Actions Speak Louder than Words...

That familiar phrase is especially true at the moment, as we wait for decisive action on both the government shutdown and the debt ceiling debate. Read on for details.

Economic reports continued to be delayed last week as both the Retail Sales Report and the wholesale inflation measuring Producer Price Index for September were not released due to the government shutdown. One report that was released was weekly Initial Jobless Claims, which jumped by 66,000 in the latest week to the highest level in six months. However, the Labor Department said that ongoing application processing problems in California and government shutdown related layoffs accounted for nearly two-thirds of the increase.

There was also some important housing news to note last week as research firm CoreLogic reported that foreclosure inventories in August dropped by 33 percent nationally compared to August 2012. This was the twenty-second consecutive month with a year-over-year decline. As of August 2013, the foreclosure inventory represented 2.4 percent of all homes with a mortgage, compared to 3.3 percent in August 2012.

The minutes from the Fed's September meeting of the Federal Open Market Committee were released, showing that all FOMC members except one want to see more evidence of sustainable economic progress before they trim their Bond purchases. Remember that the Fed has been purchasing $85 billion in Bonds and Treasuries each month to stimulate the economy and housing market. With key economic reports delayed due to the shutdown, there is not much chance the Fed will taper its purchases in the near future.

But the biggest news continues to be the ongoing debate regarding the debt ceiling. Reminder that the debt limit, currently at $16.7 trillion, is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. If an agreement is not reached by the October 17 deadline and the U.S. defaults on its debt, the results could be catastrophic for our economy. This is a key story that needs decisive action in the days ahead.

The bottom line is that home loan rates remain attractive compared to historical levels and now remains a great time to consider Purchasing a Lake of the Ozarks Home or refinance. Let me know if I can answer any questions at all for you or your clients.

Will the Debt Ceiling and Government Shutdown effect Me??

The government shutdown has had a wide-reaching impact on many people and services across the country. But it could soon take a backseat to the looming October 17 deadline for the debt ceiling.

What is the debt ceiling? The debt limit, currently at $16.7 trillion, is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. The debt limit does not authorize new spending commitments. It simply allows the government to finance existing legal obligations.

Why is this significant? Last week, the U.S. Treasury stated that, "In the event that a debt limit impasse were to lead to a default, it could have a catastrophic effect on not just financial markets but also on job creation, consumer spending and economic growth--with many private-sector analysts believing that it would lead to events of the magnitude of late 2008 or worse, and the result then was a recession more severe than any seen since the Great Depression."

Stay tuned on this important news subject as it will certainly impact the Bond market and, therefore, home loan rates--which are tied to Mortgage Bonds. The uncertainty over these issues halted the recent rally in Mortgage Bonds, and I will be watching closely to see what happens next.

A glimmer of good news. There was good news from the housing sector last week. Research firm CoreLogic reported that its Home Price Index, including distressed sales, showed a year-over-year increase of 12.4 percent from August 2012 to August 2013. August now marks the eighteenth consecutive month of year-over-year gains.

The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.

We would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Recent Move by the Fed Impacts the Market and Home Loan Rates

"Listen to what the man said." The title of Paul McCartney's hit song also applied to Fed Chairman Ben Bernanke last week, as the Fed made an important decision that impacted the markets and home loan rates. Read on for details.

Recently, the Fed unexpectedly delayed tapering of its Bond purchase program (known as Quantitative Easing) as Bernanke said that the economy still isn't strong enough to begin easing back its purchases. Remember that the goal of these purchases has been to stimulate the economy and housing market. In his press conference, Bernanke said that tapering could come towards the end of the year, but for now the Fed will continue to purchase $45 billion per month in Treasuries and $40 billion in Mortgage Bonds.

After the news, Stocks had a record trading day while Mortgage Bonds had their biggest one-day rally since August 2011. This is significant because home loan rates are tied to Mortgage Bonds, so the Fed announcement helped home loan rates as well.

In other news, the Consumer Price Index for August came in below expectations and was lower than the July reading, showing that inflation at the consumer level still remains tame. The year-over-year CPI reading fell to 1.5 percent, led lower by a decline in energy prices, and remains below the Fed's upper target range of 2 percent.

In housing news, Housing Starts rose by 0.9 percent from July to August while Building Permits fell by 3.8 percent. However, there was a big surge in permits for single-family dwellings, pointing towards a sustained strengthening in the housing recovery. Existing Home Sales also came in above expectations, reaching an annual rate of 5.48 million units in August, a six-year high.

What does this mean for Lake of the Ozarks home loan rates? Economic data in the coming weeks and months will be a key factor in whether the Fed begins tapering its Bond purchases later in the year or in 2014. This timing could pay a big role in the direction Bonds and home loan rates move in the months ahead.

The bottom line is that now remains a great time to consider buying a Lake of the Ozarks Home or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.

We would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Positive Signs in the Current Economy

There continue to be some optimistic signs in parts of our economy, specifically with the housing sector last month. Here are some indicators that the Housing Market is in good shape and it is a good time to consider purchasing a Lake of the Ozarks Home!!

• Existing Home Sales rose in May to reach the highest rate since November 2009. Housing Starts also rose by 7 percent in May to come in a whopping 28 percent higher than May 2012. 
• In other housing news, RealtyTrac reported that foreclosures rose by 2 percent in May from April. But the good news is that foreclosures have fallen 28 percent from where they were just one year ago. 
• The economy as a whole also received some good news last month. Standard & Poor's, one of the big three credit-rating agencies, raised the credit outlook for the U.S. from negative to stable. The manufacturing sector also received a boost of good news, as both the Philadelphia Fed Index and the New York State Empire Manufacturing Index came in well above expectations. And, consumers felt confident enough to open their wallets in May, as Retail Sales rose at the fastest pace in three months, led by demand for groceries, autos and building materials. 
• Although inflation at the wholesale level rose unexpectedly in May, inflation at the consumer level remains tame and overall inflation pressures remain muted, which should help keep Bonds and Lake of the Ozarks Home Loan rates at attractive levels. 
• Another factor that has helped Bonds and home loan rates remain attractive is the Fed's Bond purchase program (known as Quantitative Easing). Fed Chairman Ben Bernanke did say the Fed may begin tapering the program later this year and to finish by mid-2014. So this will be an important story to keep an eye on as economic news comes in over the next several weeks and months. 

The bottom line is that home loan rates remain attractive and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or someone you know.