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Gabe's Blog

Independence Day Holiday Message

July 6th, 2010 11:27 AM

In This Issue

Independence Day

I hope you and your family enjoyed the Independence Day holiday weekend.

Due to the July 4th holiday, the next full issue will arrive on Monday, July 12. In the meantime, check out the article below about protecting yourself and your family from the sun as you celebrate the summer.

The Mortgage Market Guide View...

Protecting Yourself from the Sun

Walk along a beach or spend a day at the pool and it will quickly become evident that a "golden tan" is often considered an outward indicator of one's overall health or fitness. Medically speaking, though, these are very dangerous sentiments - especially when you consider the potential ramifications of unprotected exposure to the sun.

THE FACTS?

According to the CDC, exposure to ultraviolet (UV) rays is the biggest factor in developing skin cancer. And, cases of skin cancer have increased at a rate of roughly 3% every year, making it the most common type of cancer in the United States.

Malignant melanoma, the most serious form of skin cancer, is also the most common type of cancer for women between the ages of 25 and 29. Even though it is curable if caught early, when left unattended it can spread to other organs, most commonly the lungs and the liver.

THE FIX?

The very best thing you can do to protect yourself from the sun is to avoid intentional sunbathing altogether. However, for those who work in the sun, enjoy outdoor sports, or insist on obtaining a tan, there are a few things you can do to help your cause.

First, invest in a quality sunscreen. The best brands contain a UVA blocking ingredient known as avobenzone or Parsol 1789. Look for products with an SPF of at least 15 for the body, and 30 for the face. The bottom line is the more SPF the better, especially for fairer-skinned people. Apply sunscreen 20-30 minutes before any activity in the sun - allowing time for absorption - and reapply it every two hours or more frequently if you are swimming or partaking in strenuous activities.

Make sure you wear sunglasses with UV protection, since the rays have been linked to everything from cataracts to skin cancer of the eyelids. Hats and protective summer-weight clothing are also a must. For headwear, a wide-brimmed hat works much better than a baseball hat.

Also, make sure you take breaks (especially during mid-day) out of the sun. Seeking refuge in the shade for 5 to 10 minutes every hour helps maintain skin temperature.

Finally, do NOT bring an infant into the sun. Infants under six months are NOT supposed to wear sunscreen at all, which means they are even more susceptible to sun damage.

FINAL THOUGHTS ON SKIN?

It is believed that roughly 80% of skin change associated with aging is actually due to sun exposure. To help protect your skin, practice the tips above. In addition, perform regular self-checks for abnormal moles and freckles ? and see a doctor at least once a year so he or she can do the same.

For more information, visit www.skincancer.org or www.cdc.gov/cancer/skin.

Economic Calendar for the Week of July 05 - July 09

Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Tue. July 06
10:00
ISM Services Index
Jun

55.5

55.4

Moderate

Wed. July 07
10:30
Crude Inventories
7/3

NA

-1.90M

Moderate

Thu. July 08
08:30
Jobless Claims (Initial)
7/3

NA

472K

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.

Posted by Gabe Bodner on July 6th, 2010 11:27 AMPost a Comment (0)

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Gabe's Weekly Market Update: Uncertainty Dominates the Markets...What Does it Mean to You?

July 26th, 2010 10:07 AM

In This Issue

Last Week in Review: The Fed and "uncertainty" dominated the news last week... what was all the buzz about?

Forecast for the Week: What should you be on the look out for this coming week?

View: 10 things you overpay for... and how you can start saving today!

Last Week in Review

"UNCERTAINTY AND MYSTERY ARE THE ENERGIES OF LIFE." And while the Bond market may agree with R.I. Fitzhenry's words about uncertainty, most investors in the Stock market don't... just ask Fed Chairman Ben Bernanke. Last week, Mr. Bernanke testified before the Senate and House Banking Committees, making several cautious comments on the state of the labor market and inflation, as well as stating that the Fed would be ready to take action should economic conditions worsen. But the comment that spooked Stocks and helped Bonds was when Mr. Bernanke said the economic outlook is "unusually uncertain." Stocks hate uncertainty but Bonds usually perform well as a safe haven, so Bonds and home loan rates improved upon the utterance of these words.

