12/26/2011 Inside Lending

Posted on December 28, 2011 by Carly Companion West

Market Update
QUOTE OF THE WEEK…”…never retreat, never retract…never admit a mistake.”–Napoleon Bonaparte

INFO THAT HITS US WHERE WE LIVE…Wisely, the National Association of Realtors (NAR) did not follow the diminutive Emperor’s advice last week, admitting they uncovered some mistakes in the statistical model used to estimate national Existing Home Sales the past few years. They therefore had to revise those sales down 14%, to a 4.42 million annual rate in November. Nevertheless, Existing Home sales were UP 4% for the month and UP 12% versus a year ago. And the inventory is down 18% versus last year, now at a 7 months’ supply!

In line with that, Housing Starts were UP 9.3% for November and UP 24.3% versus a year ago, while Building Permits were UP 5.7% for the month. November New Home Sales came in Friday UP 1.6%, with the supply dropping to 6 months, its lowest level since early 2006! The numbers of unsold new homes under construction and unsold completed new homes are also at or near record lows. The FHFA price index for homes financed by conforming mortgages was down just 0.2% in October and is down only 2.8% versus a year ago.

>> Review of Last Week
SANTA CAME EARLY…It was a little early for a “Santa Claus rally” (see below), but it sure seemed like the big man in red was giving Wall Street investors a nice holiday gift–to wit, a better than 3.5% weekly gain in stock prices, recouping the prior week’s slide. Recent European worries were assuaged by improving German sentiment data, an encouraging Spanish bond auction and the European Central Bank’s Long-term Refinancing Operation (LTRO), which promised greater stability in the region, at least for awhile.

We also had better economic news on our side of the pond. Initial jobless claims dropped to 364,000, the lowest level since April 2008, and continuing claims dropped to 3.55 million, the lowest since September 2008. Durable Goods orders were up 3.8% in November, beating expectations. On the inflation front, Core PCE Prices were up just 0.1% in November and well within the Fed’s target range, at 1.7% for the year. But Q3 GDP was revised down to a sobering 1.8%.

For the week, the Dow ended UP 3.6%, at 12294; the S&P 500 shot UP 3.7%, to 1265; and the Nasdaq went UP 2.5%, to 2619.

As stocks soared, it was a tough week in the bond market. The FNMA 3.5% bond we watch ended the week down .90, to $101.32. But national average fixed mortgage rates remained at or near their all-time record lows according to Freddie Mac’s weekly survey.

DID YOU KNOW?…A “Santa Claus rally” is a rise in stock prices that sometimes occurs the week after Christmas. It often anticipates the “January Effect”–a rise in stock prices the first month of the year.

>> This Week’s Forecast
YEAR ENDING ON HOME SALES PENDING…Thursday’s Pending Home Sales for November, indicating how actual sales might go the next few months, should be up slightly. December Consumer Confidence is also forecast up a bit, perhaps due to the slowly improving jobs picture, with weekly Initial Unemployment Claims predicted to remain below 400,000. The Chicago PMI, a bellwether for manufacturing overall, is expected to stay in expansion mode.

Next Monday, January 2, 2012, the stock market will be closed in observance of New Year’s Day. May the coming year bring all the best to you and yours!

>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Posted in Finance | Tagged , , , , , , , | Leave a comment

Inside Lending 12/19/2011

Posted on December 19, 2011 by Carly Companion West

Market Update
QUOTE OF THE WEEK…”Do what you can with what you have where you are.”–Theodore Roosevelt

INFO THAT HITS US WHERE WE LIVE…The famous President’s sage advice from a century ago is still the appropriate approach to today’s housing market. In the midst of all the media noise, it’s always good to check what we do have and where we really are. For example, the Census Bureau reported that although the median sale price of new homes in October was down 15% over the last five years, it’s actually up 26% over the last ten. More evidence that housing still is a good investment over the long term.

A recent economic forecast from the National Association of Realtors (NAR) reports existing home sales are expected to grow by 1.2% this year and 5.1% in 2012. And although the median existing home price is predicted to dip about 4% this year, it should recover and go UP 2.6% in 2012. Sales should also jump to 5.22 million units from this year’s projected 4.97 million.

