question always looms: when will the easing on the credit markets occur?  When will it not be a battle to the finish line, with the Loan Officer asking for the borrowers' blood to get the deals done???  It seems that in some areas changes are taking place, but not always for the good.  For example, trailing secondary wage earner income is no longer eligible income for any conventional loan transaction.  (Trailing Secondary income - if a borrower is relocating and the old job will end before the new job begins, the old income cannot be used to qualify). Investors are now asking for three months bank statements for retirement/pension income.  There are more guideline changes and credit policy changes that will increase the paperwork needed for many borrowers.  Surely one would think these are not standard with every investor, however, they are derived from Fannie Mae and Freddie Mac and will become commonplace as we move forward.

•·        Phoenix Coyotes are 10-6, Phoenix Polar Bears work to raise money for Breast Cancer - If you are a hockey fan, which I am, then you will be pleased with the new brand of hockey the Coyotes are playing.  They compete and battle all over the ice, it isn't always flashy but they seem committed to defense and playing the game with intelligence which has led to a decent start.  Sure, it will still be a long shot to make the playoffs, but at least they are enjoyable to watch.  So long Gretzky!  If you are interested in continuing the donations for Breast Cancer, the Junior team that I am involved with is hosting a walk tomorrow morning.  You can read more about it at the website: Making Strides for Breast Cancer.  You can also check out the webpage at www.phoenixpolarbears.com to see our website and its facelift to commemorate Breast Cancer Awareness. 

(P.S.  We carry Breast Cancer awareness into November due to our season schedule - but, hey shouldn't we be aware of dangers to our loved ones at all times)

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