The Fed Starts A 2-Day Meeting Today. Make A Strategy.

April 24, 2012 by

Fed Funds Rate vs Mortgage Rates 1990-2012

The Federal Open Market Committee begins a 2-day meeting today in the nation’s capitol. It’s the group’s third of 8 scheduled meetings this year. Mortgage rates are expected to change upon the Fed’s adjournment.

Led by Chairman Ben Bernanke, the FOMC is a 12-person, Federal Reserve sub-committee. The FOMC is the group within the Fed which votes on U.S. monetary policy. “Making monetary policy” can mean a lot of things, and the action for which the FOMC is most well-known is its setting of the Fed Funds Funds.

The Fed Funds Rate is the overnight interest rate at which banks borrow money from each other. It’s one of many interest rates set by the Fed.

However, one series of interest rates not set by the Fed is mortgage rates. Instead, mortgage rates are based on the prices of mortgage-backed bonds and bonds are bought and sold on Wall Street.

There is little historical correlation between the Fed Funds Rate and the common, 30-year fixed rate mortgage rate.

As the chart at top shows, since 1990, the Fed Funds Rate and the 30-year fixed rate mortgage rate have followed different paths. Sometimes, they’ve moved in the same direction. Sometimes, they’ve moved in opposite directions. 

They’ve been separated by as much as 5.29 percent at times, and have been as near to each other as 0.52 percent.

Today, that spread is roughly 3.65 percent. It’s expected to change beginning 12:30 PM ET Wednesday. That’s when the FOMC will adjourn from its meeting and release its public statement to the markets.

The FOMC is expected to announce no change in the Fed Funds Rate, holding the benchmark rate within in its current target range of 0.000-0.250%. However, how mortgage rates respond will depend on the verbiage of the FOMC statement. 

In general, if the Fed acknowledges that the U.S. economy as in expansion; growing from job growth and consumer spending, mortgage rates are expected to rise. If the Fed shows concern about domestic and global economic growth, mortgage rates are expected to fall. 

Any time that mortgage markets are expected to move, a safe play is to stop shopping your rate and start locking it. Today may be one of those times.

Filed Under: Mortgage Rates Tagged With: , ,

America’s 20 Best Small Towns

April 23, 2012 by

America's Best Small TownsAmerica is stuffed with world-class “big cities”; New York, San Francisco and Chicago make for three great examples. But beyond the biggest cities, there are some wonderful small towns, too.

Smithsonian.com highlights 20 of them on its website.

Focusing on cities with 25,000 residents or fewer, the publication ranked areas high in “culture”; towns with high concentrations of museums, public gardens, art galleries and other cultural assets including resident orchestras. 

The author states “big cities and grand institutions per se don’t produce creative works; individuals do. And being reminded of that is fun”.

The Top 10 Small Towns in America, as judged by Smithsonian.com :

  1. Great Barrington, Massachusetts
  2. Taos, New Mexico
  3. Red Bank, New Jersey
  4. Mill Valley, California
  5. Gig Harbor, Washington
  6. Durango, Colorado
  7. Butler, Pennsylvania
  8. Marfa, Texas
  9. Naples, Florida
  10. Staunton, Virginia

Other notable cities on the list include Princeton, New Jersey; Beckley City, West Virginia; and Siloam Springs, Arkansas.

The Smithsonian.com website provides an in-depth review of each of its twenty listed cities, including historical notes and quotes from key community members. It makes for good reading by local residents and visitors, alike.

Review the complete rankings online.

Filed Under: Rankings Tagged With: , ,

Existing Home Sales Slip In March

April 20, 2012 by

Existing Home Sales In March, for the second straight month, home resales slipped nationwide.

According to the National Association of REALTORS®, March 2012 Existing Home Sales fell to 4.48 million units on a seasonally-adjusted annualized basis — a 3 percent drop from February.

An “existing home” is a home that’s been previously occupied or owned.

The weaker-than-expected Existing Home Sales data is the third such housing report this month to suggest a lull in the spring housing market. Earlier this week, homebuilder confidence slipped for the first time in three months and March Single-Family Housing Starts fell, too.

The news wasn’t entirely bad for home resales, however. Although total home units sold decreased, so did the number of homes available for sale. There were just 2.37 million homes for sale nationwide in March, a 2 percent drop from the month prior.

At the current pace of sales, therefore, the entire nation’s home resale stock would “sell out” in 6.3 months. This is the second-fastest pace since the housing market’s April 2007 peak.  

A 6-month supply is widely believed to represent a market in balance between buyers and sellers.

The March Existing Home Sales data shows that — despite record-low mortgage rates nationwide — buyer activity is slowing, and seller activity may be slowing, too.

So long as the two forces remain in balance, home prices should do the same. This is the law of Supply and Demand at work. 

