I am very fortunate to be in a position where I get to spend a considerable amount of good, quality time with my lovely bride and with the little monsters that I call my children. It wasn’t always that way of course, but now that I can spend the time with them I am really thankful and I appreciate all of the joys of having a strong family unit.

For far too many years I spent my time either behind the windshield driving to or from work, or behind my desk doing what I can to make my employer healthy wealthy and — er, not wise, but perhaps more effective. I was never home much, especially not enough to build and foster a meaningful relationship with my better half nor with my kids.  It took some proverbial slaps in the face and some serious soul searching to realize that I missed my family and I barley even knew them — nor they me. I realized that I did not want my children thinking that that way of life was how it was supposed to be. We had money to spare, but not much time. We really where, in many ways, strangers… It was time to make a serious change.

Sooo, the light of my life I call my bride and I talked (and talked and talked and talked …) and decided to pack up the bags, the pets — even the kids, call it quits at the job and move to Colorado Springs. We had no real plans, no contacts and no idea what we where going to do once we got here – but if we didn’t just pull the trigger right then, we may never. And never making a change, never leaving the rut, never taking that chance would mean that nothing would change — and we needed something to change.

It’s been three years now and it was the best thing we have ever done. Not a day goes by that I don’t slap myself on the back for coming up with such a fine idea   joke of course, it was all my wife’s idea.

Anyway, it’s times like this, holidays seem to bring it out more the average day, that I think about how lucky I am to have a family that I love and that supports me in whatever I do (even when I uproot them, they are a bit crazy I guess). And that I have learned how to make time to spend with them. We made the decision to slow down our life, make family a priority and not worry so much about the things that in the end, don’t really matter anyway.

Soo, I just wanted wish everybody happy holidays. I hope that you are enjoying the ones you love and that love you. Here’s to taking chances and to brighter futures!

Cheer. Brian Olsen

Here is a summary of the changes:

First-time buyers who have not had interest in a principal residence for three years are still eligible, and the maximum amount remains the same; $8000 for married couples, $4000 for those filing separately.

Current homeowners who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years are also eligible. However, the maximum amount for those homeowners is lower; $6500 for married couples and $3200 for those filing separately.

The tax credit may not be used to purchase a home for more than $800,000. All buyers who want to get the credit must include documentation of the purchase on their tax returns.

The income limits for both tax credits have been raised to $125,000 for single buyers and $225,000 for married couples.

Thats it in general terms – and in a nutshell. If you have specific questions, please contact me.

Cheers
Brian

Tomorrow morning brings us the first revision to the 3rd Quarter Gross Domestic Product (GDP). The GDP revision is expected to show a downward revision from last month’s preliminary reading of a 3.5% annual rate of expansion. Current forecasts call for a reading of approximately 2.9%, meaning that there was less economic growth during the third quarter than previously thought. This would be good news for the bond market and mortgage rates, but it will likely take a smaller than expected reading for this report to improve mortgage rates.

November’s Consumer Confidence Index (CCI) will also be released tomorrow morning, but during late morning trading. It gives us a measurement of consumer willingness to spend. If consumer confidence is rising, analysts believe that consumers are more apt to make larger purchases, essentially fueling economic growth. This raises inflation concerns and usually pushes mortgage rates higher. Analysts are expecting to see little change from last month’s 47.7 reading, meaning consumer were just as concerned about their own financial situations as they were last mo nth. A weaker than expected reading should be good news for mortgage rates, but a stronger than expected reading could push mortgage rates higher tomorrow.

Also worth noting about tomorrow is the release of the minutes from the last FOMC meeting and the 5-year Treasury Note auction. Both are afternoon events and both have the potential to heavily influence the bond market or be a non-factor. The results of auction will be posted at 1:00 PM ET. If there was a strong demand from investors, we could see bond prices rise and mortgage rates fall during afternoon hours. But a lackluster interest in the sale could lead to higher mortgage pricing.

The FOMC minutes may be a major mover of the markets or a non-factor, depending on what they say. The key will be concerns over inflation and the Fed’s next move. If the Fed members were concerned about inflationary pressures and overly optimistic about economic growth, we may see the bond market move lower and mortgage rates higher tomorrow afternoon. However, if they indicate a likelihood of another rate cut in the coming months, we should see the bond market rise and mortgage rates drop during afternoon trading.

Overall, I believe that it is going to be an active week for the mortgage market, particularly the first half. Friday will be the least important day of the week and either tomorrow or Wednesday will be the most important. I expect to see plenty of movement in rates the first couple of days, possibly afternoon revisions also, so please be careful and maintain contact with your mortgage professional if you have not locked an interest rate yet.

If I were considering financing/refinancing a home, I would…. Lock if my closing was taking place within 7 days… Float if my closing was taking place between 8 and 20 days… Float if my closing was taking place between 21 and 60 days… Float if my closing was taking place over 60 days from now… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Brian Olsen

The stock markets appear prepared to close the week in negative ground. This should be good news for bonds heading into next week. Since there is no relevant data scheduled for release today, any changes to mortgage rates this afternoon will likely come from sizable move in stocks. If the major stock indexes continue to move lower, there is a possibility of seeing downward revisions to mortgage rates this afternoon.

There are a couple of important reports scheduled for release next week. There is relevant data being posted Monday when the National Association of Realtors gives us October’s home resale figures. It is expected to show an increase in sales from September’s level, meaning the housing sector improved over the past month. However, this data is not considered to be highly important, so it will likely take a sizable variance from forecasts to cause a noticeable move in mortgage rates.

Next week is a holiday-shortened week due to Thanksgiving Day, meaning all of the week’s data will likely be released the first three days of the week. Look for more details on next week’s events in Sunday’s weekly preview.

If I were considering financing/refinancing a home, I would…. Lock if my closing was taking place within 7 days… Lock if my closing was taking place between 8 and 20 days… Float if my closing was taking place between 21 and 60 days… Float if my closing was taking place over 60 days from now… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers… so take it with a grain of salt.

Brian Olsen

www.explorecoloradohomes.com

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