NELA Live

Dia de los Muertos

In contrast to the more commercialized Halloween ghouls, goblins and celebrity costumes (although I just can't wait to see all the crossdressers as Sarah Palin :-)  ),  Dia de los Muertos honors beloved ancestors, family and friends who have passed on.

Here is a collection of links to celebrations of Dia de Los Muertos in Los Angeles

Hollywood Forever Cemetary:  http://www.ladayofthedead.com/

Self Help Graphics: http://www.selfhelpgraphics.com/events/diadelosmuertos.php

Olvera Street: http://olvera-street.com/html/dia_de_los_muertos.html

Downtown L A Arts District:  http://www.yelp.com/events/los-angeles-9th-annual-festival-de-la-gente---downtown-la-barker-lofts---free-feat-bands-alters-more

UPDATE:  I'm adding a link to the article in Occidental Weekly suggested by Mayabeth: http://media.www.oxyweekly.com/media/storage/paper1200/news/2008/10/29/Features/Rituals.Remixed-3512290.shtml

Los Angeles Mortgage Rates Report: Lower Mortgage Rates Into November?

We analyze mortgage rates by examining the mortgage-backed securities market and its reaction to economic data and events.  Today, the Federal Reserve cut the Fed Funds rate to an historical low of 1%:

The Fed funds rate target is now 1%, the lowest level in more than four years. In announcing its decision, the Federal Open Market Committee cited a drop in spending by consumers and businesses, and predicted that consumption may slow further due to tighter lending standards.

"The pace of economic activity appears to have slowed markedly," the FOMC said in a statement, "owing importantly to a decline in consumer expenditures."

Why's the economy in the tank?  You just aren't spending enough money, Joe the Plumber.  Of course, you can't borrow any either so you're hesitant about spending.   Hence, the Fed cut in rate.  Normally, a Fed cut should be followed by a RISE in mortgage rates but it looks like the mortgage-backed securities market anticipated the cut a week ago. 

Let's take a look the crystal ball (market chart):

See what's happening here?  Two weeks ago, we had a six day BIG drop, which caused rates to rise from 5.875% to 6.5%.  That drop was followed by a 5 day rally, which brought rates back down to 5.875%. Then, we had a six day BIG drop, driving mortgage rates back up to 6.5% (today)...

...and I think the market overreacted which means I think we'll see lower mortgage rates into the beginning of November.

This is the kind of volatility we've come to expect.  Mortgage rates should drop to 6.25%, pause, then drop again to the 6% level or below. No guarantees but November closings should get a peek at 6% or better rates soon.

We analyze mortgage rates by examining the mortgage-backed securities market and its reaction to economic data and events.  Today, the Federal Reserve cut the Fed Funds rate to an historical low of 1%:

The Fed funds rate target is now 1%, the lowest level in more than four years. In announcing its decision, the Federal Open Market Committee cited a drop in spending by consumers and businesses, and predicted that consumption may slow further due to tighter lending standards.

"The pace of economic activity appears to have slowed markedly," the FOMC said in a statement, "owing importantly to a decline in consumer expenditures."

Why's the economy in the tank?  You just aren't spending enough money, Joe the Plumber.  Of course, you can't borrow any either so you're hesitant about spending.   Hence, the Fed cut in rate.  Normally, a Fed cut should be followed by a RISE in mortgage rates but it looks like the mortgage-backed securities market anticipated the cut a week ago. 

Let's take a look the crystal ball (market chart):

See what's happening here?  Two weeks ago, we had a six day BIG drop, which caused rates to rise from 5.875% to 6.5%.  That drop was followed by a 5 day rally, which brought rates back down to 5.875%. Then, we had a six day BIG drop, driving mortgage rates back up to 6.5% (today)...

...and I think the market overreacted which means I think we'll see lower mortgage rates into the beginning of November.

This is the kind of volatility we've come to expect.  Mortgage rates should drop to 6.25%, pause, then drop again to the 6% level or below. No guarantees but November closings should get a peek at 6% or better rates soon.

REAL ESTATE MARKET STATS 10/19 - 10/25

Real Estate Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for the previous week as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed 

These zip codes include the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon. 

Los Angeles Mortgage Rates Report: October 27, 2008

Friday, Los Angeles mortgage rates jumped from 5.875% to 6.25% as mortgage-backed securities traders joined the world wide sell-off. Global stock markets plunged Friday and the Asian markets were weak for Monday.  Investors world wide don’t want to be invested in ANYTHING.

