Steve Papapietro's Weekly Mortgage Bulletin: De-Lever US From Evil

Provided by Steve Papapietro

Relationship Manager

MetLife Home Loans

For the Week of Oct. 20, 2008--Vol. 6, Issue 43

Last Week in Review

"I'm always making a comeback but nobody ever tells me where I've been." Billie Holiday. Making a comeback was exactly what Bonds and home loan rates attempted last week, after approaching some of their worst levels this year.

While the Bond market was closed last monday in Observance of Columbus Day, the early part of the week wasn't short of market-impacting news. On Tuesday, the Bush Administration, including Secretary Henry Paulson, Federal Chairman Ben Bernanke, and FDIC Chariman Sheila Bair announced a plan to use $250 billion of the $700 billion financial rescue bill recently passed by Congres to buy directly into American banks. The government will begin by buying up stock in nine of the largest banks including Bank of America, JPMorgan Chase, and Citigroup.

Why did the government do this? Because the financial crisis is due to over-leverage... that means the ratio of outstanding loans to capital is too high. If left unchecked, this can lead to the failure of institutions. And it has already taken a great toll. The only way to repair this is by reducing the leverage ratio, or "de-leveraging". That means sell of loans or increase capital. The Fed's plan helps this on both sides as they can be a buyer of some loans as well as an investor in some banks.

Another result of the current financial crisis is that economic reports are taking a back seat to market dynamics in ways that have never been seen before. In the past, fund managers or institutional traders would typically contemplate which direction would best favor the market, and position their portfolio in Stocks if the outlook was favorable, or Bonds if the outlook was cloudy. So we have come to expect Bond prices to move in the opposite direction from Stock prices much of the time, as money flows out of one and into the other. But the pressure to "de-leverage" has all but removed the thought process, and forced settling of all types of securities to raise capital. And while this situation should stabilize and return to normal (which we saw some evidence of on Friday as Stocks and Bonds alternated going up and down), it is one I will continue to monitor as the weeks and months progress.

And after all the ups and downs of the week, Bonds and home loan rates did manage a comeback, ending the week a bit better than they began. 

HAVING A MEDICARE CLAIM DENIED IN WHOLE OR IN PART DOESN'T MEAN YOU CAN'T COMEBACK AND ACHIEVE A DIFFERENT OUTCOME! CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME GREAT SUGGESTIONS FOR APPEALING A DENIAL. 

Forecast for the Week

This week is a slow week when it comes to economic reports, but as we have seen, that doesn't mean we should expect the volatility to slowdown. One important report to watch for is Friday's Existing Home Sales Report. Last week's New Home Sales Report showed that new home sales were at their lowest level since January 1991. Since sales of existing homes make up around 84% of all houses sold, it will be important to see how existing home sales are fairing in these economic times... and what kind of comeback is needed in the housing market.

Another important point to note is that we are in the middle of earning season for the Stock market. While poor economic news typically causes money to flow from Stocks into Bonds, helping home loan rates improve, as I described above, Bonds and home loan rates may not necessarily benefit from weak economic news given the current economic environment. I will be watching closely to see how both Stocks and Bonds react to the earnings reports.

And speaking of comebacks, as you can see in the chart below, Bonds and home loan rates managed to bounce back after last week's worsening trend. I will let you know if Bonds and home loan rates can make an even bigger comeback this week.

The Mortgage Market View...

Fighting Medicare Claim Denials

When an insurance company denies a claim in whole or in part, it is possible to appeal their decision. The same is true with Medicare claims... and in fact more than half of Medicare appeals are successful. If you, a family member, or a friend have had a Medicare claim denied, the following information can help you successfully appeal the decision:

Time Frame: If your Medicare claim is denied for less than the full amount, you can ask for a "redetermination" but you must do so within 120 days. Download the Medicare Redetermination Request form HERE, or call 8006334227 to request a copy. 

Common Denials: The denial you received will include an explanation, which you will need to contest your appeal. Ask your doctor to write a letter addressing the reasons in the denial and include this letter with your appeals form. Common denials include:

1. The treatment, prescription, or medical service is unlikely to cause your health to improve: Fight this by having your doctor write a letter explaining why the care is necessary. Medicare is required to look at your total condition, not just your chance for a full or partial recovery. 

