Using Coupons to Save On Your Vacation

So you’ve decided to take the family to Disneyworld or the Grand Canyon, or you’re planning a honeymoon to Napa or the Grand Tetons. Or you all just decided that it was time to explore Philadelphia. But you’re worried about spending so much money on the food and activities.  Worry no more!
Here’s some tips on how to shave off a lot of the extra expenses in order to have a great time. You can even use these tips for your Staycation and see places you didn’t know were in your neighborhood.

Theme Park Ideas

Look into buying your tickets in advance, or on the internet.  Many parks offer discounts over purchasing at the gates.
Some theme parks have what they call a Cooler Pass where you can bring in your own food. This saves a lot of money as well as frustration since you won’t be standing in long lines for their food which is often not very good. Even if you can’t, consider keeping a cooler in the car and have a family break at lunch time, get your hand stamped, and go eat outside of the park. Most places provide picnic tables, or at least have some trees for shade. This gives you a chance to see how everyone’s doing, reapply sunscreen, and get a few hugs in.

Sign Up for Daily Deals Where You Want to Go

Social coupons like Living Social or Groupon can have really good deals on attractions, events and restaurants. You may also be able to get deals through the local newspaper, so check it out online before you go.  Also, if you sign up ahead of time, you can learn about new places and research where they are in comparison to where you’re staying. No matter how great the price, if it’s a long drive, it may not be worth the deal.
Also look into packages from places like Jetsetter. You might find some great destinations for a very affordable price.

Before You Go and Once You’re There

If you’re staying in a hotel, they will probably have racks of coupons for local restaurants and activities. The business gives a small percentage back to the hotel usually, so take these recommendations with a grain of salt. Do your research with local review sites.
When you book your hotel, see if they have packages that include breakfast.
Find the local chamber of commerce. They often have maps with their businesses as well as discount coupons. Like the hotel coupons, you’ll want to do a bit of research to see if it’s what’s best for you. You could also call the local chamber ahead of time and have them send you a packet of information. Some towns have special tourism departments that also can send coupons.
From USA Today:

Museum admissions can add up quickly, even if you’re only seeing a handful of exhibits during your weekend getaway. Ease the pain with an admission-ticket bundle like CityPass, which conveniently packages discounted admissions to your destination’s top attractions. CityPass Seattle, for example, includes admission to six big-city draws, including the Space Needle and the Seattle Aquarium, for $69 (if you paid a la carte, you’d be forking over $128). Plus, you can buy your pass in advance, saving precious time by skipping busy ticketing lines.

Also look into using apps like Yelp and FourSquare. When you check in, they often have deals or coupons. You can research Yelp online to see who is offering a deal before you go as well. From MSN Money:

12. Use discount food apps. If you do dine out, use a restaurant-locating app to find special deals and the best prices. Some of my favorite apps include:

• Yelp Check-Ins
• LocalEats
• KidsEatFree

Split your meal in half, ask the waiter to box it up and use the hotel’s mini fridge for storage.  That way, you get two meals for the price of one.
16. Go sightseeing for free. Popular tourist attractions can be pricey, but there are plenty of places you can tour for free. For example, admission to popular plantation homes in Louisiana can cost up to $18 per adult, but the National Park Service hosts free walking tours of the French Quarter in New Orleans.

Planning ahead what you do may save you much money. It will be very useful for figuring out your budget which saves you money overall. Finally, always read the fine print before you buy or use any coupon.
If a tourist walked up to you and asked where was the best place to eat, where would you send them?

Mortgage Mistakes to Avoid and Other News

We’ll do our quick roundup of mortgage news first and then get to the four biggest mistakes to make with your mortgage.

 

Four Reasons to Refinance Before Summer

Yahoo Homes gives us this list:

1. Your home value is likely to decrease during the summer.
2. The government may stop influencing mortgage rates and backing programs.
3. You could be affected by new escrow account rules.
4. Lowering your interest rate by less than 1% can have big long term impact.

U.S. Homebuilder Confidence on Rise

The National Association of Home Builders/Wells Fargo builder sentiment index released Wednesday rose to 44 in May from 41 in April. The increase for May was the first month-to-month gain since December. Concerns over rising costs for land, building materials and labor have been holding the confidence levels down.
So more people are wanting new homes. Materials are becoming more available. There’s still some issues with smaller builders having difficulties getting loans, but large builders are finding it easier. The biggest issue is still finding qualified labor in areas that are building up primarily in Arizona, California, Texas, Colorado and Florida.

Late Payments On Decline

So, we have more homes being built, more homeowners, more refinancing, and fewer late payments. The percentage of mortgage holders at least two months behind on their payments fell by 21% in the first quarter of this year compared to last year stated credit reporting agency TransUnion earlier this month.
California had a statewide rate of 4.2%. Florida still has the highest mortgage delinquency rate in the nation for the first quarter at 11%, but that’s down nearly 21% from the same period last year, the firm noted.

Four Mortgage Mistakes to Avoid At All Costs

You may be seeing specials like 1.99% mortgage rates and want to rush to refinance. But take a deep breath first and read these four mistakes to avoid.

1. Paying Your Mortgage Before Paying Off Higher-Interest Debt. Credit card debt and auto loans are not tax deductible like student loans and home mortgages. Also, their interest rates are usually higher overall. So pay off the higher interest debt first, and then focus on the rest. You’ll save yourself a lot of money in the long run.
2. Getting a Loan for “Free”. Often you’re trading no-cost loans for a higher interest rate. While that may be best for you right now, research all of the effects so you can make a smart choice.
3. Getting a 15-Year Mortgage, But Having No Financial Security. Can you really afford the payments? If you have some concerns, look into the 30 year and pay extra.
4. Not Thoroughly Researching Lenders. Some questions you may want to ask your loan officer include whether or not your interest rate will be fixed or variable, and if the lender offers an introductory rate, when it will expire, and what the new rate will be. A professional loan officer will want to help educate you on the rates and fees.

If you’re thinking about refinancing, make an appointment with a professional loan officer to discuss your financial situation. They study the rates and fees as well as news that impact rates. And a professional loan officer will be happy to help you find options for your mortgage.

Attics and Basements – Good Idea?

You’ve decided to add on to your home instead of trading up. And we all know adding in additional bedrooms, bathrooms, and a living room can pay off with increased living space. But what about finishing a basement or an attic?  And what if you don’t have them? Should you add them in?

Existing Basements

Finishing off an existing basement can give you safe storage room for holiday decorations, and get them out of your garage. In addition, if you expand the basement to be full height (7′ or more), you have additional living space such as a playroom for the kids, or a place to put in your media room with a large screen television and surround sound. Think how great it will sound with the thick walls. The main things to ensure you take into account for any basement are:

• controlling moisture
• adding ventilation and light
• finding a way around existing drain lines, ductwork and wiring

Finish off a basement is less per square foot than adding on an addition.

Adding In Basements

The only time it would probably ever be a good idea to add in a basement is if you needed to replace the foundation. To add in a basement, you’d need to lift up the house and dig it out, which could get very expensive.