When the world panics, we FLOAT mortgage rates.  So, roll the projectors!  The movie “Float Club” is playing all week.

Interestingly enough, gold isn’t skyrocketing in price.  Long held as a “safe haven” during times of turmoil, investors are opting to hold their portfolios in cash instead:

Bullion is down 15 percent this month as the dollar climbed to a two-year high against the euro and the Standard & Poor’s 500 Index headed for its steepest monthly loss since 1938.

`We’re seeing some consolidation in the market today as investors pause for breath following the roller-coaster we had last week,” Zhu Lv, research manager at Shanghai Tonglian Futures Co., said from Shanghai today.

Gold for immediate delivery gained as much as 1.7 percent to $746.91 an ounce, and traded at $735.33 at 10:29 a.m. in Singapore. The metal fell below $700 on Oct. 24. Silver for immediate delivery was up 1 percent at $9.4575 an ounce.

Gold still benefits from its safe haven properties, although these days, more and more are choosing to hold just cash instead, so it won’t be surprising to see gold below $700 again,” said Zhu.

What’s that mean?  It means that while investors are cautious, they aren’t completely terrified and that bodes well for mortgage-backed securities.  When investors buy mortgage-backed securities, Los Angeles mortgage rates drop; that’s what we think will happen in the next 7-10 days.

I cautioned borrowers to lock in all October closings last week when mortgage rates dipped below 6%.  That opportunity had a short-lived window.  Like all panics, reason eventually prevails. Central banks world wide are slashing interest rates to avoid an economic recession.  This make US dollar denominated investments, especially mortgage-backed securities more attractive.

Hold out for a mortgage rate below 6% if you’re closing in November.

Originally posted on Millionaire Real Estate Lender

Friday, Los Angeles mortgage rates jumped from 5.875% to 6.25% as mortgage-backed securities traders joined the world wide sell-off. Global stock markets plunged Friday and the Asian markets were weak for Monday.  Investors world wide don’t want to be invested in ANYTHING.

When the world panics, we FLOAT mortgage rates.  So, roll the projectors!  The movie “Float Club” is playing all week.

Interestingly enough, gold isn’t skyrocketing in price.  Long held as a “safe haven” during times of turmoil, investors are opting to hold their portfolios in cash instead:

Bullion is down 15 percent this month as the dollar climbed to a two-year high against the euro and the Standard & Poor’s 500 Index headed for its steepest monthly loss since 1938.

`We’re seeing some consolidation in the market today as investors pause for breath following the roller-coaster we had last week,” Zhu Lv, research manager at Shanghai Tonglian Futures Co., said from Shanghai today.

Gold for immediate delivery gained as much as 1.7 percent to $746.91 an ounce, and traded at $735.33 at 10:29 a.m. in Singapore. The metal fell below $700 on Oct. 24. Silver for immediate delivery was up 1 percent at $9.4575 an ounce.

Gold still benefits from its safe haven properties, although these days, more and more are choosing to hold just cash instead, so it won’t be surprising to see gold below $700 again,” said Zhu.

What’s that mean?  It means that while investors are cautious, they aren’t completely terrified and that bodes well for mortgage-backed securities.  When investors buy mortgage-backed securities, Los Angeles mortgage rates drop; that’s what we think will happen in the next 7-10 days.

I cautioned borrowers to lock in all October closings last week when mortgage rates dipped below 6%.  That opportunity had a short-lived window.  Like all panics, reason eventually prevails. Central banks world wide are slashing interest rates to avoid an economic recession.  This make US dollar denominated investments, especially mortgage-backed securities more attractive.

Hold out for a mortgage rate below 6% if you’re closing in November.

Originally posted on Millionaire Real Estate Lender

Above The Rainbow Jewelry

Well, here's a project I started fiddling around with about a year ago, so I guess I can't blame the delay on the lack of a DSL connection for over a week.  :-)

But I finally got a few of my friend Lilian's jewelry pieces set up in an Etsy shop.  You can check it out at http://abovetherainbow.etsy.com

Over the last few days (my unplugged days) I got a few other pieces photographed.  Now I just need to get those photos edited and uploaded.  :-)

OPEN HOUSES FOR SUNDAY OCTOBER 26

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L.A. Westside MLS

Featuring Open Houses in the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.   

