Last Week in Review June 23, 2008
For the week of Jun 23, 2008 —- Vol. 6, Issue 26
Last Week in Review
“VERY NICE. IT’S A LITTLE GREASY…BUT VERY NICE. CRUMBLE SOME CRACKERS INTO IT SHELL, THAT WILL HELP TO ABSORB THE GREASE…” Peter Falk’s line from the 1979 classic movie “The In-Laws” is good advice about soup…but doesn’t help us much when it comes to absorbing the high price of oil, a greasy topic that continues to permeate financial headlines.
And last week was no exception, with oil prices continuing to march ever higher, despite an announcement early last week by OPEC member Saudi Arabia that they will increase oil production in the near future. They are concerned that the high price of oil will lead to lower demand and a turn toward alternative energy sources. And Friday’s news didn’t help, with a strike at a Chevron plant in war-torn Nigeria, Africa’s largest oil producing nation. Additionally, Israel conducted a military operation for preparedness in case of a potential strike against Iran’s nuclear plants – which all served to push oil prices higher still. High oil prices are inflationary – so if the march higher in oil prices continues, both the Stock and Bond markets will suffer…and even crumbled crackers won’t help sop up the mess.
But Bonds did manage to find some improvement last week, helping home loan rates get better by about .125%. Negative economic news, including soft housing numbers, weakness from the manufacturing sector and more write-downs announced by financial giant Citigroup all played a hand – causing money to flow out of Stocks and over into Bonds, which helped prices improve.
WANT TO HELP YOUR CAR’S MAINTENANCE BUDGET IMPROVE? YOU MIGHT BE SURPRISED TO LEARN HOW MUCH YOU CAN SAVE…READ THIS WEEK’S MORTGAGE MARKET VIEW!
Forecast for the Week
The coming week is chock full of economic reports that will likely have a big influence on the financial markets. We start off on Tuesday with a report on Consumer Confidence, and also the beginning of Fed meetings which will culminate in a Rate Decision and Policy Statement on Wednesday afternoon at 2:15pm ET. It is widely believed that the Fed will keep the Fed Funds Rate at 2%…but what will be most interesting is the wording of their carefully crafted Policy Statement. If it gives hints of their intent to hike rates in the near future to help fight inflation, it could actually be good news for Bonds and home loan rates.
A look at sales numbers in the new and existing housing markets will come Wednesday and Thursday, and Friday will wrap up the week with a bang as the Fed’s favorite gauge of inflation, the Core PCE (Personal Consumption Expenditure) data will be released. Since this will be following the Fed’s announcement on Wednesday – will the Fed look smart if they’ve held rates steady, or perhaps come under criticism if the inflation numbers are super-heated? Could be a greasy few days for the Fed, so stay tuned.
Remember that when Bond pricing moves higher, home loan rates move lower – and then take a look at the chart below. You can see how in recent days, Bonds have moved higher, but are now battling an overhead “ceiling” of technical resistance. If Bonds and home loan rates are to improve in the near future, it will take some very Bond-friendly news to help crash through the ceiling that has stopped progress in its tracks for the time being.
Chart: Fannie Mae 6.0%% Mortgage Bond (Friday Jun 20, 2008)
The Mortgage Market View…
TIME FOR A CHANGE…OR NOT?
The rising cost of crude oil has everyone talking about gas prices at the pump… but what about the actual oil in your engine? Are you spending too much on oil by changing it too often?
Most of us probably think a car’s oil needs to be changed every 3,000 miles. But that’s an old mechanics tale these days. Did you know that many car manuals now actually recommend changing the oil every 5,000, 7,500 or even 10,000 miles? That means you may be changing your oil twice or even three times as often as you need to! In fact, a recent study in California indicated that 73 percent of Californians change their oil more frequently than recommended by the manufacturers.
So how often should you change your oil?
The fact is, oil changes should be determined by what, how, and where you drive. If you have a newer car with little or no engine wear, you can probably go 7,500 miles between oil changes. And even if you have a slightly older car, but drive under ideal conditions such as predominantly highway, you can go a similar distance before changing.
