Last Week in Review
"IN THE SPRING, I HAVE COUNTED 136 DIFFERENT KINDS OF WEATHER. AND THAT WAS JUST INSIDE OF 24 HOURS." Mark Twain. And Bonds have certainly weathered all kinds of days this spring, with this past week being no exception. Bonds did enjoy some high times starting with Monday's move to the upside after National City Corporation announced they would be receiving a $7 Billion cash infusion. This move suggests that investors are seeing value in the battered financial sector, and perhaps are feeling that there is a bottom being reached in the credit crunch.
In other headlines, Existing Home Sales met expectations, but New Home Sales numbers for March were worse than expected, possibly due to the large increase in the costs for materials needed to construct a home. But then there was a change in climate on Friday, as inflation news from around the World created some strong adverse headwinds for Bonds and home loan rates. Overall, home loan rates ended the volatile week unchanged to slightly higher.
Now is still a good time to take advantage of historically low home loan rates before more inflation talk pushes them higher. I'm always here to help advise you, your friends, and your colleagues...no matter the season!
SPRING ISN'T JUST THE SEASON FOR CRAZY WEATHER...IT'S ALSO THE PERFECT TIME FOR SPRING CLEANING. CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME GREAT SPRING CLEANING TIPS AND ADVICE!
Forecast for the Week
After last week's relatively slow economic news calendar, things will heat up this week with several events that have the potential to move the market. On Wednesday, the Fed will announce their interest rate decision...and then the very next day, the Fed's most favored gauge of inflation will be released, the Personal Consumption Expenditure Index (PCE). It will be interesting to play armchair quarterback to the Fed's decision, and watch what the inflation numbers reveal! And let's not forget, on Friday we will see the important Jobs Report, where early estimates are for a net loss of 80,000 jobs.
As you can see in the chart below, Bond prices ended the week between a technical "floor of support" at the 200-day Moving Average and an overhead "ceiling of resistance" at the 50-day Moving Average...and that ceiling might just stop any improvement for Bonds and home loan rates for the short term, unless the news of the week is really Bond-friendly. We'll have to wait and see if the week's upcoming news leads to calm or stormy times ahead.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday Apr 25, 2008)
The Mortgage Market View...
SPRING HAS SPRUNG...
...and that means it's time to wash away those winter blues! In fact, according to the Soap and Detergent Association - did you even know there was such a thing? - three-quarters of Americans engage in spring-cleaning. In fact, their surveys indicated that more than 80 percent of people who spring clean agree that it helps them save time throughout the year, and 96 percent of people donate or discard items during their spring-cleaning.
But the advantages can go much further than that. Check out these top ten spring-cleaning activities, compiled by www.medicinenet.com, that can help make your home healthier and safer:
Thoroughly dust your home. Also clean any air conditioning and heating filters, ducts, and vents to minimize pollens and other airborne allergens.
Organize your medicine cabinet. Throw away expired medications and old prescription medicines that you no longer need.
Inventory your garage and basement. Get rid of any old paint, thinners, oils, solvents, stains, and other similar items you no longer need. Note: You may need to take these items to a hazardous waste drop off center.
Inventory under your sinks and around your house. Dispose of old or potentially toxic cleaning products.
Have your chimney professionally cleaned. This will help you lessen the chances of carbon monoxide exposure when the cold weather returns.
Clean all mold and mildew from bathrooms and other damp areas. Use non-toxic cleaning products.
Check your rugs. Make sure that rugs on bare floors have non-skid mats and that older or dusty mats are either washed or replaced.
Inspect outdoor playground equipment. Make sure that all elements are sturdy and safe, especially guardrails, protruding bolts, and other potential sources of injury.
Change your batteries. Do so for both smoke detectors and carbon monoxide detectors.
Collect old batteries throughout the house for disposal. Dispose of them in a battery recycling or hazardous waste center.
And make it easy on yourself - take it one room, one cleaning task at a time. You'll be more likely to accomplish more if you tackle each spring-cleaning project separately. And that's great advice...any time of year!
Monday, April 28, 2008
Video Blog week In review
Wednesday, April 23, 2008
Proof! How to Transform Your debt into wealth
Here is the Proof!
Finally, Discover How to Stop Living Paycheck to Paycheck...
Yes, You can Transform Your Debt into Wealth
and go From Middle Class to Millionaire-
Just Listen to what Peggy and Wayne Reusch Experienced
What would your life be like if you had no more bills- no more debt- no more stress and worry?
