Ways to Cut Costs and Get a Greener Office!
These days everyone needs to cut costs. At the same time, most people want to help the environment. Well, you can accomplish both goals in business just by looking at ways to make your office more energy efficient.
Greening our offices really does help our planet. The American Council for an Energy-Efficient Economy reports that power for office equipment now represents 7% of the total electricity used in business -- that adds up to $1.8 billion worth of electricity per year!
Here are seven easy ways you can help drive down that number and keep up our environment...
1. Shut down for the day. Make sure all equipment is completely turned off before the last person leaves the office. When devices are on, they're still drawing electricity and costing you money.
2. Plug equipment into power strips, not wall sockets. Most office equipment, battery chargers and consumer electronics use something called "phantom energy." Because of this, they keep drawing a trickle of power from an outlet even when they've been turned off. The solution is to buy power strips and attach a group of electronics to each one. When you shut down for the day, turning off the power strip turns off everything attached to it and effectively "unplugs" it, all at the same time!
3. Check sleep modes on all electronic devices. Most computers, printers, copiers and fax machines have a "sleep" mode or "power save" setting that switches them into energy-saving mode after being idle for a set number of minutes. This mode usually consumes at least 70% less energy than when the unit is operating at full-power. Check all devices to make sure the power-save mode either kicks in automatically or has been manually set. If you can specify the cycle time, set the power saving mode to kick in after no more than 15 minutes.
4. Standardize on laptop computers. Laptops consume up to 80% less energy than desktop computers. Trade in those desktops for laptops and you'll see impressive energy savings. For users who absolutely need a large monitor, buy them an LCD computer screen that plugs right into the laptop. There are many of these LCDs on the market for not much money.
5. Look for the Energy Star label on all new purchases. Energy Star is the federal government's program for labeling all kinds of energy-saving products for home and business. Electronic office equipment with the Energy Star label uses at least 20% less energy than a standard model. Many Energy Star products also come with automatic power-save modes, so they don't have to be manually activated.
6. Small and new are best for refrigerators. Sure you can save money buying an old refrigerator for the office, but it can cost hundreds of dollars a year more in electricity compared to newer models. And if your don't really need a big fridge, you should know that some mini-refrigerators can run on less than a dollar a month of electricity.
7. Get plug-in timers for the water cooler and coffee machine. Water coolers with a hot water tap and all coffee makers can use quite a bit of electricity over the course of a year. Put them on timers that plug into wall and you can program them to be on only when the office is open.
These energy saving moves are good for saving money and the environment--and they're even good for business. Employees and clients are all happier to work with a greener business!... 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.
Wednesday, June 29, 2011
Monday, June 27, 2011
Inside Lending Newsletter - For the week of June 27, 2011
>> Market Update
QUOTE OF THE WEEK..."For the resolute and determined there is time and opportunity."--Ralph Waldo Emerson
INFO THAT HITS US WHERE WE LIVE...It certainly takes plenty of determination to find the opportunities in today's housing market. Last week the National Association of Realtors (NAR) reported Existing Home Sales down 3.8% in May to an annual rate of 4.81 million units, a six-month low. The median price was up for the month, though down 4.6% from a year ago. Inventories declined, but the months' supply increased to 9.3 because of the slower sales rate. Nevertheless, the NAR's economist opined, "...sales activity in the second half of the year is expected to be stronger than the first half, and will be much stronger than the second half of last year."
Thursday's New Home Sales showed a 2.1% drop for May, to a 319,000 annual rate, but this did beat expectations. The months' supply fell to 6.2, as inventories dropped to their lowest level on record. Yet the FHFA home price index, which measures prices for homes bought with conforming mortgages, was up 0.8% for March, its largest monthly gain since 2005! The Mortgage Bankers Association (MBA) reported purchase loan demand down a seasonally adjusted 3.9% from the week before, but up 4.4% over a year ago.
BUSINESS TIP OF THE WEEK...Diversify. Don't depend on one customer type, one sales channel, or one product or service. It's great to specialize, but bring your expertise to new areas. And keep your marketing diversified: don't let the web replace personal contact time.
>> Review of Last Week
ONE UP, TWO DOWN...It was a volatile week in stocks, with only the Nasdaq index up, while both the Dow and the S&P 500 were off. The up-and-down stock prices mimicked Wall Street's responses to the economic situation. The week started on an up note, as Greek debt problems (which could impact U.S. banks) seemed closer to solution. But on this side of the pond, investors found little solace in Fed Chairman Bernanke's admission that the economic recovery is slower than expected. He thinks food and energy prices will subside, but doesn't have a clear take on why the slow pace of recovery persists. He also said that the majority of home sales "have much more stable prices than houses sold on a distressed basis," as reported here on June 6.
