Fed Leaves Rates Unchanged

With no surprise the Fed did not move to raise the Fed Funds & Discount Rates. They provided rhetoric that inflation remains a concern, there was on descending vote in favor of raising rates. This means we will most likely continue to see a rise in energy and food prices.

Initially mortgage-backed securities were trading lower, meaning higher remortgage rates; hover within forty-five minutes of the announcement rates have gained back their losses and should be unchanged. The volatility continues.

Paul Cantor, (804) 433-1510

Reducing Debt

There is no quick fix to debt reduction; this requires careful planning and implementation. CMPS professionals help you implement these three proven steps to help you achieve financial freedom and become debt-free:

Develop a Debt Reduction Plan of Action:

The best way to approach debt reduction is by re-examining your spending habits and the way your monthly cash flow works. This doesn't necessarily mean that you need to spend less or earn more. It just means that you need to spend your monthly cash flow differently. You see, most people who want to become debt-free, can become debt free if they just manage their cash flow differently.

For example, instead of being forced to dip into your credit cards every time you have an unexpected bill, you should establish a financial reserve account specifically to prepare yourself for unexpected financial obligations. CMPS professionals help you establish a viable plan to re-allocate your monthly cash flow and change your spending habits. This cash flow plan will result in your being financially able to pay cash for everything such as home improvements, cars, furniture, vacations, children's education and other living expenses.

Implement the Plan of Action:

There is a reason that professional athletes have coaches. No matter how good the athlete is, the coach can help keep them accountable in identifying weak spots and improving their performance. You can also benefit by having a team of "financial coaches". CMPS professionals are able to "coach" you in implementing your debt reduction plan. CMPS professionals also work in a team environment with CPAs, CFPs, attorneys and other financial professionals in order to help you better achieve your goals in life.

Review and Modify the Plan of Action:

We all experience changes in our lives that involve our income, career, family, health, lifestyle, etc. CMPS professionals help you review and make modifications to your debt reduction plan as changes arise in your personal and financial situation. Additionally, there may be new types of mortgage planning products and services that could help you enhance your debt reduction plan. The plan review and modification is often referred to as an "Equity Management Review", or an
"Annual Mortgage Review."

If you would lile to conduct an Annual Mortgage Review, contact Paul Cantor at TrustMor Mortgage, call (804) 433-1510 or at www.PaulCantor.com

Weekly Mortgage Rate Commentary For week of June 15, 2008

Inflation fears kicked in last week, driving long-term mortgage rates up significantly. While the core reading of the Consumer Price Index came in at expectations, the headline number rose a stout 0.6%. Additionally, retail sales bounced up 1.0%, almost twice the rate of increase that had been anticipated. While the increase in retail sales certainly bodes well for the economy as a whole, it does increase the likelihood that prices in the economy will see more upward pressure. With inflation already running at the higher end of most economists' comfort range, anything that pushes inflationary pressures higher will likely result in higher mortgage rates, especially longer-term notes.

Next week, the Producer Price Index is due. If we see another higher-than-expected reading in either the headline or core numbers, we'll certainly see mortgage rates continuing to climb. If the readings come in lower-than-expected, we may see mortgage rates back off just a little bit. However, if Industrial Production readings spike, we'll see rates continuing to trend upward for a while.

Mortgage Rate Commentary Week of June 8, 2008

Long-term mortgage rates continued to experience some minor upward pressure last week, while short-term rates dipped a bit. The biggest news of the week was not as big as it could have been. The Labor Department reported that the unemployment rate rose to 5.5% - a jump of 0.5%. While an increase of this scale has not been reported in 33 years, the data came with a note of caution. There has been a large influx of entry-level workers, teens, and college graduates hitting the market. This may have caused some statistic "noise" that skewed the rate. On a more positive note, the economy lost only 49K jobs when 70K or more were expected to have been lost.

With no clear-cut signs of economic momentum one way or the other, we continue to be more concerned with inflationary pressures in the marketplace. At the end of the week, the Consumer Price Index is released. If we get another surprise drop in the core reading, we could see mortgage rates staying flat. However, a higher-than-expected reading would drive mortgage rates upward.

Real Estate Strategy - The Time To Plan Is Now!

Unless you've been living in a cave on a deserted island, you've seen the news and commentary about falling home prices. There is no doubt that the housing market has suffered over the last few years, and may continue to suffer for some time. It has been a rude awakening for most of us to see that housing prices can fluctuate like any other item that can be bought and sold. While most of the media attention of late has focused on the downside of the market, many experts are quietly pointing out that the market will turn. Some believe we may be getting close to that point. Whether discussing income to housing expense ratios, rental income versus mort­gage expenses, or other measures, we will hit a point where the housing market returns to a healthier state. If you have ever thought about real estate investing, or are considering some type of future real estate transac­tion, a down market is a great time to plan. One of the biggest mistakes people can make regarding real estate is to fall in love with a property, for themselves or for an investment, and then find a strategy to go with the home. We have a tendency to look at real estate as a transaction rather than viewing it as an investment strat­egy. The wiser approach is more strategic and has little to do with the individual property. Sitting down and honestly evaluating your financial situation is paramount in the process of buying. For investors, the first step is deciding which type of strategy to execute, from renting to flipping to rehabbing. Developing budgets, exit strategies, and building your team should be next. House hunting starts after the plan is in place.

If you or anyone you know is interested in developing a strategy for real estate investing, or planning for a future change in resi­dence, please seek the advise of an expert mortgage planner to assist in putting a plan in place that maximizes the probability of financial success.

Paul Cantor is a mortgage planner in the Richmond Virginia area. He may be reached at (804) 433-1510 or at www.PaulCantor.com .

Mortgage Rate Commentary, Week of June 1, 2008

While the economy is not looking all that much better, last week's economic news was enough to nudge mortgage rates upward. GDP came in as anticipated at 0.9%. While this number is well below what most economists would call "healthy," it was enough to cause many traders to begin unwinding recession-leaning positions. With another quarter's GDP above zero, the probability of recession becomes even less likely. While this is good economic news, the downside is that any acceleration in the economy is likely to lead to increased inflationary pressure and mortgage rates may creep upward. However, we are not out of the woods yet, and no clear economic direction is set.

This week has two very important economic reports. The week starts with the ISM Manufacturing Index. If this index ticks unexpectedly above 50.0, rates are sure to begin climbing. The week ends with monthly employment data. If the unemployment rate goes up to 5.1% or higher, and more than 45K jobs are lost, we could see mortgage rates flatten, or even slip, slightly as next week begins.