What would it mean to you and your family if you were able to save $850.21 Every month?
How would you feel having your home paid for in 12 years instead of 30 dreadfully long years?
Imagine the security in knowing you won't have to depend on Social Insecurity or pension during retirement...
It all starts with taking action. Stop procrastinating and start on the road to financial freedom today. Click here now to claim your Economic Problem Prevention Audit. You won't know how fantastic and abundant life can be until you've discovered first hand how you'll benefit from going through the Economic problem prevention audit.
I only accept 8 clients per month- taken on a first come first serve basis. Click here now to reserve your Audit.
Sunday, April 20, 2008
Last Week in Review
jk"THERE IS NOTHING WRONG WITH CHANGE, AS LONG AS IT IS IN THE RIGHT DIRECTION." ~ Winston Churchill.
One silver lining...some of the abuse that Bonds took was at the hands of somewhat positive economic news. Remember that positive or strong economic news tends to benefit Stocks, which in turn can pull money out of Bonds - which causes Bond prices to worsen and home loan rates to rise. So when news hit of a far better than forecast Retail Sales Report and much better than expected earnings reports from giants like Google, the financial markets responded by flowing money over into Stocks, and right out of Bonds, causing home loan rates to rise.
Also hurting Bonds was inflation chatter during speeches made by several Federal Reserve Presidents, who vocalized their concerns over the persistence of inflation in the current economy. Additionally, the Producer Price Index showed wholesale inflation to be climbing higher, thanks to record high oil prices and a seventeen-year high on food prices. Because inflation erodes the value of the fixed return provided by a Bond, the scent of inflation in the air always causes Bond prices to decline, and as a result, home loan rates will rise.
Even though Bond prices ended the week lower than they began, it is still a good time to take advantage of historically lower home loan rates before rising inflation continues to push rates higher. If you, or a friend, family member, neighbor or coworker needs advice on the latest changes in the market, please feel free to get in touch.
ANOTHER KIND OF CHANGE IS COMING SOON, AS POSTAGE RATES WILL INCREASE ON MAY 12. BUT BELIEVE IT OR NOT...THE POSTAL SERVICE IS ACTUALLY OFFERING SOME PRICE REDUCTIONS TOO! GET THE WHOLE STORY - AND LEARN HOW YOU MIGHT SAVE SOME CHANGE - IN THIS WEEK'S Economic MARKET VIEW.
Forecast for the Week
After last week's barrage of economic news, the calendar will quiet down this coming week. However, we will get a good look at the housing market via the Existing Home Sales Report on Wednesday, and the New Home Sales Report on Thursday - as well as a read on Durable Goods Orders.
What are those "durable goods" anyways? Simply put, they are items that are durable, or made to last longer than three years, such as cars, furniture, electronics, appliances, business equipment, games, cameras, etc. This report shows a good measure of consumer and business consumption and buying behavior, and depending on the health of the report, could bring some activity to the volatile financial markets.
As you can see in the chart below, Bond prices ended the week with a move higher from a "floor of support" at the 200-day Moving Average...but are now headed back towards an overhead "ceiling of resistance" which could stop their progress higher. Remember that when Bond prices move higher, home loan rates move lower...and vice versa. If the news of the coming week isn't Bond-friendly enough to help them bash their way through the overhead ceiling, Bond prices and home loan rates may worsen once again.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday Apr 18, 2008)
The Mortgage Market View...
A PENNY FOR YOUR THOUGHTS
Starting May 12th, it'll cost you one extra little penny to mail someone your thoughts. That's right...the US Postal Service is getting ready to make some price changes, and the biggest change for most consumers will be a price increase for First Class stamps from 41c to 42c.
The news isn't all bad, though. That's because for the first time in the history of the US Postal Service, the new pricing structure will include online price reductions, rebates, commercial volume and contract prices, as well as several other new incentives. The heat must be on the USPS to be competitive in pricing, as according to Postmaster General John Potter: "These innovative pricing incentives will make our products more attractive to all shippers, especially small businesses. We're pricing our products to sell in today's competitive shipping market."
The information below can help you plan for your postal expenses - and figure out a few ways that you can save - starting next month.
New Prices as of May 12
Consistent with The Postal Accountability and Enhancement Act, the average increase of the prices is at or below the rate of inflation as measured by the Consumer Price Index. Here's what the new pricing will be:
First-Class Mail letter 1 oz. = 42c (current price = 41c)
First-Class Mail letter 2 oz. = 59c (current price = 58c)
Postcard = 27c (current price = 26c)
Certified Mail = $2.70 (current price = $2.65)
First-Class Mail International to Canada and Mexico 1 oz. = 72c (current price = 69c)
First-Class Mail International to all other countries 1 oz. = 94c (current price = 90c)
Ways to Save...
