Last Week in the News (March 23, 2009)

The Commerce Department reported that housing starts unexpectedly jumped 22.2% in February to a seasonally adjusted annual rate of 583,000 units. This ended the longest streak of declines in 18 years. Economists had anticipated a 3.4% decline to 450,000 units. Leading the surge was an 82% increase in the building of multifamily homes — condominiums, apartments and townhouses — to 226,000 units in February from 124,000 in January. Housing starts for single-family homes rose 1.1% to 357,000 units. Building permits for single-family homes climbed 11% in February to 373,000, compared to 336,000 in January.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending March 13 increased 21.2% to 876.9 from the previous week. Purchase volume rose 1.5% to 257.1, while refinancing applications jumped 29.6% to 4,497.6.

The Federal Reserve reported that industrial activity at the nation’s factories, mines and utilities fell by 1.4% in February. Economists had expected a decline of 1.2%. The factory-operating rate was down to 67.4% of capacity in February, the lowest level on records dating back to 1948. On a positive note, motor vehicle and parts production rose 10.2% after four consecutive months of declines.

The National Association of Home Builders/Wells Fargo housing market index in March stood at nine, the same level it was in February. The index hit a record low of eight in January. An index reading higher than 50 indicates positive sentiment about the housing market. The index has been below 50 since May 2006, and below 20 since April 2008.

On Tuesday, March 17, the Labor Department reported the producer price index, which tracks wholesale prices, rose 0.1% in February. Economists had expected a 0.8% increase.

The Labor Department reported Wednesday that consumer inflation rose 0.4% in February, the biggest one-month jump since a 0.7% rise in July 2008. The increase was largely due to an 8.3% rise in gasoline prices.

The Conference Board reported Thursday that its index of leading economic indicators fell 0.4% in February. That was slightly better than the 0.6% decline economists had expected. The index is designed to forecast economic activity in the next three to six months.

Upcoming on the economic calendar are reports on existing home sales on March 23, and durable goods orders and new home sales on March 25.

Mortgage Rates are EXTREMELY LOW!

Due to recent stimulus action by the Federal government, mortgage rates have dropped to historically low levels.

This provides a tremendous refinance opportunity to reduce your monthly mortgage payment and potentially save thousands of dollars over the life of your home loan.

Low rates also make this a GREAT time to buy a home, whether a primary residence or investment property.

We are an industry leader in financing REO (bank-owned) homes, and we are the preferred lender on more than 70,000 REO properties. Combined with super low mortgage rates, the large inventory of quality REO homes at fantastic prices have buyers extremely fired up. We’re seeing incredible deals happen every day!

Our economy may be hurting, but here’s an opportunity to use rock-bottom mortgage rates to provide you and your family with much-needed financial relief. But don’t wait – the market is still volatile, and these terrific rates may not last.

Call me today – I am here to help!

Name Change

Metrocities Mortgage will proudly take the name of its parent company, Prospect Mortgage, LLC in the second quarter of 2009. Only our name is changing – our people, locations, phone numbers, competitive loan products and great customer service will remain the same!

Last Week in the News (March 16, 2009)

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending March 6 increased 11.3% to 723.4 from the previous week. Purchase volume rose 7.1% to 253.3, while refinancing applications jumped 13.3% to 3,470.7.

On Tuesday, March 10, the Commerce Department reported that sales at the wholesale level fell 2.9% to $326.1 billion in January, the lowest level in more than three years. The Commerce Department also reported that total business inventory decreased 0.7% in January. This follows a revised 1.5% decrease in December 2008.

According to the ICSC-Goldman Sachs index, store sales rose 0.2% in the first week of March compared to the previous week. Compared to a year ago, retail sales were down 0.9%.

The Labor Department said initial claims for unemployment benefits rose to 654,000 from the previous week's upwardly revised figure of 645,000. In the first week of March, the number of people continuing to claim jobless benefits increased by 193,000 to 5.317 million.