Of course, many of us actually don’t drive under “ideal” conditions…if you make many short trips, endure lots of stop-and-go traffic, drive on gravel or dusty roads – then you might need to change your oil more frequently. So how do you know – and take advantage of saving money by only changing oil when it’s really needed?
Technology to the rescue
There are a few ways you can actually eliminate the guesswork. If you have a newer car, it may have a built-in sensor that estimates oil life based on engine running time, miles driven, outside temperature, coolant temperature and other operating conditions. When the indicator light comes on, it’s time to change the oil. It’s that simple.
Another idea is to purchase an oil monitoring sensor, such as the IntelliStick. These sensors are used in place of your car’s original dipstick and provide you with real-time, accurate information about the true condition of your oil. Better still, these sensors often have a transponder built into them so you can quickly and easily check the condition of your oil at any time using a cell phone, PDA or computer with Bluetooth connectivity…now that’s really going high tech.
Bottom line – dollars spent on oil changes add up fast. Especially with the increasing price of oil, it pays to be smart, check the manufacturer’s recommendations…and not let too-frequent oil changes cost you!
Last Week in Review June 16, 2008
For the week of Jun 16, 2008 —- Vol. 6, Issue 25
"OPINION HAS CAUSED MORE TROUBLE ON THIS LITTLE EARTH THAN PLAGUES OR EARTHQUAKES." ~ Voltaire. Opinions certainly caused some trouble in the markets last week as several Fed members talked about inflation, the arch enemy of Bonds and home loan rates, and their comments shook the markets like a high-magnitude quake.
Last week began with Fed Chairman Ben Bernanke suggesting that the Fed is in no hurry to hike rates because of "slack" in the economy. Bonds traded lower on this news, and this may be because many economists disagree with Bernanke and believe a rate hike would actually help strengthen the US Dollar, drop oil prices closer to $100 per barrel, ease inflation pressure and…as a result, help Bonds and home loan rates improve.
Also chiming in last week was Philadelphia Fed President Charlie Plosser, who said the Fed has to take "appropriate steps to do something about" inflation. His remarks helped fan the flames of volatility for Bonds and home loan rates, adding to the sell off in Bonds and worsening of home loan rates.
There was some good economic news last week, but remember good economic news often causes money to flow from Bonds into Stocks, and when Bonds trade lower, home loan rates rise. And that's exactly what happened when April's Pending Home Sales report (which measures signed real estate contracts for existing single-family homes, condos and co-ops) and May's Retail Sales Report both came in much better than expected.
On Friday, the important read on consumer inflation via the Consumer Price Index (CPI) report delivered a mixed bag. Overall inflation is up 4.2% on a year-over-year basis, which is the highest it's been in awhile. This comes as no surprise, when taking into consideration how much the prices of fuel and food have both risen. But the Core Rate of inflation, which strips out both food and energy, increased at a much more reasonable rate of 2.3%. Since Core CPI is seen by most economists as the best measure of the underlying inflation rate, this was really good news. However, Stocks rallied after former Fed Chairman Alan Greenspan chimed in with his opinion that the worst of the credit crisis is over, and this halted any improvement for Bonds and home loan rates.
After all the reports and opinions, home loan rates ended the week at their worst levels in 4 months. I'll be watching closely this week for any more opinions that could shake up the market!
FRIED GREEN TOMATOES - YES, THEY'RE FINE…BUT BE CAREFUL IF THEY'RE RAW, RED, AND ROUND…AS A RECENT SALMONELLA SCARE IS PLAGUING THE NATION. CHECK OUT THIS WEEK'S VIEW FOR IMPORTANT TIPS AND INFORMATION ON HOW TO PROTECT YOUR FAMILY.
Forecast for the Week
There are several reports due this week that could "plague" the markets and home loan rates. Tuesday will bring the wholesale inflation measuring Producer Price Index, as well as a read on the housing market via the Housing Starts and Building Permits Report.
Also, on Thursday, the Philadelphia Fed Report hits the wires. This monthly survey of manufacturing purchasing managers conducting business around the tri-state area of Pennsylvania, New Jersey, and Delaware is one of the most-watched manufacturing reports, and it will be important to see if concerns about inflation have had an impact.