Mr. Bernanke also stated that one way to normalize the size and composition of the Federal Reserve's securities portfolio would be to sell some holdings of agency debt and Mortgage Backed Securities. And an article in the New York Times concurred, stating that the Fed?s MBS holdings are already problematic and put the Fed in a tough position where it may find itself having a conflict of interest - and here?s why.

While inflation is subdued for now, it?s only a matter of time before the Fed will need to hikes rates in order to keep inflation controlled. But any hike in rates would cause the Fed to lose significant value on their Mortgage Backed Security holdings. So the tough question is... how will the Fed act, in light of this conflict?

Remember, the Fed purchased $1.25 Trillion worth of Mortgage Bonds, as well as several hundred Billion in Treasuries. Those purchases helped drive rates down towards historic low levels - and yet the housing market is still not entirely healthy. So this also begs the question, what would cause a different result? One perspective is that the Fed - like many in Washington - missed the point. The problem is not that rates need to be lower. Many individuals already want to purchase or refinance at today?s low rates, but are unable to do so because of tighter underwriting guidelines, as well as low valuations. A perfect example is the "no income verification" loan - which has been cast in a negative spotlight as a "liar loan" and virtually eliminated. But there has been a good track record for those loans in the past when underwritten properly. If the government were to direct some resources towards reestablishing some of these more reasonable lending tools, the results m ight be better.

Instead - the sweeping Financial Reform Bill was signed into law last week, and the implications of this 2,300-page legislation are sure to be broad. Former Fed Chairman Alan Greenspan himself said that every page appeared to be loaded with unintended consequences... so as this legislation is analyzed and dissected, you can be assured I?ll be keeping a close eye on the impacts it may have and will keep you informed.

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

Fed Chair Bernanke Calls the Outlook "Unusually Uncertain"

But the Federal Reserve and Financial Reform are only part of the picture. Mortgage Bonds and home loan rates are also impacted by global financial news.

In fact, just last week the Bank of Canada raised rates by .25%, up to .75%... and this could have a major implication on our Bonds. Part of the reason home loan rates have dropped so much has been the currency trade, where the Euro has weakened against the Dollar. Europeans have been taking advantage of the currency trade, and parking money in the US - much of which is in our Bonds. But now, with Canada?s improving economy and slightly higher rate environment, their yields might not only be more attractive for Europeans, but their currency may provide a more lucrative option as well. And the sell-off in our Bonds early last week could have been somewhat due to traders anticipating this move by the Bank of Canada.

Another story of uncertainty is developing in China. China's reserves, which are held mostly in US Treasuries as well as Mortgage Backed Securities, stand at $2.5 Trillion. But last quarter marked the first time in a long time that these holdings did not increase. Does this mean that China is slowing their US debt purchases? I will be keeping close tabs on this because a slowdown in US debt purchases from China could adversely impact the Bond market, as their purchases have also contributed to the low rate environment in the US.

THESE BIG-PICTURE DEVELOPMENTS IMPACT THE MARKETS AND, IN TURN, YOUR FINANCIAL SITUATION. BUT EVERYDAY PURCHASES CAN ALSO DRAIN YOUR HOUSEHOLD BUDGET. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW BELOW TO LEARN HOW YOU CAN STOP OVERPAYING... STARTING RIGHT NOW.

Forecast for the Week

A number of reports which have the potential to move the markets are coming this week, and we?ll start off with a dose of housing news right away Monday morning with the New Home Sales report. This report comes after last week?s worse-than-expected report on Housing Starts, so the markets will be paying close attention to this report.

The manufacturing sector of the economy will also be in the spotlight this week. On Wednesday, Durable Goods Orders will be released. Then Friday brings the Chicago PMI, which surveys more than 200 Chicago purchasing managers about the manufacturing industry and is a good indicator of overall economic activity.