The Commerce Department reported that retail sales dropped 0.1% in February following a revised 1.8% jump in January. Economists had anticipated a 0.4% drop in February. The revised estimate for January sales was almost double the initial estimate of 1%. The upward revision, combined with the better than expected February report, left some analysts feeling the economy is starting to stabilize. Excluding automobiles, retail sales posted an unexpected 0.7% gain in February.

Upcoming on the economic calendar are reports on the housing market index on March 16, housing starts on March 17 and the index of leading economic indicators on March 19.

The American Recovery and Reinvestment Act

On February 17, President Barack Obama signed into law a $787 billion economic stimulus plan. That package includes many provisions that may directly benefit you:

Tax Breaks. Individuals earning $75,000 or less will receive a tax credit of $400 on payroll taxes paid in 2009 and 2010. Married couples are eligible for an $800 credit. The tax credit would phase out for single taxpayers with adjusted gross incomes (AIG) of $75,000 to $90,000 and married couples with AGI of $150,000 to $190,000. Retirees who receive Social Security benefits and individuals on disability would receive a one-time tax credit of $250.

Healthcare. The bill provides a subsidy to cover 65% of COBRA premiums for up to nine months. The subsidy is limited to workers who were laid off between September 1, 2008, and December 31, 2009.

Education. Parents of college students will be eligible to claim a tax credit of up to $2,500. Available in 2009 and 2010, the credit covers tuition, fees and course supplies such as textbooks. The credit phases out for individuals with AGI of $80,000 to $90,000 and married couples with AGI of $160,000 to $180,000.

New Housing. First-time homebuyers are eligible for an $8,000 tax credit, which does not have to be repaid unless you sell your home within three years. The credit is available for purchases between January 1, 2009, and before December 1, 2009. The credit phases out for individuals with AGI of $75,000 to $95,000 and married couples with AGI of $150,000 to $170,000.

Green Homes. New tax credits are now available for green home improvements on a principal residence starting January 1, 2009, through December 31, 2010. The credit covers 30% of qualifying upgrade costs, or a maximum amount of $1,500. Qualifying modifications must meet a certain efficiency level to be eligible for the credit. For record keeping, experts advise that you retain all receipts.

New Cars. New car buyers can deduct the sales tax from their AIG on purchases of up to $49,500. The deduction is limited to car and truck purchases made on the date of the enactment of the bill through December 31, 2009. The credit phases out for individuals with AGI above $125,000 and married couples with AGI above $250,000.

Green Cars. From January 1, 2009, to December 31, 2010, there is a tax credit for plug-in hybrid vehicles. This credit — based on the capacity of the battery system — for electric hybrid cars and trucks starts at $2,500 and is capped at $7,500. Previous tax credits for electric vehicles would have been phased out after 250,000 total vehicles. The current stimulus package has increased that number to 200,000 vehicles per manufacturer.

Always consult your tax advisor for tax information and advice.

Last Week in the News (March 2, 2009)

On Tuesday, February 24, the Conference Board reported that its consumer confidence index fell 12.4 points to 25 in February. Economists had expected the index to decrease to 35.5. In February 2008, the index was at 76.4. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Standard & Poor’s/Case-Shiller 20-city housing price index dropped a record 18.5% from December 2007 to December 2008. Since August 2006, the 20-city index has declined every month.

On Wednesday, the National Association of Realtors said existing home sales fell 5.3% in January to a seasonally adjusted annual rate of 4.49 million, from 4.74 million in December. Economists had expected an annualized rate of 4.79 million homes.

Orders for durable goods fell for a record sixth consecutive month in January. The Commerce Department said orders dropped by 5.2%, more than twice as much as forecast.

The Commerce Department said Thursday that new home sales fell 10.2% in January to a seasonally adjusted annual rate of 309,000. It was the slowest monthly pace since recordkeeping began in 1963.

The Labor Department said initial claims for unemployment benefits rose to 667,000 from the previous week's figure of 631,000. The number of people continuing to claim jobless benefits increased by 114,000 to 5.11 million in the week ended February 14.

Upcoming on the economic calendar are reports on construction spending on March 2, pending home sales on March 3 and factory orders on March 5.

