Interest Rate Falls to 3.9% on 30-Year Mortgage
Posted on April 26, 2012, by admin, under Economy.
Interest rate on mortgage for 30 years has fallen to record low. It has remained below 4% for the last thirty weeks in a row contributing to a modest housing recovery, but not up to the expectations of most.
Builders and people linked to the housing industry are more optimistic about the recovery of housing industry due to the current fall in interest rates. “After months of declining sales figures and increases in short sales and foreclosures, we are finally seeing some signs of life and that is a good thing,” explains Todd Genger, a financial analyst in New York.
Home prices have slipped about 33% around the country since 2006. Now investors and prospective homebuyers are wading in as many consider homes undervalued because of the multi-year decline.
The unemployment rate is declining and the job market has stabilized with many companies resuming hiring. It is hoped that these factors will support the housing recovery because people getting new jobs may be able to qualify for home loans to purchase homes that they have been eyeing for some time.
The interest rate on home loans for thirty years has fallen to 3.9% from 3.95% which is slightly above from the recent rate 3.87% that was the lowest interest rate on record since the 1950s.
The average rate on a 15-year fixed mortgage dropped to 3.17% from 3.19%.
Freddie Mac’s Chief Economist said, “the low rates are helping lift the housing market. Still, home sales remain weak and it could take years for the market to fully return to health.”
For investors and potential homeowners the combination of low interest rates and affordable home prices may be too hard to pass up. “There is a lot of pent up demand for housing that will be unleashed once people begin to feel more confident about their own personal finances,” suggests Todd Genger.
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Todd Genger – US-Korea Free Trade Deal Phased In Amid Controversy
Posted on April 12, 2012, by admin, under Economy.
The US-South Korea free trade pact took effect on Thursday. It has been a source of much controversy since the time when both parties signed on it.
“This free trade deal between US and South Korea will bring new trade opportunities for both countries and generate tens of thousands of U.S. jobs,” explains Todd Genger, a financial services consultant and former Goldman Sachs executive.
U.S. Trade Representative Ron Kirk noted that the “U.S.-Korea agreement is a landmark deal with an important ally. Starting today, Korea’s doors are wide open for Made-In-America exports that will support well-paying jobs here at home.”
United States President Barack Obama communicated with South Korean President Lee Myung-bak on telephone and praised the pact, as it would strengthen their alliance during a time when both countries are recovering from recession and economic uncertainty.
Lee shared his perspective with President Obama that the South Korea-U.S. free trade agreement is a treaty that will become a model of global free trade.
The leading opposition party in South Korea has opposed the deal from the start and said it would renegotiate the terms if it comes to power in an upcoming election cycle.
Farmers in Seoul also agitated against the bill, but the South Korea government is firm with the conditions of current deal, as it thinks the terms are in the best interest of both parties.
It is a net positive when both U.S. and South Korea governments are confident that the deal will strengthen their economy despite opposition from farming interests and opposition parties. “A strong Korea-U.S. alliance is important for national security and economic security,” notes Todd Genger.
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Arkansas Lawmakers Request Reconsideration of Tax Hike
Posted on January 23, 2012, by admin, under Economy.
By Todd Genger
A group of Arkansas legislators have asked city leaders around the state to reconsider their support for a tax hike proposal for road repair and construction. Fifteen Republicans and three Democrats have signed a letter requesting the Arkansas Municipal League to go up against the anticipated tax hike that former natural gas executive Sheffield Nelson is trying to place on the ballot in November.
Sen. Jonathan Dismang, R-Searcy has written in his letter: “A 7% severance tax, with no short-term incentives, makes investing production dollars in other states much more attractive and threatens Arkansas’ ability to compete for natural gas drilling capital investments and the resulting jobs and economic impact, shares Todd Genger.”
To get support for his severance tax hike proposal, Nelson is gathering signatures to place on the November ballot. Nelson said: “I’m not saying do away with drilling. I’m saying do what’s fair for Arkansas and make the companies that are destroying this state a little bit at a time pay a fair amount.”