2. You are likely to require care for a very long time: Medicare coverage is not limited to treatments that work quickly, so ask your doctor to write a letter explaining that the treatment is making some positive difference or is expected to.

3. The prescription dosage level is greater than what is normally prescribed, or the drug prescribed is not normally prescribed for your health problem: Have your doctor write a letter explaining why the unusual drug or dosage is medically necessary. For instance, you may be allergic to the medicine normally prescribed.

4. You do not qualify for Medicare-covered home care because you are not homebound. Under Medicare rules, home bound does not mean that you are completely unable to leave your home or that you are confined to a bed. It does mean that you require assistance and that it takes considerable effort for you to leave your home. Ask your doctor to write a letter describing in detail how difficult it is to leave your home.

Be Persistent: If your first appeal is denied, you can file as many as four more appeals. And the more appeals you file, the greater your odds of success. While your first appeal is made to the same group that denied your initial claim, subsequent appeals are made to independent arbiters. 

Click here for more info

Steve Papapietro's Weekly Mortgage Bulletin: Iron Hank and Super Ben Take Path to Save the World

For the week of Sept 22, 2008-- Vol. 6, Issue 39

Last Week in Review

"The path to success is to take massive, determined action." Anthony Robbins. And success in stabilizing the markets and the economy is exactly what the government is hoping will happen as a result of the massive, determined actions they took late last week in response to unprecedented happenings in the financial markets. 

Treasury Secretary Hank Paulson announced that the US government will guarantee money market funds, after panic led to a "run on the bank" type of environment. A whopping $180 billion was withdrawn from market funds on Thursday alone. And the fear was so great that a premium to put money into Treasury securities was paid, which actually exceeded the rate of return. So effectively, the return was negative! People were actually paying for a place to put their money that would be safe because they had fears of losing principle. The government guarantee helped to ease these fears and stabilize the markets.

The Fed announced plans to create a market place for liquid mortgage debt. This should do a lot of long-term good to help the housing and lending environment. As if that weren't enough, the Securities and Exchange Commission also placed a temporary ban on the short selling of 799 different financially related stocks.

What prompted these dramatic actions? Very dramatic happenings earlier in the week.

After 158 years in existence, Lehman brothers filed for bankruptcy last Monday due to overexposure of high-risk loans in the mortgage arena. Then, the Fed gave insurance giant AIG an $85 billion lifeline to keep it from going into bankruptcy, after initially stating it would not intervene. Then it was announced that Merrill Lynch is being acquired by Bank of America, which will save them from the same fate as Lehman brothers, and now troubled bank Washington Mutual is looking for a buyer as well. 

Also playing a role was the fact that the Fed left its benchmark Fed Funds Rate (the rates banks charge each other for overnight lending) unchanged on Tuesday, not wanting to counter the recent improvements the US economy has made in the way of inflation. While this benefited Bonds and home loan rates earlier in the week, Stocks felt heavy selling pressure on the news... which added to the reasons for the actions taken late last week.

The government's announcements on Friday are great news for the overall health of our financial system, though they did cause Bonds and home loan rates to move away from their best levels of the week. All in all, Bonds and home loan ended the week slightly worse than where they began. Additionally, stocks had their most volatile week in history--but ended the week almost exactly where they started.

The path to smart spending definitely involves taking advantage of great deals! Check out this week's mortgage market view for five fantastic freebies... and a link to 25 more! 

Forecast for the Week

The ride isn't over---the coming week may see more wild movement in the markets as the financial sector responds to all the recent action, along with several reports due in the latter part of the week. We'll get a read on the housing market with Wednesday's Existing Home Sales Report and Thursday's New Home Sales Report. And we will get a read on the economy with Friday's Gross Domestic Product Report (GDP is the broadest measure of economic activity) and Thursday's Durable Goods Report.

What are "durable goods"? Simply put, they are items that are durable (i.e cars, furniture, appliances, games, cameras, business equipment, etc.) and are made to last longer than three years. This report shows a good measure of consumer and business consumption and buying behavior, and depending on the health of the report, could add to the volatility we have seen.

Remember when Bond prices move higher, home loan rates move lower... and vice versa. AS you can see from the chart at the top of the post, Bonds and home loan rates are still much improved from several weeks ago, despite giving up some recent gains. This could be a great time to take a close look at your home loan financing needs, as rates remain at historic lows. As always, I will be watching closely to see how Bonds and home loan rates continue to respond in these volatile times. 