Remember when Bond prices move higher, home loan rates move lower…and vice versa. The chart below shows how Bond prices moved sharply lower last week on inflation concerns, so stay tuned this week! If inflation continues to shake up the markets, Bond prices and home loan rates could have another troublesome week…but prices are at the same low levels they hit last year before starting to improve. Oftentimes, history repeats itself, and should Bonds receive some friendly economic news, it is likely they will gain back some of the ground recently lost.
Chart: Fannie Mae 6.0%% Mortgage Bond (Friday Jun 13, 2008)
The Mortgage Market View…
Summer Food Safety Tips
Summer-time is one of the best times of year to enjoy fresh fruits and vegetables, especially those that aren't available year-round. But recent salmonella outbreaks like those in last year's spinach crops or this year's tomato crops are an important reminder about handling food properly.
The Centers for Disease Control (CDC) notes that there is no way for consumers to detect salmonella since it can't be smelled, tasted, or seen. Here's what they recommend to reduce the risk of exposure during this latest outbreak:
Check the Type
Since April 16, more than 220 people from twenty-three states have contracted salmonella poisoning from tainted tomatoes. As a result, the Food and Drug Administration (FDA) is advising people to eat only cherry tomatoes, grape tomatoes, tomatoes sold with the vine still attached, and tomatoes grown at home since these tomatoes are not associated with the outbreak.
If you have raw red plum, Roma, or round red tomatoes, which are the tomatoes associated with the outbreak according to preliminary data compiled by the FDA, the best thing to do is either throw them away or return them to the store where you purchased them.
Wash, Wash, Wash
One of the best ways to protect yourself is to wash all produce, including organic produce, with cold running water. You should scrub your produce gently with a vegetable brush, or you can use your hands if you don't have a brush. Make sure you remove outer layers of cabbage and lettuce. And make sure you wash fruit, too, even if you don't eat the peel.
In addition, wash your hands with soap and water before handling food and also wash cutting boards, counters, and utensils to avoid cross-contamination. When you are preparing fresh vegetables, make sure you avoid any kind of contact with raw meat. And don't forget to refrigerate sliced up fruits and vegetables.
Ask Your Waiter
If you eat out, ask your waiter what the restaurant has done in response to the outbreak. Several restaurants…including chains McDonalds, Burger King, and Taco Bell, among others…have stopped serving tomatoes, but it's always wise to double check. Keep in mind that ketchup and cooked sauces are not affected since cooking tomatoes at 145 degrees kills salmonella. Don't hesitate to ask your waiter to leave tomatoes off a sandwich or salad if the restaurant hasn't removed tomatoes from its menu. Note that if you remove the tomatoes once your order comes, the food could still be contaminated.
Make the Call
Salmonella poisoning typically resembles the flu, and symptoms usually appear 12 to 72 hours after infection and include abdominal cramps, headache, fever, diarrhea, nausea, and vomiting. If you suspect that you've contracted a case of salmonella poisoning, call your local health department. Reported cases help the CDC and FDA track the source of salmonella.
For the latest information on the tomato salmonella outbreak, visit:
FDA: Link to FDA Information
CDC: Link to CDC Information
Last Week in Review June 9, 2008
For the week of Jun 09, 2008 —- Vol. 6, Issue 24
"THERE IS NO BARRIER TOO HIGH, NO VALLEY TOO DEEP… NO DREAM TOO EXTREME, NO CHALLENGE TOO GREAT" ~ Charles Swindoll And that motivating phrase was a great motto for last week, as both Bonds and home loan rates ended up being greatly challenged as they dreamed of breaking through technical barriers to attempt some improvement. Lots of intra-week action ensued - but when the dust settled, Bonds and home loan rates rallied in the face of challenges and ended the week very close to where they began.
