Mortgage Market Guide Weekly Issue 8

Last Week in Review: More Fed chatter hit the wires about Quantitative Easing. Find out what happened.

"You don't know what you got until it's gone." Those lyrics from the band Chicago's 1980's hit could apply to the chatter from the Fed last week, as the debate about whether to continue their latest round of Bond buying, known as Quantitative Easing, continues.

What is Quantitative Easing? Quantitative Easing is the concept of the Fed becoming a buyer of Treasuries and Bonds to try and stimulate the economy.

Why does the Fed do Quantitative Easing? Oftentimes, the Fed does Quantitative Easing when they are hoping to (1) create inflation and avoid a deflationary economy, (2) lower the unemployment rate, and (3) boost Stock prices. For this latest round of Quantitative Easing, the Fed especially wanted to help stimulate the housing market and our economy overall.

And the housing market has shown signs of improvement lately. While Housing Starts in January declined overall, single family Housing Starts rose to its highest rate since July 2008. Building Permits, a sign of future construction, also came in above expectations. These reports were the latest in a series of reports showing that the housing market is recovering.

What is all the Fed chatter about? Last week, the minutes from the Fed's January meeting of the Federal Open Market Committee were released. The minutes noted that several Fed members would like to halt the Quantitative Easing program sooner than planned, because they are concerned about inflation. However, it's important to note that last week's Producer and Consumer Price Index Reports showed that inflation at both the wholesale and consumer levels remained tame in January.

On the flip side, other Fed members are concerned that halting the program too soon could end the recovery in the housing market, and hinder our economic recovery overall. And given that the increase in the payroll tax in January left consumers with less money in their paychecks, and that Walmart has reported that February sales were the weakest in seven years, this is an important factor to consider as well.

The biggest take away is that now remains a great time to consider a home purchase or refinance, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week: The last week of February brings a full slate of economic news.

A busy week of reports is ahead, with news on housing, manufacturing, consumer sentiment, U.S. growth and inflation.

• The week starts and ends with a measure of how the consumer is feeling with Tuesday's Consumer Confidence Report and Friday's Consumer Sentiment Index.
• There's a double dose of housing news on Tuesday, with the Case Shiller Index and New Home Sales. Plus, look for Pending Home Sales on Wednesday.
• We'll get a sense of how the economy is doing with Wednesday's Durable Goods Orders, which measures orders for products used for an extended period of time, and Thursday's Gross Domestic Product, the biggest picture of economic activity.
• Also on Thursday, Weekly Initial Jobless Claims will be reported.
• Ending the week, Friday brings Personal Consumption Expenditures, the Fed's favorite measure of inflation, along with Personal Income and Spending and the ISM Index.

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 Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving -- and when they are moving lower, home loan rates are getting worse.

To go one step further -- a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds and home loan rates remain steady near record best levels. I'll continue to monitor them closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Feb 22, 2013)

View: Want your social media posts to be as effective as possible? Don't miss important information below.

Best Days and Times for Posting to Social Media

More than nine out of ten businesses spend six or more hours online each week maintaining a presence on social media. And while you probably already know the benefits of social media--better engagement with your market, better website traffic, improved sales--you might not realize that some days (and times!) are better than others for posting to social media.

Social media analytics firm Socialbakers showed Facebook posts achieve 50% of their total reach within 30 minutes of being posted. In other words, half of all the people who will see your post have seen it within the first half-hour after you post it. Not only that, by the time 90 minutes have elapsed, your average post reaches less than 2% of total audience for the next seven hours before it drops off completely.

That's why timing your posts properly is the best strategy. Here are the best days and times to post according to current research from Social Caffeine:

Twitter
BEST: 1 p.m. to 3 p.m., Monday through Thursday
WORST: 8 p.m. to 9 a.m. Avoid after 3 p.m. Friday and weekends

Facebook
BEST: 1 p.m. to 4 p.m., peaking on Wednesdays at 3 p.m.
WORST: 8 p.m. to 8 a.m., avoiding weekends

LinkedIn
BEST: 7 a.m. to 9 a.m. OR 5 p.m. to 6 p.m., Tuesday through Thursday
WORST: 10 p.m. to 6 a.m., avoid Monday and Friday

Pinterest
BEST: 2 p.m. to 4 p.m. or 8 p.m. to 1 a.m., peaking on Saturday morning
WORST: 5 p.m. to 7 p.m. and late afternoons

Economic Calendar for the Week of February 25 - March 01

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. 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, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, 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 Weekly Issue 5

Last Week in Review: There was important news on the labor market and the state of the economy. Find out how home loan rates were impacted.

