The Weekly Rap! Friday Sept 5th, 2014

The National Debt is currently: $17,717,809,132,587.00  is Higher by another 32 BILLION.  The interest pay-out alone on the debt is 234 Billion per year!  I post this so we will be aware of what we are leaving to our children.

The Dow last traded at 17,089 right about where it was a week ago.  The S&P 500 is trading at 2,000.  Gold is trading at $1,266 an ounce, while oil futures at $93.06 a barrel.  Gas prices, (Regular in El Dorado Hills, Costco, AM/PM), are at $3.47/Gal. 

Mortgage Backed Securities or “MBS” yields are interest rates at which banks sell their loans into Fannie Mae and Freddie Mac bond programs. The FNMA 30-year fixed 3.5% coupon, containing 3.75% – 4.125% mortgages, pretty much the benchmark or how rate sheets are priced these days  is currently trading at 102.72 about .20 worse than where we were last week.  We have been trading in a fairly tight range since May with the low being 101.75 and the high being 103.00.  Basically each percent change in the price of the security translates to the price (or points paid or credited) of the mortgage rate.  The higher the number (price), the better the rate.     

In economic news this week; the reader’s digest version is the economy continues to plug along keeping its head above water.  It was a light week with the holiday.  Manufacturing and non-manufacturing were both reported higher. New job growth slowed a bit but the anticipation is that it is a temporary slowdown.

A survey of executives reported that manufacturing companies grew in August at the fastest pace since March 2011. The Institute for Supply Management said its manufacturing index climbed to 59% last month from 57.1% in July. Readings over 50% indicate more companies are expanding instead of shrinking. The ISM’s new-orders index rose to 66.7% from 63.4%, and production advanced to 64.5% from 61.2%. The employment gauge dipped to still-high 58.1% from 58.2%. Seventeen of the 18 industries tracked by ISM reported growth last month. Only textile makers reported a decline.

Services and other non-manufacturing companies also reported faster growth for August, with a gauge of their activity hitting the highest pace since 2008. The Institute for Supply Management said its gauge of non-manufacturers rose to 59.6% last month from 58.7% in July. Meanwhile, the employment barometer rose 1.1 points to 57.1%, and the gauge of business activity/production rose 2.6 points to 65%.

Employers in nearly all of the 12 Federal Reserve districts reported difficulties finding skilled workers, according to the latest Beige Book report on economic conditions released by the central bank.  There were shortages of skilled information technology workers in Boston, truck drivers in New York and construction workers in Atlanta.  While overall, the Fed districts reported little change in wages, there was stronger wage pressure for specific categories.  The Beige Book, designed to give the Fed Gods a feel for conditions in the economy, is a collection of reports from business contacts in the 12 Fed districts.

On the Real Estate front: no major real estate news was reported this week.

On the Employment front:  The pace of hiring downshifted in August to the slowest rate of the year, but the disappointing employment report did little to stunt a sense among most investors and economists that it’s a temporary blight unlikely to tarnish the nation’s improved growth outlook.  The deceleration in hiring last month ended a six-month streak in which the U.S. added at least 200,000 jobs a month, the best streak of job creation since 2006.

The U.S. created just 142,000 jobs last month to mark the smallest gain since December. That fell well short of the expected 228,000 gain.  Employment gains for July and June were also revised downward by a combined 28,000, the Labor Department reported.  The unemployment rate, meanwhile, fell a tenth to 6.1% to match a six-year low.  Although more people found work, a somewhat larger number of Americans also dropped out of the labor force.

I come from the school of thought is that there is no such thing as a mistake – it is just a great learning experience.   It looks like I am in good company at that school!

You can visit my corporate website at:


Bill Bartok

Personal Chef

Mortgage Advisor MLO# 445991


“Cooking your meals, and closing your deals”


The nicest compliment I can receive is the referral of your family, friends and co-workers.

Thank you!

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