Inside Lending for the week of April 29, 2013

QUOTE OF THE WEEK… “Perseverance is the hard work you do after you get tired of doing the hard work you already did.” –Newt Gingrich

INFO THAT HITS US WHERE WE LIVE… Even though the housing recovery is well underway, there still is evidence that more hard work needs to be done. Last week began with March Existing Home Sales off 0.6%, dropping to an annual rate of 4.92 million units. In addition, the months’ supply of existing homes edged up to 4.7 from 4.6 in February. But even though existing home sales seem to have leveled off in the last few months, they’re actually UP 10.3% versus a year ago. It’s also encouraging to note that the median existing home price, at $184,300, is up 11.8% over last year. 

To further inspire us, March New Home Sales came in Tuesday up 1.5%, to a better than expected 417,000 annual rate. New home sales are now up 18.5% over a year ago, and Q1 of 2013 was the best quarter for new home sales since Q3 of 2008! The months’ supply of new homes remained at 4.4, as the faster sales pace was offset by a rise in inventory of 3,000 units. The median price of new homes sold, at $247,000, is up 3.0% over a year ago. Finally, the FHFA index of prices for homes financed by conforming mortgages was up 0.7% in February and up 7.1% versus a year ago.

BUSINESS TIP OF THE WEEK… Don’t be afraid to take small risks. Just spend the time to test things out. And trust your gut. Often our gut instincts lead the way to the success we’ve been looking for.

A large percentage of our business is currently seller-directed – builder or listing agents offering a seller credit for using the AMT Group at PrimeLending – and rescue loans that another lender couldn’t close.  We operate under a simple premise that doing the heavy lifting upfront will eliminate surprises later on.  Call or email to find out what our partner’s already know about us.  We’d love to help you and your buyers with our highly-communicative, surprise-free mortgage process. 

The AMT Group :: A Refined Mortgage Experience :: Precision :: Neatness :: Simplicity

Inside Lending for the week of April 22, 2013

QUOTE OF THE WEEK… “We do not have to become heroes overnight. Just a step at a time, meeting each thing that comes up,…discovering we have the strength to stare it down.” –Eleanor Roosevelt

Our hearts go out to the Boston bombing victims and their families. Our pride goes out to the heroes who responded with sacrifice and courage. God Bless America.

Market Update 

INFO THAT HITS US WHERE WE LIVE… Last week Housing Starts were reported UP 7.0% for March to a 1.036 million unit annual rate, 46.7% higher than a year ago and the highest they’ve been since 2008. But wait. The boost was all due to multi-family units, up 31.1% for the month. Single-family starts were down 4.8%, although they actually are UP a very healthy 28.7% from a year ago. Analysts tell us the multi-family sector is super volatile from month to month, but they expect large gains for home building overall for at least two years.

Building Permits in March were down a bit, to a 902,000 annual rate, but almost all the drop was due to multi-families. Single-family permits slipped just 0.5% for the month and are now UP 27.7% versus a year ago. The National Association of Home Builders (NAHB) confidence index went to 42 from 44 in March. But get this. The NAHB index for future single-family sales rose from 50 to 53, a very positive sign. Economists say it’s OK in a recovery to see up and down indicators along the way, as long as the underlying trend is upward, which it is now in housing.

BUSINESS TIP OF THE WEEK… Focus. Set goals, make decisions, get organized. Don’t just watch life happen; take control of your destiny. As Yogi Berra said: “If you don’t know where you are going, you’ll wind up somewhere else.”

The Arizona housing market is rapidly growing.  There are around 13,000 homes for sale which has made this a seller’s market.  We have a strong pre-qualification process that includes contacting listing agents after our clients submit purchase offers to let them know that 1) we have completed the required work - essentially underwriting the loan before we complete the pre-qualification - to insure there is a loan to stand behind our pre-qualification and that we do not use an Appraisal Management Company but instead have our own internal appraisal desk which uses a list of vetted appraisers.  Finally, we have a float down option available on most of our loans that allows our clients to lock a rate and then improve the rate later if the market improve – with no extra cost to the client!  If you are not receiving these benefits from your lender, contact us.  You should have a fantastic mortgage experience!!

Inside Lending for the week of March 11, 2013

WHY CHOOSE THE AMT GROUP… The best part of the home buying process is moving in.  However, sometimes just getting to closing is enough to drive a same person mad.  We cured this.  A great lending experience starts with the pre-qualification.  If you or your clients are not wowed by the mortgage experience, please call us – see how different the home buying process can be.

