Thursday, May 22, 2008
Monday, April 14, 2008
Finance Update April 14, 2008 - Brentwood TN Real Estate
Mortgage bond prices rose slightly last week pushing mortgage interest rates lower. Most of the data showed signs the economy continued to struggle. Unfortunately the Fed minutes showed increased inflation concerns, which tempered any major improvements in mortgage interest rates. Stocks bounced up and down, which resulted in continued whipsaw trading in mortgage bonds.
For the week, interest rates on government and conventional loans fell by about 1/8 to 1/4 of a discount point.
The consumer price index data Wednesday will be the most important event this week. The potential for market volatility is high surrounding the other releases as the economy continues to struggle.
Economic Factors
Economic Indicator Release Date Time Consensus Estimate Analysis
Retail Sales Monday, April 14, 2008 Up 0.1% Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.
Producer Price Index Tuesday, April 15, 2008 Up 0.4%, Core up 0.2% Important. A measure of inflation at the producer level. Lower than expected increases may lead to lower rates.
Consumer Price Index Wednesday, April 16, 2008 Up 0.3%, Core up 0.2% Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.
Housing Starts Wednesday, April 16, 2008 Down 3.8% Important. A measure of housing sector strength. Larger than expected decrease may lead to lower rates.
Industrial Production Wednesday, April 16, 2008 Down 0.1% Important. A measure of manufacturing sector strength. A larger than expected decrease may lead to lower rates.
Capacity Utilization Wednesday, April 16, 2008 80.4% Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower rates.
Fed "Beige Book" Wednesday, April 16, 2008 None Important. This Fed report details current economic conditions across the US. Signs of weakness may lead to lower rates.
Leading Economic Indicators Thursday, April 17, 2008 Up 0.1% Important. An indication of future economic activity. Weakness may lead to lower rates.
Producer Price Index
The producer price index is a measure of prices at the producer level and is important because it is the first inflation report to be released each month. Investors are typically able to gain an initial indication of inflationary pressures from the release. If producer prices are increasing, there is a tendency for producers to pass the increases on to consumers in the form of higher priced goods. It is important to note that the PPI is only a measure of goods, while the consumer price index is a measure of goods and services. It is possible for the price of goods to remain stable, while the price of services increases. In this scenario PPI would do little to warn of a change in inflationary pressures, while the CPI report would provide an indication of the inflationary effects of the service component. This distinction between the two reports shows why most analysts view the CPI as a more accurate indicator of inflation. Nevertheless, market participants still gain valuable insight into potential volatility in the financial markets from the PPI.*Information courtesy Tonya Esquibel, WR Starkey Mortgage, Franklin TN*
Vanessa Stalets
Brentwood TN Real Estate
RE/MAX Elite
615-957-6333/615-661-4400
Downsizing in Brentwood TN? Tips to Make it Less Painful!
Years ago, it was nothing to have four or five children in a family, or more. This meant finding the biggest house for the least amount of money. The more square footage and the more bedrooms the better. As the children grew up and moved away, the house became even larger. The only time it seemed crowded was during the holidays and even then there was plenty of room for everyone.Now the house just is too big and there is so much that must be done to maintain 
it, the holidays are no reason to keep that lumbering giant in Brentwood, Franklin or Nashville TN. It's time to downsize. This can actually be a fun time in your life. It gives you the time to reflect on the many memories you have from the old house, while you plan for the exciting move to the new one! Packing can be a fun way to share some of those memories. One way to do this is to have a packing party just for family.
Before you begin, make sure you know what you are taking with you and what you are not going to need. You can do this by packing some of the things away on your own first, mainly those items you know you will want to take with you. Then you can call the family in to help. Make sure the grandchildren are included in the invitation. Let the family know this is going to be a whole day affair.
Start out by asking everyone to bring their own box. This is where the fun begins, a trip
down memory lane can cause some great laughter. As your family arrives, explain you are going to be selling the house and you are packing up what you are not going to be taking with you. As the kids wander from room to room it is their job to explain about the stain on the living room carpet that just mysteriously appeared. They can also talk about how the unwanted house guest "No Body" kept doing things behind everyone's back. This makes for much hilarity and you may just discover the answers to years old mysteries!
As each item is packed up and placed away, the children will packing their own memories as well. These can be shared with other members of the family and the new generation too. The trophies which have gathered dust can be bragged about once again. The old favorite toys in the attic can be brought back to life with the grand kids in the house to listen and watch, passing on old family secrets and joy.
