Home and Wealth Newsletter - 11-9-11

Cut your electric bill 10% without ever noticing it!PLUS...24 tools every homeowner needs.

Most people don't know that TVs, DVD players, game consoles, computers and chargers for cell phones and other electronic devices can draw energy 24/7, even when idle.

The typical American home has 40 of these electronic devices, continuously drawing power. The U.S. Department of Energy's Lawrence Berkeley Lab says they account for almost 10% of home energy use. Here are some easy ways to cut this cost.

Unplug After Charging. The Environmental Protection Agency (EPA) says one of the best ways to cut costs is to simply unplug devices as soon as they're charged. That's because standard chargers keep feeding power to a device after it's fully charged. They also draw small amounts of energy even when no device is attached!

Set on Energy Saving. Configure the energy settings on computers and monitors so they power down after you stop using them. The EPA says these setting could save up to $85 a year.

Check Standby Power Ratings. Choose home appliances, like microwaves and cordless phones, with the lowest standby-power ratings. These ratings measure how much energy a device uses when idle. You can look them up at http://www.eere.energy.gov/.

You can also buy energy saving chargers and power strips with automatic shut-offs. But be careful. They all cost money and may save only a few dollars a year, versus the charger you're using that just needs to be unplugged when it's finished.

2 DOZEN TOOLS TO SAVE YOU MONEY

You can save money on little jobs around the house by doing them yourself. Here are the tools to keep handy:

• 16-ounce rip hammer. Heavy enough to drive big nails, light enough to control. Straight claw can pull nails or rip out a wall. Fiberglass or steel handle, should feel well balanced.
• 25-foot tape measure with 1-inch blade. Extends without buckling, important when working alone.
• 4-in-1 screwdriver. Gives you large and small flat-head bits and large and small Phillips-head bits. 
• 4-foot spirit level. Good size for putting up shelves.  
• Line level or torpedo level. Better for smaller jobs, like hanging pictures 
• 6-inch adjustable crescent wrench for tight spaces. 
• 14-inch adjustable crescent wrench for more leverage.
• Adjustable channel-lock pliers for nuts and shower heads.  
• Lineman's pliers for cutting and twisting wire.  
• Needle-nose pliers for fine work.
• Vise grips to also use as clamps. 
• Utility knife. To mark wood, score and cut drywall and other tasks. Blade retracts or folds into handle.
• 14-volt lithium battery powered drill. Works as a power screwdriver too, if you get screwdriver bits along with the twist bits.
• 1-inch putty knife for filling nail holes. 
• 6-inch drywall knife for patching wall dings.
• 9-inch paint roller frame with disposable roller covers.
• Paint tray 
• 2 1/2-inch angled brush
• 5-in-1 painter's tool (blade for scraping, putty remover, spreader, 1/2-round cutout to remove paint from rollers; sharp point to open cracks for patching).
• Round-point garden shovel 
• Flat-edge shovel
• Rake
• Hand-held spade
• Hedge clippers

All of this costs around $200, which you could save on your first job.

Remember, we're always here to answer any questions.... Have a great day!

PS With mortgage rates low and homes super affordable, many people are upsizing, downsizing or refinancing. Please call or email us now to discuss your situation.

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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.

Inside Lending Newsletter - For the week of 11-7-2011

>> Market Update


QUOTE OF THE WEEK..."It all will come your way, once you understand that you have to make it come your way, by your own exertions."--Ben Stein

INFO THAT HITS US WHERE WE LIVE...Last week, more signs appeared that things are coming our way in housing. Wednesday the Census Bureau reported that the nation's home ownership rate moved up in the third quarter to 66.1%, slightly ahead of the prior quarter. Some commentators feel the three-year decline in home ownership might be starting to bottom out. Home ownership may have been encouraged by rising rents, with the vacancy rate now up to 9.8%.

The National Association of Realtors (NAR) chimed in with a forecast that existing home sales should be up 1% this year, then up another 4.3% next year. Although the median price will fall slightly this year, it's predicted to rise 2.6% in 2012. New home sales, after dropping 4.7% this year, are projected to rise 21.3% in 2012. And this year's 1.8% price hike will be followed by a 3.8% gain next year. Let's hope they're right.


