The BatMobile at auction in Palm Springs today. Batman's the coolest because he has the best toys. Who is your favorite Super Hero??

Sean La Rue
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760-835-5663

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Sean's Weekly Market Newsletter Click to View

Last Week in Review "OPINION HAS CAUSED MORE TROUBLE ON THIS LITTLE EARTH THAN PLAGUES..." Voltaire. And lately, there have been a lot of opinions about inflation being voiced from Fed officials, respected economists, and the media. But what does all this talk really mean for our economy and home loan rates? Here's what you need to know. On Friday, the Consumer Price Index (CPI), which measures the prices US consumers pay, came in lower than expected for January. The chart below shows the year-over-year headline CPI at 2.6%, below expectations of 2.8%.  What's more, when volatile food and energy are removed from the equation, the "Core" Consumer Price Index was actually negative - and the last time that happened was 28 years ago. ----------------------- Chart: Consumer Price Index So, if the CPI Report shows that inflation is currently non-existent, why are so many people expressing concern? The reality is that the factors which are currently restraining inflation pressures could easily swing the other way. In fact, Kansas City Fed President Thomas Hoenig recently said, "Fiscal policy is on an unsustainable course.  The US Government must make adjustments in its spending and tax programs.  It is that simple. If pre-emptive corrective action is not taken regarding the fiscal outlook, then the United States risks precipitating its own next crisis." And part of the crisis Mr. Hoenig is warning of is the possibility of hyperinflation, which occurs when prices rise so quickly that a currency becomes worthless.  Hoenig recently reminded us that he has a framed picture of a 500,000 German mark bill in his office...which would have purchased a home in 1921, but due to sudden inflation, wouldn't purchase a loaf of bread just two years later. Adding to the inflation talk, recent Produce Price Index Reports, which measure inflation at the wholesale level, have shown a trend higher in wholesale inflation.  January's report, for example, was significantly higher than expected, due to rising energy costs. Also chiming in with an opinion, Philadelphia Fed President Charles Plosser made some interesting comments regarding monetary policy and sales of assets that the Fed currently owns.  Mr. Plosser stated that the Fed should begin to sell off their stockpile of Mortgage Backed Securities (MBS) as the economic recovery gains strength.  With the Fed MBS buying program ending soon, and the Fed now potentially turning into a seller of MBS, Bond prices and home loan rates will very likely worsen over time. (More on this in the special "Video View" below...don't miss it!)    In other news, the Empire State Manufacturing Index came in higher than expected and up from January's reading. The report also showed business activity picking up and business leaders forecasting better economic conditions in the coming months. In addition, Housing Starts for January came in better than expected and at the highest level since July, thanks in large part to the extension of the Homebuyer Tax Credit. Bond prices were unable to improve after falling below an important technical level this week, and as a result, home loan rates ended the week worse than where they began. MANY PEOPLE ARE ASKING FOR OPINIONS ABOUT WHERE HOME LOAN RATES ARE HEADED...AND WHY. CHECK OUT THIS WEEK'S MORTGAGE MARKET GUIDE VIEW FOR A SPECIAL VIDEO THAT EXPLAINS HOW AND WHY HOME LOAN RATES MOVE...AND WHAT IT MEANS RIGHT NOW.

Forecast for the Week While it's hard to say what opinions might be uttered this week, there will definitely be plenty of news in store. We'll get a look at the housing market with Wednesday's New Home Sales Report and Friday's Existing Home Sales Report. It will be interesting to see if these reports are looking more positive, as many buyers are working to take advantage of the Homebuyer's Tax Credit before it expires this spring. If you want to learn more about this Tax Credit and how it might help you or someone you know - don't hesitate to get in touch with me, I can share all the details and important timelines. Also this week, we'll get several reads on the health of the economy with Thursday's Durable Goods Report - which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time - and Friday's Gross Domestic Product Report, which is the broadest measure of economic activity. Tuesday's Consumer Confidence Report and Thursday's Initial Jobless Claims Report will also be important to watch. Last week's Initial Jobless Claims and Continuing Claims numbers were higher than expected, showing that the labor market is still struggling. The bottom line is that while some of the recent economic reports have had encouraging signs, the economy needs to create jobs and regain consumer confidence before any positive opinions on the economy will become reality. And as if it won't be a week jam packed full of opinions already, Fed Chairman Ben Bernanke will be weighing in with some thoughts of his own, as he testifies before Congress on Wednesday and Thursday. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds ended the week below an important technical level. I'll be watching closely to see if Bonds can reverse course and move higher this week, which would result in an improvement for home loan rates. Chart: Fannie Mae 4.5%% Mortgage Bond (Feb 19, 2010)