Last Week in the News (February 23, 2009)

On Tuesday, February 17, it was announced that the National Association of Home Builders/Wells Fargo housing market index rose one point to nine in February, after falling to an all-time low of eight in January. An index reading higher than 50 indicates positive sentiment about the housing market.

On Tuesday, President Barack Obama signed into law a $787 billion economic stimulus plan designed to spur consumer spending and create millions of jobs. The American Recovery and Reinvestment Act contains numerous provisions: roughly $300 billion in tax breaks for individuals and businesses, more than $250 billion in aid to distressed states, and almost $200 billion to upgrade the nation’s infrastructure. The package also includes an $8,000 tax credit for first-time homebuyers, which does not have to be repaid unless you sell your home within three years.

The Commerce Department reported Wednesday that construction of new homes and apartments fell 16.8% in January to a seasonally adjusted annual rate of 466,000 units, the lowest on record. Economists had anticipated a decline to 530,000 units. Meanwhile, building permits fell 4.8% to a rate of 521,000 units.

The Federal Reserve reported Wednesday that industrial production at the nation’s factories, mines and utilities fell 1.8% in January. Economists had expected a 1.5% decline. Manufacturing, which accounts for about four-fifths of industrial production, decreased 2.5%, utilities posted a 2.7% gain and mining output dipped 1.3%.

On Wednesday, Obama unveiled the $75 billion Homeowner Stability Initiative. The multi-step plan would help struggling homeowners by providing incentives to lenders, servicers, mortgage holders and borrowers to help modify mortgage loans. The goal is to prevent as many as nine million Americans from losing their homes to foreclosure.

The Labor Department reported the producer price index, which tracks wholesale prices, rose by 0.8% in January. It was the largest increase since July 2008. Economists had expected a 0.2% increase.

Upcoming on the economic calendar are reports on consumer confidence on February 24, and durable goods orders and new home sales on February 26.

How to Lower Your Property Taxes

Because your property tax is directly related to the value of your home, you have an opportunity to lower your property taxes* if your community has experienced declines in real estate values.

County authorities determine the taxation on a given property by multiplying the property tax rate by the property value. For example, if your home value is $800,000 and the property tax rate is 1%, then your property tax bill is $8,000 annually.

If market conditions have resulted in a decline in the value of your home, it is your right to have your property reassessed and to lower your tax rate. Your county will not initiate this process for you; you need to submit a proposal to your county tax assessor. The process takes between 30 and 45 days. Two methods are available to you:

• Do it yourself: Contact your county assessor’s office and download the forms from its website. You will need to hire an appraiser to help prepare the evaluation of your property to submit. There are multiple websites and books to guide you through this process.
• Hire a tax relief processor: This company should have experienced professionals who write, prepare, and submit your tax relief proposal to the tax assessor’s office for you. Look for a company that offers to waive any upfront fees in exchange for a percentage, usually around 50%, of your first year’s savings. The company will send an appraiser and submit all of the proper documents for you.

Although there are several steps involved in getting your tax rate reassessed, many homeowners have saved thousands of tax dollars annually by pursuing a reassessment.

*Always consult your tax advisor for tax information and advice.

Last Week in the News (February 16, 2009)

The Commerce Department reported that retail sales rose 1% in January after falling for six straight months. Economists had expected a drop of 0.8%.

Wholesalers reduced their inventories by 1.4% in December. The decline was twice as much as forecasted and the steepest since recordkeeping began in January 1992. It also was the fourth straight monthly decline. Sales at the wholesale level fell 3.6% in December after a 7.3% decline in November.

The Commerce Department reported Wednesday that the trade deficit fell 4% to $39.9 billion in December, from $41.6 billion in November. It was the lowest level in nearly six years.

According to RealtyTrac foreclosure filings — which include default notices, auction sale notices and bank repossessions — were reported on 274,399 homes during the month of January 2009, a 10% decrease from the previous month but still up 18% from January 2008.