The next day, the International Energy Agency (IEA) announced it will release 60 million barrels of oil from strategic reserves, with half coming from the U.S., to make up for Libya's shortfall. This should eventually bring down gas prices and calm inflation fears, both good for the economy. Q1 GDP was revised up to 1.9%, still well below Q4's 3.1% growth rate. And on the jobs front, key to the housing market, new weekly unemployment claims edged up to 429,000. But corporate profits were up 12.1% annually and May Durable Goods Orders showed encouraging growth.
For the week, the Dow ended down 0.6%, at 11,935; the S&P 500 was down 0.2%, to 1,268; but the Nasdaq was UP 1.4% to 2,653.
Weaker stock prices and stronger concerns over European sovereign debt sent investors to the safe haven of bonds, whose prices benefited. The FNMA 4.0% bond we watch ended the week up .84, closing at $101.09. In Freddie Mac's weekly survey, national average rates for conforming mortgages held at levels that are near the lowest for the year.
DID YOU KNOW?...Many of the first homes in the American colonies were built with bricks carried as ballast in ships sailing to the New World. Here, the bricks were sold for home building and replaced in the ships' holds with goods being exported.
>> This Week’s Forecast
PENDING HOME SALES, INFLATION, CONSUMER CONFIDENCE...It will be interesting to see if Wednesday's Pending Home Sales give us some positive signs about the state of housing sales a few months out. The expectation is for a small gain. The week begins with the Fed's favorite inflation reading, Core PCE Prices, forecast to be up a benign 0.2% for May.
We'll all watch for signs of improvement in Thursday's Initial Unemployment Claims, but the figure should still be above the 400,000 threshold. Nevertheless, consumers aren't too discouraged, as Tuesday's Consumer Confidence and Friday's University of Michigan Consumer Sentiment index are both expected to hold steady for June.
>> 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 June 27 – July 1
![]()
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...In last week's presser, Fed Chairman Bernanke explained that keeping the Funds Rate where it is for an "extended period" means at least two or three meetings. Economists are taking him at his word. 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.
QUOTE OF THE WEEK..."For the resolute and determined there is time and opportunity."--Ralph Waldo Emerson
INFO THAT HITS US WHERE WE LIVE...It certainly takes plenty of determination to find the opportunities in today's housing market. Last week the National Association of Realtors (NAR) reported Existing Home Sales down 3.8% in May to an annual rate of 4.81 million units, a six-month low. The median price was up for the month, though down 4.6% from a year ago. Inventories declined, but the months' supply increased to 9.3 because of the slower sales rate. Nevertheless, the NAR's economist opined, "...sales activity in the second half of the year is expected to be stronger than the first half, and will be much stronger than the second half of last year."
Thursday's New Home Sales showed a 2.1% drop for May, to a 319,000 annual rate, but this did beat expectations. The months' supply fell to 6.2, as inventories dropped to their lowest level on record. Yet the FHFA home price index, which measures prices for homes bought with conforming mortgages, was up 0.8% for March, its largest monthly gain since 2005! The Mortgage Bankers Association (MBA) reported purchase loan demand down a seasonally adjusted 3.9% from the week before, but up 4.4% over a year ago.
BUSINESS TIP OF THE WEEK...Diversify. Don't depend on one customer type, one sales channel, or one product or service. It's great to specialize, but bring your expertise to new areas. And keep your marketing diversified: don't let the web replace personal contact time.
>> Review of Last Week
ONE UP, TWO DOWN...It was a volatile week in stocks, with only the Nasdaq index up, while both the Dow and the S&P 500 were off. The up-and-down stock prices mimicked Wall Street's responses to the economic situation. The week started on an up note, as Greek debt problems (which could impact U.S. banks) seemed closer to solution. But on this side of the pond, investors found little solace in Fed Chairman Bernanke's admission that the economic recovery is slower than expected. He thinks food and energy prices will subside, but doesn't have a clear take on why the slow pace of recovery persists. He also said that the majority of home sales "have much more stable prices than houses sold on a distressed basis," as reported here on June 6.
The next day, the International Energy Agency (IEA) announced it will release 60 million barrels of oil from strategic reserves, with half coming from the U.S., to make up for Libya's shortfall. This should eventually bring down gas prices and calm inflation fears, both good for the economy. Q1 GDP was revised up to 1.9%, still well below Q4's 3.1% growth rate. And on the jobs front, key to the housing market, new weekly unemployment claims edged up to 429,000. But corporate profits were up 12.1% annually and May Durable Goods Orders showed encouraging growth.