Take two steps forward and one step back. That popular catchphrase is a good description of our economy of late, as good economic news continues to be tempered by some negative reports.

There was mixed news in the Jobs Report for January: 157,000 jobs were created, which was below expectations, while the unemployment rate ticked up to 7.9% from 7.8%. On the flip side, the November and December job numbers were revised higher by 127,000. In addition, the benchmark revisions showed that employers added 335,000 jobs in 2012, more than was originally reported. That brought the average rate of job gains per month in 2012 to 181,000, up from the 175,000 per month average seen in 2011.

Overall, the labor market continues to improve, but at a very slow pace. And seeing the unemployment rate tick higher is yet another reason why the Fed said last week that their Bond purchase program (known as Quantitative Easing) will continue.

In other important news, Fourth Quarter Gross Domestic Product (GDP) showed negative growth for the first time since the second quarter of 2009. While external factors like Superstorm Sandy did have an impact on this reading, overall growth has been limited to just 2% or so annually. This is part of the reason why the unemployment rate remains as elevated as it is.

What does this mean for home loan rates? First, it's important to remember three things. First, home loan rates are tied to Mortgage Bonds, and as Bonds improve, home loan rates improve. Second, inflation is the arch enemy of Bonds (and therefore home loan rates) as inflation reduces the value of fixed investments like Bonds. Third, Bonds (and therefore home loan rates) typically benefit when there is weak economic news, as investors tend to move their money into safer investments like Bonds.

The question is: With the Fed still buying $85 billion in Mortgage Bonds per month, no inflation, and weak economic readings, why aren't Bonds and home loan rates improving? The answer: Stocks had their best January in over two decades. As long as the Fed continues to pump money into the economy, the bias in the markets will likely be towards riskier assets like Stocks.

However, home loan rates remain near historic lows, which means now is still a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week: In the absence of any major economic data points and with earnings season coming to an end, investors will be looking for the next catalyst to impact the markets.

After last week's packed economic calendar culminating with Friday's mixed Jobs Report, this week's calendar is light.

• Look for the ISM Services Index on Tuesday.
• Weekly Initial Jobless Claims will be reported as usual on Thursday. Last week's reading showed that initial claims jumped 38,000 to 368,000 in the latest week.
• Also on Thursday, Q4 2012 Productivity will be released

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 Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving -- and when they are moving lower, home loan rates are getting worse.

To go one step further -- a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds attempted to stabilize last week. I'll continue to watch the markets closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Feb 01, 2013)

View: The cost of getting the flu is nothing to sneeze at. Be sure to share the important information below with clients and colleagues.

 Monitor the Flu Online

Flu season is here...and the cost of the season is nothing to sneeze at! In fact, Americans spend approximately $4 billion on over-the-counter cold and flu remedies. That doesn't even factor in how much time and productivity is lost on sick-time in the workplace or co-pays for doctor visits and prescriptions.

But with the two websites below, you can stay up to date on the latest flu information in your area and even add your data to help others.

View Flu Activity:

You don't have to wonder if the flu is prevalent in your state or search for long complicated reports. Each week, the Centers for Disease Control and Prevention (CDC) produces a Flu Activity Map. The map displays the level of flu activity across the United States and is based on data reported from state epidemiologists. The map also allows you to view previous weeks, so you can compare the spread of flu activity over time.

Contribute Your Data:

On the "Flu Near You" website, you can complete a brief weekly survey that may help all of us learn more about the flu. When a case is reported, the map registers a "pin" in the map - and you can even click on that pin to learn more about the symptoms or severity of the case! The site is completely free to use. And the information on the site will be available to public health officials, researchers, disaster planning organizations and anyone else who may find this information useful.

So if you're concerned about being sidelined by the flu, take a few minutes to check out the websites above. You may even want to consider passing the information on to your friends, family members, or even your clients.

Economic Calendar for the Week of February 04 - February 08

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. 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, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, 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 Weekly Issue 4

Last Week in Review: Good news moved the markets. How were home loan rates impacted?

"Happy days are here again." Milton Ager and Jack Yellen. There was more evidence last week that the housing market is improving. But not everything that happened last week was cause for song. Read on to learn more.  

