The Deanes Group - Mortgage and Real Estate Blog

MMG Weekly: Something to sing about in 2011

noreply@blogger.com (Deanes Group) — Mon, 03 Jan 2011 19:00:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com

www.deanesgroup.com

In This Issue...

Last Week in Review: Traders were singing one minute only to scream the next. Read below to see why!

Forecast for the Week: How many high-impact reports can you fit in a week? Find out below.

Video View: Which credit card is right for you? Discover how to decide... plus learn about new rules that impact you!

Last Week in Review

"Wild thing! You make my heart sing!" - By The Troggs. Traders found themselves singing one minute only to be screaming the next, as Bonds saw huge swings up and down of 100 basis points on multiple days last week.

Remember, home loan rates are based on Mortgage Bond prices, so huge swings in Bonds causes home loan rates to shift as well. This underscores why it's so important to work with a knowledgeable professional who understands how interconnected the market is and can help homeowners lock in at the most opportune times.

To help make sense of the volatility, here's a montage of the top 5 hits last week that Traders and Bond investors appeared to be singing... and why.

#1 "Monday, Monday... so good to me." - By The Mammas and the Papas

Last week started out with Bond prices receiving a nice bump on Monday thanks to strong demand for the Treasury Department's auction of $35 Billion in 2-Year Notes.

#2 "Bonds in low places." - To paraphrase Garth Brooks

On Tuesday, the Treasury Department auctioned off another $35 Billion... this time in 5-Year Notes, which carry more inflation risk. That auction wasn't received nearly as well and sparked a sell off of Bonds.

To make matters worse, the sell off was exacerbated by the ultra-thin holiday trading volume. In other words, with many Traders out of the office for the holidays, there simply weren't enough buyers in the market to offset the selling. So when prices dropped on Tuesday, the selling pressure gained momentum with each sale and the losses grew more dramatic. The end result was a drop of 100 basis points in Bond prices!

#3 "I'm Back. Bonds have lifted. And raised the gifted." - To paraphrase Kid Rock

What a difference a day makes! Just one day after Bonds dropped 100 basis points, the opposite happened and Bonds saw a huge upswing. How was that even possible? Bargain hunting and a strong performance by the Treasury Department's 7-Year Note auction were the catalysts behind the move, as buyers came out in droves and pushed Bonds up 119 basis points!

#4 "Home sweet home!" - By Mötley Crüe

Volatility wasn't the only story that hit home last week. The final S&P Case-Shiller Home Price Index for the year was also released last week. According to the report, home prices in 20 metropolitan cities fell 0.8%, which was below the 0.1% improvement that was expected and the sharpest year-over-year decline in a year. This was not a good report, and when you consider more foreclosures coming to the market, it is likely that home prices could remain under pressure for part of 2011. Stubbornly high unemployment has played a role in seeing meaningful improvement in housing.

#5 "You're unbelievable!" - By EMF

The volatility continued throughout the week, swinging another 54 basis points on Thursday alone. But in the end - through all the ups and downs - Bonds and home loan rates were able to finish the week strong. That means home loan rates are still unbelievably low as we start the new year.

That means you still have something to sing about. Despite the overall negative trend, home loan rates are still near historic lows... at least for the time being. That may not be the case in the weeks and months ahead. Call or email today to start the process - it only takes a few minutes.

Forecast for the Week

The new year kicks off with a bang, as nearly all of the reports due out this week are rated as having the potential for a high impact on the markets!

We start off right away Monday morning with the ISM Index. This is the king of all manufacturing indices and is considered the single best snapshot of the factory sector, so it has the potential to move the markets if it doesn't meet expectations that it will come in better than the prior reading.
Tuesday brings us the first release of FOMC Minutes of the year. Although the Fed has already released its policy statement, the markets will be examining the minutes closely for indications of the Fed's thinking regarding important topics like inflation, rates, and the overall economy.
We'll also see some important employment news this week. First up is the ADP National Employment Report on Wednesday, which measures non-farm private employment. The report is expected to show fewer jobs created in December than the previous reading of 93,000 jobs created in November.
The ADP Report will be followed the next day with another round of Initial Jobless Claims on Thursday. In last week's report, Initial Jobless Claims was reported at the lowest level since July 2008. That was good news for the labor market, but we still need to see if this report was skewed by the holidays or if it was the start of a trend lower in new unemployment claims.
The big news of the week will be the release of the all-important Jobs Report this Friday. The Average Work Week and Unemployment Rate are expected to hold steady, while Hourly Earnings and Non-Farm Payrolls are expected to rise.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

The important thing to note in the chart below is that the overall trend for Bond prices has been downward, which is not good for home loan rates. But last week, Bonds were able to finish strong, which demonstrates that there are opportunities to benefit from positive shifts in the market and low home loan rates despite the overall negative trend.

If you or someone you know has been thinking about purchasing or refinancing a home, call or email today to discuss your goals and how you can take advantage of these nice bumps in the Bond market.

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Chart: Fannie Mae 4.0% Mortgage Bond (Friday, December 31, 2010)

The Mortgage Market Guide View...

Which Card is Right for You?

These days, most people use at least one credit card and many of us use more than one. And while it's certainly important to avoid amassing large amounts of debt, it's also important to make sure you pick the right credit card for you. The following video from Kiplinger.com contains tips that can help you do just that.

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Economic Calendar for the Week of January 3-7, 2011

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of January 03 - January 07

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Mon. January 03	10:00	ISM Index	Dec	58.0		56.6	HIGH
Tue. January 04	02:00	FOMC Minutes	12/14				HIGH
Wed. January 05	08:15	ADP National Employment Report	Dec	100K		93K	HIGH
Wed. January 05	10:00	ISM Services Index	Dec	55.6		55.0	Moderate
Thu. January 06	08:30	Jobless Claims (Initial)	01/01	405K		388K	Moderate
Fri. January 07	08:30	Non-farm Payrolls	Dec	132K		39K	HIGH
Fri. January 07	08:30	Unemployment Rate	Dec	9.8%		9.8%	HIGH
Fri. January 07	08:30	Hourly Earnings	Dec	0.1%		0.0%	HIGH
Fri. January 07	08:30	Average Work Week	Dec	34.3		34.3	HIGH

Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

MMG Weekly: Where are rates headed - and why?

noreply@blogger.com (Deanes Group) — Mon, 13 Dec 2010 20:45:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com

www.deanesgroup.com

In This Issue

Last Week in Review: Are rates going to come back? Here's a break down of possible scenarios!

Forecast for the Week: Get ready for a busy week. Find out what you should watch.

View: Know someone in college or headed there soon? Watch the video below for tips to avoid unexpected college costs.

Last Week in Review

"Where do we go from here?" That question from Alicia Keys? song is on the minds of many Americans, as they wonder where home loan rates are headed after the recent negative news for Bonds.

Last week, Congress was busy at work on negotiations to extend the Bush-era tax cuts. That news kept a lid on any improvement for Bonds and home loan rates, due to the prospect of an ever-increasing deficit.

And adding to the troubles for Bonds and home loan rates last week was news that inflation is growing in China... and growing fast. How does that impact us? Remember, it's a global economy, so Bond prices all over the world worsen on news of inflation, which is bad for home loan rates.

So the big question is: Will home loan rates go back down?

Although rates are still near historic lows, they have been headed up... and indications are that those unbelievably low home loan rates may be behind us. In fact, there are only a few things that would bring back the lows that we saw in early November:

If the tax cut package doesn't get passed, it would be very bad news for the economy and Stock market - but it would help interest rates.
If the Fed's recent round of Quantitative Easing falls on its face and doesn't meet its mission of creating inflation, boosting Stock prices, lowering unemployment and creating consumer demand - Bond prices could make some gains as the threat of deflation reemerges. But this is a long shot.
If the financial problems in Europe worsen significantly - which would drive investors into the safe haven of the US Bond market - it could help Bond prices, but probably only modestly.

Realistically, the chances of these events happening are unlikely - and in the end, rates may see some brief and fleeting improvements, but many experts believe they will likely continue to creep up over time. And when you include the stimulative action of extending the present tax rates and adding further cuts, it's tough to see Bonds or home loan rates improving much.

The good news is that home loan rates are still extremely attractive and are still near historic lows for now. If you or someone you know has been thinking about purchasing or refinancing a home, NOW is the time to call or email to get started.

Forecast for the Week

Get ready for a busy week of economic reports and news that could impact home loan rates!

We'll start off Tuesday morning with the Retail Sales report for November, as well as the Fed's final FOMC Meeting and Policy Statement of the year coming on Wednesday.
We'll also see new inflation reports starting on Tuesday with the Producer Price Index (PPI), which measures inflation at the wholesale level. The very next day, we'll see the Consumer Price Index (CPI) with a look at inflation on the consumer level. With all of the recent talk over inflation concerns in the future, it will be important to see what these reports reveal - since inflation is the archenemy of Bonds and home loan rates.
We'll also get a dose of manufacturing news in the Empire State Index, which looks at New York State's manufacturing sector, and is a good gauge of manufacturing overall. On Thursday, we'll also see the Philadelphia Fed Index, which is another important manufacturing report. Those two indices have the potential to impact the market, since they indicate the health of the manufacturing sector in the US.
Thursday brings the Initial and Continuing Jobless Claims Report. Last week, Initial Jobless Claims came in at 421,000, which was below expectations. That was encouraging news, but we still need to see consistent readings below 400,000 before real confidence in the labor market can take hold.
Finally, we'll see more housing news this week, when reports on Housing Starts and Building Permits in November are released on Thursday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

The chart below shows the recent direction of Bonds - and, therefore, home loan rates. The important thing to note is the downward trend, which shows how Bond pricing and therefore home loan rates continued to worsen last week.

Fortunately, there's still time to lock in at near historic lows. It only takes a few minutes to see if this makes sense for you, or one of your friends, family members, neighbors, clients or coworkers. Call or email today, and I'll be happy to help right away.

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Chart: Fannie Mae 4.0% Mortgage Bond (Friday, December 10, 2010)

The Mortgage Market Guide View...

Surprise: More College Expenses! Here's How to Avoid Them...

College tuition costs are staggering these days - and so are some of the college-related expenses that you may not be expecting. Watch this video from Kiplinger.com on unexpected college expenses to come up with ways to avoid those indirect costs.

Whether you're planning to send a child to college soon or you know a student in college this year that has already experienced some of these unexpected costs, this video is invaluable!

--------------------------

Economic Calendar for the Week of December 13-17, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of December 13 - December 17

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Tue. December 14	08:30	Producer Price Index (PPI)	Nov	0.5%		0.4%	Moderate
Tue. December 14	08:30	Core Producer Price Index (PPI)	Nov	0.2%		-0.6%	Moderate
Tue. December 14	08:30	Retail Sales	Nov	0.8%		1.2%	HIGH
Tue. December 14	08:30	Retail Sales ex-auto	Nov	0.6%		0.4%	HIGH
Tue. December 14	02:15	FOMC Meeting	12/14	Unch		0.25%	HIGH
Wed. December 15	08:30	Empire State Index	Dec	3.0		-11.14	Moderate
Wed. December 15	08:30	Core Consumer Price Index (CPI)	Nov	0.1%		0.0%	HIGH
Wed. December 15	08:30	Consumer Price Index (CPI)	Nov	0.2%		0.2%	HIGH
Wed. December 15	09:15	Industrial Production	Nov	0.3%		0.0%	Moderate
Wed. December 15	09:15	Capacity Utilization	Nov	75.0%		74.8%	Moderate
Thu. December 16	08:30	Jobless Claims (Initial)	12/11	425K		421K	Moderate
Thu. December 16	08:30	Housing Starts	Nov	545K		519K	Moderate
Thu. December 16	08:30	Building Permits	Nov	558K		550K	Moderate
Thu. December 16	10:00	Philadelphia Fed Index	Dec	12.5		22.5	Moderate
Thu. December 16	10:00	Index of Leading Econ Ind (LEI)	Nov	1.2%		0.5%	Low

[mmgwDisclosure]

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

YOU Magazine: Are You Missing This?

noreply@blogger.com (Deanes Group) — Mon, 13 Dec 2010 17:14:00 +0000

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Edward F. W. Deanes
Home Mortgage Consultant
Wells Fargo Home Mortgage
Phone: (757) 418-2064
Fax: (866) 935-0661
edward.deanes@wellsfargo.com
www.deanesgroup.com

December 2010


	November 2010
	October 2010
	September 2010
	August 2010
	July 2010
	June 2010

Home (of Your Own) for the Holidays? Now May Be the Perfect Time to Buy There's no place like home for creating memories. And no place like home for the holidays. While it may sound a bit crazy to add this to your shopping list...this holiday season could be the very best time in history to give yourself the gift of a new home. Keep Reading »

The Simple Truths of Appreciation Acknowledging the People Who Matter Most Mary Kay Ash, founder of Mary Kay Cosmetics and one of the most successful entrepreneurs of all time, once noted, "Everyone wants to be appreciated, so if you appreciate someone, don't keep it a secret." Those are important words to live by not just during the holidays, but any time of year. Keep Reading »

December Dish Creating the Perfect Hearty Dinner By Kirk Leins December has arrived, and it's brought along some unfortunate baggage. It's freezing outside, our social calendars are booked solid, work is busier than ever, and our to-do lists are overwhelming. And, as if the cold and the chaos aren't enough to deal with, there's yet another challenge we face. I'm talking about the harsh demands of preparing weeknight dinners. Keep Reading »

Last Minute Holiday Travel Tips... For Planes, Trains and Automobiles By Marianne Schwab Do you remember the old Steve Martin movie about doing whatever it takes to get home for Thanksgiving? Well, whether you're taking planes, trains or automobiles to get home for the holidays, traveling can be very expensive and stressful...especially if you've waited until the last minute to make your plans. Keep Reading »

Vitamin D: The Key to Good Health What Deficiencies Could Mean to You By Dr. Linda Mundorff, MPH, MSN, ND, RN, CNC, CTN The news is out: Vitamin D is a hormone (not a vitamin) that targets more than 2,000 genes in the body. That's 10 percent of the total number of genes in the human body! But that is not all. Deficiencies have been implicated in at least 17 different cancer types, cardiovascular disease, ankylosing spondylitis, birth defects, and more. Keep Reading »

Signs Your Parents May Need Help With Money Tasks Look for these red flags when you spend time with mom and dad over the holidays. By Cameron Huddleston, Kiplinger.com The holidays can be a good time to assess whether aging parents are having memory issues and need help managing their finances – as well as other tasks. You might not notice many of the early signs of dementia if your only contact with your parents is by phone. But if you spend several days with them over Thanksgiving or Christmas, you should get a better picture of how they're coping. Keep Reading »

Licensed Loan Officer - Licensed Real Estate Agent - This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo. You are receiving a complimentary subscription to YOU Magazine as a result of your ongoing business relationship with Edward F. W. Deanes. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials. UNSUBSCRIBE to YOU Magazine. In the unlikely event you decide that you would not like to receive your complimentary subscription to YOU Magazine, please reply to this email with "Remove" in the subject line. INVITE A FRIEND to receive YOU Magazine. Please feel free to invite your friends and colleagues to subscribe. SUBSCRIBE to YOU Magazine. If you received this message from a friend, you can subscribe online.
Edward F. W. Deanes Wells Fargo Home Mortgage 4456 Corporation Lane, Suite 100 Virginia Beach, VA 23462
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Fed Meeting

noreply@blogger.com (Deanes Group) — Wed, 08 Dec 2010 20:30:00 +0000

The Fed meets next week...but you don't need to hear from the Fed to know that now is a great time to refinance or purchase a home. Call me to see how you can benefit from today's historically low rates.

Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

MMG Weekly: Jobs Report an Unexpected Stinker

noreply@blogger.com (Deanes Group) — Mon, 06 Dec 2010 23:41:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com

www.deanesgroup.com

In This Issue

Last Week in Review: The Jobs Report numbers for November are in. Find out what you need to know about the numbers behind the headline!

Forecast for the Week: Volatility in the markets is sure to continue. Read the forecast below to see why.

View: Want to "penalty-proof" your 2010 tax return? Read the View article below to act now.

Last Week in Review

"Don't believe the hype." Unfortunately, the lyrics from Public Enemy's hit song came true last week when the official Jobs Report for November was released.

Overall, Traders were caught by surprise last Friday when the Jobs Report came in way below estimates. The private sector numbers also disappointed. But let's look at some important information behind the headline number.

First, on a positive note, last week's report included upward revisions to the past two months. Those revisions showed that the economy produced 38,000 more jobs than previously reported. What caused these revisions? The headline number of jobs lost or created comes from the Business Survey or CES (Current Employment Statistics) Survey, which surveys about 140,000 businesses and government agencies - and uses the birth/death ratio to help calculate or guesstimate the monthly number. Because there are often inaccuracies with that guesstimate, the real final numbers show up in future monthly revisions.

Second, on a grim note, the Unemployment Rate ticked up to 9.8%, from the prior month's 9.6%. It's important to note that the unemployment rate is derived from a survey from the Labor Department called the Household Survey or Current Population Survey (CPS) - and this survey is more accurate than the business survey as the information comes from actual phone calls to 50,000-60,000 households.

So when all is said and done, last week's Jobs Report begs the following questions going forward:

Was the recent string of economic reports more hype than actual signs that the economy was improving?

Will future reports coincide with last Friday's weak Jobs Report?

Or was the Jobs Report's weak reading just a small bump on the road to recovery, with potential future upward revisions tempering November's numbers like we saw happen with the last two months?

Time will tell, but one thing is for sure: The Fed was watching the Jobs Report closely and will likely use the weak report as evidence to pump the full dose of Quantitative Easing 2 (QE2) into the economy. Remember, Quantitative Easing is the concept of the Fed becoming a buyer of Treasuries and Bonds to try and stimulate the economy. While QE2 may be good for the economy, it is likely to be unfriendly to Bonds and home loan rates, as we saw last week when Bonds and home loan rates ended the week worse than where they began.

Forecast for the Week

Compared to last week's busy economic report calendar, this week is light on scheduled reports. But between QE2, Treasury auctions, and the uncertainty in Europe, the volatility in our markets is sure to continue... and that's certainly no hype.

Thursday brings the Initial and Continuing Jobless Claims Report. Last week, Initial Claims were reported above expectations at 436,000. However the 4-week moving average did decline to the lowest reading since August 2, 2008. While this was good news, it was tempered by the weaker-than-expected Jobs Report data last Friday. Remember, we need to see Initial Claims make a sustained movement below 400,000 for the market to feel confident that labor is recovering.

Also, the Treasury will sell $32 Billion in 3-Year Notes on Tuesday, $21 Billion in 10-Years on Wednesday and $13 Billion in 30-Year Bonds on Thursday. It will be interesting to see how these auctions perform in light of the recent spike higher in yields. Ending the week will be the Consumer Sentiment Index on Friday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds and home loan rates have worsened over the last month since the start of QE2. Despite this, an opportunity still exists, as home loan rates are still at historically low levels for now.

Give me a call if you want to review your situation, or forward this email to a friend, family member or colleague who might benefit. I'm always happy to talk to your referrals and provide a complimentary consultation.
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Chart: Fannie Mae 4.0% Mortgage Bond (Friday, December 3, 2010)

The Mortgage Market Guide View...

Penalty-Proof Your Tax Return

Adjust your tax withholding now to boost your take-home pay or to avoid underpayment penalties when you file your 2010 tax return.

By Mary Beth Franklin, Kiplinger.com

When you file your tax return each year, the amount of tax withheld from your paycheck or submitted through estimated quarterly tax payments ideally should match the amount of tax you owe. In reality, that seldom happens.

Most Americans are addicted to tax refunds, as evidenced by the fact that the average income-tax refund rose again this year to a record of nearly $2,900. In essence, more than 75% of U.S. taxpayers gave Uncle Sam an interest-free loan. Many of the remaining taxpayers ended up owing money, and some had to fork over an extra 10% penalty for having too little tax withheld throughout the year.

Both situations are easy to remedy, but you have to act before the end of the year. Just file a revised Form W-4 with your employer. The more "allowances" you claim on the W-4, the less tax will be withheld; the fewer you claim, the more tax will be withheld. You can also ask your employer to withhold a flat amount from your paycheck.

If you regularly get a refund, you've already banked most of it and will still get a refund next spring. But you can stop the leakage from your last few paychecks of the year by adjusting your W-4 now. Worksheets that come with the W-4 will help, or you can struggle through the IRS's online withholding calculator.

But we've got a better idea. If your current financial situation is similar to last year's, just use our Tax Withholding Calculator. Answer three simple questions (you'll find the answers on your 2009 tax return) and we'll estimate how many additional allowances you deserve -- and even show you how much your take-home pay will rise starting next payday, if you claim the allowances on a new W-4. (However, this shortcut won't be much help if your tax situation has changed since last year because, for example, you have a new baby or got a new job).

On the other hand, if you expect that you'll owe money when you file your 2010 tax return next spring, you can avoid an underpayment penalty by boosting your withholding now. You needn't pay every penny of the tax you expect to owe. As long as you prepay 90% of this year's tax bill, you're off the hook for the penalty. Or, you can escape its reach, in most cases, by prepaying 100% of your 2009 tax liability. (But if your 2009 adjusted gross income topped $150,000, you'll have to prepay 110% of last year's tax liability to avoid a penalty, even if your 2010 tax far exceeds your pay-ins.)

If you have both wage and consulting income and expect to owe money on your tax return, boost the taxes withheld from your last few paychecks rather than trying to make up the shortfall with your final estimated quarterly payment due January 18, 2011 (because January 15 is a Saturday and the following Monday is a federal holiday). Taxes that are withheld are treated as if they were spread out evenly throughout the year, sidestepping an underpayment penalty; the estimated-tax-payment approach does not.

Reprinted with permission. All Contents c2010 The Kiplinger Washington Editors. www.kiplinger.com.

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Economic Calendar for the Week of December 6-10, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of December 06 - December 10

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Thu. December 09	08:30	Jobless Claims (Initial)	12/4	430K		436K	Moderate
Fri. December 10	08:30	Balance of Trade	Oct	-$44.0B		-$44.0B	Moderate
Fri. December 10	10:00	Consumer Sentiment Index (UoM)	Dec	72.2		71.6	Moderate

[mmgwDisclosure]

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

MMG Weekly: Special Holiday Issue

noreply@blogger.com (Deanes Group) — Mon, 29 Nov 2010 21:03:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com

www.deanesgroup.com

Last Week in Review

I hope you enjoyed a wonderful Thanksgiving weekend with friends and family. I know that I certainly have much to be thankful for, including many wonderful clients and friends like you.

As your Trusted Advisor, I sincerely hope you've been enjoying your complimentary subscription to the Mortgage Market Guide Weekly. Your next full issue will arrive "hot off the press" next week. In the meantime, please enjoy the holiday article below.

The Mortgage Market Guide Weekly is the industry's leading publication of this type, and I'm pleased to provide this valuable resource to you. If you feel that any of your clients, friends, family members or associates would benefit from keeping up-to-date on market and economic trends with this easy-to-read format, please let me know, and I will be happy to add them free of charge.

Best wishes to you.

The Mortgage Market Guide View...

The Little Known – but true – History of Thanksgiving…

Despite the popular belief that Thanksgiving originated with the colony at Plymouth Plantation in 1621, researchers have actually pinpointed the actual first Thanksgiving to have been held a whopping 56 years earlier.

According to scholars, the first known Thanksgiving took place during September 1565, in Saint Augustine, Florida when Spanish settlers held a Mass of Thanksgiving after arriving safely in the new world. It wasn't until 1619 when English settlers in the Virginia Colony held a similar day of thanks…and then two full years after that, the colonists at Plymouth Plantation celebrated the famed Thanksgiving of 1621.

But the story doesn't end there.

Around 1789, President George Washington proclaimed "a day of thanks" to be observed. It was not an official national holiday, but it did become popular with many Americans, who would select their own state or city observance day, usually in the fall. But not everyone was in favor…there were people going through hardships who were actually against having a day dedicated for giving thanks. In fact, Thomas Jefferson himself scoffed at the idea of a thanksgiving day.

But most Americans liked the idea, and around the time of the Civil War, this day of thanks had become a very popular – yet unofficial – event. Magazine editor and writer Sarah Josepha Hale took up the cause, and wrote many editorials and letters to politicians about making an official "day of thanks." (You might know Sarah yourself, from her epic poem, "Mary Had a Little Lamb.") Her strong efforts paid off, and around the end of 1863, President Lincoln officially proclaimed a "day of thanksgiving" to be observed on the last Thursday of November.

But then in 1939, during the Great Depression, President Franklin Delano Roosevelt switched Lincoln's chosen date of the last Thursday of November to the second-to-last Thursday of November. Why? Purely in order to extend the post-Thanksgiving, pre-Christmas shopping season! The move was met with confusion and criticism – so in 1942, Congress signed a law making Thanksgiving the fourth Thursday of November, a law which is still in effect today.

No matter how you celebrate the Thanksgiving holiday, remember the words of John F. Kennedy: "As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them." May this holiday season be the most wonderful time of year for you and your family, friends, and colleagues!

Economic Calendar for the Week of November 29 - December 03

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Tue. November 30	09:45	Chicago PMI	Nov	59.8		60.6	HIGH
Tue. November 30	10:00	Consumer Confidence	Nov	52.0		50.2	Moderate
Wed. December 01	08:15	ADP National Employment Report	Nov	58K		43K	HIGH
Wed. December 01	08:30	Productivity	Q3	2.4%		1.9	Moderate
Wed. December 01	10:00	ISM Index	Nov	56.4		56.9	HIGH
Wed. December 01	02:00	Beige Book	Dec				Moderate
Thu. December 02	08:30	Jobless Claims (Initial)	11/27	423K		407K	Moderate
Thu. December 02	10:00	Pending Home Sales	Oct	0.0%		-1.8%	Moderate
Fri. December 03	08:30	Non-farm Payrolls	Nov	130K		151K	HIGH
Fri. December 03	08:30	Unemployment Rate	Nov	9.6%		9.6%	HIGH
Fri. December 03	08:30	Hourly Earnings	Nov	0.1%		0.2%	HIGH
Fri. December 03	08:30	Average Work Week	Nov	34.3		34.3	HIGH

[mmgwDisclosure]

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Homes & Money Newsletter - 4th Quarter 2010

noreply@blogger.com (Deanes Group) — Fri, 19 Nov 2010 22:17:00 +0000

Edward F. W. Deanes
Home Mortgage Consultant
Wells Fargo Home Mortgage
Phone: (757) 418-2064
Fax: (866) 935-0661
edward.deanes@wellsfargo.com
www.deanesgroup.com

Mortgage News
What Does the Fed's Quantitative Easing Mean to the Economy and Home Loan Rates?

In the statement released after its November meeting, the Federal Reserve announced that it will purchase a further $600 Billion of longer-term Treasury securities by the end of the second quarter of 2011, in what is known as another round of Quantitative Easing (or QE2).

To help you understand what this means to the economy and to you, let's break down the details, starting with what Quantitative Easing is and the reasons behind this move by the Fed.

What is Quantitative Easing?

Quantitative Easing is the concept of the Fed becoming a heavy buyer of Treasuries and Bonds. This is done to artificially cause those security prices to move higher under the increased demand. That demand should, in turn, cause interest rates to move lower with the hope of stimulating the economy.

What other impacts might it have?

QE2 will almost assuredly hurt the US Dollar, which helps make US exports more affordable abroad as well as make imports appear relatively more expensive. Such a shift helps large multi-national companies, which have a large influence on the economy and the major Stock market indices.

Of course, the Fed can't outright say it is trying to weaken the currency. After all, haven't many members of Congress and the Administration been bashing China for currency manipulation?

But the point is, even if QE2 doesn't have a direct impact, the drop in currency value can be very beneficial to corporations and Stocks.

How can QE2 impact home loan rates?

While Stocks should benefit from another round of Quantitative Easing, Bonds may have a different reaction. And that brings us to the heart of what you need to know: What does QE2 mean to Bonds and home loan rates?

With another round of Quantitative Easing, Bond prices should initially improve because QE2 includes large Bond purchases.

But...the key word is "initially." That's because, even if Bonds show signs of initially improving, the eventual softening of the Dollar, rising commodity prices, and rise in Stock prices could become a drag on Bonds, which would negatively impact home loan rates.

The bottom line is, QE2 and a weaker US Dollar may make our exports more attractive to foreign buyers, but it may ultimately drive rates higher. That's an important point to consider if you're thinking about refinancing or purchasing a new home. The reality is, home loan rates are still near historic lows, but won't be forever.

If you know anyone who is looking to buy, sell or refinance a home, please forward their name and telephone number to us. We will happily provide the same high level of service that we have provided to you. The greatest compliment you could possibly give us is the referral of your friends and family.

Finance News
Depositors Get a Permanent Raise
Higher FDIC insurance limits on accounts were made permanent.

by Joan Goldwasser, Kiplinger.com

Tucked among the pages of the massive financial-reform act was good news for depositors: a permanent extension of the Federal Deposit Insurance Corp. insurance limit to $250,000. Congress had temporarily raised the limit in October 2008 from $100,000 to $250,000, but the higher limit was scheduled to expire at the end of 2013.

So if you have checking and savings accounts at the same institution, you are covered as long as the total of your balances does not exceed $250,000. The same is true for all your retirement accounts. The balances – whether they are traditional IRAs, Roth IRAs, SEP IRAs, Keogh accounts or solo 401(k) s – are totaled and the first $250,000 is protected. Anything above that amount is not insured; naming various beneficiaries does not increase the amount of insurance.

But you can deposit more than $250,000 in a single bank and have it insured if you title the accounts properly. For example, a couple with two children could open two individual savings accounts, a joint account (which would be protected up to $500,000), a retirement account for each of them, plus a trust account for each child in the name of each parent (four accounts). Those nine accounts would then be insured by the FDIC for up to $2.5 million.

To check whether your money is fully insured, go to www.myfdicinsurance.gov and use the Electronic Deposit Insurance Estimator (EDIE), the FDIC's virtual tutor. Just enter your accounts and their balances and EDIE will do the calculation for you. Or call the FDIC's hotline at 877-275-3342 (Monday through Friday, 8 a.m. to 8 p.m. eastern time) and talk to a representative.

Reprinted with permission. All Contents ©2010 The Kiplinger Washington Editors. www.kiplinger.com.

Creative Cuisine
Stuffed Mushrooms

Need a great hors d'oeuvre for a holiday party? Here's a super easy recipe for stuffed mushrooms that also happens to be super good. Yields 20 – 24 hors d'oeuvres.