Finishing Off an Attic

The first thing to do before finishing off an attic is to evaluate the space carefully. If you have rafters that are in the shape of a W, you won’t be able to finish off the space, but if it’s in the shape of an upside down V, you’ve got the possibility for a hidden attic hideaway.

The next thing to think about is how you’ll get up there. If you put in a staircase, how will that affect the rest of the house, and the amount of space in the attic.

Finally, you’ll need to think about headspace. Like the basement, you’ll want at least 7′ across most of the attic space.

You may need to add in skylights or windows to allow for better lighting during the day. And like the basement, you’ll want to look into ventilation and working around existing wiring, ducts, etc.
Plus, in an attic, you’ll need to add in flooring, and ensure that the extra weight will be distributed correctly so the ceiling doesn’t buckle below.

Adding In an Attic

The best time to add in an attic is when you’re re-roofing. You will need a professional to evaluate your home’s structures to ensure that you can add in the attic, and what type of roofing you should add on afterwards. They’ll look into:

1. Can the foundation handle more weight
2. Do you have any local restrictions against 7′ dormers added on to the roof
3. Changing out the framing in the attic to be able to meet code for insulation
4. Additional reinforcement or reframing to maintain the integrity of the home

So, the bottom line is, if you already have the space, it may be cheaper to finish it off than to add on to the house.  But if you don’t have the space, it could be very expensive to add it in unless you’re already going major renovations.

Would you prefer a finished basement or finished attic?

This Week’s Market Commentary

This week brings us the release of only three economic reports that are relevant to mortgage rates, in addition to a couple of Treasury auctions and the minutes from the last FOMC meeting that have the potential to be influential on the bond market and mortgage pricing. Corporate earnings season also kicks off this week, which could be instrumental in driving stock prices significantly higher or lower.

There is no relevant economic news scheduled for release today or Tuesday. The first events of the week will come Wednesday afternoon. One is the release of the minutes from the last FOMC meeting. Market participants will be looking at them closely as they give us insight to the Fed’s current thought process and individual Fed member opinions. Any surprises in the 2:00 PM ET release, particularly about inflation or the likelihood of an adjustment to their current bond buying program, could cause afternoon volatility in the markets Wednesday and possible changes in mortgage pricing.

The two Treasury auctions are scheduled for Wednesday and Thursday. There is a 10-year Treasury Note sale Wednesday and a 30-year Bond sale Thursday. We could see some weakness in bonds ahead of the sales as participating firms sell current holdings to prepare for them. This weakness is usually only temporary if the sales are met with a decent demand. The results of the auctions will be posted at 1:00 PM ET each day. If the demand from investors was strong, the bond market could rally during afternoon trading, leading to lower mortgage rates. If the sales were met with a poor demand, the afternoon weakness may cause upward revisions to mortgage pricing Wednesday and/or Thursday afternoon.

Friday has all of the week’s highly important economic data scheduled. The Labor Department will start the day by posting March’s Producer Price Index (PPI) at 8:30 AM ET. It will give us an important measurement of inflationary pressures at the producer level of the economy. There are two portions of the report that analysts watch- the overall reading and the core data reading. The core data is more important to market participants because it excludes more volatile food and energy prices. If it shows rapidly rising prices, inflation fears may hurt bond prices since it erodes the value of a bond’s future fixed interest payments, leading to higher mortgage rates. A good size decline in prices would be good news for the bond market and mortgage rates. Current forecasts are calling for a 0.1% decline in the overall reading and a 0.1% rise in the core data.

Also early Friday morning, the Commerce Department will release March’s Retail Sales data. This piece of data gives us a measurement of consumer spending levels, which is very important because consumer spending makes up over two-thirds of the U.S. economy. Forecasts are calling for no change in sales from February to March. If we see an increase in spending, the bond market will likely fall and mortgage rates will rise as it would indicate consumers are spending more than thought, fueling economic growth. However, a weaker than expected reading could push bond prices higher and mortgage rates lower Friday, especially of the PPI gives is favorable results also.

The final release of the week is the University of Michigan’s Index of Consumer Sentiment at 9:55 AM ET Friday. Their consumer sentiment index will give us an indication of consumer confidence, which hints at consumers’ willingness to spend. If confidence is rising, consumers are more apt to make large purchases. But, if they are growing more concerned of their personal financial situations, they probably will delay making that large purchase. This influences future consumer spending data and can have a moderate impact on the financial markets. Good news would be a sizable decline from March’s 78.6 reading. Current forecasts are calling for a reading of approximately 78.0.

Overall, look for the most movement in rates the latter part of the week, particularly Friday. The PPI and Retail reports are the biggest names on the agenda. Either of them can cause significant movement in the markets and mortgage rates. Look for the stock markets to also influence bond trading and mortgage rates the a good part of the week as traders react to the earnings news, but I believe we will see the most movement in rates the latter part. I am expecting it to be an active week for the mortgage market, so please maintain contact with your mortgage professional if still floating an interest rate.

Farmers’ Markets vs. CSA Boxes

With Spring comes visions of tender peas, strawberries, and fresh radishes. Maybe your garden isn’t producing yet, or maybe it’s not large enough to produce all that you want. (But definitely get something planted, even if it’s just basil). Your next best bets for good, organic and locally grown produce are farmers’ markets or join into a Community Shared Agriculture (or CSA).

Either way, you’ll be guaranteed super fresh produce regularly. And you’ll also get introduced to new varieties of fruits and vegetables that you can have fun experimenting with.

 

Farmers’ Markets

A farmers’ market is a physical retail market featuring foods locally created sold in vendor booths, stands or tables. Some vendors sell prepared foods like hummus or sauerkraut, and others just sell tomatoes or honey. Some farmers’ markets are open year round, and others will start to open up now that the weather is nicer. Some markets are open the mornings on weekends, and others are in the evenings during the week.

Farmers’ markets are a wonderful place to hang out as they also usually have street performers and food vendors, and can be a great social activity with friends or family.

Another bonus with farmers’ markets are when your garden starts producing, you can buy only what you need.

The downside is that not all vendors show up ever week, so if you were hoping for something specific, you may be disappointed.

Here is a directory of farmers’ markets in California.

 

CSA

Community-shared agriculture is sometimes also known as community-supported agriculture. It’s a network of individuals who have pledged to support one or more local farms. CSA members pay at the beginning of the growing season for a share of the anticipated harvest. Then as the harvest progresses, the members get a weekly box with their part. Some CSAs deliver, and others have pickup sites. Some CSAs include bread, eggs, dairy products, cut flowers, honey, fruit and meat as options.

The downside of a CSA is that you are locked into what they deliver.  If you don’t like kale, and you get two bunches, you’ve got to get creative or find a friend who does like kale. Some people love the surprise factor and still others enjoy the challenge of cooking what you have.

If you have more than you need, you may want to look into preserving techniques like canning, freezing, or dehydrating to have additional vegetables in the winter.

 

Bottom Line

The nice thing about the CSA is that they email you what to expect so you can plan accordingly, and fill in gaps with a trip to the farmers’ market where you can enjoy the social aspect. Another idea is to find a friend or neighbor and share the share with them. By alternating weeks, you can still support the CSA and have the flexibility to get other items from the farmers’ market.