Last week, the Federal Housing Finance Agency (FHFA) reported that home prices rose by 0.6% in November from October, and that they are up 5.6% from the year ended in November. These numbers are based on data received from Fannie Mae or Freddie Mac mortgages. In addition, both Existing Home Sales and New Home Sales for December, though below estimates, were strong numbers for 2012.

But the housing market wasn't the only area where we saw positive economic data last week. There was good economic news out of Germany, plus several companies here reported strong earnings, including Procter & Gamble and Honeywell. In addition, weekly Initial Jobless Claims dropped by 5,000 to 330,000 in the latest survey: this is the lowest level since January of 2008. It is important to note that estimates were used for three states, including Virginia and California, so the numbers could be distorted.

How were home loan rates impacted? The mix of good economic news last week caused investors to move their money out of Bonds, which are considered safer investments, and into Stocks in the hopes of taking advantage of gains. And since home loan rates are tied to Mortgage Bonds, as Bonds worsened last week, so did home loan rates. But rates remain close to historic lows, and now is still a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients. 

Forecast for the Week: A busy week is ahead, with news on inflation, consumer confidence and spending, manufacturing, the labor market and more.

 A full slate of economic reports is ahead, with several key data points that could move the markets.

• Monday's Durable Goods Orders and Wednesday's Gross Domestic Product Report will give us signs as to how our economy is doing.
• Monday also brings more news on the housing market with Pending Home Sales, which will be followed by Tuesday's Case Shiller 20-city Home Price Index.
• We'll get a sense of how the consumer is feeling with Consumer Confidence on Tuesday and the Consumer Sentiment Index on Friday.
• Thursday brings several key economic reports, including Initial Jobless Claims, Chicago PMI, Personal Income and Spending, and the inflation-reading Core Personal Consumption Expenditure, the Fed's favorite measure of inflation.
• Rounding out the week, the all-important Non-Farm Payrolls will be reported along with the Unemployment Rate. Also on Friday, the ISM Index will be delivered.

In addition, the Federal Reserve will meet for its two-day meeting of the Federal Open Market Committee, with the monetary policy statement released at 2:15pm ET on Wednesday. The statement will be dissected for any hints on the current purchase programs of Mortgage Backed and Treasury Securities. If there is any talk of halting the programs this year, it could lead to lower Bond prices and a push higher in home loan rates.

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 Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving -- and when they are moving lower, home loan rates are getting worse.

To go one step further -- a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds and home loan rates worsened after positive economic data was released last week. I'll continue to watch all the news and market action closely. 

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Jan 25, 2013)

View: There's a new scam targeting small businesses. See important details below.

FTC Warns of New E-mail Scam
Small-business owners are the target of this phishing scheme.
By Cameron Huddleston, Kiplinger.com

The Federal Trade Commission is warning small-business owners not to open e-mails with the subject line "Notification of Consumer Complaint." The e-mail falsely claims to be from the FTC and states that a complaint has been filed with the government agency against their company.

E-mails of this sort often prompt recipients to click on a link or open an attachment. However, these links and attachments usually install malware or a virus on your computer if you click on them. Then you're at risk of having personal information stored on your computer stolen.

The FTC says that you should delete such e-mails. It also offers tips on how to reduce your risk of downloading malicious software onto your computer.

• Keep your security software updated by setting it to update automatically.
• Don't buy software in response to pop-up messages on your computer or e-mails. Scammers use ads that claim to have scanned your computer and detected malware to get people to install malicious software.
• Make sure your Internet browser security setting is high enough to detect unauthorized downloads. For example, Internet Explorer users should have their security setting at medium, at a minimum.
• Use a pop-up blocker on your browser (look for the security tab in your browser's options). Links in pop-ups can contain malware.

If you notice that your computer is running slower, crashes often or repeatedly displays error messages, it may have a virus. Other warnings signs include new toolbars or icons on your desktop, a barrage of pop-ups, Web sites that you didn't intend to visit displaying on your screen and a laptop battery that drains quickly.

See Protect Yourself From New Phishing Schemes for more advice on avoiding fraudulent e-mails.

Reprinted with permission. All Contents ©2013 The Kiplinger Washington Editors. Kiplinger.com 

Economic Calendar for the Week of January 28 - February 01

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. 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, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, 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 Weekly Issue 3

Last Week in Review: There was good news on the housing front, plus inflation remains tame.