Ingredients:
- 20-24 fresh mushrooms, stems removed
and reserved for another use
- 1 8-oz. package of cream cheese, softened
- 3-4 strips of bacon, fried crisp and crumbled
- 1 green onion, sliced thin
- 1 garlic clove, crushed or minced very fine

Directions:
Preheat broiler to low. In a bowl, combine cream cheese, bacon, green onion and garlic and mix well. Spoon equal portions of the mixture into mushroom caps and set on an un-greased cookie sheet. Broil the mushrooms for 4 to 6 minutes or until the mushrooms are cooked through and the cream cheese is brown and bubbly. A quick hint…for a vegetarian version of this dish, simply leave out the bacon.

No stranger to professional kitchens, Kirk Leins currently devotes most of his time to cooking instruction, food writing, and producing television. You can visit Kirk's website at www.NoTimeToCook.com.

Street Smarts
Happy, Not Unhappy, Holidays

Holiday cheer can quickly turn in to holiday tears–not only for those who've waited until the last minute to beat the crowds, but for those who've been a victim of theft.

The hustle and bustle that surrounds the holidays often leave people feeling distracted, which unfortunately creates the perfect recipe for crime. Plain and simple, "Criminals often use the holidays to target victims." Here are some things for you to consider so that you can have a safe and happy holiday season...

Buddy up! Always take someone with you when shopping in the early morning hours and at night. If that is not an option for you, then at the very least, ask store or mall security to walk you to your car. And, always park in a well-lit area.

Leave your jewels at home. If you have expensive watches or jewelry, leave them at home. This is the time to protect your valuables, not display them.

Have your keys in hand. When heading out to the parking lot, always have your car keys in your hand. Don't spend time rummaging through your purse or combing your pockets, leaving you vulnerable to thieves.

Does your car have a big red bow on it? If shopping bags are stacked up inside your car, then you may as well wrap up your car with a big red bow and call it a "gift" because that is how thieves see it! Always store your shopping bags in the trunk or under seats where they are not visible.

Do you have a plan? If you plan on having your children tag along with you then you must have a "separation plan" in place in the event that your child gets lost or separated from you.

Most importantly, be aware of your surroundings at all times and then...have fun! The holidays come and go quickly so take time to smell the pine and enjoy the season with friends and loved ones.

Home News
Don't Throw Your Cash in the Trash When Temperatures Crash

If the chill in the air burns a hole in your wallet year after year then we've got good news for you–you CAN follow some easy steps to cut those winter energy bills once and for all. Here's how...

Purchase a Thermal Leak Detector. You could set yourself back nearly $400 by hiring someone to come and do a home energy audit OR hit the local home improvement store and purchase a Thermal leak detector. The average cost is about $50 and could save you over $200 in annual energy savings.

Embrace those bright sunshiny days! Even on those cold winter days, opening your blinds and curtains to let the natural sunshine in will warm up your home.

Stock up the holiday stockings–not your freezer. The winter holiday season makes for great entertaining and while you may be tempted to stock up on goodies for your freezer to feed a small army, consider this–overstocking a freezer will require more energy to be used.

Cracks, gaps and leaking oh my! Check for any gaps and cracks around pipes and vents, and seal them off with expanding foam that is designed for "home air-sealing" if they are greater than 1/4 inch.

Turn on your ceiling fan? By flipping the switch to reverse, you push warm air back down.

And last but not least, chill out a little! Turning the thermostat down a temperature or two lower could "cut your bill by about 2% per lower degree over an eight-hour period, according to EPA estimates."

Facts and Figures
End of the Year Travel is Taking Flight

Fasten your seat belts...holiday and year-end traveling is taking flight! According to AAA and IHS, Global Insight, "The year-end holiday period is the busiest of the five major U.S. holidays that include Memorial Day, July Fourth, Labor Day, Thanksgiving and Christmas/New Years Day." The reason for the heightened travel is not only due to most of the U.S.' schools, elementary through college, being closed for Winter Break–it's also the most popular time for employees to join in on the fun and spend some quality time at home with their families.

Here are some interesting statistics about projected year-end travel from December 23-January 3:

An estimated 87 million people are likely to travel this year
Travel by automobile is the most popular mode of transportation
A projected 4.2 million people will be flying the friendly skies this year, which is up just 1% from last year
Americans will travel an estimated 790 plus round-trip miles this holiday season
Travelers are projected to spend just over $1,000 per household this season, with more than a third of that budget going to transportation costs
More than 70% of people traveling during the holiday season will be spending their time visiting with family and friends

Table of Contents

· Mortgage News
· Finance News
· Creative Cuisine
· Street Smarts
· Home News
· Facts and Figures
· Five Quick Tips
· Did You Know?
· Quote of the Day
· Special Offer
· Trivia Challenge
· Book Review

Did You Know?

Did you know that it is considered proper etiquette to give a "Holiday Tip" to those that provide you with year-round service, such as a nanny, teacher, and housekeeper?

Five Fabulous Freebies – These days, many people are looking for new ways to cut costs and save money–especially with the impact of holiday spending on their budgets. Here are some great websites to help you take advantage of the freebies out there!

Tip 1: Need some new inspiration in the kitchen–or want to get your hands on some yummy holiday recipes? Check out www.allrecipes.com for over 40,000 free recipes.

Tip 2: The next time you need to call 411, dial 1-800-FREE-411 instead for free directory assistance for both residential and business listings.

Tip 3: If you're looking for a place to store online photo albums or share digital photos for free, then check out www.snapfish.com.

Tip 4: Need some new kickers but can only find them online? Shop www.zappos.com where shipping is always free!

Tip 5: Want to get the scoop on daily deals and discounts in your area? Subscribe to www.groupon.com and get free daily email alerts on the hottest bargains in your town. .

Quote of the Day

"You will get all you want in life if you help enough other people get what they want."

– Zig Ziglar

Special Offer

Trivia Challenge

Cold and flu season is in full swing. Where do you find the highest concentration of germs lurking?

toilet seat
dishcloths and sponges
ATM key pad
shopping carts
gas station pumps

For answer, scroll down to the bottom.

Book Review

Living Life as a Thank You: The Transformative Power of Daily Gratitude
by Nina Lesowitz and Mary Beth Sammons

Gratitude is often on our minds leading up to the Thanksgiving holiday, but the truth is that gratitude is an important principle to live by every day of the year. In their wonderful book, Living Life as a Thank You: The Transformative Power of Daily Gratitude, authors Nina Lesowitz and Mary Beth Sammons present an easy approach to implementing gratitude into our lives...and seeing the benefits that result!

Living Life as a Thank You has ten chapters, each of which contains inspirational quotes, real-life stories of people whose lives have changed due to the power of gratitude, and suggested practices. The Library Journal, in giving the book a starred (highly recommended) review called it "compelling" and said the book inspires "hope and motivation for good."

To learn more or order a copy, click here.

About the authors:
Nina Lesowitz is a leader in women's business in the San Francisco Bay Area and Mary Beth Sammons is an award-winning journalist and author whose work appears in Family Circle, the Chicago Tribune's lifestyle section, and on various health and wellness websites. Their newest book is called The Courage Companion: How to Live Life with True Power. For more information, visit www.vivaeditions.com.

Thank You

As always, we wish to thank our clients who have been kind enough to refer business to us. We appreciate the opportunity to provide excellent service to your family, friends, and co–workers.

Trivia Answer

B. discloths and sponges

Licensed Loan Officer - Licensed Real Estate Agent - This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

You received this email as a result of your ongoing business relationship with Edward F. W. Deanes. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials.

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Edward F. W. Deanes
Wells Fargo Home Mortgage
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Would you Recommend me?

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Hello,

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I would really appreciate it if you would take a second to visit my page and click the "Recommend" button. If you have time to write a full review of my services or post a comment to Facebook, that would be great too!

Thanks for your help!

The Deanes Group

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4456 Corporation Ln Suite 100
Virginia Beach, VA 23462
757.222.1400 Tel

http://www.DeanesGroup.com

For all loans in process please contact

Phillip Ferguson

Home Mortgage Associate

757.222.1366 Tel

757.582.5974 Cell

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Edward F W Deanes
Home Mortgage Consultant
Wells Fargo Home Mortgage
MAC M8614-011
4456 Corporation Ln Suite 100
Virginia Beach, VA 23462
757.222.1471 Tel
800.490.9317 Toll Free
757.418.2064 Cell
866.935.0661 Fax
edward.deanes@wellsfargo.com
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This is an unsecured email service which is not intended for sending confidential or sensitive information. Please do not include your social security number, account number, or any other personal or financial information in the content of the email. This may be a promotional email. To discontinue receiving promotional emails from Wells Fargo Bank N.A., including Wells Fargo Home Mortgage, click here NoEmailRequest@wellsfargo.com. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. All rights reserved. Equal Housing Lender. Wells Fargo Home Mortgage-2701 Wells Fargo Way-Minneapolis, MN 55467-8000

Military Appreciation Night at Hot tuna

noreply@blogger.com (Deanes Group) — Thu, 28 Oct 2010 17:00:00 +0000

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Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

MMG Weekly: Quantitative Easing Wants To Be Friends

noreply@blogger.com (Deanes Group) — Tue, 19 Oct 2010 17:57:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com<mailto:edward.deanes@wellsfargo.com>

www.deanesgroup.com

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In This Issue [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

Last Week in Review: Quantitative Easing is heading our way, but when, why, what will it mean? Many questions remain...

Forecast for the Week: What kind of outlook will the economic reports of the week create?

View: 5 Facebook posts that put you at risk! Do you know what they are?

Last Week in Review [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

"EVERYTHING?S COMING OUR WAY..." Those words from Carlos Santana?s song come to mind following last week?s release of the Fed?s September Meeting Minutes, as well as a speech from Fed Chairman Ben Bernanke. The message was pretty clear - another round of Quantitative Easing (QE2) is coming our way! Remember that QE is the concept of the Fed becoming a buyer of Treasuries and Bonds, in a bid to keep interest rates low and therefore stimulate the economy. And while all the talk had Bonds behaving in a volatile fashion - ultimately causing home loan rates to worsen for the week overall - what was said specifically... and what does it mean?

First, let?s take a look at a few notes from the Fed Meeting Minutes: "Although participants considered it unlikely that the economy would re-enter a recession, many expressed concern that output growth, and the associated progress in reducing the level of unemployment, could be slow for some time." Stating that "many" Fed members expressed concern likely means that more voting Fed members are onboard with the concept of more QE.

Then there was this comment, which didn?t require much reading between the lines: "Many participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate, or if inflation continued to come in below levels consistent with the FOMC's dual mandate, it would be appropriate to provide additional monetary policy accommodation." This is clearly telling the markets that the Fed will be stepping in with the money printing presses if the economy doesn't pick up. And with just a few weeks remaining before the next Fed Meeting, and recent economic reports being weak at best... rest assured, more QE is coming.

And this was underscored as Fed Chairman Ben Bernanke delivered a highly anticipated speech on Friday, also making a strong case in support of more Quantitative Easing. He stated "there would appear - all else being equal - to be a case for further action" and additionally, that the "FOMC is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation over time to levels consistent with our mandate."

OK - so it seems clear - more QE is coming. But is this a good thing?

In Bernanke?s comments on Friday, he noted that the Fed has much less experience in judging the economic effects of more QE versus their more traditional monetary policy actions - and said that this "makes it challenging to determine the appropriate quantity and pace of purchases and to communicate this policy response to the public." True - this amount of money-printing is unprecedented... and begs the question of if more QE really makes sense. The idea is to strengthen the economy by helping make interest rates lower... but the questions remain - will it work, and what consequences may result?

-----------------------

QE2 is Coming, But Questions of Its Effectiveness Still Remain
[http://www.mmgweekly.com/templates/mmgweekly/spe_chart/Top_Chart_10_18_10.jpg]

Interestingly enough - one result that is likely is that the US Dollar would weaken... and is already weakening following all the talk of QE. And remember, a weaker Dollar helps make our exports more attractive to foreign buyers, due to the weakened US currency making our products less expensive to purchase by foreigners. And while the government will never say it - as the US has been accusing China of very similar tactics - this Dollar devaluation may be exactly what the government has in mind.

Think about it... the "cover story" is all on how QE will help interest rates improve - but realistically, are slightly lower rates even what is truly needed to boost consumer demand and create jobs? Rates are pretty low as they stand right now...so why do more QE? Hmm... might just be to devalue the Dollar, and boost our economy through making our exports relatively cheaper for foreign buyers. And this is not a bad thing - but we have to be aware that while QE2 might provide an initial decline for interest rates - the devaluation of the Dollar will ultimately drive rates higher.

This story is far from over - so stay tuned as it continues to unfold in the coming weeks, I will be keeping you informed.

THE IMPACT OF QE2 ISN?T THE ONLY THING ON THE MINDS OF CONSUMERS THESE DAYS. A NUMBER OF PEOPLE ARE QUESTIONING THE RISKS OF SHARING INFORMATION ON SOCIAL NETWORKING SITES LIKE FACEBOOK ? AND FOR GOOD REASON. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW BELOW FOR INFORMATION ABOUT 5 POSTS THAT COULD PUT YOU AT RISK!

Forecast for the Week [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

This week?s economic calendar brings us new insight into the health of the manufacturing and housing sectors of the economy. We?ll start off with reports on Capacity Utilization and Industrial Production on Monday. The capacity utilization rate provides an estimate of how much factory capacity is in use. If the utilization rate climbs too high it can lead to inflationary bottlenecks in production. The Federal Reserve watches this report closely and decides how to set interest rates on the basis of whether production constraints are threatening to cause inflation.

Tuesday brings us more housing news with the latest reports on Housing Starts and Building Permits for September. That news will be followed by the release of the Fed?s Beige Book on Wednesday. The Beige Book - which is officially known as the Survey on Current Economic Conditions - contains anecdotal information on the current economic and business conditions.

Thursday we?ll see another round of Initial Jobless Claims. In last week?s report, Initial Jobless Claims rose to 462,000, which was above the 450,000 that was expected. That was a disappointment, as it seems that the economy is unable to string together a couple of solid weeks with Jobless Claims below 450,000. Finally, the week wraps up on Friday with the Philadelphia Fed Index, which is one of the most important regional manufacturing indices.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see from the chart below, Mortgage Bonds experienced volatility last week, due in large part to the ongoing comments about Quantitative Easing.

-----------------------

Chart: Fannie Mae 3.5% Mortgage Bond (Friday, October 15, 2010)
[http://members.platinumpromarketing.com/mmgw/charts/Weekly_Chart_10_18_10.jpg]

The Mortgage Market Guide View... [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

5 Facebook Posts That Put You at Risk

Be sure you're not sharing too much information with friends, family and others online.

By Cameron Huddleston, Kiplinger.com<http://www.kiplinger.com>

There was a big outcry recently when it was revealed that personal data of Facebook users had been posted to a database open to everyone. (See Congress to Crack Down on Facebook<http://www.kiplinger.com/businessresource/forecast/archive/congress-to-crack-down-on-facebook.html>.) Facebook users, naturally, were concerned about their privacy.

Yet, every day Facebook and other social network users publish personal information that could put them at risk without thinking twice. "An awful lot of people think when they get online and communicate with their friends that they are invincible," says Adam Levin, chairman of Identity Theft 911. A seemingly benign post or piece of information could make you a target of identity thieves and traditional crooks. To protect yourself, here are five things you should avoid posting online.