Do you want to try some new vegetables this year?

Natural Tips for Surviving Allergy Season

Natural Tips for Surviving Allergy Season

Last week, we talked about ways to use natural cleaners to reduce allergic reactions to chemicals. This week, we’re just going to focus on allergies since it’s Spring, and things are starting to bloom.

Have you found yourself reaching for the tissue box more yet?

 

Types of Allergies

• tree pollen
• mold
• flower pollen
• grasses

It can take seven years for an allergy to develop. So while you may have not been allergic to acacia trees when you were little, that big yellow puffball down the street may be making your eyes water  now. It’s a good idea to get checked by an allergist if you notice a change in your allergic reactions, such as if your allergies seem to be getting worse every year.

Some allergy seasons, it’s worse for everyone, so monitor the news as well.

 

Super Tips

Seven Tips from Cowrieshell

1. Start eliminating ALL mucous forming foods for the next 3 weeks, i.e. white flour, sugar, breads, pasta, bananas, tofu, milk, ice cream, chocolate, candy, sodas, cheese, etc.
2. Schedule a few colonics. At least 3-4 before spring arrives.
3. Google ‘Neti pots’, it’s a good tool to own.
4. Before having breakfast, drink a glass of warm water with half of a fresh lemon squeeze into it. This helps to alkaline your system, neutralizing the acids which accumulated in your body while you were sleeping.
5. Start juicing again if you stopped during the winter months.
6. Drink loose leaf herb teas and eat seasonal fruits for break-fast (breakfast) Also, be aware that bananas can be mucus forming.
7. Start taking a liquid B-12 supplement (stress formula).

More Quick Tips

If you take allergy medicine, start a few weeks before you know your allergies will hit. You can fight the symptoms better when your system is ready for it, and medicines like antihistamines need some time to build up.

Keep windows closed. Pollen and spores tend to be released in the early and mid-morning. So this also means that you should time outdoor activities as well. If your home gets stuffy, turn the air conditioner on a little earlier then normal. Or look into investing in a house fan. But if you’re allergic to molds and dust and other indoor allergens, throw open all the windows and doors and let the fresh air in.

Shower at the end of the day to get the pollen and spores off of you. Also, when you get home, change out of your clothes so you’re not getting the pollen all over the house.

Look into nasal irrigation to get the pollen and spores out of your nose as well.

Wash your pillowslips in hot water at least once a week.

If you want to work outdoors, like in your garden, wear a mask. No one will think it’s silly.  Look for a mask with a rating of N95 which means it filters out 95% of particles.
From HealthCentral:

Know your allergens. If you have some allergy symptoms during winter months you are probably allergic to dust mite, pets or mold spores. Indoor environmental controls may help you during the outdoor allergy seasons by reducing your response to these indoor triggers over night. Sometimes indoor triggers are more of a problem when the outdoor allergens pick up (a process called priming).

Don’t wait until you’re miserable.  If you know you historically get Spring allergies, talk to your doctor or allergist now so you can have the best tools to stay happy and healthy this season.
What are you allergic to? (and don’t say laundry or business meetings)

Sell Your Old Stuff In Consignment Stores

You’ve moved from an apartment to your first home, or you’re just ready to completely redecorate a room. What to do with the old stuff? You could list it on Craigslist, but then you’d have to meet up with someone who would probably want to haggle on the $10 price.  Or you could have a garage sale where the early birds knock on your door at 5:30am to see if you’re selling a vacuum.  Or you can let the problem be someone else’s, and you just take home the cash.  Consignment stores handle almost everything for you.

There are a few types of consignment stores. The first is the classic store where you leave your items, and they are responsible for selling.  The second type is more like a warehouse. They take your items and list them on eBay and manage the whole process for you including shipping.  Both take a percentage of the final sale price or a flat fee.

Another major positive is that the furniture is out of your house immediately allowing you to repaint, wallpaper, re-carpet, or even change over to wood flooring before buying new furniture. (Or if you’re in a consignment store and see something even better, you can bring it home right away)

eBay Drop Off Stores

Companies like iSold It provide customers with an easy, hassle-free way to sell items online. To find one near you, use an online directory like eBay Drop Off Stores or the eBay Trading Assistant.

Organizational expert Peter Walsh, from TLC’s “Clean Sweep,” confirms the trend. “eBay drop-off stores like iSold It are really the hot new trend in home organization,” he notes. “For occasions such as that yearly cleaning, they provide an easy way for you to get that clutter out of your house and earn some extra cash.”

According to a recent PEW Internet and American Life Project survey, only 22% of online American adults have used the Internet to sell items. eBay drop-off stores professionally photograph the item, write descriptive copy, list it online, collect payment and then pack and ship the item. Once the transaction is complete, the seller receives a check in the mail. For many drop-off stores there are no up-front charges; instead, commission is charged once the item sells.

The commissions can run from 25-40%, so do some research and decide what you want to receive for the item.

Classic Consignment Stores

Often, consignment stores are broken up into types of stores such as furniture and housewares, clothing, and baby items. The good news is that items often sell very quickly in consignment stores so you get paid quickly.
From the Fun Times Guide:

I would, however, recommend consignment shops for buying and selling furniture and housewares! No joke.

I’ve probably sold household items through consignment shops about a half-dozen times in Texas, Florida and here in Nashville (actually Franklin).

In my experience, you can find huge discounts on name-brand, good-quality furniture, decorations, and household accessories. (Think, big mirrors, coffee tables, framed prints, decorative throw pillows, knick knacks, and of course furniture — sofas, chairs, bedroom furniture, bookshelves, etc.).

In fact, items sell so quickly at the furniture-type consignment shops I’ve been to that you have to grab something the first time you see it (if you’re buying), and you get a hefty paycheck right away (if you’re selling).
Overall, I’ve had excellent experiences, both shopping and selling. And I’ve gotten great deals both ways.

TIP: You can find some really great deals on furniture, housewares, and baby items at the consignment shops located in trendier, more upscale neighborhoods. If there’s one several miles away, it’s usually worth the drive!

So, what do you need to know

Read the contracts carefully and know what you’re getting yourself into.  Some consignment stores require you to forfeit your rights to the piece and they can dispose of it in any way they like after two months. Different stores have different fees and commissions. Some places will pick up the furniture for you, and others won’t.

The bottom line is how much effort do you want to put into selling your old furniture. And, chances are good that you will make a larger profit selling through consignment than you would through a garage sale.  Plus, you don’t have to have anyone over to your home like you would through craigslist.

Would you use the money for more furniture or for a vacation?

This Week’s Market Commentary

This week brings us the release of only three pieces of monthly economic data that is relevant to mortgage rates in addition to two Treasury auctions. One of the economic reports is considered highly important to the markets, but the others are not likely to be market movers. We still could see a fair amount of movement in mortgage rates though, especially if stocks make a sizable move upward or downward.

Nothing of concern is due today or Tuesday morning, leaving bond trading to be driven by the stock markets the first part of the week. If the major stock indexes move higher, we will probably see funds move away from bonds and into stocks. This would lead to higher mortgage rates as bond prices and yields move in opposite directions. Mortgage rates tend to follow bond yields, so we prefer to see bond prices go up, pushing rates lower.