BUSINESS TIP OF THE WEEK...Passion counts for a lot. The relentless intensity and commitment you need to succeed come from enjoying what you do and believing it's worthwhile.


>> Review of Last Week


CLASSIC GREEK DRAMA...The European Union's efforts to avert a Greek tragedy featured a soap opera produced by the Greek government. One day they announced the EU bailout proposal would be put to a vote by Greek citizens, the next day opposing parties agreed to accept it. This melodrama pushed stock prices down, up, down, and after posting gains four weeks in a row, the S&P 500 scored a 2.5% weekly loss. The Fed also contributed, issuing a policy statement citing "a moderate pace of economic growth over coming quarters" and predicting "the unemployment rate will decline only gradually."


Friday's October Jobs Report revealed employment levels consistent with weak-to-moderate economic growth. Just 80,000 new jobs were added in October, but prior months were revised upward and the unemployment rate edged down from 9.1% to 9.0%. ISM Manufacturing and Services indexes showed business still growing, although very slowly. Consumers are doing their part, with weekly chain store sales UP 3% for the year by one survey and UP 5.2% by another.


For the week, the Dow ended down 2.0%, to 11983; the S&P 500 was down 2.5%, to 1253; and the Nasdaq slipped 1.9%, to 2686.


Investors worried about the European debt situation flocked to the bond market in droves. Yields and mortgage rates edged down, as bond prices escalated. The FNMA 3.5% bond we watch ended the week up 1.79, at $102.05. National average mortgage rates dropped again, according to Freddie Mac's weekly survey, and remain at very low levels.


DID YOU KNOW?...This week's University of Michigan Consumer Sentiment index is a survey of people's feelings about their financial situation and the economy. The index was normalized to 100 in 1964.


>> This Week’s Forecast


VERY QUIET ON THE ECONOMIC NEWS FRONT... Following last week's Fed meeting and employment report, this week's sparse economic news provides a nice breather. Initial Unemployment Claims should stay near the 400,000 level. The September Trade Balance is forecast to hold steady, with imports about $45 billion ahead of exports. Michigan Consumer Sentiment is expected to improve.


>> The Week’s Economic Indicator Calendar



Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.


Economic Calendar for the Week of Nov 7 – Nov 11

>> Federal Reserve Watch



Forecasting Federal Reserve policy changes in coming months...Economists do not see a change in the Funds rate through mid-2013. A dramatic rise in inflation could alter that of course. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.


Current Fed Funds Rate: 0%–0.25%

Probability of change from current policy:

 
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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.

 

Employment Report Preview and More - 11-3-11

Before we get into the Employment Report “guess,” I’d like to take a minute to bring a couple of items to your attention. First let’s talk about GMAC and their decision to exit or shall we say “scale back” the correspondent channel. 3rd Quarter losses of 210 mil largely due to a pre-tax loss of 471 mil on mortgage servicing rights (MSR) did the damage. Plans are that they will continue with the Jumbo platform but for how long the next few quarters will tell. We are seeing a reduction in mortgage servicing values, primarily due to Basel 3 and how it will effect capital requirements with respect to MSR. No one in the industry wants to see any investor leave the market. B of A started the exit and now doings at GMAC. Now onto the Big Daddy release for tomorrow, the Employment Report for October. Street expectations are as follows:



1) Non-Farm payrolls – Plus 95K
2) Private payrolls –Plus 120K
3) Unemployment rate – 9.1%
4) Average hourly earnings - .2
5) Average hourly workweek – 34.3 (who really works 34.3 hours a week?)


