All of the financial news is really of concern. I think I just need to stop reading the WSJ because it is so depressing I am afriad it will change my positive thinking.
If you have not checked out Dani Johnson yet you should. She has quite a following for anything from sales training to debt reduction. I went to her conference this weekend and it was really insiteful and amazing to see all the people she has helped.
As I get older there are very few things that amaze me. I see or hear things now and just shake my head because it is just so crazy. One thing I still find hard to believe though is how crazy parents get about youth sports. People act like these children are paid professionals. They over work them, yell at them and feel they have the right to yell at the other team to "get in their heads". I have heard parents belittle a player on the other team and say things you should never even say to a grown adult you are in a fight with. It is really sad and disgusting.
Everyone hits a point in their lives when they need to take a look at who is around them and why. If you stop and look you will probably find that you have many people around you that do nothing but bring negative energy to you. You will have people that you are "friends" with just because you have history but you have nothing in common with them now. Take a "friend" inventory and see who really is a positive force in your life.
Well Casey Anthony has been found innocent. I really want to believe in our justice system and I am always hoping it will get things right. Clearly, if this woman did not kill her child she knows who did. I am a mother and I can not even imagine that if my child was missing would I be out partying and not looking for him/her. The entire thing is disgusting. The public outrage is amazing. Ms Anthony is not going to be able to walk out of her house without being subjected to mass torture of some kind. Deserved or not?
What in the world do we do with the Post Office. They are losing money right and left, they employ so many people and their retirement system is now in jeopardy. They need to make serious changes and quickly or they will be the next government backed business on the chopping block.
Arizona has decided not to extend jobless benefits. This is very controversial. I know many companies hiring right now that are having a hard time filling positions or keeping employees. They are beginning level jobs that will pay more than the $240 they get from unemployment. Its not fancy work but at least its a job and they are back in the work force and doing something productive. I have heard people say that jobs are beneth them so they will keep their unemployment as long as possible. I guess I just don't get why you would not want to at least get back out in the work force and start making connections to do bigger and better things. It will not be great for everyone but stopping the extended benefits may make people take those jobs and start doing something in life again.
Who cares that Anthony Weiner sent some pictures on Twitter. The only one that has a right to care is his poor wife because of the humiliation and deceit. For people to push him to resign his position is just plain stupid (I hate that word but it is stupid). Everyone needs to look in their mirror and figure out their own issues and stop throwing stones at everyone else.
There is a lot of talk right now about chatting online...is it cheating? As we have seen through so many news reports and if you look around probably some of your personal friends, internet chatting always seems to start out friendly and then it turns to something else. In my opinion if you chat online and the conversation goes anywhere it should not then you are cheating.
It is really unfortunate but someone close to me had to learn a hard lesson this weekend. Some friends are only friends as long as you can still do stuff for them or they need you for something. There are people in this world that don't understand what being a friend is all about. Friends are there for you through everything. They will be by your side in good and bad. A friend would never make up a lie to try and hurt you out of jealousy. This is not even an enemy this is an evil person. Make sure you know who your friends really are.
Well the world didn't end on Saturday thank goodness. I think most of the sane people knew it was all talk but there were so many people still a little freaked out by it they took off work because of the pressure of it all. There are reports people maxed out their credit cards and took cross country trips to try and get it all in before the end happens. Now what do they do? They go back to mass amounts of debt and more stress than they ever should have had because some wack job is predicting stuff that he has no way of knowing.
Just when you think life can not get more insane...the person you are supposed to trust the most in your life throws you a huge ball of fire. It is just amazing to me how many men cheat. I know women do it also but it just seems like men do it so much more or at least we hear about it more. They have long term affairs, have children within these affairs and continue to stay with their wives and families. Why??? Just leave your poor wife already and give her some peace. Why continue on? The only thing it will do is make it worse on your family when they find out. Not only are you a cheater...you are a liar, deceiver, manipulator and all around jackass. The act of having an affair is so selfish.
Bin Laden is dead. That is amazing news...and news it is. It is everywhere and everyone is talking about it. My fear is the retaliation that the US is going to see because we killed him. I know this is not the end of terrorism but I sure hope it starts things moving in a positive direction.