For the week, the Dow ended down 0.6%, at 11,935; the S&P 500 was down 0.2%, to 1,268; but the Nasdaq was UP 1.4% to 2,653.
Weaker stock prices and stronger concerns over European sovereign debt sent investors to the safe haven of bonds, whose prices benefited. The FNMA 4.0% bond we watch ended the week up .84, closing at $101.09. In Freddie Mac's weekly survey, national average rates for conforming mortgages held at levels that are near the lowest for the year.
DID YOU KNOW?...Many of the first homes in the American colonies were built with bricks carried as ballast in ships sailing to the New World. Here, the bricks were sold for home building and replaced in the ships' holds with goods being exported.
>> This Week’s Forecast
PENDING HOME SALES, INFLATION, CONSUMER CONFIDENCE...It will be interesting to see if Wednesday's Pending Home Sales give us some positive signs about the state of housing sales a few months out. The expectation is for a small gain. The week begins with the Fed's favorite inflation reading, Core PCE Prices, forecast to be up a benign 0.2% for May.
We'll all watch for signs of improvement in Thursday's Initial Unemployment Claims, but the figure should still be above the 400,000 threshold. Nevertheless, consumers aren't too discouraged, as Tuesday's Consumer Confidence and Friday's University of Michigan Consumer Sentiment index are both expected to hold steady for June.
>> 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 June 27 – July 1
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...In last week's presser, Fed Chairman Bernanke explained that keeping the Funds Rate where it is for an "extended period" means at least two or three meetings. Economists are taking him at his word. 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:
------------------
© 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.
Tuesday, June 21, 2011
PrimePoint, June 2011: The Interviewing Pool
The Interviewing Game, part one
I am a single man. I'm not saying that so you search your Facebook friends for a possible set up for me, but I say it merely as a statement of fact. Although I’ve been in the dating pool so long that my fingers and toes are all wrinkly, I feel very blessed to say the longest relationship in my life actually is the one that I have with my career, which I genuinely love.
If you find yourself in the position of filling a job opening on your team or finding a job working with a team you will love, the process can often feel much like a date. With this being the case, I’d like to share some common rules of dating that easily cross over into interviewing—no matter what side of the table you sit.
1. You gotta be in it to win it. A person won’t get a date if all he/she does is sit on his/her couch and watch television. A person has to get out there, on social media sites, through community activities, at bars, by network through friends, etc. Likewise, a person won’t get the interview they want if all they do is stay at a computer constantly revising their resume. And a recruiter won’t get the targeted professional if they aren’t spreading the word about the opportunity - in the right spots.
In today’s age of technology, no matter where you are in the country, you have access to join a professional organization that focuses on your industry. Whether in person or online, many of these will offer networking opportunities that could connect you to the right people to find the position or person you really want and need. The focus needs to be sharing your availability and being present. When looking to find or fill a position, it’s not the time to be a wallflower. Join the dance.
2. Have something nice to say. You can learn a lot about a person from the way he/she talks about past significant others or a spouse. The more negatively the picture is painted of previous relationships, the more insight you have into the person's personality and pattern. In the same way, going into an interview and disparaging your previous employee or employer often reflects more negatively on you than the person or company you are describing.
If at all possible, it’s best to avoid the negative remarks. While certain difficult situations may have directly initiated the interview taking place, work to share the most realistically positive view of all circumstances, while still being honest. Word choice is key because, let’s face it, you’re both measuring each other up. It might be a great time to practice the old adage, “If you don’t have anything nice to say, don’t say anything at all.”
3. Show what you want. Too often in dating, opportunities are missed because people don’t clarify what they want. Whether shy, insecure or merely a poor communicator, ships pass in the night because one or the other didn’t send the right signal at the right time. Similarly, career opportunities are missed and jobs are not offered simply because one or another did not voice what they really want or need.
If you are interested in a new opportunity within your current organization, pursue it. Share with the appropriate parties how you are qualified and what you can bring. If you have a position in your company right now and you know the perfect person for it, share your interest in him and her. You may think that person is on Cloud 9 where they are, but you never know. Whether the brass ring is a new position or an incredible candidate, always try to reach out to grab it.
4. Don’t overdo it. “Needy” is not one of those adjectives you would want to include in your dating profile.
While you shouldn’t be afraid to be open about your goals and intentions with interviewing, as with eating, exercise and everything else in life, you’ll want to keep it in check. There is such a thing as too much of a good thing. Desperation is not a draw—whether desperate for a job or desperate to interview a candidate. Proactive persistence is good; stalking is not. There’s a fine line, and you don’t want to cross it.
