The purpose of the newsletter is to remain informed of current consumer topics and pending economic indicators that affect the financial and real estate markets of the Seattle Area.

John Bratmon

President/Broker

Towne Financial Corp.

7975 Leary Way

Redmond, WA  98052

425.885.1430

 

To contact me, to assist you with your mortgage needs, Click Here

 

To find out what your real property may be worth in the current market, Click Here

 

 
U.S. Treasury Bonds
Maturity Yield Last
Week		 Last
Month
5 Year 4.81 4.65 4.62
10 Year 4.85 4.66 4.58
30 Year 4.89 4.69 4.55

Treasury Market Summary: 

The Fed came through with the 25 bp hike the market unanimously expected.  The policy rate hike to a 4.75% federal funds rate target was the 15th consecutive tightening at an FOMC meeting which started in June 2004.  The move also leaves the discount rate -- the rate at which banks borrow from the Fed -- a quarter percent higher at 5.75%.

 

The policy statement expanded the Fed's review of the economy but left the policy paragraph virtually unchanged from January -- 'The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability in balance.  In any event, the Committee will respond to changes in economic prospects as  needed to foster these objectives.'

The unchanged policy paragraph argues for the market to view the statement as it did in January -- with another tightening on the way at the next policy meeting -- May 10.  The longer term outlook remains unclear as the market currently expects a pause after the May hike to 5%. 

The economic review which preceded the policy paragraph noted the temporary factors behind the weak Q4 growth as Q1 growth is rebounding but expected to moderate later in the year.  The modest effect on core inflation and the benefits from strong productivity on unit labor costs keep inflation expectations contained as resource utilization (reduced economic slack) and commodity prices (including energy) have the potential to add to inflation pressures.  No surprises there. 

 

The big question going forward is inflation risk as high energy prices and reduced economic slack provide the upward forces as the broad forces of globalization (global competition, low Asian import prices) and strong trend productivity (on labor costs) provide offsetting downward forces. 

The Fed uses core personal consumption (PCE) prices as its inflation guide given its broad read.  Core PCE inflation growth stands at 1.8% from a year ago from a 2.3% peak in November 2004 -- below the Fed's 2% estimate for 2006.  Core consumer prices stand at 2.1% from a 2.4% high a year ago.

 

Economic Indicators for this week that could impact the mortgage or real estate markets include...


It's Hard To Believe The E-Mail Message Isn't From The IRS.
 

The logo looks real. The message appears to be sent from admin@irs.gov. The "copyright 2006 IRS" at the end of the message seems authentic. It may look like the IRS, but it's scammers who are swamping consumers' e-mail inboxes with messages notifying them of an audit or offering access to a refund. The fraudsters' aim is to collect your Social Security number, credit card account number, and bank information. "We've seen an explosion of this scam this year," said an IRS spokeswoman.

 

In recent weeks, consumer complaints about the e-mail scams are pouring in at the rate of about 100 a day on average. So far, 12 Web sites operated in 18 countries perpetrating this or similar types of IRS-related fraud were found.

 

It's no wonder consumers get lured into providing sensitive data. One of the messages (see sample below) directs consumers to click on a link to collect their refund. Not only does the message look authentic, but the Web site that appears when you click on the link looks eerily similar to the official IRS.gov Web page. Scammers copied the official IRS logo, and even the type font matches the IRS site. And, if you click on the "Home" button, it takes you to the official IRS site, at www.IRS.gov. The fake Web site also includes an authentic-looking privacy policy that says "Internal Revenue Code Section 6109 allows us to request your Social Security Number."  The only oddities are the Web site address at the top of the page -- which starts with "http://tzk.kozle.pl" -- and the information requested, which includes your Social Security number and credit card information "where you want the refund to be made."

 

The IRS won't e-mail you

Taxpayers take note: The IRS generally does not send e-mail messages to taxpayers. They do not communicate with taxpayers via e-mail. They may send you a letter, may call you, but they do not send out e-mail.  The bulk of the scams have been through e-mail, though sometimes fraudsters will mail a regular letter, or even call taxpayers. If taxpayers get any communication that purports to be from the IRS and if they're not sure that it's a legitimate correspondence and it's asking for financial information, they need to call the IRS and check it out.

 

"Some of these e-mail scams that we saw, they would not only ask for your bank account number, they would ask for your password to your bank account -- something we would never ask for," an IRS spokesman said. Still, "we do communicate with taxpayers probably more frequently than people think. It's not just through audits". "People forget to sign their tax return, or they got their bank account information wrong on their direct deposit. There are a number of other reasons we would call people, but taxpayers need to double-check and bring some skepticism to these communications, not just with the IRS but with anyone calling and requesting financial information," the spokesman said.  To find out whether a communication you received from the IRS is legitimate, call the IRS at 800-829-1040. Ask them to confirm that the IRS is trying to contact you.

 

The purpose of this newsletter is to stimulate thought for my clients and those professionals with whom I network.  If you are a real estate, estate planning, taxation, financial planning or insurance professional receiving this newsletter, please call my office and introduce yourself to me.  I'm always seeking to grow my referral network, and to expose more service professionals to my client base.  I specialize in helping those individuals looking to buy, sell or refinance real property in the Pacific Northwest Area.
By The Way:  Most Lenders spend the majority of their time prospecting for new clients (through ads, cold calling, flyers, etc.).  That's not they way I do things.  My business is based almost exclusively by referrals from my Preferred Partners (Real Estate and Professional Consultants), and my current & past clients.  Because of this, I devote the majority of my time to serving the needs of my clients before, during and after their transaction.  As long as they keep referring their friends, neighbors, family members & clients to me, I don't have to spend my time prospecting for clients, which means I can spend my time doing an even better job for them.  If you know someone who'd appreciate the services I provide, please call me with their name & phone number, and I'll be happy to follow up with them.

Visit John at www.NorthwestMortgageSolutions.com   

 

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John Bratmon of Towne Financial Corporation is a Washington State licensed Mortgage Broker.  John provides Conventional, Non Conforming, Jumbo, and Foreign National Loans. He assists clients with excellent credit, less than perfect credit and no credit.  John also assists individuals who are self-employed and require both full documentation and no documentation loans. John provides financing assistance to whose who are buying, selling or refinancing real estate.   If you would like to stop receiving these e-mail newsletters, simply e-mail him your request at Johnb@townemortgage.net; it will be immediately honored.