Gary`s Blog in South Jersey

Economic Highlights for the Week Ending November 6, 2009

Volume 15, Number 42 Economic Highlights for the Week Ending November 6, 2009

MONDAY, November 2nd
The ISM manufacturing index shot up to 55.7% in October from a reading of 52.6% in September. Production, employment and inventories all gained during the month. This is the third straight month of expansion in manufacturing activity to its highest level since April 2006. Details in these data also remain favorable for future growth.
The pending home sales index gained 6.1% in September to 110.1, after a 6.4% gain in August to a level of 103.8. September's gain was the eighth consecutive move higher indicating existing home sales will likely rise again in October and November. Improved housing fundamentals and the first-time buyer tax credit has resulted in the recent surge in the number of signed sales contracts.
Construction spending jumped 0.8% in September, much better than expectations for a 0.3% decline. The unexpected, strong gain does however follow downward revisions in the previous two months. After a long and substantial 3-year decline, construction spending appears to have stabilized at a very low level. Further weakness in the non-residential and public sectors is expected in the months ahead while recovery in the residential sector is expected to be quite slow.

TUESDAY, November 3rd
Motor vehicle sales rose 13.5% in October to an annual rate of 10.5 million units. The sales gain was a result of dealers stocking showrooms with new models, available for the first time. Despite the jump, vehicle sales remain weak and will probably not contribute to Q4 GDP.

WEDNESDAY, November 4th
The MBA mortgage applications index gained 8.2% to 608.1% for the week ending October 30. This was the first increase in the last four weeks. The purchase index slipped 1.8% and remains 4.1% lower than its year ago level. The refinance index gained 14.5% on the week and was up 150.5% over this time last year. It is not that refinancing levels are so strong right now; but that they are being compared to one of the worst periods for mortgage activity on record. Low rates should continue to support refinancing activity going forward and an extension of the first-time buyer tax credit until April 2010 (passed by the Senate today) will help boost purchase activity in the next several months.
The ISM Non-manufacturing survey fell to 50.6% in October from a level of 50.9% in September. The survey level is hovering just above the key 50% level indicating very mild expansion in the service industries. After grinding to a halt last year during the financial crisis, service sector activity has begun to grow once again.
As widely expected the FOMC voted to keep rates in an exceptionally low range of 0% to 0.25% in order to support ongoing recovery in the economy. The policy statement was released at the conclusion of their two-day meeting today. Assessments of the economy were little changed from their last meeting with the Committee acknowledging continued improvement but still slow expansion. Because of continued economic weakness, inflation is not a major concern for the Fed at this time. Policymakers did start to unwind liquidity measures taken in response to financial and credit market crisis in the past year. The Fed's purchases of Treasury securities concluded at the end of October, as planned, while agency MBS and agency purchases, now with a $175 billion limit compared to an upper limit of $200 billion previously will conclude by the end of the first quarter.

THURSDAY, November 5th
Jobless claims fell 20k to 512k for the week ending October 31. This was the lowest level of initial claims since January. Claims may be entering into a new lower range closer to 500k than 550k. It will take several more weeks at this level or lower to establish marked improvement in labor market conditions. For now, it is clear that layoffs have waned but hiring has yet to begin.
Productivity surged at a 9.5% rate in Q3 compared to expectations for a 6.5% gain. The larger-than-expected productivity gain is attributable to strong output gains amid fewer hours worked. Unit labor costs fell sharply last quarter, down 5.2% as business cut employment even as output continued to climb.

FRIDAY, November 6th
Payroll employment fell by 190k in October, more than market expectation for a decline of 175k. Nevertheless, upward revisions in the previous two months resulted in 91k fewer payroll losses. Over the past year, 5.5 million jobs have been lost; counting from the onset of recession in December 2007, the economy has shed 7.3 million jobs, the most since WWII. Thankfully, the pace of payroll declines has eased considerably in recent months. Separately, the unemployment rate jumped to 10.2% of the workforce.

