… Continue

Despite the slide in the stock market, long-term rates held high (3.65% 10-year T-note, 5.125% mortgages), propped by the Fed’s insistence that that the economy is “strengthening,” and an adjustment-bloated, 5.7% surge in 4th Quarter GDP.

News of some stability in home prices was offset by big drops in December sales: existing-home sales collapsed 16.7%, the worst ever measured, and new homes fell 7.6%. Apologists pointed to weather and to the expiring home-purchase tax credit; others noted tha… Continue

A 5.2% decline over three days (Wednesday, Thursday and Friday of last week) should make us sit up and pay attention, should it not?

Or is it just another passing moment—longer than most recent spikes and plunges—in the parade of economic uncertainty?

Actually, it could be both…since uncertainty breeds declines. And right now, it appears that no one has any justifiable certainty about where the markets might be headed. We are all sailing in uncharted waters.

If we see the Dow Jones Industrial… Continue

Hello Friends,

Well I will start with the good news on this "fine" Friday. As the stock market continues to get pounded with bad employment numbers and ugly 4th quarter losses, money has poured back into mortgage bonds, causing rates to drop below that coveted 5% mark on a 30-yr fixed. I think it will be short lived with the pressures of a global economy but we should enjoy this dip in rates for weeks to come.

Also, HUD has suspended the recent requirement of a home to be purchased with FHA fi… Continue

By Jessica L. Anderson, Associate Editor of Kiplinger's Personal Finance magazine.

JANUARY

1 - Parents of college-bound high school seniors: Fill out Free Application for Federal Student Aid (FAFSA).
4 - First trading day of 2010.
7 - Set financial goals, update your budget and resolve to pay off holiday debt (see "Four Ways to Trim Your Spending").
8 - Convert traditional IRA to a Roth; income limits for conversions are gone.
15 - Estimated federal taxes for the fourth quarter of 2009 are due… Continue