"IN THE SPRING, I HAVE COUNTED 136 DIFFERENT KINDS OF WEATHER. AND THAT WAS JUST INSIDE OF 24 HOURS." Mark Twain. And Bonds have certainly weathered all kinds of days this spring, with this past week being no exception. Bonds did enjoy some high times starting with Monday's move to the upside after National City Corporation announced they would be receiving a $7 Billion cash infusion. This move suggests that investors are seeing value in the battered financial sector, and perhaps are feeling that there is a bottom being reached in the credit crunch.
In other headlines, Existing Home Sales met expectations, but New Home Sales numbers for March were worse than expected, possibly due to the large increase in the costs for materials needed to construct a home. But then there was a change in climate on Friday, as inflation news from around the World created some strong adverse headwinds for Bonds and home loan rates. Overall, home loan rates ended the volatile week unchanged to slightly higher.
Now is still a good time to take advantage of historically low home loan rates before more inflation talk pushes them higher. I'm always here to help advise you, your friends, and your colleagues...no matter the season!
SPRING ISN'T JUST THE SEASON FOR CRAZY WEATHER...IT'S ALSO THE PERFECT TIME FOR SPRING CLEANING. CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME GREAT SPRING CLEANING TIPS AND ADVICE!



Forecast for the Week




After last week's relatively slow economic news calendar, things will heat up this week with several events that have the potential to move the market. On Wednesday, the Fed will announce their interest rate decision...and then the very next day, the Fed's most favored gauge of inflation will be released, the Personal Consumption Expenditure Index (PCE). It will be interesting to play armchair quarterback to the Fed's decision, and watch what the inflation numbers reveal! And let's not forget, on Friday we will see the important Jobs Report, where early estimates are for a net loss of 80,000 jobs.
As you can see in the chart below, Bond prices ended the week between a technical "floor of support" at the 200-day Moving Average and an overhead "ceiling of resistance" at the 50-day Moving Average...and that ceiling might just stop any improvement for Bonds and home loan rates for the short term, unless the news of the week is really Bond-friendly. We'll have to wait and see if the week's upcoming news leads to calm or stormy times ahead.
Chart: Fannie Mae 5.5%% Mortgage Bond (Friday Apr 25, 2008)



The Mortgage Market View...




SPRING HAS SPRUNG...
...and that means it's time to wash away those winter blues! In fact, according to the Soap and Detergent Association - did you even know there was such a thing? - three-quarters of Americans engage in spring-cleaning. In fact, their surveys indicated that more than 80 percent of people who spring clean agree that it helps them save time throughout the year, and 96 percent of people donate or discard items during their spring-cleaning.
But the advantages can go much further than that. Check out these top ten spring-cleaning activities, compiled by http://www.medicinenet.com/, that can help make your home healthier and safer:
Thoroughly dust your home. Also clean any air conditioning and heating filters, ducts, and vents to minimize pollens and other airborne allergens.
Organize your medicine cabinet. Throw away expired medications and old prescription medicines that you no longer need.
Inventory your garage and basement. Get rid of any old paint, thinners, oils, solvents, stains, and other similar items you no longer need. Note: You may need to take these items to a hazardous waste drop off center.
Inventory under your sinks and around your house. Dispose of old or potentially toxic cleaning products.
Have your chimney professionally cleaned. This will help you lessen the chances of carbon monoxide exposure when the cold weather returns.
Clean all mold and mildew from bathrooms and other damp areas. Use non-toxic cleaning products.
Check your rugs. Make sure that rugs on bare floors have non-skid mats and that older or dusty mats are either washed or replaced.
Inspect outdoor playground equipment. Make sure that all elements are sturdy and safe, especially guardrails, protruding bolts, and other potential sources of injury.
Change your batteries. Do so for both smoke detectors and carbon monoxide detectors.
Collect old batteries throughout the house for disposal. Dispose of them in a battery recycling or hazardous waste center.
And make it easy on yourself - take it one room, one cleaning task at a time. You'll be more likely to accomplish more if you tackle each spring-cleaning project separately. And that's great advice...any time of year!