Facebook is the funniest thing. Don't people realize everypone reads your posts. I have seen stuff posted by people I have no reason to know. And the kids...geez guys when are you gonna realize that when you friend your parents and their friends thay can see what you are doing when you post it...let's keep it clean.
Who really cares if gay people have the right to marry. Let them get married what is the difference? If 2 people love each other no matter what the sex, creed, religion, race...does it really matter...NO. Stop the hate.
I keep reading consumer confidence is on the uptick but where? I work at a store and people are not splurging. They are buying one item as a reward or something they need but that is about it. Long gone are the days of the $1000 handbags just for fun.
It makes me so sad to read that any parent feels there is no way out but to kill themselves and their children. I have been reading more and more of parents doing this and it just makes me cry. The children are innocent let them be adopted by someone or cared for by a relative. Killing them is not the answer.
Inflation Concerns Push Rates Higher
With little other economic news, inflation concerns weighed on mortgage rates this week. Despite rising commodity prices, Fed officials appear to be in no rush to tighten monetary policy. Investors, worried about the risk of higher inflation, pushed mortgage rates a little higher.
While the ECB (European Central Bank) and China raised rates this week to fight inflation, US Fed officials continued to downplay the risks. According to the Fed Minutes released this week and in recent statements, the majority of Fed officials maintain the view that higher commodity prices are unlikely to raise future inflation expectations. These officials expect the impact to be "transitory" and "muted". To support the economic recovery, they believe that the Fed should move slowly in removing monetary stimulus. The more hawkish minority at the Fed is gaining support, however, and several Fed officials have suggested that the Fed may need to tighten monetary policy before the end of the year. In light of the Fed's debate, investors will be closely watching next week's important inflation reports.
Even with higher energy prices, consumers continued to spend freely on other items last month. The March sales figures from about two dozen large retail chain stores released on Thursday were stronger than expected. Consumer spending accounts for about 70% of economic activity, so this data was encouraging news for the economy.
As reported in the Wall Street Journal today "A lengthy government shutdown could put a halt to some of the basic functions of Wall Street.
New issues of bonds and stocks could be held up during a government shutdown, since they often require registration with regulators. Initial public offerings may be impossible. Mergers could be brought to a standstill, since they often require the approval of a number of regulatory bodies."
This is the small picture the bigger picture of this is how it is going to cause us headaches. One example is if the government shuts down so does HUD so any homes that are ready close with a HUD contract are now stalled until things get back up and running. When that stalls and things don't close all the little guys doing real estate transactions don't get paid (title, escrow, attorneys, appraisers, realtors, pest inspectors..the list goes on and on) so the economy slows down even more. This is just one example. Gotta get this country back on track.
The weather is getting beautiful here in Arizona. Time to get off the sidelines and consider moving into one of the beautiful homes on the market here in Arizona. Prices are so low and mortgage rates are amazing. Don't wait too long you will miss your opportunity.
Mortgage Rates Increase
An improving economic outlook was unfavorable for mortgage rates this week. The Dow stock index reached a new high for the year, as investors shifted funds from bonds to stocks. Weaker than average demand for the 7-yr Treasury auction also helped push mortgage rates a little higher.
The economic data released during the week generally was a little stronger than expected. Most significant was the monthly Employment report. Against a consensus forecast of 195K, the economy added 216K jobs in March. The Unemployment Rate declined to 8.8%, the lowest level since March 2009, from 8.9% in February. Stronger economic growth increases inflationary pressures, which is negative for mortgage rates.
The recently passed Dodd-Frank Act requires Federal housing regulators to define the characteristics of loans which will be exempt from new risk retention requirements. Such loans will be known as Qualified Residential Mortgages (QRM). Non-QRM loans will likely require higher interest rates than QRM loans. This week, the first proposed QRM characteristics were announced. In the proposal, all government guaranteed or insured loans, including FHA/VA, Fannie Mae and Freddie Mac loans, will be QRM. Unfortunately, outside of these agency loans, the definition was very strict, making it hard to qualify.