Forever Stamps — Last year, the US Postal Service introduced Forever Stamps... and this is your chance to reap the rewards! You can purchase Forever Stamps prior to May 12 at the lower 41c rate, and then use them even after the price change. Forever Stamps are widely available through Post Offices, Contract Postal Units, consignment locations, Automated Postage Centers, and The Postal Store®. To help meet increased demand before the price change, the US Postal Service plans to have 5 Billion Forever Stamps in stock. So you shouldn't have any problems getting your hands on them.
In addition to Forever Stamps, the US Postal Service is introducing all new ways to help you save, including the following new incentives:
Express Mail — With the new "zone-based pricing system," you'll pay less when you send a letter to a nearby destination using Express Mail. You can also save 3 percent when you purchase Express Mail online or through a corporate account. Finally, additional price reductions are available if you ship quarterly minimums.
Priority Mail — The new pricing structure includes a provision to help you save an average of 3.5 percent when you use electronic postage or meet other requirements.
Parcel Select — Large- and medium-size shippers will receive pricing and volume incentives under the "last mile" delivery provision.
Parcel Return Service — A new weight-based pricing system will result in significant price reductions for the return shipping of lighter packages.
You can learn more about the new pricing structure at www.usps.com/prices, and you can purchase Forever Stamps at your local Post Office or online at The Postal Store®.
Case Study. How to make $52,161.23 on one real-estate deal without any of your own money.
Case Study. How to make $52,161.23 on one real-estate deal without any of your own money.
It’s true. Recently a group of 3 clients that I had the honors of transforming their debt into wealth using my proprietary Un-Fair Economic advantage system ® wanted to break into the real-estate game. The only challenge they faced was lack of capital to invest. That’s the reason they engaged me again, this time as their real-estate coach.
To identify the ideal property they used a 3 part process of finding and analyzing the properties. In a little under a month they successfully had an accepted offer on an ideal property.
Next challenge to overcome Where to get the money.. No challenge when you understand the fund it wealth strategy.
I revealed to the group an investment secret I used for years (and still use to this day) on how to buy and sell real-estate with little or no money. 4 days after their accepted offer we got them all the money they needed to buy the house and 20 thousand dollars additional to FIX the property.
Yes you read that right. They purchased the house with no money out of their pocket- and received 20k additional to improve the property.
• Not only did we show them how to buy the house with no money, and get 20k for the improvements I also showed them a secret on how to postpone the mortgage payments until they sell the house. They did not have to worry about making those dreadful mortgage payments.
4 weeks later the house was completely renovated under budget.
Now many of you may be saying great but how are you going to sell a house in this market? Simple. Use the Flip it marketing strategies’ to sell the house lightening fast. In fact they did just that. 5 days on the market the house was sold for full asking price- in this so called down real-estate market.
Bottom line the group walked away with a cool $52,161.23 in cold hard cash. Not bad for their first deal.
If this group can do it so can you. The first thing you should do is what the 3 of them did.
Step 1 Get an economic problem prevention audit by going to www.savemonthly.com/audit
Step 2 Get a detailed bullet proof plan for transforming your debt into wealth.
Step 3 Follow the plan and get wealthy.
Step 4 Have fun during your journey to prosperity
Expect Success
Billy Alvaro
Economic Advisor Wealth Coach
P.S The economic Problem prevention audit will give you a detailed blue print on transforming your debt into wealth. In fact on page 13 of the 21 page Free Report How to Stop Living Paycheck to Paycheck and transform your debt into wealth in 7 easy steps , I give you a detailed break down of what the audit will do for you. Reserve your free copy by visiting www.savemonthly.com on the right hand side request the report.
P.P.S Want to bust into the real-estate investing market but don’t know how/ don’t sweat it. To get on my real-estate riches coaching waiting list email me at balvaro@savemonthly.com in the subject line put Real-estate Riches waiting list. I’ll let you know when I have an opening.