Stock Market Close for the Week
Index Latest A Week Ago Change
DJIA 10023.42 9712.73 +310.69 or +3.3%
NASDAQ 2112.44 2045.11 +67.33 or 3.3%

WEEK IN ADVANCE
The holiday shortened week yields little in the way of data to further an improved outlook; however, many Fed policymakers are slated to speak which may fill in the gap. Also, the Treasury is set to auction $81 billion in notes and bonds with a funding announcement on Thursday.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 3.25 3.25 4.00
Fed Discount 0.50 0.50 1.25
Fed Funds 0.13 0.21 0.24
11th District COF 1.272 1.627 2.679
10-Year Note 3.50 3.23 3.82
30-Year Treasury Bond 4.40 4.15 4.22
30-Yr Fixed (FHLMC) 4.98 4.84 6.20
15-Yr Fixed (FHLMC) 4.40 4.51 5.88
1-Yr Adj (FHLMC) 4.47 4.78 5.25
6-Mo Libor (FNMA) 0.56438 1.56500 3.12125
Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

New and extended tax credit info update....

President Signs Legislation to Extend and Expand Tax Credit
Today President Obama signed HR 3548 or The Worker, Homeownership, and Business Assistance Act of 2009, a bill that extends unemployment benefits and includes an amendment to also extend and expand the federal tax credit. NJAR® anticipates that the newly signed legislation will help maintain the recent momentum seen in the New Jersey real estate market and spur the state’s economy as a whole. The legislation will extend the $8,000 first-time home buyer tax credit past its original November 30 deadline, and it will now be available through April 30, 2010. Additionally, existing homeowners who have lived in their homes for at least five consecutive years out of the last eight will be eligible for a credit that can total $6,500. Other details of that amendment are as follows:

Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8,000 for first-time purchasers. No change to definition of first-time purchaser.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
The purchase price of the property may not exceed $800,000.
New anti-fraud limitations are imposed.
For additional details, please visit www.REALstoryNJ.com/Home-Buyer-Tax-Credit and read NJAR®'s press release. NJAR® would like to thank members for their continued support which helped pass this critical legislation. New Jersey REALTORS® had an above average response rate to the NATIONAL ASSOCIATION OF REALTORS® (NAR) Call for Action (CFA) at 19.8%.

Fall Back on the clocks this Sunday night.....

Daylight savings time ends this Sunday November 1st.

Don`t forget to move your clock BACK one hour this Sunday,

November 1st as Daylight Savings Time ends!

Senate Makes Tentative Agreement to Extend and Expand Tax Credit

Senate Makes Tentative Agreement to Extend and Expand Tax Credit
Within the past 72 hours, some misinformation regarding the extension and expansion of the first-time home buyer tax credit has been disseminated through various media outlets. As of today, no formal bill regarding an amended tax credit program has been passed. On Wednesday, October 28, 2009, Senate leaders reached a tentative agreement to extend and expand the federal first-time home buyers' tax credit originally set to expire November 30. While the method for passage remains uncertain, the deal would extend the $8,000 credit for first-time buyers until April 30, by which point they must have sales agreements in hand. These buyers would have until June 30, however, to go to settlement. The agreement would also provide a $6,500 credit for current homeowners who purchase a new residence in this time frame. To qualify, the homeowners must have lived in their primary residence for five continuous years. Qualifying income limits would also be raised to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000.

The Senate has not yet agreed whether the extension will be put up for a vote as its own bill or in conjunction with other legislation. Once it passes the Senate, the measure must be voted on by the House and signed into law by President Obama. Stay tuned to www.njar.com and the Week in Review e-newsletter for further developments. Until then, NJAR® continues to urge its members to respond to the NATIONAL ASSOCIATION OF REALTORS® (NAR) Call for Action (CFA) if they have not already done so.

On Monday, October 26, 2009, shortly before the tax credit deal was made in the Senate, NJAR® joined Congressman Leonard Lance (NJ-07) at a press conference in support of the extension and expansion of the federal first-time home buyer tax credit for residents across the state through 2010. Earlier this month, Lance introduced the Homebuyer Tax Credit Fairness Act (H.R. 2779) which would specifically extend and expand the popular tax credit from $8,000 to $15,000 through December 1, 2010, and open it to all people buying a primary residence regardless of income or past homeownership. For more on the press conference, view the press release and read the Asbury Park Press and NJ 101.5 news pieces on the NJAR® “In the News” page.