Review of Last Week
EURO TRASH…It was another week of European worries trashing stock prices. The Euro Summit the week before failed to come up with the “bazooka” solution investors had been looking for. Then ratings agencies warned of potential further downgrades in the region. All this made Wall Streeters feel quite risk averse, causing them to exit the equity markets, which sent all three major indexes decidedly down for the week.

With our own economy, things weren’t so bad. Retail Sales were up for November, though less than expected, but up 6.7% versus a year ago. This wasn’t enough to impress the Fed, whose meeting Tuesday made it three years of interest rates at near-zero levels. The economic data isn’t great, but it is somewhat improving. Initial weekly jobless claims hit a 43-month low of 366,000. The Empire State and Philadelphia Fed Surveys of manufacturing in those regions were better than expected, although industrial production overall dropped a bit.

For the week, the Dow ended down 2.6%, at 11866; the S&P 500 slipped down 2.8%, to 1220; and the Nasdaq dropped 3.5%, to 2555.

Investors were still nervous about Europe and the Fed’s statement didn’t say anything to concern traders, so bond prices held up well. The FNMA 3.5% bond we watch ended the week UP .91, at $102.22. This is of course good for interest rates and, once again, Freddie Mac’s weekly survey had national average fixed mortgage rates remaining at or near their all-time lows.

DID YOU KNOW?… This week’s PCE (Personal Consumption Expenditures) measures inflation by tracking changes in prices. Unlike last week’s Consumer Price Index, based on a fixed basket of goods and services, the PCE changes with consumer spending habits.

This Week’s Forecast
HOUSING, GDP, INFLATION…The week jams in a bunch of housing market reports and they’re mixed. On Tuesday, November Housing Starts and Building Permits should come in down a tad, but November Existing Home Sales are predicted to rise north of five million units. Friday, we’ll see November New Home Sales, forecast to edge up to a 313,000 annual rate.

Thursday will feature the Third Estimate for Third Quarter GDP, expected to stay an anemic 2.0%. Friday, Core PCE Prices, the Fed’s key measure of inflation, is forecast flat for November, which should make everyone happy. The stock market will be closed next Monday, December 26, in observance of the Christmas holiday.

The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Posted in Finance | Tagged , , , | Leave a comment

Home and Wealth Newsletter

Posted on December 14, 2011 by Carly Companion West

12 THINGS TO PUT ON YOUR HOLIDAY CHECKLIST

PLUS…Year-end financial to-do list
The Holidays are upon us. Here’s how to stay well organized, so you can enjoy them the most.

1. Do your online shopping first. Order gifts on the internet now, to allow time for shipping, returns and getting them wrapped.

2. Wrap after purchase. This keeps little ones from seeing what Santa has–and saves you that last minute pile-up of unwrapped gifts.

3. How are you fixed for glassware? The holidays often feature bigger entertaining. Make sure you have enough glasses and dishes for parties and meals.

4. Put the tree up and decorate. Getting it done by the coming weekend leaves you free to focus on your other holiday tasks.

5. Do your holiday meal menus. Decide what you’ll be cooking and what others will bring. Make up a master grocery list and order the turkey, ham or other centerpiece dish.

6. Do your nonperishable shopping. Get in all canned goods, pantry staples and bottled beverages.

7. Clean the house. Keeping the house neat makes decorations stand out. And clean out the refrigerator to make room for those big holiday dishes.

8. Got kids? Get batteries! Make sure you have them on hand in all the right sizes.

9. Shop for your fresh foods. Get these ingredients two or three days before you’ll need them.

10. Set the table ahead of time. That way you can concentrate on the food prep the day of the feast.

11. Don’t forget fresh flowers. Get them two days before to give blooms time to open up.

12. Charge camera and video batteries. Charge spare batteries too, if you have them.

Now you’re ready to relax and enjoy family and friends!

YOUR END-OF-THE-YEAR FINANCIAL CHECK-UPS

Now is the right time to take a look at a few financial matters:

1. Review health and dental care choices. Many employers allow you to make changes to your benefit plans now. Check with doctors and dentists to make sure they’re still in your plan’s preferred provider network and that your family has adequate coverage.