However, if home sales continue to slide and home inventory builds, buyers may find themselves with an edge in negotiations. 

If you’re planning to buy a home in 2012, the long-term housing trend is still toward recovery. This season may be a good time to look at your options. Talk to your real estate agent to see what’s available. Low mortgage rates may persist, but low home prices may not.

Filed Under: Housing Analysis Tagged With: , ,

Nevada Relinquishes “Top Foreclosure State” Title

April 19, 2012 by

Foreclosures March 2012

According to foreclosure-tracking firm RealtyTrac, foreclosure filings fell to 199,000 in March 2012, a 17 percent decrease from March 2011. Last month marks the first time since July 2007 that foreclosure filings numbered less than 200,000 on a monthly basis — a span of nearly 5 years.

The generic term “foreclosure filing” is used to group all types of foreclosure activity into a single reading. It includes default notices, scheduled auctions, and bank repossessions. 

As in most months, foreclosure density varied by region. 6 states accounted for more than half of the nation’s repossessed homes in March.

  • Florida : 13.6 percent of all bank repossessions
  • California : 12.0 percent of all bank repossessions
  • Georgia : 8.0 percent of all bank repossessions
  • Michigan : 7.5 percent of all bank repossessions
  • Arizona : 6.5 percent of all bank repossessions
  • Illinois : 6.4 percent of all bank repossessions

At the other end of the spectrum, North Dakota and Washington, D.C. were home to the fewest bank repossessions, with 0.03% and 0.02% of the national total, respectively.

Also noteworthy is that the RealtyTrac report revealed that Nevada relinquished its title as Top Foreclosure State after 62 consecutive top-ranking months. In March, 1 in every 301 Nevada homes received some form of a foreclosure filing. The March rate was a nation-topping 1 in 300 in neighboring Arizona.

For home buyers, today’s foreclosure market represents an interesting opportunity. 

Homes purchased while in the various stages of foreclosure can often be bought at lower prices relative to homes not in foreclosure. It’s one of the reasons why foreclosed homes now account for 20 percent of all home resales. 

However, don’t confuse less expensive for less costly.

Foreclosed homes are often sold “as-is” and may be in various stages of disrepair. Fixing a foreclosed home to make it habitable could wipe out the money saved on its price tag. Your best real estate “deal”, therefore, may be a non-distressed home in sound, move-in ready condition.

If you’re buying foreclosures — or even considering it — be sure to talk with a real estate agent first. The process of buying a foreclosed property is different from buying a “regular” home. You’ll want somebody experienced on your team.

Filed Under: Housing Analysis Tagged With: , ,

Celebrating National Volunteer Month

April 18, 2012 by

VolunteerDid you know that April is National Volunteer Month?

Volunteering is the art of giving your labor or expertise for free and many charities and local programs could not exist without the help of volunteers.

This month is the time to think about how you can give some of your time and efforts away to help your community.

Reasons to Volunteer

Here are a few reasons why volunteering is a great thing to do no matter what month it is:

  • You get a warm feeling inside from giving your time and skills to help people.
  • It’s a great way to meet people and make friends.
  • It is also a great way to feel like you are part of your local community.
  • You can learn something new and gain valuable work experience.
  • You can make someone’s life easier or more enjoyable.
  • Volunteering looks great on university applications or resumes.

How Can I Volunteer?

There are many ways that you can volunteer your time and efforts during National Volunteer Month and throughout the year.

The first step is to think about what you enjoy doing and what you are good at and how those skills can help your community. For example, if you are really good with children you could volunteer to be a mentor with a Big Brothers and Big Sisters organization.

If you are a carpenter you could lend your building skills to construct houses for low income families. Even technological skills such as web design can come in handy, as you might offer to design the website for a local charity organization.

If you do a quick search for volunteering opportunities in your local area you will be sure to find many positions available. You can also look on a website such as http://www.volunteermatch.org which allows you to search for your local area and identify which type of volunteering you would like to do.

Many people think that they don’t have the time to volunteer, but you don’t have to make volunteering your full time job.

Many organizations will be happy to have your help for a few hours per week or even one day a month. It is up to you how much time you are able to commit to helping out.

Have fun volunteering and helping out your local community!

Filed Under: Personal Development Tagged With: , ,

How to Keep Your Car Organized

April 16, 2012 by

Auto InteriorYour car is your important mode of transport between point A and B, but if you are like many people you might also be in the habit of using it as a trash can on wheels.

Are you embarrassed when you offer someone else a ride in your vehicle because of the detritus of empty bottles, pieces of paper and food wrappers that litter the floor?

If you have children, do you have to clear an entire army of toys and stuffed animals from the back seat before anyone can sit down?

