iRaleighRealEstate Blog

A very important week is in store, with two important announcements due toward the end of the week. As you know, the “mark-to-market” accounting issue has been discussed in this newsletter many times, and this Thursday should be a big day on that front. The Financial Accounting Standards Board (FASB) is set to announce their ruling on whether to modify mark-to-market, and perhaps allow cash flow analysis to determine valuation of financial assets. Not a coincidence, the strength we have seen in Stocks over the past couple of weeks has been fueled by speculation that mark-to-market will be modified, thereby helping reinvigorate the financial system of our country. I will be watching very closely to see what happens and how the markets respond.

On Friday, the Labor Department will release their Jobs Report for March. Last month’s report showed that 651,000 US jobs were lost in February, while revisions for the prior two months showed that an additional 161,000 jobs were lost between December and January. Given that last week’s Initial Jobless Claims report showed that the number of people collecting state unemployment benefits has reached a record high – jumping to a seasonally adjusted 5.56 Million – it will be important to see what Friday’s report reveals.

As you can see in the chart below, Bonds are currently trading between key technical levels, with a ceiling of resistance overhead, and a floor of support underfoot. But remember: Strong economic news – such as a positive change in the “mark-to-market” situation – will likely cause Stocks to rally, and Bonds and home loan rates may worsen in response.

Call the Freeman/Davis Home Team at 919-649-6638 and let us put you in contact with our premiere Lending Manager, Beth Prochaska.  Together, we can find you the home of your dreams at financing terms that you will find favorable now and in the many years to come.  Let us be your “Trusted Advisors” in real estate and mortgage finances.  Visit us online at www.HomeSearchRALEIGH.com and www.FreemanDavisHomeTeam.com.  You can comment on our blogs anytime and we would love to hear what you have to say at www.iRaleighBlog.com and www.HomeSearchRaleighBlog.com.

All eyes are on Wall Street and Washington today after a deal to pass a Wall Street rescue plan fell apart yesterday.  While Washington is failing to come to an agreement, yet another bank has gone in flame – the largest ever. Washington Mutual fell under the weight of bad debts, but was quickly scooped up by J.P. Morgan.

A new poll shows 78 percent of Americans want Congress to pass a rescue plan, but 56 percent want a plan that’s different from what the Bush administration is proposing. And 40 percent say this is the biggest financial crisis of their lifetime. 

According to Dave Ramsey, a financial radio talk show host, got on one of his rants here recently and has a rather unique approach to solving the problem WITHOUT a $700 Billion price tag.

Listen to Dave Ramsey’s rant HERE!  And what do you think!  Comment here.

For real estate advice, obviously you need a trusted advisor.  You can rely on the Freeman/Davis Team to give you the kind of advice that your grandmother would, “only we keep our teeth in!”  And yes, the “grandmother and teeth” line was direct from Dave Ramsey but it’s the kind of advice we offer.  We’re not afraid to tell you that buying a home with no money down is a bad idea or that you should wait another six months or a year (or more) before seriously considering buying a home. 

Visit us on any of our websites…

• www.HomeSearchRALEIGH.com,
• www.iRaleighRealEstate.com, 
• www.FreemanDavisHomeTeam.com
• www.HomeSearchRELOCATION.com 

There’s more to blogging too at www.HomeSearchRaleighBlog.com.