another mortgage rate update

Economic reports this morning indicate that the economy is weaker than expected. The biggest surprise is a large drop in industrial production, although the Consumer Price Index also helped lessen inflation concerns.

It is fairly encouraging to me that the markets have stabilized enough that the economic reports are impacting market swings. Up until the last few days it did not matter what the economy was doing - investors were pulling out of the stock and the bond markets.

The Daily Rate Advisory is making a lock recommendation recommendation if you are closing in 7 days, but a float recommendation for loans closing later than 7 days.

The thinking is that rates will not significantly change in the next week, but for longer times the economy is expected to show continued weakness.

Visit my website http://www.richardsmithhomeloans.com/ My other blog http://www.richardsrealestatethoughts.com/ and Local Hamilton County C ell 423-280-0345 Email rsmith@aamonline.com Please join me on LinkedIn, Facebook, and Twitter

Home rates finally show a break

It has been almost two weeks since the mortgage bailout plan was signed into law. The initial bond market was extremely positive once the initial details came out. The market response since then has not been good.

The stock market and the bond market showed consistent drops over several days. This was duplicated in the global markets. So much so that the Treasury held emergency forced meeting with major US bankers to announce a change of focus for the bailout from purchasing defaulted mortgages to purchasing equity in banks.

The hope is to encourage an unfreezing of the credit markets by a massive infusion of capital directly to the banks.This is a more direct recapitalization approach that removing bad mortgages from the bank balance sheets.

The stock markets responded quickly with a tremendous rebound, only to lose the gains because of economic reports that reveal a declining economy.

Bond markets had for the most part continued to decline, not attracting investors. Even the economic reports showing a low threat of inflation did not draw investors to bonds.

Until this afternoon, there was finally some new investment into the bond markets.

Hopefully, this will stabilize the mortgage interest rates and help draw them back down after their steady rise over the last several days.

Visit my website http://www.richardsmithhomeloans.com/ My other blog http://www.richardsrealestatethoughts.com/ and Local Hamilton County C ell 423-280-0345 Email rsmith@aamonline.com Please join me on LinkedIn, Facebook, and Twitter

Publix opens in Hixson

The grand opening of the new Publix was held Wednesday. Despite the strong rain and the early morning time (6:45am) the turnout was strong. This is the second major grocery chain opening in Hixson in the last couple months.

The Times Free Press ran an article Wednesday describing the growing competition among grocers in Hixson.

The Chattanoogan article on the opening focused on the opening of the Creek Plantation Village . This is a 78,490 sqare foot neighborhood shopping center, managed by Watkins Retail Group.

It is part of the growth that is being experienced in our Hixson area.

Visit my website www.RichardSmithHomeLoans.com My other blog www.RichardsRealEstateThoughts.com and Local Hamilton County C ell 423-280-0345 Email rsmith@aamonline.com Please join me on LinkedIn, Facebook, and Twitter

Alhambra Shrine Circus

The Alambra Shrine circus is this week, October 9-12. The circus is a well known and well attended event in Chattanooga. The circus is held at Camp Jordan

Show times are
2008 Performances
Thursday, Oct. 9th, 7:00pm
Friday, Oct. 10th, 7:30pm
Saturday, Oct. 11th, 1:00pm, 4:00pm, 7:30pm
Sunday, Oct. 12th, 1:00pm, 4:30pm

Ticket information:

For Ticket Information Call The Alhambra Shrine: 423-892-0223
http://www.alhambrashrine.com/

Visit my website www.RichardSmithHomeLoans.com My other blog www.RichardsRealEstateThoughts.com and Local Hamilton County C ell 423-280-0345 Email rsmith@aamonline.com Please join me on LinkedIn, Facebook, and Twitter

Red Bank Lions

The Red Bank Lions Club expects to get their pecans for the annual Christmas sales by November 15. The pecans and Christmas tree sales are a tradition in Red Bank. Many schools and other organizations help with the pecan sales. The proceeds are used to support the Kids Sight program.

The Lions also make a donation to the organizations that help sell the pecans. Last year over $2800 was given to participating schools and other programs.

If you are interested in joining the Red Bank Lions, please call. It is a fun and active group. Men and women are welcome.

Visit my website http://www.richardsmithhomeloans.com/ My other blog http://www.richardsrealestatethoughts.com/ and Local Hamilton County C ell 423-280-0345 Email rsmith@aamonline.com Please join me on LinkedIn, Facebook, and Twitter

Three Sisters Music Festival

My wife and I spent the afternoon at the Three Sisters Music Festival at Ross' Landing today. We saw the Dismembered Tennesseans and Chattam County Line. Excellent shows. Chatham County Line was a new group for me, but they had a following in the audience. Several people called out some requests.

Excellent vocals and harmonies.

the weather was perfect, and we saw several friends there.

Congratulations Downtown Partnership and Fletcher Bright, an event sponsor.

Visit my website http://www.richardsmithhomeloans.com/ My other blog http://www.richardsrealestatethoughts.com/ and Local Hamilton County C ell 423-280-0345 Email rsmith@aamonline.com Please join me on LinkedIn, Facebook, and Twitter

Bailout bill and pork

If the $700 billion bailout is such a good idea, why was it necessary to add so much to sweeten it before the bill could be passed?

And if the $700 billion bailout is such a bad idea, why was it passed on the basis of the unrelated addons that total another $110 billion?

I am generally in favor of the bailout, with provisions for pricing the purchases in line with market value, with provisions for oversight and review,and with more detail procedures for modifying defaulted mortgages (which mortgages, what qualifications, what terms).

There is more detail in the pork addons than there is in the $700 billion bailout portion.

Finally, there is no provision to stabilize the tightening credit markets, other than hope the promise of $700 billion for bad mortgage securities will restore banker confidence in extending credit to consumers and to other banks.

We need to ask Representative Wamp why he changed his vote on the bailout from NO to YES, after the bill was changed to add other legislation. What made the loaded bill better than the streamlined version?

We need to ask Senators Alexander and Corker why they voted YES with a bill so short on details on the spending of $700 billion and so long on details about the extra spending.

TENNESSEE Representatives

Democrats — Cohen, Y; Cooper, Y; Davis, Lincoln, N; Gordon, Y; Tanner, Y.

Republicans — Blackburn, N; Davis, David, N; Duncan, N; Wamp, Y.

Here is a link to my post on the bailout addons , from www.RichardsRealEstateThoughs.com.

Here is link to a Rismedia story summarizing some of non related addons. The article is entitled "How Sweet It Is? ".

Here is the bill - 450 pages. Did they read it? Did they know what was included when they voted?

There is nothing in the bill to encourage new home buyers. They ignored reinstating seller funded down payment assistance (HR 6694), which would qualify more home buyers and go a long way to helping restore the housing market. With so much in unrelated additions, one might think that a related bill could have been added, especially one that costs the taxpayers nothing.

Visit my website http://www.richardsmithhomeloans.com/ My other blog http://www.richardsrealestatethoughts.com/ and Local Hamilton County C ell 423-280-0345 Email rsmith@aamonline.com Please join me on LinkedIn, Facebook, and Twitter