CHART ABOVE: Fannie Mae 5.5% Mortgage Bond 

The Mortgage Market View

Five Fantastic Freebies

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Free Directory Assistance: The next time you need to call 411, dial 1-800-Free-411 instead for free directory assistance for both residential and business listings. While you may have to listen to a short advertisement after voice prompts, you will still save a few dollars.

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For twenty-five more great freebies, CLICK HERE. 

Steve Papapietro's Weekly Mortgage Bulletin: Safety Clearing Tough Hurdles

Mortgage Market Guide, for the week of Aug 25, 2008. Vol. 6, Issue 35

Last Week in Review 

"The first thing a hurdler learns... is how to fall." Tonie Campbell, 1988 Olympic Bronze Medalist, 110m Hurdles. And that's a lesson Bonds and home loan rates have now learned, too. After finally leaping over a big technical hurdle called the 50-day Moving Average (a moving average is the average closing prices of a financial instrument over a given time period) for the first time in weeks, Bonds and home loan rates then quickly plunged to some of their worst levels of the week.

So what happened? Bonds and home loan rates began the week facing a tough inflation hurdle, when the Producer Price Index (PPI) came in at the biggest year over year increase in 27 years. The Core PPI, which excludes volatile food and energy prices, also came in at the biggest year over year increase since 1991. However, the recent drop in oil Bonds and home loan rates kept the topic of inflation from being too high a hurdle for Bonds and home loan rates, and they managed to leap above the 50-Day Moving Average to some of their best levels in weeks on Wednesday.

However, the quick rise in Bond prices pushed them into "overbought" territory, which pulled the reins back on their momentum. Combining this with Friday's news that the Korea Development Bank may be interested in acquiring Lehman Brothers- which added confidence to the financial sector, causing traders to move money from Bonds into Stocks- caused Bonds and home loan rates to stumble and end the week only slightly improved than where they began. 

WONDERING IF YOUR BANK DEPOSITS ARE FULLY PROTECTED? CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW TO MAKE SURE YOU AREN'T FACING ANY UNEXPECTED HURDLES!

Forecast for the Week

And if any improvement is in store, Bonds and home loan rates will again have several big obstacles to face this week. Right off the bat, we will get a read on the housing market as the Existing Home Sales report will be released on Monday followed by the New Home Sales Report on Tuesday. Also on Tuesday, the minutes of the Fed's latest meeting will be released, and it will be important to see if any comments about inflation will cause Bonds and home loan rates to trip up.

And more hurdles still will follow in the last half of the week. On Thursday, the Gross Domestic Product (GDP) Report will be released and on Friday we will get the details on the Fed's favorite gauge of inflation, the Core PCE (Personal Consumption Expenditure) data, from the Personal income report. If either of these reports show inflation as a big barrier looming ahead, Bonds and home loan rates may not be able to regain any headway before the markets close early on Friday at 2:00 PM in advance of the Labor Day holiday weekend.

Remember when Bonds move higher, home loan rates move lower... and vice versa. As you can see in the chart at the TOP of this post, Bonds and home loan rates managed to stay above the 50-Day moving average line despite the losses they incurred. I will be watching to see if Bonds and home loan rates can surpass additional hurdles and regain some ground this week.

The Mortgage Market View

The Low Down on FDIC Insurance--

After last month's failure of California-based IndyMac Bank, many people have wondered how safe their accounts really are. While the Federal Deposit Insurance Corp (FDIC) guarantees most bank deposits, here are some important details to remember.

What types of accounts are covered?

The FDIC protects checking and savings accounts, certificates of deposits (CDs), Christmas club accounts, and money-market savings accounts. However, Stocks, Bonds and mutual fund shares... even those purchased through an FDIC bank... are not protected.

What are the limits of FDIC insurance?

Bank accounts that have less than $100,000 in them and certain retirement accounts (IRAs held in CDs and money market accounts) that have less than $250,000 are fully protected by the FDIC even if the bank fails. If you want to exceed these account limits, you can keep your deposits fully protected by 

1. Dividing your money among several different bank companies. Note that dividing your money among several different branches of the same bank does not guarantee full protection.