Nothing is worse than selfish people. Have you ever had a friend that was great until something did not go their way so they turned into a little brat? Whatever happened to being happy for people when things go well for them or if things are not going well being there to support them? This life is not all about you. Be a friend all the time it is a much more attractive quality.
OK so has anyone else seen the story about the mom giving her 8yr old injections of Botox every 3 months? Seriously? I have a hard time at 39 getting Botox every 6 months and this mom is doing it on an 8 yr old? This is so stupid. The mom says this will help her become a star? Really...why in the world would she think that will help her become a star? The only thing that it is doing is making her daughter have unrealistic ideas of beauty (oh by the way the 8 yr old wants a nose and boob job also). This little girl is WAY to young to be having any treatments at all. If you want to start her on something teach her proper face washing techniques and work on her personality and keep her in light exercise or dance classes. Get her off this path now before it is too late.
For all of you that think realtors have it easy and make a ton of money let me explain the reality of the new world of being a realtor. Realtors are paying more fees than ever just to have their license. As home prices fall so does the amount we get paid. Banks are putting clauses in their contracts now that commissions will be based off gross amount of sales price so if you negotiate a great deal for your buyer to have costs paid by the seller or bank a percent gets taken from your commission. Short sales are rampant in the market today and of course commissions are cut a full 1% on those most of the time as well. Add in increased gas prices and the amount of unkept homes on the market so you have to show more than ever to get something great...realtors are not really able to make a living anymore. We are doing 10X the work (changing contracts, extra disclosures, more inspections) for 1/4 of the pay we used to get.
NEW YORK (CNNMoney) -- High residential vacancies are killing many housing markets, as foreclosed homes sit on the market and depress sale prices and property values.
And it's only getting worse: The national vacancy rate crept up to just over 13% according to last week's decennial census report. That's up from 12.1% in 2007.
So if the government can't see form this that their lackluster attempts to do something to stop the bleeding I don't know what will convince them. Why don't they come out and speak to the people actually doing business and living in this economy and get the real ways to fix things.
I really wish some of the people making the laws would think about the outcome of their actions. So today its being announced that the banks may limit debit card transactions to $50 or $100 because the transaction fees for debit card purchases are being lowered from .44 to .12 per the Dodd-Frank bill. This will force people to return to checks, paying with cash or putting everything on credit cards. Government should stay out of business...they have no place in it. I agree banks are making money hand over fist right now (due to the bailouts that were forced on most of them) and regulation is good to a point but they are still a business and still employee millions of people they need to pay. I worked for a Wallstreet firm. I know how they work and I know how they make their money. Let them do what they do and get the economy back on track and stop protecting us from ourselves.
Is Charlie Sheen really confused on why he got fired? Come on if anyone rants, raves and acts like a drugged up lunatic I think it is only reasonable for your employer to fire you. He has been ripping apart his bosses and calling them names...then he demanded a raise to come back...really??
New mortgage info coming down the pipe...
It looks as though borrowers will need to come up with a 20 percent down payment if they want to snag the best deal on their mortgage going forward.
Per government sources, the Office of the Comptroller of the Currency and the FDIC have agreed on a 20 percent down payment for a so-called “Qualified Residential Mortgage” (QRM).
A QRM is a mortgage that will be exempt from the risk retention standards required under the Dodd-Frank Act.
In short, mortgage lenders who originate mortgages that are not considered QRMs will have to hold onto at least five percent of the mortgage before selling it on the secondary market.
That means mortgage rates on such loans will be higher than QRMs, because the latter will be less risky and more marketable.
The good news is that borrowers who are required to put 20 percent down will be able to get 10 percent of it as a “gift,” so it’s really only a 10 percent down payment requirement.
Additionally, FHA loans are exempt from the risk retention rules, so you can always go that route for a low-down payment mortgage.
However, mortgage insurance premiums on FHA loans were recently increased by another quarter-percent.
Looks like zero down mortgages were singled out as a major negative component of the ongoing housing crisis.
Back in January, Wells Fargo called for a 30 percent minimum down payment on QRMs, which critics felt would squeeze smaller lenders out of the game.
Enough with the Charlie Sheen stuff. This guy is all over the headlines. Everyone should do him a favor and stop talking about him because it is feeding him to do more press and what he really needs to do is get the help he needs and figure out a way to take care of his kids and be a dad.