New applications for unemployment benefits fell by 8,000 to 623,000 last week, the Labor Department said Thursday. However, the number of people continuing to claim jobless benefits rose to 4.81 million in the week ended January 31 from 4.78 million the prior week.

Upcoming on the economic calendar are reports on the housing market index on February 17, housing starts on February 18 and the index of leading economic indicators on February 19.

Happy Presidents' Day

On Presidents’ Day we celebrate the birthdays of George Washington (February 22, 1732) and Abraham Lincoln (February 12, 1809).

Did you know:

• The Mount Rushmore National Memorial features portraits of U.S. Presidents George Washington, Thomas Jefferson, Theodore Roosevelt, and Abraham Lincoln. The sculpture is only about 60% done, though nearly 400 workers spent over 14 years on the project. Originally, the plan was to carve the figures from head to waist, but insufficient funding forced the carving to end.
• Abraham Lincoln, our 16th president (1861 – 1865), presided over the Civil War, where he never let the world forget the larger issue of the conflict: the abolition of slavery. In 1863, he issued the Emancipation Proclamation that declared forever free those slaves within the Confederacy.
• George Washington earned the designation Father of His Country for his great leadership, both as Commander in Chief of the Continental Army and in unifying the new nation under a central government.

Last Week in the News (February 9, 2009)

On Monday, February 2, the Institute for Supply Management said its manufacturing index rose in January to 35.6, up from a record low of 32.9 in December. Any reading below 50 signals contraction. Economists had expected a reading of 32.6.

The National Association of Realtors (NAR) reported that its pending home sales index, a forward-looking indicator based on contracts signed, rose 6.3% to 87.7 in December 2008. NAR chief economist Lawrence Yun said the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he said.

The Commerce Department reported total construction spending fell 1.4% in December, more than the 1.2% decline economists had expected. It was the third consecutive monthly decline. In 2008, construction spending fell by a record 5.1% compared to a decrease of 2.6% in 2007.

Consumer spending fell 1% in December after a 0.8% decline in November. This marks a record sixth consecutive monthly decline in consumer spending. For the year, consumer spending rose by 3.6%, the smallest annual increase since 1961. On a positive note, the savings rate rose to 3.6% in December. That was the highest level since tax rebate checks pushed the rate up to 4.8% in May 2008.

On Thursday, the Labor Department said new applications for unemployment benefits rose last week to a seasonally adjusted 626,000 from a revised figure of 591,000 the previous week. Economists had anticipated a reading of 583,000.

On Friday, the Labor Department reported that the nation’s unemployment rate increased to 7.6% in January from 7.2% in December. Businesses cut 598,000 jobs in January, the biggest monthly decline since December 1974.

In other economic news, the Commerce Department said factory orders declined by 3.9% in December, a record fifth straight drop.

Upcoming on the economic calendar are reports on retail sales on February 12 and consumer sentiment on February 13.

Last Week in the News (February 2, 2009)

On Monday, January 26, the National Association of Realtors said existing home sales rose 6.5% in December to a seasonally adjusted annual rate of 4.74 million units. Economists had expected an annualized rate of 4.4 million units and suggested that bargain prices are bringing buyers back into the market.

The median existing home price in December 2008 was down 15.3% to $175,400 from December 2007. It was the biggest year-over-year drop since recordkeeping began in 1968.

The Conference Board said its leading indicators of future economic activity rose 0.3%, a better reading than the 0.3% drop economists had expected. The index indicates the direction of the economy over the next three to six months and the reading was the first gain in six months.

On Tuesday, the Standard & Poor’s/Case-Shiller 20-city housing price index dropped a record 18.2% from November 2007 to November 2008. Since August 2006, the 20-city index has declined every month.

Consumer confidence hit a record low in January. The Conference Board reported that its consumer confidence index fell to 37.7 in January from a revised 38.6 in December. In January 2007, the index was at 87.3.

The Commerce Department said Thursday that new home sales fell 14.7% in December to a seasonally adjusted annual rate of 331,000. It was the slowest monthly pace on records dating back to 1963.

Orders for durable goods fell for a fifth consecutive month. The Commerce Department said orders dropped by 2.6%, worse than the 2% decline economists had expected.