On Thursday, we?ll see another weekly read on Initial Jobless Claims. Last week, Initial Jobless Claims rose by 37,000 to 464,000, which was above the 445,000 that was expected. Overall, unemployment is still disappointingly high.

The news heats up on Friday when we get a look at the Gross Domestic Product (GDP) and GDP Chain Deflator for the second quarter. The Chain Deflator is a key inflation measure included in the GDP Report. And since inflation is the archenemy of Bonds and home loan rates, this report could be a market mover.

Finally, there are two reports on tap this week regarding how consumers feel about the economy with the Consumer Confidence report on Tuesday and the Consumer Sentiment Index on Friday. In addition, the Treasury Department will auction $38 Billion in 2-Year Notes on Tuesday, $37 Billion in 5-Year Notes on Wednesday, and $29 Billion in 7-Year Notes 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. As stated above, uncertainty in the US and abroad has been impacting the markets, which has helped Mortgage Bond prices climb steadily higher since April, as you can see in the chart below. And this means that home loan rates have moved steadily lower.

This presents an unbelievable opportunity for people looking to purchase or refinance a home. It only takes a few minutes to see how you or someone you know can benefit from today?s low rates. Even if you?re not sure you can refinance, it doesn?t hurt to conduct a quick review. Please call me today before this opportunity passes by.

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

Chart: Fannie Mae 4.0% Mortgage Bond (Friday, July 23, 2010)

The Mortgage Market Guide View...

10 Things We Overpay For:

You Can Save Big by Buying Cheap Alternatives Instead

By Joan Goldwasser, Kiplinger.com

Does the avalanche of news about layoffs, business losses and a declining stock market have you looking for ways to cut your spending so you can beef up your savings? We're here to help, with suggestions for less-expensive alternatives to ten everyday purchases (for more ideas, go to www.BillShrink.com, which tracks cell-phone plans and credit cards).

Afternoon snacks. Do you munch protein bars as a healthier alternative to a chocolate pick-me-up? You could easily be paying more than $2 per bar and consuming just as much sugar as you would with your favorite candy bar. Stock up on fruit for a fraction of the cost when you do your grocery shopping. You'll be fitter and save a bundle.

Bottled water. Yes, it's important to drink water every day. But picking up the bottled variety with your lunch is an expensive way to stay hydrated. Rather than spend $2 a day for water, buy a pitcher and a filter for about $20 and drink as much as you want for pennies a glass.

A caffeine fix. Can't get through the day without at least one cuppa Joe? Stopping at Starbucks or Dunkin' Donuts can set you back as much as $1.65 per cup. Splurge on a pound of gourmet coffee for $8 to $13 and you can make 40 cups for about 20 cents to 33 cents each.

Favorite tunes. Do you rush out to buy the latest CD by your favorite group even though there are only one or two songs you really like? Instead of paying up to $18 for the CD, download those cuts you want from iTunes for 99 cents each, or from Amazon for as little as 79 cents.

A night at the movies. An evening for two at your local theater costs an average of about $20, including the popcorn - and closer to $30 in major cities. And that doesn't even count the babysitter. For just $5 a month, you can watch two movies from Netflix or pay $9 for unlimited viewing. If you're willing to wait a little longer for new releases, borrow them free from your local library. (See Cut the Cable Cord for other inexpensive entertainment options.)

Fresh flowers. A bouquet of spring blooms brightens up a room and your mood. But purchasing it from a florist at $25 and up can quickly put a dent in your budget. Check out your local grocery store, which offers a selection of seasonal bouquets for $5 to $10.

Fruits and veggies. Sure, precut vegetables and salad mixes that are washed and bagged save a little time. But you'll pay for the convenience. Broccoli florets and sliced peppers cost $6 per pound, compared with one-third to one-half the price for the uncut versions. Lettuce varieties that are pre-washed and bagged sell for $5.98 a pound. But it takes just minutes to wash and spin dry enough arugula for your evening salad, and you'll pay one-third as much. Buying whole strawberries rather than sliced ones that are prepackaged cuts the price by 75%.