5. Confidence is key. Have you ever seen a mismatched couple? Those that might have one person in the relationship that somehow seems not to fit well with the other—either based on physical appearance or social standing. How did they come together? The chances are high that one or both demonstrated such strong confidence that any other factor didn’t seem to matter. Confidence can work wonders.
Entering an interview fully knowing the value you can bring to the company, or of the strengths and resources your organization offers its employees reads almost instantaneously. Humility is an admirable trait, but overdone, it can put a damper on the confidence you need to demonstrate in an interview. If there’s ever a time to toot your own horn, this is it. Be proud of your accomplishments. Share them. And remember: Head held high, straight posture, firm handshake, strong voice… nonverbal language sometimes speaks louder than the words you say.
Next month, I’ll wrap up with five more tips on interviewing… Until then, go out there and get ‘em!
Monday, June 20, 2011
Inside Lending Newsletter - For the week of 6-20-11
>> Market Update
QUOTE OF THE WEEK..."Don't look back. Something might be gaining on you."--Satchel Paige, Hall of Fame pitcher who last played at age 59
INFO THAT HITS US WHERE WE LIVE... What was gaining on us last week were May Housing Starts, up 3.5% for the month to a higher-than-expected 560,000 unit annual rate. The gain included a 29% increase in multi-family starts, which are now up 17.5% over a year ago. New building permits were also up in May, by 8.7%, to a 612,000 annual rate. Permits indicate the level of starts a short time out, so some economists see the beginning of an upward trend. With the number of homes under construction at the lowest levels on record back to 1970, and as inventories continue to come down, home building will certainly need to grow considerably.
Experts are now saying we'll need to find homes for 150 million more people, the projected growth of the U.S. population in the next 30 to 40 years. This will spur a ramp up in home building and sales once the housing recovery gets going. On our way to that recovery, the Mortgage Bankers Association (MBA) reported purchase loan demand up a seasonally adjusted 4.5% from the week before and up 6.1% over a year ago! But wise buyers should act now, as MBA economists expect 30-year fixed-rate mortgage rates to rise a bit by the end of the year and in 2012.
BUSINESS TIP OF THE WEEK...Logic can be your most powerful sales tool. If a cost saving is in your favor, hammer it home. Savings on overall costs, financing rates and energy use make even more logical sense when projected out for several years.
>> Review of Last Week
BARELY UP... After six down weeks, the Dow and the S&P 500 stock indexes finally showed weekly gains, although the S&P was up a mere half point. The tech-heavy Nasdaq was still off a tick for the week, dragged down by the makers of BlackBerry, whose stock dropped mightily on earnings that fell well short of Street expectations. Economic reports came in mixed. Inflation continues to be a worry to all but the Fed, as the Consumer Price Index (CPI) for May was up 0.2%. In case you think that's just from higher food and gas prices, the Core CPI, which excludes those, was up 0.3%. We'll see what the Fed says this week.
May Retail Sales were down a less-than-expected 0.2% but are up 7.7% from a year ago. New weekly jobless claims dropped by 16,000 to 414,000, while continuing claims fell by 21,000, to 3.68 million. These moves are in the right direction, although economists feel they aren't large enough. On the manufacturing front, both the Philadelphia and New York showed a contraction of activity. But some observers put this to supply-chain disruptions from Japan and expect manufacturing to rebound soon. Overall Industrial Production rose in May, though less than expected.
For the week, the Dow ended up 0.4%, at 12,004; the S&P 500 was up a half point, to 1,272; and the Nasdaq was down 1.0%, to 2,616.
With continued fears about Greek sovereign debt, you'd think bonds would have benefited from a flight to safety. But the FNMA 4.0% bond we watch ended the week up just .01, closing at $100.25. In Freddie Mac's weekly survey, national average rates for conforming mortgages finally leveled off after dropping eight weeks in a row. Rates are still at or near their lows for the year.
DID YOU KNOW?...We spend more time in the bedroom than in any other room in the house, because that's where we sleep. But most of us say the kitchen is our most important room, since it's the center of more activities.
>> This Week’s Forecast
MAY HOME SALES AND THE FED...What more could you want? Tuesday's Existing Home Sales and Thursday's New Home Sales will show us if May's closings pushed the annual sales rate up or down. Unfortunately, down is forecast, although surprises are always possible.
Wednesday we get the Fed's pronouncement on the Funds Rate and the state of the economy. No one expects the rate to budge, since Fed Chairman Bernanke keeps saying it needs to remain at its rock bottom level for an "extended period." But it will be useful to examine the Fed's policy statement for their take on inflation and the pace of the recovery.
