Money, Debt, Real Estate, and Credit talk with Jeff Underwood

This is classic!!

Click Here to hear Charles Ferguson’s acceptance speech where he points the finger at Wall Street. It is classic!!

Also watch the trailor from “Inside Job”. If you have not seen this documentary, you are missing out.

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Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood – The Ugly Money Show
iTunes – The Ugly Money Show

Jeff Underwood, The Street Economist
The Ugly Truth About Money

Mortgage markets improved last week as Wall Street’s concerns about the Middle East trumped its fears of inflation. Conforming and FHA mortgage rates in Arizona fell to a 3-week low.

Last week marked the second straight week in which mortgage rates fell, a streak that follows four straight weeks of climbing mortgage rates.

It’s been a bout of good fortune for rate shoppers and home buyers.

In addition, according to Freddie Mac’s weekly mortgage rate survey, the average spread between conforming 30-year fixed rate mortgages and 5-year ARMs has widened further.

The two benchmark products are now separated by 1.15%. It’s the largest interest rate gap in recent history; one that yields a monthly payment difference of $68 per $100,000 borrowed.

This week, it’s unclear in what direction mortgage rates will go.

On one side, there’s ongoing unease related to protests in Libya and its neighbors, and that’s driving safe haven buying.

“Safe haven buying” describes when investors flee risky situations and put their money in the safest places possible. Mortgage bonds are one such place, so when safe haven buying is in effect, bond demand is high so bond yields (i.e. mortgage rates) fall.

On the other side, inflation is ramping up.

Recent economic data shows that the economy is expanding, and the Federal Reserve is maintaining its accommodative growth policies. Therefore, this week, the key economic event will be Friday’s jobs report. if job creation is high, expect inflation fear to re-ignite, and mortgage rates to rise.

Another risk factor for this week’s rate shoppers is that tensions begin to settle in the Middle East, or that Wall Street gets more comfortable with rising oil prices. If that happens, safe haven buying will subside and mortgage rates will resume rising.

There appears to be more reasons for mortgage rates to rise this week than for them to fall. Plan accordingly.

If you have not locked a mortgage rate yet, this week may represent your last chance to get a low one. Talk to your loan officer and make a plan.

http://theuglytruthaboutmoney.com/
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Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood – The Ugly Money Show
iTunes – The Ugly Money Show

Jeff Underwood, The Street Economist
The Ugly Truth About Money

http://theuglytruthaboutmoney.com/
http://www.facebook.com/TheUglyTruthAboutMoney

The RICH keep getting richer while the rest of us struggle!

Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood  – The Ugly Money Show
iTunes – The Ugly Money Show

Jeff Underwood, The Street Economist
The Ugly Truth About Money

Not all housing reports are sunny, it seems.

In its monthly New Home Sales release, the U.S. Department of Commerce showed a 13 percent drop-off in annualized new construction sales between the months of December and January.

It’s the biggest one-month drop in New Home Sales since May 2010.

In addition, the supply of new homes for sale spiked higher to 7.9 months last month.  ”Home supply” is defined as the amount of time it would take to sell the complete “for sale” inventory at the current pace of sales.

In December, the supply measured just 7.0 months,

Don’t fret the news, however. For buyers of new construction in Gilbert , falling New Home Sales figures can be terrific. Weaker markets put pressure on the nation’s home builders to sell their respective homes more quickly. To reach that goal, builders often discount prices and/or offer free upgrades to buyers.

Some of that action may already be in effect.

Despite falling volume, the New Home Sales report showed that new homes are selling faster than in recent months. The median time required to sell a newly-built home dropped to 7.8 months in January – a figure well below January 2010′s reading of 13.9 months.

It suggests that builders are getting better at locating buyers, and moving property.

Therefore, if you’re shopping for a new construction and see one worth buying, get to it. Not only will the home likely sell soon if it’s priced right, but an increase in mortgage rates will make the home more expensive to finance.

Every 0.250% increase to rates adds $15 monthly per $100,000 borrowed.

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Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood – The Ugly Money Show
iTunes – The Ugly Money Show

Jeff Underwood, The Street Economist
The Ugly Truth About Money

http://theuglytruthaboutmoney.com/
http://www.facebook.com/TheUglyTruthAboutMoney

What are American families spending their extra money on??

Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood  – The Ugly Money Show
iTunes – The Ugly Money Show

Jeff Underwood, The Street Economist
The Ugly Truth About Money

http://theuglytruthaboutmoney.com/
http://www.facebook.com/TheUglyTruthAboutMoney

Home prices fall to the lowest level since 2002!  What do you think about these numbers??

Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood  – The Ugly Money Show
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Jeff Underwood, The Street Economist
The Ugly Truth About Money

Mortgage rates are up 0.875% since mid-November, causing home buyer purchasing power across Gilbert to fall more than 10 percent since.