2. If you prefer to keep your money in the same bank company, you can still be fully protected if you divide your money among various "ownership categories". Ownership categories include a personal account in your name, a personal account in your spouse's name, a joint account co-owned by you and someone else, and a trust account that names someone other than you as a beneficiary.

What are some common ways customers end up with uncovered deposits?

If you purchase a CD through an investment broker, this CD will often be placed with a bank at which you already have an account. If the CD and your other accounts exceed the $100,000 limit, you may not be fully protected. Before purchasing CD's through a broker, ask where they will be placed.

In addition, keep track of the interest your accounts earn you so you don't exceed the limits in any way.

What will happen if your bank fails?

In most cases, depositors can fully access their funds by the next business day. Typically, failed banks are closed on Fridays, and the funds are available by the following Monday. People can usually close their ATM cards and write checks over that weekend as well. And for customers whose accounts exceeded the FDIC limit, all hope is not lost. Though this amount has varied, they can generally expect to recover 70 cents on the dollar of their uncovered funds after the bank's assets are sold.

The good news is that the vast majority of US banks are secure, but the above information will help you stay full protected. 

FOR MORE INFO, visit www.fdic.gov

Steve Papapietro

Steve Papapietro's Weekly Mortgage Bulletin

For the week of Aug 18, 2008---Vol. 6. Issue 34

Last Week in Review

"You can't put a limit on anything." Michael Phelps. And while swimmer Michael Phelps has had a record-setting week at the Beijing Olympics, Bonds and home loan rates have been battling some tough opponents at home. 

Bonds began the week trading lower due to inflation fears after crude shipments from Georgia were halted amid the Russian bombardment of the country. However, some poor economic reports (remember bad economic news is bad for Stocks and typically causes money to flow from Stocks into Bonds)... including poor earnings reports from Macy's and farm equipment maker Deere & Co... helped Bonds and home loan rates regain some of the early ground they had lost.

Bonds continued to rally in the latter part of the week despite the hotter than expected read on consumer inflation in the July Consumer Price Index (CPI) report. According to the index, consumer prices increased 5.6% over the last year, which is the biggest year-over-year increase since January 1991. However, Bonds shrugged off the bad inflation news and traded higher because this hot reading came during the time that oil prices spiked to $147 a barrel in the month of July. Since then, oil prices have dropped significantly and are now $113 a barrel, which left traders thinking that next month's CPI reading may be tamer. And Bonds and home loan rates continued their rally on Friday in response to some tame inflation news within the Empire State Index Report.

While inflation has been a tough opponent for Bonds and home loan rates, the technical factor known as the 25-day Moving Average (a moving average is the average closing price of a financial instrument over a given time) has been an even tougher opponent of late. Bonds and home loan rates have attempted to improve past this level several times over the last few weeks, finally succeeding on Friday to end the week nearly unchanged from where they began. 

PUTTING A LIMIT ON OVER-CONSUMPTION IS AN IMPORTANT THING TO DO! CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW TO LEARN HOW GOING GREEN CAN MAKE A DIFFERENCE NOT JUST FOR THE WORLD, BUT FOR YOUR MORTGAGE, TOO!

Forecast for the Week

Tuesday is an especially important day to stay tuned to the markets as two reports...the wholesale inflation measuring Producer Price Index and the state of the housing market measuring Housing Starts and Building Permits Report... could impact the direction of Bonds and home loan rates.

Thursday is another important day to note as the Philadelphia Fed Report will be released. This monthly survey of manufacturing purchasing managers conducting business around the tri-state area of Pennsylvania, New Jersey, and Delaware is one of the most-watched manufacturing reports. If manufacturing is stronger than expected in this area, Stocks could move higher at the expense of Bonds and Home Loan Rates.

Remember when Bond prices move higher, home loan rates move lower... and vice versa. As you can see in the chart below, Bonds and home loan rates were able to battle back and end the week near where they started. However, a new level of resistance at the 50-day Moving Average (seen as the solid black line) may have an affect on the direction of home loan rates. 

FOR CHART SEE IMAGE AT TOP OF BLOG POST

The Mortgage Market View...

Green Mortgages Equal Larger Loans Efficient Homes

Tired of heat and energy prices skyrocketing out of your budged? Now you can do something about it... and your mortgage can help!

