Bellevue, WA

Good morning! I hope you're well. I was having lunch with one of my very best referral partners yesterday and we were touching on reality. He showed me a graph that talked about equities and how much they had increased and decreased within the past 1 1/2 years. We also talked about the likelihood of a bond bubble which I didn't disagree with.

So where are we today? We have the short term interest rate effectively at 0, very slow or no growth, very high unemployment, and falling prices on homes. All signs seem to be pointing to deflation or as it was coined in Japan "The Lost Decade".

What do I wish? I wish everyone would just tell the truth! I think the Federal Reserve is doing a good job and know there are always opportunities. In fact, my company just concluded its best month ever. But let's not candycoat things. I used to have a partner where everything was always good. In reality, that wasn't the case. My partner was a pollyanna!

My prediction for the next several months? I expect mortgage interest rates to stay low. There is a tremendous amount of money in bonds right now. Yes, there may eventually be a bond bubble but not until our economy shows some signs of life. For the next couple of years at least, expect very slow or no growth. The powers-that-be may try and put a positive spin on things but reality states we are dealing with a nervous nellie in the U.S. consumer. Until consumer confidence returns, there will be little in the way of purchasing. This is one sign of deflation.

So what are your thoughts? I'm curious and invite you to weigh in. Have a great day!

Good afternoon! I hope you had a nice weekend! I just finished reading an article in one of my favorite e-newsletters Early to Rise.

The guest writer talked about the huge cash balances of some very successful companies such as Microsoft, Intel, Dell, and Cisco. They are sitting on billions of dollars of cash as we speak. This cash is issued in the form of bonds and the editorialist's take was that the bond market will stay strong for quite some time.

How does this relate to mortgage interest rates? As most of you may know, mortgage interest rates are tied to the 10 year treasury note and the subsequent bond market. The stock market is not mortgage interest rates' friend. With bonds being the de rigeur choice right now, expect mortgage interest rates to stay low for the foreseeable future.

I've seen several posts by friends of mine in the business about low mortgage interest rates. My advice to you? If you or your clients are thinking about buying or refinancing, now may be the perfect time. I'll keep you posted as to the direction of the bond market and mortgage interest rates. In the meantime, have a great day!

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Good morning! I hope you're well and have big plans for the weekend.

This morning Ben Bernanke of The Federal Reserve spoke. The question is: Did anyone listen?

Bernanke talked about how the Fed. had additional weapons in its arsenal to combat the growing threat of deflation and a double dip. Bernanke said the Fed. would consider the purchase of additional securities in order to stimulate growth. The stock market so far liked this thought and is up for the day which is bad news for mortgage interest rates.

My thoughts? After Intel in the same breath today said they would miss 3rd quarter earning projections, I honestly don't know if there is much the Fed. can do at this point to turn our economy around. Call me doom and gloom if you must but the bottom line is still this. It's going to be a while before we emerge from our economic funk and start growing again.

The very fact that so many Americans have lost confidence in a quick recovery is telling. I know people who are renting who could qualify to buy these days. Yet they're holding out for one reason or another. With unemployment at 9.5% (actually higher than this as many have given up finding work for now) and projected to stay high for a while, the predictions are that our country will experience little or no growth for the next couple of years.

Don't get me wrong. There are always opportunities. If my company is any indication, things are good. We expect to fund $100 million in loans this month. With little or no growth, I expect interest rates to stay low. Raising interest rates would dampen an already gloomy setting.

So once again the Fed. has weighed in. We'll be able to tell over time if their plan works. But the bottom line is this. Our economy is still pretty sick and I don't expect it to improve any time soon. What are your thoughts? Am I completely off my rocker? Have a great weekend!

Good morning! I hope you're well. As part of a continuing series on remarkable people in my life, I wanted to tell you about one of my oldest and dearest friends, Albert Israel.

Albert and I first met in college when we both attended the University of Washington. Earlier, I blogged about another remarkable person in my life, Jeff Rogers. Jeff, Albert and I all met and have remained friends because we sold books door-to-door during the summer while we were in college.

The friendship with Albert has continued to this day. We are currently in our 30th year. Through the years, we have stayed in touch. We've married (not to each other-Lol!), witnessed the passing of close friends, and celebrated great successes including owning a business together.

The one thing I can always count on Albert is to be there for others. My friend Jeff says Albert always sends birthday cards to his kids. That is remarkable! Albert is truly the most thoughtful and engaging friend I have and I feel fortunate to have him in my circle.

Today I celebrate my friendship with Albert Israel. It is lifelong and I feel honored to count him as one of my closest compadres. Have a great day!

Bellevue Neighborhoods - Get your home sold the first time around Tip #2

Condition of your home to sell:

Reason #2 (If you missed the first reason you can find it here) that your home will not sell is that your home is not showing well. Buyers don't want to walk in the front door and be overwhelmed with STUFF...whether you collect tea-cups, love antiques, have a plane collection, etc. Buyers shouldn't know what your hobbies are and therefore you should remove those items before putting your home on the market. You also don't want to have a wall of photos showcasing Bobby's entire 30 years of life...Now, we don't believe that every single picture needs to be removed as it should show that a family could or does live there. When a closet is opened your mouth shouldn't drop to the floor when all the contents are beginning to fall out on top of you.

Continue to Bellevue Neighborhoods - Get your home sold the first time around Tip #2