The Mortgage Market View... Rates May Be Headed Up Soon...But Why? You've heard a lot over the last several months about historically low home loan rates...but lately, you've probably been hearing the buzz that interest rates may be heading up in the near future, due in part to the Fed ending their purchases of Mortgage Backed Securities. All of this begs the question: How and why do rates move...and what is happening right now? The answer involves a number of factors and can seem complex. But it doesn't have to be! To help you understand how interest rates move, take a look at this easy to understand video. You'll learn what the Fed has been doing to keep rates low, as well as the connection between interest rates and Mortgage Backed Securities. Take a look at the following video now for an easy explanation: How Rates Move - and What it Means Right Now

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 February 22 - February 26 Date ET Economic Report For Estimate Actual Prior Impact Tue. February 23 10:00 Consumer Confidence Feb 55.0   55.9 Moderate Wed. February 24 10:30 Crude Inventories 2/19 NA   3.08M Moderate Wed. February 24 10:00 New Home Sales Jan 355K   342K Moderate Thu. February 25 08:30 Jobless Claims (Initial) 2/20 460K   473K Moderate Thu. February 25 08:30 Durable Goods Orders Jan 1.5%   0.3% Moderate Fri. February 26 08:30 Gross Domestic Product (GDP) Q4 5.3%   5.7% HIGH Fri. February 26 09:45 Chicago PMI Feb 59.0   61.5 Moderate Fri. February 26 10:00 Consumer Sentiment Index (UoM) Feb 74.0   73.7 Moderate Fri. February 26 10:00 Existing Home Sales Jan 5.50M   5.45M Moderate Fri. February 26 08:30 GDP Chain Deflator Q4 0.6%   0.6% HIGH

Make It A Great Day,

Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español

Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089

44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”

Let's Get Connected!

Facebook | Twitter | YouTube | Linkedin

Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update

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Video App for non-3GA iPhones Sat, 20 Feb #2

Download now or watch on posterous

movie.mov (1971 KB)

Sean La Rue
SeanLaRue.com
760-835-5663

Facebook: www.facebook.com/seanlarue
Twitter: www.twitter.com/seanlarue

Posted via email from Sean LaRue's Posterous

Weekly Mortgage Update

Rates are great, but they won’t stay at these levels much longer. Make sure to explain to your clients that rates will be on the rise in the coming months.

Leverage my knowledge and experience in the mortgage business to help make you $$$$$$$$$. We can still close loans in 30 days, and we mean it.

30 Year Fixed Rates at 5%.............

5 Year Fixed Rates BELOW 4%................

Market Update

First-time homebuyers tax credit is set to expire June 30, 2010, so get you buyers off the fence and tell them to buy NOW. Below is a review of the first-time homebuyer extension.

Homebuyer Tax Credit Update!

On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

To learn what the new tax credit means to you and your clients, take a look at the concise overview below.

In addition, we’ve put together a script featuring wording you can cut and paste as needed to beat out your competition by connecting with clients who may be able to benefit from the new plan details!

TAX CREDIT OVERVIEW

Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

   What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

• They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
• They do not use the home as your principal residence.
• They sell their home before the end of the year.
• They are a nonresident alien.
• They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.  

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

Make It A Great Day,

Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español

Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089

44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”

Let's Get Connected!

Facebook | Twitter | YouTube | Linkedin

Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update

Posted via email from Sean LaRue's Posterous

ROTH IRA CONVERSIONS FOR 2010 BY MAX BRIGGS

ROTH IRA CONVERSIONS FOR 2010

A unique opportunity for IRA owners.

provided by Max Briggs, CFP^®

 

In 2010, anyone may convert a traditional IRA to a Roth IRA. No income limits will stand in the way of the conversion.¹ Should you do it? Here’s why it may (or may not) make sense for you to go Roth next year.

