Views You Can Use - July Edition

IN THIS ISSUE...

	The Summer To Be! The English poet William Ernest Henley once wrote: "Here is a promise of summer to be." As we head into the full swing of summer, the articles below can help shed light on where the economy is now...and where it may be in the near future. Read on for details about what it all means to you! Home Prices Increase – Home prices weren't the only thing that rose last month...find out what happened and what it means! What to Watch – Will Retail Sales rise? Here's what you need to know and watch. Fun Facts – Do you know the answers to these fun facts about America? Q&A: What to Do? – Heading out of town this summer? Make sure you take this step first. Enjoy the articles below and have a very happy July. Remember, 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.

Home Prices Increase...And So Do the Chances of QE3

	Although the economy as a whole has seen some signs of slowing, the housing market saw signs of a slight rise last month. According to the most recent release of the Case-Shiller Home Price Index, home prices increased in April from March. In fact, as you can see in the chart, 19 of the 20 cities in the index showed gains...and on average, prices increased 1.3%. Before we get too excited, however, we should bear in mind that year-over-year prices remain down 1.9%. But the trend is moving in the right direction. After all, the April number was up from the March year-over-year prices, which were down 2.9%. That suggests that the price declines are also slowing. In other good housing news, last month's report on Pending Home Sales indicated a rise of 5.9% in May. To put it in perspective, that number was well above the 0.5% that was expected...not to mention leaps and bounds above the previous month's reading of -5.5%. Still, change doesn't happen overnight, and the housing market is still going through pain, as evidenced last month by the Fed saying: "Despite some signs of improvement, the housing sector remains depressed." Speaking of the Fed, here are some comments that Chicago Fed President Charles Evans made late last month: "I think if you look at our projections and the SEPs, it's hard to understand why we (The Fed) wouldn't be willing to do more because the inflation outlook is lower than our objective..." "At some point, we are likely to need to do more..." "We should be doing more accommodation than what was adopted under the Twist..." "Right off the bat, I'd be willing to do more on the basis of the current data..." "I'd be willing to support more asset purchases, MBS, in order to provide more accommodation..." How many times can a person refer to more stimulus in one interview? As those quotes indicate, the probability of a third round of Quantitative Easing (or QE3) continues to rise...especially when you consider the recent economic weakness in the US and uncertainty out of Europe. But if QE3 is officially announced--which could very well happen at the next Fed Meeting announcement on August 1st--it may pressure Bonds lower much like past official announcements. That's because more money printing "devalues" the US Dollar and denominated securities like US Bonds. Now continues to be a great time to purchase or refinance a home, and home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or someone you know.

What to Watch: Will Retail Sales Rise?

	Economic reports have shown signs of weakness as of late. This month, we look at one report in particular that has not been good. It's called the Retail Sales Report, and it's released each month by the US Bureau of the Census. Why does it matter? Retail sales is the first picture of consumer spending that we get each month. That makes it the most timely indicator of broad consumer spending patterns. When Retail Sales growth stalls or slows, it means consumers are not spending at previous levels--which can move the markets due to the large role that retail sales play in the health of the economy. What does it measure? The retail sales report is a measure of the total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. Retail sales include: Durable merchandise sold Nondurable merchandise sold Services related to the sale of merchandise Excise taxes incidental to the sale of merchandise The report does NOT include sales taxes collected directly from the customer. It also does not include spending for services, even though such spending is a large component of consumer expenditures. What's happened recently? The Retail Sales report that was released in June indicated that sales in May dropped .2%. That marks the second consecutive month of declining sales. The April report had initially been reported as an increase, but was revised to also reflect a decline of .2%. That means the last two months have not been good. What should you watch? Retail sales data can be volatile from month to month. So despite the recent dips, the markets will be watching closely to see if the report due out this month will move in a positive direction...or if revisions to the previous releases will throw a curve. When will it be released? Monday, July 16, 2012 at 8:30 AM (ET). I'll continue to monitor Retail Sales and all the other major economic reports to see how they impact the markets and home loan rates. If you have any questions, please call or email.

Fun Facts About Celebrating America

	Since we're celebrating the founding of the United States this month, it's an ideal time to reflect on some fun facts from the US Bureau of the Census. America Then and Now--The number of people living in the newly created United States back in July 1776 totaled 2.5 Million people. This 4th of July, the number of people living in the US is estimated at 313.9 Million. Flags Unfurled--Did you know that $3.6 Million worth of American flags was imported in 2011? Perhaps more surprising is that $663,071 worth of American flags was exported, with Mexico being the leading customer of those flags. Rockets' Red Glare-- More than $230 Million worth of fireworks and pyrotechnics are shipped by US manufacturers each year. Lady Liberty-- More than 31 places have the word "Liberty" in their names; the most populous is Liberty, Missouri with nearly 30,000 people. Patriot-ism-- Unlike the word "Liberty," the word "Patriot" is rare in town or city names. In fact, according to the Census Bureau, there's only one place with the word "Patriot" in its name, and that's Patriot, Indiana, with 209 residents. Best wishes to you on this special time of summer. And please contact me if I can be of any help.

Q&A: What To Do With Your Mail?

	QUESTION: What should you do with your mail when you're out of town? ANSWER: Whether you're on vacation or at an unexpected business trip, you can rest easy knowing your mail is safe and sound by asking the Post Office to suspend delivery while you're gone. They'll hold your mail from 3 to 30 days, and then resume normal delivery on the date you specify. It's convenient, easy to do, and most of all SAFE! To notify the Post Office to hold your mail simply fill out the online form: https://dunsapp.usps.gov/HoldMail.jsp. If your area isn't served online, simply call 1 800 ASK USPS (1 800 275 8777) and a representative can assist you. Then, have the time of your life...without worrying about your mail while you're gone.

	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.