Bond prices and home loan rates started the week to the upside, as Wachovia announced they were removing their CEO and Stocks faced some selling pressure on the news, moving money into Bonds and helping rates improve. But the rally was very short lived, as Wednesday's "unofficial" Employment Report by giant payroll processor ADP indicated 40,000 new private sector jobs were added in May…and while this good economic news gave Stocks a boost, it pulled money right back out of Bonds and caused home loan rates to worsen. Thursday's positive economic news that unemployment claims for the week were lower than expected caused Bonds and home loan rates to worsen even further, as traders began to speculate on what the "official" Jobs Report by the Department of Labor would contain.
And on Friday morning, along came the big enchilada, the monthly Jobs Report. The Unemployment Rate increased to 5.50%, up from 5% last month - the largest jump since February of 1986. This was much worse than the market expected. And remembering that bad economic news tends to be bad news for the Stock market, but good news in turn for the Bond market, the news was positive indeed for Bonds and home loan rates - helping them to end the week relatively unchanged.
STOCKS AND BONDS AREN'T THE ONLY THINGS ON THE MOVE THIS TIME OF YEAR. NOW THAT WE'RE INTO THE SUMMER SELLING SEASON, YOU OR SOMEONE YOU KNOW MAY BE ABOUT TO BUST A MOVE. CHANGE OF RESIDENCE IS EXCITING, BUT IT CAN ALSO BE A LOT OF WORK. READ THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME TIPS ON HOW TO TAKE THE STRESS OUT OF MOVING!
Forecast for the Week
So we know that employment numbers were the big movers and shakers for the financial markets and home loan rates last week. What's in store for the week ahead, and what could drive more market action?
Keep your eye out for the Retail Sales Report, which will be released on Thursday. The Retail Sales report is a measure of the total receipts of retail stores, and changes in these numbers are closely followed as a timely indicator of broad consumer spending patterns. Recent numbers haven't been too bad - consumers seem to still keep spending away. But, will this week's report show that inflation and high oil prices are finally taking their toll on consumer pocketbooks? A strong Retail Sales Report would be good for the Stock market - which stands to reason, as it would indicate continued consumer confidence and dollars being poured into the economy. But a strong Retail Sales Report would be bad news for Bonds and home loan rates, which benefit from weak economic news.
Sure to be a market mover is Friday's Consumer Price Index report, which gives a read on inflation at the consumer level - that is, how much more expensive are goods and services this month over last month? CPI is a widely watched inflation indicator, and will definitely make headlines. Inflation tends to be bad news for both Stocks and Bonds, so if the report indicates inflation is heating up, this could cause Bond pricing and home loan rates to worsen in response.
Remember when Bond prices move higher, home loan rates move lower…and vice versa. And as you can see in the chart below, Bonds were challenged to improve and break above a strong technical barrier at the 200-day Moving Average….only to end the week being forced below it once again. This is a very important "line in the sand," so I'll be watching closely this coming week - as always - to see if the news of the week will help Bonds break above this important barrier, or remain below it.
Chart: Fannie Mae 5.5%% Mortgage Bond (Friday Jun 06, 2008)
The Mortgage Market View…
Moving can be very exciting…but it can also be a bit of a pain as well. Besides packing and unpacking, there is a long list of details to be handled. Things like choosing a mover, connecting utilities, getting Internet and cable service, or subscribing to newspapers or magazines in a new area can be quite a chore. And if you forget to connect one of the utilities you could be stuck in your new home for several days without that much needed service. To ease the stress of moving and schedule new connections for all of the utilities in one convenient location, simply logon to www.whitefence.com.
You can quickly compare prices for movers, phone, electricity, television, or high-speed Internet. Just select the service you wish to compare—for example, phone, cable, and electric. Or, enter your address on the home page, hit search, and within seconds a list of services and prices available in that area will appear. Next, click on the service of your choice to view details and pricing or comparison shop by choosing three providers. Once you determine the provider, select the service plan, complete the requested information, enter the connection date, and within minutes a confirmation will be sent to you.
If you want to change your current provider, simply hit the icon for phone, cable, or internet, select "switch provider", complete the requested information and a list of providers in the local area will appear. Choose the new provider and the service will be changed.
Additionally, on the site you can complete a change of address form, subscribe to local newspapers, and order magazine subscriptions. Moving to a new home should be enjoyable and exciting. Using this tool can help remove a bit of the stress of moving and will also help save valuable time.