1. Date of birth. Almost 60% of social networkers post their date of birth, according to a survey by Identity Theft 911. After all, most of us like to be wished a happy birthday. But resist the urge to post your complete birth date -- including the year -- on your Facebook profile just to get a lot of messages on your big day. This is valuable information for identity thieves. I know you're thinking only your friends see what you post. But if someone does a search for your name, that person will see your birth date if it's listed in your profile.

2. Child's date of birth. When you post "Happy Birthday to my sweet Susie, who turns 5 today," you're giving identity thieves valuable information about your child. When it comes to your kids, resist the urge to post any information about them (see Protect Your Kids From ID Theft<http://www.kiplinger.com/columns/kiptips/archives/protect-your-kids-from-id-theft.html>).

3. Travel plans. Surely you've seen Facebook posts like this: "We're going to the beach next week. Can't wait." In fact, you may be guilty of it yourself -- 18% of social network users post travel times, according to the Identity Theft 911 survey. Guess what? You've just extended an invitation for people to burglarize your home. Three men in New Hampshire burglarized more than 18 homes by checking Facebook status updates to see when people wouldn't be home (see Burglars Said to Have Picked Houses Based on Facebook Updates<http://bits.blogs.nytimes.com/2010/09/12/burglars-picked-houses-based-on-facebook-updates/>).

4. Address. If your address is on your profile AND you let people know when you're going out of town, well, you know where I'm going with this. Nonetheless, 21% of social network users post their address, according to the Identity Theft 911 Survey.

5. Mother's maiden name. It may seem like common sense not to post your mother's maiden name on a social networking site, but about 11% of the people who responded to the Identity Theft 911 survey said they did. Identity thieves will hit the jackpot if you reveal this bit of information online.

Not only should you avoid posting any of this information, but also you should fix your Facebook settings<http://www.kiplinger.com/magazine/archives/how-to-fix-your-facebook-settings.html> to control who sees what on your page. Use different passwords for social media sites than you use for financial sites, such as your bank or credit card site. Be careful about clicking on links on Facebook or similar sites because they could contain viruses that will secretly track your passwords, account numbers and other things.

Reprinted with permission. All Contents ©2010 The Kiplinger Washington Editors. www.kiplinger.com<http://www.kiplinger.com>.

--------------------------

Economic Calendar for the Week of October 18-22, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of October 18 - October 22
Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Mon. October 18

09:15

Industrial Production

Sept

0.3%

0.2%

Moderate

Mon. October 18

09:15

Capacity Utilization

Sept

75.0

74.7

Moderate

Tue. October 19

08:30

Housing Starts

Sept

585K

598K

Moderate

Tue. October 19

08:30

Building Permits

Sept

565K

569K

Moderate

Wed. October 20

02:00

Beige Book

Oct

Moderate

Thu. October 21

08:30

Jobless Claims (Initial)

10/16

455K

462K

Moderate

Thu. October 21

10:00

Index of Leading Econ Ind (LEI)

Sept

0.3%

0.3%

Low

Thu. October 21

10:00

Philadelphia Fed Index

Oct

0.2

-0.7

HIGH

[mmgwDisclosure]

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

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MMG Weekly: To QE or not to QE, that is the question

noreply@blogger.com (Deanes Group) — Fri, 15 Oct 2010 15:36:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com<mailto:edward.deanes@wellsfargo.com>

www.deanesgroup.com

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In This Issue [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

Last Week in Review: The Fed faces a tough decision, but what could it mean for Bonds and home loan rates?

Forecast for the Week: This is a huge week, despite the limited number of reports due out... find out why.

View: Before you plan your next trip or a winter vacation, consider this surprising tip!

Last Week in Review [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

"I CAN NO LONGER STAND HERE WAITING FOR YOU TO DECIDE..." Those lyrics from the band Chicago's 1980's hit sum up the sentiments of many market analysts and traders after last week's back and forth statements from Fed officials about the possibility of another round of Quantitative Easing... otherwise known as "QE2".

As we stated last week, many analysts have been feeling that QE2 was very likely, if we continue to see weak economic reports. But comments made by a number of Fed officials throughout the week indicated that QE2 may still be up in the air. For example, Atlanta Federal Reserve President Dennis Lockhart stated, "there is growing sentiment that further accommodation through large asset purchases is coming... but at this point in time, it's not a foregone conclusion that we need to go there." Those comments were followed by other similar comments from other Fed officials, including Philadelphia Fed President Charles Plosser, who doesn't support any further Bond buying. Additionally, Boston Fed President Eric Rosengren said that monetary stimulus will depend on economic data, while Minnesota Fed President Narayana Kocherlakota says new asset buying would have a more muted impact than prior purchases. This would indicate that at least a few Fed members are hesitant about a big QE2 package.

On the flip side, however, New York Fed President William Dudley said on Friday that the Fed is almost certain to lend support through Quantitative Easing in order to ensure that a slowing economy does not fall further. He gave an example of how a $500 Billion purchase plan might impact interest rates, stating that it would have a similar impact to a Fed rate cut of .50 to .75%... and although this was just an example, the fact that he mentioned a specific number was not lost on Traders. Mr. Dudley went on to say that he feels a double dip recession is not an issue, but rather the focus is on how the economy can grow faster than its current pace.

Those comments are important because the markets figured that QE2 would be a lock, unless the Fed sees stronger-than-expected economic data before its November 3rd meeting... specifically, employment data. But last week the analysts and investors were faced with uncertainty around the issue and were left sifting through comments to try to predict what the Fed will do. And that uncertainty caused traders to shift money back out of Bonds at different times last week.

-----------------------

The Fed and Chairman Bernanke Face a Tough Decision with QE2
[http://www.mmgweekly.com/templates/mmgweekly/spe_chart/Top_Image_10_4_10.jpg]

But what would another round of Quantitative Easing mean to Bonds and home loan rates?

Let's break it down into four important aspects: (1) When would it happen? (2) How much money would it involve? (3) Why is this being contemplated? (4) And what does it mean to home loan rates?

First, as stated above, whether QE2 happens will be dependent upon the upcoming data releases. Many experts agree that if the Fed does make a move, it will most likely happen at the next Fed meeting, which is scheduled for November 3rd.

Second, the question of "how much" is still up in the air. As stated above, New York Fed President William Dudley gave an example of a $500 Billion purchase - but estimates are all over the board at this point, from $200 Billion to $2 Trillion. Yet the big question is whether QE2 will even do any good. Recently, former Fed Governor Larry Meyer felt that even $2 Trillion would hardly move the needle on GDP growth or reduce unemployment rates. In fact, he likens it to pushing on a string. Mr. Meyer's sentiments were also echoed last week by former Fed official Joe Gagnon, who estimated that the Fed is indeed likely to do at least $1 Trillion in additional QE, but that it would have little impact.

That brings us to the third question: Why even contemplate QE2? Think about this: a large round of QE2 would almost assuredly hurt the US Dollar. And by hurting the US Dollar, our exports become more affordable abroad, as well as making imports appear relatively more expensive. This helps large multi-national companies, which have a large influence on the economy, as well as the major Stock market indices. This could be the goal of the Fed. Ahh...but you can't outright say you are trying to weaken your currency. After all - haven't many members of Congress and the Administration been bashing China for currency manipulation? The US may be trying to do exactly what it has both denigrated and admonished other nations of doing.

In other words, even if QE2 didn't have a direct impact on the economy, the drop in currency value - which, if you've been paying attention to the Dollar-Euro relationship, has already been happening - would be very beneficial. But at what cost? While Stocks should benefit, Bonds may have a different reaction.

And that brings us to the heart of what you need to know: What would QE2 mean to Bonds and home loan rates?

If the Fed does go through with another round of Quantitative Easing, Bond prices should - initially - improve for two reasons. First, Bonds would likely improve due to the soft economic data causing QE2. Second, Bonds would improve simply because the announcement of QE2 would include large Bond purchases. The key word is "initially." That's because, even though Bonds would initially improve, the eventual softening of the Dollar, rising commodity prices, and rise in Stock prices could become a drag on Bonds, which would negatively impact home loan rates.

AS YOU CAN SEE FROM THIS DISCUSSION, THINGS AREN'T ALWAYS WHAT THEY SEEM. THE SAME IS TRUE FOR MANY FINANCIAL MATTERS. TAKE, FOR EXAMPLE, THE COST OF CHECKING YOUR LUGGAGE WHEN YOU FLY. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW BELOW FOR SOME SURPRISING INFORMATION ON HOW YOU CAN SEND YOUR LUGGAGE FOR LESS!

Forecast for the Week [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

This week's economic calendar may be light in terms of the number of reports, but don't let that fool you for one second. The reports that are due out may have a huge impact not only on the economy this week, but also on decisions that will shape the economy for months to come.

We'll start off with an update on the health of the housing industry, with the Pending Home Sales report on Monday morning. After that, things start to heat up with the ADP National Employment Index on Wednesday and Initial Jobless Claims on Thursday. But the big enchilada comes on Friday, when the all-important Jobs Report will be released. This report includes official labor statistics on non-farm payrolls and the unemployment rate, as well as average hourly earnings and changes in the average work week.

These reports on employment are always important, but they take on even more significance in the current climate. That's because the question of whether the Fed will move forward with another round of Quantitative Easing as we've been discussing, depends heavily on the employment data that is released before the Fed's upcoming meeting on November 3rd. And since the release of the November Jobs Report on October data is due out November 5th - two days after the Fed meeting - this coming Friday's report is the last chance for the Fed members to see the official labor statistics before they meet to discuss QE2 and other financial policies.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see from the chart below, Mortgage Bonds experienced some volatility throughout last week. Overall, Bonds and home loan rates ended the week worse than where they began, despite the volatility.

With home loan rates still at historically good levels, homebuyers - and homeowners looking to refinance - still have a tremendous opportunity. But it won't last forever... which means now is a good time to act.

-----------------------

Chart: Fannie Mae 3.5% Mortgage Bond (Friday, October 1, 2010)
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The Mortgage Market Guide View... [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

Save Money by Shipping Your Luggage

You may spend less by using a shipping company - rather than the airlines - to get your bags to your destination.

By Cameron Huddleston, Kiplinger.com<http://www.Kiplinger.com>

You may be able to save money by shipping your luggage rather than checking it in the next time you fly. The idea might sound absurd. But if you do the math - as Airfarewatchdog.com has done for you in this chart<http://www.airfarewatchdog.com/blog/4152043/shipping-vs-checking-which-would-you-rather-do/> - you'll see that it would cost you less in some cases to send your bags to your destination by FedEx, UPS or U.S. Postal Service ground shipping.

Passengers who have luggage that exceeds airlines' size and weight limits will score the biggest savings. They'll spend about $50 less by shipping one overweight suitcase than checking it in - and up to $200 by shipping two overweight bags.

Even if the cost is the same for shipping and checking bags, you get so much more from FedEx and UPS, says Airfarewatchdog.com founder George Hobica, who ships his luggage. They have better delivery records than the airlines, they provide tracking numbers so you can follow your shipment online and they let you insure items that the airlines don't, he says. Plus, you're more likely to get a refund from a shipping company than an airline if your luggage is damaged or lost.

Another benefit: You won't have to wait in long lines at the airport to check your bags. And if you have small children, you'll be a lot less stressed if you don't have to lug your kids and luggage from the parking lot to the terminal.

The key is to ship your luggage a few days BEFORE your flight so that it arrives at your destination when you do. If you're visiting a relative, the shipping logistics are easy. But if you're going to be staying in a hotel or condo, you should consider having the shipping company hold your items so you can pick them up. Otherwise, you might have to pay a fee to have the hotel or rental office hold your luggage until you arrive.

Reprinted with permission. All Contents c2010 The Kiplinger Washington Editors. www.kiplinger.com<http://www.Kiplinger.com>.

--------------------------

Economic Calendar for the Week of October 4-8, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of October 04 - October 08
Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Mon. October 04

10:00

Pending Home Sales

Aug

1.0%

5.2%

Moderate

Tue. October 05

08:15

ISM Services Index

Sept

51.8

51.5

Moderate

Wed. October 06

08:15

ADP National Employment Report

Sept

18K

-10K

HIGH

Thu. October 07

01:00

Jobless Claims (Initial)

10/02

455K

453K

Moderate

Fri. October 08

08:30

Non-farm Payrolls

Sept

0

-54K

HIGH

Fri. October 08

08:30

Unemployment Rate

Sept

9.7%

9.6%

HIGH

Fri. October 08

08:30

Hourly Earnings

Sept

0.1%

0.3%

HIGH

Fri. October 08

08:30

Average Work Week

Sept

34.2

34.2

HIGH

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

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YOU Magazine: Are you missing out on these budgeting tricks?

noreply@blogger.com (Deanes Group) — Tue, 12 Oct 2010 16:16:00 +0000

MMG Weekly: Bonds say to China...Yuan-na Piece of Me?

noreply@blogger.com (Deanes Group) — Thu, 23 Sep 2010 01:46:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com<mailto:edward.deanes@wellsfargo.com>

www.deanesgroup.com

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In This Issue [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

Last Week in Review: Bonds may sink or swim on the value of the Chinese Yuan. Here's why.

Forecast for the Week: Why are the markets watching the Autumnal Equinox?

View: How to handle fundraisers and donation requests as the new school year starts.

Last Week in Review [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

"NOT ONLY CAN WATER FLOAT A BOAT - IT CAN SINK IT ALSO." Wise words, but you don't need to know that Chinese proverb to know that a knife can cut both ways. The same is true with the strong ties between the Chinese and US economies. For example, news came out last week that Chinese factories stepped up production in August, which helped ease concerns of a double-dip recession in US and, as a result, helped move Stocks higher earlier in the week. But additional news regarding China is also impacting the Bond market - and could impact home loan rates in the future, depending on how the events unfold.

Here's what's happening. There have been numerous accusations that China has kept their currency artificially low, in an effort to fuel their exports. Some American businesses remark that this is an unfair competitive advantage, and call for tariffs to be levied against Chinese goods. It would appear that a stronger Chinese Yuan would help to resolve this problem... but remember there can be some nasty unintended consequences, due to the relationship between Chinese currency and our Bond prices. The way that the Chinese keep their currency weak against the Dollar is by buying massive amounts of our Bonds, including Mortgage Backed Securities. And their heavy buying has helped keep home loan rates low. So strengthening the Yuan would require fewer purchases of our Bonds and Mortgage Backed Securities - and that would be negative for home loan rates.

To paraphrase the Chinese proverb above, the value of the Chinese Yuan may help determine whether Bonds sink or swim in the near future. That makes this a complicated situation... but you can count on me to continue to monitor it closely.

-----------------------

The Chinese Yuan May Help Bonds Sink or Swim
[http://www.mmgweekly.com/templates/mmgweekly/spe_chart/Top_Chart_9_20_10.jpg]

Bonds saw a nice rally earlier last week, due to speculation about the Fed making additional purchases of Bonds in the future. Last week, Goldman Sachs said the Fed may announce another $1 Trillion asset purchase at the November meeting. And while this is just speculation, many Bond traders bid prices higher on the chatter. Adding fuel to this story was an article in the Wall Street Journal, suggesting the same thing. On the other side of the debate, however, is Richmond Fed President Jeffrey Lacker, who stated that the US is far from needing more Bond purchasing by the Fed.