The week’s first release is one of the more important ones we get each month. The Commerce Department will post January’s Retail Sales data early Wednesday morning. This report is very important to the financial markets because it measures consumer spending. Since consumer spending makes up over two-thirds of the U.S. economy, any related data is watched quite closely. If Wednesday’s report reveals weaker than expected retail-level sales, the bond market should thrive and mortgage rates will fall since it would be a sign that the economy is not as strong as many had thought. However, a stronger reading than the 0.1% increase that is expected could lead to higher mortgage rates Wednesday.

January’s Industrial Production data will be released mid-morning Friday. It gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities and can have a moderate impact on the financial markets. Analysts are expecting to see a 0.2% increase in production from December to January. A decline in output would be good news and should push bond prices higher, lowering mortgage rates Friday.

February’s preliminary reading to the University of Michigan’s Index of Consumer Sentiment will be released late Friday morning. This index measures consumer willingness to spend and also usually has a moderate impact on the financial markets. If it shows an increase in consumer confidence, the stock markets may move higher and bond prices could fall. It is currently expected to come in at 73.5, down slightly from January’s final reading of 73.8. That would indicate consumers were a little less optimistic about their own financial situations than last month and are less likely to make large a purchase in the near future. Since consumer spending makes up over two-thirds of the U.S. economy, this would be considered slightly favorable news for bonds and mortgage pricing.

The two important Treasury auctions come Wednesday and Thursday when 10-year Notes and 30-year Bonds are sold. The 10-year sale is the more important of the two as it will give us an indication for demand of mortgage-related securities. If the sales are met with a strong demand from investors, we should see the bond market move higher during afternoon trading the days of the auctions. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would likely result in upward afternoon revisions to mortgage rates.

Overall, I believe we will see the most movement in rates the middle part of the week. There is a small improvement waiting for Monday’s open if your lender did not improve pricing Friday afternoon when the bond market strengthened during late trading. The Dow closed just under 14,000 Friday, so we will also be watching it for an indication of bond movement. I believe that failure to break above that level could mean a downward leg in stocks that would boost bond prices and improve mortgage rates. I see Wednesday as the likely candidate for the most important day and Tuesday being the least active, assuming stocks remain calm most of the week. However, despite it being a relatively light week in terms of economic releases, I still recommend maintaining contact with your mortgage professional of still floating an interest rate.

How Often Does Your Credit Score Change?

This is a question we often get during the mortgage process.  A credit check may have uncovered some incorrect information, and you get it updated.  So how fast will it change?

What is a Credit Score

Per the reporting agencies (TransUnion, Equifax, and Expperian), your score is a snapshot of your current credit report as well as how many pulls you have had on your report.  For example, from Yahoo:

“Right now it’s 11:40 my time,” said Rod Griffin, director of public relations for Experian, when I interviewed him for this story. “Let’s say a lender requested your credit report right now. If you apply for credit (again) in an hour your credit report could be different,” he says, referring to the inquiry that would have been generated when the first lender accessed my credit information.

“Credit reports can change as often as every day if there is new information provided to the credit bureaus,” says Barry Paperno, community director for Credit.com.
If you want to be technical about it, you don’t really have a credit report on file with the credit reporting agencies to begin with. Explains Griffin: “We have information from each of the lenders, and we go out to our databases and compile information from those databases when a credit report is requested. Your credit report represents a snapshot of your credit history at any given point in time.”

That means that the information is available in the credit reporting agencies’ (CRAs) databases at the time a credit report is requested is the information that will be reported. “You don’t have a credit report until you apply for credit and it’s requested,” Griffin says.

But it’s not like checking your online bank account and seeing the debit card purchase you made a few minutes ago in your running balance. “It’s not real time,” says Griffin.

So What Do You Recommend?

• Set up payment reminders so you never have a late payment again.  Do remember that a lot of credit card companies want the payment a few days before the due date to have time to process it.  It’s not fair since they say it’s due on a certain date, but it’s best be a few days early.
• Set up automatic payments using online banking where you can.
• Reduce the amount of debt you  owe.
• Check your credit report annually.  You can get your free report here.  Now, this won’t give you a score unless you pay for it.  But you can at least look for mistakes which do happen.
• Get your credit report 3-6 months before applying for a major loan.
• Be patient.  It can take 30-60 days for information to be updated on a credit report after you’ve made changes (like paying off a student loan, or had disputed information resolved)

8 Surprising Things That Impact Your Credit

And what would a post be without some trivia.  This is from Credit.com blog:

1. Renting a car
2. Applying for credit (even when you aren’t rejected)
3. Disputing an account
4. Having credit cards, but no loans
5. Just a single late payment
6. Closing an account
7. Divorce
8. Late library books

What other questions do you have about your credit report and score?

What Happens to Your Donated Items

Many of us are addicted to watching Storage Wars.  In the earlier seasons, they’d show Dave Hester’s operation for sorting through all the massive amounts of items from his lockers.  He mentioned how he had to do some community service at a place like Goodwill and Salvation Army, and learned how they sort through donations, and applied that assembly line process to his store.

So, we bet you were wondering what happens when you drop off a box somewhere.

Types of Stores

While it can go by many names, the purpose of a thrift store is to sell donated items in order to fund a charity or a cause.  It’s often called hospice shop, resale shop, charity shop, thrift shop or thrift store.  In Australia and New Zealand, it’s called an op shop for “opportunity shop.”  These shops are staffed by volunteers.

For a directory of Thrift Stores, check out the Thrift Shopper’s National Directory.

If you have questions, ask at the front counter what cause they are supporting.  If they have none, you’re in a second hand store (like Dave Hester had)

Some religious and spiritual organizations also accept charitable donations, but they are more limited in what they accept.  The items are then passed out to the needy.  You should check directly with the organization for their guidelines.

 

What to Donate

First, find out if your organization accepts what you want to donate.
Here’s a list from the Salvation Army:

Clothing, Toys & Furniture Donations Dos and Don’ts

• Do test all electrical and battery-operated equipment to make sure it is still working prior to donation
• Do include all manuals, if available
• Do include all pieces and/or parts
• Do donate items in clean, non-soiled condition
• Do call ahead of time if dropping items off at a center or store
• Do bring an itemized list of your donation and ask for a receipt
• Do NOT donate broken or soiled items
• Do NOT leave items outside a collection box or center
• Do NOT donate items that have been recalled or banned or which otherwise
• Do NOT donate items that do not meet current safety standards
• Do NOT donate items that have scratches, rips and/or tears

 

Once It’s Donated

First, the items have to be sorted into type: clothing, household, furniture, etc.  From there, they evaluate if the item needs to be cleaned, recycled or thrown away.

The clothing then gets sorted into sizes and marked.

Then the item gets priced.

If it’s a large organization, they may have one central clearinghouse for donated items, and then try to ensure a good stock in each store.

What’s your favorite organization where you donate?