This Just In, June 5, 2008
Research Shows Residential Values Steady, Even Rising in Some U.S. Sub-Markets
Certain Sub-Markets Showing Price Increases of 5 to 19 Percent
By Alan Hummel, SRA, SVP/Chief Appraiser
While residential real estate prices are declining as a whole on a national basis, Forsythe Appraisals' market data indicates that the national trends also show pockets of stability, and some with marginal increases in home values rising in some U.S. submarkets.
From Seattle to San Antonio, Milwaukee to Tampa, Connecticut to California, select neighborhoods in major markets have seen price increases of 5 to 19 percent from first quarter 2007 to first quarter 2008, according to the St. Paul-based appraisal company, which has 37 offices across the country.
It's impossible to paint the national real estate market with one large brush stroke. While there is depreciation of national home values as a whole, there are areas that have not been severely impacted, or even impacted at all. In fact, there are many areas that continue to show positive growth. These valuation trends in local submarkets are simply not visible when comparing average sale prices for an entire metropolitan area, but when looking at certain sectors within an area, it's clear that there is stability, and even marginal growth.
While many homeowners throughout the country are still facing declining home values, when looking at individual neighborhoods, housing types and price bands, the trends in these sub-markets can differ dramatically from the national averages.
Some of Forsythe's staff appraisers recently took a close look at their local market data to identify valuation trends in comparable homes in specific neighborhoods and certain price categories.
Using Seattle, Washington, as one example, Forsythe's research showed that two-bedroom downtown condominiums have risen approximately 6.2 percent in the past year. On Mercer Island, waterfront properties are up between 15 and 20 percent, while non-waterfront properties have increased about 7 percent. Overall values of properties more than 2000 square feet on Mercer Island increased even more dramatically: from a $444 average price per square foot to a $500 price per square foot in the past 12 months, an increase of 12.6 percent.
In another market, Connecticut's 'gold coast' suburbs in Fairfield County are also rising in value. Forsythe's appraisers report 7 to 8 percent increases in Greenwich, Darien, New Canaan, and Westport, from 2006 to 2007.
Executive homes in one of California's most attractive Silicon Valley communities, the City of Menlo Park, have increased about 18 percent in value from $1.4 to $1.6 million. That trend also applies to surrounding San Mateo County, where comparable homes have climbed about 14.5 percent in the past year. This in sharp contrast to the whole of decreasing home values throughout most of California.
Chicago's strongest markets included condominium and single-family homes in the Lincoln Park neighborhood and throughout portions of DuPage County. Lincoln Park has seen average sales prices of attached homes rise by almost 9% from Q1 2007 to Q1 2008, while detached homes have remained relatively stable. Hinsdale has seen a large increase, 31 percent, in its average sales price in Q1 2007 versus Q1 2008. This increase is attributed to three sales in early 2008 which were in excess of $3 million, whereas Q1 2007 highest MLS marketed sale was $2,650,000. This indicates that demand is continuing to push transaction amounts higher.
In the Milwaukee area, comparable 2,500-square-foot homes in Delafield (Waukesha County) jumped 16.3 percent - and older homes in Sturtevant (Racine County) increased about 9.5 percent, in one year.
Some suburban communities in the Minneapolis/St. Paul region are experiencing modest price increases or holding their own value. In 2007, the average sales price in Plymouth was $315,336 and in 2008, the average is $328,021, showing an increase of 4 percent. Minnetonka is posting a 6.2 percent increase in values, with the average sales price rising from $335,557 to $356,469.
Moving to the south, desirable neighborhoods in Nashville are experiencing growth, with properties in Green Hills increasing from an average of $484,000 in 2007 to an average of $538,000 in 2008, a 10.4 percent hike. Another high-profile suburb, Belle Meade, saw average home values rise from $747,200 to $792,900, a 5.7 percent increase.
San Antonio's Alamo Heights, the area's most prestigious community, the area has seen a 5.1 percent increase in average sale prices, from $428,056 from April 2006 to April 2007; to $450,910 from April 2007 to April 2008.