In other economic news, the Labor Department reported the inflation measuring Consumer Price Index (CPI) for August at 0.3%. That reading was just slightly above the 0.2% that was expected, but it was still a relatively tame reading. When stripping out volatile food and fuel, Core CPI was flat at 0.0%. This rather benign read on inflation allowed traders to breathe a sigh of relief and push Bonds higher. Prior to receiving the news, many traders were worried the CPI reading would be higher than expected. That's because the Producer Price Index (PPI) was reported the day before and showed wholesale inflation rose by 0.4% in August. That was above the 0.3% expected and the biggest gain in 5 months! Remember, inflation is the archenemy of Bonds and home loan rates, so any indication that inflation is increasing could cause home loan rates to worsen.

IT'S THAT TIME OF YEAR AGAIN! THE START OF THE NEW SCHOOL YEAR MEANS THE BEGINNING OF SCHOOL FUNDRAISERS AND DONATION REQUESTS. ALTHOUGH THE INTENTIONS ARE GOOD, THEY CAN BE TOUGH ON YOUR BUDGET. FOR TIPS ON HOW TO HANDLE ALL THOSE REQUESTS, CHECK OUT THE MORTGAGE MARKET GUIDE VIEW BELOW.

Forecast for the Week [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

The seasons are changing... but watching the calendar can also help us prepare for changes in the market, especially with Stocks now nearing a very important trading date. September 22 - which is the day of the Autumnal Equinox - has often marked an apex and turning point lower for market prices and events. Keep this in mind as we approach this date this Wednesday, especially with Stocks trading near tough technical resistance. If this trend holds, Stocks may head lower and help Bonds and home loan rates improve. But since traders are aware of this potential problem period for Stocks, an avoidance of the trend would likely have Stocks? players move into the Stock market with more gusto towards the end of next week, prompting a Bond sell off.

The Fed will hold their Federal Open Market Committee (FOMC) meeting next Tuesday - and always, the markets will be listening closely when the Fed's Monetary Policy and Rate Decision are announced.

Also on tap for next week are new reports on the health of the housing industry, beginning with Housing Starts and Building Permits for August on Tuesday. We'll also see reports on Existing Home Sales on Thursday and New Home Sales on Friday.

Thursday brings another round of Initial Jobless Claims. Last week, the Labor Department reported Initial Jobless Claims fell to 450,000, below estimates of 460,000 and the lowest reading in two months. While 450,000 claims are still a pretty high number, it is improved from recent readings.

Finally, we'll get a look at manufacturing on Friday with a new report on Durable Goods Orders for August. Durable Goods Orders are considered a leading indicator of manufacturing activity, and the market often moves on this report despite the volatility and large revisions that make it a less than perfect indicator.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see from the chart below, Mortgage Bonds have started to step down after climbing to a record high at the end of August. Overall, Bonds and home loan rates ended the week worse than where they began.

The good news is home loan rates are still at historically great levels for homebuyers or homeowners looking to refinance... but that situation won't last forever.

-----------------------

Chart: Fannie Mae 3.5% Mortgage Bond (Friday, September 17, 2010)
[http://members.platinumpromarketing.com/mmgw/charts/Weekly_Chart_9_20_10.jpg]

The Mortgage Market Guide View... [http://www.mmgweekly.com/templates/images/weekly/sym_arrow.gif]

When Your Child's School Asks You to Give, Give, Give

Here's how to handle all those requests for classroom supplies, fundraiser contributions and more.

By Cameron Huddleston, Kiplinger.com<http://www.kiplinger.com>

Parents, I know you're feeling the pull on your purse strings from you children's schools. You're being asked to contribute supplies to your children's classrooms (not just pencils and paper, but even cleaning supplies). You're expected to donate money to help with the schools' fundraisers. You're getting notes from teachers each week about this field trip or that art project you have to pay for if your children want to participate.

I know because I'm a parent with one child in a public school and one child in a private preschool. As president of the parent committee at one of my children's schools and vice-president of the parent-teacher organization at the other, I also know how much the schools need financial support from parents. So how do you balance your desire to help with the reality of your own limited funds -- and avoid looking like a cheapskate if you can't open your wallet every time the school asks?

Even though this is your child and his school we're talking about, you have to approach this like you would any other financial situation. You have to...

Set a budget. If this is your child's first year in school, talk to his or teacher, parents with older children or members of the parent organization to get an idea of how much you'll be expected to spend on supplies, field trips, etc. or to contribute to fundraisers throughout the year. If your child is a returning student, you already have a pretty good idea. Once you have a dollar amount, it will be easier to figure out whether you can make room in your budget to help out your child's school. Our budget worksheet<http://www.kiplinger.com/tools/budget/> can help.

Prioritize. Of course the school, its parent committee and your child's teacher would love for you to donate every time they ask, but they also understand that not every parent can. So contribute only when it fits in your budget and when you feel like your contribution will have the most impact. That might mean skipping the chili-supper raffle in order to buy a coffee mug adorned with your child's art so his or her feelings don't get hurt.

Give your time. You might not be able to afford monetary contributions, but you can donate your time. Schools need volunteers to help in the classroom, cafeteria, you name it.

Reprinted with permission. All Contents c2010 The Kiplinger Washington Editors. www.kiplinger.com.<http://www.kiplinger.com>

--------------------------

Economic Calendar for the Week of September 20-24, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of September 20 - September 24
Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Tue. September 21

08:30

Housing Starts

Aug

550K

546K

Moderate

Tue. September 21

08:30

Building Permits

Aug

555K

559K

Moderate

Tue. September 21

02:15

FOMC Meeting

9/21

0.25%

0.25%

HIGH

Wed. September 22

10:30

Crude Inventories

9/18

NA

-2.49M

Moderate

Thu. September 23

08:30

Jobless Claims (Initial)

9/18

NA

450K

Moderate

Thu. September 23

10:00

Existing Home Sales

Aug

4.11M

3.83M

Moderate

Thu. September 23

10:00

Index of Leading Econ Ind (LEI)

Aug

0.1%

0.1%

Moderate

Fri. September 24

08:30

Durable Goods Orders

Aug

-2.2%

0.3%

Moderate

Fri. September 24

10:00

New Home Sales

Aug

298K

276K

Moderate

[mmgwDisclosure]

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

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Sept. 16, 2010 edition of Inside Mortgage Finance

noreply@blogger.com (Deanes Group) — Mon, 20 Sep 2010 15:33:00 +0000

According to the Sept. 16, 2010 edition of Inside Mortgage Finance, Wells Fargo was ranked as the top Purchase mortgage originator and the top Refinance Mortgage producer in the second quarter of 2010.

MMG Weekly: Special Holiday Article

noreply@blogger.com (Deanes Group) — Thu, 09 Sep 2010 01:29:00 +0000

Send to a Friend

Follow Me On:

Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com

www.deanesgroup.com

Labor Day Holiday

I hope you and your family enjoyed the Labor Day holiday. And, I sincerely hope you have been enjoying your complimentary subscription to the MORTGAGE MARKET GUIDE WEEKLY.

Due to the holiday weekend, the next full issue will arrive on Monday, September 13. In the meantime, check out the special article below from Kiplinger.com with great money management lessons for kids of all ages. This is a great article that can be shared with your family, friends, and associates as we celebrate this unique holiday, so please feel free to forward this email on to them.

I am pleased to provide this timely article to you as well as weekly insights into the mortgage and housing industries through the MORTGAGE MARKET GUIDE WEEKLY. If you feel that any of your clients, friends, family members, or associates would benefit from keeping up to date on market and economic trends in this easy-to-read format, please let me know, and I will be more than happy to add them free of charge.

Best wishes to you this holiday weekend. And remember, if you need any assistance at this time, just give me a call.

The Mortgage Market Guide View...

Advice for Parents as Their Kids Head Back to School

Now is a great time to teach your children lessons about managing money. Here's how.

By Janet Bodnar, Kiplinger.com

One positive outcome of the financial turmoil over the past couple of years is that parents and kids are talking more frequently about financial issues. In the T. Rowe Price Parents, Kids & Money survey released earlier this year, nearly half of the parents interviewed said they are having more conversations with their children about money and the basics of saving versus spending.

And, yes, Mom and Dad, your children are willing to listen. In fact, 65% of kids said they had approached their parents to talk about money issues.

Unfortunately, the lessons don't always stick. For instance, a majority of kids who get an allowance sometimes spend it all at once and many of them come back for more. As students head back to school, parents have a golden opportunity to take advantage of a prime teachable moment for kids of all ages.

Elementary and middle-school students: Start an allowance. When children enter first grade, they learn that four quarters equal ten dimes equal one dollar, and they have a more sophisticated understanding of just how far money will go and how to parcel it out.

Start with a basic weekly allowance equal to half a child's age. You can adjust that up or down, depending on how much you expect your kids to pay for.

Unless you're very well organized, I don't recommend that you tie the basic allowance to household chores. It's tough to keep track of what the kids have done (or not done). And they should be doing some tasks without pay to lend a helping hand.

Instead, give the kids financial "chores," such as paying for their own collectibles or refreshments at the movies. Giving youngsters a fixed amount of money - and certain responsibilities to go along with it - teaches them how to make choices, and makes it less likely that they'll spend it all at once and come back for more.

To teach kids the value of being paid for their labors, you can pay for extra household tasks on a job-by-job basis. That also makes it easier for you and the kids to keep tabs on what they've done.

As children enter middle school, you can expand their allowance - and their responsibilities - to include other expenses, such as mall excursions, after-school snacks with friends and movie tickets.

High school students: The average American family will spend more than $600 on clothes, shoes, school supplies and electronics, reports the National Retail Federation, so the back-to-school shopping season is a great time to introduce a clothing allowance. Nothing will focus your teen's attention on wants versus needs more than having to fill out her wardrobe on a fixed income.

Mining her closet for things that are still wearable is a good first step. Then she can decide whether she really wants to splurge on a single pair of Juicy Couture denim leggings for $128 or get a couple of pairs from Old Navy for $34.50 each - and still have money for new tops.

This is also a good time to help your kids set up a checking account, especially if they have earnings from a summer job. Community banks and credit unions may be more customer-friendly to teens than big banks. If your bank balks, you can always cosign for the account.

Another alternative is to give kids access to their savings account with an ATM card so that they can make deposits and withdrawals. The point is to give them more freedom (and responsibility) to manage their account, and avoid overdrafts, before they head off to college.

College students: It often comes as a surprise to parents and kids that they don't agree on who's going to pay for which expenses. And it's an even bigger shock when the bills start rolling in a month or two into the semester. So cover all the bases before you drop your kids at the dorm.

Let your kids know, for example, that you'll pay for textbooks, but to lower the cost they should look into campus book exchanges, discount Web sites, book rentals and digital books (see How to Cut Textbook Costs in Half - or More).

You'll pay for the school meal plan, but beer and pizza on Saturday nights are on their tab. And tell your kids that they'll have to share discretionary expenses, such as Greek fees, so they should think twice before pledging.

New laws covering bank overdraft fees and credit cards for young adults hit college students squarely in the wallet. For advice on how to handle those situations, see 5 Financial Lessons for College Students.

Reprinted with permission. All Contents c2010 The Kiplinger Washington Editors. www.kiplinger.com.

--------------------------

Economic Calendar for the Week of September 6-10, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of September 06 - September 10

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Wed. September 08	10:30	Crude Inventories	9/04	NA		3.42M	Moderate
Wed. September 08	02:00	Beige Book	Sept				Moderate
Thu. September 09	08:30	Jobless Claims (Initial)	9/04	NA		472K	Moderate
Thu. September 09	08:30	Balance of Trade	Jul	-$48.3B		-$49.9B	Moderate

[mmgwDisclosure]

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Another Business Booster from Edward F. W. Deanes - Meetings that Pack a Punch

noreply@blogger.com (Deanes Group) — Thu, 09 Sep 2010 01:18:00 +0000

Follow Me On:

Edward F. W. Deanes
Home Mortgage Consultant
Wells Fargo Home Mortgage
Phone: (757) 418-2064
Fax: (866) 935-0661
edward.deanes@wellsfargo.com
www.deanesgroup.com

Meetings that Pack a Punch
Turn Prospects into Clients with an Effective Presentation!

Dynamic business meetings, those that accomplish a set goal, rely on mutual respect. Yes, it sounds cliché, but respect really is a "two-way street." In order to obtain that respect from clients or potential clients, it's crucial to understand the dynamics of business relationships. Everyone wants to feel important, that his or her time is valuable, and the person who set up the meeting has taken this into consideration.

For that reason, punctuality matters. Never keep a prospect waiting. And brevity also counts. Move your presentation from point to point in a clear and concise manner, but without appearing rushed. Don't elaborate or belabor a point unless asked for further explanation. And never make your prospects yawn!

Kim T. Gordon, president of the National Marketing Federation, Inc. and a noted speaker, elaborated on business meeting etiquette in an article on Entrepreneur.com entitled, "10 Steps for Successful Sales Meetings".

"Many entrepreneurs face a common challenge as they launch and grow their companies - their first meetings with prospects." Here are some of Gordon's recommendations:

Gather background information. A pre-qualifying telephone call helps determine prospects' needs.

Set a realistic goal. Your ultimate goal is to turn the prospect into a client. At the very least, set up the next meeting date, and establish the interim objectives.

Prepare quality materials. Make sure your print collateral has eye appeal and holds interest.

Rehearse your presentation. Nothing looks more unprofessional than a sales presentation where the speaker fumbles and is all-thumbs with charts or graphs.

Observe your prospects carefully. Take clues from body language. Are your prospects sitting forward in their chairs, hanging on your every word and nodding with interest? Or, are they sitting back, nearly reclining, with arms crossed and a look of boredom and disbelief? In the latter case, switch gears before you lose them.

As you uncover the needs of the prospect, be ready to provide viable solutions and present case history examples to support your statements. Above all, remember that prospects are people. Be professional, but also be people friendly, and turn each prospect meeting into a home run.

Call me to discuss the presentations and seminars I can provide!

FHA changes you need to know about!

noreply@blogger.com (Deanes Group) — Thu, 09 Sep 2010 01:14:00 +0000

FHA Implements Minimum Credit Scores

On September 3, 2010 Mortgagee Letter 10-29 was released. This mortgagee letter establishes minimum credit scoring requirements for all standard FHA programs* and is effective for case numbers assigned on or after October 4th, 2010.

Here are the 4 things you need to know about these changes:

1. Borrowers with a minimum credit score at or above 580 ARE eligible for maximum financing.

2. Borrowers with a minimum credit score between 500 and 579 ARE limited to a 90% LTV.

3. Borrowers with a minimum credit score of less than 500 are NOT eligible for FHA-insured mortgage financing.

4. Borrowers with a non-traditional credit history or insufficient credit are eligible for maximum financing BUT must meet the underwriting guidance in HUD 4155.1 4.C.3.

*Please note that these new requirements DO NOT apply to:Title I, Home Equity Conversion Mortgages; HOPE for Homeowners; Section 247; Section 248; Section 223(e), Section 238.

FHA MIP Changes Now Official

With the passing of H.R. 5981 and the resulting Public Law 111-229, FHA was given authority to change the amount charged to borrowers for both the Up Front and the Annual premiums. These changes as outlined in Mortgagee Letter 2010-28, are effective for all case numbers assigned on or after October 4th, 2010.

Here are the 6 things you need to know about these changes:

1. The Up Front premium is now 1.0 % for all standard FHA programs (purchase money mortgages, full credit-qualifying refinances, streamline refinances)
|

2. The Annual premium is now .90% for LTVs GREATER than 95% on 30 year loans

3. The Annual premium is now .85% for LTVs EQUAL to or LESS than 95% on 30 year loans

4. The Annual premium is now .25% for LTVs GREATER than 90% on 15 year loans

5. The Annual premium is now .00% for LTVs EQUAL to or LESS than 90% on 15 year loans

6. These premiums apply to purchases, regular refinances and streamlines

Please note that this new law also gives FHA the authority to raise the Annual premium at will up to 1.5% for LTVs at or below 95% and 1.55% for LTVs more than 95%.