We see manufacturing to improve slightly after two months of decline given the positive regional surveys of late. Another factor on the plus side is that the survey weeks used in the calculation have improved, falling from an average of 428K in September to 404K in October (Weekly Unemployment). Goods producing industries have slipped a little and should be a drag on the data while the Service Producers sector should see a slight uptick. Call the two a net neutral. Government jobs will be a negative as layoffs continue at both the state and federal level. ADP projected new jobs of 110K, but at the same time we feel that B of A and others who announced layoffs last month will start to show up this month. All in all, our bias is close to consensus at plus 100K. We see the Unemployment rate holding steady at 9.1% but would not be surprised to see a 9.0% print as many have left the job search world and consequently not counted as unemployed. The fear of a much higher number seems minimal, but just the same, it would add to already improving economic data and probably push the 10 year note back towards 2.20% and pinch our mortgage pricing. A weak or “as expected” number will hold pricing steady or slightly improve as the focus will go back to Greece. So what are others saying:


1) MF Global (now in BK) Plus 75K at 9.1%
2) UBS – Plus 95K at 9.0%
3) JP Morgan – Plus 95K at 9.1%
4) Barclays – Plus 105K at 9.1%
5) Nomura – Plus 130K at 9.0%
6) Wells Fargo – Plus 70K at 9.1%

 Currently the market is a volatile piece of work, down 15/32’s on the 10 year to yield 2.06% with MBS off 11/32’s.


Buckle up and stay tuned for another wild Friday.


Scott Eggen
SVP - Capital Markets
PrimeLending, a PlainsCapital Company
18111 Preston Road, Suite 900
Dallas, TX 75252
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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.

Inside Lending Newsletter - For the week of 10-24-11

>> Market Update



QUOTE OF THE WEEK..."It would be so nice if something made sense for a change."--"Alice in Wonderland," Lewis Carroll


INFO THAT HITS US WHERE WE LIVE...What didn't make sense last week was the way the media reported the latest housing data. Housing Starts were UP a strong 15% in September, hitting a 658,000 annual rate. But the media chose to emphasize that the gain was mostly from multi-family starts which shows a big trend toward renting. Actually, multi-family units also include condominiums, which do make sense for first time buyers who don't have to deal with selling. The media also skimmed over the data that single-family starts were UP almost 2% for the month and starts overall are UP over 10% versus a year ago.


Then, Existing Home Sales came in 3% lower for September. The media reports by and large neglected to mention that this slight monthly drop followed a big increase achieved in August. In addition, Existing Home Sales are UP 11.3% year-over-year in September, the third straight month this figure has risen by double digits! Inventory is also down 13% in the last year and sales seem to be stabilizing around a 4.6 to 5.0 million annual rate. Not bad at all.


BUSINESS TIP OF THE WEEK...Success takes commitment--and time. So it's super important to be both passionate and patient developing your business until you get it just right.


>> Review of Last Week


AN UP AND DOWN WEEK...Things were volatile last week on Wall Street with the proceedings even concluding in up-and-down fashion, the Dow and the S&P 500 up for the period, but the tech-heavy Nasdaq a bit down. As usual, the volatility was all Europe's fault, as a steady stream of news alternately stirred hopes and then fears that their debt problems would be solved. There will be an EU summit this weekend and another midweek, which could clear things up. Let's hope.


Over here, Q3 corporate earnings season got off to a nice start, with around 70% of the companies reporting beating estimates. One glaring exception was Apple, who missed as people waited for the new iPhone, and this dragged down the Nasdaq. PPI wholesale inflation was up sharply for the month, but the Core CPI consumer inflation the Fed follows came in lower than expected. Manufacturing continues to show no signs of recession, with the Philadelphia Fed manufacturing index and Industrial Production both UP nicely and factory capacity at its highest level since August 2008!


For the week, the Dow ended UP 1.4%, at 11809 and the S&P 500 was UP 1.1%, to 1238; but the Nasdaq slipped 1.1%, to 2637.


While most equities did well, bond prices didn't fare too badly either. The FNMA 3.5% bond we watch closed Friday at $100.31, up .08 for the week. National average mortgage rates held steady, remaining at last week's super low levels, according to Freddie Mac's weekly survey of conforming mortgage rates.


DID YOU KNOW?...Homes listed on a Friday are 18.8% more likely to be toured and 12% more likely to sell within 90 days than homes listed on other days. This is from a study of 1.2 million listings over 21 months in 16 markets nationwide.