>> 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 June 20 – June 24
![]()
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months... Given Fed Chairman Bernanke's continued pronouncements, economists do not expect a hike in the Funds Rate any time soon. 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.
QUOTE OF THE WEEK..."Don't look back. Something might be gaining on you."--Satchel Paige, Hall of Fame pitcher who last played at age 59
INFO THAT HITS US WHERE WE LIVE... What was gaining on us last week were May Housing Starts, up 3.5% for the month to a higher-than-expected 560,000 unit annual rate. The gain included a 29% increase in multi-family starts, which are now up 17.5% over a year ago. New building permits were also up in May, by 8.7%, to a 612,000 annual rate. Permits indicate the level of starts a short time out, so some economists see the beginning of an upward trend. With the number of homes under construction at the lowest levels on record back to 1970, and as inventories continue to come down, home building will certainly need to grow considerably.
Experts are now saying we'll need to find homes for 150 million more people, the projected growth of the U.S. population in the next 30 to 40 years. This will spur a ramp up in home building and sales once the housing recovery gets going. On our way to that recovery, the Mortgage Bankers Association (MBA) reported purchase loan demand up a seasonally adjusted 4.5% from the week before and up 6.1% over a year ago! But wise buyers should act now, as MBA economists expect 30-year fixed-rate mortgage rates to rise a bit by the end of the year and in 2012.
BUSINESS TIP OF THE WEEK...Logic can be your most powerful sales tool. If a cost saving is in your favor, hammer it home. Savings on overall costs, financing rates and energy use make even more logical sense when projected out for several years.
>> Review of Last Week
BARELY UP... After six down weeks, the Dow and the S&P 500 stock indexes finally showed weekly gains, although the S&P was up a mere half point. The tech-heavy Nasdaq was still off a tick for the week, dragged down by the makers of BlackBerry, whose stock dropped mightily on earnings that fell well short of Street expectations. Economic reports came in mixed. Inflation continues to be a worry to all but the Fed, as the Consumer Price Index (CPI) for May was up 0.2%. In case you think that's just from higher food and gas prices, the Core CPI, which excludes those, was up 0.3%. We'll see what the Fed says this week.
May Retail Sales were down a less-than-expected 0.2% but are up 7.7% from a year ago. New weekly jobless claims dropped by 16,000 to 414,000, while continuing claims fell by 21,000, to 3.68 million. These moves are in the right direction, although economists feel they aren't large enough. On the manufacturing front, both the Philadelphia and New York showed a contraction of activity. But some observers put this to supply-chain disruptions from Japan and expect manufacturing to rebound soon. Overall Industrial Production rose in May, though less than expected.
For the week, the Dow ended up 0.4%, at 12,004; the S&P 500 was up a half point, to 1,272; and the Nasdaq was down 1.0%, to 2,616.
With continued fears about Greek sovereign debt, you'd think bonds would have benefited from a flight to safety. But the FNMA 4.0% bond we watch ended the week up just .01, closing at $100.25. In Freddie Mac's weekly survey, national average rates for conforming mortgages finally leveled off after dropping eight weeks in a row. Rates are still at or near their lows for the year.
DID YOU KNOW?...We spend more time in the bedroom than in any other room in the house, because that's where we sleep. But most of us say the kitchen is our most important room, since it's the center of more activities.
>> This Week’s Forecast
MAY HOME SALES AND THE FED...What more could you want? Tuesday's Existing Home Sales and Thursday's New Home Sales will show us if May's closings pushed the annual sales rate up or down. Unfortunately, down is forecast, although surprises are always possible.
Wednesday we get the Fed's pronouncement on the Funds Rate and the state of the economy. No one expects the rate to budge, since Fed Chairman Bernanke keeps saying it needs to remain at its rock bottom level for an "extended period." But it will be useful to examine the Fed's policy statement for their take on inflation and the pace of the recovery.
>> 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 June 20 – June 24
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months... Given Fed Chairman Bernanke's continued pronouncements, economists do not expect a hike in the Funds Rate any time soon. 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:
------------------
© 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.
Thursday, June 16, 2011
Home & Wealth Newsletter - 6-16-11
Is buying now cheaper than renting?PLUS...Tornado survival!
Our Home & Wealth email launches a new format covering two topics, one focused on home, the other on wealth. This month on the home front, we thought it timely to share some advice on surviving tornadoes. The rash of twisters hitting our country this year reminded us that although some regions see more tornadoes than others, no state (including Alaska and Hawaii!) is historically tornado-free.