If your car is becoming a disaster zone, here are some tips for regaining control of the clutter.

Everything in Its Place

One of the main reasons why your car is such a mess is that nothing has a rightful place to be. You eat a granola bar while you are driving, and then stuff the wrapper in the cup holder thinking that you will dispose of it later and then usually forget.

The trick is to create a system where all of the garbage and junk in your car has a place. Keep a small trash bag in your car at all times, so that you can discard things in it rather than letting them get lost on the floor. Every few days you can throw the bag away and replace it with a new one.

Do Quick and Frequent Cleans

If you are waiting outside for five minutes to pick up a friend, use that time to do a quick tidy of your car. Gather all of the garbage and throw it away in a nearby garbage can, as most public places will have one.

If you can get in the habit of clearing out the junk in your car every few days, the problem will never build up to a point where it becomes overwhelming.

Organize the Back Seat

When you are driving around with your little ones, it’s great to have toys and books in the back seat to keep them occupied. To keep the mess under control, there are clever little organizers that you can buy which hang over the back of the front seat and include pockets for books, magazines, and small toys.

When you are a couple of minutes from arriving at your destination, give your kids the heads up to start putting their toys away so that they get in the habit of tidying up after themselves in the back seat.

These are just a few things that you can do to keep your car organized and tidy! 

Filed Under: Organization Tips Tagged With: , ,

Exploring the Historical Sites of Puerto Rico

April 14, 2012 by

Puerto RicoThe Caribbean island of Puerto Rico has a long and fascinating history. Because it is located right in the middle of the “New World” it has been a target of conquest for many centuries.

Christopher Columbus landed on the island in 1493, on his second voyage of discovery. It was later settled by the Spanish explorer known as Ponce de Leon and was under possession by the Spanish for over 400 years.

At the end of the Spanish American war, the island of Puerto Rico became United States territory due to the Treaty of Paris.

There are many battlements and fortifications throughout Puerto Rico, built to protect the island from its many invaders.

These are very interesting places on the island that reveal fascinating stories about the past. Here are some of the best historical sites:

 Castillo de San Cristobal

This Spanish fort is the largest ever fortification built by the Spanish in the New World. It was constructed in 1783 to protect the city of San Juan from attacks, and it covers approximately 27 acres of land wrapping all around the city of San Juan.

The fortress is perched upon a hill called the Cerro de San Cristobal, named after the Spanish victory ejecting the English and the Dutch interlopers from the island of the same name in the Lesser Antilles.

This fort is truly an amazing historical building to explore, and includes an extensive underground tunnel system, an artillery observation post, and real 200 pound mortar shells.

Fort San Felipe del Morro

Also known as Morro Castle, this is a 16th century citadel that makes a great day trip from any Puerto Rico resort as it is located just within the city of San Juan. 

The fortification, named after King Phillip of Spain, was designed to guard the city of San Juan from enemy attacks from the sea. Over two million people per year visit this historical site, making it one of the major attractions in Puerto Rico.

The castle is considered an official UNESCO World Heritage Site and as a “must-see” while you are in Puerto Rico.

Fortin San Juan de la Cruz

Fortin San Juan de la CruzThis tiny fort is not as large as the other historical sites, but it is just as interesting. It is located on Isla de Cabras, right at the entrance to the San Juan bay.

It was placed here to create a strategic location for crossfire at any invading ships, and its location ensured complete artillery coverage of the area.

Apparently, there used to be a long chain which was stretched from Fortin San Juan de la Cruz to the Fort San Felipe del Morro, which would create a physical barrier and stop ships from coming into the harbor.

The fort was also in an important location for guarding the Bayamon River. The square building was built in the 1600s and although the interior is closed to the public you can walk around the walls.

These are just a few of the fascinating historical sites that you can visit while exploring the beautiful island of Puerto Rico.  

Filed Under: Travel Tagged With: , , ,

How to Avoid the Awkward Moment When You Forget Someone’s Name

April 13, 2012 by

Dale Carnegie Win Friends Influence PeopleDale Carnegie, author of “How to Win Friends and Influence People” said that a person’s name is the “sweetest and most important sound in any language.”

Whether in a business networking situation or a friendly party, being able to remember people’s names is an important skill for your career and your social life.

Here are a few tips for cementing those names in your memory so that you never have to be embarrassed again:

Use Their Name Right Away

As soon as someone introduces themselves to you, try to use their name naturally in the conversation as soon as possible. For example, if they say, “Hello, I’m Peter,” you can say “Nice to meet you Peter, I’m John.”

This solidifies the name in your mind and associates it with them, before it slips away out of your memory. If you can, try to call them by their name a few times in the conversation to reinforce the name in your mind.

Only do this if it comes naturally however, because they might think you are strange if you say their name too many times.