This past week economic highlights

Volume 15, Number 41 Economic Highlights for the Week Ending October 30, 2009

MONDAY, October 26th
Fed funds futures traders are fully pricing in a quarter point rate hike by mid-2010. The futures market may be getting ahead of itself a bit; it may be much later next year before we see a hike in rates because the economy must survive on its own after stimulus measures are removed. Besides waiting out those effects, the Fed will need to see a lower unemployment rate before making any adjustments to monetary policy.

TUESDAY, October 27th
Consumer confidence fell to 47.7% in October from a reading of 53.4% in September. The largest decline came from consumers' expectations ratings though ratings of the present situation also dropped. After a modest recovery in confidence over the last several months it appears that consumers are once again worried about the fate of the economy. Consumer attitudes, like the broader economy, will begin to lift more permanently once job growth is firmly established.
The S&P/Case-Shiller 20-city home price index rose 1.0% in August from July, in its third straight monthly gain as 16 of the 20 metro areas tracked posted gains on the month. Monthly declines were recorded in Charlotte, Cleveland, Las Vegas and Seattle. Over the past year the home-price index tumbled 11.3% with the annual rate of decline slowing in all 20 metro areas. It appears that home prices are stabilizing somewhat and are currently around their September 2003 levels.

WEDNESDAY, October 28th
The MBA mortgage applications index fell 12.3% to 562.3% for the week ending October 23. The purchase index was down for the third week in a row, falling 5.2% but the short-term trend is still positive as buyers move into the market on great affordability and the government’s tax credit program. The refinance index dropped 16.2% on the week but remains 57.9% above its year ago level. Refinance applications accounted for about 63% of total mortgage activity this week.
Durable goods orders increased 1.0% in September led by demand for heavy machinery and military aircraft. Amid some volatility, big-ticket manufacturing conditions are improving confirming recovery in the sector. Non-defense capital goods orders, which are used as a proxy for future business investment gained last month indicating the slump in business spending may be over.
New home sales fell 3.6% in September to an annual rate of 402k, the first decline in six months. Sales are 7.8% below their year ago pace and 71.1% lower than their July 2005 peak. While a pullback is not out of the ordinary during recovery, further downside surprises could lie ahead due to the first-time buyer tax credit expiring on December 1.

THURSDAY, October 29th
GDP advanced at a 3.5% rate in the third quarter, the first increase in 5 quarters and the largest gain in 2 years. Growth supports came from consumer spending related to the cash-for-clunkers program, homebuilding which was boosted by the first time buyer tax credit, net exports and inventories. Declines in other segments like business investment were much less severe. The outlook is for modest growth ahead however, continued support from fiscal stimulus and monetary policy are needed to keep growth on track.
Jobless claims fell 1k to 530k for the week ending October 24. The essentially flat number of initial filings for unemployment insurance last week indicates a slower pace of layoffs; however, labor market conditions remain weak in that job creation and the pace of hiring are stalled.

FRIDAY, October 30th
Personal income was unchanged in September as wages and salaries declined 0.2%. Transfer payments mostly in the form of rents were the only support to income growth last month. Consumer spending fell 0.5% on the month due to a sharp spending reduction on vehicles. Consumers continued to retrench, sending the savings rate slightly higher. Slower consumer spending will weigh on Q4 GDP.

Stock Market Close for the Week
Index Latest A Week Ago Change
DJIA 9712.73 9972.18 -259.45 or -2.60%
NASDAQ 2045.11 2154.47 -109.36 or -5.07%

WEEK IN ADVANCE
The strongest signal so far that the economy is out of recession came from the GDP report this past week. While expansion has resumed it is not strong enough not to need a helping hand from the Fed. In the coming week, markets will key in on the Fed's policy statement, Wednesday and the employment report Friday, for corroboration of economic progress and the Fed's role in it going forward.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 3.25 3.25 4.43
Fed Discount 0.50 0.50 1.68
Fed Funds 0.11 0.17 0.82
11th District COF 1.412 2.003 2.693
10-Year Note 3.38 3.10 3.92
30-Year Treasury Bond 4.23 3.99 4.24
30-Yr Fixed (FHLMC) 5.03 4.78 6.46
15-Yr Fixed (FHLMC) 4.46 4.48 6.19
1-Yr Adj (FHLMC) 4.57 4.77 5.38
6-Mo Libor (FNMA) 0.62875 1.73563 3.98125
Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

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If You’re Going to Buy a House, Do it Now

If You’re Going to Buy a House, Do it Now By Martin Hutchinson
Contributing Editor
Money Morning

It looks like the U.S. housing sector has bottomed. In fact, if you’ve been thinking about buying a house, this may be the time to make your move.