This Week’s Market Commentary

This week brings us little to drive bond trading and mortgage rates. There is only one monthly economic report scheduled, which is considered to be of low importance to the markets anyhow. That would give the appearance that we are in for a quiet week for mortgage rates, but I don’t believe this will be the case. There probably will be less activity and movement than we saw last week. However, I suspect that we will still end up seeing a fair amount of movement in rates between Monday’s opening and Friday’s closing.

There is nothing of importance scheduled to be posted Monday or Tuesday. This means that the stock markets will probably dictate bond direction there first part of the week. If the major stock indexes rally again, they will pressure bonds leading to higher mortgage rates. However, stock weakness should allow bond prices to rise and mortgage rates to improve.

Besides the sole monthly economic report late in the week, we also have two Treasury auctions that have the potential to influence mortgage pricing. They will be held Wednesday and Thursday when 10-year Notes and 30-year Bonds are sold. The 10-year sale is the more important of the two as it will give us a better indication for demand of mortgage-related securities. If the sales are met with a strong demand from investors, we should see the bond market move higher during afternoon trading the days of the auctions. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would likely result in upward revisions to mortgage rates.

Also worth noting is some news from overseas before the markets open Thursday. The Bank of England’s monetary policy announcement (equivalent to our FOMC) will be released at 7:15 AM ET while the European Central Bank will announce at 7:45 AM ET. The ECB will draw the most attention as global investors are extremely concerned about the Eurozone and what actions will be taken to shore up some of its’ member’s finances. We should be on alert for a reaction in the bond and mortgage markets if they yield any surprises.

November’s Goods and Services Trade Balance will be posted early Friday morning. It measures the size of the U.S. trade deficit and is expected to show a $41.8 billion deficit. This data usually does not directly affect mortgage rates, but it does influence the value of the U.S. dollar versus other currencies. A stronger dollar makes U.S. securities more attractive to international investors because they are worth more when sold and converted to the investor’s domestic currency. But unless we see a significant variance from forecasts, I don’t believe this data will lead to a change in mortgage rates Friday.

Overall, it would be easy to say this will be a calm week for the mortgage markets due to the lack of important or highly influential events scheduled. I would not be surprised to see stocks move lower for the week, helping to push funds back into bonds. We saw some improvement in bonds late Friday, so if your lender did not improve rates during afternoon trading, you have an improvement of approximately .125 – .250 of a discount point waiting at Monday’s opening. That could shrink or get larger depending on how the markets perform during early morning trading, but there is a decent possibility of starting the week off in the right direction. With the benchmark 10-year Treasury Note currently yielding 1.90%, I believe there is more likelihood of seeing bonds improve (pushing yields and mortgage rates lower) in the immediate future than seeing them move lower (raising yields and mortgage pricing). Of course, this is just speculation and only an opinion, so please maintain contact with your mortgage professional if still floating an interest rate.

 

Happy Boxing Day

We hope you received everything you wanted for Christmas.  Today is Boxing Day.  The joke currently is it’s the day when you box everything up you don’t want and take it back to the store.  In reality, Boxing Day is traditionally when  servants and tradesmen would receive gifts from their superiors.  It’s unknown when it first started, but there is evidence that dates it back to the middle ages.  Since the servants would have to wait upon their masters on Christmas Day, they were given the 26th off to visit family.

Historians suspect it goes back to Roman times when people would put coins, food, and clothing in metal boxes outside of churches for the Feast of St. Stephen.  We sing about the Feast of St. Stephen in the carol Good King Wenceslas who was a king in Czech from 907-935.

Christmas Wrappings

You’ve probably gathered up all of the ribbons and bows and wrapping paper.  But did you know:

• Average number of presents wrapped by an adult each holiday season: 15
• Wrapping paper and shopping bags thrown away each holiday season: 4 million tons
• Annual sales for the gift wrap industry: $2.6 billion (ok, we have birthdays too)
• Christmas cards soled each year in the U.S.: 2.65 billion (and if you stacked them all up, it would be 10 stories tall)
• In one survey, 53% said that they’ve saved and re-used wrapping paper. (obviously not the stuff opened by small children in a frenzy)
• Amount of ribbon thrown away each year: 38,000 miles (enough to tie a bow around the Earth)

 

Other Trivia

• 12.9 million fake trees were purchased in 2011 at an average cost of $78.  The average lifespan of an artificial tree is 10 years.
• 21.6 million real trees were purchased in 2011 at an average cost of $46.
• So if you bought a fake tree, by year 3, you’ve gotten back your investment.  For some, like those with allergies, fake is the only way to go.  For others, real trees are the only choice.  16% of those people prefer to cut their own tree.
• And it’s a real mood booster no matter which way because 87% of Americans say that Christmas decorating makes them happy, and in 2011, 71% of U.S. households decorated for Christmas.

And you can have a lot of (cheap) fun driving around local neighborhoods in the evening and admiring the colorful displays.  Did your neighborhood put up lights this year?

This Week’s Market Commentary

This week brings us the release of five economic reports that are considered relevant to mortgage rates, but only four of them are of concern. In addition to them, we also have the year’s last FOMC meeting and other related Fed events and two Treasury auctions that have the potential to influence mortgage pricing. The biggest news comes the middle and late days of the week, so we should see more movement in rates as the week progresses.

There is nothing of relevance scheduled for today. This means we can expect the stock markets to drive bond trading and mortgage rates again. If the major stock indexes open the week with gains this morning, bonds may move lower, pushing mortgage rates higher. But a weak open in stocks could lead to slightly lower mortgage rates today. We could also see traders position themselves ahead of the week’s agenda, so even though there is nothing concerning on the calendar, we could see mortgage rates change.

October’s Goods and Services Trade Balance report will be posted early Tuesday morning. This report gives us the size of the U.S. trade deficit, but it is considered to be of low importance to mortgage rates. It is actually the week’s least important monthly report. It is expected to show a $42.7 billion trade deficit, which would be an increase from September. Unless it varies greatly from forecasts, I don’t expect this data to affect mortgage pricing Tuesday.

Wednesday has no important economic data scheduled for release but it does have the 12:30 PM adjournment of the FOMC meeting that began Tuesday. It is widely expected that Mr. Bernanke and company will not change key short-term interest rates at this meeting, but traders and analysts are anxious to get the Fed’s current economic forecasts. Also worth noting is that the meeting is ending earlier than the traditional 2:15 PM because it is one of the meetings that will be followed by a press conference hosted by Fed Chairman Bernanke. The meeting will adjourn at 12:30 PM, forecasts will be posted at 2:00 PM and the press conference will begin at 2:15 PM. It is fairly safe to assume that all of that will lead to afternoon volatility in the markets and mortgage rates Wednesday.

There are Treasury auctions scheduled for several days this week, but the two important ones are the 10-year Note sale Wednesday and the 30-year Bond sale Thursday. Wednesday’s auction is the more important of the two and will likely have a bigger influence on mortgage rates. Results of Wednesday’s sale will be posted at 11:30 AM ET due to the FOMC events while Thursday’s will be at the usual 1:00 PM. If they were met with a strong demand from investors, particularly international buyers, we should see strength in bonds and improvements to mortgage pricing those days shortly after. On the other hand, a weak interest in the auctions could lead to upward revisions to mortgage rates.