2. Review use-or-lose accounts. Pretax Flexible Spending Accounts (FSAs) are set up this way. Review your plan to see if you have some spending to do, or if your employer offers a grace period. Even then, make sure 2011 expenses are still allowed in 2012.

3. Review your withholding. Check the withholding calculator at the IRS website. If you haven’t been withholding enough to cover your taxes, you might want to increase the amount. Under-withholding can result in penalties.

4. Get ready for 2011 taxes. Check last year’s returns to see who needs to send you what tax documents, and by when. Make a list and follow up if anyone holds you up at the beginning of the year. Also, check last year’s return for itemized deductions. See if you should make deductible purchases now or wait until 2012.

Note: Be sure to consult with a tax professional before making any decisions related to your tax situation.

5. Set your 2012 financial goals. Now is the time to write down what you’d like to achieve financially next year. Save money for a down payment on a new house? Start a college fund for your kids? Put more into your retirement fund?

Remember, we’re always here to answer any questions…. Have a great day!

PS With today’s extremely low mortgage rates and home prices more affordable than ever, many people are upsizing, downsizing or refinancing. Please call or email us now to discuss your situation

Posted in Buying, Finance, Local Market, Local News | Leave a comment

Inside Lending

Posted on December 5, 2011 by Carly Companion West

Market Update
QUOTE OF THE WEEK…”Motivation is the art of getting people to do what you want them to do because they want to do it.”–Dwight D. Eisenhower

INFO THAT HITS US WHERE WE LIVE…Enough people were motivated to buy new homes in October to push monthly sales up 1.3% to a 307,000 annual rate. Even better, the motivation was strong enough to send the median price to $212,300, UP 4% over a year ago. Going forward, what should motivate everyone is that the supply of new homes fell to 6.3 months. Nonetheless, new home sales need to get to an annual rate around 950,000 and some observers say that will take another few years.

Housing market pessimists had to be really disappointed by October’s Pending Home Sales. This measure of signed contracts for existing home sales that have not yet closed was UP 10.4% for the month and is 9.2% higher than it was a year ago. This bodes well for existing home sales a few months out. Additional home price data went in opposite directions. The Case-Shiller home price index in the 20 largest metros was down 0.6% in September, but the FHFA index registered a 0.9% price increase for homes financed with conforming mortgages.

Review of Last Week
YO-YO MARKETS…That’s how one chief investment officer described what’s been happening on Wall Street. The worst ever Thanksgiving week for stocks was followed by the S&P 500′s biggest weekly gain since March 2009, the Dow’s largest weekly gain since July 2009 and a seriously strong upturn for the Nasdaq. The bulls got back in control starting with some reassuring news for Europe. The Fed and five other central banks agreed to lower the cost of borrowing dollars for foreign banks. This doesn’t solve fiscal problems for the Europeans, but it does keep the money flowing to buy them more time.

Decent economic data kept the bulls on their charge. In addition to the housing news, sales for the first full weekend of holiday shopping were UP 16.4% over last year according to the National Retail Federation. ComScore reported Black Friday online sales were up 26% from last year. Then Friday’s November Employment Report showed 120,000 new jobs, plus revisions to October and November added another 72,000 payrolls. The unemployment rate dropped to 8.6%, but this was due to a decrease in the labor force of 315,000. There was also concern over the 0.1% drop in average hourly earnings.

For the week, the Dow ended UP 7%, at 12019; the S&P 500 went UP 7.4%, to 1244; and the Nasdaq was UP 7.6%, to 2627.

Stocks were surging, so bonds should have tanked if things had gone by the book. But these days, not many things financial follow a predictable course. Bond performance was actually mixed, which turned out well for the FNMA 3.5% bond we watch. It ended the week up .86, to $102.06. According to Freddie Mac’s weekly survey, national average mortgage rates remained at or near record lows for the fifth week in a row.

DID YOU KNOW?… The Trade Balance reported this week is the country’s exports, minus imports. It is the largest component of our balance of payments.