TORNADO PREPARATION
Plan your response. If a tornado hits, decide where you'd seek shelter in your home (more on this below) or in a solid nearby shelter you can get to quickly -- especially important if you're in a mobile home. Have a "go kit" ready, including first-aid kit, flashlight and batteries, identification, matches, copies of important financial documents, an extra set of clothes and other items you know you'll need if a disaster hits. Ask a friend or relative in another town to be an emergency contact if family members are in different locations when the storm hits.
Be forewarned. Find out how your community receives NOAA tornado watches and warnings and make sure you have access to them. They could come over local TV and radio channels -- or get an NOAA weather radio whose annoyingly loud warning tones will alert you any time of the day or night.
Get the facts: Know what part of your county you live in and the names of surrounding counties and the key geographic features in your region. Warnings are issued using this information.
Indoor protection: Avoid windows and protect yourself from flying debris. Go to the basement if there is one, or into a center hallway, closet or windowless room that's as far from the outside walls as possible. Get under some sturdy furniture and hang on.
Indoor myth: Open the windows to equalize inside and outside air pressure. Fact: It's the debris and the wind from tornadoes that cause damage, not differences in air pressure -- and that flying debris will "open" your windows anyway!
Outdoor protection: Lie flat on the ground in the lowest spot you can get to and protect your head with your arms.
Outdoor myth: If you can, take shelter under a highway overpass. Fact: The wind and debris will still reach you beneath an overpass. Again, emergency response specialists say lying down in a ditch or culvert is safer.
After it passes: Do not go into damaged buildings, but do watch for downed power lines and leaking gas mains. Stay tuned to weather reports, since one storm system may spawn several tornadoes.
RENT VS. BUY
Does it make more sense to buy a home rather than rent one? Here are the latest facts:
According to a national real estate website's data, it is now less expensive to own a home than to rent one in 72% of U.S. cities.
This percentage will likely increase because analysts feel rental costs are about to explode. The demand for rentals has increased with the economic downturn, while the supply of rentals has quickly dropped. In this scenario, the only place for prices to go is UP!
Even though home prices could still soften in some markets, the cost of owning a home may increase. This is because mortgages may soon get more expensive. Researchers with the Mortgage Bankers Association expect mortgage rates to rise the last three months of this year and continue to increase gradually through 2012.
For most folks, it makes utmost sense to buy a home at a discounted price and secure a 30-year mortgage at an historically low fixed interest rate. This lets you set your housing expense for the next thirty years--while rents keep heading skyward.
If you have any questions about your home financing or refinancing situation, please feel free to call or email. We're always glad to help.... Have a great day!
------------------
© 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.
Our Home & Wealth email launches a new format covering two topics, one focused on home, the other on wealth. This month on the home front, we thought it timely to share some advice on surviving tornadoes. The rash of twisters hitting our country this year reminded us that although some regions see more tornadoes than others, no state (including Alaska and Hawaii!) is historically tornado-free.
TORNADO PREPARATION
Plan your response. If a tornado hits, decide where you'd seek shelter in your home (more on this below) or in a solid nearby shelter you can get to quickly -- especially important if you're in a mobile home. Have a "go kit" ready, including first-aid kit, flashlight and batteries, identification, matches, copies of important financial documents, an extra set of clothes and other items you know you'll need if a disaster hits. Ask a friend or relative in another town to be an emergency contact if family members are in different locations when the storm hits.
Be forewarned. Find out how your community receives NOAA tornado watches and warnings and make sure you have access to them. They could come over local TV and radio channels -- or get an NOAA weather radio whose annoyingly loud warning tones will alert you any time of the day or night.
Get the facts: Know what part of your county you live in and the names of surrounding counties and the key geographic features in your region. Warnings are issued using this information.
Indoor protection: Avoid windows and protect yourself from flying debris. Go to the basement if there is one, or into a center hallway, closet or windowless room that's as far from the outside walls as possible. Get under some sturdy furniture and hang on.
Indoor myth: Open the windows to equalize inside and outside air pressure. Fact: It's the debris and the wind from tornadoes that cause damage, not differences in air pressure -- and that flying debris will "open" your windows anyway!
Outdoor protection: Lie flat on the ground in the lowest spot you can get to and protect your head with your arms.
Outdoor myth: If you can, take shelter under a highway overpass. Fact: The wind and debris will still reach you beneath an overpass. Again, emergency response specialists say lying down in a ditch or culvert is safer.
After it passes: Do not go into damaged buildings, but do watch for downed power lines and leaking gas mains. Stay tuned to weather reports, since one storm system may spawn several tornadoes.