Thursday has two important economic reports scheduled for release, both at 8:30 AM ET. November’s Retail Sales report is one of them. This report will give us a key measurement of consumer spending by tracking sales at retail level establishments. This data is highly important to the markets because consumer spending makes up over two-thirds of the U.S. economy. Rapidly rising consumer spending raises the possibility of seeing solid economic growth. Since long-term securities such as mortgage bonds are usually more appealing to investors during weaker economic conditions, a large increase in retail sales will likely drive bond prices lower and mortgage rates higher Thursday. Current forecasts are calling for an increase of 0.4% in November’s sales.

November’s Producer Price Index (PPI) will also be posted early Thursday morning. It measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices, giving a more stable reading for analysts to consider. If Thursday’s release reveals stronger than expected readings, indicating that inflationary pressures are rising, the bond market will probably react negatively and drive mortgage rates higher. If we see in-line or weaker than expected numbers, the bond market should respond well and mortgage rates should fall. Current forecasts are showing a 0.5% decline in the overall index and a 0.1% rise in the core data.

Friday has more highly important data when November’s Consumer Price Index (CPI) is posted at 8:30 AM ET. It is similar to Thursday’s Producer Price Index, except it tracks inflationary pressures at the more important consumer level of the economy. Current forecasts call for a decline of 0.2% in the overall index and a 0.1% rise in the core data reading. This data is one of the most watched inflation indexes, which is extremely important to long-term securities such as mortgage related bonds. Rising inflation erodes the value of a bond’s future fixed interest payments, making them less appealing to investors. That translates into falling bond prices and rising mortgage rates. Therefore, weak readings would be favorable for the bond market and mortgage shoppers.

The week closes with November’s Industrial Production mid-morning Friday. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. Analysts are expecting it to show a 0.4% increase in output, indicating modest manufacturing growth. A smaller than expected rise would be good news for bonds, while a stronger reading may result in slightly higher mortgage pricing. However, the CPI release is much more important to the markets than this data.

Overall, there is a high probability that we will see an active week in the financial and mortgage markets. Wednesday will probably be the most important day due mostly to the Fed events, but Thursday has two very important economic reports so we may see plenty of volatility that day also. Monday is an easy choice for least important, however, we could still see an extension of Friday’s trading affect mortgage rates Monday also. I still believe we are due for a stock pullback that will cause a flight-to-safety in bonds, hence the optimistic approach towards interest rates. On the other hand, with so much on tap this week and a strong likelihood of several active days in the markets, it is strongly recommended that you maintain contact with your mortgage professional if still floating an interest rate.

Are You Ready for Black Friday?

With businesses like WalMart, Target and Toys R Us announcing that they will open on Thanksgiving Day, the lines of Black Friday shopping have blurred into the Thanksgiving holiday. Amazon has announced that they will be providing Black Friday style savings that started last week and will continue on.

Some families are turning it into a tradition of eating early, napping, and then going shopping for the best deals.  For some, it’s a way of making their limited budget go farther.

Some stores hold items back and then have a large unveiling for Black Friday.  It’s still a good idea to scope out the stores, where they have merchandise, and create your plan.
So in today’s blog, we’re going to provide some resources so you can make your plan whether it’s online, or waiting in line.

BFADS

The granddaddy of all sites is bfads.net.  It was founded by a CalPoly student who would get ahold of Black Friday circulars before they were made available, and he would post them on his site.  In the beginning, companies would hit him with a cease and desist order, but over time, they realized that it was a great way to get people excited about shopping, and now, he provides the circulars starting November 1st.

 Other Resources

• blackfriday.com
• blackfriday.fm

And you can also find out more about deals on the websites of the businesses you’re interested in.

Things to Remember

• Create your list of who you’re buying for.  If it’s clothing, make sure you have their sizes and color preferences as items may not be returnable.  It could be exchange only.  And if it is returnable, it will only be for the amount you paid.
• See if you can shorten your list.  Talk with your friends about exchanging cookies or letters of how much you appreciate one another.
• Decide on your budget and be firm on it.  It’s easy to get caught up in the moment of what appears to be a great deal, but you don’t want the credit card hangover in January.
• Consider bringing only one credit card or the cash in your budget.
• If you bring someone else, help each other to stay on target.
• Make sure you budget something for yourself.   After all, you’re the one out there.
• Be safe.  If there’s a donnybrook over the last Giggle Me Something Doll, you really don’t want to be a part of it.  Better to wait and pay a bit more later then pay for medical bills now.  And watch out for crowds that surge. You don’t want to fall down and get stepped on.
• There will always be jerks.  Remember to breathe and don’t lower yourself to their level.
• Bring water to stay hydrated.
• Wear comfortable shoes.

And don’t forget to plan in Cyber Monday when companies have additional sales!
Do you save up to buy something major during black friday?  Or do you just do your holiday shopping?  Or do you stay home and enjoy the quiet day?

How Long Should Your Close Be?

Your offer is almost accepted.  Now you and your Realtor® are working with the seller and their Realtor® on the terms of the close.  How long should it be?

 What is a "Close"?

When people talk about the close of a home sale, they are referring to the close of escrow when all the terms of the purchase contract have been met, the seller deposits the deed, and the buyer deposits the funds.  Some conditions (and yours will vary based upon your location…even in the same state) you will probably need to meet (from About.com Home Buying/Selling)

• Fully executed purchase agreement and addendums.
• Deposit of earnest money deposit.
• Home inspection or waiver.
• Fulfillment of seller obligations such as submission of pest inspection report and / or completion, roof certification, home warranty, preliminary title policy, beneficiary demand receipt, repairs, if any, according to the Request for Repairs.
• Completion of buyer inspections, including release of contingencies, if demanded.
• Buyer’s final walk-through inspection or waiver.
• Appraisal of property by lender’s appraiser.
• Lender’s loan approval and satisfaction of loan conditions by buyer such as depositing evidence of a homeowner insurance policy.
• Seller’s and Buyer’s signed escrow instructions.
• Seller’s signed and notarized deed conveying title.
• Buyer’s signed and notarized deed of trust and executed promissory note.
• Buyer’s signatures on all loan documents.
• Deposit of buyer’s funds from lender.
• Deposit of balance of buyer’s down payment and buyer’s closing costs.

Seller Usually Goes First

Usually, the seller will request a close that is best for them.  It could be long if they need to find another house, or if they want their children to finish out a school term.  Or it could be short because they’ve already moved and want their cash.
One buyer had a set date in the offer for a birthday as the final close.  The seller countered with a sooner date that happened to be his birthday.

Brand New Homes

But what if you’re purchasing a brand new house?  You should work closely with the builders as to their schedule.  If you want to move in sooner, they might have the flexibility to adjust the schedule of which houses they complete when.
Additionally, do your research and find out if the builder is known for completing on time.  If they aren’t, you may want to put in a clause where they pay for your rent for each full month past the agreed upon date.