Energy-efficient improvements, such as installing double-paned windows and additional ceiling insulation, can save you money every month, not to mention pay for themselves in the long run. But how do you come up with the cash to pay for those projects up front or to buy a slightly more expensive house that already has them? One way is with a "green mortgage."

What is a Green Mortgage?

Green mortgages actually come in a couple of different formats. Officially these loans are classified as either Energy Efficient Mortgages (EEMs) or Energy Improvement Mortgages (EIMs).

An EEM essentially allows you to purchase a home that is already energy efficient--even if the prices of that home is larger than you would normally qualify for under your debt-to-income ratio. EIM, on the other hands, allow you to take out a larger loan to make energy efficient repairs and improvements to a house that is not currently rated as energy efficient.

The main benefit of both of these mortgages is that they help you qualify for a larger loan amount and help make it possible for you to live in a better, more energy-efficient home. the basic principle behind this type of financing is that the money you save from the more efficient home will offset the larger mortgage payments.

Qualifying for a Green Mortgage

To qualify for a green mortgage, you typically need to have a Home Energy Rating conducted. This rating provides the lender with an Energy Savings Value, which is estimated monthly energy savings and the value of the energy efficiency measures.

Depending on your unique circumstances, you may qualify for a conventional, FHA, or even a VA green mortgage. Each type of loan is designed to fit a specific situations and, therefore, each loan has specific loan requirements that must be met.

You can learn more about the differences between conventional, FHA, and VA green mortgages at the Energy Star Website. And for more details about green mortgages in general, visit the HUD website.

Steve Papapietro

Senior Financial Assistant

First Horizon Home Loans

Steve Papapietro's Weekly Mortgage Bulletin: Bonds Persevere and Go for Gold Next Week

Last Week in Review

"PERSEVERANCE IS A GREAT ELEMENT OF SUCCESS." Henry Wadsworth Longfellow. Despite strong opposing forces in the early part of the week, Bond and home loan rates persevered like the greatest Olympian athletes, and were able to end the week in a similar position to where they began.

Remembering that inflation is the arch-enemy of Bonds and home loan rates, bad news on the inflation front caused Bonds and home loan rates to worsen Monday as the Personal Consumption Expenditure Index indicated that inflation climbed .8% in June, the highest monthly jump in 27 years. Not a huge surprise, given how energy and commodity prices soared in June.

Despite these inflationary pressures, the Fed announced on Tuesday that they have decided to keep the Fed Funds Rate at 2% and released a statement that hinted they may not raise the Fed Funds Rate in the near future. Why did the Fed do this? The Fed is trying to balance a slowing economy and the threat of inflation, and while raising rates could help fight inflation, it could also slow the economy even more than it is now. The Fed is hoping that keeping the Fed Funds Rate unchanged will help boost the economy, without fanning the fires of inflation. Since this decision kept the fears of inflation strong, Bonds and home loan rates worsened as a result.

However, Bonds and home loan rates persevered and managed to rally like champions later in the week on the heels of several reports. Causing money to flow from Stocks over to Bonds were a far worse than expected Initial Jobless Claims report and Wal-Mart's announcement that sales are expected to slow in August. Since inflation remains one of the strongest opponents for Bonds and home loan rates, I will continue to monitor this closely.

The loss of a loved one is one of the most challenging experiences of life. Check out this week's mortgage market view for important information that can help you persevere and make good decisions during a very challenging time.

Forecast for the Week

This week, several reports will show us whether or not inflation is getting hotter. Thursdays Consumer Price Index (CPI) report will show us inflation at the consumer level-- that is, how much more expensive goods and services are for consumers this month over last month. If CPI shows that inflation is growing, Bonds and home loan rates may reverse course and worsen quickly.

But before the inflation news hit the wires, another market mover will likely be Wednesday's Retail Sales Report, which will show us the total receipts of retail stores. Changes in these numbers are closely followed as a timely indicator of broad consumer spending patterns. This month's report may show us if spending that had been aided by the Economic Stimulus Package has started to wane. Remember: A strong Retail Sales Report would be good for the Stock Market-- which stands to reason, as it would indicate continued consumer confidence and dollars being poured into the economy. But a strong Retail Sales Report would be bad news for Bonds and home loan rates, as money that pours over into an improving Stock market would be coming out of Bonds, and would in turn cause home loan rates to worsen.