This Week’s Forecast
LIGHT ON THE NEWS… This week won’t have much in the way of economic data, but it’s good to keep a watch on ISM Services, as that sector provides the vast majority of our jobs. This index is expected to be up a bit for November and still expanding. The Trade Balance is forecast to show a slightly higher deficit for October, while University of Michigan Consumer Sentiment should also stay near previous levels.

The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Posted in Finance | Tagged , , , , , , , , | Leave a comment

Inside Lending

Posted on November 30, 2011 by Carly Companion West

INFO THAT HITS US WHERE WE LIVE…The patient approach advocated by the 1st Marquess of Halifax is proving to be the right tactic for mastering today’s housing market. Last week, October Existing Home Sales inched up to an annual rate just under 5 million units. And although things appear to be improving only slowly, existing home sales are actually UP 13.5% from a year ago.

Even better, the months’ supply of existing homes fell to 8.0 and inventory is now down 13.8% versus a year ago. The naysayers jumped on the fact that the median price was also down. But a large portion of October sales came from distressed properties whose prices are heavily discounted. Although some see this as a negative, it’s what’s needed for inventories to be worked down and for the housing market to recover.

Review of Last Week
NO THANKS… People feel positive around Thanksgiving, but folks on Wall Street spent the week in a decidedly negative mood. They were put there at the start by Congressional leaders who couldn’t get past partisan politics to deal with our nation’s fiscal issues. Then Moody’s fed the down vibe with cautious comments about France’s debt rating outlook. A third bummer came with Tuesday’s downward revision to Q3 GDP, coming in at a measly 2.0%. The net result? The worst ever Thanksgiving week for stocks.

There really were some things to be thankful for. The Q3 GDP report showed business investment growing at its fastest pace this year. Chain store sales were UP 3.7% over last year by one study and UP 2.8% by another. Incomes grew in October more than predicted, although spending grew less. Initial jobless claims stayed below 400,000. Finally, October Durable Goods orders were down slightly for the month, but if you take out volatile transportation, they are UP 11.7% from a year ago.

For the week, the Dow ended down 4.8%, at 11232; the S&P 500 went down 4.7%, to 1159; and the Nasdaq sank 5.1%, to 2442.

With stocks having such an awful week, you’d expect bonds to benefit immensely. Not so this time. With volumes down as usual on Black Friday’s shortened trading day, bond performance was mixed. The FNMA 3.5% bond we watch ended the week down .02, at $101.20. National average mortgage rates remained at or near record lows for the fourth week in a row, according to Freddie Mac’s weekly survey.

DID YOU KNOW?… The 1792 Buttonwood Agreement created the New York Stock Exchange. It was signed by 24 stockbrokers under a buttonwood tree outside 86 Wall Street.

This Week’s Forecast
NEW HOME SALES, PENDING HOME SALES, JOBS… Of great interest this week will be more housing market reports and the jobs numbers that are key to the real estate recovery. October New Home Sales are expected to hold steady, above the 300,000 level. September Pending Home Sales, indicating Existing Home Sales a few months out, look to be up a tad.

Friday, we get the November Employment Report. Although payrolls should rise, the number of new jobs is still not enough to bring down the unemployment rate.

The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Posted in Finance, Local Market | Tagged , , , , | Leave a comment

Inside Lending: Past, Present and Future

Posted on November 21, 2011 by Carly Companion West

Market Update

QUOTE OF THE WEEK…”Our greatest glory is not in never falling, but in rising every time we fall.”–Confucius

INFO THAT HITS US WHERE WE LIVE…Last week some observers felt there were signs home building may be starting to rise. October Housing Starts came in above expectations at a 628,000 unit annual rate. Off a mere 0.3% from the month before, starts are now up 16.5% versus a year ago. Single-family starts were up 3.9% in October, so the slight monthly decline was all from those very volatile multi-family units. Multi-family starts are actually up 88.6% over a year ago.

Even better, Building Permits, which indicate where Housing Starts may be a few months out, were UP 10.9% in October, to a 653,000 annual rate. Over the last year, permits are UP 6.6% for single-family homes and UP 48.0% for multi-families. The total number of homes being built has increased three times in the last four months, after posting no increases from 2006 until four months ago. In line with all this, a national home builder index rose to its best reading since May 2010.