>> This Week’s Forecast


NEW HOME SALES, PENDING HOME SALES, GDP AND THE CONSUMER MINDSET... Wednesday, New Home Sales for September, are expected to be up slightly to around a 300,000 annual rate. The next day gives us Pending Home Sales for August. This measure of signed contracts on Existing Homes can indicate actual sales a couple of months out and it's predicted to be down slightly from the prior month.


On the overall economy, we'll have the GDP Advanced reading for Q3, which ended September 30. The forecast is for an improvement, but with GDP still well below 3%, there isn't yet the strong growth needed for recovery. What consumers think of all this will be reflected in Consumer Confidence and the University of Michigan Consumer Sentiment index, which are expected to hold steady.


>> The Week’s Economic Indicator Calendar


Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.


Economic Calendar for the Week of Oct 24 – Oct 28

>> Federal Reserve Watch



Forecasting Federal Reserve policy changes in coming months...Economists are still forecasting the Funds rate to remain at its super low level for some time. The Fed said it wants to keep the rate down through the summer of 2013. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%-0.25%

Probability of change from current policy:

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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.

Inside Lending Newsletter - For the week of 10-17-11

>> Market Update



QUOTE OF THE WEEK..."When you cease to dream you cease to live."--Malcolm S. Forbes


INFO THAT HITS US WHERE WE LIVE...One dream that, happily, doesn't seem to be going away is the one we Americans have of owning our own home. In fact, in spite of all the negative news we hear about housing, the percentage of Americans who own their home is still the second highest on record, according to the Census Bureau. Even better, new research reveals that up to two million people are planning to jump into the housing market in the next two years.


The study from a business-to-business media company confirmed that Americans place a high value on homeownership across demographic groups, across the country, even where there have been larger declines in home values. Given today's prices and super low mortgage rates, 72% of homeowners and 59% of renters polled said that right now is a "good" or "very good" time to buy! Another study found that 80% of homeowners plan to buy another home and most view homeownership as one of the best long-term investments.


BUSINESS TIP OF THE WEEK...Do not cut corners in anything you do in business. Make sure your client's experience with you is an absolute delight.


>> Review of Last Week


BEST WEEK IN AWHILE...Awhile is actually more than two years, as stocks hadn't had a weekly performance this strong since July 2009. The broadly based S&P 500 was up a surprising 6% and stocks have now advanced in seven of the past nine sessions, gaining more than 11%. What made investors so upbeat was evidence that Europe is getting serious about paying its debts. Eurozone officials made a commitment to develop a full plan to stabilize the financial situation and shore up capital at European banks. This is good news for U.S. banks who have loaned money to their friends across the pond.


There was good economic news over here as well. The trade deficit remained flat for the month. Initial jobless claims ticked down for the week and the four-week moving average is well below where it was this Spring. Same-store chain store sales are up 2.8% over a year ago by one survey and up 4.8% by another. We ended the week with September Retail Sales UP 1.1% overall and UP 0.6% excluding autos. These are the strongest monthly increases since Q1 and say to some economists, if not to the media: no recession!


For the week, the Dow ended UP 4.9%, at 11644; the S&P 500 was UP 6.0%, to 1225; and the Nasdaq was UP 7.6%, to 2668.


With investors rushing back into the riskier stock market, bond prices suffered. The FNMA 3.5% bond we track closed Friday at $100.23, down .94 for the week. Plunging bond prices edged up yields and interest rates. Yet national average mortgage rates were up only a bit from last week's record levels, and are still historically low.


DID YOU KNOW?...Currency in circulation is the total amount of paper currency, coins and demand deposits held by consumers and businesses. A decline in this number can make fewer loans available, because banks don't have as many demand deposits in their reserve.

>> This Week’s Forecast


BUILDING NEW HOMES, SELLING EXISTING ONES, CHECKING UP ON INFLATION... This week gets us back to a look at the housing market. September Housing Starts are expected to be up a tad, just shy of 600,000 new homes a year. But analysts are predicting a slight dip in Existing Home Sales for September, although that figure should still hover near 5 million per year.