Last Week in Review




"I KNEW THE RECORD WOULD STAND UNTIL IT WAS BROKEN." ~ Yogi Berra A record was broken on the job front last Friday as the Labor Department reported a much worse than expected loss of 80,000 jobs in March - the greatest jobs loss reported in five years. In addition, revisions to both January and February's Jobs Report delivered an additional loss of 67,000 jobs - that's on top of the previously reported loss of 85,000 jobs for that two-month period.
And...the story might be even a bit gloomier than it already appears. The Labor Department uses a lot of averaging to help it come up with its numbers more quickly, but this practice can skew the current picture significantly. Think of it this way - and because it's now baseball season, here's a Baseball analogy - let's say that mid-way through the season, a red-hot hitter with a batting average of 340 declines into a bad slump for several weeks. While he now can't even hit a basketball thrown underhand to him, his average - while lower to 300 - is still very strong due to his previous hot performance. So someone looking at just the statistics may think that this batter is still absolutely terrific, but he is really someone the fans are booing as he approaches the plate. This is not very different from current numbers being reported by the Labor Department - previous averaging is likely causing an understating of the ACTUAL number of job losses...which somewhat masks how bad the job market really is.
This bleak Jobs Report greatly boosts the odds of not only a first-quarter recession, but perhaps a worse economic downturn than many economists fear. The Federal Reserve may respond to this increasing trend in job losses with additional interest rate cuts when they next meet to determine monetary policy on April 30 and June 25. As we've seen in the past though, such rate cuts do not translate into lower long-term rates for mortgages, so there is no better time than right now to refinance an existing mortgage or to structure a new one. Let's work together to make sure your current financing is a home run!

SPEAKING OF HOME RUNS, ARE YOUR CREDIT CARD INTEREST RATES IN THE RIGHT BALLPARK...OR WAY OUT OF SIGHT? CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR TIPS ON MAINTAINING A WINNING CREDIT CARD INTEREST RATE!



Forecast for the Week




Another classic Yogi Berra-ism is, "I never said most of the things I said." Luckily, the Fed can't make the same claim. This coming Tuesday, the "Meeting Minutes" or open commentary of the Fed's last monetary policy meeting will be released to the public. If there are inflammatory comments, the market could respond quickly.
Remember, when Bond prices move higher, home loan rates move lower. And as you can see in the chart below, Bonds have rebounded higher off of their key 50-day moving average support level, and are moving back toward the upper portion of their current trading range. This means if Bond prices continue to move toward the upper boundary of the range, we could see home loan rates improve slightly.
Chart: Fannie Mae 5.5%% Mortgage Bond (Friday Apr 04, 2008)



The Mortgage Market View...




TAKING AN INTEREST IN YOUR CREDIT CARD RATE...
Credit cards are one of the most pervasive forms of your financial picture. On a daily basis, they provide the flexibility and freedom to reserve a hotel room, travel without carrying cash, and purchase just about anything at anytime.
As such, your credit cards can have a major impact on your financial wellbeing and even your credit score. But did you know that your credit score can also impact your credit cards...specifically your interest rates? Although some companies have abandoned the practice, many won't hesitate to raise your interest rate if your credit score declines - even if you are paying them on time! By following these tips, you can help avoid inflated interest rates on your credit cards...and perhaps even enjoy more trips to the ballpark:
Understand the terms. The best way to protect yourself from high interest rates and hikes is to read and understand your credit cards policy terms. Pay particular attention to the interest rate, how long that rate is in effect, and what actions can lead to a hike - such as a late payment on your card, a declining credit score, or even a late payment on a completely unrelated bill.
Don't be late. Making a late payment can lead to increased interest rates on all your cards. In addition, they can lower your credit score, causing you even more problems down the road. So make a schedule and always pay on time.
Watch the mail. We all get junk mail, but some of it may not be junk after all. Whenever you receive any information in the mail from your credit card, read it carefully in case any policies or interest rates are changing.
Make a call. If your rate does change, call the company. If you've made your payments on time consistently, you may be able to get your original rate restored. If the company seems hesitant, you may want to threaten to transfer your balances to another card - customers in good standing may find they have more bargaining power than they realize. And don't just threaten to make a change...actually do it if it makes sense. You may find the grass actually is greener on the other side.
Be careful what you close. Closing a card that has a current balance will likely send your interest rate soaring. In addition, closing your oldest credit cards can have a negative impact on your overall credit score. So make sure you check and double check which cards are best to close.
To find out more about your own credit score - and what you can do to improve it - call me today. You'll be surprised how a few simple steps can make a big difference and can improve your overall financial picture.



