Roxy Redenbaugh NMLS#269926

One thing you could always count on was a long and even in some cases short term Real Estate investment. The safe investment most baby boomers had in there portfolios for retirement was and hopefully for some still is Real Estate. Most long term Real Estate investing is safe. Like any investment tool you need to be in it for the long haul. Real Estate investors are making millions buying and selling and this is still happening in today’s market. In the mortgage meltdown of 2007/2008 many baby boomers and others found themselves in deep trouble with declining values, meaning their net values were declining, many are still losing their properties. For some they were losing their retirement! I have talked to many people of all ages all over the US losing their properties. This is a very unfortunate and very sad. We will all bounce back from this and we will all recover from this. Remember we are a nation of leaders and leading us is a generation that got here without seat belts, car seats or helmets. We are a tough bunch and we will all recover and thrive.

Monday's bond market has opened in positive territory following a flat open in stocks and a primetime TV reminder from Fed Chairman Bernanke that the economic outlook isn't so rosy. The stock markets are nearly unchanged from Friday's close with the Dow down 3 points and the Nasdaq down 1 point, but just the lack of a gain is good news for the bond market at this point. The bond market is currently up 15/32, which should improve this morning's mortgage rates by approximately .125 - .250 of a discount over Friday's morning pricing.
There is no relevant economic news being posted today. Fed Chairman Bernanke's interview on last night's edition of 60 Minutes has helped push bonds more towards reality. During his interview that aired last night, he said that unemployment would likely remain high for 4 or 5 years and that recent concerns about inflation are overstated. He also added that another round of debt purchases by the Fed is possible. I find the timing of this interview to be impeccable and quite ironic after last week's activity. It, along with Friday's employment data, will hopefully help restore some reason to the markets and remind us that the economy still has plenty to overcome.

Chicken Cheese Enchilada Chowder

1 can of chicken breast meat OR

½ Roasted or Boiled chicken boned.

1 15-ounce can of black beans

1 can of corn or ½ of frozen corn

1 cup of chicken broth

¼ cup of chopped yellow, green or red sweet pepper

1 small fresh jalapeno Chile pepper, seeded and finely chopped

1 can of condensed cream of chicken soup

1 10 ounce can enchilada sauce RED

¾ cup of milk

1 cup of shredded Mexican blend cheeses

1 medium tomato, chopped

Sour cream, guacamole and tortilla round out this meal but are optional.

•1. In a large slow cooker combine chicken, beans, corn, onion, sweet pepper, and jalapeno pepper. In a separate bowl mix together the soup and enchilada sauce. Stir in milk until smooth. Then pour mixture in cooker.

•2. Cover and cook on low-heat setting for 6 to 8 hours or on high for 3 to 4 hours.

•3. When done add in cheese a tomato. Top if you want with the sour cream, avocado or guacamole and tortilla chips.

Makes about 4 servings - Enjoy!

What really distinguishes this generation in all countries from earlier generations... is its determination to act, its joy in action, the assurance of being able to change things by one's own efforts.

Hannah Arendt
1906-1975, German-born American Political Philosopher

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http://realestatenews-roxy.blogspot.com/

There are six relevant economic reports scheduled for release this week in addition to the minutes from the most recent Fed monetary policy meeting. With at least one piece of data being posted each day this week, it is fairly safe to assume that we will see another active week in the financial and mortgage markets.
Unlike many Mondays, tomorrow does bring us one of those reports. July's Personal Income and Outlays report will be released early tomorrow morning, giving us a measurement of consumer ability to spend and current spending habits. It is expected to show an increase of 0.2% in income and a 0.3% increase in spending. Weaker than expected numbers would be considered good news for the bond market and mortgage rates.
The Conference Board will post their Consumer Confidence Index (CCI) for August late Tuesday morning. This index measures consumer sentiment about their personal financial situations, giving us a measurement of consumer willingness to spend. That is important because consumer spending makes up two thirds of the U.S. economy. A decline in confidence would indicate that surveyed consumers probably will not make a large purchase in the immediate future. That sign of economic weakness should drive bond prices higher, leading to lower mortgage rates Tuesday. It is expected to show a reading of 50.0, which would be a small decline from July's 50.4. The lower the reading, the better the news for bonds and mortgage pricing.

Also Tuesday is the release of the minutes from the last FOMC meeting. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member's views on the economy and inflation and if they will hint what the Fed's next move may be. But this is one of those events that can cause significant mo vement in rates after its release or be a non-factor. I suspect that this particular release will cause a little movement in bond prices, but not enough to significantly affect mortgage pricing.
Wednesday's only important news is the release of the Institute for Supply Management's (ISM) manufacturing index at 10:00 AM ET. This index measures manufacturer sentiment and is expected to show 53.0, which would be a decline from last month's reading of 55.5. A reading above 50 means that more surveyed manufacturers felt business improved during the month than those who felt it worsened. A larger than expected decline in the index would likely cause selling in the stock markets and lead to an improvement in mortgage rates Wednesday.

There are two reports scheduled for Thursday. The first is the revised 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without in flation concerns. It is expected to show a downward change from the previous estimate of a 0.9% decline. Forecasts are currently calling for a 1.6% drop, meaning productivity was weaker than previously thought. This would be negative news for the bond market and mortgage rates.

July's Factory Orders data will also be released Thursday morning. This report measures manufacturing sector strength and is similar to last week's Durable Goods Orders, but includes orders for both durable and non-durable goods. It is expected to show a 0.3% increase in new orders. A smaller than expected rise would be favorable for bonds, but I don't see this data causing much movement in rates unless its results vary greatly from forecasts.

The biggest news of the week comes Friday morning. The Labor Department will post the unemployment rate, number of new jobs added or lost and average hourly earnings for August early Friday morning. The ideal scenario f or the bond market and mortgage rates is rising unemployment, a larger than expected drop in payrolls and earnings to remain unchanged. Analysts are expecting to see that the unemployment rate moved from 9.5% to 9.6% and that 118,000 jobs were lost during the month. Weaker then expected readings would be very good news for bonds and lead to lower mortgage rates Friday. However, if we get stronger than expected numbers, mortgage rates will probably spike higher Friday.