QUOTE OF THE WEEK… “If I had permitted my failures…to discourage me, I cannot see any way in which I would ever have made progress.”–Calvin Coolidge, 30th U.S. President

INFO THAT HITS US WHERE WE LIVE… Those of us who haven’t been discouraged by the housing market these past few years, can now see the progress we helped to achieve. Last week, more good news came regarding home prices. A leading data aggregator reported national home prices were UP 9.7% in January versus a year ago, the biggest annual increase since April 2006. And the 0.7% monthly advance they posted was their 11th in a row. Many observers feel these price gains will likely boost home sales during the first half of the year.

In addition, asking prices of homes listed for sale on a major online real estate portal were up compared to a year ago in 90 of the top 100 U.S. metros. The asking price gains for February were the largest since the recession began, UP 1.4% for the month and UP 7% versus a year ago. Their chief economist commented, “…buyers face a dilemma between buying now before prices rise even more, or later this year, when they’ll have more inventory to chose from.”

BUSINESS TIP OF THE WEEK… Think about what works well in your business, then focus on ways to improve it. It’s easier to make changes to something that’s functioning well, and making a good thing better can really pay off.

5 points to remember when selling your home

Believe it or not; homes are often undersold in their listings. When you sell your home, here are 5 things buyers like that your agent should be sure to mention in the listing description:

1. Features not found in apartments. If your home is attractive to first-time homebuyers, point out the features that upgrade their lifestyle. These could be large closets, an attached garage, extra attic and basement storage, a bonus room, an outdoor kitchen. Be sure to feature anything not found in homes in your price range.

2. Special features with broad appeal. These can be things like built-in desks, an over-the-stove faucet for filling a pasta pot, a kitchen recycling center, custom closet or garage organizers.

3. Convenience to activities people want. If folks move to your area to hike, golf, ski, or go boating, point out any amenity your home has that goes with that lifestyle.

4. Features that don’t normally occur together in homes in your price range. These are features like: great views plus convenient shopping; vintage charm plus modern updates; an HOA that manages the outdoor space plus your own private yard.

5. Features that compensate for any drawbacks. If you have one less bedroom than other homes in your neighborhood, you might highlight a finished basement or bonus room. If you’re next to a school, perhaps you can point out a larger yard. If your home needs updating, you could offer a closing cost credit.

If you are thinking of selling your home, you’re probably thinking of buying another one. For information on financing that purchase, refinancing your existing home or funding home improvements, please call or email us – we’re always here to help…. Have a great day!

PS  The housing market is clearly recovering in many parts of the country. Home prices remain extremely affordable – and mortgage rates are still near historical lows. But if you’re thinking about buying or refinancing, it’s smart to get the financing process started early. Please call or email us to talk about the attractive options available now.

9 tips for creating passwords that send hackers away

To keep hackers out of your systems, never click on suspicious links or attachments, even from friends. But it’s even more important to manage your passwords. Here’s what internet security experts say we should do:

1. Use nothing from the dictionary. If your password is in the dictionary, it’s no barrier at all. Even if you make  changes to a real word, hackers can still breach it.

2. Use a “passphrase.” The longer the password, the harder it is to crack. One that’s 14 characters or more is ideal. But long passwords are hard to remember, so think of a phrase–a favorite song lyric, movie quote, or poem, then use only the first few letters of each word for your “passphrase.”

3. Try gibberish. Randomly run over your keyboard, hitting Shift and Alt/Option keys every once in a while. Copy each of these gibberish passwords into a text file and put it on an encrypted, password-protected USB drive. The best passwords have a random selection of upper and lower case letters, numbers, and keyboard symbols, like “%” and “+”.

4. Never use a password twice. Hackers love it when people use the same password for lots of sites. Once they get into your LinkedIn account, they’ll try for your bank account. Make sure it’s different.

5. Store passwords securely. Never store your passwords on your computer. If it’s hacked, all your accounts will be compromised. Store passwords on an encrypted USB drive with a long password you memorize, then copy and paste them into accounts to prevent keystroke logging software from getting them. Or simply keep password hints (not the passwords) on a piece of paper in your wallet.

6. Give crazy answers to security questions. It’s not hard for hackers to find the real answers to these questions. So when accounts ask, “What high school did you attend?” make your answer something like, “The sky never turns purple in Nebraska.” But be sure to remember it!