Even in Florida, where statewide averages indicate a drop of 15 to 20 percent in sale prices, some neighborhoods are increasing in value. In the South Tampa market, for instance, luxury waterfront and inland properties in Beach Park, Palmaceia and Hyde Park have risen between 5 and 8 percent in the past year, reaching average sale prices of $1.5 million and $600,000.
In Jacksonville, well-situated older homes on the St. Johns River and Intracoastal Waterway are maintaining their values. But because there were only a few sales of these properties, any valuation trend calculations would not be meaningful.
Ultimately, real estate markets are local and may vary significantly from one neighborhood to the other, so caution should always be used when extrapolating market data. Each property is unique and each neighborhood has its own characteristics. It's vital for buyers, sellers and investors to look at local as well as regional and national trends.
For the week of Jun 02, 2008 —- Vol. 6, Issue 23
Last Week in Review
"INFLATION IS AS VIOLENT AS A MUGGER, AS FRIGHTENING AS AN ARMED ROBBER, AND AS DEADLY AS A HIT MAN." ~ Ronald Reagan. And although you might not describe the effects of inflation in such strong terms yourself…rest assured that the effects of inflation have crept into your home, your gas tank and your wallet. And inflation is also the nemesis of Bonds and therefore home loan rates, because just like inflation erodes the value of the dollars you spend, inflation erodes the value of the fixed return a Bond provides. And last week, Bond pricing worsened on news of inflation, causing home loan rates to move higher by about .25% across the board and reaching the highest levels seen in weeks.
The week was shortened by the Memorial Day holiday, but right out of the gates, inflation concerns abounded. The Consumer Confidence Report indicated that consumer inflation expectations are at an all-time high…meaning that consumers are seeing inflation as a real threat to their own financial situation. Rising energy costs and worldwide inflation fears continued to pummel Bonds lower - in fact, so low that they moved below a tough technical floor of support at the 200-Day Moving Average. This is important because Bonds have made a decisive cross over the 200-day Moving Average on only three separate occasions within the past three years. This means that barring a timely reversal, we are likely seeing a shift in the market towards higher home loan rates.
Friday brought a little good news on inflation, as the Core Personal Consumption Expenditure (PCE) Index showed that inflation does remain within the Fed's comfort zone. While Bonds and home loan rates improved somewhat on the news, the trend for the week was definitely worse overall, as the big picture on inflation cost Bonds and home loan rates some hard earned ground.
LOOKING FORWARD TO YOUR STIMULUS CHECK…AND WISHING THE SIZE OF IT COULD BE "INFLATED?" RETAILERS HAVE COOKED UP SOME INTERESTING SPECIALS TO DO JUST THAT, SHOULD YOU DECIDE TO SPEND YOUR CHECK ON THEIR GOODS OR SERVICES. TAKE A LOOK AT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME EXAMPLES OF WHAT CREATIVE RETAILERS HAVE IN STORE FOR YOU.
Forecast for the Week
This coming week, one economic report in particular bears inflated significance…Friday's release of the infamous monthly Jobs Report. It will reveal, among many other things, the number of jobs lost or gained during the month of May. Last month's Jobs Report indicated that 20,000 jobs were lost in April, and while this was better than the expected job losses of 75,000, it is possible that the reported number understated the actual number of jobs lost, due to how the Department of Labor averages their count. And part of each month's report is "revisions" to the several prior months' numbers…which this could be quite a wild card for Bonds and home loan rates.
Last month's Jobs Report, which was indeed more positive than expected, caused Bonds to fall a whopping 134bp in a matter of minutes, and home loan rates worsened quickly. Why? Because even though the news wasn't great, it sure was better than anticipated…and this caused money to flow out of Bonds, and into Stocks…which caused Bond prices and home loan rates to worsen. This week's Jobs Report could sure be another mover, and if the report or revisions indicate positive news on the jobs front, home loan rates will likely worsen in response.
