Lonnie Glessner

Nothing makes me scream louder than Mortgage Professionals telling people that mortgage rates are tied or linked to the 10 Year Treasury Bill. Plus hundreds of "Talking Heads" in the media believe and say this as well.

NO THEY ARE NOT!!!!!!!!!!!!!!!

The last 2 days of trading make my point as the 10 Year Treasury Bill is up over 400 basis points in price as the yield has plummeted over 1/2% to 3.01%. Today, the 30 Year Treasury Bond's yield dropped .64%.

But, in the last 2 days the 6.00% Fannie Mae 30 year bond has gained a grand total of 11 basis points in price!!! And mortgage rates have remain unchanged. You see mortgage rates are directly correlated with the sale of mortgage bonds and nothing else.

If your client's Mortgage Professional ever says that mortgage rates are tied or linked to the 10 Year Treasury Bill, please please tell them that they are wrong. Then, advise your clients to work with a Mortgage Professional who knows the TRUTH.

On Tuesday NAR, the National Association of Realtors released their third quarter report on real estate sales in every MSA in the country. The headline for Denver was "prices drop 11% in the last year!" Watch out the sky is falling!

Now, let's look at the facts. Yes, median prices dropped 11% from September 2007 thru September 2008. But, what's happening recently? For the 3rd quarter prices were unchanged from the 2nd quarter. And prices actually rose .7% in the 2nd quarter. That's two quarters in a row of good news!

Almost all of the 11% drop occured in the 4th quarter last year when prices dropped 9.5% in those 3 months.

Home prices are firming up in Denver and the Case-Shiller Index reveals that March 2008 was probably the bottom of the market here in Denver. As Gary Keller said last week in Vegas, "It's a buyer's market, NOT a waiter's market!"

I spent a great week last week in Vegas and I want to share with you some of what I learned. And it has nothing to do with betting against an inside straight. I was in Vegas for the Mastery Business Plan Seminar with Todd Duncan and other great leaders in the mortgage industry.

One of my favorite speakers was Gary Keller, co-founder of Keller Williams, who enlightened us on his latest book "Shift: How Top Real Estate Agents Tackle Tough Times". I have just started reading this book and I encourage you to do so as well.

want to share with you a few of my notes from his discussion. First and with great relief, he said that the biggest battle for everyone right now, even Superstars, is Attitude. We must have a great attitude and if e do we will attract clients. Whereas, a bad attitude pushes clients away. Who wants to list their home for sale with someone who does not think it will sell anyway? No one!

Second, we all know it takes a long time to change our habits; some studies say it takes 21 days to change a habit. Gary asked the crowd, "If it's so difficult to change our habits, why change them to just reach small goals?" He's right! Change your habits to reach BIG goals and nothing less!

Third, if we wait until we "feel" like acting, we will never act. We must act first and THEN the feelings will follow. True!

Fourth, Gary said if we only do what we like to do, we only will be average at best. If you want to be above average you must do what you don't like to do. Ouch!

When I was in school I never wanted an average grade of "C" as I considered a "C" grade like a "F". So, why do I accept a "C" grade in my business? I must dislike parts of my business more than I disliked homework and studying while in school. I can't believe I said that; but it must be true.

This week I spent 4 days at The Mastery Business Plan event for the mortgage industry. This is typically the biggest and best event in the mortgage industry every year. We talked a lot about the economy and the state of our industry and how to move from fear to faith. Here is what I learned-

•· First, you must believe in yourself that you are the BEST Realtor. If you don't believe this, how will your clients?

•· Second, get educated and become an expert in a niche. Find a niche and become a world class expert in that niche. This confidence will permeate through you and to your prospects and clients who will WANT to work with you and no one else. They will be drawn to you!

•· Be thankful for what you do have and possess a great attitude. A smile, confidence, and a great attitude will go a long ways, because it makes you VERY UNIQUE at this time.

•· ACT! It's amazing how when we start to act and get moving our fears go away.

Quote from Anthony Robbins--"When you are grateful, fear disappears and abundance appears."

•· NAR has asked FHA to lower the required occupancy ratio on condos which currently requires 51% owner occupancy. They have also asked that REO condos not be counted as non-owner occupied. (I really like the 2^nd idea).

•· If you are selling a condo or have a client buying a condo, realize that condo guidelines are becoming more specific and difficult on conventional loans with less than 20% down. We could possibly see next year that on a conventional loan you may have to put 20% down to buy a condo. Thus, price the condos well to sell NOW and make sure they show their best.

•· Credit score requirements on conventional loans with PMI continue to rise. Officially later this month Radian will require a 700 fico score with 15% down and a 720 fico score with 10% down. RMIC now requires a 660 fico score on any loan with PMI. FHA loans keep looking better and better.

•· 2009 FHA loan limit will be $368k throughout the Denver metro area.

FHA loans keep looking better and better everyday.