Saturday, April 12, 2008
Week in Review
"IT REQUIRES A GREAT DEAL OF BOLDNESS AND A GREAT DEAL OF CAUTION TO MAKE A GREAT FORTUNE." ~ Ralph Waldo Emerson. And a great deal of caution was definitely important last week, as "earnings season" began on Wall Street. First quarter earnings for Stocks got off to a bit of a rough start, with disappointing news from aluminum company Alcoa - always the first in line to report. And General Electric surprised to the downside on Friday, with worse than expected earnings and comments on future earnings, cautioning they'd likely be lower than previously thought. The Stock market didn't like the negative tone and lost some ground, while Bonds moved both up and down during the week - hurt by some inflationary fears, but helped by cash coming over from Stocks. For the week overall, home loan rates ended up close to where they began.
In other news last week, "Meeting Minutes" from the March 18th Fed meeting revealed that infamous Fed Presidents Richard "Loose Lips" Fisher and Charlie Plosser both dissented from the recent decision to cut the Fed Funds Rate, stating that "inflation expectations could potentially become unhinged, if the Fed continues to lower the Fed Funds Rate in the current environment." Bold comments from two who clearly believe caution regarding inflation is of the utmost importance.
And caution, rather than confidence, seems to be the word of the moment, as Consumer Sentiment for April was reported far below expectations, representing a 26-yr low for the index. This very ugly reading suggests that consumers may be hesitant to make large purchases, which does not bode well for future economic prospects.
Despite the dark cloud cast from the negative economic news, the silver lining is that home loan rates are once again near levels not seen since mid-2005. But remember, these low rates can change quickly. To see how you may benefit from the current market conditions, feel free to contact me.
SPEAKING OF GREAT FORTUNES, ARE YOU EXPECTING A REFUND BACK FROM THE IRS THIS YEAR? OR ARE YOU ONE OF THE MILLIONS WHO HAVEN'T FILED YET? CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME IMPORTANT LAST-MINUTE TAX TIPS!
Forecast for the Week
And with the word "caution" in mind...there are several reports due this week which could impact the markets and home loan rates. Monday's Retail Sales Report will kick-off the week with some potential for volatility, and Wednesday will bring the inflation measuring Consumer Price Index, as well as a read on the housing market via the Housing Starts and Building Permits Report.
Bonds continue to bounce around in a wide range - and remember, when Bond prices move higher, home loan rates move lower...and vice versa. The chart below shows how Bond prices are recently moving between a floor of support at the 50-day Moving Average, and an overhead ceiling representing recent price "highs".
So stay tuned - if this week's news turns out to be as negative as it has of late, Bond prices and home loan rates could find a bit more improvement.
TAX TIME IS HERE AGAIN...
"I shall never use profanity...except in discussing house rent and taxes." ~Mark Twain. April 15 is just a few days away...and hopefully this year's tax season hasn't caused too much profanity in your household. Of course it's always wise to be careful about criticizing the IRS, but no matter what you feel like saying about them at the moment, they have compiled these helpful tips for last-minute filers:
Go electronic. The biggest advice the IRS has for last-minute filers is to file an e-return rather than a paper tax form. The IRS considers this the best step for ensuring that your return is complete and accurate.
Check it carefully - then check it again. If you choose to file a paper return, make sure you double-check your numbers and figures. The numbers to check most carefully are the identification numbers--usually Social Security numbers--for each person listed. Missing, illegible, or incorrect Social Security Numbers can reduce or delay a tax refund.
Also, you should double check that you have correctly calculated the refund or balance due, and that you have used the right figure from the tax table. If you are entitled to a refund this year, make sure that your financial institution's routing and account numbers are entered accurately. Incorrect numbers can cause the refund to be delayed or even misdirected.
Sign on the bottom line. Don't forget to sign and date your return. If you are filing a joint return, both spouses must sign it...even if only one had income. Also, anyone that you pay to help prepare your return must sign it as well.
Make payable to...? If you owe taxes this year, you must make the check out to "United States Treasury." Do not make the check out to "IRS." Your payment should be enclosed with the tax return or the Form 1040-V, Payment Voucher (if used), but do not attach your payment to either document.
Don't throw away those labels. If you choose to mail a paper return, use the peel-off label on the tax booklet. You can line through and make corrections right on the label if necessary. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.
Don't be late! By the April 15 due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.
For more information, as well as forms and publications, visit www.IRS.gov. Remember the official IRS governmental Web site is www.irs.gov. Don't be confused by internet sites that end in .com, .net, .org, or other designations instead of .gov. And for a complete checklist and a listing of some of the most common errors, visit http://www.irs.gov/taxtopics/tc303.html, or call the IRS's TeleTax number, 800-829-4477.