Other Considerations

You will also need to have enough time for appraisers and inspectors.  If they’re busy, it could delay your final settlement.
Buyers with pre-approval will be able to close much sooner than buyers who are not.  If many people are going for mortgages at the same time, it may not only delay you locking in an optimal rate, but it could also delay your taking possession of the house.  The underwriters will need to process the paperwork and review the appraisal, and this can sometimes take a week or two.  If a document is missing from the file such as a title clearance, it could delay the close.
Other things that can go wrong (also from About.com Home buying/selling)

• Low appraisal or the underwriter orders a review appraisal that does not match the first appraisal.
• Additional debt found on the buyer’s updated credit report.
• Mistakes noted in the buyer’s credit report.
• New liens or judgments filed against the buyer or seller upon title update.
• Clouds on title.
• Marital status change for buyer or seller.
• Required updated bank statements or financial documents.
• Insurance information missing.
• Expired loan or program commitment.

Bottom line is that pre-approval will help.  And work with your Realtor® as to when the close of escrow is best for you, and how flexible you can be.

 

What to Do With Leftover Halloween Candy

We hope you had a happy and safe Halloween.  Whether you passed out candy and have extras, or your kids got too much (or even want to get rid of the stuff they don’t like), here are some ideas for getting through that mountain of sugar.

Donate It

Halloween Candy Buy Back works with dentists and Operation Gratitude. You can go to the website and look for participating dentists near you. Some dentists are offering prizes, or money in exchange for the candy. You can also send your candy directly to:

OPERATION GRATITUDE/ CA ARMY NATIONAL GUARD
17330 VICTORY BLVD.
VAN NUYS, CA 91406
ATTN: RICH HERNANDEZ / 262-674-7281

Check your local newspaper, television or radio station for other local donation spots.

Exchange It

Some dentists are offering coupons or cash in exchange for your candy. They then donate the candy to Operation Gratitude.

You can look online at Halloween Candy Buy Back or check the websites for your local newspaper, television or radio station for participating dentists.

Create With It

Parenting Magazine
JournalStar Ideas

Freeze It

Put hard candies or fruity sweets like Starburst into tightly sealed bags. Chocolate freezes very well, and is a great treat for your brown bag lunches. Plus you wont need to use an ice pack to keep your beverage cool.

But do be careful if you eat the candy from the freezer. Let it thaw a little bit otherwise you might crack a tooth.

Bake With It

Chopped or crushed, they add a great flavor to brownies and cookes…even cake batter. Use skittles and other small colored candy to decorate cakes and cupcakes.

Drink (or Eat) It

Add it to a milkshake like the ice cream chains do, only save the money by making it yourself. Some blenders can handle chopping up the candy like Butterfinger or Reece’s Peanut Butter Cups, and some can’t and you may need to chop it up a little before blending. And while it’s not drinking, you can also use candy as an ice cream topping. If you’re really adventurous, you could thaw the ice cream out a little and smoosh in the candy, and then pop it back into the freezer.

Play With It

Have a science experiment afternoon where you try out different things with the candy. Microwave it and see if it melts. Create a mentos geyser with a bottle of diet Coke. Find more ideas here

So what will you be doing with your candy?

This Week’s Mortgage Commentary

This week has an active agenda with seven economic reports scheduled for release that have the potential to influence mortgage rates. There is at least one relevant report scheduled each day this week, making it likely to be an active one for the financial and mortgage markets.

The first release of the week will came today at 8:30 AM ET when September’s Personal Income and Outlays report will be posted. This data gives us an indication of consumer ability to spend and current spending habits. It is important to the markets because consumer spending makes up over two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. This is bad news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to investors. Analysts are expecting to see a 0.6% increase in income and a 0.4% rise in spending. Smaller than expected increases in both readings would be good news for the bond market and mortgage pricing.

October’s Consumer Confidence Index (CCI) is Tuesday’s only news. This Conference Board index will be released at 10:00 AM ET Tuesday. It gives us a measurement of consumer willingness to spend and is expected to show a small increase in confidence from last month’s 70.3 reading. That would mean that consumers felt a little better about their own financial situations than last month, indicating they are more likely to make large purchases in the near future. As long as the reading doesn’t exceed the forecasted 72.5, we will likely see the bond market react favorably to this report. This data is watched closely because it is related to consumer spending.

The 3rd Quarter Employment Cost Index (ECI) will be released at 8:30 AM ET on Wednesday. This data tracks employer costs for salaries and benefits, giving us an indication of wage inflation pressures. Rapidly rising costs raises wage inflation concerns and may hurt bond prices. It is expected to show an increase in costs of 0.5%. A smaller than expected increase would be good news for mortgage rates, but this is not one of the more important reports of the week. Therefore, it will likely take a large variance from forecasts for this report of have a noticeable influence on mortgage pricing.

Thursday has two relevant economic reports scheduled for release. The first is the 3rd Quarter Productivity reading at 8:30 AM ET. It is expected to show a 1.6% increase in worker productivity during the third quarter. A larger increase would be good news for the bond market because higher levels of employee productivity allow the economy to expand without inflationary pressures being a concern.

The key data of the day and one of the two highly important reports of the week will be the Institute for Supply Management’s (ISM) manufacturing index at 10:00 AM ET Thursday. This index measures manufacturer sentiment, which is important because it gives us an indication of manufacturing sector strength. It is considered to be one of the more important reports we see each month, partly because it is the first report every month that tracks the preceding month’s activity. Thursday’s release is expected to show a reading of 51.0, indicating that manufacturer sentiment slipped from September’s level. This means fewer surveyed business executives felt business improved during the month than in September, hinting at manufacturing sector weakness. A smaller than expected reading would be good news for bonds and mortgage rates, especially if it falls below the benchmark 50.0.

Friday brings us the release of two pieces of economic data, one of which is arguably the single most important monthly report. The Labor Department will post October’s Employment report early Friday morning. This report is comprised of many statistics and readings, but the most important ones are the unemployment rate, the number of new jobs added or lost during the month and average hourly earnings. Current forecasts call for the unemployment rate to move higher by 0.1% to 7.9%, an increase in payrolls of approximately 125,000 and a 0.2% increase in average earnings. Weaker than expected readings should renew concerns about the labor market and rally bonds enough to improve mortgage rates, especially if the stock markets react poorly to the news. On the other hand, if the report indicates employment sector strength, we could see mortgage rates spike higher Friday morning.

The second report of the day will be September’s Factory Orders data. This report is similar to last week’s Durable Goods Orders release except it includes orders for both durable and non-durable goods. It is expected to show a 4.5% increase in new orders from August’s level. A smaller than forecasted increase would be good news for the bond market and mortgage rates while a larger than expected rise is bad news and could contribute to higher mortgage pricing since it would indicate economic strength. It is worth noting though, that the Employment report is much more important to the financial and mortgage markets than this data is.

Overall, the single most important day is likely to be Thursday or Friday. In addition to the economic reports, I believe stocks will experience volatility that will also impact bond trading. The key to the week will be Friday’s employment numbers, but any significant swings in the stock markets may also influence whether mortgage rates close the week higher or lower than Monday morning’s levels.

This Week’s Market Commentary

This week brings us the release of six economic reports for the markets to digest. Unlike last week, the most important events are scheduled for the first part of the week while the latter part is much lighter. However, due to stock earnings along with the week’s economic news, we could see mortgage rates move several days with a decent possibility of seeing an intra-day revision or two.