Credit-card fees. Every month, millions of credit-card customers pay their bills late, and they're assessed as much as $39 each time. Set up an automatic debit and you'll never incur another late fee.

ATM fees. Each time you use an out-of-network ATM you pay an average of $3.43. Do that once a week and you'll rack up almost $180 in ATM fees every year. Avoid those charges by selecting a bank with a large ATM network or an online account that reimburses your ATM fees - such as the eOne no-fee account from Salem Five Direct bank. Another alternative: Get cash back at the grocery store.

Fax and mail services. Instead of paying FedEx $1.49 to fax one page, sign up to send free faxes from a provider such as faxZero or K7.net. Save on shipping with the U.S. Postal Service's priority mail service. You'll pay just $4.95 to mail an envelope or small box anywhere in the U.S., and your parcel is likely to arrive within two days. Larger packages cost $10.35. That saves at least 50% compared with UPS's two-day service, the cost of which varies by weight and distance.

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

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

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 July 26 - July 30

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Mon. July 26	10:00	New Home Sales	Jun	310K		300K	Moderate
Tue. July 27	10:00	Consumer Confidence	Jul	51.5		52.9	Moderate
Wed. July 28	08:30	Durable Goods Orders	Jun	1.0%		-0.6%	Moderate
Wed. July 28	10:30	Crude Inventories	7/24	NA		0.360M	Moderate
Thu. July 29	08:30	Jobless Claims (Initial)	7/24	464K		464K	Moderate
Thu. July 29	02:00	Beige Book	Jul				Moderate
Fri. July 30	08:30	Auto Sales	Q2	1.1%		1.1%	Moderate
Fri. July 30	08:30	Gross Domestic Product (GDP)	Q2	2.5%		2.7%	Moderate
Fri. July 30	08:30	Employment Cost Index (ECI)	Q2	0.5%		0.6%	HIGH
Fri. July 30	09:45	Chicago PMI	Jul	56.5		59.1	HIGH
Fri. July 30	10:00	Consumer Sentiment Index (UoM)	Jul	67.5		66.5	Moderate

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.

Posted by Gabe Bodner on July 26th, 2010 10:07 AMPost a Comment (0)

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Gabe's Weekly Market Update: Washington All A-Twitter About Financial Reform

July 19th, 2010 9:43 AM

In This Issue

Last Week in Review: Washington has done it again, passing major financial reform legislation. Find out what this will mean for our economy... and the great home loan rates we've been seeing.

Forecast for the Week: A double dose of housing news is in store, and earnings season continues with reports from Goldman Sachs, Morgan Stanley, and more.

View: The web is all a "twitter" these days. Find out what the big deal is, and how "tweeting" can help you or your business.

Last Week in Review

They say the only constant is change... And more change is coming, as the sweeping Financial Regulation Bill was passed by the Senate last week and will be signed by President Obama in short order to become law. So what does this change mean... and how will it impact home loan rates? Here's what you need to know.

The Bill 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. The credit rating agencies, who may have played the largest role in the financial collapse, also go unmentioned.

In fact, when former Fed Chairman Alan Greenspan was asked about the Financial Regulation Bill, 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.

In other news, there hasn't been much change on the inflation front, which is good news for Bonds and home loan rates. Remember: inflation erodes the return of an asset like a Bond... so inflation is the arch enemy of Bonds and home loan rates. Both the Producer Price Index - which measures inflation at the wholesale level - and the Consumer Price Index for June showed that inflation continues to remain tame.

However, two changes that would be welcome are in the retail sales and manufacturing areas. Retail Sales for June came in lower than expected for the second month in a row. Although details of the report were mixed, the overall indication is that consumers and businesses remain cautious on purchasing big-ticket items. In addition, the Empire State Manufacturing Index and Philly Fed Index showed that factories and manufacturing still look very sluggish overall. Changes for the better in both of these areas will be reflective of our economy growing stronger, and these are things to watch for moving forward.