Let me tell you why.

Congress and the Obama administration are considering whether to extend the $8,000 first-time-buyer tax credit for another year from Nov. 30, when it expires. With cheap money, housing may show strength in the short term, just as we’ve seen with other assets. But there is the potential for a market hiccup next year or in 2011.

When the National Association of Homebuilders released its NAHB Index for October last week, it showed a drop of one point in homebuilders’ view of the market, from 19 to 18.

The good news: The index is at double its level from last spring – when it bottomed out at nine – meaning homebuilders see an improving market.

The bad news: The index is based so that a reading of 50 is the “neutral market” view. That means there’s a long way to go, yet.

But even if Congress doesn’t opt to extend the $8,000 tax credit, 30-year mortgage rates are still down around 5.1% – close to their all-time low. But rates probably won’t remain that low for long: Building inflationary pressures and the huge U.S. budget deficit will combine to push interest rates higher.

In other words, even if housing prices are destined to drop by another 10% (except in the very worst areas, I wouldn’t expect you’d see anymore than that), you still may end up saving so much on financing costs by borrowing now that you’d be mad to wait any longer.

Housing arithmetic is always complicated but one thing I do know: 7% of $90,000 is more than 5.1% of $100,000!

The S&P/Case-Shiller composite home price index bounced nicely in July, with the 20-city index rising 1.5%, after a 1.3% jump the previous month. That’s a pretty good indication that the markets have bottomed out.

What’s more, the $8,000 credit for first-time buyers was still in force for August and September transactions (you need to close to get the credit, so deals done before Sept. 30 should squeeze under the wire). Since interest rates remained low for those months, it’s likely we’ll see further price rises then, too.

That would mirror the market in Britain, where housing prices bottomed out last spring and have risen for the six months since. Indeed, the market in London for houses priced above 5 million pounds (about $7.5 million) is apparently exceptionally strong, because of the likely level of Goldman Sachs Group Inc. (NYSE: GS) bonuses!

For those of us who aren’t about to receive a Goldman Sachs bonus, or buy a house priced above $7.5 million, the short-term outlook is still pretty good. U.S. gross domestic product (GDP) almost certainly rose during the third quarter – probably by about 3% – and is expected to rise again in the fourth quarter.

That should translate into an abatement of the flood of job losses – perhaps from the 250,000-per-month rate of the last few months to around 100,000 per month. That’s still bad, but is indicative of a recovery ahead. At that point, the outlook for the housing market will depend on what region you live in.

In Florida, California and Nevada – where prices have dropped more than 40% – there may still be a large number of foreclosures and unoccupied new buildings left over from the bubble. In those markets, therefore, the excess supply may take time to absorb.

Similarly, even with the government bailout of the automobile industry, I probably wouldn’t invest heavily in Detroit, even though prices there are lower than they were in 1995. However, in such cities as Atlanta and Dallas, prices did not rise too much in the bubble – and haven’t dropped all that much since – so the market should rest on a firm foundation and we can expect it to advance.

Beyond 2009, the prognostication is still murky. On the one hand, even a slow economic recovery should induce consumers to more seriously consider home purchases. And with inflation apparently on the upswing, the prices of those houses can be expected to increase, as well.

On the other hand, if inflation really gets a grip, the U.S. Federal Reserve will have no alternative but to raise interest rates. Housing is the most-interest-rate sensitive sector of consumer spending. So if rates rise sharply, the housing market will inevitably suffer.

As for the $8,000 credit for first-time homebuyers, it doesn’t really matter. It’s like the “Cash-for-Clunkers” program. If Congress extends it, it will prop up the housing market a bit. But if Congress doesn’t, there will be no disaster – the market will simply fall back for a few months until demand catches up with supply.

It makes only a modest short-term difference in activity, and probably only a 1% to 2% difference in the level of housing prices.