REAL ESTATE MARKET STATS 10/12 - 10/18

Real Estate Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for the previous week as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed 

These zip codes include the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.   

OPEN HOUSES FOR SUNDAY OCTOBER 19

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L.A. Westside MLS

Featuring Open Houses in the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.   

Presidential Debate

Here's the link to CNN's transcript of last night's final Presidential debate between Barack Obama and John McCain:  http://www.cnn.com/2008/POLITICS/10/15/debate.transcript/index.html

For curious readers:  I kept two TVs on last night.  One tuned to the debate, one tuned to the Dodger game.  However as it became increasing apparent that the Dodger game was headed to an unfortunate end, I focused more attention on the debate.

Inspiration House Poetry: Final Performance

This will be the fourth and final performance of our series The Black/Brown Dialogues

Commissioned by Kathy Gallegos, Director of Avenue 50 Studio, "The Black/Brown Dialogues", featuring Inspiration House PoetryChoir, honors healthy and ethical cultural dialogue between the African and Latino communities, at one of Latino LA's most important independent galleries.  Using the Inspiration House PoetryChoir format, poets read their work while master musicians improvise musical responses to the poetry, blending words, intonations, audience responses, and dynamic silence into a sonic tapestry that's entrancing and exhilarating.  The poetry series is curated by Peter J. Harris, artistic director, Inspiration House, which produces work dedicated to leaving its audiences renewed and recommitted to cultural work that contributes to the creation of a humane society.

Featuring Music by

Maria Elena Gaitan, cello
Robert S. Hilton, slide harp
Curtis Robertson, Jr., acoustic bass

& Spoken Word by

Peter J. Harris
Amalia Ortiz
Francisco Letelier
Imani Tolliver

WHEN:

Saturday, October 25, 2008, 7 p.m.

WHERE:

@ Avenue 50 Studio
131 N Avenue 50, Highland Park, LA 90042 (323) 258-1435 www.avenue50studio.com
(cross street Figueroa)

WHY:

To honor healthy and ethical cultural dialogue between humans of African and Latin descent, at one of Latino LA's most important independent galleries.

Peter J. Harris
Artistic Director
INSPIRATION HOUSE
www.inspirationcrib.com
temadeyana@sbcglobal.net
818-415-0420

Decisions, Decisions

So do I watch the Dodgers tonight, Game 5 at 5:22 PM Fox (Channel 11 in L.A)

Or do I watch the final presidential debate ?

Two TVs?  (I don't have a modern TV where you can watch multiple channels in different windows.)

Or how about Dodgers on the radio, debate on TV?  Or vice versa?  Or recording the debate?  (No use recording the game, if the Dodgers lose, nobody's gonna wanna watch it anyway.)   :-)

Los Angeles Mortgage Rates Report: October 14, 2008

If you're closing your loan after Friday, I left you naked (not locked).  I told you that the fundamentals of the economy would bring Los Angeles mortgage rates lower after the bailout was announced.  Rates were at 5.875%, today they're at 6.5%.  What's in store for the rest of the month?

Eric Holloman of Rate Link offers this two-minute research report about why "headline risk" should be replaced by economic data as a determination of mortgage-backed securities pricing.  If he's correct (and I think he is), the next three days will be important for the direction of mortgage rates through the end of the year.

I'm still recommending that you float your mortgage rates; I believe we'll see rates come back down under 6% within the next 7-10 days.  If the economic data suggest that we are NOT headed for a recession,mortgage  rates will stay in the 6.25-6.75% range.  If the data are as indicative of a downturn as I think they will be, lower rates should be on the horizon.  As always, keep checking back.

Originally posted on Long Beach Real Estate Home

If you're closing your loan after Friday, I left you naked (not locked).  I told you that the fundamentals of the economy would bring Los Angeles mortgage rates lower after the bailout was announced.  Rates were at 5.875%, today they're at 6.5%.  What's in store for the rest of the month?

Eric Holloman of Rate Link offers this two-minute research report about why "headline risk" should be replaced by economic data as a determination of mortgage-backed securities pricing.  If he's correct (and I think he is), the next three days will be important for the direction of mortgage rates through the end of the year.

I'm still recommending that you float your mortgage rates; I believe we'll see rates come back down under 6% within the next 7-10 days.  If the economic data suggest that we are NOT headed for a recession,mortgage  rates will stay in the 6.25-6.75% range.  If the data are as indicative of a downturn as I think they will be, lower rates should be on the horizon.  As always, keep checking back.