All in all, the news from last week helped Bonds and home loan rates reach record levels again, and they ended the week about .125 percent better than where they began.

GROWING YOUR BUSINESS IS ALWAYS CHANGE IN THE RIGHT DIRECTION. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW FOR AN ARTICLE FROM KIPLINGER.COM ON "TWEETING" YOUR WAY TO SUCCESS.

Forecast for the Week

There's a double dose of housing news this week. Tuesday's Housing Starts and Building Permits Reports will give us an update on the health of the new construction sector of the housing market, while Thursday we will get a read on Existing Home Sales.

Thursday also brings another Initial Jobless Claims Report, and any changes for the better in this area will be welcome! In fact, last week, the National Federation of Independent Businesses (NFIB) reported that its monthly "Small Business Optimism" index turned weaker in June. This is important to follow, because small businesses represent an important job creation engine - and the NFIB said the decrease was "a very disappointing outcome."

In addition, earnings season continues this week and some reports to look for include IBM after the markets close Monday, Goldman Sachs before the markets open on Tuesday, and Coca Cola and Morgan Stanley before the markets open on Wednesday.

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 rates ended the week on an improving trend though they were unable to improve beyond a tough ceiling reflective of their best levels. I'll be watching closely to see what happens this week.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday, July 16, 2010)

The Mortgage Market Guide View...

"Tweets" Can Help Grow Your Business

Twitter is spreading like wildfire and companies are using it to boost sales. By Michael Doan, Kiplinger.com

You know Twitter - the social networking and microblogging service that allows people to keep in touch through "tweets" - short snippets of text sent to cell phones, BlackBerrys and PCs.

Businesses are making use of the Web format for marketing, research and customer services. Computer maker Dell sends coupons to its Twitter users. Whole Foods Market offers $25 gift cards as prizes for people who submit the catchiest messages promoting Whole Foods. Other companies send messages to foster community and build loyalty to stores and products. Uncle Sam is a player, too. The Food and Drug Administration uses Twitter to help get out the word about product recalls.

Because most Twitter messages are searchable on the Web, businesses can also use it to track customer comments and answer complaints - even offer immediate help or advice. Among firms closely tuned in to what customers are saying are Southwest Airlines, JetBlue, Comcast and Boingo, which provides Wi-Fi service at airports.

Jeremy Pepper, public relations manager of Boingo, receives and tracks all Twitter messages, blogs and other Web comments that mention the company. If, for example, someone complains to a friend about a weak Wi-Fi signal at Washington Dulles International Airport, he may get an immediate message from Pepper.

In such a case, Pepper says he'll ask: "'Where you are sitting...have you thought of moving? Which terminal are you in? Let me check to see if there are problems at the airport,'" he says. Once a problem is resolved, he'll send a tweet saying he was happy to help and "have a safe flight."

Quick, helpful responses via Twitter can go a long way to changing customers' opinions about a firm, even turning detractors into company promoters.

Keep messages informal and conversational. "Being boring is the worst thing you can do," says Jeffrey Mann, vice president of research at Gartner Group, an information technology research firm. Business tweets should be personalized; you may want to designate one or more employees to twitter on behalf of the company. Keep in mind that Twitter messages - limited to 140 characters each - are seen by people who choose to become "followers" of a business or an individual.

Twitter is a good tool to use at trade shows, helping to draw attendees to exhibitors' booths as well as press conferences and receptions hosted by a company or trade group. The Oklahoma City Chamber of Commerce, for example, puts out messages about its Schmooza Palooza networking party and trade show before, during and after the event in hopes of spreading buzz about it. Results are good; attendance has grown dramatically.

Twitter is great for small businesses, too, because it's easy and doesn't add any expense. The only cost is the employee time it takes to write and follow others' messages.

Consider registering your company's name with Twitter, even if you don't expect to use it. It'll help prevent misuse by someone else. Go to www.twitter.com.