Remember when Bond prices move higher, home loan rates move lower... and vice versa. As you can see in the chart, Bonds ended the week on a positive note, but are now facing a "ceiling of resistance" overhead that might shut down any further improvement. Like an Olympian faced with a barrier, Bonds will need a boost to break through a tough ceiling that has halted advances on five occasions in the past few weeks. The nature of reports will determine whether Bonds and home loan rates can make more improvements, or reverse from overhead ceiling and worsen.

CLICK HERE FOR CHART

The Mortgage Market View...

Avoiding Scams During the Loss of a Loved One

The loss of a loved one is never an easy experience for a family, and people are often understandably distracted and overwhelmed with things to take care of. Unfortunately, scam artists often use the obituaries in the newspaper as a way to target potential victims.

Here are some tips to help you or your loved ones avoid scams during times of loss: 

Protect Your Home: If funeral service dates and locations are listed in the newspaper obituary, scam artists will be able to tell when you will be away from home. And with friends and relatives visiting to pay their respects, neighbors may assume someone entering your house has permission to do so.  To be safe, either ask a friend or neighbor to house sit while you're away, or let your neighbors know your plans so they can look out for suspicious visitors.

Know Who's Calling: If you have caller ID on your home phone, make good use of it and don't answer calls from unknown numbers. this will help you avoid calls from companies or individuals who are running cons. Remember--any companies or people who pressure you during difficult times probably aren't looking out for your best interests.

Be Mindful of What You Pay: As you are going through papers, pay all bills that you know are legitimate like the mortgage, utilities, credit cards, and car payments. Do not pay anything from unknown parties or companies, including invoices, investment opportunities, calls for orders placed, or calls for money owed.

Get a Second Opinion: Sorting through paperwork can be overwhelming during times of loss. Consider asking a friend, family member, or even a trusted professional like an accountant or attorney to review any invoices or claims before you send a payment.

If you ever have any mortgage or financial questions regarding an estate, please let me know how I can help you.

Steve Papapietro

Senior Financial Associate 

First Horizon Home Loans

FOR THE WEBSITE, CLICK HERE

Steve Papapietro's Weekly Mortgage Bulletin:Bonds Take a Nose Dive

LAST WEEK IN REVIEW

"IT'S A BEAUTIFUL THING, DIVING INTO THE COOL CRISP WATER." Olympic Gold Medalist Dawn Fraser. Driving may be a beautiful sport at the Olympics, but it's not a beautiful thing to watch in the Bond market. And that's exactly what happened last week, as Bonds drove to their worst levels so far this year. 

So what caused this big belly flop to occur? Once again, inflation was the big culprit. While Bonds and home loan rates did begin the week in rally mode after the Federal Reserve announced that it authorized Fannie Mae and Freddie Mac to borrow directly from the Central Bank if they need additional capital, this confidence boost in the markets was short lived on the heels of important inflation reports. 

On Tuesday, the Producer Price Index (PPI) report, which measures prices of goods at the wholesale level, revealed that the year-over-year PPI soared in June, marking the highest year-over-year rate since 1981. Also on Tuesday, the Retail Sales report, which measures the total receipts of retail stores, showed that retail sales increased much less than the forecast. This may mean that the boost in sales received from the tax rebates may already be fading as consumers are focusing on paying for essentials... something that Wednesday's news seemed to confirm. 

What was Wednesday's news? The important Consumer Price Index (CPI) report, which measures prices paid by consumers like us. It showed prices overall are up 5% from a year ago, the biggest year-over-year rise since 1991. This probably comes as no surprise as you look at your own monthly expenses, particularly the amount you're likely spending these days on groceries and at the gas pump.

Bond prices and home loan rates continued to worsen through the week as no other news or reports could help them shift course. With inflation and tough overhead technical resistance proving to be strong competitors against any improvement, home loan rates generally ended the week around .375% worse than where they began. 

THE ART OF CREATING SAFE BUT EASY-TO-REMEMBER PASSWORDS FOR ALL OF OUR ACCOUNTS COULD BE LIKENED TO AN OLYMPIC SPORT! CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW TO LEARN SOME GREAT PASSWORD-CREATION TIPS THAT COULD HELP EARN YOU A PERFECT 10. 