If you’ve got the money, go buy a house. You won’t find a better time to strike.

This past economic week in review

Volume 15, Number 40 Economic Highlights for the Week Ending October 23, 2009

MONDAY, October 19th
The NAHB housing market index tumbled one point in October to a score of 18 from a reading of 19 in September. Builders lowered ratings of present sales and projected home sales six months from now while foot traffic through model homes decreased. Despite the decline and lowered ratings this month, homebuilder sentiment remains 28.6% higher than in October one year ago. Builder sentiment, like the housing sector itself is recovering slowly and somewhat unevenly. Looking ahead, the outlook for homebuilding is mildly positive.

TUESDAY, October 20th
The producer price index fell 0.6% in September compared to market expectation for no change. The decline was predicated on a 2.4% drop in energy prices during the month; excluding food and energy prices from the index the core PPI fell just 0.1%. Over the past year, headline producer prices fell 4.7% while core producer prices gained 1.8%. Energy prices fell 22.2% over the past year but have gained at a 12.0% rate in the last three months which should result in some firming in the headline number.
Housing starts rose 0.5% in September to an annualized pace of 590,000 following a downwardly revised rate of 587,000 in August. New construction starts have risen from a record low rate of 479,000 in April and leveled out at a moderate pace in the last several months. Gains in the single-family sector have been driving gains in overall housing starts this year. A drop in permit issuance could mean that recent new construction gains may moderate in the fourth quarter.

WEDNESDAY, October 21st
The MBA mortgage applications index fell 13.7% to 641.0% for the week ending October 16. This follows a small decline in the previous week. Despite back-to-back declines, the short-term trend is higher. Mortgage application activity is 57.1% above its year ago level. The purchase index was down 7.6% on the week and 3.8% below its level last year; the refinance index dropped 16.8% on the week but was up an astounding 142.3% from its level one year ago. Refinance applications accounted for 65% of total application volumes.
The Fed's beige book was more upbeat this time than previously with every district reporting improved or stabilized economic conditions. The report was prepared for the November 3-4 FOMC meeting and covers the time period between late September and mid-October. Weakness in the economy remains, especially in the commercial real estate market, but manufacturing and residential real estate seem to be faring better.

THURSDAY, October 22nd
Jobless claims rose 11k to 531k for the week ending October 17. This week's moderate gain in the number of initial claims does not reverse the very gradual and irregular improvement in labor market conditions. Continuing claims dropped 98k to 5.923 million for the week ending October 10 reflecting the ongoing exhaustion of benefits for many unemployed.

FRIDAY, October 23rd
Existing home sales surged 9.4% in September to an annual rate of 5.57 million as evidence of recovery in the housing sector continues to manifest. It was estimated that about 29% were distressed sales and 45% were first time home buyers taking advantage of the federal tax credit program. We could see a retreat in sales when the tax credit ends December 1. The fundamentals look good for continued recovery as job losses slow and low prices and low mortgage interest rates increase affordability.

Stock Market Close for the Week
Index Latest A Week Ago Change
DJIA 9972.18 9995.91 -23.73 or -0.24%
NASDAQ 2154.47 2156.80 -2.33 or -0.11%

WEEK IN ADVANCE
We will get the first look at third quarter GDP in the coming week and could possibly see a positive growth rate for the first time since the recession started at the end of 2007. Economists are forecasting a growth rate of 3.2% in the advance estimate for 3Q GDP.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 3.25 3.25 4.50
Fed Discount 0.50 0.50 1.75
Fed Funds 0.10 0.14 0.69
11th District COF 1.412 2.003 2.693
10-Year Note 3.49 2.96 3.74
30-Year Treasury Bond 4.29 3.79 4.13
30-Yr Fixed (FHLMC) 5.00 4.80 6.04
15-Yr Fixed (FHLMC) 4.43 4.48 5.72
1-Yr Adj (FHLMC) 4.54 4.82 5.23
6-Mo Libor (FNMA) 0.62875 1.73563 3.98125
Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

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Upward pressure on interest rates
Downward pressure on interest rates
No pressure to change interest rates
News worthy

The Expression " Going Bananas" --See the Benefits :)

A professor at CCNY for a physiological psych class told his class about bananas. He said the expression "going bananas" is from the effects of bananas on the brain.. Read on:

Never, put your banana in the refrigerator!!!
This is interesting.
After reading this, you'll never look at a banana in the same way again.