With the Fed's easy money policies, we have to keep an eye on inflation. For businesses, prices are forecast up slightly for the month, as measured by the Producer Price Index (PPI). The Fed's big focus is always on the Core Consumer Price Index (Core CPI). This excludes volatile food and energy prices and is projected to be up a little, but well within the Fed's target range.


>> The Week’s Economic Indicator Calendar


Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.


Economic Calendar for the Week of Oct 17 – Oct 21

>> Federal Reserve Watch


Forecasting Federal Reserve policy changes in coming months...Economists see no change in the Funds rate for the next few Fed meetings. The Fed's stated goal is to keep the rate down through the summer of 2013. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.


Current Fed Funds Rate: 0%–0.25%

Probability of change from current policy:

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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking,

Inside Lending Newsletter - For the week of 9/10/11

>> Market Update



QUOTE OF THE WEEK..."Waste of time is the most extravagant and costly of all expenses."--Anonymous


INFO THAT HITS US WHERE WE LIVE...The week before last, the Fed announced 'Operation Twist,' where they'll switch their short term bond holdings to longer term maturities. This strategy wasted no time benefitting mortgage rates. Last week, national average mortgage rates were the lowest since Freddie Mac's weekly survey began back in 1971. Some academic experts contend mortgage rates may have never been this low--even under a special loan program for war veterans in the mid-1940's. Potential borrowers should take note.


Those borrowers, however, aren't jumping into the fray in droves just yet. The Mortgage Bankers Association reported purchase applications were down 0.8% for the week and volume is still down from where it was a year ago. But, hopefully, the present super-low mortgage rates, supported by 'Operation Twist,' will get home sales and mortgage applications moving at a faster pace.


BUSINESS TIP OF THE WEEK...Do you talk too much? Instead of impressing others with your wit and insight, just say something that might interest them. You also come across as more confident when you don't try to dominate the conversation.


>> Review of Last Week


DOWN, UP, UP, UP, DOWN...That's the way stocks went for five days, but all three major indexes ended the week up nicely anyway. The negatives as usual came from across the pond, with a ratings downgrade of Italy and Spain spurring investors' fears of 'contagion.' In case you were wondering, this contagion refers to European governments' debt problems spreading to major European banks whose difficulties could then cause losses at major U.S. banks...unless the European Union steps in.


For positives, the September Employment Report showed 103,000 new jobs, with upward revisions to July and August bringing the total to 202,000. But we've averaged only 72,000 jobs a month for the last six months, which isn't enough to bring down the 9.1% unemployment rate. The services sector, providing about 85% of our jobs, still expands, with the ISM Services index on an upward, if slow, trajectory for 22 months. Even truck and rail volumes are up, two more signs of economic growth and no recession.


For the week, the Dow ended UP 1.7%, at 11103; the S&P 500 was UP 2.1%, to 1155; and the Nasdaq was UP 2.6%, to 2479.


It was a wild week for Treasuries as the Fed began 'Operation Twist' by selling over $8 billion worth of short-term maturities. Better-than-expected economic news ultimately sent prices south. The FNMA 3.5% bond we track closed Friday at $101.17, down 1.08 for the week. As reported above, national average mortgage rates hit record low levels that some think may be the lowest of all time.


DID YOU KNOW?...The Paper House in Rockport, Massachusetts, is made entirely of newspaper (215 thicknesses!). Even the furniture is made of newspaper, including a desk with reports of Lindbergh's historic flight.


>> This Week’s Forecast


FED MINUTES, RETAIL SALES, CONSUMER HEADSET...The bond market is closed Monday for Columbus Day. Tuesday, we'll see the FOMC Minutes from the Fed's September 21 meeting, which launched 'Operation Twist.' This initiative to buy longer term bonds should help keep mortgage interest rates low for a while longer.

We'll also see what kind of effort the consumer is making to help the recovery. Retail Sales are forecast up for September, while Michigan Consumer Sentiment is also expected to be on the rise.


>> The Week’s Economic Indicator Calendar


Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.