Originally posted on Long Beach Real Estate Home

REAL ESTATE MARKET STATS 10/05 - 10/11

Real Estate Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for the previous week as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed 

These zip codes include the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon. 

OPEN HOUSES FOR SUNDAY OCTOBER 12

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L.A. Westside MLS

Featuring Open Houses in the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.   

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L.A. Westside MLS

Featuring Open Houses in the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.   

Second Saturday Gallery Night October 11

The second Saturday of every month is Gallery Night in Northeast Los Angeles:  Your opportunity to explore the Galleries, Shops, Restaurants and Nightlife in the historic and eclectic neighborhoods of Northeast Los Angeles.  Maybe even purchase art for your home or office.

Tour participating galleries this Saturday, October 11 from 7PM - 10 PM.   Wrap up the evening with food and drinks at Juanita's/La Casa Blue or Mr. T's Bowl.

October Highlights:

Avenue 50 Studio, Inc.
a 501(c)(3) non-profit art gallery
131 North Avenue 50
Highland Park, CA  90042
323-258-1435

The Avenue 50 Studio presents an exhibition in honor of Dia De Los Muertos, "Secretos y Cartas de los Muertos".  This innovative art exhibit has as its premise the intimate letters, some containing secrets, purportedly written by individuals who have passed on from the physical to the spiritual world.  With the traditional theme of Dia de los Muertos serving as the foundation, the artists have written and/or illustrated these new letter works revealing secrets.  Along side the visual artists, writers Tiffany Ana Lopez and Gloria Alvarez have worked collaboratively with several artists to create insightful letters from the dead.

===

Cactus Gallery
4534 Eagle Rock Blvd. Eagle Rock (LA), CA 90041
323.256.6117

4th Annual Dia de los Muertos (Day of the Dead) celebration.
Direct link :: http://www.eclecticcactus.com/nextshow.htm

SKULLZ is a huge group show featuring oil and acrylic paintings on canvas and wood, 3D works, mixed media works, photography, printmaking, an altar installation and candies!!

Skulls are seen as icons and emblems of death; reminders to lead a moral life. More recently, skulls have taken on a pop importance as symbols of recklessness, piratry and teenage angst. COME CELEBRATE LIFE !!

NELAart.org SECOND SATURDAY Gallery Night :: Saturday, October 11th :: 7-10pm :: DJ SOUL JUNKIE will work the turn tables.

Artist Reception :: Saturday, October 25th :: 7-10pm :: DJ SOUL JUNKIE will work the turn tables.

Artisan designed and created jewelry and art objects. ART FINANCING and GIFT CERTIFICATES available.

===

Bholanath Foto Studio & Urban Art Gallery
6042 Monte Vista St LA CA 90042
October 11 2008
7pm - 11pm

NELA Art Walk Art Show & Birthday Party! October 11 2008

Celebrate Editorial Photographer from Japan "Tatsu" 29th Birthday

Designer Clothing Sale
Contemporary Graffiti art
Live Music
Japanese Appetizers
Wine & Sake BAR
Azuki Cake & Kuro Goma Ice Cream


For more Info Contact
Kuris Ikeda
323.601.7549

===

NELAart SECOND SATURDAY GALLERY NIGHT AT THE SOUTHWEST MUSEUM

234 Museum Drive, Los Angeles, CA 90065  (323) 221-2164

Featuring Connie Rohman, Carpe Diem, Abraham Engles Journal, and Ego Sum Pauper
Opening Reception
Saturday, October 11, 2008, 7-10pm

Fiber artist Connie Rohman, a long time resident of Mt. Washington, has been reinventing the landscape of fiber art for 12 years. She over-dyes a wide variety of fabric ranging from high-end silks to vintage cotton scraps that she collects at thrift stores and combines the brilliantly hued cloth in nontraditional ways that challenge viewers to look at the genre differently. Meet the artist and join us for art, conversation, Mexican chocolate and pan dulce. The museum store will also be open.

REAL ESTATE MARKET STATS 09/28 - 10/04

Real Estate Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for the previous week as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed 

These zip codes include the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.

OPEN HOUSES FOR SUNDAY OCTOBER 5

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L.A. Westside MLS

Featuring Open Houses in the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon. 