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 April 07 – April 11
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. April 08
02:00
FOMC Minutes
3/18/08



HIGH
Wed. April 09
10:30
Crude Inventories
4/05
NA

7317K
Moderate
Thu. April 10
08:30
Jobless Claims (Initial)
4/05
380K
357K
410K
Moderate
Thu. April 10
08:30
Balance of Trade
Feb
-$57.4B
-$62.3B
$-59.0B
Moderate
Fri. April 11
10:00
Consumer Sentiment Index (UoM)
Apr
69.0
63.2
69.5
Moderate



I guarantee my service to you
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.
As your trusted advisor, I am sending you this newsletter because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
In the unlikely event that you no longer wish to receive these valuable market updates,

please USE THIS LINK or email: jesse@jessevasquez.net
If you prefer to send your removal request by mail the address is:
661 West 10600 southSouth Jordan Utah84095

Should I Stay or Should I go?

On a lighter note today! I will skip the mortgage talk to inform you of something that will afect the way you are approved for a loan or not, or the way a UW will look at you or the company.

Did you know that replacing an employee could cost you up to three times that
employee's annual salary? That's right. Recent studies cite productivity, recruitment,
and training costs associated with hiring new employees as major contributors to this
surprisingly expensive statistic. More importantly, employees take knowledge,
experience, and contacts with them to their next company, often a direct competitor,
as most people tend to stay in the same or similar field.
And while many companies are implementing retention programs to recognize and
limit the cost of employee turnover, research reveals that few companies truly
understand why employees leave in the first place. According to Leigh Branham,
author of The Seven Hidden Reasons Employees Leave, 90% are directly linked, not
simply to money issues, but to issues involving their job, manager, culture, or work
environment.
The following are a few of the top reasons why people quit their jobs, according to research from the Harvard Business
Review, HR Magazine, and other recent studies. Use it as a guide to recognize signs of unhappy employees and to cut
down on the major expense associated with employee turnover:

1) Stress: Departing employees reported that stress from overwork or a work-life imbalance is a big reason for calling it
quits. They might smile through it all, but if employees are consistently working late, working through lunch or on
weekends, you may have a stressed out employee on your hands. Combine this with a personal crisis at home, and the
pressure can be overwhelming.
2) Unrecognized: Many employees quit their jobs because they perceive, whether it's real or not, that their work is
unappreciated. Causes include being paid the same as or less than poor performers or new employees with less
experience; hiring or promoting outsiders instead of from within the company; and even an inkling of favoritism could
create tensions that drive some employees to quit.
3) Money: Many employees don't just quit, they move on to what they perceive as a better opportunity . which may or
may not be true. Either way, you can lose great employees who do not see advancement opportunities within your
company. By knowing your employees' career goals, you may find that the best path for long-term growth is in another
area of your company.
4) Motivation: People don't quit jobs, right? They quit managers. You've heard it before. Well, it turns out that it's actually
true. According to studies, employees seek feedback, not just criticism. They want coaching and direction, assistance and
communication. When they don't get it, they leave. Think about it this way: Have you ever sat down with an employee and
asked what motivates him or her? Do you know why they come to work every day? These are much easier questions to
ask than, .Why are you quitting?.
5) Company Culture: Former employees often describe their previous job as a .bad fit,. a code word for a number of
problems that are often difficult to recognize until it's too late.

Studies suggest that by establishing clear job descriptions
and utilizing personality assessment tools (such as DiSC® profiling), you can better match an employee's specific skills
and talents to his or her job. If you'd like more information about DiSC® profiling or would like to discuss more about this
fascinating topic, give me a call. I'm always looking for ways we can improve our businesses together and be more Productive!

