How did the Government Shutdown Effect Home Loan Rates??

Better late than never. With the government shutdown over, the Jobs Report for September was finally released--and the markets and home loan rates reacted.

The Labor Department reported that 148,000 new jobs were created in September, below the 183,000 expected. For July and August, the numbers were revised higher by a total of 9,000 jobs. The Labor Force Participation Rate, a measure of how many people are looking for work, was unchanged at 63.2 percent after falling in August to a 35-year low.

The Unemployment Rate hit a 5-year low in September, falling to 7.2 percent. This was fueled to some degree by workers entering retirement and those Americans opting out of the workforce in a stagnant job market. And in the latest Weekly Initial Jobless Claims Report, claims fell by 12,000 in the latest week but still came in above expectations. The bottom line is that we are simply not seeing any meaningful improvement in the labor market.

What did this mean for home loan rates? Remember that weak economic news normally causes investors to move their money into safe investments like Bonds. This includes Mortgage Bonds, to which home loan rates are tied. We saw that dynamic in the markets last week, as Bonds rallied after the weak Jobs Report was released, helping home loan rates reach their lowest levels in four months.

Also still helping Bonds and home loan rates is the Fed's current Quantitative Easing program, in which 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--and with the September Jobs data weaker than expected--there is not much chance the Fed will taper its purchases at its meeting this week. This should help keep home loan rates attractive through the remainder of 2013.

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

I 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 

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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

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.

3 Ways to Increase Your Productivity at Work

Many people think intellect is a matter settled at birth, and mistakenly believe there's no way to boost their brain brilliance. But scientific studies prove just the opposite. In fact, small lifestyle adjustments combined with a few mental gymnastics can not only increase intelligence, but also improve general brain health, helping prevent aging disorders, such as Alzheimer's disease.

According to most neurologists, the key is staying mentally active, whatever your age. The following tips will help boost your mental acuity and increase your intelligence.

All You Have To Do Is Dream. An adequate amount of restful sleep is an important component of brain function (its effect on memory and learning is contested among scientists). Restful sleep provides energy as well as the ability to focus, both vital factors in achieving mental stimulation. Some studies have also shown the reverse to be true, that is, that more mental stimulation during the day gives you better sleep at night.

Jumpin' Jack Flash Memory. Exercise brings oxygen-rich blood to the brain and regulates blood-sugar levels. Exercises such as aerobics, dance, and martial arts all require memorization and are great for promoting mental stimulation. They also help to develop the rhythm and timing circuitry that runs across multiple regions of the brain.

Playing Those Mind Games Together. Crossword puzzles and Sudoku, board games and card games are all excellent for mental stimulation--now you can add video games to the list. Each type of game makes various demands on brain function such as recall, hand-eye coordination, attention, memory, logic, and pattern recognition. The key here is to keep upping the skill or level of challenge as you progress.

Don't forget to pass these helpful tips along to your clients and colleagues.

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

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

What does the "Government Shut Down" Mean for Mortgage Rates?

"What we've got here is a failure to communicate." 

Hopefully, that famous line from the 1967 movie Cool Hand Luke won't apply to our leaders on Capitol Hill, as they work toward a resolution on the debt ceiling debate and budget fight. Read on to learn what this could mean for home loan rates.Congress continues to debate whether to raise the debt ceiling, which is now at $16.7 trillion. Although the debt limit deadline is today, the Treasury Department has said that it has enough funding to operate as usual until October 17. Failure to raise the debt limit by October 17 would most likely lead to an unprecedented default on the United States' bills. And of course, since no deal was met, we have a partial government shutdown

The uncertainty over these issues helped Mortgage Bonds improve,  as investors moved their money to safer investments like Bonds as they often do in times of uncertainty. Since home loan rates are tied to Mortgage Bonds, this also helped home loan rates improve last week.

In housing news, Case Shiller reported that its 20-City Home Price Index for July rose by 12.4 percent compared to July 2012. This is the fastest annual pace since 2006. However, from June to July there was only a 1.8 percent increase, which is the smallest monthly gain since March, as 15 of the 20 cities saw slower growth. This slowdown can be attributed to the rise in home loan rates over the past few months. New Home Sales did increase by nearly 8 percent in August from July.

Also of note, the government reported that the final reading on Q2 Gross Domestic Product was in line at 2.5 percent and unchanged from the second reading. Inflation as measured by Personal Consumption Expenditures remained tame in August while Personal Incomes and Spending were in line with estimates. These readings give the Fed cover to continue its Bond purchase program known as Quantitative Easing, which has helped home loan rates remain attractive.

The bottom line is that home loan rates remain attractive compared to historical levels and now remains a great time to consider a home purchase or refinance. 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

It's Almost Time for Some Fall Family Fun at the Annual Turkey Festival

It's almost time for the  Annual Turkey Festival in Eldon Missouri.  This is one of our favorite events held in Eldon and it draws a crowd from all around the area.  It's been estimated that previous years have brought as many as 12,000 people to the area to enjoy all the Festival Fun!!

The Turkey Festival will be September 28th and is held in downtown Eldon.  The event is fun for the entire family and will include vendor booths, parade, live music, food, car show, demolition derby, figure-eight derby, the turkey trot and 
Gobble Wobble 5k run, Lil’ Mr. and Miss Gobbler and Lil’ Mr. and Miss Turkey contests.  And of course, like every good festival, there will be PLENTY of great food to eat.   We hope that you will take the opportunity to enjoy the great Fall weather at this wonderful event! 

For more information visit the Eldon Chamber of Commerce at www.eldonchamber.com.

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