RENT VS. BUY
Does it make more sense to buy a home rather than rent one? Here are the latest facts:
According to a national real estate website's data, it is now less expensive to own a home than to rent one in 72% of U.S. cities.
This percentage will likely increase because analysts feel rental costs are about to explode. The demand for rentals has increased with the economic downturn, while the supply of rentals has quickly dropped. In this scenario, the only place for prices to go is UP!
Even though home prices could still soften in some markets, the cost of owning a home may increase. This is because mortgages may soon get more expensive. Researchers with the Mortgage Bankers Association expect mortgage rates to rise the last three months of this year and continue to increase gradually through 2012.
For most folks, it makes utmost sense to buy a home at a discounted price and secure a 30-year mortgage at an historically low fixed interest rate. This lets you set your housing expense for the next thirty years--while rents keep heading skyward.
If you have any questions about your home financing or refinancing situation, please feel free to call or email. We're always glad to help.... Have a great day!
------------------
© 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.
Monday, June 13, 2011
Inside Lending Newsletter - For the week of 6-13-2011
>> Market Update
QUOTE OF THE WEEK... "There is nothing either good or bad, but thinking makes it so."--William Shakespeare
INFO THAT HITS US WHERE WE LIVE... There are those who think the housing market is in bad shape, with the start of a second dip in home prices. Then there are those who see something better -- a bumpy bottoming of home prices, which will soon head back up. Those of us in the second camp were given more ammunition last week by real estate data company Altos Research. Their evidence shows prices bottomed out in March and achieved seasonal rises in April and May. Their VP of market analytics said in a recent webcast: "We're pretty confident that means there is going to be a rebound.... There's still plenty of movement upside and we're going to probably move...back into positive ground."
The researchers also reported that median list prices for single-family homes were up from March to May in all but two of the 20 cities they track. They further pointed out that, except for the last boom, the housing market historically has never seen constant price appreciation. There has always been some price volatility, so the latest dipping "...is really just the start of the next housing cycle." Other industry data revealed that in real estate listings in 16 of the 20 largest U.S. metro areas, the average number of days on the market dropped from 150 in December to 140, while median listing prices went from $224,900 to $246,000. This is not yet a housing recovery, but it's also not a double dip.
BUSINESS TIP OF THE WEEK...Don't play favorites. Yes, lavish your attention on those wonderful new customers you need to grow, but make sure you still treat existing clients like VIPs. One way to do this is with special offers and loyalty rewards for long-term and returning customers.
>> Review of Last Week
UNDER TWELVE THOUSAND...That's not just a price range for used cars, it's also where the Dow landed last week. Not surprising, as we've now had six down weeks in the stock market, matching the six weeks there's been a negative mood on Wall Street. That mood of course has come from signs of a slowdown in the economic recovery, even though there have also been signs of economic progress. Speaking in Atlanta on Tuesday, Fed Chairman Ben Bernanke admitted that our economic growth has been slower than expected this year. He also said the inflation triggered by higher energy prices was a passing thing and that the economy should get its mojo back in the second half of the year. But even then, Bernanke feels economic conditions will still justify keeping the federal funds rate at exceptionally low levels for the now familiar "extended period."
More disappointing news came with new weekly jobless claims up by 1,000 and still above the 400,000 threshold. Better news was the fact that continuing claims dipped again, to 3.68 million. Best news of all, the trade deficit shrank $3.1 billion in April to $43.7 billion. And the March trade deficit was revised to be $1.4 billion less than originally reported. These smaller trade deficits will raise the reading for GDP growth.
For the week, the Dow ended down 1.6%, at 11,952; the S&P 500 was down 2.2%, at 1,271; and the Nasdaq was down 3.3%, at 2,644.
The stock slide helped Treasury bonds rally, although the bulls were by no means dominant. The FNMA 4.0% bond we watch ended the week down .78, closing at $100.24. Nevertheless, national average rates for fixed-rate conforming mortgages dropped for the eighth week in a row, to their lowest levels since November. Freddie Mac's survey also had 1-year adjustable-rate mortgages at their lowest level in the report's history.
DID YOU KNOW?...Bathroom remodels have the highest average return on investment, around 102%. Kitchen remodels record the second highest average return, around 90%.
>> This Week’s Forecast
STORE SALES, PRICE MOVES, HOME BUILDING...Last week's lull in economic news will now be followed by a barrage of data from all directions. One report that matters is May Retail Sales, expected to dip slightly overall, but gain slightly when you take out slowing auto sales. The prices we consumers pay will be reflected in the inflation reports. The May Consumer Price Index (CPI) is forecast to come in flat, while the Core CPI, taking out food and gas, should be up 0.2%, not going in the right direction.
