AJ's ECONOMIC BUZZ           January 29^th, 2007

Alan "AJ" Nisen    My goal is to build lifetime relationships with every client!
Bank of America Mortgage
Direct:   1.925.963.5836
Work:    1.925.688.3820
Fax:        1.925.688.3829
aj.nisen@bankofamerica.com
www.nowville.com/aj.nisen

Last Week's Economic Retrospective:

Last week's economic news supported the Bonds downward price trend and the home loan rate upward trend. Most reports showed a stronger than expected economic data, pointing to signs of a strong economy.  Good economic news tends to be bad news for Bonds and home loan rates.  On good economic news, investors tend to sell bonds and buy stocks.  Stocks tend to have a better higher return in a strong US economy.  What was some of that good news last week?  New Home Sales came in better than expected and though Existing Home Sales were slightly less than expected, both showed improved inventory.  So last week, overall, home loan rates worsened by about 0.125%.

The year 2006 showed that existing home sale market was the 3rd best on record.  But, the media's spin was that the housing market crash they report on the steep drop from 2005 to 2006.  I disagree with their reporting.  The year 2005 was a record year.  It is only natural to see a drop off from the record levels in 2006.  And, I agree with many experts that the housing market bottom out in 2006.

This Week's Economic Forecast:

This week we have a number of market moving economic reports. We have Personal Consumption Expenditures (PCE) which measures inflation; the monthly Jobs Report; and the Fed interest rate decision and policy statement.  Recent economic reports seem to indicate that inflation is cooling, responding to the Fed's economy manipulation for that "soft landing".  This week, we also have new voting members in the Fed.  Will new voting members voice concerns about inflation?  If the reports of the week show inflation moving higher, or if Friday brings a hot jobs number, Bonds could again move lower and home loan rates move higher.

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Best Regards

AJ Nisen

Alan "AJ" Nisen, MBA, Notary

Thank you for your interest in starting a mortgage a conversation with me.  Remember, Bank of America has Industry leading low rates and is a full service bank. Bring me any mortgage offer to compete with to see what we can do for you.  I look forward to serving you in the future!