Bananas contain three natural sugars - sucrose, fructose and glucose combined with fiber. A banana gives an instant, sustai ned and substantial boost of energy.

Research has proven that just two bananas provide enough energy for a strenuous 90-minute workout. No wonder the banana is the number one fruit with the world's leading athletes.

But energy isn't the only way a banana can help us keep fit.It can also help overcome or prevent a substantial number of illnesses and conditions, making it a must to add to our daily diet.

Depression:According to a recent survey undertaken by MIND amongst people suffering from depression, many felt much better after eating a banana. This is because bananas contain tryptophan, a type of protein that the body converts into serotonin, known to make you relax, improve your mood and generally make you feel happier.

PMS:Forget the pills - eat a banana. The vitamin B6 it contains regulates blood glucose levels, which can affect your mood.

Anemia :High in iron, bananas can stimulate the production of hemoglobin in the blood and so helps in cases of anemia.

Blood Pressure:This unique tropical fruit is extremely high in potassium yet low in salt, making it perfect to beat blood pressure. So much so, the US Food and Drug Administration has just allowed the banana industry to make official claims for the fruit's ability to reduce the risk of blood pressure and stroke.

Brain Power:200 students at a Twickenham (Middlesex) school ( England ) were helped through their exams this year by eating bananas at breakfast, break, and lunch in a bid to boost their brain power. Research has shown that the potassium-packed fruit can assist learning by making pupils more alert.

Constipation:High in fiber, including bananas in the diet can help restore normal bowel action, helping to overcome the problem without resorting to laxatives.

Hangovers:One of the quickest ways of curing a hangover is to make a banana milkshake, sweete ned with honey. The banana calms the stomach and, with the help of the honey, builds up depleted blood sugar levels, while the milk soothes and re-hydrates your system.
Heartburn:Bananas have a natural antacid effect in the body, so if you suffer from heartburn, try eating a banana for soothing relief.

Morning Sickness:Snacking on bananas between meals helps to keep blood sugar levels up and avoid morning sickness

Mosquito bites:Before reaching for the insect bite cream, try rubbing the affected area with the inside of a banana skin. Many people find it amazingly successful at reducing swelling and irritation.

Nerves:Bananas are high in B vitamins that help calm the nervous system.

Overweightand at work? Studies at the Institute of Psychology in Austria found pressure at work leads to gorging on comfort food like chocolate and chips. Looking at 5,000 hospital patients, researchers found the most obese were more likely to be in high-pressure jobs. The report concluded that, to avoid panic-induced food cravings, we need to control our blood sugar levels by snacking on high carbohydrate foods every two hours to keep levels steady.

Ulcers:The banana is used as the dietary food against intestinal disorders because of its soft texture and smoothness. It is the only raw fruit that can be eaten without distress in over-chronicler cases. It also neutralizes over-acidity and reduces irritation by coating the lining of the stomach.

Temperature control:Many other cultures see bananas as a "cooling" fruit that can lower both the physical and emotional temperature of expectant mothers. In Thailand , for example, pregnant women eat bananas to ensure their baby is born with a cool temperature.

Seasonal Affective Disorder (SAD):Bananas can help SAD sufferers because they contain the natural mood enhancer tryptophan.

Smoking &Tobacco Use:Bananas can also help people trying to give up smoking. The B6, B12 they contain, as well as the potassium and magnesium found in them, help the body recover from the effects of nicotine withdrawal.

Stress:Potassium is a vital mineral, which helps normalize the heartbeat, sends oxygen to the brain and regulates your body's water balance.. When we are stressed, our metabolic rate rises, thereby reducing our potassium levels. These can be rebalanced with the help of a high-potassium banana snack.

Strokes:According to research in The New England Journal of Medicine, eating bananas as part of a regular diet can cut the risk of death by strokes by as much as 40%!

Warts:Those keen on natural alternatives swear that if you want to kill off a wart, take a piece of banana skin and place it on the wart, with the yellow side out. Carefully hold the skin in place with a plaster or surgical tape!