7. Use more than one browser. Pick one browser for casual surfing – news, hobbies, forums, and blogs. Use another for social nets. Then choose a third to use only for the important stuff – online banking, bill paying, and e-mails. Then close it when you’re done using it.

8. Pass on those password managers. There are password-protection and password management programs available, but, remember, they still reside on the computer. If it’s stolen, you’ve lost your passwords. Also, hackers have cracked some of this software.

9. Be careful about sharing. Try not to register for online accounts with your real e-mail address. You can get “throwaway” e-mail addresses at sites like 10minutemail.com, which self-destruct in 10 minutes. Consider everything you share online as public record.

Inside Lending for the week of February 11, 2013

QUOTE OF THE WEEK… “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel”–Maya Angelou, American author and poet

INFO THAT HITS US WHERE WE LIVE… People who are putting their homes on the market appear to be feeling pretty good these days. An online real estate portal reports that the asking prices of homes listed with them were up 5.9% in January from a year ago, in 86 of the 100 largest metros. Those asking prices grew by a seasonally adjusted 0.9% from December, the largest month-over-month boost since March last year.

Housing experts are feeling pretty good too. The chairman of the S&P Dow Jones index committee said, “housing is clearly recovering,” citing November’s healthy new and existing homes sales. The National Association of Realtors chief economist predicted, “Job creation and household formation will likely fuel growth. Both sales and prices will again be higher in 2013.” (CORRECTION: A keen Inside Lending reader pointed out Ayn Rand’s first name was misspelled following her quote in last week’s edition. We’re sorry for the typo and apologize to Rand fans.)

BUSINESS TIP OF THE WEEK… Don’t get sidetracked before you reach your goal. When you’re stuck, going out for a walk is a great way to clear your mind and get back on track.

The Arizona housing market is rapidly growing.  There are around 13,000 homes for sale which has made this a seller’s market.  We have a strong pre-qualification process that includes contacting listing agents after our clients submit purchase offers to let them know that 1) we have completed the required work - essentially underwriting the loan before we complete the pre-qualification - to insure there is a loan to stand behind our pre-qualification and that we do not use an Appraisal Management Company but instead have our own internal appraisal desk which uses a list of vetted appraisers.  Finally, we have a float down option available on most of our loans that allows our clients to lock a rate and then improve the rate later if the market improve – with no extra cost to the client!  If you are not receiving these benefits from your lender, contact us.  You should have a fantastic mortgage experience!!

PrimeLending Newsletter for the week of January 7,2013

visit my website    email me now   The AMT Group at PrimeLending Certified Mortgage Planning Specialists Andy Mersiowsky & Peter Bartolini Trusted Mortgage Solutions 17015 N. Scottsdale Rd.; #100 Scottsdale, AZ 85255 Office: 480-538-4949 Andy: 480-538-4974 Peter: 480-538-4953