The week kicks off with the release of an extremely important piece of economic data early Monday morning. September’s Retail Sales report that measures consumer spending will be posted at 8:30 AM ET Monday. This data is very important to the markets because consumer spending makes up over two-thirds of the U.S. economy. Therefore, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop Monday. However, stronger than expected sales would fuel optimism about the economy and would likely lead to a stock rally that hurts bonds prices and pushes mortgage rates higher. Current forecasts are calling for a 0.7% increase in sales. Good news for the bond market and mortgage pricing would be a much smaller increase.

Tuesday has two reports scheduled that may influence mortgage rates. The first is September’s Consumer Price Index (CPI) at 8:30 AM ET. It measures inflationary pressures at the very important consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.5% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading could raise inflation concerns, pushing bond prices lower and mortgage rates higher. Inflation is the number one nemesis of the bond market because it erodes the value of a bond’s future fixed interest payments. When inflation is a threat, even down the road, bonds sell for discounted prices that push their yields higher. And since mortgage rates tend to follow bond yields, this leads to higher rates for mortgage borrowers.

The second report of the day will be September’s Industrial Production data at 9:15 AM ET, giving us an indication of manufacturing strength by tracking output at U.S. factories, mines and utilities. It is expected to show a 0.2% increase in output from August’s level, meaning that manufacturing activity rose slightly. A larger than expected increase in production would be negative for bonds and mortgage rates as it would indicate economic strength. A decline in output would be favorable for the bond market and mortgage rates, but the CPI is much more influential to the markets than this report is and will be the focus of trading Tuesday morning.

September’s Housing Starts is Wednesday’s only release, coming at 8:30 AM ET. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand by tracking construction starts of new homes, but is usually considered to be of low importance to the financial and mortgage markets. It is expected to show an increase in new home starts between August and September. I believe we need to see a significant surprise in this data for it to have an impact on mortgage rates Wednesday.

Thursday also has only a single monthly report scheduled for release with September’s Leading Economic Indicators (LEI) at 10:00 AM ET. This index attempts to measure future economic activity, particularly during the next three to six months. Current forecasts are calling for an increase of 0.2% from August’s reading. This would indicate that economic activity is likely to increase slightly over the next couple of months. That would be relatively bad news for the bond market and mortgage rates, but this report is considered to be only moderately important. Therefore, a small increase would not be of much concern to the bond and mortgage markets. Ideally, we would like to see a decline in the index.

The National Association of Realtors will release September’s Existing Home Sales data late Friday morning. This report gives us an indication of housing sector strength and mortgage credit demand by tracking home resales. I don’t see it having much of an influence on the bond market or mortgage rates, but a reading that varies greatly from analysts’ forecasts could lead to a slight change in mortgage pricing. It is expected to show a decline in sales from August to September, meaning the housing sector remained soft. That would be favorable news for the bond market since a weak housing sector makes a broader economic recovery less likely.

Overall, it appears that Monday or Tuesday are the likely candidates for the most important day of the week. In addition to the economic data, there are many companies posting earning reports during the week, including some big names such as Citigroup, IBM and Intel. If the corporate earnings releases are generally weaker than forecasts, stocks may suffer, making bonds more appealing to investors. The end result would likely be an improvement in rates. The flip side though is stronger than expected earnings that drive stocks higher, pushing bond prices lower and mortgage rates upward. Accordingly, please maintain contact with your mortgage professional if still floating an interest rate.

Storing your outdoor items for Winter

Today we have part 2 of our 4 part series on preparing your home for Winter.

Here in Northern California, we can get some pretty strong winds with our rain. To take good care of our patio furniture and our barbecues, we need to prepare and to store them properly so we don’t have to buy new furniture and grills in the Spring.

Barbecues and Grills

We won’t get into the debate over gas versus charcoal (or smokers, for that matter). We’ll save that for the Spring. Whatever you have, let’s get it safe and secure before the big Northern California rains in November.

If you have a portable charcoal kettle or gas grill, you may want to find room in your garage or car port to store it over the winter where it will be protected from rust. If you live in an apartment and have covered parking, you might be able to fit yours in between the wall and where your car bumper normally stops.
Don’t use it here, though, as there’s a potential for fire or carbon monoxide poisoning.

To prepare your portable grill:

1. Clean completely. Get some oven cleaner and really spray down the grill part. While it’s doing its job, clean out any ash if charcoal, or clean the burners if you have gas. Throw out lava rocks for a gas grill and plan to buying new ones in the Spring. Grease can get stuck in the rocks which you’re never going to get cleaned out. And clean rocks reduce flare ups which provides a better flavor. Hose off the grill, and enjoy it’s bright shiny look.
2. Dry your grill completely to ensure there’s no rust. If there is rust, use steel wool or a wire brush to get it off, and then look if you need to re-coat the surface. You can polish the surface with a simple paste of baking soda and water.
3. Repair anything needing repairing. Nothing is worse then the first sunny day in April, pulling out the grill, and finding out that you needed to fix a burner.
4. Detach propane tanks if you have a gas grill. Make certain to store them safely in an upright position.
5. Read your manual to see if the manufacturer recommends anything specifically. If you can’t find your manual, many companies now put them online. Usually you can find this in Support.

Now put your grill buddy in a safe place. As we mentioned, if it can fit in the garage or carport, that’s the best place. If you can’t, look for an area where there’s an overhang to protect it as much as possible. And invest in a good cover. Make sure you tie down the cover so it doesn’t blow away.

If you have a built in grill, or a large island grill, barbecue or smoker, spend just as much time cleaning, reviewing your manual, and use the covers.

Some of you are able to grill almost all year round (Carmel, Monterey, Silicon Valley…). That doesn’t mean you can get out of doing a little cleaning and maintenance twice a year. Your grill will be so happy if you do. Leave a note in the comments where you are and if you can grill, barbecue or smoke all year.

Patio furniture

Some people have sheds for their patio furniture since they don’t want to spare the room in their garage. If you invested good money in chairs, tables, heaters, canopies and outdoor fireplaces, you will want to take care of them for the long term. Similar to grills, the steps are:

1. Clean off the pillows and umbrellas. Then store indoors. Some people like to put the pillows into large garbage bags to prevent dust from accumulating.
2. Clean all the dirt and grime off of the furniture. If you have wood furniture, consider using some wood soap, or a coating of water sealant.
3. Inspect for any repairs needed on all the parts. If you need a new cord on your umbrellas, order them now so you can repair it before you put it away.
4. Stack lightweight chairs on top of one another. If you can store them indoors like a garage, carport or shed, that’s your best bet. Otherwise the additional weight will keep them in place if a strong wind storm starts to blow. Find a cover to go over them to protect the chairs from the elements.
5. Store lightweight tables indoors. Again if this is not possible, put a cover over, and try to store in an overhang or an area where the wind won’t blow the stacks over.
6. Tie down all covers so they don’t blow away.

No matter how you store your outdoor items, make sure you keep your eyes peeled for spiders when you pull them out in the Spring.

When will you hold your final outdoor party before you put everything away for the season?