Mortgage Rate History – Is Now the Best Time in History to Refinance?
Yesterday I wrote an article on historical mortgage rates that illustrated the fact that mortgage rate data has only been collected since 1971. Although that seems like a long time, in financial markets four decades is not very long. In the last four decades the United States stock market has only seen three long term trends changes: bear market from 1965 to 1982, bull market from 1982 to 2000, bear market from 2000 to the present. Three direction chances in over 40 years? This helps to paint the picture of why four decades of data is not sufficient to make any conclusive analysis.
There other issue at hand with the limited amount of data is that we do not have data from a recession this deep. We would have to go back to the 1930’s to find data the would be comparable to today’s economic environment. That being said, we cannot make conclusions about that period because the mortgage industry was MUCH different during the depression. In essence, it is truly impossible to make predictions on the future of mortgage rates because we do not have a sufficient amount of data.
When looking at the short history of mortgage rates as shown by Freddie Mac’s PMMS we can see that we are in unprecedented times. Never have mortgage rates been this low since data began in 1971. This is all relative as the unemployment rate continues to climb. If Americans are struggling to make any money, it doesn’t really matter how low mortgage rates are. The one good thing about the current mortgage industry is that those who have been financially smart will get rewarded with extremely low rates.
If you have been smart with your money and saved for a “rainy day” you will have a chance to refinance at the lowest rates in modern history. Make sure to take advantage of this by locking in at rates possibly under 5%.
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Historical Mortgage Rates – Are We Really at an All Time Low?
In April of 1971 Freddie Mac started collecting mortgage rate data. The primary mortgage market survey (PMMS) surveys lenders each week on mortgage rates for the 30-year fixed-rate, 15-year fixed rate, 5/1 hybrid adjustable-rate, and the 1-year amortizing adjustable rate. The survey is based on mortgages with a loan-to-value of 80%. The only data point that has been collected every month since April of 1971 is the 30-year fixed-rate mortgage.
The survey data is collected from top lenders across the nation from Monday through Wednesday. The weekly results are posted on Thursday of each week and serve as the “foremost reliable, representative source of regional and national mortgage rate trends and is relied upon by the mortgage industry and the public in gauging market conditions and evaluating mortgage loan options.”
Last week they 30-year fixed-rate mortgage hit an all time low of 4.82%. There has never been a month in which mortgage rates have average under 5.00%. In March of this year, the montly average was exactly 5.00% and that was the lowest in the history of the survey. We are currently sitting at an all time low for mortgage rates but it is all relative due to the limited amount of data. Unfortunately, we do not have accurate data before 1971 so we can only analyze what we have.
With this knowledge, one must ask the question, “Why is the housing market still so bad if mortgage rates are so low?” As I have said many times, mortgage rates could be at 0% and if Americans don’t have money to make monthly payments it is not going to matter. To make monthly mortgage payments you must have some source of income, this is not rocket science. With unemployment climbing towards 10% nationally where is this source of income going to come from for home owners?
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How Can I Make Money Tutoring High School and College Students
In today’s economy, most people would like to find ways to earn an extra dollar or two. One of the easiest ways to make money is to tutor high school and college students. Unfortunately tutoring is not for everyone. You must have great patience and the ability to relate well to others. The most efficient way to tutor someone in any subject is to relate it to terms and subjects that they understand the best.
The first thing you need to do if you want to tutor high school and college student is get your name out there. You can place an ad in the local newpaper or offer your service through Craiglist. If you do not get your name out there, you will have no chance at tutoring anyone. You may also want to contact the local colleges and high schools. Most schools have some sort of tutoring program that is often looking for bright minded people to help their students.
Tutoring can actually be a very lucrative part time job. Some subjects offer up to $25 an hour for expertise. Obviously these are very difficult subjects to comprehend like organic chemistry or differiential equations. If you feel you are capable of being a solid tutor, go for it. Often it is not how well you know the subject but how well you can help the student comprehend the information in terms they understand.
How Can I Make Money Betting on the Mavericks vs Spurs Playoff Games
The Texas showdown between the Mavericks and Spurs offers some very intriguing matchups. The styles are very different so the outcome is likely to be determined by who dictates the game with their style. It used to be the case that the Spurs were almost unbeatable in San Antonio but that has changed over the last few months. Injuries and age have caught up to the Spurs and they are a much different team than they used to be.
The Mavericks are also showing the signs of age, but seem to have more of a hop in their step than the Spurs. I personally do not think anyone feels that either of these teams are headed to the NBA Finals but they could cause some havoc in the playoffs. Making money betting on either of these teams will be determined by the pace of the game. If the game is fast paced and up and down the court, it is highly likely that the Mavericks will cover the spread. If the Spurs are able to slow the pace and force the Mavericks into a half court game, I would give the nod to the Spurs.
Ultimately, you will need to decide what pace you think they game will have. There is just no way that the Spurs will be able to keep up in a high paced game; their legs are just too old and tired. They can definitely win and win easily in a slower, half court game, but will the Mavericks let that happen. You ideas are well so please comment!
How Can I Make Money Betting on the Bulls vs Celtics Playoff Games?
Betting NBA Playoff games is definitely a quick way to make money. Is there any other way in the world where you can double your money in less than two and a half hours? This is the case with betting on spreads in any sport. Unfortunately it is not as easy as it sounds. If betting on any sport were easy it would not be available to the public. With that in mind, please do not go into the betting arena thinking you will make a quick million. It is possible but highly unlikely. That being said, how can you make money betting on the Bulls vs. Celtics?
