Home Buyers and Those Refinancing

Very Good News for the Home Buyers and Those Refinancing

As many of you have heard Mortgage rates took a sharp drop. The $800 billion infusion of federal funds into credit markets had an immediate impact on mortgage rates. Mortgage rates fell sharply last Tuesday after the administration announced that it will pump another $800 billion into credit markets to free up frozen consumer and mortgage lending. That number dwarfed previous government actions aimed at bolstering the mortgage lending market. "The feds agreed to spend a half a trillion dollars to buy up mortgage backed securities and another $100 billion to fund lending for Fannie and Freddie; we're not talking chump change anymore," said Keith Gumbinger of HSH Associates, a publisher of mortgage information. Rates averaged 5.77% for the day on a 30-year, fixed rate loan, down from 6.06% Monday, according to Gumbinger. They fell as far as 0.75 percentage points during the day, according to Orawin Velz, Associate Vice President for Economic Forecasting at the Mortgage Bankers Association. That could save a typical homebuyer more than $90 a month on a $200,000 mortgage. "The government action was geared to bringing mortgage rates down," said Velz, "and it did." The drop was the largest since early September, when the administration announced that it was taking control of mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), and stemmed from similar market sentiment.

Early data shows strong Black Friday

Preliminary sales figures show stronger-than-expected Black Friday; sales up 3 percent. The nation's retailers got a much-needed sales boost during Black Friday's traditional shopathon as consumers spent more money than they did last year. According to preliminary data released Saturday, sales on the day after Thanksgiving rose to $10.61 billion. That's up almost 3 percent from last year's sales of $10.3 billion. The preliminary figures are from ShopperTrak RCT Corp., a Chicago-based research firm that tracks sales at more than 50,000 retail outlets. While it isn't a predictor of overall holiday season sales, the day after Thanksgiving has become an important barometer of people's willingness to spend during the holidays. Last year, the so-called Black Friday was the biggest generator of the season.

Holiday Home Safety

Toy Safety Select toys to suit the age, abilities, skills and interest level of the intended child. Toys too advanced may pose safety hazards for younger children. Before buying a toy or allowing your child to play with a toy that he has received as a gift, read the instructions carefully. To prevent both burns and electrical shocks, don't give young children (under age ten) a toy that must be plugged into an electrical outlet. Instead, buy toys that are battery-operated. Children under age three can choke on small parts contained in toys or games. Government regulations specify that toys for children under age three cannot have parts less than 1 1/4 inches in diameter and 2 1/4 inches long. Children under age 8 can choke or suffocate on uninflated or broken balloons. Remove strings and ribbons from toys before giving them to young children. Watch for pull toys with strings that are more than 12 inches in length. They could be a strangulation hazard for babies. Food Safety Bacteria are often present in raw foods. Fully cook meats and poultry, and thoroughly wash raw vegetables and fruits. Be sure to keep hot liquids and foods away from the edges of counters and tables, where they can be easily knocked over by a young child's exploring hands. Wash your hands frequently, and make sure your children do the same. Never put a spoon used to taste food back into food without washing it. Always keep raw foods and cooked foods separate, and use separate utensils when preparing them. Always thaw meat in the refrigerator, never on the countertop. Foods that require refrigeration should never be left at room temperature for more than two hours. Happy Visiting Clean up immediately after a holiday party. A toddler could rise early and choke on leftover food or come in contact with alcohol or tobacco. Remember that the homes you visit may not be childproofed. Keep an eye out for danger spots. Keep a laminated list with all of the important phone numbers you or a baby-sitter are likely to need in case of an emergency. Include the police and fire department, your pediatrician and the national Poison Help Line, 1-800-222-1222. Traveling, visiting family members, getting presents, shopping, etc., can all increase your child's stress levels. Trying to stick to your child's usual routines, including sleep schedules and timing of naps, can help you and your child enjoy the holidays and reduce stress. Fireplaces Before lighting any fire, remove all greens, boughs, papers, and other decorations from fireplace area. Check to see that the flue is open. Use care with "fire salts," which produce colored flames when thrown on wood fires. They contain heavy metals that can cause intense gastrointestinal irritation and vomiting if eaten. Keep them away from children. Do not burn wrapping papers in the fireplace. A flash fire may result as wrappings ignite suddenly and burn intensely.

