Economic Update July 9th, 2007
Last Week in the News
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The nation's service economy expanded at a faster-than-expected pace in June, as the Institute for Supply Management (ISM) said on July 5 that its index of business activity in the non-manufacturing sector registered 60.7, topping May's reading of 59.7 and Wall Street's forecast of 58.1. A reading above 50 indicates expansion, while one below 50 signals contraction. The June reading was the highest since April 2006, when it hit 61.1.
Output at U.S. factories, plants and utilities also expanded in June, the ISM reported July 2. The ISM's manufacturing index rose to 56 in June, above the May reading of 55, and higher than the market expectation of 55.4. The reading marked the fifth consecutive month of growth for the manufacturing sector.
Late payments on home equity loans -- payments that are 30 days or more past due -- rose to 2.15% in the first quarter of this year, up sharply from 1.92% in the final quarter of 2006, the American Bankers Association (ABA) reported July 3. On a brighter note, the ABA also reported that late payments on credit card bills dropped to 4.41% in the first quarter, down from 4.56% in the fourth quarter of 2006, the best showing in nearly a year.
The average rate for a 30-year, fixed-rate mortgage fell to a one-month low, Freddie Mac said July 5. Rates have ebbed in recent weeks as investors' fears concerning inflation have eased.
This week look for updates on the trade balance on July 12 and retail sales on July 13.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/http://www.homecredible.com/http://www.honestmortgageanswers.com/
Posted by Jason Lash at 10:31 AM
Economic Update July 2nd, 2007
Last Week in the News
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Sales of new single-family homes fell 1.6% in May, far better than the 6.2% decline Wall Street had anticipated, the Commerce Department said June 26. The median price of a new home fell 0.9% to $236,100 in May, down from $238,200 in May 2006.
Existing home sales fell 0.3% in May to 5.99 million units, the slowest sales pace in four years, the National Association of Realtors said June 25. The median price of an existing home was $223,700, down 2.1% from a year earlier, marking the 10th straight month that the price has shown a year-over-year decline.
Construction spending in May climbed 0.9%, the largest jump in nearly 18 months, and well above Wall Street's expectation of a 0.1% rise, the Commerce Department reported June 29. Spending on residential construction, however, fell 0.8% to an annually adjusted rate of $549 billion, the 15th consecutive monthly decrease.
Orders to U.S. factories for big-ticket manufactured goods -- expected to last three or more years -- dropped by 2.8% in May, the largest amount in four months, and a far bigger slide than the 1% decline economists had forecast, the Commerce Department said June 27. A 22.7% plunge in commercial aircraft orders paced the decline.
Meanwhile, consumer spending in May rose by 0.5% for the second month in a row, the Commerce Department said on June 29. Incomes, which fuel spending, rebounded in May by 0.4%, after falling 0.2% in April.
This week look for updates on the unemployment rate on July 6.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/http://www.homecredible.com/http://www.honestmortgageanswers.com/
Posted by Jason Lash at 12:46 PM
5 Reasons Why You Should Keep a Mortgage and Never Pay it Off
5 REASONS YOU SHOULD KEEP A MORTGAGE AND NEVER PAY IT OFF
Mortgage Planner and author Ric Eldeman urges consumers never to own their home outright or pay it off, regardless of age or income. Here are five reasons why Home Asset Advisor's mortgage planning principles can work for you:
1, A mortgage is cheap money. Mortgages offer you the cheapest way to borrow, so it makes sense to get them the largest loan you can.
2. Mortgage interest is tax-deductible. You can save as much as 35 cents in taxes for every dollar they pay in interest. That means a six percent mortgage loan can really cost as little as four percent.
3. Mortgages will let you clients sell without selling. You don't have to sell your home to realize any increase in equity. They can simply get a new, larger mortgage to acquire the value of the home in cash without having to sell.
4. Long-term mortgages help create wealth. I would like to introduce you to a Financial Planning partner who can show you how to create wealth with longer term, lower payment mortgage loans and equity redistribution.
5. Mortgages give you greater liquidity and flexibility. Their are a lot of fallacy of pre-payments. Extra payments often go directly to principal and offer no tax deduction. Most people can benefit from an interest-only loan, allowing them to invest any additional payments elsewhere for greater return.
If you have any questions or would like to discuss this further, please contact me at the web site or phone numbers listed below.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/http://www.homecredible.com/http://www.honestmortgageanswers.com/
Posted by Jason Lash at 9:26 PM
