April 2, 200422 yr Saw the employment stats that showed 308,000 jobs added to the economy, which was a sharper rise then the expected 123,000 jobs added. Say hello to higher interest rates sooner rather then later (damn, just when we decide to buy a house!!!!!!!)
April 2, 200422 yr Saw the employment stats that showed 308,000 jobs added to the economy, which was a sharper rise then the expected 109,000 jobs added. Say hello to higher interest rates sooner rather then later (damn, just when we decide to buy a house!!!!!!!) Damn now that was a fun morning! After the number came out the Dow futures rallied 150 point, the bonds dropped 4 whole handles, gold dropped $10, silver dropped $15, the Euro dropped 150 points, all in about a minutes time. Phones ringing off of the hook, errors happening, people panicing... Now I remember what I love about this business
April 2, 200422 yr Where? More and more are being lost local to me (another company folded a few days ago - I don't know their name, but I drive past there every day). I am glad we got ours locked in at 5.675% if this is true.
April 2, 200422 yr Where? More and more are being lost local to me (another company folded a few days ago - I don't know their name, but I drive past there every day). I am glad we got ours locked in at 5.675% if this is true. They are in the Dallas/Ft Worth area...
April 2, 200422 yr Damn now that was a fun morning! After the number came out the Dow futures rallied 150 point, the bonds dropped 4 whole handles, gold dropped $10, silver dropped $15, the Euro dropped 150 points, all in about a minutes time. Phones ringing off of the hook, errors happening, people panicing... Now I remember what I love about this business It sure was fun, wasn't it? Mike, you got TVs where you're at? Our Comcast is out here. Can't watch CNBC.
April 2, 200422 yr It sure was fun, wasn't it? Mike, you got TVs where you're at? Our Comcast is out here. Can't watch CNBC. Yeah we have Dish at work. We are all good.
April 2, 200422 yr Damn now that was a fun morning! After the number came out the Dow futures rallied 150 point, the bonds dropped 4 whole handles, gold dropped $10, silver dropped $15, the Euro dropped 150 points, all in about a minutes time. Phones ringing off of the hook, errors happening, people panicing... Now I remember what I love about this business My mutual funds will be singing a happy tune today & probably for the next little while too. Good deal!
April 2, 200422 yr Author Actually here in Dallas there are a lot of companies that are hiring again. Locally, you can see things picking up pretty well. In northeast Dallas, where the tech corridor is, you have all these new buildings and it just STOPS - skeletons of buildings, etc not finished because the money ran out. Just lately, they've started rebuilding out there, albiet slowly... Our company is doing pretty well, but we're in healthcare. We're hiring lots of folks right now. There hasn't been any mass layoffs here in a bit, which is a little better then it was considering aviation is big here too.
April 2, 200422 yr Hopefully it'll spread to Chicago (or Illinois in general) fairly quickly. It's tough seeing companies that have been around for awhile having to fold.
April 2, 200422 yr Struggling PC maker Gateway (GTW) said Thursday that it plans to close all 188 of its retail stores and lay off 2,500 workers. Gateway closing all retail stores - yahoo link, get it while ya can. Glad I chose Dell over Gateway.
April 2, 200422 yr Gateway closing all retail stores - yahoo link, get it while ya can. Glad I chose Dell over Gateway. Gateway computers suck. I have had nothing but bad experiences with them. Dell, on the other hand, has a superior product and tech support which is second to none.
April 2, 200422 yr Saw the employment stats that showed 308,000 jobs added to the economy, which was a sharper rise then the expected 123,000 jobs added. Say hello to higher interest rates sooner rather then later (damn, just when we decide to buy a house!!!!!!!) I dont think interest rate hikes are forthcoming anytime soon. The Fed usually holds back from raising interest rates in an election year. In 2005 though, it's gonna happen.
April 2, 200422 yr Author I dont think interest rate hikes are forthcoming anytime soon. The Fed usually holds back from raising interest rates in an election year. In 2005 though, it's gonna happen. I disagree... while you're right in the bigger monetary policy, they will not raise rates substantially, there are inflation pressures all over the place. Gas, agriculture, etc. etc. etc. are all at high prices. There has to be some give here, and I would bet that the Fed raises rates in June to start warding off some of the pressures.