Persistent concerns over inflation are a major reason why and this week’s Consumer Price Index did little to quell fears. CPI rose for the third straight month last month.

Wall Street was not surprised.

As the economy has picked up steam since late-2010, the Federal Reserve has held the Fed Funds Rate near zero percent, and kept its $600 billion bond plan moving forward. The Fed believes this is necessary to support the economy in the near-term.

Over the long-term, however, Wall Street worries that these programs may cause the economy may expand too far, too fast, and into runaway inflation.

Inflation pressures mortgage rates to rise.

Inflation is an economic concept; defined as when a currency loses its value.  Something that used to cost $1.00 now costs $1.05, for example. It’s not that the goods themselves are more expensive, per se. It’s that the money used to buy the goods is worth less.

Because of inflation, it takes more money to buy the same amount of product.

This is a big deal in the mortgage markets because mortgage rates come from the price of mortgage bonds, and mortgage bonds are denominated, bought, and sold in U.S. dollars. When inflation in present, the dollar loses its value and, therefore, so do mortgage bonds.

When mortgage bonds lose value, mortgage rates go up.

Inflation fears are harming Arizona home buyers. The Cost of Living has reached a record level, surpassing the former peak set in July 2008. Mortgage rates would be rising more right now if not for the Middle East unrest.

So long as inflation concerns persist, mortgage rates should trend higher over the next few quarters. If you’re wondering whether to lock or float your mortgage rate, consider locking today’s sure thing.

http://theuglytruthaboutmoney.com/
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Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood – The Ugly Money Show
iTunes – The Ugly Money Show

Jeff Underwood, The Street Economist
The Ugly Truth About Money

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Unrest across America. I have attached some articles that explain what is going on.  http://m.aol.com/news/default/getContent.do?link=http://www.aolnews.com/2011/02/22/indiana-democrats-stage-walkout-thousands-protest-in-ohio/  and http://mobile.reuters.com/article/idUSTRE71L83O20110222?ca=rdt  and http://www.huffingtonpost.com/2011/02/15/wisconsin-state-workers-p_n_823476.html

Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood  – The Ugly Money Show
iTunes – The Ugly Money Show

Jeff Underwood, The Street Economist
The Ugly Truth About Money

Mortgage markets improved slightly last week, rebounding from the worst 1-week loss in recent history. The gains were geopolitical, however; the result of instability in the Middle East region. Economic data was overlooked as investors made a broad-based flight-to-quality.

For just the second time in 2011, conforming mortgage rates in Gilbert fell on a week-to-week basis.

Rates shouldn’t have dropped, though. Here’s just a sampling of last week’s economic data, all of which can be tied to rising mortgage rates:

• Oil prices are soaring on supply concerns
• The Producer Price Index touched a 2-year high
• Philadelphia Fed Manufacturing Survey predicted strong Q1 growth

Furthermore, the just-released January FOMC Minutes showed an improving economic outlook from members of the Federal Reserve.

Therefore, home buyers and rate shoppers might consider last week’s rate drop a gift. Without the growing unrest in Libya, Egypt and Tunisia, mortgage rates would have moved considerably higher.

Instead, rates fell in a bout of what’s commonly known as “safe haven” buying.

In safe haven buying, global investors shun risk in favor of safer investments; usually in response to market uncertainty. Terror threats is one such event. Regime overthrow is another. Because the event’s long-term effect on markets is unknown, investors choose to move cash to safer asset classes until the future is more clear.

The extra demand for such assets drives prices up and, in the case of mortgage markets, drives rates down.

Last week, rates fell because safe haven buying was so strong. That may not be the case this week. As events play out across the globe, mortgage rates at home in Arizona will be affected.

There’s a lot of economic data set for release this week, including a large series of housing-related figures. Stronger-than-expected data should cause mortgage rates to rise, safe haven buying notwithstanding.

If you’re still shopping for rates, or looking for a last chance to lock a low rate, now may be your best chance. Talk to your loan officer about a rate-locking strategy early in the week. As the situations abroad become more clear, mortgage rates should start to climb once again.

Jeff Underwood, The Street Economist

The Ugly Truth About Money

Jeff Underwood, The Street Economist

http://theuglytruthaboutmoney.com/
http://www.facebook.com/TheUglyTruthAboutMoney

A homeowner forecloses on the bank. How did this happen?

Stay Informed throughout 2011!
Join me for an exciting year of fun education on money, debt, real estate, credit, mortgage, the economy, and how they all work together!

Also find Jeff on internet radio and iTunes….. http://www.blogtalkradio.com/jeffunderwood  – The Ugly Money Show
iTunes – The Ugly Money Show

Jeff Underwood, The Street Economist
The Ugly Truth About Money