So, a banana really is a natural remedy for many ills.. When you compare it to an apple, it has four times the protein, twice the carbohydrate, three times the phosphorus, five times the vitamin A and iron, and twice the other vitamins and minerals. It is also rich in potassium and is one of the best value foods around So maybe its time to change that well-known phrase so that we say, "A banana a day keeps the doctor away!"

PS: Bananas must be the reason monkeys are so happy all the time! I will add one here; want a quick shine on our shoes?? Take the INSIDE of the banana skin, and rub directly on the shoe...polish with dry cloth.. Amazing fruit !!!

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Economic Highlights for Week Ending October 16th, 2009

Volume 15, Number 39 Economic Highlights for the Week Ending October 16, 2009

MONDAY, October 12th COLUMBUS DAY Stocks and Futures Markets Open

TUESDAY, October 13th Gold rose to another record high today as weakness in the dollar drove strong investor demand for the precious metal. Gold reached an all-time intraday trading high of $1069.70 on the Comex, exceeding the last record high set on October 8. Analysts believe gold will continue to rally amid speculation that tremendous liquidity will devalue the dollar and boost inflation.

WEDNESDAY, October 14th Retail sales dropped 1.5% in September as motor vehicle sales dropped 10.4% following the end to the clunkers program. Excluding vehicle sales, retail sales actually increased 0.5% on the month reflecting solid gains in most other major retail categories. Spending has improved from severe lows earlier this year however given tight credit, weak income growth and rising unemployment consumers face headwinds to spending going forward. The MBA mortgage applications index fell 1.8% to 742.9% for the week ending October 9. The purchase index was down 5.0% on the week as the refinance index slipped just 0.1%. Despite the dip this week and substantial week-to-week volatility, application activity is trending higher over the last several months indicating recovery in the housing market, even if it is subdued. The FOMC minutes from their September meeting showed that policymakers believed the recession was over, but that the recovery would remain weak. Inflation was not an issue because of the slack in the economy; because of that rates would remain very low. The unwinding of the balance sheet was The Dow closed above the 10k mark today for the first time in over a year as risk appetite improved on positive corporate earnings and an increase in retail sales, ex-autos.

THURSDAY, October 15th The consumer price index rose 0.2% in September, in line with expectations as energy prices climbed 0.6%. Over the past year consumer inflation has declined 1.3%. Excluding food and energy, the core CPI increased 0.2% on the month and was up 1.5% on the year, well within the Fed’s comfort zone for core inflation. Jobless claims fell 10k to 514k for the week ending October 10. Initial claims are trending lower which is consistent with smaller monthly payroll declines compared to earlier this year. Improvement in labor market conditions remains tenuous at best. A substantial labor market turnaround is not expected until mid-2010 at the earliest. Mortgage interest rates edged higher this week in response to rising yields in the bond market. 30-year fixed rate mortgages averaged 4.92% this week up from 4.87% last week according to Freddie Mac's mortgage market survey. This is the third week in a row the average 30-year fixed rate has remained below 5%.

FRIDAY, October 16th Industrial production rose 0.7% in September much higher than an expected gain of 0.1%. Moreover, August results were upwardly revised from 0.8% to a stronger 1.2% gain. Strength remains concentrated in manufacturing output as firming sales support new activity. Consumer sentiment fell to 69.4% in early October from a level of 73.5% in September. Consumer attitudes tumbled in early October due to increasing worries about the outlook. The final reading for October sentiment will be released in two weeks. The government ran a $46.6 billion budget deficit in September compared to a $45.7 billion surplus in September 2008. This was the first September budget deficit recorded since 1991. For fiscal 2009, the total budget deficit was $1.42 trillion, three times larger than a $454.8 billion deficit for FY 2008.

Stock Market Close for the Week

Index Latest A Week Ago Change DJIA 9995.91 9864.94 +130.97 or +1.33% NASDAQ 2156.80 2139.28 +17.52 or +0.82%

WEEK IN ADVANCE

The past week's data went a long way toward shoring up a positive growth forecast for the third quarter. Data highlights in the coming week include the Fed’s beige book, housing starts and building permits, and existing home sales for September. Investor optimism will continue to ride on corporate earnings results.