There are many statisticians out there that like to crunch numbers and find trends in playoff basketball games. If you are one of those people, I highly suggest the site StatFox. You can find all the numbers and trends you desire at that site. There are many other sports betting statistical sites all over the internet that you will be able to find with a quick Google search.
If you are more into the psychology of sports, you may want to look at recent events. Some sports betters are highly successful by betting the “better story for TV” or “how many miles has the away team traveled in the last week.” There are millions of psychological factors that go into sports and you can use your imagine as to what effects teams the most. Making money betting on sports can involve psychological factors and it is important that you understand that.
Ultimately, you need to decide what your betting strategy is and stick to it. If you deviate from your strategy, you may lose all of your earnings in one game! We have probably all had a winning streak and tried something different that ended up putting us right back at the beginning. If you have a strategy that you believe will work in the Bull vs Celtics playoff games, stick to that strategy and make some money off these playoff games.
How Can I Make Money Playing Poker Online?
At one point or another in most of our lives, we are tempted by making money gambling in some form or fashion. It may be betting on sports, friendly betting, casinos or online poker to name a few. Making money playing poker online is not impossible; it is difficult, but not impossible. The first thing you must understand is that online poker is all run by computers, not people. A specific algorithm is set and will not change unless the owner of the online poker site changes it. If you see a trend with a specific online poker site that is because the algorithm is set that way. It is not ironic that three of a kind and full house come out every single time someone goes all in after the flop with a pocket pair.
If you can find a trend in the algorithm run with it! Do not fight the trend! It is the old adage in all betting, the trend is your friend. I actually have a mutual friend who creates a six figure salary playing poker online. He worked very hard for two years to save enough money to survive for at least a year and he studied the algorithms of different online poker sites. He has his rules set in stone and NEVER goes against them no matter what. This is the only true way to make money playing online poker.
You must have your set of rules for every situation. You cannot deviate from these rules because if you do, you could lose all of your earnings in one hand. Sometimes it will be hard to stick to these rules, but those who can do that will find that making money playing poker online is not impossible.
How Much Money Will I Save in Taxes on My Paycheck in 2009?
The Obama Stimulus Plan will help most people save money on taxes in 2009. Most average Americans will see approximately $13 less taken out in taxes, per week, on their paycheck. This equates to about $400 this year and even more in 2010 as the tax cuts did not take effect until April 1st. Some sites that offer calculators on how much money you will save with the 2009 tax cuts are as follows:
2009 Economic Stimulus Tax Comparison Calculator
If you make less than $250,000 a year, you are going to see tax cuts on your paycheck. $13 a week can add up pretty quickly if saved or put to good use. Some corporations are documenting the amount of money you save on your paystub. Over the next few years many Americans are going to be looking for ways to save and President Obama is doing his best to help. Even if all his tactics will not work, he is definitely putting for the effort for lower to middle class Americans.
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Stocks to Buy – April 20th – Vehicle Repair Provider Profits from Recession
In the first installment of stocks to buy we are suggesting a vehicle repair provider that is set to profit from the current recession. Back on February 27th, I picked LKX Corporation (LKQX) as one of my three March stock picks. Since then, LKQX has seen a steady rise of 21.8% in the last month and a half. Many of you may feel that the stock is overbought which may very well be the case, but for the long run, this stock should continue to see profits.
At a time when Americans are not buying new cars, they need somewhere to go to get used car parts. LKQX is the vehicle repair provider for many Americans. LKQX makes it easy by letting their customers walk around a “junk yard” and pick out the parts they need. This will be commonplace in America in the years to come as many car owners will do their best to keep their current car running rather than buying new.
Even if the economy turns around, LKQX is still positioned to profit. We all know how bad the big three carmakers are struggling. To ensure their existence as a company, the big three are cost cutting in excess amounts. Many of their vehicles are not being built to the same high standards they used to be. This is great news for LKQX as those few vehicles that are being bought today will need repairs sooner rathen than later. Either way, LKQX is the one of the great American stocks to buy.
Rio Tinto Shares Fall April 20th – Will BHP Billiton Buy Rio Tinto?
At the end of 2008, Rio Tinto pulled out of a bid from BHP Billiton stating that the tough economic environment was not suitable to complete a deal. On Monday, April 20th shares of Rio Tinto fell over three percent in fears of sharply lower price of iron ore which is their most “precious” metal. Another major concern is the outcome of a $19.5 billion tie-up with China’s Chinalco. Rio and BHP are negiogiating the price of iron ore with Asian steelmakers. Obviously the steel mills want a drastic cut in prices but both Rio and BHP feel that an economic recovery is in the near future so they want iron ore prices to stablize or rise.
BHP has refused to comment on any talks with Rio. BHP Billiton is the largest mining group in the world and it seems quite obvious that a combination of BHP Billiton and Rio Tinto is inevitable. Any current talks must involve specific assets rather than a complete takeover by BHP. UK takeover regulations state the BHP cannot submit a full takeover bid until at least November 2009.
For shareholders of these companies, it would be a wise decision to consolidate the market and combine the companies. The less competition, the higher the price of their specific commodities will go. Unfortunately, a complete takeover cannot be done until at least 2009 so it looks as if BHP is slowing buying assets from Rio until they can completely take it over in November of 2009. Another major factor that will play a huge role in this deal is the economy. If we do not see any signs of an economic recovery, the two metal companies may not come to grips with the deal.