Mortgage week in review

Provided to you Exclusively by Phil Jensen       Phil Jensen Senior Mortgage Consultant Amerifirst Financial Office: 480-682-6613 Cell: 602-692-7445 Fax: 480-374-6987 E-Mail: Phil@JensenTeam.com Website: www.PhilipJensen.com

For the week of Aug 23, 2010 --- Vol. 8, Issue 34

In This Issue

Last Week in Review: Change is needed in the housing and job markets. Find out what kind... and how will those steps impact home loan rates? Forecast for the Week: We’ll get reads on the housing market and the economy this week, but what direction will the reports show? View: It may take two credit reports to make a closing go right. Find out why in this week’s View.

Last Week in Review

"There is nothing wrong with change, if it is in the right direction." Winston Churchill. And certainly, seeing our economy improve is change in the right direction. But what steps will get us there... and how will those steps impact home loan rates. Here’s what you need to know. Last Tuesday, the government held a "Future of Housing Finance" conference to discuss changes needed in this area. Most participants agreed that government assistance for housing must be reduced but not eliminated. Bill Gross, from PIMCO and one of the panelists, called for a massive refinancing of certain mortgages backed by Fannie/Freddie/FHA, believing such a move would lift home prices 5% to 10% and provide a $50 Billion stimulus to the economy. I will be watching this situation closely for further developments. Home sales and the job market - two key aspects to our continued recovery - are also areas we need to see change in an improving direction. Last week, the NAHB Housing Market Index came in a bit worse than expectations and showed housing to be at a 17-month low. It can be argued that the tax credits actually hurt the housing market by not adding any sales, just pushing them up. This has now resulted in a void or softer period in the market, potentially wasting billions of dollars. Housing Starts and Building Permits were also reported lower than expected last week. Clearly, demand for housing has slowed over the past few months, due to the expiration of the Home Buyer Tax Credit and persistently high unemployment. Speaking of unemployment, awful is the only way to describe last week’s Initial Jobless Claims report. According to the report, 500,000 people filed to receive unemployment benefits for the first time, which was well higher than the lofty 475,000 expected and the highest reading since November 2009. In addition, between Continuing Claims and people receiving Emergency Unemployment Compensation or EUC, the combined total of people receiving unemployment benefits now equals 9.25 Million people. The bottom line is this: The labor market is the foundation of our economy. Job growth and confidence is the best and most sustainable way for our economy to recover. The present anti-business regulatory environment is pushing Initial Claims, a leading indicator on the health of the labor market, in the wrong direction. But home loan rates, meanwhile, continue to remain at historic low levels. Though keep in mind, inflation is the arch enemy of Bonds and home loan rates, which means it can cause both to worsen. Both the Producer Price Index (which measures inflation at the wholesale level) and the Consumer Price Index were recently reported hotter than expected. If rates do start to rise, they will likely do so quickly. 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. WHEN YOU’RE BUYING A HOUSE, THE LAST THING YOU WANT IS AN UNSUCCESSFUL CLOSING. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW FOR SOME INFORMATION THAT WILL HELP ENSURE YOUR HOMEBUYING EXPERIENCE MOVES IN THE RIGHT DIRECTION.

Forecast for the Week

More housing and job news follows this week, but will there be change in an improving direction? We’ll find out with Tuesday’s Existing Home Sales Report, Wednesday’s New Home Sales Report, and Thursday’s Initial and Continuing Jobless Claims Report. Also, on Wednesday we'll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big-ticket items that last for an extended period of time. Meanwhile, Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity. 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, last week’s weak economic news helped home loan rates hit record lows again, but volatility was rampant. I’ll be watching closely to see what this week brings. ----------------------- Chart: Fannie Mae 3.5% Mortgage Bond (Friday, August 20, 2010)

The Mortgage Market Guide View...