Economic Calendar for the Week of Oct 10 – Oct 14

>> Federal Reserve Watch



Forecasting Federal Reserve policy changes in coming months...The Fed has said it wants to keep the Funds rate down through the summer of 2013. So it's no surprise that economists see no change for the next few meetings. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.


Current Fed Funds Rate: 0%–0.25%

Probability of change from current policy:

 



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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.

Power Tools Newsletter - 9-28-11

Forget Blog Traffic--Get People Coming Back!


These days, many professionals are looking to build a blog community to develop their reputation, uncover new business opportunities and grow revenues. What this comes down to is using a blog to build meaningful business relationships.


People think the best way to grow their blog is to simply focus on driving more traffic there. So they spend lots of time and effort on:

• SEO keyword research and tools
• Writing posts littered with keywords to pull in the most search visitors
• Dreaming up a promotion to make a post catch fire (a long shot at best)

Problem is, the traffic-building approach doesn't actually build your blog community over the long term. Check out the Google Analytics for your blog. Look at stats for new visitors--traffic that came from a search. How much time did they spend on your blog--seconds? And how many page views? This traffic is not a community.


But what if a post goes viral, driving big traffic to your blog for the day? Doesn't that help build your community?


Bloggers with this experience report that the spike in daily traffic usually does not create any big surge in comments--and almost never lands new subscribers.


The secret? Return visitors!


Now take a look at the stats for your blog's return visitors--people who are attracted to your blog and engaged with it. They're starting a relationship with you. They can help you grow naturally and can make a real difference to your business.
To keep visitors coming back:

• Strive for unique content with either new info or a fresh look at something they already know
• Don't worry about the popular keywords
• Engage right away with people who comment
• Connect personally with bloggers and commenters--email them, call them, meet them face to face

By focusing on return visitors, you're cultivating real relationships with devoted readers, who will then help grow your community by spreading your blog's message to their friends and acquaintances.


Slow and steady wins the race

This approach keeps track of return visitors on a daily basis and focuses on driving up that number over time. It gets you thinking about creating the better content and value-added efforts that build a stronger community.

Taking this slow and steady approach to developing your blog community eventually gets you to that "tipping point," where so many people and their friends are spreading the word about your blog that ALL your numbers begin heading up. The results can be dramatic.


To use a blog to create meaningful business relationships, make return visitors your first priority. There are no shortcuts--build your blog community just like you built your customer base---one connection, one relationship, one referral at a time.... Enjoy a great month!

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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.

Inside Lending Newsletter - For the week of 9-26-11

>> Market Update



QUOTE OF THE WEEK..."Success is the maximum utilization of the ability that you have."--Zig Ziglar, American author and motivational speaker


INFO THAT HITS US WHERE WE LIVE...To help the economy succeed, the Fed is certainly using its ability to the max. Coming out of the FOMC meeting Wednesday, the Fed announced "Operation Twist"--a strategy of selling its short-term securities to buy long-term bonds to drive down long term interest rates, especially for mortgages. This latest Fed effort to help the housing market is great news for anyone thinking of buying a home, as mortgage rates should stay very very low.

Wednesday's other great news for housing was August Existing Home Sales came in UP 7.7%, to an annual rate just the other side of 5 million units, the best reading since March. This dropped the supply of existing homes to 8.5 months. Tuesday, August Housing Starts were down 5%, to a 571,000 unit annual rate. But, hey, dealing with a hurricane and floods, builders across a good part of the East were hesitant to break ground. Better news came with building permits--UP 3.2% for the month and now UP 7.8% versus a year ago.

BUSINESS TIP OF THE WEEK...Don't avoid taking a prudent risk just because risks sometimes result in failure. Without the possibility of failure, there is no possibility of success.

>> Review of Last Week


IT'S ALL GREEK TO WALL STREET...The week before last, investors were optimistic about Greek debt and European financial problems and the stock market went up. Last week, Wall Street worried that Greece wasn't making progress with the austerity plan that would earn it a bail out from its richer neighbors. Then Moody's downgraded Italy's debt. Lastly, the Fed chimed in: "There are significant downside risks to the economic outlook, including strains in global financial markets." Stocks suffered their worst weekly loss since October 2008.