Thursday reveals the status of homebuilding. May Housing Starts are expected up a bit, although not back to their pre-downturn levels. May Building Permits, indicating starts a short time out, should also come in at a similar rate, though down slightly from April.
>> 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 June 13 – June 17
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...As Fed Chairman Bernanke said yet again last week, he expects that the slow pace of the recovery will warrant keeping the Funds Rate at its super low 0%-0.25% level for an extended period. 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:
---------------
© 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.
QUOTE OF THE WEEK... "There is nothing either good or bad, but thinking makes it so."--William Shakespeare
INFO THAT HITS US WHERE WE LIVE... There are those who think the housing market is in bad shape, with the start of a second dip in home prices. Then there are those who see something better -- a bumpy bottoming of home prices, which will soon head back up. Those of us in the second camp were given more ammunition last week by real estate data company Altos Research. Their evidence shows prices bottomed out in March and achieved seasonal rises in April and May. Their VP of market analytics said in a recent webcast: "We're pretty confident that means there is going to be a rebound.... There's still plenty of movement upside and we're going to probably move...back into positive ground."
The researchers also reported that median list prices for single-family homes were up from March to May in all but two of the 20 cities they track. They further pointed out that, except for the last boom, the housing market historically has never seen constant price appreciation. There has always been some price volatility, so the latest dipping "...is really just the start of the next housing cycle." Other industry data revealed that in real estate listings in 16 of the 20 largest U.S. metro areas, the average number of days on the market dropped from 150 in December to 140, while median listing prices went from $224,900 to $246,000. This is not yet a housing recovery, but it's also not a double dip.
BUSINESS TIP OF THE WEEK...Don't play favorites. Yes, lavish your attention on those wonderful new customers you need to grow, but make sure you still treat existing clients like VIPs. One way to do this is with special offers and loyalty rewards for long-term and returning customers.
>> Review of Last Week
UNDER TWELVE THOUSAND...That's not just a price range for used cars, it's also where the Dow landed last week. Not surprising, as we've now had six down weeks in the stock market, matching the six weeks there's been a negative mood on Wall Street. That mood of course has come from signs of a slowdown in the economic recovery, even though there have also been signs of economic progress. Speaking in Atlanta on Tuesday, Fed Chairman Ben Bernanke admitted that our economic growth has been slower than expected this year. He also said the inflation triggered by higher energy prices was a passing thing and that the economy should get its mojo back in the second half of the year. But even then, Bernanke feels economic conditions will still justify keeping the federal funds rate at exceptionally low levels for the now familiar "extended period."
More disappointing news came with new weekly jobless claims up by 1,000 and still above the 400,000 threshold. Better news was the fact that continuing claims dipped again, to 3.68 million. Best news of all, the trade deficit shrank $3.1 billion in April to $43.7 billion. And the March trade deficit was revised to be $1.4 billion less than originally reported. These smaller trade deficits will raise the reading for GDP growth.
For the week, the Dow ended down 1.6%, at 11,952; the S&P 500 was down 2.2%, at 1,271; and the Nasdaq was down 3.3%, at 2,644.
The stock slide helped Treasury bonds rally, although the bulls were by no means dominant. The FNMA 4.0% bond we watch ended the week down .78, closing at $100.24. Nevertheless, national average rates for fixed-rate conforming mortgages dropped for the eighth week in a row, to their lowest levels since November. Freddie Mac's survey also had 1-year adjustable-rate mortgages at their lowest level in the report's history.
DID YOU KNOW?...Bathroom remodels have the highest average return on investment, around 102%. Kitchen remodels record the second highest average return, around 90%.
>> This Week’s Forecast
STORE SALES, PRICE MOVES, HOME BUILDING...Last week's lull in economic news will now be followed by a barrage of data from all directions. One report that matters is May Retail Sales, expected to dip slightly overall, but gain slightly when you take out slowing auto sales. The prices we consumers pay will be reflected in the inflation reports. The May Consumer Price Index (CPI) is forecast to come in flat, while the Core CPI, taking out food and gas, should be up 0.2%, not going in the right direction.
Thursday reveals the status of homebuilding. May Housing Starts are expected up a bit, although not back to their pre-downturn levels. May Building Permits, indicating starts a short time out, should also come in at a similar rate, though down slightly from April.
>> 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 June 13 – June 17
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...As Fed Chairman Bernanke said yet again last week, he expects that the slow pace of the recovery will warrant keeping the Funds Rate at its super low 0%-0.25% level for an extended period. 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%
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