Review of Last Week
WEAK WEEK…In last week’s financial and economic news, all the stories seemed to be coming out of Europe. Coverage of the debt crisis continued, and was joined by concerns that economic growth was slowing, putting some of the more troubled countries on the brink of recession. All this Euro trashing sent our stocks on a mighty slide down, the market ending up with its worst weekly performance in almost two months.

Over here, our Leading Economic Indicators (LEI) Index headed up, bolstering hopes for the U.S. economy. New jobless claims dropped by 5,000 last week, to 388,000, while Continuing Claims declined by 57,000, to 3.6 million. Some analysts feel November could be another month with respectable job growth. Retail sales rose for the fifth consecutive month in October and are 7.2% higher than a year ago. Vehicle sales in November are tracking at a 14 million annual rate. And consumer confidence was up for the third month in a row in early November.

For the week, the Dow ended down 2.9%, at 11796; the S&P 500 was down 3.8%, to 1216; and the Nasdaq slid 4.0%, to 2573.

The plummeting stock market help bonds somewhat. But economic data that beat expectations prevented bond prices from really taking off. The FNMA 3.5% bond we watch ended the week up .03, at $101.22. National average mortgage rates were little changed, according to Freddie Mac’s weekly survey, staying at their recent extremely low levels.

DID YOU KNOW?… This week’s Durable Goods report measures consumer spending on products expected to last more than three years, such as cars, TVs and appliances. The data provides insight into the future of manufacturing.

This Week’s Forecast
NO TURKEYS… We can be thankful this holiday-shortened week isn’t expected to serve up any turkeys via its economic reports. October Existing Home Sales shouldn’t ease off too much and the Second Estimate for Q3 GDP is forecast to stay at a modest level, but none of this is awful news.

Meanwhile, Initial Weekly Jobless Claims are predicted to remain under 400,000, with Core PCE Prices expected to show inflation under control in October. The markets are closed Thursday and Friday for the holiday. Happy Thanksgiving to you and yours!

The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Posted in Finance | Tagged , , | Leave a comment

Inside Lending: Past, Present, Future

Posted on November 14, 2011 by Carly Companion West

QUOTE OF THE WEEK…”Life will always be to a large extent what we ourselves make it.”–Samuel Smiles, Scottish author and reformer

INFO THAT HITS US WHERE WE LIVE…Like life, the situation in the housing market depends on what we make of it. Last week, both options were covered in the latest quarterly report from the National Association of Realtors (NAR). The good option: home sales in Q3 rose in all 50 states and Washington, D.C. The negative: the median existing single-family home price rose in only 39 of 150 metro areas, declining in 111 of them. Yet the NAR chief economist pointed out that the sales data was encouraging, because “Home sales need to recover first–only then can prices stabilize.”

More good news: inventory levels have been trending gradually down. Good reason for that was offered by NAR President Ron Phipps: “Housing affordability conditions have been at a record high this year, rents are rising and homes are selling for less than the cost of construction in most of the country. For people with secure jobs, good credit and long-term plans, today’s conditions will be remembered as a golden opportunity to enter the housing market.” Another survey told us a mere 5% boost in prices would motivate 11.7% of owners to sell their home.

Review of Last Week
ARRIVEDERCI, PRIME MINISTERS…Wall Street investors maintained their focus on Europe, but last week the developments were much more positive. Greek Prime Minister George Papandreou stepped down after upsetting everyone by proposing a popular vote on his country’s bailout package. Italy’s Prime Minister Silvio Berlusconi followed suit on Saturday. Earlier in the week, investor fears of political turmoil were allayed by a successful auction of Italian bonds. Stocks went in both directions, but by the end of hostilities on Friday, the Dow and S&P 500 were up for the week, with the Nasdaq off just a smidge.

Economic data over here was sparse but not terrible. Initial jobless claims came in 10,000 less than the week before, at 390,000. Continuing unemployment claims dropped 92,000 to 3.62 million. The trade deficit shrank in September, which hadn’t been expected. And even same-store chain store sales keep gaining, up around 3% from a year ago according to two different surveys.