Remember when Bond prices move higher, home loan rates move lower…and vice versa. And as you can see in the chart below, Bonds moved lower for most of the week, and actually closed below an important technical level at the 200-day Moving Average. This is a very important level, as it can act as either a very strong floor of support helping Bond prices not to fall below it…or as an equally strong ceiling of resistance, preventing Bonds and home loan rates from improving above it. And with Bonds currently having fallen beneath it, I'll be watching closely this week to see if Bonds have indeed fallen and can't get up…or if they can break above that tough level later this week and help home loan rates improve.
Chart: Fannie Mae 5.5%% Mortgage Bond (Friday May 30, 2008)
The Mortgage Market View…
Retailers Looking For Some "Stimulus"…
According to a recent poll on how consumers intend to spend their stimulus checks, 19% of consumers plan on using their economic stimulus check for a special purchase, and 23% plan to use their check for everyday expenses. The rest…well, 36% say they will pay down debt and 22% say they will put it into savings. But will the check burn a hole through their pockets?
Maybe so, particularly with the "stimulus check" specials that many retailers have come up with, offering bonuses and incentives for people who spend their "stimulus" dollars with them. Here are some examples, in case you want to take advantage of any offers:
Sears. If you use your stimulus check to purchase a gift card, you receive an additional gift card worth 10% of your check's value. This offer is also good at Kmart and Lands' End.
Kroger. Between now and July 31, 2008, you can exchange your tax refund or economic stimulus check for a Kroger gift card with an extra $30.00 (for $300.00 checks), $60.00 (for $600.00 checks) or $120.00 (for $1,200.00 checks) added to it. The program is available throughout Kroger stores nationwide - including Kroger, Baker's, City Market, Dillons, Fred Meyer, Fry's, Gerbes, Hilander, Jay C, King Soopers, Owen's, Pay Less, Ralphs, Smith's and QFC stores.
Home Depot. To encourage consumers to invest their stimulus check in their homes through energy efficient products and services, the retailer is offering special values on energy-efficient products such as light bulbs and home appliances through the summer.
Radio Shack. The retailer will cash your check and give you 10% off on any purchase above $50, and then give you the difference as a prepaid MasterCard that can be used anywhere that takes MasterCard.
Domino's Pizza. Although you don't need to use your stimulus check for purchase, Domino's is getting into the spirit of economic stimulus, offering a "recession-busting" special of three pizzas for $12.00. According to the company's press release, "While you're feeding the economy with your special refund check, let it feed you back."
These are just some of the promotions that retailers are currently offering, and more deals are likely on the way. If there's something you want to use part of your stimulus check for, do your homework and take advantage of the specials that are out there. And if you do intend to pay down debt with the check, feel free to give me a call to discuss which debt would make most sense to reduce!
The Week's Economic Indicator Calendar
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of June 02 – June 06
| Date | ET | Economic Report | For | Estimate | Actual | Prior | Impact |
|---|---|---|---|---|---|---|---|
| Mon. June 02 | 10:00 | ISM Index | May | 48.0 | 48.6 | High | |
| Wed. June 04 | 08:15 | ADP National Employment Report | May | -30K | 10K | High | |
| Wed. June 04 | 08:30 | Productivity | Q1 | 2.5% | 2.2% | Moderate | |
| Wed. June 04 | 10:00 | ISM Services Index | May | 51.0 | 52.0 | Moderate | |
| Wed. June 04 | 10:30 | Crude Inventories | 5/31 | NA | -8883K | Moderate | |
| Thu. June 05 | 08:30 | Jobless Claims (Initial) | 5/31 | 370K | 372K | Moderate | |
| Fri. June 06 | 08:30 | Average Work Week | May | 33.7 | 33.7 | HIGH | |
| Fri. June 06 | 08:30 | Hourly Earnings | May | 0.2% | 0.1% | HIGH | |
| Fri. June 06 | 08:30 | Non-farm Payrolls | May | -52K | -20K | HIGH | |
| Fri. June 06 | 08:30 | Unemployment Rate | May | 5.1% | 5.0% | HIGH |
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.
Provided to you Exclusively by Geri Nelson
Geri Nelson
Mortgage Consultant
First Horizon Home Loans
Office: 206-352-5515
Fax: 206-282-4472
Email: moc.clhhf|nosleng#moc.clhhf|nosleng
Website: www.gerinelson.com