It is so crazy that another "star" got in trouble for a DUI again. When are these people going to learn. If you want to drink get a driver (we know you can afford it) or take a cab. I just don't get it. They are also usually so drunk they are 2 or 3x the legal limit or more. They knew they could not drive but did anyway.
Arizona is starting to change their laws on solicitation to our homes so it has been awhile since I have had someone at my door trying to sell me something (besides the neighbor kids of course). Yesterday I had some people come to my door. I looked out the peephole and saw a woman and a cute little boy. I opened the door to see what they needed and as soon as I did a man jumped around the corner and started in on his speech about family and how I need to buy this book. I was freaked out because I had no idea he was there and the way he did it I knew it was planned so that I would not be able to see him right away. I was not happy and told him so and told them I did not want to waste their time but they needed to leave. I am sorry but selling at the door is already a scary thing and then you hide and pop out as soon as I open the door...no thanks.
We have had the worst weather in Arizona this past year. I can't remember it being this cold and rainy ever. It is sad when I am wishing I was in Ohio in February. Things look to be clearing up for the week but who knows what tomorrow will bring.
Did anyone really think banks would want to reduce mortgage principal?? As reported today in the AZ Republic
Starting last February, the so-called Hardest Hit Housing program doled out hundreds of millions of dollars from the Treasury Department to the states facing the biggest foreclosure problems. Then, in December, the Arizona Housing Department received an additional $143 million, bringing the state's total to almost $268 million.
The one loan modification so far saved the homeowner a total of $40,000.
Only one person has received help so far...really I am not surprised. I have a loan with a credit union and they actually hired outside services to help them get tighter on giving out any assistance. You can't ask the banks to lose money they just won't do it and why should they, they are a business. Would you want someone coming to your job and asking for money to help with some problems they may be having...um NO.
We are seeing a pickup in the AZ real estate market a little but not in prices. Rates are still low, rentals are filling up about as fast as they come on the market and home prices are very competitive for any first time home buyer ready to go. The homes on the market don't seem to be as well maintained as they once were. It seems like people just don't have the pride of ownership they once did. Short sales are abundandt and still a challenge. You just never know what the banks will say when it comes to the end of the deal. Will they want a Note from the seller, will they accept the offer from the buyers or will they counter for more money. Every deal is different so if you are buying a short sale just expect the unexpected.
The flu this year is horrible. It is taking people down right and left. Everytime I think it is gone it just creeps back in and takes me out for another day or 2. I guess I should consider getting the flu shot next year.
My husband and I just got back from an awesome Celebrity Cruise for 5 days. We had such a fun time with our friends that went with us and met so many more people on the ship that were just awesome! Why is it though when you get off the ship it still feels like you are on it. I have been off the boat for over 24 hours now and I can still feel the rocking. SOOOO annoying!!!
Casino gambling and bets are on the rise in Arizona. Its one of 2 things...people either feel better about their situation and have more money to spend or they have just given up and just want to enjoy what little they have because it is not fun to be miserable and things don't look like they will get better any time soon.
I really hope the groundhog is right and spring will come early this year. Even in AZ it is so cold and windy you hate to go outside. I feel for all the folks digging themselves out of the snow right now.
So...I was reading about the Taco Bell lawsuit today. I had no idea that there really in not much beef in their food. I knew you did not get much of whatever it is but I guess I should really pay more attention to what I am eating. The article says...
Lawyers would have to prove that most consumers expect and believe they are getting something other than what Taco Bell actually serves. Most fast-food customers, he said, realize taco meat has other ingredients besides beef. And the lawsuit cites U.S. Department of Agriculture guidelines for labeling ground beef, which don't apply to restaurants.
Read more: http://ping.fm/9z8an
Guess I really need to stick to cooking at home.
Just when we are hearing things are getting better and the stock market is going crazy I am hear of more and more people getting laid off and businesses closing. How are things getting better when it appears everything is worse? I wish the media would stop hyping everything and the government would stop spending our money on things that clearly are not working to help the economy. Have they not ever heard that doing the same old thing the same old way and getting the same result is insane?
A good read if you have the time...