 Why you might want to consider it. A Roth IRA permits tax-free growth and tax-free income distributions in retirement (assuming you are age 59½ or older and have held your Roth account for 5 years or longer). You can contribute to a Roth IRA after age 70½, without having to take mandatory withdrawals. While contributions to a Roth IRA aren’t tax-deductible, the younger you are, the more attractive a Roth IRA may seem.²

However, older investors have reason to go Roth as well – especially if they don’t really need to withdraw IRA assets. Under present tax law, converting an untapped traditional IRA to a Roth will shrink the size of your taxable estate, and careful estate planning could foster decades of tax-free growth for those IRA assets.³

Currently, if you name your spouse as the beneficiary of your Roth IRA, your spouse can treat the inherited IRA as his or her own after you die and forego withdrawals. So those Roth IRA assets can keep compounding untaxed across the rest of your spouse’s life.

If your spouse then names a son or daughter as a beneficiary, that heir has the choice to make minimum withdrawals according to his or her life expectancy, all while the assets continue to compound tax-free. Currently, withdrawals from an inherited Roth IRA are not subject to income tax.³

Why you may want to think twice about it. The IRS regards a traditional IRA-to-Roth IRA conversion as a distribution from a traditional IRA – a taxable event.⁴ You’ll need to pay taxes on the entire amount of the conversion. Do you have the money to do that?

Keep in mind, however: with the market down, many IRA values are lower than they have been for years. That translates to paying less tax on gains. It is also worth remembering that tax rates could increase in the years ahead – another reason why now may be a good time to convert. (You could simply do a partial Roth IRA conversion if converting the full amount would send you into a higher tax bracket.)⁴

You may be tempted to use the current IRA assets to pay the conversion tax, but should you? If you’re younger than 59½, you’re looking at a 10% penalty on the amount you withdraw, and you’ll lose the chance for tax-free compounding of those assets within the Roth IRA.⁵

A potential tax break for those who convert in 2010. If you do a Roth conversion during 2010, you can choose to divide the taxes on the conversion between your 2011 and 2012 federal returns.⁸

Be sure to consult your tax advisor before you convert. This is a very good idea before you arrange any rollover, trustee-to-trustee transfer, or same-trustee transfer of your IRA assets. In any year, you should fully understand the potential tax impact of a Roth conversion on your finances and your estate. Also, remember that while the income limit on Roth IRA conversions will go away in 2010, the income limits on Roth IRA contributions still apply next year and for the foreseeable future.⁸

 FLC Capital Advisors is a Registered Investment Advisory Firm licensed with the State of California. Securities offered through Securities America, Inc:  Registered Broker/Dealer:  Member FINRA * SIPC *Max Briggs * Registered Representative * CA Insurance License # OB85518 * Danny Neil * Registered Representative * CA Insurance License # 0D54831 * FLC Capital Advisors and Securities America all not affiliated.

These are the views of Peter Montoya Inc., not the named Representative nor Broker/Dealer, and should not be construed as investment advice. Neither the named Representative nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.

Citations.

¹ kiplinger.com/magazine/archives/2009/01/sweet-deal-on-roth-ira-conversion.html             [1/09]

² thestreet.com/print/story/10505164.html     [5/26/09]

³ smartmoney.com/personal-finance/retirement/estate-planning-with-a-roth-ira-7966/         [1/22/09]

⁴ smartmoney.com/personal-finance/retirement/roth-iras-you-wanted-to-know-7967/           [1/9/08]

⁵ smartmoney.com/personal-finance/retirement/roth-iras-to-convert-or-not-7965/ [1/10/08]

⁶ online.wsj.com/article/SB123033785000236433.html   [12/26/08]

⁷ usnews.com/blogs/planning-to-retire/2008/12/23/president-bush-signs-pension-relief-bill.html      [12/23/08]

⁸ kiplinger.com/columns/ask/archive/2009/q0601.htm [6/1/09]

Make It A Great Day,

Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español

Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089

44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”

Let's Get Connected!

Facebook | Twitter | YouTube | Linkedin

Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update

Posted via email from Sean LaRue's Posterous

Bret, Patrick and the Arrangements Sing Sublime!

We have amazing talent at Franklin Loan Center! Click below. Don’t forget to rate, comment, subscribe and share with your friends!