"There is magic in that little word, home." Robert Sotheby. And last week, there were more signs that the housing sector continues to improve. Read on for details.

Housing Starts surged by 12.1% in December to 954,000 units on an annualized basis. This was above expectations and the highest level since June 2008. Building Permits, a sign of future construction, also increased, coming in slightly higher than the November reading.

In addition, research firm CoreLogic reported that home prices rose by 7.4% in the year ended in November. This figure, which includes the sales of distressed properties, was the largest year-over-year increase since 2006 and it has been positive for nine straight months. Also, the Obama Administration's December Housing Report showed that home prices had solid annual gains for the year ended in October, with the Federal Housing Finance Agency (FHFA) and Case-Shiller housing price indices up 5.6% percent and 4.3%, respectively, from one year ago.

It's also important to note that RealtyTrac's year-end 2012 foreclosure report showed that foreclosure activity increased in 25 states. However, median home prices also increased in 25 states, which pulled 1.6 million homeowners out of negative equity in 2012.

So what's the takeaway? Goldman Sachs has reported that the fundamentals are pointing towards larger gains for housing prices in the next couple of years. And with home loan rates remaining near record lows, great opportunities are available.

As always, one thing that's important to monitor is inflation. Since inflation reduces the value of fixed investments, inflation is considered the arch enemy of Bonds–and, therefore, of home loan rates, which are tied to Mortgage Bonds. However, last week's wholesale-measuring Producer Price Index and the Consumer Price Index showed that inflation remains tame, meaning inflation is not a factor at this time.

The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week: It's a holiday-shortened week and while the economic calendar may be quiet, earnings season heats up.

The markets are closed on Monday in observance of Martin Luther King, Jr. Day and the economic calendar is pretty quiet the rest of the week.

• More housing news is ahead, with Existing Home Sales on Tuesday and New Home Sales on Friday.
• The only other economic report will be Weekly Initial Jobless Claims on Thursday. Last week, claims fell to a five-year low and this may have been due to seasonal factors. Investors will be looking for any uptick in the numbers.

In addition, many companies will be reporting their earnings numbers and the markets will be closely watching the results. Positive earnings data could help push Stocks higher and shift investing dollars out of the Bond markets, which could have a negative impact on home loan rates.

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 Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving – and when they are moving lower, home loan rates are getting worse.

To go one step further – a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds worsened last week due in part to the better-than-expected housing news and an influx of investing dollars into Stock mutual funds. I'll continue to watch this situation closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Jan 18, 2013)

View: Writing articles for local papers or newsletters is a great way to show your expertise. Check out the tips below, and be sure to share them with clients and colleagues.

Writing Business Articles That Get Read

"The easiest thing for a reader to do is to quit reading."
Michael Gartner, Pulitzer Prize winner and former President, NBC News

To some people, writing a business article can seem almost as daunting as public speaking. And yet, just like public speaking, business writing presents a variety of opportunities to share your expertise. Be it through local news outlets, community newsletters or shared access to a strategic partner's database, you can grab some fresh exposure for yourself or your business by writing a timely, helpful article.

Here are a few tips on how to write one that people will read and remember:

The Inverted Pyramid. Your goal should always be to create an easy reading experience for your audience. And there's no easier way to write an article than to follow in the footsteps of the experts. The inverted pyramid is a tool many journalists use to explain the structure of most news articles. For a classic example, read this news story (scroll down to the heading that says "History") that originally appeared in the New York Herald in April of 1865.

Start At The Bottom. You want to make sure all the newsworthy information is in the beginning, but not go into too much detail. It's critical you answer the Who, What, When, Where, Why, and How as early and as briefly as possible. If you skip this in favor of a long narrative, you're more likely to lose readers you wouldn't have lost otherwise.

Details, Details, Details. The benefit to keeping your introduction short and to the point is your readers are more likely to follow you into the nitty-gritty. This is the stuff you really want to talk about and here's where you'll expand on your message and deliver the value promised by your introduction. Make sure, however, you deliver the goods–or "pay off"–to your readers by giving them the information you've promised in your headline and introduction.

The Kitchen Sink. The ending is reserved for other information needed to back up your case, lend credibility to your point, or include relevant but non-essential information on the subject.

Call To Action. This step doesn't appear on the inverted pyramid model, but if you're writing for business, and your publication allows it, put a very clear call to action that lets readers know you take questions and are happy to receive a call from them if they want to talk more about it with you!