Nelson said: “I’m not finding a lot of support for a half-cent sales tax because people are anti-tax.”
Moore said: “If it should be the wisdom of the people of Arkansas in November to pass both of these, it would dynamically change the future of the state of Arkansas if we actually had the money to implement the four lane grid system, expand our roads into rural areas and have the additional revenue that we’re short of to maintain what we have, stats Todd Genger.”
It will be interesting to see whether Nelson succeeds in his efforts or not, as many people are lining up against a tax hike proposal that can hurt Arkansas business.
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Positive Jobs Report Could Not Prevent Market from Falling
Posted on January 11, 2012, by admin, under Economy.
By Todd Genger
On Friday, the U.S. stocks broke down as worries about Europe’s debt crisis discouraged investors despite a better-than-expected U.S. job report. The Dow Jones industrial average dropped 56 points and The S&P 500 fell 3 points. Only Nasdaq eked out a gain of 4 points at the end of the day.
Richard Cripps, chief market strategist for St. Louis-based broker Stifel Nicolaus, said, “The news is good. But we’re not seeing any conviction in either selling or buying.” Shares of leading financial institutions like Bank of America, JPMorgan Chase, Goldman Sachs, and Morgan Stanley all fell between 1 and 2%, shares Todd Genger.
Ted Weisberg, president of Seaport Securities said, “This continues to be a headline-driven market, and it can change in a heartbeat. That’s reflected in the lack of confidence and low trading volumes because investors are sceptical.”
According to the recently released report by the Labor Department, the U.S. economy generated over 200,000 jobs in December 2011. In addition to that growth, the unemployment rate fell more than expected, stats Todd Genger. The collective expectations of market pundits is that investor confidence should grow, but continued uncertainty about the European debt crisis led to market weakness and a fall in the major market indices on Friday.
Fridays drop should not be seen as an ominous sign for business or provoke fear of further retrenchment. It merely indicates that investors have gained confidence after the jobs report, but remain fearful because of Europe.
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Federal Reserve Will Publish Forecast of Interest Rate Moves to Guide Investors
Posted on January 6, 2012, by admin, under Economy.
By Todd Genger
The Federal Reserve has decided to publish the interest rate predictions of its senior officials with a hope to better guide investor expectations.
The decision to publish enhanced guidance for investors was made during earlier meetings of the Federal Reserve, but it was kept secret and released on Tuesday to the public.
The first forecast will be released on January 25. That will consist of the predictions of Fed officials about the level of short-term interest rates in the fourth quarter of 2012, 2013 and 2014, but it will not include individual predictions of Fed officials, stats Todd Genger. Moreover, publication of guidance will also summarize when they expect to start raising short-term rates, which officials have held near zero since late 2008.
The Federal Reserve has decided to publish what it described as “qualitative information” regarding the committee’s expectations about the management of the government balance sheet.
Vincent Reinhart, United States economist at Morgan Stanley and a former senior Fed staff official said, “The Fed’s core problem right now is that the parts of the economy through which those interest rate effects would normally get traction are blocked. It is not clear how effective any of these policies will be.”
The change in communications policy of Federal Reserve is because of efforts made by the Fed’s Chairman Ben S. Bernanke for more transparency, stats Todd Genger.
The decision by the Federal Reserve to publish its forecast of rate moves for investors will provide greater certainty for investors and less volatility during rate announcements.
Drafted By – Todd Genger
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Upturn in US Job Market Contrasts with Sluggish Growth Rate of US Economy
Posted on January 1, 2012, by admin, under Economy.
By Todd Genger
The latest figures reported by the federal government show joblessness is decreasing in the United States as companies expand their hiring. Although there is some reason for optimism on unemployment, the recovery of the overall US economy continued to slow in the third quarter.
