Last Week in Review...

     The week began with speculation that the Fed would extend "Operation Twist" after its two-day meeting of the Federal Open Market Committee. Remember, Operation Twist is where the Fed sells its holdings of short-term securities and Notes and then purchases longer-term Notes and Bonds in order to try and lower longer-term rates even further. The Fed extended the program, which began last fall, because the Fed feels that access to cheaper money will help spur on economic growth. And while the Fed did not mention anything about another round of Bond buying (called Quantitative Easing, or QE3), they laid some groundwork for additional stimulus if necessary. 

     The Fed's decision to extend Operation Twist - and their lowered forecasts for our economic growth - partly came from disappointing economic reports we've seen recently. The Fed noted that "growth in employment has slowed in recent months, and the unemployment rate remains elevated." Last week's higher than expected Initial Jobless Claims exemplified that. In addition, the housing market continues to muddle along the bottom with numbers showing only modest improvement. Though there was some good news last week - even though Housing Starts were a bit below expectations, Building Permits (a sign of future construction) surged 8%. 

     So what does all of this mean for home loan rates? Home loan rates continue to benefit from the drama in Europe and the weak economic reports here at home, as investors continue to see our Bonds (including Mortgage Bonds, to which home loan rates are tied) as a safe haven for their money. But it's important to note that additional hints of QE3 could push Stock prices higher, shifting cash out of the Bond trade and hurting home loan rates in the process. 

     The bottom line is that now continues to be a great time to purchase or refinance a home, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients. 

Exercise Your Brain  

     Forgetting names or important details never feels good...be it in a personal or professional setting. The key is to stay mentally active. Here are some great tips you can share with your clients, referral partners, and family members that can help keep their memory in tip top shape: 

1. Memorize Something New. Memorizing almost anything is one of the best exercises you can give your brain. Start small by memorizing your shopping list or daily schedule, or you can take it to another level by learning a musical instrument or a new language. Doing any of these exercises can potentially lead to quick and substantial improvement in memory, which will be helpful both personally and professionally.

2. Get a Hobby. Whether you choose something like gardening, bird watching, or flying model airplanes, taking on any new hobby is good for mental stimulation as well as overall mood. Look for activities you really enjoy and that allow you to learn and have fun, simultaneously. All of these traits are components to living a happy and rewarding life, and remaining mentally sharp.

3. Challenge Yourself. Daily patterns can be the enemy of mental sharpness. It's one thing to keep a schedule or to plan out daily events. What we're talking about is having the exact same routine, nearly every day. Falling into rigid patterns promotes mental passivity, or the opposite of stimulation. So try mixing things up a bit. Challenge yourself by participating in new activities. Join a softball league, a reading club, or even a theater group. At the very least, play around with your daily schedule.

     The brain is a complex organ, able to create new connections between nerve cells when it is properly stimulated. Those connections lend themselves to optimal brain function, increased intelligence, and improved memory. The above tips will help people notice a difference in their memory in no time.