Key Interest Rates Latest 6 Mos Ago 1 Yr Ago Prime Rate 3.25 3.25 4.50 Fed Discount 0.50 0.50 1.75 Fed Funds 0.14 0.15 0.96 11th District COF 1.412 2.003 2.693 10-Year Note 3.41 2.87 4.02 30-Year Treasury Bond 4.24 3.70 4.27 30-Yr Fixed (FHLMC) 4.92 4.82 6.46 15-Yr Fixed (FHLMC) 4.37 4.48 6.14 1-Yr Adj (FHLMC) 4.60 4.91 5.16 6-Mo Libor (FNMA) 0.62875 1.73563 3.98125 Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

Latest Mays Landing, NJ Home SALES

HAMILTON TOWNSHIP SOLD FROM JULY 1, 2009 TO SEPTEMBER 30, 2009

ADDRESS- ASKING PRICE- SOLD PRICE -BEDROOMS -BATHS

34 Abington $319,900 $311,500 4 2.5

901 Bainbridge $216,000 $206,000 3 2

6354 Benson $99,750 $85,000 3 1

6358 Benson $126,900 $133,000 3 1

5913 Berry $109,500 $125,000 3 1

4969 Cardiff $154,000 $125,000 4 2.5

5915 Cedarcroft $194,900 $192,500 3 1

98 Charleston $259,900 $260,000 4 2.5

14 Croyden $279,900 $250,000 4 2.5

1800 Drake $148,500 $150,000 3 2

6185 Falcon Run $210,000 $207,500 3 2.5

473 Franklin $329,900 $320,000 4 3

7006 Fulton $150,000 $150,000 3 1

2049 Garden $200,000 $193,000 3 2

30 Golf $225,000 $215,000 3 2

6307 Harding $165,000 $165,000 3 2

6995 Harding $169,900 $155,000 2 1

10 Homewood $400,000 $350,000 5 4.5

6034 Hoover $74,900 $560,000 3 2.5

7708 Jackson $148,800 $148,800 4 2.5

70 Knollwood $149,900 $146,900 2 2

6301 Liberty $175,000 $150,000 3 1

6320 Liberty $134,900 $125,000 2 1

1103 Loretto $140,000 $145,000 3 1

135Marlin $229,500 $219,500 2 2

4 Monet $319,900 $299,900 5 2.5

6361Monmouth $142,500 $142,500 2 1

1016 Morningside $250,000 $230,000 3 2

6302 Nelson $129,900 $132,554 3 1

6315 Nelson $135,000 $134,000 3 1

6204 Ninth $199,900 $196,000 3 2

4946 Ocean Heights $234,900 $220,000 3 2

179 Pebble Beach $174,900 $158,500 3 2

128 Pine Knoll $189,000 $180,000 3 2.5

5835 Pine $259,900 $259,900 3 2

5928 Pittsburgh $177,795 $150,000 4 1

31 Princeton $259,900 $259,900 5 3.5

242 Regents $194,900 $194,600 3 1.5

2650 Route 50 $299,900 $290,000 4 2

6054 Sharon $254,900 $259,900 3 2

6898 Strand $173,000 $172,000 3 1.5

7630 Strand $199,900 $195,000 4 2

1441 Strawberry $244,900 $237,000 3 2

5736 Third $200,000 $128,000 3 1

155 Treyns $225,000 $207,000 3 2.2

208 Tryens $194,900 $195,000 4 2.2

36 Westover $219,900 $212,000 3 2.5

6878 Weymouth $219,000 $195,000 3 1.5

616 Whispering Woods $379,900 $358,000 4 3

612 Whispering Woods $359,900 $330,000 4 2.5

2010 Winding Way $274,900 $247,500 4 1.5

Please disregard if your property is listed with another broker. This information is complied from the SJSRMLS system for the past 90 days. This information is based in whole or in part on data supplied by our SJSRMLS system. That system does not guarantee accuracy for the information supplied. Data maintained by SJSRMLS may not reflect all real estate activity in the market.

THE SIMMENS REPORT

Bold properties are the transactions my company was directly involved in procuring. The Realtor sponsorin this community information service ad is not making any representation that they were involved in any other particular transaction whatsoever as printed in this report on the bold properties.