11/6/09

Good morning. Tomorrow morning the headlines will all read, “Unemployment Rate hits 26 year high at 10.2%”. Nonfarm Payroll was worse than expected and payrolls have declined for 22 consecutive months now – and even many who are back at work are either “under-employed” – working part time, or not making as much as they were. Manufacturing employment fell, construction was down, the service-providing sector cut 61k and goods-producing industries cut 129k. How will we have a recovery with those numbers? As one would expect, stocks fell on the news and bonds have rallied: Mortgage prices are a bit better this morning.
Yesterday the House voted 403-12 to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it today. “Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30. The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.”
http://www.google.com/hostednews/ap/article/ALeqM5hJJraNRE6DjWj2orF7SYJ12PADEAD9BPISHG0
Have a great weekend.