8 keys to 2011's mortgage market
House prices -- but also interest rates -- declined in 2010, and the housing market continues to struggle. A mortgage expert looks at what's likely to happen:
In 2010, the housing market was hit hard as the U.S. struggled to emerge from the worst economic downturn since the Great Depression. House prices declined, there was an abundance of homes for sale, and mortgage rates dipped to lows that hadn't been seen in decades.
Now, though, the market is still struggling, and mortgage rates on are on the rise. What can you expect in 2011?
Here are eight key factors to watch:
1. The new Consumer Financial Protection Bureau will start operating. By July 21, the structure to promote what may be a sweeping overhaul of mortgage products, processes and disclosures will be put in place. Elizabeth Warren, charged with creating the structure of the new bureau, is expected to have much of the framework in place for the new regulatory body by the official July start date. By that time, a director will have been named and regulators and regulations drawn from other bodies will be assembled.
It seems likely that mortgage disclosure reform will be first on the list for the bureau to tackle. Confusing, unclear and seemingly conflicting documentation has been implicated in the mortgage-market mess, and a push for more explicit yet simpler forms for consumers to review and sign are thought to be a top priority for the new body. That said, a simplification of the document stream has long been a dream of any number of regulators, with an exhaustive study completed just a few years ago with limited results. The change in 2010 to the Good Faith Estimate to make fees charged to borrowers more explicit was helpful to a degree, and trying to revise required Real Estate Settlement and Procedures Act and Truth in Lending Act documents will surely be an even greater challenge.
2. Fannie Mae and Freddie Mac will change . . . maybe. Reforming the government-sponsored enterprises (GSEs) has been an on-again, off-again, on-again crusade for the last couple of administrations. To be sure, it's a love-hate relationship; the GSEs have totally distorted the mortgage market, but without them, there would be no mortgage market to distort. They have eaten tens of billions of taxpayer funds but remain perhaps the key support for millions of homebuyers and homeowners. In such a fragile market, making immediate, substantial changes could have many unwelcome consequences. Reforming these entities is a thorny issue, to be sure.
After having been kicked down the road three times by the Obama administration, recommendations for change are expected to come from the Treasury Department in January. But will reform follow quickly? Probably not. There has been some talk of perhaps a five-year wind-down plan for the GSEs, some discussions of separating their "public" function of securitizing mortgages from their "private" investment portfolios, and both have proved useful to politicians at various times.
No matter what the proposals say, we expect long and contentious debate between Democrats and Republicans over the role of government in housing finance markets. If the housing market can begin a small but steady recovery, the companies' losses will start to ease and possibly reverse, and so any delays in making changes argue in favor of the status quo. We think that if there is no real progress toward reform made by perhaps October, it is very likely that GSE overhaul won't happen until after the next presidential election. We're betting on little if any real change in 2011.
3. The economy improves. If you want to know what will happen to mortgage rates in 2011, watch what happens to the economy. As we write this, the economy has put in about six quarters on the positive side of the economic ledger, and Federal Reserve stimulus and the recent tax agreement seem likely to ensure that growth continues on an upward track in 2011. The labor market recovery should continue to gain momentum as the year progresses, but unemployment will remain stubbornly high for perhaps years to come.
That said, continual but gradual improvement seems likely. As the economy finds firmer footing, so will mortgage rates. After being pressed to 56-plus-year lows in 2010 by various crises, deflation concerns and government manipulation, we may see a bit of the other side of the coin in 2011. Although the Fed will keep short-term interest rates low, it is unlikely to leave them at emergency levels forever; as the economy recovers, the market will probably demand that the Fed begin to raise short-term interest rates and back off on policy "accommodation" in order to avoid an inflation problem.
Because it would tend to temper any outsized growth potential, which in turn would trim inflation concerns, any rise in short-term rates (whether directly or through the process of managing currency reserves) should keep long-term mortgage and other interest rates from rising too far. As we begin 2011, mortgage rates have moved off recent bottoms and have probably overshot where they should actually be, given current economic conditions.
4. Homebuyers return in greater numbers. We'll stop short of calling 2011 "the year of the homebuyer," but the gentle improvement in the labor market, still-low interest rates and what should be gradually easier lending conditions seem likely to foster a stronger housing market.