Click here to read Mortgagee Letter 2010-28 in its entirety.

FHA Eliminates Unlimited CLTVs for Refinance Transactions

This update from Mortgagee Letter 2010-24 contains changes to the new maximum CLTV limits for refinance transactions, which will be effective for case numbers assigned on or after September 7, 2010.

The combined amount of the FHA-insured first mortgage and any subordinate lien may not exceed the applicable FHA LTV AND the geographical maximum mortgage amount (does not apply to streamline refinance transactions).

Here are the 4 Maximum CLTVs for Refinance Transactions that you need to know about:

1. Rate and Term (or No Cash Out) Refinances = 97.75%

2. Refinances for Borrowers in Negative Equity Positions* = 115%

3. FHA-to-FHA Streamline Refinances With or Without Appraisals = 125%

4. Cash-out Refinances = 85%

* This refinance option is only available through December 31, 2012. Read Mortgagee Letter 2010-23 for more information.

For more information, read Mortgagee Letter 2010-24 in its entirety.

Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

Homes & Money Newsletter - 3rd Quarter 2010

noreply@blogger.com (Deanes Group) — Fri, 20 Aug 2010 21:15:00 +0000

Edward F. W. Deanes
Home Mortgage Consultant
Wells Fargo Home Mortgage
Phone: (757) 418-2064
Fax: (866) 935-0661
edward.deanes@wellsfargo.com
www.deanesgroup.com

Mortgage News
What is the Velocity of Money and How Does it Impact Home Loan Rates?

According to the most recent Commerce Department report, Personal Spending and Personal Incomes were unimproved from the previous month, and the Savings Rate increased as consumers cut back on spending. While that data sheds light on the slow economic recovery, it also has implications on home loan rates.

Here's why. It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent, and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money.

With the job market still very sluggish, consumers aren't spending much money these days...and businesses are still reluctant to spend moneymaking investments in their business. With the present velocity at low levels, inflation remains subdued and that's good for home loan rates. That's because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will cause inflation – which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen.

While we certainly want to see better economic recovery news in the near future, we have to remember that there's an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result. Currently, home loan rates are at a historically low level, which makes now an ideal time to purchase a home or refinance before the velocity of money – and rates – change.

If you or anyone you know would like to learn more about the current economic situation and how to take advantage of historically low home loan rates, please don't hesitate to call or email right away.

Finance News
Protect Your Kids From ID Theft
Follow these tips to guard your child's personal information, and watch out for these signs that his or her identity has been stolen.

by Cameron Huddleston, Kiplinger.com

When was the last time you checked your child's credit report? Never, right? Not much reason to check a credit report for someone who doesn't have credit.

But that's exactly the reason kids are such easy targets for identity thieves, says Adam Levin, founder of Identity Theft 911, which provides identity theft remediation services to businesses and consumers. ID thieves know children are an easy target because they likely won't check their credit reports until they're adults and need to apply for credit. So they can run up debt for years without being detected.

About 400,000 children a year are victims of identity theft, Levin says. They become victims when criminals get their Social Security numbers from medical records, mail tampering, computer searches or a stolen wallet with the child's card in it.

How to protect your child's ID

Guard his or her Social Security number. Don't carry your child's Social Security card in your wallet. Don't give out your child's number on the phone unless you trust the recipient and never send the number in an e-mail. And don't give your kid his or her number until he or she is old enough to understand what it is.

Be careful about posting information about your child. If you want to let your Facebook friends or Twitter followers know that it's your child's birthday, don't tell them the child's age. ID thieves can use that information to figure out what year the child was born, in addition to the info you already provided about the day and month. (For that matter, don't ever post your complete birth date on a social networking site, either.) Talk to your children about the importance of protecting their personal information online.

Be careful with the birth certificate. More and more sports teams are asking parents to present a birth certificate for proof of a child's age. Don't hand over an original. If the team needs your child's birth certificate on file, make a copy of it and show it to the coach. Then put it in a sealed envelope and write your name across the flap so it will be broken if the envelope is opened. Let the coach know that you expect to get the envelope back unopened at the end of the season.

Check your child's credit report. Go to annualcreditreport.com, which lets you get a free report from each of the three credit bureaus once a year. If you enter your child's information and no report comes back, you'll know that no credit has been taken out in your child's name.

Signs that your child's ID has been stolen
– Your child receives unsolicited credit offers.
– Your child receives letters from debt collectors.
– The IRS send you a letter stating that the Social Security number listed for your child on your tax return (or the child's) is a duplicate number.
– The bank tells you, when you go in for the first time to open an account for your child, that an account with your child's Social Security number already has been opened.
– Your health insurer says it won't cover a procedure for your child because it covered that procedure before (even though your child never had that procedure).

Reprinted with permission. All Contents ©2010 The Kiplinger Washington Editors. www.kiplinger.com.

Creative Cuisine
Summertime Guacamole

Ingredients:
- 2-3 medium to large-sized avocados,
  halved and seeded
- 3 tbsp freshly squeezed lime juice
- 1 clove garlic, finely chopped
- 1/3 C red onion, finely chopped
- 1 jalapeño chili, seeded
   and finely chopped
- 1 small tomato, seeded
   and chopped small
- 1/3 C cilantro, finely chopped
- Kosher salt and freshly ground black pepper
- Extra virgin olive oil

Directions:
Brush the cut side of each avocado with olive oil and grill (cut side down) over a medium flame for 1 to 2 minutes, or until grill marks are achieved. Allow the avocado to cool. Remove the skin and cut into 1/2-inch cubes.

Place all of the ingredients into a mixing bowl, season liberally with salt and pepper and toss until all the ingredients are incorporated and the avocado is lightly mashed. This guacamole is best when served on the chunky side.

No stranger to professional kitchens, Kirk Leins currently devotes most of his time to cooking instruction, food writing, and producing television. Sign up for Kirk's free newsletter and cooking blog at www.NoTimeToCook.com.

Street Smarts
Stop Wasting Money

The start of the school year is the perfect time to take a look at your spending habits and avoid wasting money where you don't have to. Here are some ideas to help you save money.

Meals at the Workplace - Working Americans spend an average of $6 when they buy their lunch at work. The average cost drops to $2 when we bring our lunch from home. That's a difference of $4 a day, or $20 a week, or over $1,000 a year. Consider adding this savings to your savings account and after just a few months you'll really see the difference add up.

Utilize the Public Library - By obtaining a library card, you can save on books, magazines, and especially DVD rentals. If you average 3 DVD rentals a month, you're spending approximately $144 a year. That's $144 that could be deposited into your bank account. For every book you check out, find out what it would have cost if you'd bought it. Deposit that amount into your account, too.

Do Away with Disposables - From razors and batteries to paper towels and plastic bags, your home is filled with products that are meant to be thrown away. Most of these disposable items have either a permanent or semi-disposable counterpart. Switching over to these more durable items can yield a savings of $4 a week or $200 a year.

Get the Most Out of Your Utilities - Many of us are overspending on our utility bills for no other reason than our own apathy. If you haven't already switched over to low-flow showerheads and toilets it's probably time to do so. Also, get into the habit of turning off lights when not in use. Did you know that most utility companies offer a free online energy audit? This way you can see exactly where you're wasting money.

Home News
Remodeling Your Bathroom: A Project Worth Investing In

If you've been thinking about spending some money on a project around the house but aren't sure you can justify spending the money, we've got two words for you - bathroom remodel.

The Beauty of a Bathroom - You can live without a theater room or a home office, but any house worth buying must have at least one bathroom. This may seem obvious, but take a minute to think about it. Aside from the kitchen, there is no other room that's more utilitarian. The bathroom actually has multiple uses, possibly making it the most necessary room in the house.

Return on Investment - In terms of remodeling a home's bathroom, the returns can be staggering. While many home remodeling projects return only pennies on the dollar in terms of adding value to the home, some studies indicate a national average return of 90% or even more for mid-range bathroom remodels. While the amount of your return will certainly depend on many variables - it is one of the most desirable upgrades in a home, and brings amongst the highest returns.

Build for Two - One of the major issues for homeowners with only one bathroom, or couples sharing a master bath, is the inability for two people to use one bathroom simultaneously. If size permits, this problem can be alleviated with upgrades, like a double sink, a separate shower and tub, and a short wall to enclose the toilet area.

Add a Designer Touch - From tubs and toilets to fixtures and flooring, there is literally no end to the combinations of great looks. These types of improvements are relatively inexpensive in comparison to the dramatic upgrade they give to the look and feel of your bathroom. Walls can be repainted. Old counter tops can be replaced with granite or marble, and vinyl flooring can be upgraded to tile.

When it comes to updating the look and functionality of your bathroom, the sky is the limit. You could invest very little time and money by merely repainting the walls, changing out your fixtures, and doing a little decorating. You could also pull out all the stops and completely remodel an existing bathroom or even add one on.

Facts and Figures
Interesting Statistics on Education in America

Summer vacation is winding down for teachers and students across the country, and a new school year is just around the corner – and in some places has already begun! As we head into the new 2010-2011 school year, here are some interesting facts about education in America:

56 million students are expected to enroll in kindergarten through high school this year.
3.3 million students are expected to receive high school diplomas this year.
Roughly 11% of students (elementary through high school) will be enrolled in private schools this year.
More than 19 million students are enrolled in colleges and universities this year, which is up from 13 million students 20 years ago.
The average cost of in-state tuition, room, and board at a public college or university is $14,915 per year.
An estimated 56 million students in America are expected to be enrolled in elementary through high school.
More than 3 million students are expected to earn their college degrees this year.

Table of Contents

Did You Know?

The wedding phrase "Something old, something new, something borrowed, something blue, and a silver sixpence in her shoe" symbolizes continuity, optimism for the future, borrowed happiness, fidelity, and wealth or good luck, respectively.

Fall is just around the corner and so is the school year! Back to school expenses can add up quickly. And if you have more than one child, budgeting for these necessary items can be tough. Here are a few tips to help your dollar go farther:

Tip 1: Keep your eye out for coupons, flyers, discounts and back to school sales, several weeks before school is scheduled to start.

Tip 2: Buy just a few basic wardrobe staples and then wait until the holidays to stock up and take advantage of holiday super sales.

Tip 3: There is a difference between "want" and "need." Have your child pay for their "wants" with their own money.

Tip 4: Consider purchasing school supplies in bulk, and going in on them with another parent. This allows you to take advantage of large volume discounts and sales.

Tip 5: Cash in on last year's wardrobe by taking old clothes to the consignment shop in exchange for cash.

Quote of the Day

"The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather in a lack of will."

– Vince Lombardi

Special Offer

Trivia Challenge

What is not one of the Seven Wonders of the Modern World recognized by the American Society of Civil Engineers?

Panama Canal
Golden Gate Bridge
Taj Mahal
Empire State Building

For answer, scroll down to the bottom.

Book Review

What Would You Do If YOU Ran the World?
by Shelly Rachanow

What would you do if you ran the world? That's a question author Shelly Rachanow thought a lot about ever since she posed it in her first book and heard amazing answers from so many people. Her latest book is the culmination of these brave, beautiful, brilliant, creative, and totally doable ideas.

Rachanow's warm and encouraging voice motivates readers to join other amazing people who are kicking serious butt for the good of all, like a teenage girl and CNN hero, kids in Zimbabwe saving their part of the planet, and a busy mom who is not too busy to work every day to help impoverished families live better lives. With reviews from the Sierra Club, Library Journal (starred Review), Body+Soul Magazine and more, the book inspires readers to realize, as Anne Frank once said, "How wonderful it is that nobody need wait a single moment before starting to improve the world."

The book is available at www.WhatWouldYouDo
IfYouRanTheWorld.com.

About the author:
Shelly Rachanow comes from a long line of butt-kicking women. She is a graduate of The George Washington University and Emory University School of Law and is the author of two books that celebrate the wonderful things women do. Read Shelly's interviews with amazing woman who are making our world a better place at www.ifwomenrantheworld.
blogspot.com.

Learn more about Shelly Rachanow at www.ifwomenrantheworld.com and www.WhatWouldYouDo
IfYouRanTheWorld.com.

Thank You

As always, we wish to thank our clients who have been kind enough to refer business to us. We appreciate the opportunity to provide excellent service to your family, friends, and co–workers.

Trivia Answer

C. Taj Mahal

MMG Weekly:Markets Move After Fed Meeting, But Why?

noreply@blogger.com (Deanes Group) — Mon, 16 Aug 2010 14:47:00 +0000

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Follow Me On:

Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com

www.deanesgroup.com

In This Issue

Last Week in Review: Fed maintains status quo while markets look for more direction.

Forecast for the Week: Economic reports to watch, plus the future of housing finance.

View: 5 financial lessons every college student should learn before heading to school.

Last Week in Review

"The great thing in the world is not so much where we stand as in what direction we are moving." Last week, the financial markets appeared to agree with Oliver Wendell Holmes' words by looking for some more direction from the Fed after its FOMC Meeting.

While the Fed didn't say much, they did state that Mortgage Bond holding income and proceeds would be reinvested into Treasuries. This helps the Treasury continue to pump out debt at low rates. But this relationship is a concern to the Stock market, as there is no doubt that this will lead to further problems down the road. In addition to "kicking the can," the Fed did not provide a game plan on how it could handle deflation, a Japanese type economy, or longer-term inflation. This uncertainty is something that the Stock market hates. As a result, investors pushed Stock prices significantly lower in early trading Thursday - and the cash sale proceeds from Stocks found their way into Bonds.

-----------------------

Markets Wanted More Direction from the Fed

In other news last week, the Labor Department reported that preliminary Productivity for the 2nd Quarter came in at -0.9%, which was below the 0.1% rise expected...and quite a bit lower from the 3.9% reading for the 1st Quarter. The decline in Productivity was actually the first negative reading since the 4th quarter of 2008. The slowdown in productivity is interesting, as higher productivity does many things. It keeps operating costs lower, lessens the need for hiring, and works to keep prices down. So this unexpectedly weak number, should it become a trend, may work to ease some of the deflation fears and, ironically, could help the labor markets.

Speaking of labor, last week?s Initial Jobless Claims report showed 484,000 people signing up for first-time unemployment benefits. That number was worse than expectations of 465,000 and the highest reading since February's 498,000. No matter how you slice it, this is a horrible number... and it highlights that the most important element of any real-life economic recovery is still struggling.

According to the report, Continuing Jobless Claims did fall, but that number can be deceiving since the decrease has nothing to do with an improvement in the labor market. In actuality, the decrease in Continuing Claims, which lasts for the first 26 weeks of unemployment, is due to the benefit expiring - and those individuals rolling into the Emergency Unemployment Compensation benefit category. And in that category, due to the recently passed unemployment benefits extension, those collecting Emergency Unemployment Compensation, spiked a whopping, almost incomprehensible, staggering, shocking, (fill in your own favorite descriptor here) 1.2 Million from the prior week to 4.5 Million... and yet the majority of the media overlooked the real facts or were unwilling to report them.

