Interest rates on the rise... move fast!

Are you considering a home purchase? A refinance? The time is NOW. Why? Read THIS ARTICLE noting that rates are rising but also take into account that it is widely accepted that the FED will raise short-term rates this summer. Sure, those rates actually have nothing to do with Long-term (e.g. mortgage) rates BUT it will still affect the marketplace. If they do raise the "Federal Funds Rate" expect to see car loan interest rates to go up as well as 2nd Mortgage (HELOC) rates, which are based on the Prime rate AND don't forget credit card rates will likewise rise. SO as noted, while the Prime rate may have 'no affect' on mortgage rates, the factors allowing people to AFFORD a mortgage will definitely be affected (okay, if they don't have ANY car loans or ANY credit card debt or ANY other interest rate affected items, then you are correct, I am wrong ; )

In sum-if you want to buy a house or refinance, do it NOW and definitely before August 1st when the world ends, thanks to dear old blubbering Barney Frank. Cheers!

One way the shutdown could hurt the mortgage industry

Take a look at this document from the Mortgage Bankers Association; this explains how mortgages could be affected by a prolonged shutdown. One client's thoughts said that we're probably good for the next few weeks but if this lasts longer, month-end closings could be affected! Yikes!

Click HERE for the article.

The US Budget defined

I got this from an email (so of course it's true :) SO even if the facts aren't fully correct, this is a pretty good depiction of why we're in such a mess. Have fun! (Sorry about the layout; don't know why Blogger won't let me format how I want it). Why the U.S. was downgraded: * U.S. Tax revenue: $2,170,000,000,000 * Fed budget: $3,820,000,000,000 * New debt: $ 1,650,000,000,000 * National debt: $14,271,000,000,000 * Recent budget cuts: $ 38,500,000,000 Let's now remove 8 zeros and pretend it's a household budget: * Annual family income: $21,700 * Money the family spent: $38,200 * New debt on the credit card: $16,500 * Outstanding balance on the credit card: $142,710 * Total budget cuts: $385 Got It ?

Repeal Dodd-Frank NOW

Read THIS ARTICLE. This is very well written, no matter what you think of Newt. I like Newt; perhaps not as my President, but as a solid commentator. I have long complained of the Dodd-Frank Act (and it's 'friend' HVCC) and its repeal would do wonders for our country! That important? YES!

Steroids for the Economy?

This is great commentary--time to get off the drugs! The best comment is in the summary/end of the article: "Waiting for the recovery and removing the things that are holding it back (wasteful spending and regulation) is the healthiest way to create sustainable growth." AMEN While we're at it, what about all the foreclosures being "on hold"? That will only delay the inevitable (e.g. we need to work through the foreclosures that are out there so we can finally hit bottom with home prices). THEN we can see a true recovery. Whenever you tinker with market forces, 'bad things' can happen-in this case, it's just dragging out our issues. Final thought--we are 'on hold' until November. Win or lose, people are waiting to see how the chips fall. Once that happens, people will begin making their move (e.g. if Congress goes GOP, then businesses may see positive things on the horizon--if Democrats remain in power, they will either a) continue to sit on their hands or b) figure out a 'plan B'). Time will tell, eh?

Uh-oh... The Economy stumbles a bit...

Unemployment claims rose last week and inflation jumped more than forecast in January. Yes, there are still positive news items (manufacturing is up, cars are selling, new home permits up slightly and pricing stabilizing) but the core issue currently is the job situation (a reminder to those 'in charge'--it has ALWAYS been about jobs--NOT our health care). Why is this important? If inflation keeps rising, how does the Fed combat that? They raise interest rates! What will KILL home sales? Rising interest rates! (right Mr. Carter?) What else? Well, the Fed has been more or less buying loans (in simplistic terms). At the end of March, this will end, so we can see rates hike up based on the fact that it will be more difficult to obtain funds. This can also hurt home sales and refinances. I will expand on this soon, but suffice it to say that we are nearing a 'perfect storm' environment for home sales: the tax credit will expire soon (must be under contract by the end of March); the Fed will need to raise interest rates to combat inflation (prediction-by Summer); the Fed will stop shoring up the mortgage market at the end of March. bottom line-if you are on the fence, BUY OR REFI NOW!

As for health care, READ THIS from the AJC--I wish our politicians would....

What's really going on? Key word is 'underwater'.

This article from USA Today is spot-on. People would love to 'move up' but they can't get out of their old home! My old house in Smyrna is still rented (thank goodness!) but it may be worth less than my mortgages so it will be difficult to sell. Our current home is definitely underwater as the mortgages are easily $20,000-50,000 higher than the value (not that we're trying to sell/move). This is one of the main stories that every American should understand--and I wish Congress could understand it as well and try to stop regulating with silly new programs (HVCC anyone?) that have unintended consequences. Instead of the waste of time, money and resources on the health care debate, the focus should be on 2 things: jobs and housing. If you get those 2 areas sorted out, EVERYTHING will come together. I do feel that healthcare (like anything government regulates) needs to be reviewed and 'tweaked'. I am NOT in favor of governmental control and we need to see how both sides (Dems/Reps) can figure this out together--AFTER they sort out the economy! My 2 cents...

The Panic of 2008 in a nutshell...

