Memorial Day Facts and Economic News

IN THIS ISSUE...

	Turn...turn...turn. In their hit song, The Byrds sang that for everything, there is a season. As we enter May, we're seeing a bit of a turn ourselves as many of us turn our attention towards warm-weather season. But, as you'll read below, not everything is turning out as positive as we'd like. Read on to find out what's going on behind the headlines: Up...Up...and Away? – Is inflation tame or on the rise? The chart below says it all...despite the Fed's comments. What to Watch – Is employment on the mend? Read the article below to see what's going on behind the headlines! Memorial Day – The history behind this holiday may surprise you! Q&A: Good Time? – Is now a good time to buy? Here are some facts to help you make up your mind! If you have any questions or would like to discuss your unique situation, call or email today. And please forward this newsletter to friends, family members and coworkers who may find this information helpful.

Up...Up...and Away?

	Inflation was a big story last month, with reports on both the wholesale and consumer levels. The wholesale-measuring Producer Price Index (PPI) showed that prices remained mostly unchanged during March. Remember, inflation hurts the value of fixed investments like Bonds (including Mortgage Bonds, to which home loan rates are tied)...so the lack of inflation on the wholesale side was good news for Bonds and home loan rates. Last month, we also saw a new reading of the Consumer Price Index (CPI), which was inline with estimates. However, as you can see in the chart, the year-over-year number was slightly higher than the previous reading. While the reading raised eyebrows a bit, the Fed is still reiterating that inflation remains subdued. For example, Fed Chair Bernanke recently noted that inflation is higher in the short-run due to higher energy costs, but he said that the Fed expects prices to moderate and remain in check longer-term. Despite those comments, inflation continues to be an important topic to watch. If the Core CPI continues to rise, Bonds and home loan rates will have a tough time improving much further, regardless of other factors. The economy received some good news last month in terms of consumers. Retail Sales rose by a nice amount, as consumers bought all kinds of products across the board. This adds to the increasing trend seen in January and February, and it's a good sign for our economy, since consumers don't spend when they aren't feeling optimistic about their financial situation. These news stories will continue to impact the direction in which Bonds and home loan rates move in the weeks ahead. The takeaway is that home loan rates remain near historic lows and now continues to be a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you.

What to Watch: Employment on the Mend?

	One of the most widely watched reports each month is the official Jobs Report. Here's a break down of what this report includes and what's going on behind the numbers! What is it? The Jobs Report is a monthly report released by the US Labor Department. It includes the most recent data on non-farm payrolls and the overall unemployment rate, as well as hourly earnings and the average work week. When is it released? The official Jobs Report is released the first Friday of every month. The next report will be released Friday, May 4, 2012. What happened last month? The Jobs Report that was released at the beginning of last month indicated that the unemployment rate declined to 8.2%. While any decline in unemployment is good news, the figure does need to be taken with a grain of salt - especially in light of the significant headline jobs creation miss. The reason why: the Labor Force Participation Rate (LFPR), which removes some of the guesstimating and adjustments of the unemployment rate. That number (currently at a 30-year low) is a concern because if the LFPR continues to decline, it means we are seeing a smaller ratio of people working against the overall population. I'll be watching this report and its impact on the markets closely to see how it may impact home loan rates. If you have any questions, please call or email.

The History of Memorial Day

	Memorial Day will be celebrated at the end of this month...but the history behind this holiday may surprise you! Originally known as Decoration Day, Memorial Day was first widely observed on May 30, 1868 as people honored those who perished in the Civil War by decorating their graves. The celebration in 1868 was inspired by local observances that had occurred on May 30 in the three years after the Civil War ended. By the end of the nineteenth century, many towns across the country started celebrating Memorial Day and after World War I, these observances began honoring soldiers who had perished in all of America's wars. Where is the birthplace of Memorial Day? Though several cities claim to be the birthplace of Memorial Day, including Columbus, Miss.; Macon, Ga.; and Boalsburg, Pa., President Lyndon Johnson declared Waterloo, N.Y. the official birthplace of Memorial Day back in 1966. Waterloo - which had first celebrated the day on May 5, 1866 - was chosen because the town had made Memorial Day a community-wide, annual event. Not only would businesses close, but residents would also decorate the graves of soldiers with flowers and flags. A national holiday In 1971, Congress declared Memorial Day a national holiday to be celebrated the last Monday in May. Today, Memorial Day is celebrated at Arlington National Cemetery, as a small American flag is placed on each grave. The president or vice-president also usually lays a wreath at the Tomb of the Unknown Soldier. Best wishes to you and yours this time of year. And please contact me if I can be of any assistance to you at this time!

Q&A: Good Time?

	QUESTION: Is now a good time to buy? ANSWER: Home loan rates have improved to their best levels in two months, as Mortgage Bonds have moved higher in recent weeks. In addition, a recently released study by Fannie Mae showed that 73% of consumers polled in March said that buying a home today is a good idea. That number was up from 70% in February. Meanwhile the percentage of those who say it's a good time to sell is at 14%, up just slightly. What does that mean? It means it's a buyer's market indeed - and with 44% of respondents saying they expect their own financial situation to improve over the next six months, the purchases may start flowing sooner rather than later. In addition, 37% said that they expect home prices will increase - which is another good reason that now is a good time to be in the market for a home. If you have any questions that I can help with at this time, please call or email today. It will only take a few moments to discuss what's going in the markets and how it impacts your unique goals and situation.

	The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors. As your Trusted Advisor, I always want to make sure you are clear on all details of the home financing process. If you or someone you know are interested in purchasing or refinancing a home, give me a call today! 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 the recipient or distributor 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 except as otherwise provided in our Terms and Conditions of Membership, for any purpose.