FUTURE EMPLOYMENT MAY BE ON THE MINDS OF TODAY?S COLLEGE STUDENTS, BUT THE MORE IMMEDIATE CONCERN SHOULD BE ON HOW TO BEST MANAGE THE FINANCIAL TESTS THEY?LL FACE WHEN THEY?RE ON THEIR OWN. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW BELOW FOR 5 FINANCIAL LESSONS EVERY COLLEGE STUDENT SHOULD LEARN BEFORE HEADING TO SCHOOL.

Forecast for the Week

This week, we?ll see a number of reports that have the potential to move the markets. We?ll start off with a dose of manufacturing news right away Monday morning with the Empire State Index, which looks at New York State?s manufacturing sector, including how busy it is and where things are headed. On Thursday, we?ll also see the Philadelphia Fed Index, which is one of the most important regional manufacturing indices. These two reports will provide an early look at the manufacturing sector for the month of August.

Things kick into full swing on Tuesday with a number of important reports, including the Producer Price Index (PPI), which measures inflation at the wholesale level. Remember, inflation is the archenemy of Bonds and home loan rates, so it will be important to see what this report reveals. The PPI report comes just after the Consumer Price Index was released last week showing the highest headline reading in a year, so the markets will definitely be paying attention to this report. We?ll also see reports on Industrial Production and on Capacity Utilization, which is considered a telling inflation indicator.

Tuesday also brings another dose of news on the health of the housing industry with reports on the number of Housing Starts and Building Permits in July. Housing Starts for June came in below expectations and at the lowest level in 8 months. And even though Building Permits showed an uptick, it was primarily in the multi-family area rather than in the more important and widely watched single-family area, which showed the lowest permits since April 2009. I?ll be watching to see if those numbers improve for July.

Finally, the week of reports caps off on Thursday with the weekly Initial Jobless Claims report. As discussed above, last week?s report was disappointing to say the least.

In addition to those reports, the Treasury Department and White House will be hosting a "Conference on the Future of Housing Finance" next Tuesday where the future of Fannie Mae and Freddie Mac will be discussed. You may recall a couple weeks ago, rumors were swirling of a major bailout to help millions of homeowners who are upside down on their mortgages - and some pointed to this conference as the venue to release such a big announcement. So I?ll be keeping a close eye on this conference and how it impacts homeowners.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see from the chart below, Mortgage Bonds have continued to climb a staircase higher. Overall, Bonds and home loan rates ended last week where they began - which is at historically good levels.

If you or someone you know has been thinking about purchasing or refinancing a home, now is an ideal time. Even if you?re not sure what you want to do, a brief conversation can provide you with the information you need to make an informed decision.

-----------------------

Chart: Fannie Mae 4.0% Mortgage Bond (Friday, August 13, 2010)

The Mortgage Market Guide View...

5 Financial Lessons for College Students:

Follow These Tips So Your Kids will Score Well When it Comes to Managing Money While Away at School.

By Janet Bodnar, Kiplinger.com

Forget tuition. Once that bill is taken care of, the biggest financial challenge you face when sending kids off to college is making sure they don?t overdraw their checking account or run up a credit-card bill they can?t pay off. Here?s how to help boost their financial GPA (and save big bucks on fees).

Open a low-cost checking account in your child?s college town, especially if his current bank doesn?t have branches there. Pay close attention to the bank pitches you?ve been getting in the mail so that you can spot the best combination of low balance requirements and low (or no) fees. With a host of new regulations squeezing bank revenues, totally free checking will be harder to come by and may come with strings attached, such as a minimum number of required debit-card transactions. For help in searching for an account, go to www.checkingfinder.com. Extra credit: Choose a bank with a network of ATMs that?s convenient to your child?s dorm or favorite hangouts. College kids are notorious for running up ATM fees by going to the closest machine, even if it?s not in their bank?s network.

Set up an overdraft strategy. Students are also prime candidates for racking up charges by overdrawing their accounts with small purchases at the drugstore or coffee shop. As a result, they?re particularly affected by new rules that prohibit banks from automatically enrolling customers in pricey overdraft-protection programs. Now you have to actively select such a program or choose a less-expensive option, such as linking your child?s checking account to a savings account - or letting him suffer the embarrassment of having his purchase declined (see Closing the Door on Overdrafts). Extra credit: Have your child sign up to get balance alerts via e-mail or text when his balance is low.

Downplay credit cards. New rules require that young people under 21 have a co-signer when they apply for a credit card. Don?t be too quick to sign, or even to make your child an authorized user on your card (see Debit vs. Credit Cards for Kids). Your student should first be responsible enough to manage a checking account. If he doesn?t overdraw his account, he may be mature enough to handle a credit card. But don?t rush it. Extra credit: Regardless of whether your child uses a debit or credit card, he shouldn?t get in the habit of picking up the check for group pizza or beer and expecting to collect from everyone else. That?s another big money pit for college students; even with the best of intentions, their buddies will never pay up.

Guard personal information. This is the Facebook generation, who will tell the world "everything but their underwear size," as a friend of mine puts it. Better they should reveal the size of their skivvies than disclose their PIN or credit-card number, even to a friend (see How to Fix Your Facebook Settings). Extra credit: Remind your kids that when they?re shopping online, they should look for secure transaction symbols, such as a lock in the lower right corner of the browser window and a Web address that begins with "https." See 5 Tips for Safe Online Shopping for more advice.

Keep track of expenses at least for the first semester. Student services should be able to estimate how much the average student will shell out for entertainment, travel, food outside the dorm and other miscellaneous expenses. But your kid may not be average. He can monitor his own transactions via online banking. PNC offers a Virtual Wallet budgeting site for students (www.pnc.com). Or you can just buy your kid some bright green Post-its on which to jot down what he spends. Even if he doesn?t tally them, they provide a visual cue that his spending is mounting up. Extra credit: Before your child leaves home, make it clear which expenses you?ll cover and which are his responsibility. Hint: He gets to pay $300 for a football season ticket.

Reprinted with permission. All Contents c 2010 The Kiplinger Washington Editors. www.kiplinger.com

--------------------------

Economic Calendar for the Week of August 16-20, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of August 16 - August 20

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Mon. August 16	08:30	Empire State Index	Aug	7.5		5.08	Moderate
Tue. August 17	08:30	Housing Starts	Jul	555K		549K	Moderate
Tue. August 17	08:30	Building Permits	Jul	573K		586K	Moderate
Tue. August 17	08:30	Producer Price Index (PPI)	Jul	0.2%		-0.5%	Moderate
Tue. August 17	08:30	Core Producer Price Index (PPI)	Jul	0.1%		0.1%	Moderate
Tue. August 17	09:15	Capacity Utilization	Jul	74.5%		74.1%	Moderate
Tue. August 17	09:15	Industrial Production	Jul	0.6%		0.1%	Moderate
Wed. August 18	10:30	Crude Inventories	8/14	NA		-2.99M	Moderate
Thu. August 19	08:30	Jobless Claims (Initial)	8/14	475K		484K	Moderate
Thu. August 19	10:00	Index of Leading Econ Ind (LEI)	Jul	0.2%		-0.2%	Low
Thu. August 19	10:00	Philadelphia Fed Index	Aug	7.5		5.10	HIGH

Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

MMG Weekly: Economy \'Laboring\' Towards Recovery

noreply@blogger.com (Deanes Group) — Mon, 09 Aug 2010 13:31:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com

www.deanesgroup.com

In This Issue

Last Week in Review: The important Jobs Report numbers are in... survey says? Get all the details below.

Forecast for the Week: More inflation news is ahead, plus the Fed is meeting. Will they shake up the markets?

View: Web cam interviews are growing in popularity these days. Learn tips for acing one!

Last Week in Review

WORKIN' NINE TO FIVE... WHAT A WAY TO MAKE A LIVIN'..." Dolly Parton. But unfortunately, last week's Jobs Report was worse than expected, showing more and more people aren't workin' nine to five or any other kind of full time job. So what does this mean for our economy and home loan rates? Read on to find out.

Last Friday's Jobs Report showed that 131,000 jobs were lost for the private and government sectors, versus the 87,000 job losses expected. To add insult to injury, the revisions for June showed nearly 100,000 more jobs lost than had been previously reported. While some of the losses were due to the government laying off temporary census workers, the private sector was also disappointing, showing 71,000 job creations for July, worse than expectations of 83,000... and well short of the market's hope of 100,000. Rounding out the report, the Unemployment Rate remained steady at 9.5%, just below the 9.6% anticipated.

In addition, something to keep in mind is that the State governments are now under major pressure because of growing budget deficits. With tax revenues declining and budget cuts needed, States are finally having to make cuts like the private sector already has. As they start to catch up in making cut-backs to headcount, this could cause the unemployment rate to worsen. Not very good news, as an improvement in the labor market is needed to fuel the economic recovery... and especially disappointing, considering the money that has been injected to try and remedy this situation.

Also in the news, the Commerce Department reported last week that Personal Spending and Incomes were unchanged in June, due to a slowing of the economic recovery in the spring. In addition, the Savings Rate increased as consumers cut back on spending.

Why is all this significant... and what does it have to do with interest rates? It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent, and passes from one hand to another, or one business to another. The speed at which this money passes between parties is called the velocity of money. With the job market still very sluggish, consumers aren't spending much money these days... and businesses are still reluctant to spend money making investments in their business. With present velocity at low levels, inflation remains subdued... however, once velocity increases, the excess money in the system will cause inflation.

And remember, inflation is the arch enemy of Bonds and home loan rates... which means that even the scent of inflation can cause home loan rates to worsen.

While we certainly want to see better Jobs Report numbers in the future, Bonds and home loan rates were able to benefit from the poor report. Remember, weak economic news often causes money to flow from Stocks to Bonds as traders seek to protect their investments in the safer haven of Bonds. As a result, Bonds and home loan rates ended the week slightly better than where they began.

If you or anyone you know would like to learn more about taking advantage of historically low home loan rates, please don't hesitate to call or email. Or forward this newsletter on to anyone you think may benefit and I'd be happy to talk to them free of charge.

ACING A JOB INTERVIEW IS ESPECIALLY IMPORTANT IN TODAY?S TOUGH JOB MARKET. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW FOR SOME TIPS ON HAVING A GREAT WEB CAM INTERVIEW.

Forecast for the Week

There will be plenty of action ahead this week, beginning with Tuesday's Federal Open Market Committee meeting. This week's meeting will be very important and closely watched as the important "extended period" language will come under scrutiny, as well as options that the Fed will discuss to further stimulate the economy and avoid deflation. Their decisions could certainly impact home loan rates, and I will be watching closely to see what happens.

Also this week, Thursday brings another Initial and Continuing Jobless Claims Report, while on Friday we will see both the Retail Sales and Consumer Price Index (CPI) Reports. Remember, last week it was reported that Personal Savings increased, so it will be important to see how this impacts Retail Sales. And, as mentioned above, any hint of inflation can hurt Bonds and home loan rates, which is why the CPI Report - which measures inflation at the consumer level - is also an important one to watch.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds and home loan rates continue to improve, most recently aided by the weak Jobs Report.

-----------------------

Chart: Fannie Mae 4.0% Mortgage Bond (Friday, August 6, 2010)

The Mortgage Market Guide View...

How to Succeed on Webcam Interviews

Webcams have steadily grown in popularity in households across the country. Now, companies are embracing the technology as a cost-effective, timesaving way to conduct interviews. And businesses aren?t the only ones turning to this technology. Colleges and universities - such as the University of Georgia, Pennsylvania State University, Arizona State University, and Wake Forest - are also using the technology to interview applicants before admitting them.

If you or someone you know is in the process of applying for a new job or to a university, the following information can help you put your best foot forward if you?re asked to participate in a webcam interview.

Eliminate distractions. When you?re on a webcam at your house, you can be interrupted by the phone ringing, the kids playing, or the doorbell ringing. To make sure that doesn?t happen, find a quiet place where you can avoid any distractions that may compromise your interview.

Remove the clutter. A webcam interview doesn?t just allow the company to see you; they can also see into your home. If the background setting looks messy, cluttered, or less than professional, it may taint the company?s perception of you. So, clean up everything that will be in the background, including those things that are off in the distance. The best advice is to have a clean, simple background setting for the interview where only one or two major pieces of furniture can be seen.

Dress for success from top to toe. While it may be tempting to dress professionally from the waist up while wearing shorts or pajamas below, don?t do it. There are too many stories of people who found themselves reaching for a book or retrieving an object during the interview, only to be embarrassed by the lack of professional attire on their legs. And while the situation may sound laughable, the company interviewing you may take it as a sign that you?re either trying to get away with something or that you?re the type of person who does things halfway.

Check the lighting. Anyone who?s ever used a webcam realizes that you can sometimes appear pale or tired in an online video. To overcome this problem, you can take a few simple steps. First, make sure you are well rested before the interview. Second, check the lighting. You?ll want the room to be bright, but not so bright that your face is washed out. If you need additional lighting, bring a lamp or two into the room.

Maintain eye contact. To make sure you maintain eye contact, look directly at your webcam - rather than at the person?s image on your monitor. It may feel awkward at first, but it will appear natural and professional to the person on the other end.

Test your equipment. No matter how familiar you are with a webcam, you should arrive at your desk well before the interview and test your equipment. You may even want to consider video chatting with a friend for a few minutes.

Send the right body language. Like a face-to-face interview, your posture and body language are important online. So sit up straight, use simple hand gestures as you talk, and resist the urge to fidget or make a lot of unnecessary movements (like scratching your head or constantly readjusting your seating position).

Be specific, yet concise. Provide concise answers that convey specific details. Prepare specific talking points and details about your accomplishments, and then practice saying them succinctly. But don?t memorize a script like you would a speech. Instead, focus on working some talking points into different types of answers.

Finally, don?t be put off by a short silence after you finish speaking, which is likely due to the time delay. Remain confident and stick to your concise statements.

