Interest Rates and The Karate Kid
Life Quote of the Day:
“Look at life through the windshield, not the rear-view mirror.” – Byrd Baggett
Rates and Vets:
I had to sit down my eight-year-old daughter – who was excited about getting school off for Veterinarian’s Day – and tell her it is really pronounced Veteran’s Day. This only brought more confusion as she probably thought her uncle spent all his time in Viet Nam saving dogs and ponies. Like a good dad, I got the point across that while it’s always fun to miss school, the day should be spent thanking those who served our country, and to say prayers for our troops overseas. I did not try to explain to her that this holiday also plays into interest rates; one day though – when she’s old enough – I’ll sit her down and tell her that bond traders often take defensive positions ahead of weekends and holidays – this can impact rates both positively and negatively. Since this holiday falls in the middle of the week, I anticipate rates to get worse today, better tomorrow, and worse on Friday. Let’s see if the Schwartztradamus predictions come true…
The First Time Home Buyer Tax Credit extension is here! Actually, not much of a surprise that is was extended, but still a relief. Here’s the skinny: buyers need to be under contract by April 30th and have 60 days after that to close. The tax credit was amended to include move-up buyers who’ve been in their current home 5 consecutive years or longer. (they will be eligible for a $6,500 credit as opposed to the $8,000 for first timers). Income limits were also increased from 75k to 125k (individual) and from 150k to 225k (couples). Additionally, the home being purchased must not be over 800k.
Life Quote of the Day 2:
“There are two types of people in this world: those who like Neil Diamond and those who don’t.” – Bill Murray (What About Bob, 1991).
Timeout for Trivia:
Congrats to all of you last week who correctly guessed Ralph Macchio. Want to be entered into a drawing to win a $20.00 Starbucks gift card? Just guess the answer to today’s Who Am I? question. Good luck: “I turn 48 today. I achieved most of my success in the 80s when I starred on General Hospital, and married the guy that ran the Blue Moon Detective Agency. I did the Hollywood thing and divorced him for a younger guy. You could say I’m still hot, but in this economy I’d have to lower my asking price of a million dollars to sleep with me.