Make an Association

Another way to hold the name in your mind is to associate it with a physical characteristic of the person. For example, if you meet a guy with red hair named Ted or a really tall woman named Samantha you can repeat “Red Head Ted” or “Six Foot Sam” in your mind when you want to remember their name.

Make sure that you choose a characteristic such as eye color, size, hair color, or a facial feature rather than clothing or accessories because “Purple Sweater Pat” might not be wearing the same sweater next time you meet her.

Be careful not to say these physical attribute nicknames out loud, because others might find them offensive.

Write it Down

If you are at a conference or a networking event where you are meeting lots of different people, you can make notes on a small notepad or on the “Notes” function of your phone to help you remember names.

Write the person’s name down and a few details about them such as what they do for a living, what they look like, and how you met them.

Remembering names can seem difficult, but if you try these easy tricks you will avoid the awkwardness and be able to greet people by the right name every time!

 

Filed Under: Personal Development Tagged With: , , ,

Smart Ways to Use Your Tax Refund

April 11, 2012 by

What will you do with your income tax refundIf you are expecting a large tax refund this year, what will you do with it?

It might be tempting to spend this large windfall on shopping, eating out and other fun things.

However, a tax refund is also an opportunity to gain some financial headway and set you up in a better situation for the future.

Here are a few smart ways to use your tax refund this year:

Create an Emergency Fund

If you are currently living from paycheck to paycheck, you are treading water on the surface of your finances and any unexpected disaster can pull you under and cause you to start drowning in debt.

If your car breaks down, you lose your job, or you get ill or injured, you will need to borrow money to get your head above water again and this can take you on a downward spiral which is hard to get out of.

It is essential to have an emergency fund of at least six to eight months of savings to protect you for the unexpected situations which might arise in life.

Use your tax refund to get this savings account started and then slowly build it up more by adding a percentage from every paycheck.

Pay Off Your Credit Cards

Another very smart thing to do with your tax refund is to pay off any high interest debt which you have accumulated.

Credit card debt is draining your finances every month with high interest payments, so it should be the first debt that you pay off.

If you think about it, paying off a credit card charging interest at 18% or more is the same as buying a high-flying investment that gains at least 18% on the same amount of money.

The difference is that by paying down expensive debt, you actually are guaranteeing yourself that return on investment.

You can also contribute it towards paying down student loans, car loans and any other debt you might have.

Make Home Improvements

If you already have an emergency fund and you have paid off your credit cards, spending your tax refund on home improvements can also be a smart way to invest the money.

Renovations can help to increase the value of your property when you eventually resell it, especially when you upgrade the most important rooms such as the kitchen and the bathroom.

Also, green renovations such as adding sealed windows or energy-efficient appliances can save you money in the long run on your utility bills.

These are just a few clever ways that you can use your tax return to set yourself up for the future.

Do you have any other good ideas that you’d like to share?

 

Filed Under: Personal Finance Tagged With: , , ,

How to Simplify Your Inbox When You Suffer From Email Overload

April 9, 2012 by

Too Much EmailHave you ever came back to work on Monday only to spend your entire morning answering the huge onslaught of emails that are clogging up your inbox?

Are you tired of having 46 unread messages and after reading through them all realizing that only two are important?

Do your co-workers complain that you never respond to their messages?

If you need to improve your email system, here are some tips that will help:

Keep Your Work and Your Social Life Separate

If you use email for your work, you should have a separate address for your friends and family which you only check when you are at home so that you are not using up your valuable work time reading the funny chain emails that your Aunt Glenda forwards to you.

It will also help ensure that an important work message doesn’t get lost in all of your personal mail.

Unsubscribe From Mailing Lists

If you are in the habit of submitting your email to every website that you are mildly interested in, you likely wake up to an inbox filled with newsletters, updates, and direct mail advertising every morning.

If you want to cut down on this clutter, pick three or four websites that you find the most important to be subscribed to and unsubscribe from all the rest.

To get yourself taken off the mailing list, simply scroll to the bottom of the newsletter or email where you will likely find a link.

Create Folders

To keep your inbox organized, you can create folders so that you can sort your messages into different categories. This is easy to do on most email programs, such as Gmail or Hotmail.

Your folders could be divided by certain projects, people, groups, or topics.

Get in the habit of sending an email to the right folder as soon as you read it so that you will know where to find it.

Respond Right Away

The best way to deal with those urgent emails in your inbox is to answer them right there and then.

This way you can avoid letting them build up to the point where they become a huge task to answer.

If the email requires you to do a bit more research, send a response letting the sender know that you received their inquiry and then mark the email as unread until you deal with it.

These are just a few ways that you can simplify your email system and make your inbox more organized!

Filed Under: Technology Tagged With: , ,