Economic Calendar for the Week of January 21 - January 25

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. 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, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am sharing with 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 Vol. 10 Issue 2

Last Week in Review: Unemployment hit a three-year low. How did Bonds and home loan rates react?

"Workin' nine to five. What a way to make a livin.'" Dolly Parton. And with last week's Jobs Report showing that unemployment has reached three-year lows, that's something more people have been able to do lately. Read on to learn more about what's happening in the labor market...and with home loan rates.

On Friday, the Labor Department reported that 200,000 jobs were created in December, with 212,000 private job gains offsetting modest losses in government jobs. Adding to the positive spin of the report was the Unemployment Rate falling to 8.5% from a previously reported and upwardly revised 8.7% reading.

While people being removed from the labor force are skewing this unemployment number to some degree, it's important to note that the U-6 unemployment rate dropped a few ticks as well, to 15.2%. This number includes ALL unemployed individuals, including those "marginally attached" to the labor force, who are either 'discouraged' and haven't sought work recently, as well as those folks working part-time who really desire full-time jobs.

Overall the Jobs Report was a modestly positive reading on the labor market. We still have 5.6 million people unemployed for 27 weeks or more, and that number is little changed this month. But the big takeaway today is that the trend is improving.

The other big takeaway is that bad news out of Europe helped balance out the good Jobs news here at home...allowing Bonds and home loan rates to recover from their initial negative reaction to the Labor Department's report. The Euro is continuing to be weighed down by rising concern on member countries' ability to get their deficits in order and their debt in manageable position.

The bottom line is that the problems in the Eurozone are vast, complicated, and without easy solutions…so it will take a very long time for clear resolution. And during times of global uncertainty, money will flow into the relative safe haven of the US Dollar and US Bonds - including Mortgage Bonds, which home loan rates are tied to. This means that home loan rates should continue in their sideways trend and remain near historic lows, making now a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients. 

Forecast for the Week: The second half of the week will be a busy one, with news on retail sales, consumer sentiment, and more.

 The second half of the week features several important economic reports:

• The Fed's Beige Book will be released on Wednesday. This is a report on economic conditions from the 12 Federal Reserve District Banks around the country.
• Initial Jobless Claims will be released on Thursday. Last week's number fell by 15,000 to 372,000 and the report signaled that the labor market could be turning the corner to greener pastures.
• Retail Sales will be released on Thursday and will be closely watched by both investors and traders. Last week, it was reported that retailers saw better-than-expected revenues for same-store sales in December, but the numbers were achieved by big discounts. Sales on Black Friday were robust, but fell off in the ensuing weeks during December. So the markets will be watching closely for the final numbers this week.
• The first look on Consumer Sentiment for January will be released on Friday.

In addition to those reports, the Treasury Department will sell a total of $66 Billion in government securities on Tuesday, Wednesday, and Thursday. Those auctions could impact the markets, depending on how they're received. So, I'll be watching the results - and their impact - closely. 

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.

View: Want some help keeping your New Year’s Resolutions? There’s an app for that!

There's an App for That New Year's Resolution!
Making It Happen, Part 2


In last week's View article, we focused on 5 steps to achieving your New Year's Resolutions. Those steps included: setting realistic goals, making a simple plan for each goal, announcing your goals, tracking and celebrating your progress, and avoiding the urge to give up if you have a setback.


Luckily, you're not on your own to work through those steps. That's because there are a number of social media websites and smart phone applications designed to help you.


Obviously, popular apps like Facebook and Twitter can help you announce your goals, hold yourself accountable, and receive supportive feedback from friends and family members. But there are a number of additional resources that you may not know about.


Here are just 5 social media sites and apps that can help you set your New Year's resolutions…and stay on track! 

1. Tweet Reminders. Twitter is great for connecting with people and sharing news instantaneously. But did you know it's also a great way to remind yourself about tasks? Need a reminder to go to the gym… or to call those past clients? No problem. Visit the Tweet Reminders site, and then enter your Twitter username and up to 5 tasks or reminders. You can even pick a date and time. Then, Tweet Reminders will send you a direct message on Twitter to remind you about them. It's both an easy and helpful thing to do. 