I received the following link in an email newsletter. I am amazed at how clearly this shows 'what happened' over the past few years. I have to agree at their summation that it is truly the government that failed us. Are you surprised to read that? Both parties have failed us. Again the time is NOW to boot them all out. We are at a critical point in the history of our country. It's time to clean house and it's time to enact term limits to get rid of the 'us and them' mindset that so clearly has infected Washington (not that our own Georgia legislature has the guts to enact ethics laws and limitations on lobbyists either, but I digress). You truly want change? Let's get some new blood and new ideas in Washington. It's time for a voter revolution! God Bless America...!

Quote of the Week!

While I am not fully 'educated' on whether or not I like or dislike Treasury Secretary Tim Geithner (I definitely hate the fact that big O couldn't find someone who didn't owe back taxes for the post, however) I must admit that I LOVED the following interchange reported by the Wall Street Journal last Friday (from the Joint Economic Committee):

REP. KEVIN BRADY (R-TX) "The public has lost all confidence in your ability to do the job."

TREAS. SEC. GEITHNER: "What I can't take responsibility is for the legacy of crises you've bequeathed this country."

BO WAGNER: "DUH!"

I concur Mr. Geithner, you hit the nail on the head (and nailed Mr. Brady in the process). I guess I'll go harsh this morning: I condemn Congress. I blame Congress. I am unhappy with Congress. For too long we have had these people running our country into the ground. BOTH parties. It's time for this mess to stop. It's time for TERM LIMITS. Elect representatives based on what messages they 'sell' us during elections (e.g. do we agree with their point of view? Then send them to DC for a short time to accomplish that goal and can them if they don't do what they promised). House of Representatives? 3 terms (that's six years). Senate? 2 terms (twelve years). I am unsure how I'd feel about a Representative 'graduating up' to the Senate (giving them a potential 18 year 'reign' on our nickel). I just can't see any other options to get these people to do what we want them to do--so that our "government of the people, by the people, for the people shall not perish from the earth."

We are at a true crossroads in our country. I have made my own choices in my life and I have benefited or been 'punished' for them. It is not the role of the government to step in and save me (or further punish me) for my choices. You cannot legislate change; there is no moral obligation (or requirement) for the government to take money from me and give it to someone else. I have my own issues and 'causes' to handle--it's not my job to be someone else's guardian--except for my wife, kids, dogs and family. My choices. Again, read John Galt's speech from Atlas Shrugged and you'll understand (for a highly condensed version, click here).

Lest you think I am a complete selfish monster, I do want to point out that I am a charitable person--however, I give to what I support-not what the government 'thinks' I should support. My 2 cents as always... Happy Monday, eh? : )

(For one important group I support, check out The Rotary Foundation and consider supporting them...)

Senator Byrd-time to go?

This is a perfect case for Term Limits. While I respect the fact that Senator Byrd has set a record for his service I want to 'cut and paste' a few things from the AP article written by Laurie Kellerman.

*It was unclear whether Byrd would be able to attend Wednesday's session.

* He has cast more than 18,000 votes and, despite fragile health that has kept him from the Senate floor during much of this year, has a nearly 98 percent attendance record over the course of his career.

*Friday is his 92nd birthday.

Now I must admit that I have bias against him as he is known for his pork (another quote from Laurie's article: "He's a champion of "earmarks" - pet project spending that critics also call "pork." He's helped bring home to West Virginia $326 million for 2008 alone, according to Citizens Against Government Waste.") but truly I feel that ALL of our Senators and House members should have a much shorter shelf life. If he is not attending Congress, why is he there? And it's not blaming him for anything in particular, but I feel that many in Congress are too focused on special interest groups and companies and are biased against making tough decisions for our country versus voting using polls so that they can remain in Congress! As I type that comment, I must note that I think my Representative, Dr. Tom Price, has done great things and his voting has been in-line with many of my thoughts. So what to do? Guess it will be a 'toss the baby out with the bathwater' (e.g. getting rid of a 'good guy' along with some of the corrupted (yes, I said it) members).

Why are term limits so important to me? ALL of Congress have forgotten why they are in office: to serve US. Not special interests and not to vote laws that more or less purchase votes. As it relates to health care, why do they get a VIP health plan (at our expense)? Why can't they use the new health plan (in whatever form it passes)? As far as unemployment is concerned, wouldn't you like to vote on your own pay? Even as monster corporations get bashed by Congress, you don't see CEO's paying themselves MORE money when the company is losing money? I digress by complaining about Congress complaining about "corporate excess" by flying around in corporate jets--how does Madame Queen Pelosi get around? Do you think you'll ever sit next to her in Coach (heck, even on 1st class!) on Delta??? NOT!

Bottom line: Congress is broken. Let's end the fiefdoms of ALL of our "leaders" (lowercase and in quotes on purpose) and see how they fare in the real world like US. See how their tax and spend policies help them out (there are over 237 Congressional MILLIONAIRES currently serving us! Wonder how they'll like the tax code if they were private citizens again?) Let's work on getting Term Limits passed! My 2 cents and your rant for the day :)

Welcome back to 2003!

Good news-home prices are up again per Case-Shiller index.

Bad news-home prices are still down relative to prior years.

What does "prior years" mean? Try the Fall of 2003! That is the rough equivalent of where we are today, 10/27/2009. Nice, huh? While you chew on that stat, metro ATL lost 27,800 construction jobs in September. What do you think will happen when the tax credit goes away in December? I read a quote from one economist that sales are predicted to drop 5% and eventually bottom out in 2010.

SO... do you have time to contact your leaders in Congress NOW?