Credit Reports: One May Not Be Enough This summer, Fannie Mae instructed lenders that they should adopt a new policy that would include a second review of an applicant's credit report just prior to closing. Why? The answer is simple: the credit profile of a borrower may have changed between the time of the initial review of the credit report and the time of closing. How will this impact the home loan? The potential impact to a borrower who has utilized credit to make significant purchases after the initial credit report could include: A delay in closing Increase of closing costs and/or interest rate A decreased loan amount Denial of the loan That’s right, in the worst-case scenario, a change in credit could even result in a loan being denied - even after an original approval had been granted. What should homebuyers do (or not do)? In order to eliminate any possibility of potential problems before closing, anyone in the application process should use credit sparingly and make sure they adhere to the tips provided below by credit expert Linda Ferrari of Credit Resource Corp: Don't do anything that causes a red flag to be raised by the scoring system. Don't apply for new credit of any kind. Don't pay off collections or charge offs. Don't max out or over charge on your credit accounts. Don't consolidate debt onto one or two credit cards. This list is not comprehensive, but it does give you a peek into situations that could create issues and could also be contrary to some ideas you have read previously. -------------------------- Economic Calendar for the Week of August 23-27, 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 23 - August 27 Date ET Economic Report For Estimate Actual Prior Impact Tue. August 24 10:00 Existing Home Sales Jul 4.75M   5.37M Moderate Wed. August 25 08:30 Durable Goods Orders Jul 3.1%   -1.2% Moderate Wed. August 25 10:00 New Home Sales Jul 330K   330K Moderate Wed. August 25 10:30 Crude Inventories 8/21 NA   -0.818M Moderate Thu. August 26

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MMG Monthly - Views You Can Use

Provided to you Exclusively by Phil Jensen Phil Jensen Senior Mortgage Consultant Amerifirst Financial Office: 480-682-6613 Mobile: 602-692-7445 Fax: 480-374-6987 Email: Phil@JensenTeam.com Website: www.Philip.Jensen.com   For the Month of August 2010 --- Vol. 5, Issue 8     IN THIS ISSUE...           What's in a name? This month's edition is all about names. For instance, the Financial Reform bill was recently signed into law. But does this new law really reform the financial system, as the term suggests? The first article below provides a brief overview of the changes in the law. You'll also find two articles below that can help you remember names of people you meet, while protecting your own good name from identity theft! Ch-ch-ch-ch-changes - Are the new Financial Reform changes really worth singing about? It pays to have a good memory - Give your networking or job search a boost with these techniques. Q&A: Identity protection? - Follow these simple steps to make sure your identity is protected! If you have any questions or need any help at this time, just call or email to discuss your unique situation. And, please forward this newsletter to friends, family members and coworkers who may find the information helpful.     Are Financial Reform ch-ch-ch-ch-Changes Worth Singing About?           They say the only constant is change... and more change is coming! Last month, the sweeping Financial Regulation Bill was signed into law and promises to bring a wave of new changes to the financial system. But the question is: what does this change mean to you? Here's what you need to know. Generally speaking, the law calls for a new consumer protection agency and prohibits banks from taking risky bets. While those things are important, it's also important to realize that this legislation... over 2,000 pages worth... amazingly does nothing to address the core reasons for the financial collapse. Fannie Mae and Freddie Mac are completely left out of this legislation. Additionally, the credit rating agencies - which may have played the largest role in the financial collapse - also go unmentioned. In fact, when former Fed Chairman Alan Greenspan was asked about Financial Regulation, he noted that this was the first time the Fed was not asked to write a regulation of this kind. He also said that there are "unintended consequences" in every page of this bill. And one consequence we've seen already is that corporations are hoarding cash, and are somewhat stuck like a deer in the headlights due to the uncertainty that this and other pending legislation is creating. And when corporations hoard cash, they don't typically hire workers, and job creation is crucial to our recovery. What all this will mean for our economy and home loan rates remains to be seen... which is why now is the perfect time to act, while home loan rates continue to be some of the best they have ever been! If you or anyone you know would like to learn more about this exceptional opportunity, 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.     It Pays to Have a Good Memory           In today's tough job market, it can pay (quite literally) to have a good memory. That's because a good memory can help you stand out from the competition - whether you're networking and trying to remember names or researching a potential employer and trying to remember specific points. Unfortunately, many of us have trouble remembering the name of someone two minutes after we shake her hand. If that sounds like you, don't worry. you're not alone. It's actually an extremely common occurrence for many people. The good news is there is plenty of research on the subject and there are a number of simple, practical steps you can take to improve your memory now and long into the future. With that in mind, here are a couple of great tips for proactively strengthening your memory: Tip #1: Neurobic Exercise You know all about the wonderful effects aerobic exercise has on the heart, but have you heard of neurobic exercise for the brain? According to Lawrence Katz, co-author of Keep Your Brain Alive: 83 Neurobic Exercises, the best exercise for the brain is to force it to form "new patterns of association" or new pathways. In other words, challenge your brain every day. take it off autopilot and make it relearn or create new associations with the most routine activities of your day. Katz's book offers numerous examples of small changes you can make to activate your brain, including: brushing your teeth with the other hand; taking an alternative route to work; moving your wastebasket to the other side of your desk; closing your eyes while putting your key in and unlocking the front door; and changing where you and your family members sit at the dinner table. So if you feel like your memory might be starting to slip a bit, try some of these simple neurobic exercises today! Tip #2: Mnemonic Drilling There are actually three steps or stages of memorization: acquisition, consolidation, and retrieval. That means, once we acquire new information, like someone's name for instance, the way in which we consolidate that data will directly affect how well we're able to retrieve it from memory. Whether you're a visual or auditory type of learner, there are many mnemonic devices that can help you to better organize or consolidate the new information that you need to recall. Here's an example of simple steps that might help: First, associate the data you want to remember with common images. For instance, let's say you meet someone named Jennifer Green. Imagine Jennifer playing golf, or picture her wearing all green clothes, or imagine her face painted completely green. Second, think of associations you can use to help you remember this person. For instance, link Jennifer to the quality that best fits her personality (use alliteration and rhymes whenever possible): Jolly Jennifer Green. Finally, connect sound to your memory by saying the name aloud. Do this regularly and, before you know it, you'll never forget anyone's name again! And that can give you a nice advantage in job interviews and networking.     Q&A: Identity Protection?           QUESTION: How can you protect yourself from identity theft? ANSWER: According to statistics released by the U.S. Department of Justice, about 1.6 million households experience theft of existing accounts other than a credit card (such as a banking account), and 1.1 million households discover misuse of personal information (such as their social security number) annually. Here are some important tips for keeping your information safe and sound: Just the facts - Rather than give unnecessary information (like your date of birth and income level) when you fill out things like warranty cards or supermarket club cards, start sharing only what's really necessary in every situation. Navigating the net - Never post your address or your full date of birth on any social networking sites because both are pieces of information needed to steal your identity. Also, when applying for a job, thoroughly investigate companies before you submit your resume and check the privacy policies of any online job boards to make sure they won't sell your information. Number no-nos - Never keep your Social Security number in your wallet, glove compartment, or any other easy-to-access place. Also, never have it printed on your checks or use it as your password. Finally, if you use an online job site, never give a potential employer your Social Security number until they are ready to hire you. Shed it - When you are ready to get rid of old documents that contain important information, make sure you shred them. The bottom line is this: When it comes to your personal information, share it on a need-to-know basis only!           The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate 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 always want to make sure you are clear on all details of the home financing process. If you or someone you know are interested in purchasing or refinancing a home, give me a call today! In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: Phil@JensenTeam.com If you prefer to send your removal request by mail the address is: Philip Jensen 1910 S. Stapley Dr., Ste.209 Mesa, AZ 85204 .