2. Moteevate. Regardless of whether your goal is big or small, this site has the inspiration, energy, and advice you need to reach it. With moteevate, you get support from people you already know as well as advice from experts in the field - all while being surrounded by people looking to achieve similar goals. You can even moteevate in teams and act as moteevators for each other. The site also includes cool trackers to record your progress and milestones. Plus, you can customize the privacy settings to keep your goals to yourself or share them with others. And best of all, the basic platform is free to use with the caveat that you pay whatever you want after you achieve your goal. In fact, this honor system is the only thing old-fashioned about moteevate.


3. Toodledo. This is a businessperson's dream app. You've no doubt seen a To-Do list before…but this app kicks it up a notch! Not only does it help you easily organize your tasks and set alarms, but it also allows you to collaborate with other people and establish sub-tasks to work towards your goal in small steps! Plus, Toodledo can be used on your mobile phone, in your email, on your calendar, and even integrated directly into your web browser. So you can stay on track from anywhere…and at any time. 

4. Stickk. The basic principle of this app is that "incentives get people to do things." So if you really want to achieve a goal - whether it's personal or professional - it's time to put your money where your mouth is. Basically, stickK allows you to create a Commitment Contract focused on achieving a specific goal. As part of the process, you set your goal and timelines, stakes, referee who will monitor your progress, and supporters who will cheer you on. If you achieve your goal in your timeframe, you don't lose the stakes you wagered. But - the best part is - even if you don't achieve your goal, the money you wagered goes to a worthy cause or charity that you designate. So it truly is a win-win situation!


5. GymPact. This is similar to stickK in that you put money on the line…but it's different in that you can also earn some money. You start by making a commitment that you will go to the gym a certain number of times per week (don't worry, you can change your pact any week). You also set the monetary stakes that you'll pay if you don't meet your commitment. Then, you simply use the GymPact iPhone app to check in when you go to the gym. When you meet your weekly goal, you'll be rewarded with real cash, funded by the people who didn't work out! The more days you commit, the more cash you earn. The only downside is that you need an iPhone (or an iPod Touch and a gym with Wi-Fi) to participate, since apps for other systems aren't available. 

Of course, this is just the tip of the iceberg when it comes to social media websites and apps designed to help you set and achieve your goals. Best wishes to you in the coming weeks and months.


And, if your New Year resolutions involve any financial or housing matters that I can help with, please call or email today. I'll be happy to help out in any way that I can. 
 

Mortgage Market Guide Vol. 10 Issue 1

Last Week in Review: Consumer Confidence here in the U.S. is on the rise, but what does that mean for home loan rates?

It's been said that "the only constant is change." And we certainly saw a lot of changes in 2011. As we ring in 2012, here's a look at how 2011 ended, and what lies ahead for home loan rates.

The Stock and Bond Markets were closed on Monday in observance of the Christmas holiday, and it was a fairly quiet week after that. However, there was some good news, as Consumer Confidence came in at 64.5 for December. Not only was this the third highest number reported for 2011, but this important index has jumped nearly 25 points in the past three months and now sits at its highest level since April. What's more, this report followed the recent Consumer Sentiment Index reading, which also came in at its highest level in six months.

While consumers certainly appear more optimistic here, the news hasn't been as positive out of Europe. The Euro struggled somewhat last week after just an okay performance from one of Italy's Bond auctions. While the country sold all their debt at yields slightly lower than where they were just the day prior, yields are still historically high (near 7% on 10-Year Notes) for a country that has a lot of debt to service and refinance in the coming year. In addition, Spain's government announced on Friday that the country's budget deficit will surpass 8%. Spain also unveiled new austerity measures to combat their economic and budgetary difficulties.

So what does all of this mean for home loan rates here in the U.S. in 2012? The uncertainty in Europe should continue to help Bonds and home loan rates, as investors will see our Bonds as a safe haven for their money - and remember, home loan rates are tied to Mortgage Bonds, so rates typically improve as Mortgage Bonds improve. However, continued good economic reports here in the U.S. could balance out those improvements. That's because investors will typically move their money out of Bonds and into Stocks during good economic times, so they can take advantage of gains.

The bottom line is that whatever lies ahead this year, 2012 begins with home loan rates near historic lows...which makes this a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week: The Markets will be closed on Monday for the New Year holiday, but we will see important news on the Jobs Market after that. 

Stock and Bond Markets will be closed on Monday, January 2, in observance of the New Year's holiday, but the week will be a busy one after that.

