Market Update

This week brings us the release of eight pieces of economic data for the bond market to digest. Two of them are considered to be low importance, but we do have data being posted almost every day of the week. The only day with nothing of relevance scheduled is tomorrow. This makes it likely that we will see plenty of movement in mortgage rates the between Tuesday and Friday.

The first big report will be released early Tuesday morning when we will see January's Durable Goods Orders data. This data gives us an important measurement of manufacturing sector strength by tracking orders at U.S. factories for items expected to last three or more years. A larger drop than the 2.0% that is expected would be good news for the bond market and mortgage rates. This data is quite volatile from month to month, so large swings are fairly normal.

The next important news comes late Tuesday morning with the release of February's Consumer Confidence Index (CCI). This Conference Board index measures consumer confidence in their personal financial situations, giving us a measurement of consumer willingness to spend. Since consumer spending makes up two-thirds of the economy, related data is considered important in terms of gauging economic activity. It is expected to show a decline in confidence from 110.3 in January to 109.0 this month.

January's Existing Home Sales report will be posted late Tuesday morning. This is one of the lesser important reports of the week, along with Wednesday's New Home Sales report. They measure housing sector strength and mortgage credit demand, but usually do not have a significant impact on bond trading or mortgage rates.

The first of two revisions to the 4th Quarter GDP reading is scheduled for Wednesday morning. Analysts' forecasts currently call for a 2.3% reading, indicating that the economy was considerably weaker in the last quarter of the year than initially thought. It will be interesting to see where this figure falls and what its impact on the markets will be. Generally speaking, higher levels of activity are bad news for the bond market.

The first of Thursday's two relevant reports is January's Personal Income ad Outlays data, which gives us an indication of consumer ability to spend and current spending habits. Current fore casts call for an increase in income of 0.3% while spending is expected to rise 0.4%. Larger increases would be bad news for the bond market and could drive mortgage rates higher. Smaller than expected increases should help push mortgage rates slightly lower Thursday.

The second report of the day is the Institute for Supply Management's (ISM) manufacturing index for February. This index measures manufacturer sentiment and can have a pretty large impact on the financial and mortgage markets if it varies from forecasts. It is expected to show an increase from January's 49.3 to 50.0 last month. Rising sentiment is considered to be a negative for bonds and could lead to higher mortgage rates.

The last piece of data scheduled for release this week is the University of Michigan's revision to their Index of Consumer Sentiment for February. Current forecasts show this index revising higher than previously thought. The preliminary reading was 93.3 and i s now expected to stand at 94.0, indicating that consumer sentiment was stronger than previously thought. This index is important because it helps us measure consumer confidence.

Overall, look for plenty of movement in bond prices and mortgage rates this week. I think we will see the most movement either Tuesday or Thursday, but several of the week's reports can cause movement in rates. This would be a good week to maintain contact with your mortgage professional.Read more!
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Housing Bubble = Lending Bubble

This shows why one should be smart about their mortgage planning. One really needs to take a look at how they can maximize their outside investments instead of “putting all
their eggs in one basket” I can not tell you how many times people came to me wanting to do 100% financing on investment properties, with no reserves. In amlater article I will discuss all the implications of buying more then you can afford.

...It is indeed the financial institutions that are most at risk in the real-estate market (which is not to say that consumers and speculators won't get hurt). The lenders will bear the brunt of the pain, because in many cases, they loaned the entire purchase prices of many homes. As I have said often, the housing bubble has been more a lending bubble. It will be the impairment of the financial institutions that will stop the flow of credit to the real-estate market. In turn, that will accelerate the collapse in house prices somewhere along the way.

The story closed with a description of how slow the market has recently become in Florida -- via the following comments in an e-mail by real-estate broker Mike Morgan: “We went three days this week with not a single showing. That's incredible. I have 35 listings. We usually get 2-6 showings a day. ... I received more desperate calls from sellers than ever. One lady broke down into tears. Her husband bought two investment properties, and they are now going to lose their 'life savings' if they sell the homes in today's market.”

Ladies and gentlemen, unfortunately, a lot of people aroundthe country are going to be badly hurt as this bubble unwinds. And, after they have taken their losses, the financial institutions that were the engine behind this folly will take their own hits. 'Easy Al' Greenspan at the Fed tried to bail out one bubble with another bubble. While it bought some time, it will end in far-worse pain"Read more!
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What I do as a Mortgage Planner

Why do should you work with a Mortgage Planner instead of a Mortgage Broker?

Mortgage planners have demonstrated financial knowledge and expertise regarding the tax and financial planning implications of various mortgage and real estate investment strategies. Therefore, A Mortgage Planner can better advise you when it comes to:
Your single largest debt - mortgage
Your single largest asset - real estate equity
Life Planning needs and goals - cash flow
A Mortgage Planner is trained to help you increase your cash flow
A Mortgage Planner is skilled in helping you become debt free sooner and achieve true financial freedom
A Mortgage Planner is equipped to help you profitably invest in real estate and protect you from mortgage and real estate investment scams
A Mortgage Planner is qualified to help you implement mortgage and real estate equity strategies to help you save money on income, capital gains and estate taxes
A Mortgage Planner is committed to help you improve your credit score and get the best deal on your financing
A Mortgage Planner is able to explain the benefits and drawbacks of paying off your mortgage before retirement, and help you to determine which strategy works best under your individual circumstances
A Mortgage Planner can guide you in implementing the best home equity and mortgage strategies for divorce situations
A Mortgage Planner can help you implement a financial strategy to finance your children's education
A Mortgage Planner is equipped to better enable you to financially care for your elderly parents
A Mortgage Planner is able to help you implement beneficial mortgage and real estate equity strategies before and during job or career changes
A Mortgage Planner can help empower you to start or sell your business by implementing viable mortgage and real estate equity strategies
A Mortgage Planner is able to recommend the proper financial strategies when you are ready to buy or build a vacation home
A Mortgage Planner is committed, qualified and equipped to help you implement mortgage, cash flow and home equity strategies to build and conserve wealth when buying a home or refinancing your mortgage



Now who would you rather work with? Your typical mortgage broker or a Mortgage Planner?Read more!
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Welcome to America One Mortgage Blog

Welcome to the Blog of Hayden Gerson, a Certified Mortgage Planner. I set this blog up to keep you up to date with the latest trends in the mortgage industry, as well as to answer questions anyone might have regarding the real estate, mortgage, finance, and investing fields. I am going to tell you a little story of how I switched from a typical mortgage broker, to a mortgage planner in my next post. If you have any questions or would like to contact me, my information is below.



Hayden Gerson
Branch Manager
America One Mortgage
15303 Ventura Blvd Suite 900
Sherman Oaks, CA 91403
Office (800) 505-7554
Fax: (866) 430-9004
Cell: (323) 333-5004
Apply online and check your loan status at www.rapidfunder.com

YOUR REFERRALS ARE THE LIFEBLOOD OF MY BUSINESS, DON'T KEEP ME A SECRET.Read more!
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