Gas Prices

Independent from technological advances, oil has seemingly passed from its glory days. Although since the 1970's we have discovered more efficient ways of obtaining oil as well as new oil deposits and producers can now manufacture more products with less oil.

A cold winter can help trigger a gas shortage and may cause serious problems. This could bring on petrocollapse, a breakdown of the whole socioeconomic structure that has an unhealthy relationship with the only reality, our ecosphere where in economics must function sustainability. Globally reserves are not being replaced to keep pace with consumption. The world uses about four barrels of oil for every one that is discovered. Less and less net energy yield from oil can be a factor that accelerates the possibility of a permanent shortage and serves to raise costs hidden in countless goods and services.

Our country is faced with a serious energy shortage. Each state must cut their fossil fuel use by a specific amount by taking into account the population, industry size and various other factors. Most of the petroleum consumption is in the form of gasoline for vehicles. More energy efficient cars and use of alternative fuels could help in reducing energy consumption. Various other resources like solar power and generating electricity from windmills could help reduce the dependence of petroleum.

Petrocollapse seems inevitable and right ahead. The most reasonable solution in the long run will be that people will have to help each other and live in an egalitarian society. Cooperation and solidarity will be the order of the new day an there seems to be no other than this if we are to survive as a species.
The outbreak of war drives up the price of oil. Higher oil prices can raise the projected inflation value. The international economy remains dependant on oil as the main source of energy since oil is among the fossil fuels with the least reserves. It will help to switch to natural gas because it is found almost everywhere oil reserves are found and it is the cleanest burning of all fossil fuels. In the long run the development of renewable resources such as solar, wind, geothermal, and water will postpone the arrival of a time when there will be a real shortage of petroleum.

The inflation motivated a major effort at conservation of energy, a beginning of development of alternative sources of energy and searches for new reserves of oil. Producing appliances that work more efficiently and with alternative fuels will help to conserve the oil that we still have. Oil is finite and it will run out of it some day so we must prepare for the day when oil runs out.

Off Shore Drilling

 

There have been calls to grant the oil companies additional leases, specifically in northern Alaska and for offshore drilling. The argument is that by giving new leases to the oil companies, America will be able to get rid of high gas prices and its dependency on foreign oil. Indeed, both presidential candidates have jumped on the bandwagon as it appears that more and more Americans are biting into this load of bullcrap.

And a load of bullcrap it is. First of all, why allow the oil companies new leases if they have yet to explore many of the areas on which they have permits on, but have yet to commence exploration. We are not talking about one or two unexplored areas, but almost one third of the permits given to the oil companies remain unexplored. The oil companies are like little greedy boys that want second helpings after having eaten only one bite of their meal. No, oil executives, finish your plates up and eat all your vegetables before asking for more. Finish exploring ALL the areas in your current portfolio before putting your claws into new territories.

Next, it will be years before we see the first drops of oil that would result from granting new permits. Expeditions need to be mounted to do geological surveys, test drills need to be made, and a whole infrastructure needs to be built before the those first drops flow through the pipeline.

Furthermore, America is so addicted to oil that now the majority of the crude it consumes is of foreign origin. America consumes a quarter of the worlds oil, but only has reserves equal to 3 percent. There is no way that America could reduce its dependency on foreign oil even if we drilled everywhere and pumped out all the domestic reserves. Given current consumption patterns, America will always be dependent on foreign oil for the majority of its needs.
 
So, drilling is not the answer. Supply is not the dominant factor in oil prices. However, what has proven very effective in lowering the price of crude by half in only 3 months is a dramatic reduction in demand. Every month, Americans consume fewer billions of gas compared to last year. By making small changes to their driving habits, Americans have forced the price of gas down fro over $140 per barrel to around $70 per barrel in 3 months. Imagine what we could do to the price at the pump if we made an additional little effort by converting our fleets such as city buses, delivery trucks, postal trucks to bio-diesel, propane, and other alternative fuels. In just a couple of short years, we could reduce consumption by several billions of gallons more than we could ever drill, and we would be able to do it within a very short time span.