Market update for the week of January 9, 2012

Tuesday, January 10, 2012

QUOTE
OF THE WEEK..."Opportunities
are disguised by hard work, so most people don't recognize them."--Ann
Landers

INFO
THAT HITS US WHERE WE LIVE...The latest opportunity in real estate came
December 28, when the Federal Housing Administration extended the waiver
of its "anti-flipping" rule through the end of 2012. This lets homebuyers, who
need FHA-insured financing, purchase homes that were bought by the seller in the
last 90 days. And it gives investors looking to rehab and flip
properties an expanded market, including first-time homebuyers and others
without large down payments, who need FHA-backed loans.

The Mortgage
Bankers Association (MBA) reported that during 2011, near-record-low mortgage
rates drove more homeowners to seek refinancing, moving that MBA index up
more than 60%. But demand for purchase loans fell versus 2010, although that
year's activity was boosted by the homebuyer tax credit
incentives.

BUSINESS TIP OF THE WEEK...It's great to get organized
at the start of a new year. The key is to begin. Focus on just one project. Then
break it down into smaller parts and accomplish one thing each day, or week,
until done!

>> Review
of Last Week

UP
START...For
investors, 2012 began in the right direction as stocks ended the first week
of the year UP. But this result was due mainly to an upsurge on Tuesday that
was big enough to offset tepid performances the next three days, when traders
got jittery over Europe. Spain was in the spotlight again, with new player
Hungary now adding to the financial uncertainty. The net result was a weaker
Euro, falling about 0.6% to a new 16-month low of $1.27. Time to take that
European vacation.

Encouragement came with manufacturing growing
in December at its fastest pace in six months. Weekly initial jobless claims
dropped again, to 372,000. The December employment report was an upside
surprise, with 200,000 new nonfarm jobs showing up and the unemployment rate
inching down to 8.5%. But a few observers were concerned there's
probably some seasonality in those numbers. ISM Services, which tracks the
sector responsible for over 80% of U.S. jobs, came in a little lower than
expected, although still in growth territory.

For the week, the Dow
ended UP 1.2%, at 12360; the S&P 500 closed UP 1.6%, to 1278; and the Nasdaq
gained 2.7%, to 2674.

The bond market elicited mixed results for the
week, with Treasuries trending lower, but continuing Euro worries supported
prices elsewhere. The FNMA 3.5% bond we watch ended the week UP .78, at
$103.05. Average fixed mortgage rates across the U.S. started the new year
at or near record lows as tracked by Freddie Mac's weekly survey.

DID YOU
KNOW?..."Home on the Range" is one of the most famous songs with
"home" in its title. It was written by Dr. Brewster Higley in 1876 and is the
official state song of Kansas.