For the week of January 7, 2013 – Vol. 11, Issue 1

>> Market Update  QUOTE OF THE WEEK… “Never tell your resolution beforehand, or it’s twice as onerous a duty.”–John Selden, English jurist and scholar INFO THAT HITS US WHERE WE LIVE… Our leaders in Washington aren’t telling if they’ve truly resolved to put our fiscal house in order, but at least last week’s deal to avert the fiscal cliff left housing a winner on most issues. First, they extended mortgage forgiveness debt relief through 2013. If they hadn’t done this, principal balances written off by lenders to help homeowners with underwater mortgages would have been treated as ordinary taxable income. The bill also re-established the deduction for mortgage insurance premiums for 2012 and 2013 for people with adjusted gross income below $110,000. In addition, the compromise offers tax credits to homeowners making energy-efficient home improvements in 2012 and 2013. Builders get a tax credit on new homes constructed in 2012 and 2013 that meet federal energy standards. U.S. manufacturers of energy efficient appliances also earn tax credits. Best of all, tax deductions for mortgage interest and property taxes were left untouched, but that battle isn’t over, since the politicians will soon be reforming the tax code. Always consult a tax professional for definitive answers on all these issues. BUSINESS TIP OF THE WEEK… People buy from people. Rather than talking business or current events with prospects, bring up family, hobbies, whatever interests you. Take the time to build a personal connection first. >> Review of Last Week WHAT A RELIEF… Last Tuesday, with the country poised to go over a fiscal cliff of major tax hikes and spending cuts, Congress averted it by passing budget legislation the President agreed to sign. They raised taxes on a small portion of wealthy Americans and extended unemployment benefits, and the fact they came to any agreement set off a humongous relief rally on Wall Street. The S&P 500 index closed Friday at a five-year high, enjoying its largest weekly percent gain in more than a year. But spending cuts weren’t addressed, so there’ll be more political wrangling on that and the $16.4 trillion debt ceiling limit we’ll soon reach. All was not upbeat as stocks fell Thursday after the minutes from the Fed’s December meeting revealed some officials want to see an end to the central bank’s bond-buying economic stimulus program later this year. Economic data continued mixed, with ISM Manufacturing and initial and continuing jobless claims missing estimates. But ISM Services topped forecasts and showed growth for that sector, while Friday’s December Employment Report added a modest 155,000 jobs, although the unemployment rate remained at 7.8%. For the week, the Dow ended up 3.8%, to 13435; the S&P 500 was up 4.6%, to 1466; and the Nasdaq was up 4.8%, to 3102. Bonds got slammed as stocks soared on the cliff deal and investors worried the Fed might slow its bond purchases. The FNMA 3.5% bond we watch ended the week down .14, at $106.05. National average mortgage rates held near record lows last week in Freddie Mac’s Primary Mortgage Market Survey. In the Mortgage Bankers Association weekly survey, applications for purchase loans were finally down, after increasing five weeks in a row. DID YOU KNOW?… At the New Year, a resolution is an expression of intent to do something. But in the corporate world, a resolution is an official document representing an action on the part of the Board of Directors. >> This Week’s Forecast QUIET START… After last week’s melodramatics, we have a very quiet period of economic reporting. Thursday, Initial Weekly Unemployment Claims are expected to remain above 350,000 while Continuing Unemployment Claims stay at the 3.2 million level. Friday, the November Trade Balance should shrink a bit, showing a little more strength in our exports. This will be followed in the afternoon by the December Federal Deficit, forecast still way too high, above $80 billion. Please note, that’s for the month!  >> The Week’s Economic Indicator Calendar Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Inside Lending for the week of December 17, 2012

>> Review of Last Week

UNCERTAINTY TAKES ITS TOLL… There are just two weeks to go for politicians to broker a deal to stop the country from going over a fiscal cliff of draconian tax hikes and spending cuts. Unfortunately, Washington isn’t proceeding with much urgency. Investors reacted poorly to the uncertainty as all three major stock indexes slipped for the week. Not helping things, the economic data was mixed, as inflation cooled and Industrial Production beat expectations, but Retail Sales missed consensus targets.

The big news came out of the Fed meeting on Wednesday. The Fed Funds Rate wasn’t touched, but the FOMC Committee announced it would now keep the Rate at these super low levels as long as unemployment stays above 6.5%. Most economists think that will be a very long time. To support this policy, once the current “Operation Twist” bond buying program ends, the Fed will start purchasing $45 billion worth of Treasuries each month, indefinitely.

For the week, the Dow ended down 0.2%, to 13135; the S&P 500 was down 0.3%, to 1414; and the Nasdaq was down 0.2%, to 2971. 

In spite of this week’s Fed announcement, there was a bit of a sell-off in long term bonds. The FNMA 3.5% bond we watch ended the week down .08, at $106.15. Nonetheless, the Fed did signal that the measures they’re taking to keep interest rates low will remain in place for a good long while. So national average mortgage rates stayed at or near record lows. The Mortgage Bankers Association reported demand for purchase loans gained for the fifth week in a row, up 9% over a year ago. 

DID YOU KNOW?… Fiscal policy refers to decisions by the President and Congress about taxation and government spending. Economists explain that when taxes increase, more money goes to the government, so consumers have less to spend on goods and services to grow the economy and create jobs.

>> This Week’s Forecast

HOME BUILDING, EXISTING HOME SALES, MANUFACTURING, GDP, INFLATION… November Housing Starts are forecast down a little, although Building Permits are expected up for the month. Existing Home Sales should be up in November, inching ever closer to the 5 million mark. Manufacturing should look better, with the NY Empire and Philadelphia Fed Indexes both back in positive growth territory.

Thursday, the Third Estimate of Q3 GDP is predicted to remain at 2.7%, putting our economic growth just below where it needs to be. Friday’s Personal Income and Spending are both expected up for November, with Core PCE Prices showing inflation still under control.