Wall Streeters were obviously ignoring the good economic signs. Same-store sales were UP 3.4% versus a year ago, as measured by the International Council of Shopping Centers. Redbook Research reported an even better 4.1% boost in same-store sales. There was the positive housing data reported above. Then, some economists said they expect consumer spending to climb at a 1.5%–2% annual rate in Q3. The economy may not be booming, but it's not double-dipping back into recession either.


For the week, the Dow ended down 6.4%, at 10771; the S&P 500 was down 6.5%, to 1136; and the Nasdaq was down 5.3%, to 2483.


It was an historic week in the bond market, as Treasury yields dropped to record lows after the Fed announced its $400 billion "twist" to sell shorter term bonds and buy longer ones. The FNMA 3.5% bond we track closed Friday at $102.27, UP 1.22 for the week. National average mortgage rates held steady, but they're already at historic levels, well below where they were a year ago. Now with the Fed's Operation Twist, some observers say rates may go even lower.


DID YOU KNOW?...The majority of real estate agents believe that the biggest reason homes don't sell is simply price.


>> This Week’s Forecast


MORE ON HOME SALES, GDP, INFLATION...Monday, August New Home Sales are expected down a tad from the prior month. Thursday's Pending Home Sales for July are predicted down a little. That day will also reveal the Q2 GDP, Third Estimate, forecast up slightly but still registering modest 1.2% growth. Friday brings a reading on August inflation in the form of Core PCE Prices, the Fed's favorite gauge, which should still be within their target range.


>> The Week’s Economic Indicator Calendar


Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.


Economic Calendar for the Week of Sep 26 – Sep 30

>> Federal Reserve Watch


Forecasting Federal Reserve policy changes in coming months...Economists don't see a hike in the Funds rate, given the Fed's latest view of the economy and its stated intention to keep rates at super low levels through summer 2013. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

Probability of change from current policy:

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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.

Inside Lending Bulletin- VA Changes - 9-23-11

VA Funding Fee Changes Effective October 1, 2011

Vets and Reserves/National Guard will get a significant benefit October 1st. Check the chart below to see how much they’ll save in fees. We hope this helps you help our military folks become homeowners!

If you have any questions about this or a specific situation, please don’t hesitate to email or call.

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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.

Inside Lending Newsletter - For the week of 9/19/11

>> Market Update


QUOTE OF THE WEEK..."Work joyfully and peacefully, knowing that right thoughts and right efforts will inevitably bring about right results."--James Allen (1864-1912), British inspirational writer


INFO THAT HITS US WHERE WE LIVE...We did see some right results for housing last week, and hopefully we've been working joyfully and peacefully to bring them about. Realtor.com reported that inventories of homes, condos, townhouses and co-ops shrank in August for the fourth month in a row. They're now down 19% from a year ago, and rest at 2.27 million units. Dropping inventories do keep home prices from falling and, supporting this, the national median list price was unchanged from June and July and up about 0.5% from a year ago, at $189,900.


National average mortgage rates continued to drift downward, again hitting new record lows. And borrowers are responding, with demand for purchase loans up 7% from the week before, according to the Mortgage Bankers Association. Refinancing applications are also up. Freddie Mac's chief economist noted the average interest rate on outstanding mortgages is 5.28% and that refinancing into a 30-year fixed mortgage at today's rates could save $1715 a year in interest on a $200,000 loan.


BUSINESS TIP OF THE WEEK...The best indicator of long term success is actually "street smarts." To develop yours, dive in, don't dawdle over decisions, learn from your mistakes and experiment continually.


>> Review of Last Week


TURNAROUND!...Stocks headed back up five days in a row, giving the S&P500 its best performance since June, though it was just the second weekly rise in eight weeks. The week began with great worry over the status of French banks, but things turned positive on news that the BRIC countries--Brazil, Russia, India and China--are in talks to buy eurozone debt. The European Central Bank also lined up other central banks to help out with loans if needed. This got Wall Streeters feeling so good, they ignored the lackluster U.S. economic reports and sent stock prices skyward.