FORECAST FOR THE WEEK

Inflation was the big newsmaker last week, and the news this coming week will be focused on the housing market, as both New and Existing Home Sales Reports will be released. It won't be much of a surprise to see some continued sluggishness in the nation's overall housing market. 

Also this week will come a look at Durable Goods Orders, which is simply a measure of how many "durable" or non-disposable goods have been purchased during the previous month. Durable goods are those products which are expected to last longer than three years, such as televisions, golf clubs, furniture, office equipment, and cars. With consumables like food and energy taking such a bite out of most people's budget, it will be interesting to see the level of buying for these types of items... it wouldn't be surprising to see it at somewhat low levels. Additionally, a look at Consumer Sentiment will arrive, with a read on how positive-- or not-- consumers are feeling about their current and future economic conditions.

Remember when Bond prices move higher, home loan rates move lower... and vice versa. And this week, Bond prices took a very steep dive indeed, causing home loan rates to worsen. the chart below shows how Bonds were pushed sharply lower by the news of the week, and an inability to defeat a strong overhead ceiling of resistance at the 200-day Moving Average. If this week's news isn't Bond friendly, Bond prices could continue their dive lower, and cause home loan rates to worsen further still... but some negative economic news could pull money out of Stocks and into Bonds, give Bonds a boost higher, and help home loan rates regain some lost ground.

FOR THE CHART, CLICK HERE

WHAT'S YOUR MOTHER'S MAIDEN NAME?

Passwords are crucial to accessing your personal accounts and information. The problem is: We all have so many accounts that we worry more about remembering our passwords than we do about making sure they actually protect our data from hackers. So we end up using passwords like our mother's maiden name or child's first name. But even if you add a few numbers to the end, those types of passwords are easy to break. And that means your data isn't safe.

The tips below can help you avoid the most common password pitfalls and even implement a few new ideas that will make your passwords easy to remember... and hard to break!

Strength Training

A well-protected password is not only unique, but also hard to guess. How do you do that? It's pretty simple really. Just follow this advice:

Use a random string of characters. That means no sequential letters or numbers. None.

Make it loooong. The longer the better--even up to as many as 10 to 14 characters.

Switch things up.  Use a combination of upper and lower case letters, along with a few numbers mixed in the middle or end. 

Don't use substitutes. Using @ for a or 1 for I may look good to you, but most hackers are smart enough to break those substitutes rather quickly.

Avoid easy targets like words straight out of the dictionary or things like family names and birthdays.

Multiplication Facts

Most of us cheat when it comes to passwords. We have trouble remembering our passwords, so we come up with two or three that we can remember and use them everywhere. But you should avoid the temptation. The fact is, once a password is compromised, all of your accounts are vulnerable. There's no way around it, you need a way to create and remember multiple passwords--a different one for each account! 

Sure-Fire Technique for Memorable, Unique Passwords

For all the advice above, good passwords come down to two things: they're easy for you to remember, and they're hard to break. Implementing the tips above can make your passwords hard to break, but what about remembering them---especially if you have a unique password for every account? Here's a sure-fire tip to help!

1. Think up a phrase. Instead of a common word or family member name, think up a unique phrase that only you know. For example, you may think up something off the wall such as "I like short hair too."

2. Make it an acronym. In our example, "I like short hair too," becomes ILSHT.

3. Add complexity. Remember those substitutes you're not supposed to use with dictionary words? Well, you CAN use them with acronym. For example, "I like short hair too" can become "I like $hort hair 2" which makes:1L$h2. You can also use upper and lower letters to make it 1L$h2. The point is to be creative, but in a way that you can easily remember it. 

4. Make it unique. A password is only really unique if you use it for one account and one account only. So you can't just use 1L$h2 for every account. And, in reality it's still too short. Here's the key to the whole process: Mix in additional letters and numbers that are unique to each account. For example, if you're logging into a "gmail account" you can use the "gm" and the "@cct" (for account) to make: 1L$h2gM@cct. Then, for a Netflix account, you may use: 1L$2Nf@cct.

Of course, these are just examples. You'll want to be creative and think up your own acronym and ways to add unique characters to each account. And then keep that little secret to yourself so no one will be able to guess your account passwords. 

Follow these simple steps and you'll have passwords that are tough to break, unique to every account, and easy to remember!

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