Gross domestic product — the total output of goods and services produced in the United States — decreased at an annual rate of 3.8% in the fourth quarter of 2008, the Commerce Department announced Friday. It was the lowest pace since the first quarter of 1982, when output contracted 6.4%. Economists had expected a much worse 5.5% contraction.

Upcoming on the economic calendar are reports on pending home sales on February 3 and factory orders on February 5.

Buy a Home For Only 3% Down!

Buy a Home For Only 3% Down!

Fannie Mae, the agency sponsored by the U.S. government to help make housing more affordable to all Americans, now offers HomePath, a special new home loan to finance the sale of its current real estate owned (REO) properties across the country.

We are among a select group of mortgage lenders nationwide who can offer the HomePath loan to get you into one of these homes!

Here are the key benefits of a HomePath Mortgage Loan:

• Only 3% down required on a primary residence property
• No mortgage insurance required
• No property appraisal required
• Only 10% down on 1-2 unit investment properties
• Get up to 6% in seller concessions on primary residence properties

In addition to being one of the few lenders approved to offer the HomePath loan, we’re experts with REO transactions. I have been specially trained to handle the specific requirements of an REO transaction. I’ll keep the process smooth and stress-free.

Search for Fannie Mae REO properties eligible for HomePath financing at: http://reosearch.fanniemae.com/reosearch/

Contact me today to learn more about the HomePath program!

Last Week in the News (January 26, 2009)

On Wednesday, January 21, it was announced that the National Association of Home Builders/Wells Fargo housing market index fell one point to eight in January, the lowest level recorded since the index was created in 1985. The index held steady at nine for December and November and was 14 in October. An index reading higher than 50 indicates positive sentiment about the housing market. The index has been below 50 since May 2006, and below 20 since April 2008.

The Labor Department reported Thursday that new applications for jobless benefits increased by 62,000 to a seasonally adjusted 589,000 in the week ended January 17 from a revised 527,000 the prior week. Economists had expected a reading of 543,000. U.S. employers cut 2.6 million jobs last year. The total number of people collecting unemployment benefits increased to 4.607 million.

The Commerce Department reported that housing starts fell 16% in December to a seasonally adjusted annual rate of 550,000 units, the lowest on record. It was a much bigger decline than the 610,000 economists had expected. This follows an upwardly revised rate of 651,000 units in November and 791,000 units in October. Meanwhile, building permits fell 10.7% in December to 549,000 units, also a historic low, from 615,000 units in November.

In other news, the U.S. Treasury is now demanding monthly reports from the banks that received the most capital from the government’s $700 billion Troubled Asset Relief Program. Neel Kashkari, the program administrator, wrote to Citigroup, Bank of America, Wells Fargo and 17 other financial institutions on January 16 seeking figures on business and consumer loans.

Upcoming on the economic calendar are reports on existing home sales on January 26, new home sales on January 29 and gross domestic product on January 30.

In the News (January 20, 2009)

On Monday, The Mortgage Bankers Association reported its seasonally adjusted index of mortgage applications, for both purchase and refinance loans, on the week ending January 9, increased 15.8% to 1,324.8. That's the highest reading since the week ending July 11, 2003, when it reached 1,358.2. The refinance index increased 25.6% to 7414.1, the highest reading since the week ending June 27, 2003, when it reached 8,599.1.

The Commerce Department reported that retail sales dropped 2.7% in December compared to a revised 2.1% decrease in November. Economists had anticipated a 1.2% drop in December. The decline was the sixth straight monthly drop. For the year, retail sales fell 0.1%. It was the first time the annual retail sales figure has fallen on government records going back to 1992. Retail sales increased 4.1% in 2007.

The Commerce Department also reported that total business inventory decreased 0.7% in November. It was the largest decline in seven years and the third straight month companies sought to cut their inventory.

On Thursday, the Labor Department said new applications for unemployment insurance rose last week to a seasonally adjusted 524,000 from a revised figure of 470,000 the previous week. Economists had anticipated a reading of 500,000.