The parade of mediocre data was led by producer inflation, flat for August but up 6.5% from a year ago. Core CPI consumer inflation was up 0.2% for August and up 2.0% versus a year ago, putting it at the top of the Fed's target range. That could make this week's Fed meeting interesting. New jobless claims inched up to 428,000. Retail was flat for August, but even in good times there are off months, and anyway Retail Sales are up 7.2% from a year ago. Finally, the industrial sector continues to lead the recovery, with August production and capacity both UP.


For the week, the Dow ended UP 4.7%, at 11509; the S&P 500 was UP 5.4%, to 1216; and the Nasdaq was UP 6.3%, to 2622.


Worries about European debt made Treasuries and mortgage bonds look like safe bets, sending prices up at first. But inflation concerns and the stock rally ultimately sent bonds the other way. The FNMA 3.5% bond we track closed Friday at $101.05, down .98 for the week. Nevertheless, as mentioned above, national average mortgage rates inched down, setting new record lows.


DID YOU KNOW?...A prepayment (or prior redemption) privilege is a clause allowing the borrower to pay off a mortgage early without penalty. When interest rates fall, this lets the borrower pay off the mortgage and refinance at a lower rate.


>> This Week’s Forecast


NEW CONSTRUCTION, EXISTING HOME SALES AND, OH YES, ANOTHER FED MEETING...It will be useful for folks with our interests to check out Tuesday's August Housing Starts, expected to be down. This will at least help clear the inventory of new homes. The annual rate for Building Permits should be down a little as well. Wednesday will give us the Existing Home Sales reading for August, predicted to be inching back toward the 5 million level.


Wednesday we'll also see the Fed's policy statement from the latest FOMC meeting. No one expects the rate to rise, but speculation surrounds Chairman Bernanke's decision to extend the confab to two days. What will they say about inflation? Will they launch Operation Twist and start buying long bonds? Will they throw more money into the system?


>> The Week’s Economic Indicator Calendar



Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.


Economic Calendar for the Week of Sep 19 – Sep 23

>> Federal Reserve Watch



Forecasting Federal Reserve policy changes in coming months...This week's Fed meeting does not have economists expecting a boost in the Funds Rate, even though last week's inflation figures could bring a hike sooner than the two years the Fed wants to keep the rate at its super low level. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.


Current Fed Funds Rate: 0%–0.25%

Probability of change from current policy:

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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.






.

Home and Wealth Newsletter - 9-14-11

Most Tax Credits for Green Home Improvements to Expire Soon!

Federal tax credits for most energy-efficient home improvements are set to expire at the end of 2011. Experts say they won't be extended. Purchase and installation must be this year, so you need to start projects no later than October or November.


Products and projects that qualify for the federal tax credit may be found at:
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
Rebates and tax credits are also offered by states and these incentives can be searched at:
http://www.dsireusa.org/


The maximum federal tax credit is $500 and the amount varies depending on the product. But tax credits are often better than deductions, which only reduce your taxable income. Tax credits reduce your total tax liability, so it's like getting money back from the IRS.


Plus, energy-efficient upgrades save you money year after year. Insulation can reduce air leakage 20% to 30%, saving about $220 a year. New windows can save up to $500 a year. A new air conditioner is typically 30% more efficient than a 10-year-old one. New ductwork, central air cooling and water heaters are also very cost-effective improvements.


For bigger green projects, federal tax breaks are available until 2016! Examples include solar energy systems, geothermal heat pumps, small wind turbines and fuel cells. These may earn a tax credit worth up to 30% of the cost, with no dollar limit. For more information, check the Energy Star website: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index


Check the websites above for eligible projects. And always consult with a tax professional before proceeding with expenditures that have tax implications.


PS Thinking of upsizing, downsizing or refinancing to take advantage of today's affordable home prices and historic low mortgage rates? Please call or email us now to discuss your situation.


We're always glad to answer any questions.... Have a great day!
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© 2011 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender.