Market Comment - Week of January 26th, 2009

Mortgage bond prices fell last week pushing rates higher. In an announcement earlier in the month, Fed Chairman Bernanke indicated the timing of a global economic recovery was "highly uncertain." This uncertainty was reinforced last week as the economic turmoil continued across the globe and Spain joined Greece to become the second Euro zone country to have their debt downgraded by Standards and Poor's. A lower debt rating increases the cost to borrow further aggravating the attempts to fund the massive bailouts. For the second week in a row, interest rates on government and conventional loans rose by about 3/4 of a discount point. The Fed meeting on Wednesday will be the most important event this week. Gross domestic product and employment cost index data Friday will also be important.

Economic Factors this week:

Existing Home Sales
Monday, Jan. 26, 2009
Consensus Estimate: Down 0.8%
Analysis: Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates.

Fed Meeting Adjourns
Wednesday, Jan. 28, 2009
Consensus Estimate: No change
Analysis: Important. Few expect the Fed to change rates, but volatility may surround the adjournment of this meeting.

Durable Goods Orders
Thursday, Jan. 29, 2009
Consensus Estimate: Down 1.5%
Analysis: Important. An indication of the demand for "big ticket" items. Weakness may lead to lower rates.

New Home Sales
Thursday, Jan. 29, 2009
Consensus Estimate: Up 1.9%
Analysis: Important. An indication of economic strength and credit demand. A decrease may lead to lower rates.

5-year Treasury Note Auction
Thursday, Jan. 29, 2009
Consensus Estimate: None
Analysis: Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.

Q4 Advance GDP
Friday, Jan. 30, 2009
Consensus Estimate: Down 5.0%
Analysis: Important. The aggregate measure of US economic production. Weakness may lead to lower rates.

U of Michigan Consumer Sentiment
Friday, Jan. 30, 2009
Consensus Estimate: None
Analysis: Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.

Q4 Employment Cost Index
Friday, Jan. 30, 2009
Consensus Estimate: Up 0.7%
Analysis: Very important. A measure of wage inflation. Weakness may lead to lower rates.

A Fundamental Week
The abundance of fundamental data this week provides a good opportunity for mortgages to improve. If the data shows weakness in the economy then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases. However, if the data shows that the economy is rebounding or any significant signs of inflation, mortgage bonds may fall pushing mortgage interest rates higher.

Thinking of Refinancing?

This is a great article that may answer some of your questions on refinancing.

http://www.cnbc.com/id/28621770

If you'd like to speak with a lender about refinancing just give us a call or send us an email.

Emily & Karen

Emily Lipani 404-210-5169

Karen Steimle 678-787-8433

EmilyandKaren@gmail.com

WIN 2 TICKETS TO THE

GEORGIA AQUARIUM

As a huge Thank You for everyone's generosity & support!

Just email us at EmilyandKaren@gmail.com. This information will be kept private. Winner to be selected Friday, January 23rd.

PROPERTY TAX APPEALS IN COBB COUNTY

Do You Feel Like Your Property Has Dropped In Value?

(Our in house lawyers, Neel & Robinson along with the Cobb County Tax Assessors Website has offered the following information on tax appeals and property re-assessment:)

Since property values h ave seen depreciation in recent months some homeowners may be especially interested in the appeals process this year. It is important to stay on top of deadlines. The triggering event is the Notice of Assessment- you must have an assessment in order to appeal.

If you already know you want to appeal your taxes (based on the 2008 value), you may go ahead and file a Taxpayers Return of Real Property.

If you purchased property in 2008, that purchase will trigger re-assessment. You should not have to file a Taxpayers Return of Real Property.

ASSESSMENTS IN COBB COUNTY ARE MAILED IN EARLY MAY

Once you recieve your assessment, if you disagree with the value assigned to your property, you may appeal. All appeals must be submitted in wiring- either received or USPS postmarked within 45 days of the nitice date. Any letter of disagreement, which identifies the property (by parcel number or address) and is filed timely, will be accepted as a formal appeal. Any information concerning the reasons for the appeal or information you can share about the property will greatly assist in the review process. Valid reasons for appealing your valuation are:

VALUE: Would the property sell for the appraised amount?

UNIFORMITY: Is the appraisal uniform/equitable with similar properties?

Once a timely appeal letter is reveived and if the appeal letter does not specify that the owner choses Arbitration the following appeal process is set into motion:

- An acknowledgement letter and an owner's review worksheet are mailed.

- The appraisal stadd will review your appeal and make a recommendation to the Board of Tax Assessors.

- If the board decides to make a change in the valuation, you will be notified in writing. If you are dissatisfied with the revised appraisal you may file a written appeal within 21 days to the Board of Equalization.

-If the board does not make any adjustment in your appraisal, you will be notified in writing and you appeal will be automatically forwarded to the Board of Equalization.

- If your valuation is appealed or forwaeded to the Board of Equalization, you will be notified of the date, time and location of the appeal hearing.

-During this hearing you will have an opportunity to present your case to the board. A county appraiser will also attend the hearing and will present supporting documentation concerning the county's appraisal of your property. Following the presentations, the Board of Equalizations' office decision.

- If you are dissatisfied with the board of Equalization you can appeal to the next level, Superior Court.

* Much of this information is taken from the Cobb County Tax Assessors Website

Energy Saving Ideas

The National Fire Protection Association provided these tips to safely reduce home energy costs this winter:

HEATING SYSTEMS:

- Set thermostats at 68 degrees when the house is occupied during the day and then turn it down at night or when you're not home.

- Make sure supply and return vents, radiators and baseboad heating units are not obstructed by furniture, appliances or other objects and that air can flow freely to and from them.

- Clean or change furnace filters in forced hot air systems once a month or as needed.

- Have heating systems maintained and serviced according to manufacturer's instructions (usually once a year).

- Check heating ducts for air leaks from joints and holes. Check with your local hardware store for the proper mastic or tape to use for the particular job.

-Turn down the thermostat in rooms that have all of the following: are unoccupied; can be closed odd drom the rest of the house and have their own heating zone. Do not do this if it could lead to freezing water pipes.

WINDOWS & DOORS:

- Install caulking, weather stripping or use spray-in foams around exterior windows and doors or those between heated and unheated spaces (garages, basements, crawl spaces, attics).

-Keep draperies and shades open during the day on your southern facing walls to allow sunlight to enter. Keep them closed at night to reduce heat loss and the chill or "draft" you may feel from cold windows.

EXHAUST FANS:

- A kitchen or bathroom fan can pull out a houseful of heated air in just one hour so turn off all fans as soon as they have done their job.

For more information visit www.nfpa.org

HOMESTEAD EXEMPTION

This is a reminder for any new homeowners in 2008 to apply for your Homestead Exemption when filing your taxes this year.

Homestead Exemption is a tax savings on homestead property available to homeowners who own, occupy and claim the property as a legal residence as of January 1st. The exemptions are automatically renewed each year unless there is ahcnage in ownership or qualifications. You must apply no later than April 1st. Besides Homestead, the other expemption types are: School Tax, Disability, State Veteren's Disability, Surviving Spouses, State Over 65, Surviving Spouse of a Peace Officer or Firefighter.

For Additional Information please go to http://www.cobbtax.org/