For the week, the Dow ended UP 1.4%, to 12154; the S&P 500 was UP 0.8%, to 1264; but the Nasdaq slipped 0.3%, to 2677.

The European debt situation also had the bond market experiencing swings in both directions. But when all was said and done, mortgage bond prices suffered a little, as stocks surged on Friday. The FNMA 3.5% bond we watch ended the week down .86, to $101.19. National average mortgage rates were little changed, according to Freddie Mac’s weekly survey, staying at their recent extremely low levels.

DID YOU KNOW?… Building Permits reports the number of residential building permits issues the prior month. Investors use it to gauge consumer confidence in the economy. Any weakness suggests consumer spending contraction.

This Week’s Forecast
HOME BUILDING, INFLATION, RETAIL, MANUFACTURING… There’s lots to ponder this week and high on the list will be Thursday’s Housing Starts, expected to be down a bit for October, and Building Permits, expected to be up. We’ll also get the Fed’s favorite reading on inflation, the Core Consumer Price Index (Core CPI), which excludes volatile food and energy prices, and is forecast to remain under control.

Tuesday’s October Retail Sales are predicted up a tad, although at a lower rate than last month. Manufacturing should also be gaining, as measured by New York and Philly indexes, as well as Industrial Production and factory capacity.

The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months…The Funds rate should stay where it is through mid-2013, since that’s the Fed’s stated goal. They’re of course betting on inflation remaining under control during that time. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

This is an advertisement for Carly Companion West. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of Academy Mortgage and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. It is not intended for consumer distribution. The material does not represent the opinion of Academy Mortgage. NMLS# 180670

Posted in Finance, Local Market, Local News, Selling | Tagged , , , , , | Leave a comment

Home and Wealth

Posted on November 9, 2011 by Carly Companion West

Cut your electric bill 10% without ever noticing it!
PLUS…24 tools every homeowner needs.

Most people don’t know that TVs, DVD players, game consoles, computers and chargers for cell phones and other electronic devices can draw energy 24/7, even when idle.

The typical American home has 40 of these electronic devices, continuously drawing power. The U.S. Department of Energy’s Lawrence Berkeley Lab says they account for almost 10% of home energy use. Here are some easy ways to cut this cost.

Unplug After Charging. The Environmental Protection Agency (EPA) says one of the best ways to cut costs is to simply unplug devices as soon as they’re charged. That’s because standard chargers keep feeding power to a device after it’s fully charged. They also draw small amounts of energy even when no device is attached!

Set on Energy Saving. Configure the energy settings on computers and monitors so they power down after you stop using them. The EPA says these setting could save up to $85 a year.

Check Standby Power Ratings. Choose home appliances, like microwaves and cordless phones, with the lowest standby-power ratings. These ratings measure how much energy a device uses when idle. You can look them up at http://www.eere.energy.gov/.

You can also buy energy saving chargers and power strips with automatic shut-offs. But be careful. They all cost money and may save only a few dollars a year, versus the charger you’re using that just needs to be unplugged when it’s finished.

2 DOZEN TOOLS TO SAVE YOU MONEY

You can save money on little jobs around the house by doing them yourself. Here are the tools to keep handy:

 

  • 16-ounce rip hammer. Heavy enough to drive big nails, light enough to control. Straight claw can pull nails or rip out a wall. Fiberglass or steel handle, should feel well balanced.
  • 25-foot tape measure with 1-inch blade. Extends without buckling, important when working alone.
  • 4-in-1 screwdriver. Gives you large and small flat-head bits and large and small Phillips-head bits.
  • 4-foot spirit level. Good size for putting up shelves.
  • Line level or torpedo level. Better for smaller jobs, like hanging pictures.
  • 6-inch adjustable crescent wrench for tight spaces.
  • 14-inch adjustable crescent wrench for more leverage.
  • Adjustable channel-lock pliers for nuts and shower heads.
  • Lineman’s pliers for cutting and twisting wire.
  • Needle-nose pliers for fine work.
  • Vise grips to also use as clamps.
  • Utility knife. To mark wood, score and cut drywall and other tasks. Blade retracts or folds into handle.
  • 14-volt lithium battery powered drill. Works as a power screwdriver too, if you get screwdriver bits along with the twist bits.
  • 1-inch putty knife for filling nail holes.
  • 6-inch drywall knife for patching wall dings.
  • 9-inch paint roller frame with disposable roller covers.
  • Paint tray
  • 2 1/2-inch angled brush
  • 5-in-1 painter’s tool (blade for scraping, putty remover, spreader, 1/2-round cutout to remove paint from rollers; sharp point to open cracks for patching).
  • Round-point garden shovel
  • Flat-edge shovel
  • Rake
  • Hand-held spade
  • Hedge clippers