FHA Hope For Los Angeles Homeowners

The FHA Hope for Homeowners loan program was released this month. The stated goal of the plan is to help homeowners, who are paying mortgages that are significantly more expensive than when they bought the home (due to rate adjustments), get a home loan they can afford.

Key components of the FHA Hope For Homeowners loan program are not limited to but include:

• An appraisal will be performed and the maximum loan amount will be 90% of that appraised value.  All subordinate liens will be extinguished and the exiting lienholder will have to agree to a loss of principal.
• The current housing payment must be more than 31% of the homeowner’s gross monthly income.
• The homeowner must not have misrepresented his/her income on the original loan application.
• The homeowner must get a new 30-year fixed rate loan and qualify based upon documented income.
• The homeowner must agree to an declining equity sharing agreement (for the existing equity), with the FHA, for a specified period of time.
• The homeowner will share in future appreciation with the FHA.
• The program is completely voluntary; existing lienholders don’t have to participate.

Mary Miller compiled some comments from Mortgages Unzipped authors which demonstrates the difficulty of the program. Loan originators may be hesitant to work with you because of the low probability of a successful funding.  That low probability is due to the fact that existing lienholders may have to take significant writedowns.  I wouldn’t blame an originator who refuses to participate in the FHA Hope For Homeowners Program; loan originators aren’t paid on unsuccessful fundings.

Nonetheless, we welcome loan applications, under the FHA Hope for Homeowners, for Californians in “upside-down mortgages”.  We recently hired a team member with the skill set to work with lenders’ loss mitigation departments.  That specific expertise, combined with our long history as a HUD lender, leads us to believe that we can assist folks who desperately want to retain their California home.  We offer this program with a few conditions:

• We must determine your maximum qualified loan through full income documentation at application.  If you can qualify for a loan amount that might be a reasonable offer to the existing lienholder, we’ll proceed to an appraisal.
• You must pay for the appraisal and credit report upfront; that should be about $500.  The appraised valuation is a key component of the program so that valuation must be established prior to the offer to the existing lienholder.
• We expect to earn a 2% fee, whether paid by you or the new lender ( through yield spread premium). That’s twice the amount we earn for new loan originations.  We think this higher fee is reasonable considering the amount of work required and the low probability of loan funding.  We only receive this fee if we are successful in funding your new loan.

The FHA Hope for Homeowners Loan program offers Californians a chance to stay in their homes at a reasonable price.  If your intention is to live in your home for 5-10 years, this may be a workable solution for you.

While the plan isn’t perfect we know that certain sub-prime lenders have sold their loans at a significant discount and will welcome any and all offers that allow them to make a profit.  For example, if you have a loan with First Franklin, this program might make sense for you.  First Franklin was purchased by Merrill Lynch, in early 2007.  Merrill Lynch sold these loans, for 33 cents on the dollar, this past summer.  What that means is that they sold your $500,000 loan to an investor for $165,000.  If we have to approach First Franklin’s loss mitigation department with a $350,000 payoff for that $500,000 loan, the new investor stands to more than double his money in a few months.  That’s a reasonable proposition to entertain.

Not all loan servicers will be that cooperative, though.  We believe that our connections with Wall Street and secondary mortgage market investors will be a distinct advantage to you, the beleaguered California homeowner.  The FHA Hope for Homeowners Loan program isn’t perfect but it may offer you significant relief.  Please contact me if you have questions about it.

Originally posted on Mortgages Unzipped

Saturday, Oct. 4 Artist Reception "Living in Los Angeles"

Dear Friends of the Arts,

Please join us for a wonderful celebration of Art, Music and Community in Historic Highland Park.
 
 
Rock Rose Art Gallery
4108 N. Figueroa St.
Historic Highland Park, CA 90065

Saturday, October 4th, 2008
Voter Registration 6- 9 p.m.
Artist Reception "Living in Los Angeles"
1st OBAMA billboard in Northeast los Angeles
Lighting ceremony 7:30 pm
Party with Rock The Vote Concert 7:45 pm
"Pretentious Pidgins & Comedian Josh di Donato"
 
CLICK BELOW FOR ARTISTS IMAGES 
WWW.ROCKROSEARTGALLERY.COM
 
For info call Rosamaria (323) 635-9125 

Saturday In NELA

Looking for something to do today?  Waltarrrrr's got it covered at 90042.

Meanwhile, I am off to ponder the comparision between Secretary of Treasury Henry's Paulson original 3 page proposal  to the 451 page final bill, H.R. 1424  that was signed into law yesterday.

