The Fed Rate Cut: What does it mean to you?

The Federal Reserve has cut interest rates by 50 basis points yesterday.
What does this mean to you and your family? Here is a quick guide of what to expect.

Mortgages:
Fixed-rate mortgages usually do not change in response to cuts in the federal funds rate. However, adjustable-rate mortgages may be more sensitive to Federal Reserve rate decisions. Depending on the exact nature of their mortgage, some people with ARMs may see their rate adjust downward the next time the mortgage resets. It's impossible to know when -- or even if -- fixed-rate mortgages will fall given the Fed's most recent trim to the federal funds rate.

Home Equity:
The Federal Reserve's decision to cut rates by a half-point eventually will mean lower borrowing costs for homeowners who have a home equity line of credit. The Federal Reserve's latest interest rate cut means you can expect HELOC rates to fall soon. It may take one or two billing cycles before you see the benefits.

Auto Loans:
The key to getting the best possible auto loan in today's market, as it has been for months now, is to bring a sterling credit score with a sizable down payment. The rate cut likely will not translate into a savings bonanza for car buyers. Rates are likely to vary depending on the lender as well as your credit score and down payment.

CDs & MMAs:
Certificate of deposit rates compete with other fixed-income options of like duration -- namely Treasuries. Longer-term CDs, just as with longer-term Treasuries, often move in advance of the Federal Open Market Committee, if economic conditions are such that a rate change is expected. It will take time for all of the measures the Treasury and the Federal Reserve have put in place to do some noticeable good.

Credit Cards:
Variable-rate cardholders eligible to receive a rate cut should receive it within three billing cycles.

Legends of McKinney Ghost Walk

Saturday, October 25, 2008

6:00 PM - 10:00 PM

Legends of McKinney Ghost Walk
The Legends of McKinney Ghost Walk will begin at the North Texas History Center, circle the downtown square and end at Chestnut Square Historic Village. This self-guided tour will provide story tellers along the way to share the legendary stories of McKinney. Ghost sightings are not guaranteed, but a night of spooky fun is!

1 Ticket: $10 2 Tickets: $15Children under 18 free when accompanied by a paying adult.

To purchase tickets go to: http://www.chestnutsquare.org/programs/mckinney-ghost-tour.asp

Early Voting Begins Today!

It is time to Vote!

Starting today you can get out there and vote. Click on the link below for the full schedule of times and locations.

It's so easy to exercise your right - don't miss out on your opportunity to be heard!http://www.co.collin.tx.us/elections/election_information/2008/110408/EV110408.html

Roundup on the Range - This Saturday!

Thousands of visitors clad in their cowboy hats and boots will flock to McKinney, Texas on Saturday, October 18, 2008 to experience an unforgettable day of family fun at the third annual Roundup on the Range fundraiser for Volunteer McKinney Center. Dedicated to presenting and preserving the traditions of the Old West, McKinney will once again play host to authentic chuckwagon contestants, western musicians, artisans and equestrian demonstrations. This action-packed, family-oriented event will feature Friends of Skidboot, the world-renowned show dogs and Robert Liner, the acclaimed horse trainer/entertainer appearing annually at the Texas State Fair, Quebe Sisters Band, Native American Pow Wow, as well as a myriad of family activities that will appeal to cowboys and cowgirls of all ages.

For additional information, please contact us at info@roundupontherange.com or call 972.542.0679.

Fall Planting Guide

One of the great things about living in Texas is the array of blooming flowers we can grow hear year round.

October is an excellent time to plant the following flowers:

Color— Pansies, Ornamental Kale, Snapdragons, Alyssum, Dianthus and Mums.

Perennials— Plant now!

Bulbs— Daffodils and Grape Hyacinths
(Hold tulip bulbs in the refrigerator until later in December.)

Wildflower Seeds—Plant now!

Shrubs and Trees— Good time to plant but be sure they get plenty of water.

Excellent resources —

www. ShadesofGreenInc.com
www.Calloways.com, Neil Sperry

Happy Planting!

Happy Columbus Day!

Ask almost any American elementary student why the Country celebrates Columbus Day and they will immediately recite “In fourteen hundred and ninety-two, Columbus sailed the ocean blue.” Historically, this is true. Christopher Columbus did set sail in 1492 in order to discover new lands for the King Ferdinand and Queen Isabella of Spain. The sailing party consisted of three ships: the Pinta, the Nina, and the Santa Maria. Columbus had sailed to far away lands before including Guinea and Iceland. In this trip, it was the aspiration of Columbus to discover the East Indies. When Columbus spotted the new lands, Columbus thought that he had, in fact, reached the East Indies; which are a group of islands located off of the coast of Southeast Asia. Instead, Columbus had came ashore in the Bahamas, and later Cuba and Hispaniola (now known as Haiti); all of which are off of the coast of the Americas – a long way from his original target.

However, as a direct result of Columbus’ attempt to discover the East Indies, scholars were able to gain a better understanding of just how large the Earth really was. Additionally, Europe and Spain became exposed to the Americas which resulted in trade opportunities and colonization of the new world – opportunities that still act like a beacon that draws people from all over the world to the Americas today.

North Texas Market Update

Market Update

As we sat and watched while home prices were doubling in many areas throughout the country, comments were varied about the local market appreciating nominally when compared to the country. The comments were not without anguish either. The PMI Group, a California-based insurer ranks cities across the US relative to the decline in home prices and Texas ranked better than anywhere in the country.

The Dallas market per their report has less than a 1% chance of having lower home prices in two years. The Texas economy is still strong gaining almost 252,000 in the past 12 months, with 6,700 jobs in the past month versus the U.S. economy losing 84,000 jobs during the same time period. Homes in our area are taking a little longer to sell, but the homes that are professionally stage, priced realistically and marketed well are still selling. Credit is available with rates being near record low.

If you would like more information and the latest figure on the real estate market feel free to email me at donna@donnabthomas.com.

Rates Still Favorable

STATE OF THE INDUSTRY

With all the financial turmoil hitting the stock and bond markets much is still unknown concerning the future of the US economy.What we do know is the Federal Government has recently taken unprecedented steps to shore the economy and back many historically private institutions. The Securities and Exchange Commission implemented strict trading rules prohibiting short selling of financial stocks. Money market accounts, historically considered safe investments, got caught in the financial turmoil of the Lehman Brothers bankruptcy. As a result, the Treasury created a temporary insurance system for the funds. Regulators indicated this was done to prevent a banking system collapse.

Fannie Mae and Freddie Mac were taken over by the US Treasury. This effectively guaranteed the performance of the Fannie and Freddie instruments with the backing of the US Federal Government. Federal Housing Finance Agency Director James B. Lockhart indicated that not acting, “would have been disastrous for the mortgage markets, as mortgage rates would have continued to move higher and, in turn, disastrous for the enterprises as the prices of their securities would have fallen and credit losses increased.” He noted the goal of the takeover was "to help restore confidence in Fannie Mae and Freddie Mac, enhance their capacity to fulfill their mission, reduce the systemic risk and make more mortgages available at a lower cost to the American people.” While lending guidelines have tightened and mortgage rates remain volatile, the good news is rates remain historically favorable.