All of this costs around $200, which you could save on your first job.

Remember, we’re always here to answer any questions…. Have a great day!

PS  With mortgage rates low and homes super affordable, many people are upsizing, downsizing or refinancing. Please call or email us now to discuss your situation.

Posted in Maintenance and Remodeling | Tagged , , | Leave a comment

Posted on October 31, 2011 by Carly Companion West

QUOTE OF THE WEEK…“Success seems to be
largely a matter of hanging on after others have let go.”–William
Feather, American author and publisher

INFO THAT HITS US WHERE WE LIVE…Last week’s housing news did give all
of us in the industry a few more things to hang onto. First, we saw new
single-family home sales go up 5.7% in September, to a 313,000 annual
rate. Next, it was nice to see the supply of new homes drop to 6.2 months.
The inventory is now at the lowest level on record.

Then, Case-Shiller’s 20-City Composite Home Price index was up for the fifth
month in a row in August and 16 of the 20 metros tracked saw an
improvement in their annual rates of change. Case-Shiller called this
“a modest glimmer of hope” for the housing market. We’ll take it.
Finally, the Pending Home Sales Index dropped a bit in September but was UP 6.4% year over year. This gauges signed contracts on existing homes
that are not yet closed.

BUSINESS TIP OF THE WEEK…Be decisive in recognizing mistakes, even if
they’re your own. When you see something wrong, don’t dwell on it–fix it!.
That’s the fastest way to success.

FOREIGN PROGRESS, DOMESTIC BLISS…Just the
announcement of a plan to solve the debt crisis in Europe was more than
enough to send investors into a state of ecstasy. Well, that may be a bit of an
exaggeration, but the Wall Street faithful certainly felt upbeat enough to send
all three market indexes solidly northward for the week. This makes four
straight weekly gains for the broadly based S&P 500. But good news
from foreign lands couldn’t take all the credit.

Over here, Q3 corporate earnings reports were mostly better than expected. Personal
Income was up for September, as was Personal Spending, showing the consumer has the money to participate in the recovery and is willing to do so. Even the
most strident recession evangelists were silenced by Thursday’s Advance Q3
GDP which had the economy expanding at a 2.5% annual rate. This is nicely
above Q2′s 1.3% rate, although not yet high enough for the job growth we need.

For the week, the Dow ended UP 3.6%, at 12231; the S&P 500 was UP 3.8%, to
1285; and the Nasdaq also gained 3.8%, to 2737.

Europe’s blueprint to ease its debt crisis got investors dumping bonds and
moving into riskier equities. The selling sent bond prices down, although some
of those losses were recovered on Friday. The FNMA 3.5% bond we watch ended the
week down .05, at $100.26. But there was little change in mortgage rates,
as national averages pretty much held steady, according to Freddie Mac’s weekly survey. Of course, interest rates could rise if mortgage bonds lose their investor appeal.

DID YOU KNOW?…The Employment Report, released by the Bureau of
Labor Statistics on the first Friday of each month, contains data for the
period ending on day 12 of the prior month.

This Week’s Forecast
LOOKING AT MANUFACTURING, THE FED, OCTOBER JOBS… The week begins with a couple of good readings on manufacturing,
the Chicago PMI and the ISM Index both expected to
continue showing expansion. The Federal Reserve stages another Federal
Open Market Committee meeting this week. The Funds rate
will stay where it is, but the policy statement on Wednesday will be
scrutinized as usual.

The key economic news for the week will be the October Employment Report on
Friday. Unfortunately, the forecast is for just 88,000 new jobs, not enough to
bring the Unemployment Rate down from 9.1%.

