Wednesday, November 9, 2011

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.


Monday, November 7, 2011

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.

 

Thursday, November 3, 2011

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.