• Tuesday brings the Federal Open Market Committee Minutes from the Fed's last meeting in 2011. The Markets will be especially interested to hear what the Fed may have said about inflation.
• The ISM Services Index will be reported on Thursday. This report gives investors a gauge as to how the service sector is holding up in this economy. Individuals employed in this sector produce services rather than products. Service sector jobs provide a significant number of jobs in the US - including housekeeping, messenger services, tax preparation, nursing, and teaching.
• Also on Thursday, we'll see another weekly Initial Jobless Claims Report. It is encouraging to see that Claims remain beneath the 400,000 mark, which is a sign that the labor market is improving.
• The biggest news of the week will be Friday's Jobs Report, as the Labor Department reveals the latest unemployment figures and how many new jobs were created in December.

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. 

        
View: Are you "resolved" to keep your New Year's Resolutions this year? The tips below will help!

Making It Happen!

Part 1: 5 Simple Steps for Achieving Your New Year's Resolutions

Each new year is full of promise and potential. Perhaps that's why so many of us choose this time of year to make positive changes in our lives.

And, believe it or not, achieving your goals can be easier than you think. The following 5 steps can help you get started and follow through!

1. Set realistic goals. The first step to your successful New Year's resolutions is to set realistic goals for the coming weeks and months. You can start by focusing on the things you're passionate about or the things you've always wanted to do. Maybe it's a worthy cause you want to become involved in…or maybe you want to kick a habit that's bothered you for years. If it's something that you're passionate about, you'll have a better chance of being successful. Once you have the topic, make sure you write down a specific, attainable goal. It's not enough to just think about doing something. Come up with a specific statement you want to achieve. For example, the most common resolution is to lose weight. But that's not specific enough. Write down exactly how much weight you want to lose and by when. But make it realistic…and healthy at the same time.

2. Make a simple plan to achieve each goal. Once you have your goals written down, take the resolution a step further by figuring out how you'll achieve it. That means breaking the goal down into simple steps that you can achieve over time. And, often, it means multiple little steps. So, for the weight loss resolution, you may write down a number of simple, daily or weekly steps - such as exercise 20 minutes three times a week, eat vegetables and fruit with each meal, switch to diet cola or better yet water during the day, and lose a certain number of pounds per month. Remember to consult a physician before starting any weight loss or exercise routine to make sure you're approaching it in a healthy manner.

3. Announce your goals. One of the best ways to make sure you stick to your goals is to make them known to your friends, coworkers, and family members. The reality is, once you've told people you'll do something, you'll feel more accountability than if you just keep it to yourself. You'll also have a cheering section to help you stay focused and positive as you work to achieve your goals. But don't just share your goals; share the specific steps that you're going to take each day or week to achieve those goals. If you use any social media websites to connect with friends and family, make your goals and steps part of your daily/weekly updates…it's a great way to get the word out and hear feedback from people who want to help you stay on track.

4. Track and celebrate your progress. Small steps aren't just about making your way to a goal; they're also about building momentum, a positive attitude, and celebrating successes along the way. There are a number of ways to track and celebrate your success. For example, if your goal is to work out 20 minutes a day three times a week, you can use a marker and a calendar. Each day you work out, simply color that day in green (or another positive color that you like). As the month unfolds, you'll see more and more green covering the calendar, which will help you see just how much work you've done and keep you motivated to keep going. In addition, you can also use social media to track and celebrate your success. Maybe you tweet or update your Facebook status every time you exercise. Or maybe you announce when you've lost a few pounds. The point is, you've already announced your goals to friends and family as a way to hold yourself accountable, now it's time to celebrate with those same people every time you achieve a step along the way.

5. Don't get discouraged. You're bound to have good weeks and bad weeks. Just because you fall off track once or twice doesn't mean you should give up. Instead, acknowledge that you had a bad day or week, figure out what happened to throw you off track (maybe it was a busy or stressful week), and then make a plan to overcome the problem if it happens again. For example, if you had a tough week at work that required you to work late and miss the trip to the gym, make a plan to be proactive the next time work gets busy. Perhaps you make a plan to walk during your lunch break or wake up early to do jumping jacks and push-ups before heading into the office. But…whatever you do…don't give up on your goals or yourself. Review your plan and recommit yourself to those simple steps. You can even use social media to acknowledge a mistake and commit to overcoming that problem in the future. That way, you'll have a new sense of accountability and support from your friends and family.

Best wishes to you in achieving all your goals and dreams this year. And if your New Year's resolutions involve any financial or housing matters that I can help with, please call or email today. I'll be happy to help out in any way that I can. 