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

Economic Calendar for the Week of July 19-23, 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 July 19-23, 2010

Economic Calendar for the Week of July 19 - July 23

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Tue. July 20	08:30	Building Permits	Jun	575K		574K	Moderate
Tue. July 20	08:30	Housing Starts	Jun	570K		593K	Moderate
Wed. July 21	10:30	Crude Inventories	7/17	NA		-5.06M	Moderate
Thu. July 22	08:30	Jobless Claims (Initial)	7/17	445K		429K	Moderate
Thu. July 22	10:00	Existing Home Sales	Jun	5.04M		5.66M	Moderate
Thu. July 22	10:00	Index of Leading Econ Ind (LEI)	Jun	-0.4%		0.4%	Low

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.

Posted by Gabe Bodner on July 19th, 2010 9:43 AMPost a Comment (0)

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Gabe's Weekly Market Update: News from Overseas Helps Stocks...and a Special Video View

July 12th, 2010 10:44 AM

Gabe Bodner

Your Financial Consultant for Life!

The Gabe Bodner Team

Phone: (408) 426-4416

Fax:: (866) 275-0026

Gabe@BayAreaHomeFinancing.com

www.BayAreaHomeFinancing.com

In This Issue

Last Week in Review: News from "over there" helps Stocks over here.

Forecast for the Week: Manufacturing and inflation news heat up the headlines... and could rock rates.

View: What do you need to know about your gas and electric bills? Special Video View!

Last Week in Review

"Over there... over there..." The old patriotic song hit it on the head, in terms of what has been driving market action lately... news from overseas. In the absence of US economic reports last week, Stocks received some help from headlines "over there." Late last week, the European Central Bank (ECB) left interest rates at a record low - which wasn?t really a surprise, given the sharp economic slowdown and uncertainty in Europe.

But in a separate briefing, ECB Executive Board member Juergen Stark stated that "the worst of the sovereign debt crisis seems to be over." He went on to say that tensions within the financial markets have "calmed down" as the enormous $442 Billion collection of one-year loans by the ECB went without any problems. Although the Stock market may benefit from such calming commentary, the reality is the worst may not be over yet. In fact, rumors are surfacing that Italy may be the next country to reveal debt problems - making this a story to continue watching.

-----------------------
European Central Bank and Stress Test News Helped Stocks

There was also a lot of talk overseas last week about bank stress tests - and the positive buzz helped Stocks around the globe move higher. Similar to what took place in the US a couple of years ago, these stress tests may provide some transparency and help differentiate which financial institutions are strong - so they're not lumped in with some of the more troubled ones.

Although the official reports will not be released until July 23rd, French Finance Minister Christine Lagarde indicated last week that the final results will show that European banks are "solid and healthy." When stress tests were conducted on the US banks, the positive results helped boost financial Stocks nearly 40% over the following several months. It is possible that favorable results from the European stress tests could bolster confidence in the Eurozone, which would unwind some of the trading activity that has taken place during the past two months - that being the flood of money out of Europe into the US and purchasing our debt securities and Bond instruments, including Mortgage Bonds. If this starts to reverse, home loan rates will worsen... and this can happen very quickly. I?ll be watching this closely - but if you have been waiting to get in touch regarding taking advantage of still-historic low home loan rates... don?t wait!

ECONOMIC NEWS FROM EUROPE ISN'T THE ONLY HOT STORY THAT DESERVES YOUR ATTENTION. THE TEMPATURE HAS SOARED LATELY ACROSS THE US, SCORCHING THE NATION AND PROMPTING MANY PEOPLE TO REVIEW THEIR ENERGY USE - AND ITS IMPACT ON THEIR BUDGET. CHECK OUT THE SPECIAL MORTGAGE MARKET GUIDE VIDEO VIEW BELOW TO LEARN HOW YOU CAN PERFORM A HOME ENERGY AUDIT.