Downsizing does not have to be a sad time. It can be a time when the entire family 
reminisces about what it was like growing up with each other in your home. The dishes used at holiday dinners, or why there are only three legs on the table that are straight can really make the experience a great way to say goodbye to a family home with lots of history.
As each family member packs up a box, make sure there is one they are going to take home filled with the sentimental treasures they had when they were growing up. This is a 
wonderful way for a part of the old house will remain with each of them for years to come. Although a tear or two may be shed, everyone will agree that being a part of the move and having the chance to share the sweet memories together is a heart warming way to make the ending of a chapter in your and their lives easier and the beginning of a new one more fun!
Call now to find out how I can help you sell
your current home and find your new dream home!
Serving Brentwood, Franklin and Nashville TN.
Vanessa Stalets
Brentwood TN Real Estate
RE/MAX Elite
615-957-6333/ 615-661-4400
Monday, March 17, 2008
Finance Market Update, March 17, 2008 - Brentwood TN Real Estate
Mortgage bond prices rose last week pushing mortgage interest rates lower. Trading was volatile the entire week. The Fed stepped in absorbing some of the oversupply of mortgage bonds. Inflationary pressures were eased with the consumer price index lower than expected. The financial markets were rattled a bit as the Fed and JPMorgan Chase helped Bear Stearns with funding.
For the week, interest rates on government and conventional loans fell by about a full discount point.
The Fed meeting Tuesday will be the most important event this week. The potential for market volatility is very high surrounding the Fed meeting. Industrial production, capacity use, housing starts, producer price index, and leading economic indicators data will also be important.
Economic Factors
Economic Indicator Release Date Time Consensus Estimate Analysis
Industrial Production Monday, March 17, 2008 Down 0.1% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Capacity Utilization Monday, March 17, 2008 81.3% Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower mortgage interest rates.
Housing Starts Tuesday, March 18, 2008 Down 1.7% Important. A measure of housing sector strength. Larger than expected decreases may lead to lower rates.
Producer Price Index Tuesday, March 18, 2008 Up 0.3%, Core up 0.2% Important. An indication of inflationary pressures at the producer level. Lower figures may lead to lower rates.
Fed Meeting Adjourns Tuesday, March 18, 2008 75 basis point cut Important. Fed expected to cut rates. Volatility may surround the adjournment of this meeting.
Leading Economic Indicators Thursday, March 20, 2008 Down 0.3% Important. An indication of future economic activity. Weakness may lead to lower rates.
Philadelphia Fed Survey Thursday, March 20, 2008 None Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates
Fed Meeting
The United States central bank, the Federal Reserve, coordinates the borrowing and lending activities of federally chartered banks. The principal reason the Federal Reserve was created was to reduce severe financial crises. One way of accomplishing this goal is to control the amount of money that flows through the economy. By manipulating the US money supply, the Fed influences inflation, unemployment, and the level of US economic activity. The Fed has a variety of tools that it uses to control the money supply, but its chief policy tool is the manipulation of short-term interest rates.
All eyes will be focused on the Fed meeting Tuesday. Most analysts predict a 75 basis point rate cut following the consumer price index data showing tame inflation. Others are less certain that inflation is in check and view the 0.5% decrease in the energy price component of the consumer price index with some skepticism. Oil prices remain high and the dollar weaker, which do little to help inflation expectations and "limit(s) flexibility" as Fed Chairman Bernanke indicated earlier this year.
Keep in mind that a Fed rate cut does not automatically mean mortgage interest rates will improve, as has been evident from recent history. The Federal Reserve has direct control over the level of short-term interest rates. The Fed’s influence over longer-term interest rates is less certain. A cautious approach to float/lock decisions is prudent heading into the Fed meeting this week. Market volatility is likely.
*Information courtesy of Tonya Esquibel, WR Starkey Mortgage, Franklin TN*
Vanessa Stalets
Brentwood TN Real Estate
RE/MAX Elite
615-957-6333/ 615-661-4400
Saturday, March 8, 2008
Bringing Integrity And Results HOME To You!
Call now to find out how I can help you purchase your dream home, sell your current home, relocate or upgrade! Integrity is the foundation and Results are what you get! This is the time to buy, ask me how and why, also receive a FREE market guide when you call before March 31, 2008! You have nothing to lose except your dreams, believe in them and I will help them come true!
Vanessa Stalets
RE/MAX Elite
615-957-6333
615-661-4400