Why Use a Realtor?

Many people, in an effort to avoid paying commissions to a Realtor, go the For Sale By Owner route. While this may seem like an exciting challenge to homeowners, the reality can be a little bit darker. True, real estate is an exciting market to be in, but it is also one fraught with legal complications. Buying and selling can be quite stressful, especially if you don't know exactly what you are doing.

First of all, a Realtor is trained in all legal matters involved in the sale of real estate. Sometimes, these sales go smoothly, but sometimes, clauses, liens, and contingency contracts can make them very complicated. I recently heard about a couple that sold their own home. They entered into a contract with a couple that ended up having serious trouble getting financing. They ended up missing the opportunity for a quick sale while they waited in vain for the couple that made the original offer to get a mortgage loan. Once the potential buyers finally admitted defeat the couple were exhausted, and still had to deal with selling their home. It is hard to know when life is going to through you curve balls. The best thing to do is be prepared, and a Realtor comes not only trained in theoretical real estate cases, but, ideally, with a whole history of experiences from which to draw from. This makes them extremely helpful when negotiating the legal aspects of buying or selling.

Even if your home sale goes off without a hitch, all the paperwork involved can be overwhelming. What are you signing? Sometimes it's hard to tell when the language is full of legal and industry terms that the average person just isn't familiar with. A Realtor can translate these forms, helping you understand what each step in the transaction is all about.

A Realtor is connected to a whole network of other Realtors. This means that weather you are buying or selling, a Realtor can help. They have a network of other professionals to market your home to. They have clients waiting to buy homes, and colleagues with more clients, waiting to buy more homes. Some homes barely need to be marketed because there are buyers already waiting to purchase just that type of home.

When it does come time to market, a savvy Realtor has numerous tools at their disposal that the average citizen does not. Sure, there are a lot of web sites out there where real estate can be advertised, however only a Realtor can post a home on the Multiple Listing Service. Once a home is posted there, buyers from all over the world can see it, as can even more of those Realtors with clients waiting to buy.

Many people think that they can only find what they need themselves, but a good Realtor will be able to listen to your needs. A good Realtor knows the market, and knows the area, and may be able to suggest places you didn't even know existed. They are also familiar with local services, and can recommend lawyers, notaries, inspectors or even contractors that they personally know do good work.

Overall, an experienced Realtor may cost a little bit in commission, but the service they provide is worthwhile. If someone can help you not lose money, or save you a lot of time, aren't they worth what you paid them?

For more advice or for a referral to some excellent Realtors, feel free to contact me.

Why Good Clients Don't Always Give Referrals

Despite being delighted with your services and eager to share you with their friends, even good clients miss opportunities to give referrals. This is caused by entropy, inertia, and inconvenience. Basically, most clients will not inconvenience themselves to give a referral – they may postpone giving it, or forget it altogether.

Common reasons why referrals may fall through the cracks:

• The client thought of another business provider to refer (“Let me think, I believe Tony’s sister is in that business…”)
• The client had no easy way to pass contact information (“I don’t have her number on me. I’ll send it to you when I get home”)
• The client forgets to give the referral
• The referral-receiver lost or forgot about the referral
• The referral-receiver has indefinitely postponed making the contact, due to lack of time or attention, or a change in their own schedule (“I’ll do it later when I’m not busy”)
• The referral-receiver is too busy, too nervous, or misinformed to initiate contact
• Another person gave the referral-receiver another contact before they had a chance to call the business person
• The client had no incentive to give a referral

What is required to get a referral often ends up being a grand coincidence. For example - a friend asks for a referral AND the referral-giver happens to remember AND the referral-giver happens to have your business card on them. In this example, inconvenience wasn’t a problem. As soon as one of these factors is inhibited, the referral is lost.

Savvy independent business people know the value of referral business – most thrive on it. Even though customers are often delighted to give referrals, there are many that fall through the cracks because of the customer’s natural sense of avoiding inconvenience. By using Referral Marketing, marketers can improve their odds of gaining more referrals and encourage referral-giving behavior – resulting in more referral business and a better bottom line.

Contact me for more information about the program I use that allows you to "click it and forget it". Meaning, once you input your client’s information and the campaign you want them in, it will send your marketing piece to them, asking for referrals with a click of the mouse. It also sends birthdays, holidays, and their yearly review reminder for you. Allowing you more time to build your business.