"ALL GOOD THINGS MUST COME TO AN END..."

Or so the popular saying goes. And last week, the Fed reiterated once again that their Mortgage Backed Security (MBS) purchase program...the program that has helped keep home loan rates low for much of the last year...will end on March 31, 2010 as previously stated. Here's the lowdown on what this means, and all the latest news impacting home loan rates and the markets.

"IT'S A RECESSION WHEN YOUR NEIGHBOR LOSES HIS JOB; IT'S A DEPRESSION WHEN YOU LOSE YOURS." Harry S. Truman.

Very true words indeed - and last week brought some market action when Fed Chairman Ben Bernanke discussed the recession, commenting that our economic recovery still faces "formidable headwinds." As you can see in the chart below, the current recession we have been in has been the longest in nearly half a century.
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Chart: Post World War II Recessions

“Your dreams are alive...they live through you...take good care of them.” -- Kobi Yamada

Home Maintenance Tip - HEALTH & SAFETY: Safety Tips for Holiday Decorating The holiday season is here...and with the holidays comes decorating! The following tips and suggestions will help ensure safety as you get in the holiday spirit. Decorate only with lights that have a NOEL or U/L testing agency label. Check wires, plugs and sockets for signs of wear or defects. Remember: If in doubt - throw them out. Do not overload outlets and extension cords. Never tie together more than three extension cords. Be sure decorative lights used outside are approved for outdoor use. When decorating outdoors, be aware of all power lines. Don't work near overhead power lines or anywhere there is a possibility of contacting an overhead power line, either directly or indirectly, with a ladder or other piece of equipment. Place Christmas trees away from fireplaces, radiators, television sets, and other sources of heat that may prematurely dry out the tree and make it more susceptible to fire. Make sure the tree has a sufficient amount of water at all times. Don't burn wrapping paper or boxes in the fireplace. These types of materials ignite quickly and may burn uncontrollably. HOUSEHOLD TIP: Calculating Holiday Energy Costs It's that time of year when houses shine a bit brighter. Ever wonder how much the decorative holiday lights add to a monthly electric bill? Here's an easy way to help calculate energy costs this holiday season. Count the bulbs on all of your decorative indoor and outdoor lights. Check the wattage per bulb. Multiply watts per bulb by number of bulbs. (1 watt per bulb x 1,000 bulbs = 1,000 watts). Convert watts to kilowatts - 1,000 watts = 1 kilowatt (kw). Estimate the hours per month the lights are on. (5 hours per day x 30 days = 150 hours) Multiply the total kilowatts by the total number of hours the lights will be on to get the total kilowatt-hours (kwh). For example, 1 kw x 150 hours = 150 kwh. Multiply the total kilowatt-hours by the total cost of electricity per kwh. (150 kwh x $0.14 per kwh = $21) In this example, the cost of holiday lighting would be an additional $21 per month. Reprinted with permission of RISMedia, publisher of Real Estate Magazine

"HI HO, HI HO, IT'S OFF TO WORK WE GO!"

And even those who have been feeling grumpy about the weak labor market found something to smile about last Friday. The official Jobs Report for November was released - and the improving numbers were a big surprise to the markets.

According to the Labor Department, only 11,000 jobs were lost in November, despite expectations of 125,000 jobs lost. As you can see from the chart below, this marks the least number of jobs lost in nearly two years - since December 2007. Adding to the favorable news, the Unemployment Rate improved to 10.0%, when expectations were for it to remain at the 10.2% level.

While the news was good for the economy and helped Stocks improve sharply, it wasn't so favorable for Bonds...and as a result, home loan rates moved slightly higher on the news, continuing their worsening trend for the week overall.

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Chart: 2009 Job Growth/Losses (In Thousands)

In other news, based on early numbers, 195 Million shoppers hit the stores and websites on Black Friday, which was up from last year's 172 Million. Cyber Monday - the online equivalent of Black Friday - also showed an increase in web shoppers, up by 6% from last year. It appears that the shopping traffic was up, but the dollars-per-shopper may be down a bit. This might be indicative of not only consumers being conservative...but also the fact that with all the deep sales taking place to incent buyers, fewer dollars may be spent to get the very same merchandise as a year ago.