Posted via email from Sean LaRue's Posterous

7 things you shouldn't do on Valentine's Day

Posted by  Catherine Faas to Holy Kaw!

Ah, Valentine’s day. February fourteenth marks that special moment in the year when Hallmark cashes in on our emotions and cupid gets busy shooting arrows. Whether you’re indifferent, excited, upset, or madly in love—there are seven things you just shouldn’t do on this lovey-dovey holiday.

See a few do-not-do’s below:

• Go on a first date. First dates are hard enough, why add the extra pressure?
• Call your ex. Abort mission! On a day like this, it’s normal for your thoughts to drift to the one you used to be with, but you broke up for a reason. So, spare yourself the emotional next-day hangover and skip the reunion.
• Overlook the good things in your life. It’s hard not to get caught up in the tornado of sweet hearts and teddy bears and chocolates—but there are far more important things in life. Make a list to remind yourself of the good things in your life and be thankful for them.

Full story at Divine Caroline.

More on dating.

Photo credit: Fotolia

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Helpful Video Links in Real Estate and Social Media Today!

Dear Realtors, Sellers, Home Buyers, and Investors!

Want to learn more about social media?  If you think you can escape without knowing you’re wrong.  The link below is a playlist of videos I recorded from my social media seminar.  Don’t forget to subscribe, rate, comment and forward the video if you think someone else might find the information valuable. 

http://www.youtube.com/user/SeanLaRueHomeLoans#grid/user/C456235359232774

The second link is an update on mortgage products and financing for USDA, FHA, and VA financing also with eh FHA 90 day flip rule.  Click to view Now!

Part 1

Part 2

Thanks and make it a great week!

Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español

Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089

44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”

Let's Get Connected!

Facebook | Twitter | YouTube | Linkedin

Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update

Posted via email from Sean LaRue's Posterous

Mortgage Minute by Sean

"BOTH OPTIMISTS AND PESSIMISTS CONTRIBUTE TO OUR SOCIETY. THE OPTIMIST INVENTS THE AIRPLANE, AND THE PESSIMIST - THE PARACHUTE." G.B. Stern. And last week's Jobs Report had something for both optimists and pessimists, as the numbers were both good and bad...depending on which survey you looked at, and what numbers you focused on. First, the headline numbers: The Labor Department reported that there were 20,000 jobs lost in January, which was worse than expectations of 15,000 jobs gained. However, the Unemployment Rate came in lower at 9.7%, down from last month's read of 10.0%. But what do these numbers actually tell us? Remember that the numbers in the Jobs Report come from two separate surveys: First, the Business Survey - also called the Establishment Survey or Current Employment Statistics Survey - which surveys about 140,000 businesses and government agencies. It uses something called the "birth/death ratio" to provide an estimate of the number of jobs gained or lost each month. This survey is used to report the headline number of jobs gained or lost. Now there is also the Household Survey, also known as the Current Population Survey, which uses actual phone calls to 50 - 60,000 households to gather its data. This survey is used to report the headline Unemployment Rate. The Business Survey is very susceptible to inaccuracy, particularly during times when the labor market is substantially worsening or improving...and you don't need to look much further than all the revisions to prior reports to see how inaccurate the report seems to be. December's report was revised to 150,000 jobs lost, nearly doubling the original report of 85,000 job losses. Although November showed 60,000 additional gains - wait a minute - October's revisions showed another 100,000 jobs lost. And if that weren't enough, the Business Survey threw in a "Benchmark Revision", which indicated that there were an additional 900,000 jobs lost from March 2008 - March 2009 from what was previously reported! ----------------------- Chart: Non-farm Payroll Change and Revisions So what about the other report, the Household Survey? It gives us the headline Unemployment Rate, which was reported at 9.7%. That's an improvement over last month's reading of 10.0%. But this survey has its own job creation or loss number, just like the Business Survey does. The Household Survey showed that 540,000 jobs were created during January, which is really good news, and explains why the Unemployment Rate declined in the face of the Business Survey showing job losses. There are definitely some glimmers of hope for the job market - but any way you look at it, the bottom line is that continued and significant improvements need to be seen in the labor market before the economy can be considered out of the woods. Another important note for the week - Pending Home Sales for December were up significantly from November's reading, and up a healthy 10.9% over December 2008, as homebuyers take advantage of today's low rates and tax incentives. And speaking of low home loan rates, the Federal Reserve purchased $12 billion in Mortgage Backed Securities last week, bringing the total to $1.173 trillion since the program began in January of 2009...which leaves just $77 billion in purchases to be made over the next eight weeks until the program ends on March 31st. While home loan rates improved very slightly during this volatile week - don't forget that when the Fed is done buying, home loan rates will be very susceptible to moving higher. Please reach out to me to discuss how you or someone you know might benefit from current low rates, or the Homebuyers Tax Credit. The clock is ticking on both these fronts - so why wait? THE NEW MILEAGE RATES ARE HERE! THE NEW MILEAGE RATES ARE HERE! OKAY...NEWS FROM THE IRS ISN'T NECESSARILY ALL THAT EXCITING, BUT YOU DON'T WANT TO MISS OUT ON A SINGLE TAX DEDUCTION YOU MIGHT HAVE COMING. CHECK OUT THIS WEEK'S MORTGAGE MARKET GUIDE VIEW FOR THE DETAILS.