Whether we see easier lending conditions depends upon Fannie and Freddie reform, a resurrection of private secondary markets and whether consumers find an appetite for mortgage products that banks prefer to put in their own portfolios and can exercise full underwriting control over, such as adjustable-rate mortgages. Few banks want to hold sizable portfolios of low-yielding, long-term fixed-rate mortgages, and so the vast majority of those are sold to Fannie and Freddie and are thus beholden to their standards. Without a competitive private market, the restrictive standards put in place by the GSEs over the last couple of years will continue to be the only game in town and will continue to limit access to the cheapest mortgage credit.
With only one private offering of a new mortgage-backed security in 2010 -- a "best of the best" package of loans early in the year -- and financial market reforms still being digested, it seems unlikely that we'll see a huge swing away from tight underwriting standards, but we could see some nibbling around the edges. This may come in the form of some flexibility in borrower employment history, for example.
5. The "distressed" real estate market improves. Recently, there was a slight improvement in the number of "underwater" homes that occurred not because of any gains in home prices, but rather because a rise in foreclosures produced a final "cure" that loan modifications did not. It makes a curious headline, indeed: "Underwater crisis solved by foreclosure crisis," but this does seem to be a resolution for at least some underwater loans in 2011. The combination of an increase in the use of principal forgiveness in modifications and FHA "short refinances" in 2011, coupled with a resumption in the stream of foreclosures, should ultimately render fewer loans delinquent and fewer homes underwater, and the headline figures should begin to improve.
Loans written in 2008 to 2010 and the new ones to come in 2011 are certainly subject to economic tides, but they are underwritten far better than those from 2004 to 2007, which are still being wrung out of the system. Loan failures from fundamentally flawed, "bad" or "risky" loans are fading behind us; many weren't curable no matter the offer of assistance or modification. More recent delinquencies and failures have been economically driven and probably are more curable as hiring resumes and household finances improve. To be sure, the improvements will be gradual.
6. A "soft demise" for the Home Affordable Modification Program. By now, it should be fairly clear that the Obama administration's goal of saving 3 million to 4 million homeowners from foreclosure by 2012 was wildly optimistic. By the program's end, we may not even make half that number, but the administration is claiming some success in shaping and focusing the loan servicing industry to deal with borrowers in crisis, fostering more private and lasting modifications. With the big push to get people into various Making Home Affordable programs now over, and the economy gaining strength, it stands to reason that the number of new entrants into mortgage-assistance programs would begin to dwindle.
7. Mortgage rates remain favorable. Of course, we mean this from a historical perspective. Barring a new, widespread economic crisis, it's increasingly unlikely that we will challenge the lows for mortgage rates seen in 2010. Borrowers will again have to become accustomed to rates in the low- and mid-5% range for 30-year fixed loans. Still, much of the year should continue to feature rates that rank among the best seen in a generation or more, even if they don't test record lows. The low mortgage rates of 2010 came as a result of multiple financial panics and investor fears of more losses, and to wish for their return is to hope for renewed economic catastrophe. For our part, we'll take low- and mid-5% rates in a growing economy over 4% rates in a collapse any day.
8. The Federal Reserve's Quantitative Easing 2 (QE2) program ends. Initiated in November 2010, the Fed's program of purchasing Treasury securities in hopes of fostering lower interest rates has had the exact opposite effect, and interest rates have risen off their panic-level bottoms. This is partly due to an improving economy and partly due to the expectation that the Fed's moves will further spur economic growth in 2011. We've come to believe that the Fed is using the program to buffer the market, keeping market interest rates from rising more quickly than it would like.
As the economy improves, interest rates will rise, but a sustained, unanchored spike could push the economy back into recession. The Fed's program is perhaps a means to keep this from occurring, and there have even been discussions that the program could be extended when it expires about midyear. We think that this is unlikely unless there is at the time a general buyers' strike for U.S. government debt. The program will go, and the economy will continue to grow . . . and the Fed will probably consider draining excess reserves and raising short-term interest rates before the summer comes to a close.
This article was reported by Keith Gumbinger for HSH.com.
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