September 19, 2012
Last week in review (September 10 - 14, 2012)
Last week, the Fed announced another round of Quantitative Easing (QE3). Read on to learn what QE is, why the Fed announced QE3,and what this means for home loan rates.
Table source: Mortgage Success Source
What is Quantitative Easing? Quantitative Easing is the concept of the Fed becoming a buyer of treasuries and bonds to try to stimulate the economy. Oftentimes, the Fed does Quantitative Easing when they are hoping to (1) create inflation and avoid a deflationary economy, (2) lower the unemployment rate, and (3) boost stock prices.
Why did the Fed announce QE3? With our economy still struggling (especially our housing and labor markets) and inflation appearing tame, QE3 was widely expected. But what caught the markets by surprise was the aggressiveness of the Fed's action. Over the next several months, at the very least the Fed will be buying mortgage bonds at an annual rate of nearly $800 Billion.
The Fed also noted that QE3 will continue until there is a self-sustainable recovery in our economy, as long as inflation doesn’t rise too high or quickly. Supporting the Fed's action was August’s tame inflation data at the consumer level. It is important to note that the Producer Price Index (PPI), which measures inflation at the wholesale level, rose to three year highs in August due to the spike in fuel costs and food prices. The Fed will be watching inflation levels carefully over the coming months.
What does QE3 mean for home loan rates? The Fed is buying large amounts of mortgage bonds each month to keep home loan rates (which are tied to mortgage bonds) near record lows, which they hope will help strengthen our housing market and economy overall. However, as the economy starts to improve and if inflation heats up, bonds could face some selling pressure, which could impact home loan rates negatively as a result.
The bottom line is that home loan rates remain near historic lows and now is a great time to consider a home purchase or refinance.
Webcam Tips for Business
Webcams have steadily grown in popularity in businesses across the country. More companies are embracing the technology as a cost-effective, timesaving way to record videos for a company website or to conduct meetings.
Regardless of how you’re using a webcam in your career, the following information can help you be more successful.
1. Eliminate distractions. When you’re on a webcam, you can be interrupted by the phone ringing, people knocking on your door, and so on. To make sure that doesn’t happen, find a quiet place where you can avoid any distractions.
2. Remove the clutter. A webcam doesn’t just allow people to see you; they can also see into your office. If the background setting looks messy, cluttered, or less than professional, it may taint how you are perceived. Clear everything that will be in the background, including those things that are off in the distance. The best advice is to have a clean, simple background setting where only one or two major pieces of office furniture can be seen.
3. Check the lighting. Anyone who’s ever used a webcam realizes that you can sometimes appear pale or tired in an online video. To overcome this problem, you can simply check the lighting. You’ll want the room to be bright, but not so bright that your face is washed out. If you need additional lighting, bring a lamp or two into the room.
4. Maintain eye contact. To make sure you maintain eye contact, look directly at your webcam – rather than another person’s image or a script on your monitor. It may feel awkward at first, but it will appear natural and professional to the person on the other end.
5. Send the right body language. Like in face-to-face communication, your posture and body language are important online. Sit up straight, use simple hand gestures as you talk, and resist the urge to fidget or make a lot of unnecessary movements.
Following these simple steps can help you be more successful the next time you find yourself sitting across from a webcam at your office.
In the news this week (September 17 - 21, 2012)
Table Source: Mortgage Success Source