Forecast for the Week We have a quiet week ahead when it comes to economic reports, but whether that's good or bad news remains to be seen. Be sure to look for Thursday's Initial Jobless Claims Report, as last week's numbers came in at 480,000, quite a bit worse than the 455,000 expected and the highest count since mid-December. Last week's Continuing Claims increased slightly to 4.6 million, and remember this...the Continuing Claims number doesn't even account for the nearly 6 million people whose Unemployment benefits have expired, and are now receiving Extended Emergency Unemployment benefits. Also on tap for Thursday is the Retail Sales Report for January. This report is the most-timely indicator of broad consumer spending patterns, and it is important to see in which direction the numbers are moving. And the Treasury will be auctioning $40B in 3-year Notes on Tuesday, $25B in 10-years on Wednesday and $16B in 30-year Bonds on Thursday for a total of $81B. These auctions could move the markets, especially in the face of few scheduled economic reports. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bond prices have been improving of late, but there is tough technical resistance ahead. As always, I'll be watching closely - so give me a call this week if you'd like an update on the market action! Chart: Fannie Mae 4.5%% Mortgage Bond (Feb 05, 2010)

The Mortgage Market View... New Mileage Rates for 2010 If you drive a car, truck or van for work, you'll want to make sure you know the standard mileage rates that the Internal Revenue Service (IRS) has set for 2010. And remember, these mileage rates are not just used to calculate deductible costs for driving an automobile for business, but also for charitable, medical or moving purposes. New for 2010 As of January 1, 2010, the standard mileage rates are as follows: Businesses = 50 cents per mile driven Medical or moving = 16.5 cents per mile driven Charitable organizations = 14 cents per mile driven Note: The 2010 rates are slightly lower than last year's, due to generally lower transportation costs as compared to a year ago. Make Sure You Qualify Before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously. Additional Option Although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you prefer, you can calculate the actual costs of using your vehicle instead of using the standard mileage rates. Best yet - most people find that they save money on taxes by working with a tax professional. Let me know if you need a referral!

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 February 08 - February 12 Date ET Economic Report For Estimate Actual Prior Impact Wed. February 10 08:30 Balance of Trade Dec -$35.0B   -$36.4B Moderate Thu. February 11 08:30 Jobless Claims (Initial) 2/6 NA   480K Moderate Thu. February 11 08:30 Retail Sales Jan 0.4%   -0.3% HIGH Thu. February 11 08:30 Retail Sales ex-auto Jan 0.4%   -0.2% HIGH Fri. February 12 10:00 Consumer Sentiment Index (UoM) Feb 74.8   74.4 Moderate The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. 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, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors. As your trusted advisor, I am sending you the MMG WEEKLY 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: unsubscribe@mmgweekly.com If you prefer to send your removal request by mail the address is: Sean K. La Rue 44-800 Village Ct. Palm Desert, CA 92260 Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Make It A Great Day,

Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español

Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089

44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”

Let's Get Connected!

Facebook | Twitter | YouTube | Linkedin

Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update

Posted via email from Sean LaRue's Posterous