Historic Fed Move Cuts Both Ways for Borrowers
Hot on the heels of its surprise inter−session rate cut of 75 basis points last week, the Federal Reserve cut key interest
rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the
federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth." In other words,
economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.
Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit
(HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next
statement.
What does this mean for long−term rates?
Long−term mortgage rates, the lowest we've experienced in years, could actually increase after today's cut, based on
historical performance and recent trends.
So if you're waiting for long−term rates to fall further, don't count on it. Your best chance to lock in the lowest rates since
2005 is now. Getting your application in process now will allow you to capture a great rate before it's too late.
What REALLY moves mortgage rates?
Fixed−rate mortgage rates aren't directly tied to Fed interest rate moves. Instead, they tend to follow in the direction of other
long−term government bond yields, such as the 10−year Treasury, which historically moves in accordance with the
economic outlook and in advance of Fed actions. The performance of Mortgage Backed Securities, issued by Fannie Mae
and Freddie Mac, is what really determines long−term mortgage rates.
How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a double−edged sword for borrowers.
Combined with recent Fed actions, the package could create inflation and bring about higher long−term interest rates.
On the positive side, conforming loan limits are likely to be raised from the current $417,000 to upwards of $625,000. This
means great potential savings for purchase and refinance candidates who live in 20 high−cost areas across the country.
What should you do next?
If you're unsure how the rate−cut or the proposed legislation affects your mortgage, don't worry, you're not alone. There's no
one−size−fits−all answer. Give us a call right away. We'll review your mortgage and see what, if anything, can or should be
done to make the most of your individual financial goals and needs.

Where are Mortgage Rates headed?

"LIFE IS NEVER BORING...BUT SOME PEOPLE CHOOSE TO BE BORED." Wayne Dyer Yet even if Traders had wanted to be bored last week, the financial markets had other plans. Volatility reigned supreme, with large swings throughout the week in Stocks, Bonds, and home loan rates — and once the smoke cleared, home loan rates were slightly worse than where they began the week.
What caused all the volatility? You name it — continuing concerns on the liquidity and stability of the financial markets; the Federal Reserve at work, cutting the Fed Funds and Discount Rates by .25% and the opening of a new auction facility; a red hot Retail Sales Report; and last but certainly not least, the Producer and Consumer Price Indices both showing inflation to be much higher than expected.
The big mover was the Fed rate cut of .25%, which was a disappointment to the financial markets, as a deeper cut was hoped for. The reaction was very negative for stocks, as the fear of a recession amidst the current credit crunch grows. There are increasing concerns that the Fed is not getting ahead of this problem.
But it is not an easy job for the Fed because they may be fighting a possible recession with a hand tied behind their back...this is due to higher levels of inflation. Surely inflation is still at reasonable levels, but even a little stronger inflation can take a major toll on our lifestyle over time. High levels of inflation have caused unrest, revolt, poverty and wars. It is possible that the Great Inflation of 1920 in Germany eventually led to WWII. During that time, prices rose over an almost unimaginable 1000 times a year! Savings were wiped out and imagine this...the cost of a loaf of bread went from 20 Marks to 20,000 to 20,000,000. And in Mexico, hyperinflation caused a crisis in the peso that has led to extreme levels of poverty. Of course, the US is nowhere close to this type of problem, but inflation is a very serious issue. And with the current rate of inflation in the US ticking higher and towards the upper range of acceptable limits, additional Fed cuts would push inflation even higher. So should the Fed risk a recession to protect against inflation or move to avoid recession and risk inflation? This will likely be one of the hotter economic topics of 2008.
So the week was certainly far from boring — and the volatility may just continue ahead. Yet overall, home loan rates continue to be at very low levels — so if you, or a client, friend, family member or neighbor have been contemplating a refinance or home purchase — now is the time to start making plans. Although the holiday season is a busy time, I am glad to make time for you and your referrals. And even if you don’t have a home loan need at the present time — it’s always wise for us to examine your overall debt structure and financial goals, just to ensure that you are positioned in the best possible way.
AND SPEAKING OF PLANNING...WHAT WOULD YOU DO IF $64,000 LANDED IN YOUR LAP TOMORROW? YOU MIGHT HAVE A FEW IDEAS IN MIND INVOLVING A TROPICAL HOLIDAY — BUT WOULD YOU REALLY KNOW WHAT TO DO IF YOU SUDDENLY CAME INTO AN INHERITANCE? THAT’S THE QUESTION OF THE DAY — SO DON’T MISS THIS WEEK’S MORTGAGE MARKET VIEW.