The report reveals that those accepting unemployment benefits have fallen to their lowest level since April 2008, which is good news for US economy and its future, since younger jobless have been hit especially hard by the recession. The government is trying additional steps to push job creation in this coming election year.
In spite of a slow recovery, corporations are enjoying a strong 2011 and are increasing their plans for hiring – another reason for cautious optimism, stats Todd Genger.
Earlier this month the unemployment rate fell below 9% for the first time in the last two years. The Federal Reserve has predicted an unemployment rate for early 2012 approaching something between 8.5 to 8.7%, if the current growth rate continues.
Economist Ken Goldstein calls the figures encouraging for US economy and its future. He said that growth in the housing market has helped reduce joblessness and help get the US economy back on the right track.
As 2011 turns the page to a brand new year, signs of improvement in housing, lower joblessness in the United States, all give reason to hope for a stronger US economy in the very near future.
Drafted by -Todd Genger
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The Gingrich Who Stole Christmas
Posted on December 6, 2011, by admin, under Finance.
By Todd Genger
The game of musical chairs that has accompanied the GOP primary season continues as we enter the holiday season. Herman Cain, the former frontrunner, has been beset by several allegations of harassment, has seen his support among Republicans fell to 14 percent from 25 percent in October, according to a recent CNN poll (November 14). And we see a reenergized Newt Gingrich surge. Vetted on the national stage and looking more and more presidential, an American Research Group survey showed 33 percent of likely South Carolina Republican primary voters backing Gingrich, up from 8 percent in October, compared with 22 percent supporting Mitt Romney. Gingrich took 41 percent of public support in a Florida Times-Union poll, followed by Mitt Romney with 17 percent. Gingrich also received a coveted endorsement from New Hampshire’s Manchester Union Leader.
With the Iowa Caucus and New Hampshire Primary just a few weeks away and American attention somewhat distracted by visions of sugar plums and holiday sales, the question remains whether Romney weather another surge by a Republican hopeful or will Gingrich ride his newfound momentum to a couple of early victories that can turn the tide in the quest for the Republican nomination?
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Careers in Real Estate
Posted on September 2, 2011, by admin, under Real Estate.
Real estate agents and brokers assist people using the sale or purchase or investment of a home or other property. Although it might not be a challenge to become a realtor or broker, there’s significant competition from well-established, well-connected, experienced agents and brokers. According to Todd Genger, strong business ethics, social skills, and a love for helping others find their dream home are character traits that help distinguish the most effective agents. Agents who are able to provide outstanding client service, pay attention to detail, and have an in-depth understanding concerning the local neighborhood can have a long, lucrative career.
A license is needed in each and every state and also the District of Columbia. People seeking work as a broker or agent must pass a required examination. The examination will request questions about fundamental property transactions and laws and regulations relating to the acquisition and purchase of property. Most states require candidates for that general property sales license to satisfy between 30 and 90 hrs of class instruction. For any broker’s license, a person typically needs between 60 and 90 hrs of class training and broker’s must typically have some property sales experience, usually one to three years, describes Todd Genger. Many states have established ongoing continuing education as a prerequisite for license renewal.
The Nation’s Association of Realtors sponsor a diverse array of continuing education programs for people. Keeping up with regulatory and marketplace changes will enhance earnings potential and improve possibilities for sales.
Sales commissions are the primary source of compensation for realtors and brokers. Commission rates vary based on the agreement between the agent and broker, the kind of property, and its value. The compensation in connection with the purchase of farm land or commercial properties is usually greater compared to selling a house.
The real estate market is really a cyclical business, highly responsive to the fluctuations in the neighborhood economy, and rates of interest. Throughout a recession or a rising rate of interest cycle, the amount of property sales and agent and broker compensation often fall significantly. The current economic recession led to a sensational collapse in tangible real estate values. Based on analysis by Todd Genger, one vibrant place in the present housing market is worldwide purchasers who are benefiting from record low commercial and residential prices and rising rent rates that hold on the opportunity of significant future returns.
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