The Labor Department reported the producer price index, which tracks wholesale prices, fell 1.9% in December. That followed a drop of 2.2% in November and a record 2.8% drop in October. The decreases were largely attributed to falling energy costs. In December, energy prices dropped 9.3%, led by a record 25.7% decrease in the cost of gasoline. The government said wholesale prices fell by 0.9% in 2008 compared to a 6.2% increase in 2007.

Upcoming on the economic calendar are reports on the housing market index on January 21 and housing starts on January 22.

Martin Luther King, JR. Day - January 19, 2009

In celebration of the man, his courage and his dream.

"I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin, but by the content of their character."

Did you know:

• In 1964, at age 35, Martin Luther King, Jr., became the youngest person to receive the Nobel Peace Prize for having "contributed the most to the furtherance of peace among men." When he learned of the honor, he announced that he would donate the prize money, $54,123, to the civil rights movement.
• It took 15 years to create the federal Martin Luther King, Jr., holiday. Congressman John Conyers, a Democrat from Michigan, first introduced legislation for a commemorative holiday four days after King was assassinated April 4, 1968.
• Congress passed the holiday legislation in 1983, which was then signed into law by President Ronald Reagan.
• In 1994, Congress passed the King Holiday and Service Act, designating the King Holiday as a national day of volunteer service. Instead of a day off, you can make it a day on. If you would like to register your service project, find a volunteer opportunity, or create your own neighborhood, family or individual project, visit www.mlkday.gov.

Tax-Advantaged Tools Part Two: Health Savings Accounts

Created in 2003, Health Savings Accounts (HSAs) help individuals save for future qualified medical and retiree health expenses on a tax-free basis.

The biggest advantages of HSA accounts are the tax benefits: you put in pretax dollars, it compounds free of taxes, and withdrawals are tax free if they are used for qualified expenses. If the money is used for other than qualified medical expenses, the expenditure will be taxed and, for individuals who are not disabled or older than 65, subject to a 10% penalty.

Another advantage is any HSA money not spent by the end of the year rolls over to the next year, in contrast to Flexible Spending Accounts (FSA). Also, there are no income limits on who may contribute to an HSA.

To be eligible for an HSA you must be enrolled in, or covered under, an HSA-eligible health plan or what is called a High Deductible Health Plan (HDHP). The HDHP is an inexpensive plan that will cover you should your medical expenses exceed the funds you have in your HSA. The deductible in 2009 is at least $1,150 for an individual and $2,300 for family coverage.

Opening an HSA is a two-step process: you must have the HDHP, and then you can sign-up for an HSA. An HSA-eligible health plan does not have to be an employer-sponsored arrangement. Banks, credit unions and insurance companies also provide HSAs.

There are additional requirements for eligibility: you cannot be claimed as a dependent on anyone else’s tax return; you cannot be entitled to Medicare benefits; and you cannot be enrolled in an FSA or be covered under a spouse’s FSA. You are allowed to have automobile, dental, vision, disability and long-term care insurance at the same time as an HDHP.

Some additional things you need to know about HSAs:

• For 2009, the maximum HSA contribution is $3,000 for individual coverage and $5,950 for family coverage. Those who’ll be 55 or older as of December 31, 2009, can contribute an extra $1,000.
• Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.
• You can use your HSA to pay health insurance premiums if you are collecting Federal or State unemployment benefits, or have COBRA continuation coverage through a former employer

The content of this email is for informational purposes only. Be sure to speak to your financial or tax advisor before making important decisions about your personal finances.

Last Week in the News (January 12, 2009)

On Monday, January 5, the Commerce Department reported total construction spending fell 0.6% in the month of November. Economists had anticipated a much steeper drop of 1.3%. The primary cause for the drop was residential construction spending, which fell in November by 4.2% to a seasonally adjusted annual rate of $328.3 billion. Residential construction spending is down 23.4% from a year ago.

On Tuesday, the National Association of Realtors said pending sales for existing homes in November fell to the lowest level in the eight-year history of its index. The trade group said its seasonally adjusted index fell 4% to 82.3 in November from a revised 85.7 in October. Economists expected a reading of 88.

