Archive for September, 2012

This is an extraordinarily busy time for everyone. In the midst of all that is going on, remember to count your blessings!

September 24th, 2012

With the prospect of a hard freeze looming, we gathered in everything we could this past weekend.  It was a lot of work. Yet, the applesauce is now canned, the grapes have been turned into grape jam, and the last of the cucumbers are pickled. We’ve got a basement storeroom filled with Butternut squash, onions, potatoes and pumpkins and our freezer is full of strawberries and raspberries, apple pies, and asparagus.  We got lucky.  Every drop of rain that was predicted actually fell at our place.  We also got the sun. While many lost their crops this year due to drought and weather, everything lined up just perfect for us to have a bumper crop of everything.  When I scald myself with hot water from the canner, or my feet hurt from standing at the sink for 12 hours peeling and prepping, I have to remind myself to count my blessings for the bounty. 

According to Rob Chrisman of the Stratmor Group, “The time needed to close a mortgage loan has increased by almost 25 percent over last year, from an average of 40 days to 49 and it was refinances that drove the change.  According to the Ellie Mae Origination Insight Report for August released this morning, the time needed to close a loan for a purchase has increased from 43 days in August of 2011 to 47 days in August 2012 while during the same period the average time required to close a refinancing increased by two full weeks to 51 days.”  (Ellie Mae’s data covers approximately 20 percent of all US mortgage originations.)

Angst is Optional Read the rest of this entry »

Breakfast conversation at our house this morning was anything but normal

September 17th, 2012

Ben Bernanke and the FOMC (Federal Open Market Committee) announced yesterday that they were going to buy up $40Billion in mortgage backed securities monthly ‘for the duration’…no expiration date tied to this announcement.  The result was that mortgage backed securities shot up 104 basis points, driving mortgage rates down yet again.  “Fed moves again to stimulate recovery” was the headline of the StarTribune this morning.  The stock market loved the news and jumped over 200 points. Why?  It’s a $40B a month gamble that jump starting the housing market will ignite our stagnant economy and that will make it possible to pay it all back.

The real impact on rates today was negligible.  We perhaps wrangled a .125% improvement.

Why?  A number of reasons. Read the rest of this entry »