Forecast for the Week


	Last week's economic calendar was very light; but this week, we?ll see the exact opposite as reports flood the headlines near the end of the week. Along with more news coming from overseas... the week's action could cause home loan rates to change trend. Bond prices have been rocketing higher with home loan rates moving lower... but history tells us that a reversal is in store - it's just a matter of when. On Wednesday, we?ll see the Retail Sales figures for June, as well as the Meeting Minutes from the past Fed meeting. Although the Fed hasn't made any major policy changes as of late, the meeting minutes are still closely watched by the markets for any stray comments or discussion on matters such as inflation or the "extended period" language regarding rates. Things heat up on Thursday with a number of reports on manufacturing and inflation. The Philadelphia Fed Index and the Empire State Index will both be released Thursday morning - giving us a detailed look at the manufacturing sector. We'll also see the latest reports on Capacity Utilization and Industrial Production, as well as the Producer Price Index (PPI), which measures inflation at the wholesale level. The day after the PPI is reported, we?ll see the Consumer Price Index (CPI), which measures inflation at the consumer level. Remember, inflation is the archenemy of Bonds and home loan rates, so it will be important to see what these reports reveal. We'll also see the weekly Initial Jobless Claims report on Thursday morning. Last week's number came in better than expected and showed an improvement over the previous report, which gave the financial markets a glimmer of hope. It also gave Bond investors an excuse to take a little profit off the table - since Bonds have been priced for perfection, and any blip in the economic data is providing reason to preserve profits. In addition to those reports, the Treasury Department will auction $69 Billion this week. The auctions will consist of $35 Billion in 3-year Notes on Monday, $21 Billion in 10-year Notes on Tuesday and $13 Billion in 30-Years on Wednesday. The good news is, the $69 Billion total represents the lowest offering in a year - and when this "low" figure was announced last week, it helped Bond prices improve. 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. And as you can see in the chart below, Mortgage Bonds have been inching higher - helping home loan rates move lower - and making this an ideal time to review your current loan or purchase a new home! If you or someone you know wants to see how these rates might help your situation, please call me today. Even if you aren't sure if you can refinance or buy - get in touch, and let's discuss the possibilities. Such unbelievable low rates will not last forever. ----------------------- Chart: Fannie Mae 4.0% Mortgage Bond (Friday, July 9, 2010)

The Mortgage Market Guide View...

Home Energy Audit

With 100-degree temperatures scorching the nation lately, staying cool and comfortable has been especially important this month. At the same time, no one wants to pay more than they have to for their gas and electric bills. Check out this video from Kiplinger.com to learn how you can perform a home energy audit.

Economic Calendar for the Week of July 12 - July 16

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Tue. July 13	08:30	Balance of Trade	May	-$40.3B		-$40.3B	Low
Wed. July 14	08:30	Retail Sales	Jun	-0.3%		-1.2%	HIGH
Wed. July 14	08:30	Retail Sales ex-auto	Jun	-0.1%		-0.8%	HIGH
Wed. July 14	10:30	Crude Inventories	07/10	N/A		-4.96M	Moderate
Wed. July 14	02:00	FOMC Minutes					Moderate
Thu. July 15	08:30	Empire State Index	Jul	18.5		19.57	Moderate
Thu. July 15	08:30	Core Producer Price Index (PPI)	Jun	0.1%		0.2%	Moderate
Thu. July 15	08:30	Producer Price Index (PPI)	Jun	0.1%		-0.3%	Moderate
Thu. July 15	08:30	Jobless Claims (Initial)	07/10	449K		454K	Moderate
Thu. July 15	09:15	Industrial Production	Jun	0.2%		1.3%	Moderate
Thu. July 15	09:15	Capacity Utilization	Jun	74.2		74.1	Moderate
Thu. July 15	10:00	Philadelphia Fed Index	Jul	8.6		8.0	HIGH
Fri. July 16	08:30	Core Consumer Price Index (CPI)	Jun	0.1%		0.1%	HIGH
Fri. July 16	08:30	Consumer Price Index (CPI)	Jun	0.0%		-0.2%	HIGH

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.