Even during this refinance boom, we refuse to move our primary focus away from our purchase business.  A huge portion of our business is currently seller-directed – builder or listing agents offering a seller credit for using the AMT Group at PrimeLending – and rescue loans that another lender couldn’t close.  We operate under a simple premise that doing the heavy lifting upfront will eliminate surprises later on.  Call or email to find out what our partner’s already know about us.  We’d love to help you and your buyers with our highly-communicative, surprise-free mortgage process.

Inside Lending for the week of October 1, 2012

QUOTE OF THE WEEK… ”Even if you fall on your face, you’re still moving forward.”–Victor Kiam, American businessman

INFO THAT HITS US WHERE WE LIVE… You could say New Home Sales fell on its face in August, as it was down 0.3% to a 373,000 annual rate. But confirming the sentiment of the above quote, New Home Sales are in fact moving forward–UP a nice 27.7% from a year ago and remaining near a two-year high, with every region up in the last year. Even better, the months’ supply of new homes is at 4.5 and the median price of new homes sold hit $256,900, UP 11.2% for August, the largest monthly increase since 1963!

Speaking of prices, the much-reported S&P/Case-Shiller home price index showed 16 out of 20 metros posting annual gains in July and, for the third month in a row, all 20 markets had price gains  over the prior month. The Federal Housing Finance Agency home price index reported a 3.7% annual gain in July, this for homes bought with conventional mortgages. Analysts say these July numbers indicate a positive turn in the housing market, quickly becoming the brightest spot in an otherwise dim economic recovery.

BUSINESS TIP OF THE WEEK… Press the flesh. In today’s smartphone, tablet-enabled world, it’s easy to forget the importance of face time with clients. The best networking happens in person — and it’s way more enjoyable!

>> Review of Last Week

ECONOMIC DATA DOWN, STOCKS FOLLOW… Stock prices took a dive last week, as most economic data came in worse than expected and Eurozone worries re-surfaced when stress tests on Spanish banks exposed a combined capital shortfall of 59.3 billion euros! Although all three major stock indexes were seriously down for the week, they were still ahead for September, for the quarter and for the year. Good news also came with positive consumer confidence data, plus personal spending and Core PCE both showing inflation in-line with expectations. 

Disappointments came from a series of reports that mostly missed estimates by a wide margin. Personal income was up only 0.1% in August. Durable Goods were down 13.2%, and excluding transportation items, they were still down 1.6%. Chicago PMI revealed manufacturing contraction in the Midwest. Worst of all, the third estimate of Q2 GDP put our overall economic growth at a barely visible 1.3% annual rate!The week was so bad, some saw the lower reading of 359,000 new jobless claims as a good thing. Those waiting in the unemployment line would no doubt disagree. 

For the week, the Dow ended down 1.0%, to 13437; the S&P 500 was down 1.3%, to1441; and the Nasdaq was down 2.0%, to 3116. 

Once again, concerns over our economy and Europe’s finances sent investors to the safe haven of bonds, pushing up prices. The FNMA 3.5% bond we watch ended the week UP .05, at $107.08. With the Fed buying $40 billion a month of mortgage bonds, national average mortgage rates were at or near record lows. Demand for purchase loans was up 5% from the same time a year ago. No surprise there.

DID YOU KNOW?… Durable Goods measures consumer spending on products expected to last more than three years. The reports are considered a gauge of manufacturing and they’re broken down by industry, to eliminate the effect of volatile segments like defense and transportation.

>> This Week’s Forecast

MANUFACTURING, SERVICES, THE FED AND, OH YES, JOBS… Not a lot of economic reports this week, but the ones we’ll get are key. The ISM Manufacturing Index is expected to still show contraction in that sector, while ISM Services should remain just over the 50 threshold, indicating feeble growth.

Wednesday, FOMC Minutes from the Fed’s last meeting will be scrutinized and could prove interesting. The big focus will be Friday’s September Employment Report. No dramatic growth in payrolls is expected, and the unemployment rate appears to be holding simply because more people are discouraged from looking for work.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Oct 1 – Oct 5