The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and
interest rates down, while positive data points to lower bond prices and rising
loan rates.

Posted in Finance | Tagged , , , | Leave a comment

Inside Lending, Past Present and Projections

Posted on October 25, 2011 by Carly Companion West

QUOTE OF THE WEEK…“It would be so nice
if something made sense for a change.”–”Alice in Wonderland,”
Lewis Carroll

INFO THAT HITS US WHERE WE LIVE…What didn’t make sense last week was
the way the media reported the latest housing data. Housing Starts were
UP a strong 15% in September, hitting a 658,000 annual rate. But the
media chose to emphasize that the gain was mostly from multi-family starts
which shows a big trend toward renting. Actually, multi-family units also
include condominiums, which do make sense for first time buyers who don’t have
to deal with selling. The media also skimmed over the data that single-family
starts were UP almost 2% for the month and starts overall are UP over 10%
versus a year ago.

Then, Existing Home Sales came in 3% lower for September. The media reports
by and large neglected to mention that this slight monthly drop followed a big
increase achieved in August. In addition, Existing Home Sales are UP 11.3%
year-over-year in September, the third straight month this figure has risen by double digits! Inventory is also down 13% in the last year and sales seem
to be stabilizing around a 4.6 to 5.0 million annual rate. Not bad at all.

Review of Last Week
AN UP AND DOWN WEEK…Things were volatile last
week on Wall Street with the proceedings even concluding in up-and-down
fashion, the Dow and the S&P 500 up for the period, but the tech-heavy
Nasdaq a bit down. As usual, the volatility was all Europe’s fault,
as a steady stream of news alternately stirred hopes and then fears that their
debt problems would be solved. There will be an EU summit this weekend
and another midweek, which could clear things up. Let’s hope.

Over here, Q3 corporate earnings season got off to a nice start, with around
70% of the companies reporting beating estimates. One glaring exception was
Apple, who missed as people waited for the new iPhone, and this dragged down
the Nasdaq. PPI wholesale inflation was up sharply for the month, but the Core
CPI consumer inflation the Fed follows came in lower than expected.
Manufacturing continues to show no signs of recession, with the Philadelphia Fed manufacturing index and Industrial Production both UP nicely and factory capacity at its highest level since August 2008!

For the week, the Dow ended UP 1.4%, at 11809 and the S&P 500 was UP 1.1%,
to 1238; but the Nasdaq slipped 1.1%, to 2637.

While most equities did well, bond prices didn’t fare too badly either. The
FNMA 3.5% bond we watch closed Friday at $100.31, up .08 for the week.
National average mortgage rates held steady, remaining at last week’s super low levels, according to Freddie Mac’s weekly survey of conforming mortgage rates.

DID YOU KNOW?…Homes listed on a Friday are 18.8% more likely to be
toured and 12% more likely to sell within 90 days than homes listed on other
days. This is from a study of 1.2 million listings over 21 months in 16 markets
nationwide.

>> This Week’s Forecast

NEW HOME
SALES, PENDING HOME SALES, GDP AND THE CONSUMER MINDSET… Wednesday, New Home Sales for September, are
expected to be up slightly to around a 300,000 annual rate. The
next day gives us Pending Home Sales for August. This measure of
signed contracts on Existing Homes can indicate actual sales a couple of months
out and it’s predicted to be down slightly from the prior month.

On the overall economy, we’ll have the GDP Advanced reading for Q3,
which ended September 30. The forecast is for an improvement, but with GDP
still well below 3%, there isn’t yet the strong growth needed for recovery.
What consumers think of all this will be reflected in Consumer Confidence
and the University of Michigan Consumer Sentiment index, which are
expected to hold steady.

The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and
interest rates down, while positive data points to lower bond prices and rising
loan rates.

 

The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its
accuracy. The material contained in the newsletter is the property of Academy
Mortgage and cannot be reproduced for any use without prior written consent. It
is designed for real estate and other financial professionals only. It is not
intended for consumer distribution. The material does not represent the opinion
of Academy Mortgage. NMLS# 180670

Posted in Uncategorized | Leave a comment