Los Angeles Mortgage Rates Report: October 3, 2008

The bailout bill passed the House after a decisive victory in the Senate; it is certain to be signed into law by President Bush.  From Bloomberg.com:

These steps represent decisive action to ease the credit crunch that is now threatening our economy,” President George W. Bush said at the White House after the vote. He said he will sign the bill into law when he receives it. House Speaker Nancy Pelosi said the measure has been sent to him.

The House approved the measure in a 263-171 vote, four days after rejecting an earlier version. The bill’s defeat on Sept. 29 caused a 778-point drop in the Dow Jones Industrial Average, prompting dozens of lawmakers to reverse their vote on the legislation, the government’s largest intervention in the markets since Franklin Roosevelt’s New Deal.

I expect the mortgage-backed securities market to gradually improve.  The euphoric response that followed the Nationalization of Fannie Mae and Freddie Mac was a result of pent-up anxiety about the explicit government guarantee of their debt.  This “bailout” is different than the Fannie/Freddie bailout.  While this bailout will provide support for battered mortgages, which should result in lower mortgage rates, it is clearly a signal that the Federal government will assume a lot of losses.

What worries me (and mortgage-backed securities traders) is the propensity for other governments to stick their hand out and ask for help:

California Governor Arnold Schwarzenegger today warned that his and other states may need emergency loans if a $700 billion financial-rescue package isn’t passed by Congress soon.

If this bailout restores order to the credit markets, California should be able to raise money through tax-advantaged municipal bond offerings.  If this bailout is insufficient to cure the credit crunch and states need to turn to the US Treasury to solve their cash flow problems, credit markets have seized to the point of financial Armageddon.

You can safely delay mortgage locks if your closing after October 17th.  Delaying your lock is a bit different from a “float” recommendation.  It means that you should expect lower rates and jump on one when you feel it’s “good enough”. The market should remain volatile.  The par rate (with no yield spread premium to the originator) should drift as low as 5.625% in the next 60 days but it may have to go through 6.125% to get there.  If you’re planning on refinancing your home loan, get your documentation in line, watch the mortgage rates reports carefully, and jump on the opportunity when it presents itself.

MBS traders know in their heart that the bailout package and weakened employment data will lead to lower mortgage rates but every bump in the road (like the California request) will give them reasons to sell.

Delay your lock if you have time; lock those rates if you’re closing in 14 days.

Originally posted on Millionaire Real Estate Lender

Avenue 50 Studio: Secrets and Letters from the Dead

"Secretos y Cartas de los Muertos"   "Secrets and Letters from the Dead"

The Avenue 50 Studio presents an exhibition in honor of Dia De Los Muertos, "Secretos y Cartas de los Muertos".  This innovative art exhibit has as its premise the intimate letters, some containing secrets, purportedly written by individuals who have passed on from the physical to the spiritual world.  With the traditional theme of Dia de los Muertos serving as the foundation, the artists have written and/or illustrated these new letter works revealing secrets.  Along side the visual artists, writers Tiffany Ana Lopez and Gloria Alvarez have worked collaboratively with several artists to create insightful letters from the dead.

Letters written by our departed loved ones hold a special meaning for us as constant reminders of the lives they have led, and of their profound impact on our lives.  Some of us may live in fear of our secrets being exposed, while others are secure in knowing that no one will ever know what our secrets might be.  What if we were given the opportunity to discover and reveal secrets or letters from those who are longer with us?

The text and images in this exhibition will allow our artists to reveal Secretos y Cartas de los Muertos.

Artists:  David Avalos, Laura Alvarez, Linda Arreola, Gloria Alvarez & Jose Lozano, Barbara Carrasco & Tiffany Ana Lopez, Mita Cuarón, Jorge del Toro, Ofelia Esparza, Harry Gamboa Jr., Margaret Guzmán, Jose Hernandez & Eloise Martinez, Leo Limón, Alma Lopez, Elizabeth Perez, Sandy Rodriguez, Nathalie Sanchez, Eloy Torrez, Cristina Miguel-Mullen, John Valadez

Guest Curated by Barbara Carrasco

Opening Night Reception:  Saturday, October 11, 2008 from 7-10 pm

Where:

Avenue 50 Studio, Inc.
a 501(c)(3) non-profit art gallery
131 North Avenue 50
Highland Park, CA  90042
323-258-1435

http://www.avenue50studio.com