Date	Time (ET)	Release	For	Consensus	Prior	Impact
M Oct 1	10:00	ISM Index	Sep	49.7	49.6	HIGH
W Oct 3	08:30	ISM Services	Sep	53.0	53.7	Moderate
W Oct 3	10:30	Crude Inventories	09/29	NA	–2.446M	Moderate
W Oct 3	14:00	FOMC Minutes	09/12	NA	NA	HIGH
Th Oct 4	08:30	Initial Unemployment Claims	09/29	365K	359K	Moderate
Th Oct 4	08:30	Continuing Unemployment Claims	09/22	3.273M	3.271M	Moderate
F Oct 5	08:30	Average Workweek	Sep	34.4	34.4	HIGH
F Oct 5	08:30	Hourly Earnings	Sep	0.2%	0.0%	HIGH
F Oct 5	08:30	Nonfarm Payrolls	Sep	120K	96K	HIGH
F Oct 5	08:30	Unemployment Rate	Sep	8.1%	8.1%	HIGH

>> Federal Reserve Watch   

Forecasting Federal Reserve policy changes in coming months… With last week’s GDP estimate showing economic growth slowing, no one see the Fed hiking the Funds Rate any time soon.

We are thankful for the chance to help Scottsdale and Phoenix area residents with their residential mortgage needs.  With low interest rates and super affordable homes, this a great time to upsize, downsize or refinance. Please call or email us now to discuss your situation.

Inside Lending for the week of September 17, 2012

 

QUOTE OF THE WEEK… ”The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it.”–Ray Kroc, creator of McDonald’s

INFO THAT HITS US WHERE WE LIVE… Today’s home buyers seem to be in the right place at the right time, as our already super low mortgage rates may go even lower. The impetus for this comes from the Fed’s announcement last Thursday that they will purchase $40 billion a month of mortgage backed securities guaranteed by Fannie Mae and Freddie Mac. This is to keep downward pressure on interest rates to help boost the housing recovery. One observer expects to see “the lowest 30-year rates ever.” Smart buyers will no doubt do something about that.

Economists say the housing market bottomed out this summer and they expect improvement in 2013. Even though Consumer Confidence in August dipped to its lowest level since late 2011, Fannie Mae reported that 73% of Americans who were polled think it’s a good time to buy a home. Harvard University’s recent “State of the Nation’s Housing” report sees “definitive signs of a turnaround.” The situation has improved for sellers too, as lower inventories of homes for sale are making price cuts less common and homes sell for near asking prices.

BUSINESS TIP OF THE WEEK… You can accomplish wonderful things with a positive comment. Say thank you or offer a compliment whenever you can. Mark Twain quipped, he could live for two months on a good compliment!

>> Review of Last Week

THE FED FIRES UP THE STREET… The Fed’s “quantitative easing” bond buying program mentioned above got investors excited enough to give stocks their second straight week of gains. The Dow ended at its highest close since December 2007, while the Nasdaq reached a level it hadn’t seen since November 2000. Investor optimism aside, many economists doubt that this third money printing effort by the Fed will do all that much to help the economy. Jobs continue to be the big prob, asnew unemployment claims hit 382,000 last week, the most in two months.

Industrial production contracted more than expected in August, but, hey, the Michigan Consumer Sentiment Index was up for September, many feel because of rising stocks and home prices. Retail Sales also rose in August, yet so did the cost of living, as reflected by increased gasoline prices. All this was verified by the Consumer Price Index (CPI) coming in up 0.6% for August. Still, the CPI is up only 1.7% from a year ago, well within the Fed’s inflation guidelines.

For the week, the Dow ended UP 2.2%, to 13593; the S&P 500 was UP 1.9%, to 1466; and the Nasdaq was UP 1.5%, to 3184. 

Many bonds got hammered by the run-up in stocks. But the new quantitative easing (“QE3″) announced by the Fed includes mortgage bond purchases, which should keep those prices up and mortgage rates down for a while longer. The FNMA 3.5% bond we watch ended the week UP .76, at $106.07. National average mortgage rates remained near record lows. Demand for purchase loans for the week was up a seasonally adjusted 8% over the prior week and up 7% versus a year ago.

DID YOU KNOW?… Initial Unemployment Claims track the number of Americans filing for unemployment benefits for the first time. As that number increases or decreases from week to week, economists gauge how the jobs market is doing.

>> This Week’s Forecast

MANUFACTURING, HOME BUILDING, HOME SALES… After recent slowdowns in factory activity, the New York Empire and Philadelphia Fed Manufacturing Indexes should improve for September, although both still show contraction.

Wednesday, we’ll get a pretty good picture of the August housing market. Housing Starts are forecast up, reflecting builders’ increasing confidence in developing properties to sell or rent. They do remain cautious, though, as Building Permits are off a bit. Existing Home Sales are predicted up for August, steadily if slowly heading back to 5 million units.