President Woodrow Wilson signed into law the Federal Reserve Act in 1913,
creating the Federal Reserve, the nation's central banking system. The Federal
Reserve, or Fed, has also been called "the gatekeeper of the US economy" because
of its unique power to influence US financial and credit markets.
Comprised of seven presidentially−appointed Board of Governors; the Federal Open
Market Committee; 12 Federal Reserve Banks; and private U.S. banks and advisory
councils, the Fed's mandate is "to promote sustainable growth, high levels of
employment, stability of prices to help preserve the purchasing power of the dollar,
and moderate long−term interest rates." In other words, the Fed's job is to regulate
the nation's financial institutions while simultaneously keeping inflation in check.
To accomplish this important yet difficult task, the Fed studies economic indicators,
creates, and then implements monetary policy − its specific plan of action or "target" for the economy − based on its
findings. And while there are many tools at its disposal, the Fed has three main instruments of monetary policy: open
market operations, interest rates, and reserve requirements, all of which can impact the mortgage industry.
Open market operations, the principal tool used by the Fed in its monetary policy, consist of the buying and selling of U.S.
government and mortgage−backed securities (treasury bonds, notes, and bills) on the "open market." Basically, the Fed
buys when it wants to increase the flow of money and credit, and sells when it wants to reduce it.
The Fed also controls two important interest rates: the discount rate and the fed funds rate. The discount rate is the
interest rate charged by Federal Reserve Banks to commercial banks and other eligible financial institutions on short−term
loans. The Federal Reserve Banks offer three discount window programs to depository institutions: primary credit,
secondary credit, and seasonal credit, each with its own interest rate. Experts say that changes in the discount rate can
serve as a clear announcement of a change in the Fed's monetary policy. These changes are important because they can
impact lending rates for banks and interest rates for the open market.
According to the Federal Reserve, the fed funds rate is the interest rate at which depository institutions lend balances at
the Federal Reserve to other depository institutions overnight. Like the federal discount rate, the fed funds rate is another
tool the Fed can use to control inflation and other interest rates. This interest rate is often a source of intense speculation
whenever the Federal Open Market Committee meets, creating uncertainty that can move the financial markets as well.
Finally, think of reserve requirements, the last of the Fed's main monetary policy instruments, as the cash deposit
requirement for a secured credit card. Reserve requirements represent the specific portion of deposits that banks are
obligated by law to keep in non−interest−bearing funds at a Federal Reserve Bank, typically 10%. Consequently, as banks
attempt to stay as near to the reserve limit as possible without dropping below, they constantly lend money back and forth
to each other. The Fed, interpreting signs of inflation in its economic indicators, may choose to reduce the amount of
reserves available to banks by slowing the selling of securities. Generally, this causes interest rates to rise, the economy
to slow, and inflation to slow with it. The reverse is generally true when indicators suggest a slowing economy or deflation.

If you or your clients have any questions about the Federal Reserve, inflation, interest rates, or any of the topics
discussed in this piece, please don't hesitate to give me a call. The Fed's monetary policy is not only fascinating,
your clients would benefit greatly from understanding its impact on the financial and credit markets

LOWER FED RATE MEANS OPPORTUNITIES ON THE RISE

Lower Fed Rate Means Opportunities on the Rise
For the first time in more than four years, the Federal Reserve cut its Fed Funds Rate, which directly impacts millions of American borrowers. And while this important decision has many implications, there’s still some debate among experts about what this means to the economy as a whole.
The Federal Reserve meets again in six weeks, and no one is certain how market volatility and inflation concerns will affect their future policy and decision-making. Bottom line: Take advantage of this opportunity while you still can. Call me right away.
If you’re looking to capture a lower interest rate for refinancing or buying a home, this could be your best opportunity to do so.
If you have an Adjustable Rate Mortgage, while this rate cut might help to improve your situation, now is the time to refinance into a fixed-rate loan.
If you have a Home Equity Line of Credit (HELOC) or credit cards tied to the Prime Rate, the Fed’s cut in the Fed Funds Rate just put a little money in your pocket.
Borrowers waiting for a lower fixed-rate mortgage may be waiting for a long time. The chart below clearly shows how Fed Funds Rate cuts do not translate into cuts in fixed-rate mortgages. In January 2001, the Fed Funds Rate was at 6% and 30-year fixed rates averaged 7.03%. By December 2001, following 4.25% in cuts throughout the year, home loan rates were actually up to 7.07%.

Yes, we may experience some temporary improvements in rates in the coming weeks, but the markets will remain volatile as long as inflation and recession are a possible threat to the Federal Reserve's long-term economic policies.
If you’re looking to refinance or buy a new home, call me. I will show you why waiting can cost you a lot of money.