The Commerce Department reported factory orders declined by 4.6% in November, nearly double the 2.5% drop economists expected. Orders have been falling since August, with a 6% drop in October, the biggest decline in eight years. The report showed that demand for durable goods, items expected to last three or more years, fell a modest 1.5% in November. Durable goods dropped 8.5% in October. Demand for nondurable goods, items such as food, paper and petroleum products, dropped by 7.4% in November following a 3.8% decline in October.

The Labor Department said on Thursday the number of people continuing to claim jobless benefits rose by 101,000 to 4.61 million, above the 4.5 million economists expected.

On Friday, the Labor Department reported that the nation’s unemployment rate increased to 7.2% in December from 6.8% in November as businesses cut 524,000 jobs. Employers are also cutting workers’ hours. The average work week in December fell to 33.3 hours, the lowest level on record dating back to 1964.

In other news, the New York-based real estate data company Radar Logic Inc. reported that motivated sales, which include foreclosure auctions and banks selling homes taken over for non-payment, in the 25 largest U.S. metropolitan areas increased 193% between January 2008 to October 2008.

Upcoming on the economic calendar are reports on retail sales on January 14 and consumer inflation on January 16.

Start 2009 by Saving a Lot of Money

Super-Low Mortgage Rates and REO Properties Offer Great Opportunities

Although the United States is going through tough economic times, it’s important to remain aware of and act on opportunities that create value for your family.

One such opportunity happening right now is super-low mortgage rates. Various elements of the federal government’s rescue and stimulus legislation have resulted in mortgage rates that are lower than we’ve seen in decades. If you are looking to buy a home or refinance your current mortgage to permanently lower your monthly payment, NOW IS THE TIME TO ACT!

A massive inventory of foreclosed homes is the second major opportunity available now. These homes are also referred to as real estate owned (REO) property, the term that banks use for homes they had to take back.

Our company is the preferred lender for several national banks and other institutions that own tens of thousands of REO properties. Buying an REO property can be tricky if you are dealing with an inexperienced lender and real estate agent. However, we are one of the nation’s leading experts on REO properties, and we know how to manage a smooth REO transaction that will create maximum value for your family.

Low mortgage rates and a large selection of low-priced, quality homes don’t come around very often! The most important action that you can take is to CALL ME TODAY to get started. Along with low rates, we’ve also seen great volatility in the market, so these opportunities may not last. Let’s get you and your family going on the road to significant savings and wealth-building opportunity. Please contact me today!

Last Week in the News (January 5, 2009)

The Labor Department said initial claims for state unemployment insurance benefits fell to a seasonally adjusted 492,000 in the week ending December 27 from 586,000 the prior week. It was the steepest decline since 1992. That decline, however, didn’t necessarily signal an improvement in labor conditions. Analysts said the drop — while bigger than economists had expected — reflects seasonal adjustments due to the holidays.

On Monday, December 28, the government reported that the interest rate yield on six-month U.S. Treasury bills at the weekly auction dropped to its lowest level on record. The Treasury Department said it auctioned $27 billion in six-month bills at a yield of 0.25%. Treasury rates have fallen to historic lows as the financial turmoil has triggered a rush by investors to the safety of government securities.

According to MasterCard Inc.’s SpendingPulse, total retail sales, excluding gasoline and autos, were down between 2.5% and 4% this holiday season. That would be the largest drop since 1969. Sales of electronics and appliances dropped 26% compared to last year. Retailers typically generate as much as 40% of their annual sales during the holiday season.

On Tuesday, the Conference Board reported that its consumer confidence index fell to 38 in December from 44.7 in November. Economists had expected the index to rise to 45.2.

The Standard & Poor’s/Case-Shiller 20-city housing index fell by 18% from October 2007 to October 2008, the largest drop on record. The 10-city index dropped 19.1%, its biggest decline in its 21-year history.

Upcoming on the economic calendar are reports on construction spending on January 5 and factory orders on January 6.