--------------------------

Economic Calendar for the Week of August 9-13, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of August 09 - August 13

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Tue. August 10	08:30	Productivity	Q2	0.1%		2.8%	Moderate
Tue. August 10	02:15	FOMC Meeting	8/10	0.25%		0.25%	HIGH
Wed. August 11	08:30	Balance of Trade	Jun	-$42.5B		-$42.3B	Moderate
Thu. August 12	08:30	Jobless Claims (Initial)	8/07	465K		479K	Moderate
Fri. August 13	08:30	Consumer Price Index (CPI)	Jul	0.2%		-0.1%	HIGH
Fri. August 13	08:30	Core Consumer Price Index (CPI)	Jul	0.1%		0.2%	HIGH
Fri. August 13	08:30	Retail Sales	Jul	0.5%		-0.5%	HIGH
Fri. August 13	08:30	Retail Sales ex-auto	Jul	0.2%		-0.1%	HIGH
Fri. August 13	10:00	Consumer Sentiment Index (UoM)	Aug	70.0		67.8	Moderate

Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

YOU Magazine: Does Your House Need a V8?

noreply@blogger.com (Deanes Group) — Fri, 06 Aug 2010 03:02:00 +0000

Follow Me On:

Edward F. W. Deanes
Home Mortgage Consultant
Wells Fargo Home Mortgage
Phone: (757) 418-2064
Fax: (866) 935-0661
edward.deanes@wellsfargo.com
www.deanesgroup.com

August 2010


	July 2010
	June 2010
	May 2010
	April 2010
	March 2010
	February 2010

Wow, I Could Have Had a V8 And a Great Home Loan Rate! You've probably seen a commercial for V8 where someone gets 'bonked' in the head for skipping their veggies. Well, with rates this low, the same could be true for many people with home loans. Keep Reading »

FAQs On the New Credit Card Rules Sweeping Changes Shift the Game In Your Favor By Joan Goldwasser, Kiplinger.com Striking a blow for freedom and transparency, consumer-friendly rules mandated by the Credit Card Accountability Responsibility and Disclosure Act of 2009 took effect on February 22, Washington's Birthday. Not sure what this means to you? We have answers to your questions. Keep Reading »

Hi Ho, Hi Ho, It's Off to School We Go Tips for College Attendees and Applicants In just a few short weeks, students across the country will be heading back to school. Kiplinger.com has compiled some great tips in the accompanying video for the college-bound among us. For those students heading back to high school, it's never too early to start planning for your own college career. That's why we put together this list of tips to help your application stand out from the crowd. Keep Reading »

Cooking Without Fire, Part 4 Beating the Heat with Spicy Food By Kirk Leins August is here and so is the hazy, hot, and humid weather. It's safe to say the last thing you'll feel like doing this month is turning on your oven or, for that matter, any appliance that'll add to the heat inside your home. Welcome to my fourth installment of Cooking Without Fire, the series dedicated to making cool meals during a hot summer. Keep Reading »

Would You Like Fries With That? Tips for Eating Well During Your Summer Vacation Getting into shape for swimsuit season can be a challenge. So can staying in shape! Eating out, especially when you're on vacation and eating out often, can be one of the trickiest hurdles to navigate. Keep Reading »

Are You Working in the Informational Zone or in the Influential Zone? By Michael J. Maher, MBA In my book, (7L): The Seven Levels of Communication: Go from Relationships to Referrals, I outline my Communication Pyramid that shows the types of communication and the power associated with each level. One of the most important concepts I discuss is the difference between the Informational Zone and the Influential Zone. Keep Reading »

Licensed Loan Officer - Licensed Real Estate Agent - This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo. You are receiving a complimentary subscription to YOU Magazine as a result of your ongoing business relationship with Edward F. W. Deanes. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials. .
Edward F. W. Deanes Wells Fargo Home Mortgage 4456 Corporation Lane, Suite 100 Virginia Beach, VA 23462
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MMG Weekly: Stocks and Bonds Doing the Tango

noreply@blogger.com (Deanes Group) — Tue, 03 Aug 2010 14:41:00 +0000

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Edward F. W. Deanes

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: (757) 418-2064

Fax:: (866) 935-0661

edward.deanes@wellsfargo.com

www.deanesgroup.com

In This Issue

Last Week in Review: Stocks and Bonds danced around each other this week, reacting to a mix of strong and weak economic data. Find out what this means for home loan rates.

Forecast for the Week: A busy news week ahead, including the heavy hitting Jobs Report, waiting in the wings until Friday morning.

View: Learning to use money wisely can start at any age, especially with these seven tips for teaching kids financial responsibility.

Last Week in Review

THEY SAY IT TAKES TWO TO TANGO... And the relationship we see in the markets between Stocks and Bonds is a dance of its own, as one often improves at the expense of the other... while one kicks higher, the other often dips lower. But why... and how does this impact home loan rates? Here?s what you need to know.

Weak economic news normally causes money to flow out of Stocks and into Bonds, because investors see Bonds as a safer haven when the economy appears weak. An increased demand for Bonds means that Bond prices move higher, as with any item when there is heavy demand for it. And when Bond prices move higher, it means that Bond yields - and consequently home loan rates - move lower. So any movement of money into Bonds typically helps home loan rates improve. Conversely, strong economic news normally has the opposite result. When the economy appears strong, investors move their money to Stocks in the hopes of taking advantage of any gains... and often this money is being pulled back out of Bonds. In turn, this often causes Bonds and home loan rates to worsen as a result.

Last week, we saw this dance in several instances. Through the week, Stocks danced higher as strong earnings reports continued, with more than three-quarters of the S&P 500 companies who've reported second quarter earning beating expectations. In addition, conditions in Europe look to be improving... and this is quite the turnaround from just a few weeks ago when things looked to be horrible. The bank stress tests - whether they are to be believed or not - appear to have helped conditions overall, and brought some strength to the Euro and also to our Stocks, which improved on the news.

This is important to note, as part of the big rally we have seen in the Bond market and the big improvement in home loan rates came from the rush of funds from Europe to the US, and in particular to our Bond market, as protection from a precipitously declining Euro. If conditions in Europe continue to improve, money might just flow back over to Europe, and Bonds and therefore home loan rates could worsen.

However, not all of our economic news has been positive lately, and some of this weaker economic date helped Bonds and home loan rates maintain their historic levels last week. Durable Goods Orders, manufactured goods lasting at least three years, fell 1.0% for June. This was the biggest decline in nearly a year, signaling that economic growth was stagnant in the second quarter. In addition, the Advanced or first reading for 2nd Quarter GDP showed the US economy slowed to a 2.4% annual growth rate, which represents the lowest number in a year. These readings show that consumers and businesses remain cautious and reluctant to spend money. And that's understandable... concerns remain about the labor market, the housing market, and the economy overall. All in all, the news from last week helped Bonds and home loan rates improve, and they ended the week slightly improved from where they began.

EVEN THOUGH SCHOOL'S OUT FOR THE SUMMER, LEARNING TO MAKE SMART MONEY CHOICES IS IMPORTANT AT EVERY AGE. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW FOR SOME TIPS ON HELPING YOUR KIDS USE MONEY WISELY.

Forecast for the Week

This week's news could cause a little more twist and shout between Stocks and Bonds, beginning with Tuesday's Personal Income and Personal Spending Reports, which will give us a look at the Core Personal Consumption Expenditure (PCE) Index. PCE is the Fed's favorite gauge of inflation, and they will most certainly be watching this number closely in advance of their August 10 meeting of the Federal Open Market Committee (FOMC).

And there will be plenty of labor market news ahead this week. After Thursday's weekly Initial and Continuing Jobless Claims Report, Friday will bring the Labor Department's Official Jobs Report for July. Last month's report showed that 125,000 jobs were lost during the month of June, and remember, we need to create 125,000 to 150,000 jobs each month - via both private and government jobs - just to keep up with the pace of population growth. With 3.25M people claiming EUC (Emergency Unemployment Compensation) benefits according to last week's Jobless Claims Report, it doesn't appear that this week's official Jobs Report for July will paint a rosy picture.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, bonds improved above important resistance, allowing home loan rates to continue to improve. I?ll be watching to see if this continues.

-----------------------

Chart: Fannie Mae 4.0% Mortgage Bond (Friday, July 30, 2010)

The Mortgage Market Guide View...

7 Ways to Teach Financial Responsibility to Children

If the current economic climate has taught us anything, it?s that financial education and responsibility are critical in today's fast-paced, wired world. All too often, however, children grow up immune to the financial world around them. As a result, they're often ill equipped to manage their own finances when they become adults and leave home.

With the economy in the news almost daily, now?s a perfect time to start educating your children about how to manage money more responsibly. The tips below can help you get started.

1. Pay an Allowance

If your children don't have money of their own, it's hard for them to really grasp the value of it. So if you don't pay your children allowance, consider starting. You don?t need to pay a lot - a little goes a long way. The most important thing is that your children learn the value of completing even small chores around the house to earn their own money.

2. Make a Plan and Set Guidelines

Before you actually start paying the allowance, sit down with your children and set some expectations. Discuss the specific chores and timelines for completing those chores, as well as the amount of money they?ll earn for each chore and when they?ll be paid. This helps instill a strong work ethic in children as well as drive home the message that money is earned, not given.

3. Save for the Future

As part of your financial discussion, consider implementing a savings rule for your children. For example, make a rule to save half or one-third of their allowance. You can go with them to the bank to establish a savings account in their name and then take them to make their deposits. Or, if your children are still young, you can decorate a jar to use as a special savings bank at home.

4. Educate on Interest

Once a month, sit down with your kids and count how much they have deposited, how much interest they have earned, and how much they have as a result. Compare the amounts each month, so your children can see the benefits not only of saving, but also the benefits of compounding interest.

5. Take Your Children Shopping

Take your children grocery shopping with you. As you go down your shopping list, have your children help you compare the prices of the different brands, sales, and quantities per package. You can also have you children try to keep a running tally and make a guess of what the total cost will be.

6. Set Them Free to Shop

Once your children have a sense of money matters, you may want to take the lesson up a notch. For instance, when your children need new school clothes, you try giving them the money and putting them in charge of what to buy. Then, as they shop, help them compare the prices and number of items they can purchase within their budget. You could even purchase a gift card with a specific dollar value on it. That will help your children not only learn about the value of a dollar and making smart purchases, but it?ll also introduce them to the credit card system, in which money may not seem real because it?s unseen. In today?s electronic financial world, this lesson will become more and more important as your children get older.

7. Teach by Example

Remember, children are always watching. So if you educate them on saving for purchases and budgeting but make rash decisions on big-ticket items yourself, you may find them learning a different lesson than you intend. So make sure you follow your own rules when it comes to spending, saving, and fiscal responsibility.

At times your children may beg for an exception. But by being consistent, your children will be much better prepared to deal with the real financial world that they?ll face when they grow up.

--------------------------

Economic Calendar for the Week of August 2-6, 2010

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of August 02 - August 06

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Mon. August 02	10:00	ISM Index	Jul	54.2		56.2	HIGH
Tue. August 03	08:30	Personal Income	Jun	0.1%		0.4%	Moderate
Tue. August 03	08:30	Personal Spending	Jun	0.0%		0.2%	Moderate
Tue. August 03	08:30	Personal Consumption Expenditures and Core PCE	Jun	0.1%		0.2%	HIGH
Tue. August 03	08:30	Personal Consumption Expenditures and Core PCE	YOY	NA		1.3%	HIGH
Wed. August 04	08:15	ADP National Employment Report	Jul	25K		13K	HIGH
Wed. August 04	10:00	ISM Services Index	Jul	53.0		53.8	Moderate
Wed. August 04	10:15	Crude Inventories	7/31	NA		7.31M	Moderate
Thu. August 05	08:30	Jobless Claims (Initial)	7/31	455K		457K	Moderate
Fri. August 06	08:30	Non-farm Payrolls	Jul	-87K		-125K	HIGH
Fri. August 06	08:30	Unemployment Rate	Jul	9.6%		9.5%	HIGH
Fri. August 06	08:30	Hourly Earnings	Jul	0.1%		-0.1%	HIGH
Fri. August 06	08:30	Average Work Week	Jul	34.1		34.1	HIGH

[mmgwDisclosure]

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Strategic Partners - Another Business Booster from Edward F. W. Deanes -

noreply@blogger.com (Deanes Group) — Mon, 26 Jul 2010 19:03:00 +0000

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Edward F. W. Deanes
Home Mortgage Consultant
Wells Fargo Home Mortgage
Phone: (757) 418-2064
Fax: (866) 935-0661
edward.deanes@wellsfargo.com
www.deanesgroup.com

Command Central
Developing Relationships with Strategic Partners

Everyone whose business relies on referrals can benefit from developing relationships with strategic partners. Armed with sufficient knowledge about each other, I feel we could be a great team.

As a Loan Executive, I seek to establish relationships with professionals in other fields who are known for their superb customer service and business ethics.

I am interested in getting together with you for lunch or perhaps a cup of coffee, to get to know each other better and determine whether we have the potential to develop a working relationship. It is most important to me to learn how to represent you correctly, if I were to recommend you to my clients.

Here are some questions to consider prior to our meeting:

What is your unique selling proposition? What makes you stand out from your competition?
How long have you been in your current business?
What do you do to ensure your customers are happy with you and your team?
What is your standard procedure when taking on a new client?
What are your primary goals?
Are you implementing new marketing strategies?
If so, what results do you hope to achieve in the next 12 to 24 months?
Do you feel you are currently marketing to your database effectively?
What systems do you use to build referrals and generate leads?
What do you look for in a strategic partner?
What strategies are you implementing, or would you like to implement, with strategic partners?
What is the most important thing you look for in a mortgage professional?
What are your personal interests? Do you feel you have adequate balance between your work and personal life, so that work is not consuming all of your time?

My goal is to know more about you, and likewise, let you know more about how I do business. If we both feel that we can work well together as partners, we will have enough information to intelligently refer business to each other. My clients perceive me as an expert in my field who does much more than quote rates. They see me as a resource for helping them to manage their debt over time.

Call me to learn more about methods for providing exemplary customer service both during and after the loan process!

Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

Another Business Booster from Edward F. W. Deanes - Time Blocking

noreply@blogger.com (Deanes Group) — Mon, 26 Jul 2010 19:00:00 +0000

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Edward F. W. Deanes
Home Mortgage Consultant
Wells Fargo Home Mortgage
Phone: (757) 418-2064
Fax: (866) 935-0661
edward.deanes@wellsfargo.com
www.deanesgroup.com

Time Blocking
Put Balance Back into Your Life

Have you ever had your day end and wonder where it went? Have you ever been frustrated by how reactive you have been to "emergency" situations that significantly reduced your productivity?

Many of us have experienced this to an excessive degree in our business practices. One of the greatest ways to eliminate the reactive state we find ourselves in is to practice the art of Time Blocking. Time Blocking is about scheduling your day with purpose, making sure the things you need to get done DO get done. This applies to work and personal activities. Remember, the more proactive you are with your day, the less reactive you will be.

Dedicate yourself to the following exercise for 2 weeks. Each morning, start off by blocking your entire day in ½ hour increments. The result might look something like this:

8:30 - 9:00	Check emails and voice mail
9:00 - 9:30	Return calls
9:30 - 10:00	Prospect for new business
10:00 - 10:30	Staff meeting
10:30 - 11:00	Check voice mail and return calls
11:30 - Noon	Strategies new business planning
Noon - 12:30	Return calls
12:30 - 1:00	Break for lunch
1:00 - 1:30	Return calls
1:30 - 2:00	Meet with client

The key to this type of planning is to check your voice mail and email each hour and return messages promptly. The reason is simple: If you let too much time lapse before you respond to your client, it will tear you away from your time blocking schedule. The temptation to check the red light blinking on your phone, or respond to that electronic voice saying, "You've got mail," will be too great to resist. Remember, time blocking is about commitment. The more you live your days proactively, the more work you will get done.

Let's schedule some time to discuss ways we could work together as a team!

Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.

What Good is an Extension without a Loan Approval?

noreply@blogger.com (Deanes Group) — Tue, 20 Jul 2010 16:41:00 +0000

The deadline for "tax credit" homebuyers waiting to close on June 30 has been extended to September 30. Not only is the extension great news, but interest rates have fallen over .375-.50% since the end of April according to Freddie Mac.

This could effectively reduce a buyer's monthly payment over $600-800 a year on a $200,000 30-year fixed rate loan!

Unfortunately, for the estimated 180,000 homebuyers this extension impacts, their closing was held up by the lender. Some of the reasons may well be legitimate and some unfortunately may not be.

If you know someone who has had difficulty getting a loan closed, call me. Don't miss this chance to help someone qualify for a tax credit! Just because someone has been unable to get a loan closed so far does not mean that it may not be able to close. What's more, we closed a lot of loans in May and June for people who submitted their application after the Tax Credit's April 30th contract deadline.

I'll review anyone's situation free of charge and offer my opinion on what I would do were I in that position. Act quickly though so we can address their situation before it's too late.

It's important to note that the Homebuyer's Tax Credit extension only applies to people who were under contract by the initial April 30th deadline. Homebuyers who entered into contracts after April 30th remain ineligible for the tax credit.

Thank you,

Edward Deanes

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.