Mike Hendrickson

Good morning to all! Here is today's mortgage rate update from our favorite loan agent Bob Franklin at Wells Fargo Home Mortgage located in the beautiful city of Pismo Beach California, "Where you can really feel the Beach Boys' song "Good Vibrations!" So here's Bob-

When I was a very young boy, my parents had a house built. It was a 3,000 sq. ft. ranch style home with a full basement below it. I recall my father complaining to me, "How can I pay the mortgage? It's $289 a month, and that's not even counting the property tax! This was around 1970 as I recall. So my dad and mom decided to build an one bedroom apartment down below in the walk out basement with windows and a doorway that opened up into a patio area. It had one side that was on ground level so he figured it would be fine. I thought to myself what a hassle it would be to have renters down below. We would lose a lot of privacy. So I asked him how much he was going to charge for it. He replied, "$95 a month with utilities." I thought he was crazy at the time. I brought up all my arguments against it like how they could hear us upstairs, and what if they were slobs. He just commented that he could use the money to pay bills and that sky high mortgage of $289 a month!

Well as time went on that one bedroom apartment went from $95 to $200 and it was finally $390 at the end of the 1980's. But their mortgage was still $289! As many of my younger who didn't live through the 1970-1980's period we had high inflation. The cost of living sky rocketed up, but your mortgage remained the same. I remember my father saying that he wished he would have built or bought apartment complexes back then.

Now here is my point! For the past 6 years we have been going through a general housing deflation. We had a housing bubble, and when it popped prices plunged. Now we finally have prices that are affordable again. And in this area the rents have be increasing by 4.7%. Like all cycles soon the deflation will end and prices will start to climb again, and we will even see the return of inflation. As the Fed. continues these record low interest rates, and they continue throwing money into our worldwide economy inflation will take off. Hold on to your wallets! If you aren't prepared for it will rob you of your retirement and severely limit your buying power. One catalyst would be what set off inflation in the 1970's rising oil prices and excess government spending.

An example of hyperinflation was Germany in the 1920's and more recently Argentina. Can't happen here! Yes it can! Could you imagine what an inflationary shock we would experience if we had another middle east war and the price of a gallon of gasoline went to over $10! How many people could go to work, and massive inflation would follow. Remember the average delivery to a grocery store is from hundreds and even a thousand miles away.

So what historically have been good hedges against inflation. Gold, silver, commodities, and yes, real estate. With prices at the most affordable level in years, it is time to buy. Investor are entering the market! They are tired of getting .4% annually on their money. Since the supply vs demand curve is starting to tilt toward buying get your pre-approval and down payment saved. At my web site http://www.myslohomefinder.com I have seen a 50% increase in buyers looking for homes. Don't wait too long or you may not be able to buy a place. Also something to consider is a rental. I'm not asking the question "Dad why do you want a rental" anymore!

Good morning to all! I have today's mortgage rate update from our favorite loan officer Bob Franklin at Wells Fargo Home Mortgage located in the beautiful city of Pismo Beach California, "Where the surf is always up! And the people are always friendly!" So here's Bob-

The Day Ahead: Jobs Report and Hammering Out Greek PSI Details

NFP Slightly Higher Than Expected, Healthy Upward Revisions. Nonfarm Payrolls +227k (est. 210,000), Jan revised to284k from 243k. Trade Gap Widest Since October 2008. Trade Deficit $52.57 Bln (Consensus $49.00 Bln), Dec Deficit revised up to $50.42 Bln (Prev $48.80 Bln), Exports +1.4 Pct Vs Dec +0.4 Pct, Imports +2.1 Pct Vs Dec +1.6 Pct.
Dow is trading at 12,948.21 +40.27 the 10 yr bond is at 2.04% from 1.99% Yesterday, . Currently mortgages are a little worse from Yesterday

Conv.- 3.875%
FHA. - 3.75%

Make it a Great Weekend!!



Bob Franklin

Mortgage Consultant
NMLSR ID 248760

Wells Fargo Home Mortgage | 575 Price St, Suite 105 | Pismo Beach, CA 93449
MAC E2396-011
Tel (805) 550-3395 | Fax (877) 609-0926

Bob.Franklin@wellsfargo.com

www.wfhm.com/Bob-Franklin

See this listing at www.myslohomefinder.com

As many of you know, I'm a full time real estate agent here in San Luis Obispo County. I am also a market timer! Yes you can time markets! I have been pointing our "green shoots" that appear any where in the U.S. or overseas. I have noticed a trend here that tells me we are at the bottom, or very close to it, in the U.S. I want to show you three head lines that I have gleened from "Dollar Collapse's" real estate section which shows an upturn in different states.

3/09 Utah home sales up for 8th straight month, report states – Deseret News
3/09 Memphis Realtors group report big jump in February home sales – Commercial Appeal
3/09 Vegas home sales up 18% in February as inventory declines – WPC

I have been trying to find sub $200,000 homes for one of my clients and the inventory has dried up. There are even bidding wars, with up to 7 offers for a "fixer upper" we looked up. I have a theory which I call the "trickle up" theory. This theory is that where the inventory dries up first is in the cheap to moderate homes. Then, it goes to the middle priced homes, and eventually it goes to the high end. Yes, this eventually leads to a housing shortage. And this will happen in 2-3 years! The economy will pick up again! You can't bet against the American people and good old fashioned "American ingenuity". Since there is very little being built, the existing supply of houses will be gobbled up. Hence the shortage.

I'm telling all my readers to go out their and get your home. Interest rates are super low, and it is far better to buy when all the "scared money" is sitting on the sideline waiting for "the end". So go out and get pre-approved. Get that down payment ready, and let's find you that special house.

Here is a graph of the inventory of homes available here is San Luis Obispo.

Good morning to all! I have today's mortgage rate from Bob Franklin at Wells Fargo Home Mortgage. Bob is located in Pismo Beach California, "Where the surf is alway up! And the people are always friendly!'

So here's today's mortgage information-

The Day Ahead: Limited Domestic Econ Leaves Greek Swap Deadline in Focus

Jobless Claims Slightly Higher Than Expected. Claims rose 362k vs 351k consensus, Previous week revised up from 351k to 354k. Greece's debt swap looks like it might work, Greek Prime Minister Lucas Papademos was appointed to negotiate the nation's second bailout. today, private sector creditors will decide on a key deal that could determine whether the nation defaults or not.
Dow is trading at 12,886.37 +49.04 the 10 yr bond is at 1.99% from 1.96% Yesterday, . Currently mortgages worse from Yesterday
Conv.- 3.875%
FHA. - 3.75%

Make it a Great Day!!

Bob Franklin

Mortgage Consultant
NMLSR ID 248760

Wells Fargo Home Mortgage | 575 Price St, Suite 105 | Pismo Beach, CA 93449
MAC E2396-011
Tel (805) 550-3395 | Fax (877) 609-0926

Bob.Franklin@wellsfargo.com

www.wfhm.com/Bob-Franklin