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NOTE: THIS IS A CONFIDENTIAL AND PRIVILEGED COMMUNICATION. This transmission is intended only for use by the individuals or entities to which it is addressed, and contains confidential and/or privileged information. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please send a reply to us and permanently delete the e-mail from your computer.

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Fw: MMG Weekly: Economy 'Laboring' Towards Recovery

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From: MMGW
Date: Sun, 8 Aug 2010 09:38:40 -0700
To: Phil Jensen
Subject: MMG Weekly: Economy 'Laboring' Towards Recovery

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Provided to you Exclusively by Phil Jensen

Phil Jensen
Senior Mortgage Consultant
Amerifirst Financial
Office: 480-682-6613
Cell: 602-692-7445
Fax: 480-374-6987
E-Mail: Phil@JensenTeam.com
Website: www.PhilipJensen.com

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For the week of Aug 09, 2010 --- Vol. 8, Issue 32

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.

[http://www.mmgweekly.com/templates/mmgweekly/spe_chart/Top_Chart_8_9_10.jpg]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.

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

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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.

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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

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 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.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: Phil@JensenTeam.com

If you prefer to send your removal request by mail the address is:

Philip Jensen
1910 S. Stapley Dr., Ste.209
Mesa, AZ 85204

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Success Source, 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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NOTE: THIS IS A CONFIDENTIAL AND PRIVILEGED COMMUNICATION. This transmission is intended only for use by the individuals or entities to which it is addressed, and contains confidential and/or privileged information. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please send a reply to us and permanently delete the e-mail from your computer.

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