Every day people ask me what my rates are, here is a brief video to show what goes into a rate.

This is an article from Bill Fisher- I thought it interesting.

As this is written, members of both political parties are busy thinking up different debt reduction formulas that might conceivably prove acceptable to enough in our Congress to gain passage and take us on a strange detour around the messy experience of defaulting on our national debt.

But we are fooling ourselves if we think that cleverly side-stepping the default will allow us to pass through this economic soap opera unscathed. In truth, some damage has already been done.

It comes down to this. America has for many years held a privileged position in world credit markets and, by extension, in the world economy. Specifically, its debt—i.e., Treasury securities—have been the benchmarks for interest rates all over the world. Because American debt was backed by the full faith and credit of the United States, those who invested in Treasury securities believed that theirs was the safest investment available (short of, perhaps, gold), and those who set interest rate yields for other investments used Treasury yields as the guide to today’s other viable yields. Thus, for example, the 30-year fixed-rate has keyed itself to the yield on the 10-year Treasury note, with a margin of roughly 1.5% separating the two.

In other words, Treasury security yields created the goal posts and out-of-bounds marks for the world’s economic games. Without them, we don’t have referential guides for many of the important interest rates we use—even those for the simplest of borrowings.

You can see, therefore, that any damage done to Treasury securities as the basis for economic transactions pushes the markets in the direction of chaos. “No problem,” some self-styled analysts declare. “They’ll get over it.”

But what damage will be done in the meantime? Will the dollar still be the currency in which oil purchases are denominated? Will the dollar still be the main reference for most international trade? And here’s the truly big question: Will we still be capable of creating money from thin air? It’s one of the main things that has differentiated, say, American financial problems from those of Brazil, Argentina, Portugal and Greece. They can’t hide behind currency maneuvers; we can.

Are we, in our inability to reach an agreement that will raise our debt ceiling and begin to lower our burdensome national indebtedness, giving up far more than we seem to realize? The nation whose sovereign currency stands as the benchmark for world financial transactions must treat its position with care and respect. But at present, we’re not.

The damage could be far-reaching and long-lasting.

If, as is likely, the credit rating agencies dock the nation’s sovereign credit rating even slightly, investors are almost certain to demand a higher yield on Treasury securities. Our interest rates—including mortgage interest rates—will surely rise as a result…and our economy can ill afford that. Especially the real estate market.

Interest rates are waiting rather generously and patiently as Congress thrashes about, seeking some agreement—but sadly, the only obvious agreement thus far is that no one agrees on anything. People are arguing and voting for principles, rather than for actual pragmatic solutions, and we’re still very far from legislation to raise our debt ceiling and start trimming our national debt. It is getting more and more difficult to imagine pulling a stopgap bill out of a hat, even with a viable program being suggested by the so-called “Gang of Six.”

My point remains, though. Pandora is out of the box. The world can no longer be certain that Congress will give our nation’s debt obligation the rather hallowed priority it needs if we are to continue to generate benchmark interest rate yields and to maintain the privilege of creating money from thin air. And rising rates may result, no matter what Congress does at this point.

by: Bill Fisher

Well, it’s been a while since I have posted- please forgive me- I have been busy trying to juggle all the balls in the air-

We have been in another very volatile week for mortgage rates- today the market has improved dramatically- rates are again at all time low’s– underwriters are not freaking out quite so much, appraisals are coming in at value or higher,…  we are at a perfect time to have people find homes and get loans–  let me know what I can do to help you!  Here is what is happening to the mortgage markets–

Jobs Fall Short    

The main focus this week was the June Employment report. Rising expectations during the week pushed mortgage rates higher ahead of the report. When the Employment data came in far below expectations, though, mortgage rates improved significantly and ended the week a little lower.

Against a consensus forecast of 125K, the economy added just 18K jobs in June, the lowest level since September 2010, and the figures from the prior two months were revised lower by 44K. The Unemployment Rate rose to 9.2% from 9.1% in May. Average Hourly Earnings, a proxy for wage growth, were unchanged from May, below the consensus for a rise of 0.2%. In short, bright spots were hard to find.

Following a series of stronger than expected economic reports in recent weeks, the Employment report was certainly a surprise. The question for investors is how much weight to place on this report in determining the economic outlook. Does this mean that the economy is recovering more slowly than previously thought? Or is it that the jobs data simply operates with a small lag? There is little doubt that the US economy slowed during the first half of the year, primarily due to rising oil prices and the Japanese earthquakes. The impact of these obstacles was expected to be temporary, and nearly all the economic data in recent weeks appeared to support this. This Employment report will certainly make investors more cautious about the pace of future economic growth, but they will not overlook the wide range of other data which suggests that growth is accelerating. With mortgage rates at such low levels, solid evidence of a sustained deterioration in growth likely will be needed for rates to move much lower. 

This Classic home with spacious rooms, all redone and ready to move in.  Fresh carpet and paint.  Large formal living room with fireplace, huge eat-in kitchen with granite.  Formal AND informal dining with built ins.  French Doors, Family room with fireplace, office/den with french doors, lower level bedroom with bath and separate entry. Master bedroom with fireplace (did you count that,..3 fireplaces!)  Large lot with deck, garden and private yard.  Price reduction to  #395,000!  Watch this video and see how you can get ZERO closing costs on your loan!

Call Kate Dean of Bennett & Dean Real Estate at 541-912-6152 for a private viewing today, and call me, Helen Davidson Williams for a pre-approval!  Don’t let this

5 bdrm 3 1/2 ba Price reduction- “zero closing cost” Eugene, OR

Watch this video to see financing options  http://mcedge.tv/169w9v  

pass you bye! 

It’s Spring- a time for new beginnings, fresh starts and giving. Let’s talk about CASA

I was talking with my sister yesterday and she told me that she was tired of her cluttered garage. She has boxes she has not even looked at for several years. She mentioned getting a big dumpster and just tossing everything—after all she hasn’t missed whatever was in those boxes for 4-5 years,… That got me thinking of all the “stuff and things” I have that I have collected over the years just sitting in my attic, closets and garage.

A feeling of frustration and anger rose in me as I thought about it. How many people are doing without, while I am drowning in “stuff and things”? So I decided to start calling around and seeing what groups and agencies we have in the Eugene/Springfield area that NEED donations, and I was so happily surprised.

Like Sarah Kate at CASA of Lane County. You can check out the wonderful resource they are for children at www.casa-lane.org They are having a fund raiser on Saturday May 14, 2010 at 8:30 starting at Skinner Butte- a Walk-Run sponsored by ReMax Integrity
http://www.casa-lane.org/events/runwalk

They are always in need of clothing for their clothes closet. They help all children from newborns to 18 year olds. Remember a lot of teens will fit into adult clothes.     

Currently they are in need of new socks and underwear of all sizes.♥
So clean out your closets! Look for out grown, gentle used clothes- coats, shoes, pants, dresses, shirts— and the list goes on!

And also, by the way~ if you need financing to purchase a home, or want to take advantage of the all time low rates just call me, Helen Davidson Williams at 541-341-1400 x 3104

So remember, it’s Spring- time to clear those closets and call Sarah Kate at CASA-LANE county at 541-984-3132.