Weekly Market Forecast

Week of: Monday, July 09, 2007

Present Market Conditions
The Labor Department reported on Friday the U.S. economy continued to add jobs at an appreciable pace in June. The report suggested the economy is doing well, with employment gains widespread across industries and specifically strong hiring in health care and government. Both April and May’s employment gains were revised considerably higher, suggesting labor market conditions remain very supportive of economic activity to this point in the year. The unemployment rate remained a low 4.5 percent and workers saw solid gains in their wages.

Expectations
As reported by Brian Blackstone of the Dow Jones Newswires, “The jobs data also suggest the Fed’s steady interest-rate stance – which hit the one-year mark last week – will extend at least until the end of 2007, if not longer. And the payroll figures appear to confirm the Fed’s view that economic conditions have brightened while inflation remains the primary risk.”

Guidance
It has been said that as long as consumers are working, they’ll keep spending. With long-term mortgage rates moving lower for the third consecutive week and an abundance of both homes and incentives to purchase these homes available, this is absolutely the time to be in the buyers market. Consulting with Georgie will ensure every real estate transaction meets your financial needs.

Authored by Georgie Cook
Traverse Mortgage Corporation
(231) 947-9700
(800) 968-3680
georgie@traversemortgage.com

Debt to Income Ratios?

Presenting words of truth written by a Traverse City area mortgage guru, Guy Cole of Countrywide Home Loans.

You’re meeting with your lender. All of a sudden terminology is being thrown at you left and right. Closing costs, pre-paids, down payment, assets, liabilities, income to debt ratios. You were ok up to the last one. Ratios? Now we are back in math? Lenders determine how much you’re loan amount can be based on how much you make and how much you owe, commonly called debt to income ratio’s. Example: Gross monthly income is $5,000.00 per month; therefore your housing cost should not exceed 31% or $1,550.00 including property taxes and home owners insurance. Your total debt should not be more than 42% of your income or $2,100.00. This is where you need to establish your own budget based on total expenses per month to insure you’re comfortable with the total payment that you’re being quoted. Things have a tendency to get a little scary when you’ve paid all of your monthly expenses only to discover you need to go grocery shopping and guess what? All of the money is now gone. Have fun looking for your home, the team at International Realty Plus is a great place to start.

Authored by Guy Cole
Countrywide Home Loans
(231) 941-5767 ext. 226


CMD 1261 – Traverse City, Mi