April 2, 200422 yr Kap, you should still be alright, plus their are always adjustable rates, which I typically recommend because you get the low start rate so you can adjust into your payment better.
April 2, 200422 yr Author Kap, you should still be alright, plus their are always adjustable rates, which I typically recommend because you get the low start rate so you can adjust into your payment better. Yea, I think they won't go up more then 25 to 50 points which will still get us a pretty decent rate I think. Not sure I want to go adjustable though - it's an option but interest rates have no where to go but up - so I think I want to get it fixed now and I can always refinance later as our credit gets better over time or the rates go lower then they are now, which I seriously doubt will happen anytime in the next 10 years (or more).
April 2, 200422 yr I disagree... while you're right in the bigger monetary policy, they will not raise rates substantially, there are inflation pressures all over the place. Gas, agriculture, etc. etc. etc. are all at high prices. There has to be some give here, and I would bet that the Fed raises rates in June to start warding off some of the pressures. Right on. Join the inflation train. Its coming, trust me.
April 2, 200422 yr Yep rates are definately going up, although I don't think they will go super high. But it will take a long time before they got to where they are right now. Most of the loans I do are adjustable, but its cause it really helps people qualify for more expensive homes or its great for people that are self employed because you can have the option to get a Neg-Am loan and if your business is having a slow few months, you can take the option of the small payment. If your doing good, you can pay that stuff off faster or you can just make the normal payment and never even worrying about going neg. Fixed are good too, just depends...right now I'm doing some adjustable with about 2.2 margins and then thats over the moving tbill average (12 months) which is right now about 1.19 or 1.2 or so if I recall. Fixed are a few percent higher then that, so the moving tbill would have to shoot up. This are loans on the libor if I recall (I'm a little fuzzy this morning). Of course the moving tbill is a much quicker moving index and in a time like this if I were to get my own personal loan, I'd stay away from the tbill and go to the 11th district cost of funds (COFI loan). Its a very conservative index that is pretty slow moving.
April 2, 200422 yr Author Yep rates are definately going up, although I don't think they will go super high. But it will take a long time before they got .......... Hmmm, maybe I should call you before they do the loan... So this is what you do is mortgage loans? One of the options they presented us with is where we do a 3.5 yr 1 and a 4.5 yr 2 and then a 5.5 fixed year 3-30. But all the deferred gets rolled in, or something like that. In the long run, I think it may just be smarter to do a fixed rate and take the element of variability out of it. I just hijacked my own thread.
April 2, 200422 yr Ya, I'm a processor. My dad knows more then I do about it, he's an broker (Although he does real estate, but he knows loans very well). The deferred fixed isn't too bad, especially if after you move into the house you may be strapped tight for cash. You'll need furniture, all that good stuff and may of tapped out your resources. That why we usually do the low start rate (1.25 or so) for the 1st year and then it adjust up, but it really doesn't go too high. Just did one the other day where right after the adjustment, it goes to about 3.375. Of course as the rates go up that will also go up. The question is how long are you planning on keeping your house. If its for a long time, then I say go Fixed, much safer. Like I mention, typically out here, people don't really live at a house for super long periods of time, so it makes the adjustable very worthile. Their are a whole lot of options out there. The most conservative is probably the fixed rate....although I personall see adjustable rates as just as safe, because I just can't see rates absolutely skyrocketing (To the point where they are 10% or so). And if you see them starting to take off like that, you quickly get out of the adjustable and try to lock yourself down, knowing that for the long period of time, you were paying a much lower rate. Also, remember, very rarely do people pay off their house (At least out here in Cali). The house appreciates and then people move up to bigger, better houses or sometimes sell and retire to a less expensive area. Still, I can't see how you go wrong with a fixed rate in the 5's.
April 2, 200422 yr They went up in Feb and came back down last month (we started the mortgage thing in Feb and my cousin changed the locked in rate for us when it came back down last month).
April 2, 200422 yr And Kap, if you ever have any questions, just ask me. If I don't know the answer, I'll ask someone that does.
April 2, 200422 yr Just heard on MSNBC that there was an "inordinate" amount of selling going on in the bonds right before this number came out. The CBOT is investigating to see if there was a leak of the number or if there was insider trading going on... Very interesting.
April 2, 200422 yr BTW a market indicator here... The Fed Funds rates at the CBOT are indicating a 100% chance of a rate increase by August.
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