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We offer some of the most competitive rates around. And we have lots of useful information to help you make intelligent, well-informed decisions for your home loan.

Call 480-775-9000 today to receive the full benefit of American Alliance Mortgage Company’s Friendly & Helpful services.

Loan Officers available for FREE consultations and FREE credit report analysis.

We want to earn your business.

We listen to your objectives, goals, your particular situation & your concerns.

What I do today is important because I am exchanging a day of my life for it!

Home prices have slipped in Arizona to “significantly below cost to build.”  

There are fewer home buyers and homeowners creating a demand for rentals for years to come. *** see the chart below

Wherever you are … Lock in your home loan rates now, there is not much room for it to drop further.  After the possible tax deductions, coupled with the high likelihood of inflation in the years to come this is cheap money.  We have some investors that will allow up to 10 financed properties most are limited to 4 financed properties.

***HELPFUL INFORMATION FOR YOUR REFERENCE!

Conventional mortgage – when is a buyer eligible to purchase?

          FHA mortgage – when is a buyer eligible to purchase? 

          VA mortgage – when is a buyer eligible to purchase?

   USDA mortgage – when is a buyer eligible to purchase?

          Information subject to change at any time without notice.  10/10

“I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW. ” Og Mandino. And wondering what kind of action will happen on Healthcare reform was certainly on everyone’s mind last week. But what does this mean for the markets and home loan rates?

Traders have been watching the debate closely, and it’s possible that passage of the Healthcare Bill could have a negative impact on the Stock market. If this is the case, there could in turn be a positive outcome for Bonds and home loan rates.

But that’s not the only action traders were keeping an eye on last week. Tuesday’s meeting of the Federal Open Market Committee offered little surprise, with no change to the Fed Funds Rate, which is the rate banks charge each other for lending overnight, or the language describing that the Fed Funds Rate would remain “exceptionally low for an extended period of time.”

While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road…and remember, inflation is the arch enemy of bonds and home loan rates…it does appear that inflation is subdued at present. Last week’s reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.

And there were additional headlines last week on other possible action that could impact Bonds and home loan rates negatively. Both Fitch Ratings and Moody’s have stated that the US has moved substantially closer to losing its AAA credit rating. This would be a very bad turn of events, as it would cost the US a lot more money in interest payments, by way of higher rates, to attract new investors to buy our Bonds. And higher rates on Treasuries would influence home loan rates higher as well.??

If you or someone you know would like to learn more about how you can take advantage of today’s low-rate environment, or the Homebuyer’s Tax Credit which is due to expire on April 30, give me a call.

Bonds were able to improve above important technical levels in the middle of the week, but were unable to hang on to these improvements. As a result, Bonds and home loan rates ended the week about the same as where they began.

SPRING IS IN THE AIR, WHICH MEANS IT’S TIME TO TAKE SOME CLEANING ACTION! CHECK OUT THIS WEEK’S MORTGAGE MARKET GUIDE VIEW FOR SOME SAFE AND HEALTHY SPRING CLEANING TIPS.

The action during Sunday’s healthcare vote will almost certainly impact the markets in the coming week, and there is also a full slate of economic reports to watch for. First up, there will be a double-dose of housing news with Tuesday’s Existing Home Sales Report and Wednesday’s New Home Sales Report.

Also, on Wednesday we’ll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time. Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.

Not to be missed will be Thursday’s weekly Initial Jobless Claims Report. While last week’s initial claims were essentially inline with expectations, the ugly component of the report was the 5,888,048 people collecting EUC (Emergency Unemployment Compensation) benefits. This is a whopping 360,000 person increase from the prior week.? Unfortunately, the labor market continues to be very weak. ?

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, despite midweek volatility, Bonds and home loan rates ended the week very near where they began. With all the action in store, I’ll be watching closely to see in what direction the markets and rates move this week. As always, please feel free to call or email to get more information on what the current rate climate means to you.

Safe Spring Cleaning for Your Home and Family

Many parts of the country are already warming up to spring…and that means spring cleaning. But have you ever considered what you’re using to clean your home…and if it’s really safe for your family? The problem with cleaning products is that there is very little regulation and virtually no labeling requirements.

“A lot of cleaning products contain toxic ingredients that aren’t properly regulated, disclosed, or in some cases even tested,” said Sara Mohs, co-founder of simplyneutral™, a company that promotes sustainable living through non-toxic cleaners.

In fact, most household cleaners are produced using a petroleum-based formula. That’s right, petroleum! In addition, they typically include chemicals, fragrances, and dyes that can be irritating to your eyes, skin, and respiratory tract.

In light of last week’s Poison Prevention Week, here’s a list of natural alternatives that work great and are probably already in your pantry:

Baking soda – We all know that baking soda absorbs odors, especially in refrigerators, but did you know it’s also a simple and effective cleaner? Just mix baking soda with warm water for an inexpensive cleaner comparable to commercial “abrasive” cleaners.

Vinegar – White vinegar is actually a deodorizer and a disinfectant…making it a great all-purpose cleaner. Avoid using vinegar solutions on marble or grout, but it’s perfect for all of the other surfaces in the kitchen and bathroom.

Lemon juice – Use lemon juice on hard-water stains, soap scum, even rust stains in the shower, tub, and toilet. Mix lemon juice with salt to remove stubborn stains from coffee pots. Or you can mix lemon juice with baking soda for a softer, paste-like cleaning solution. Add a little to olive oil for an effective wood polish. Blend it with water to make a potent air freshener.

Cornstarch – Cornstarch makes an effective glass and surface cleaner. Plus, you can combine 2 tbsp of cornstarch with 3/4 cup of baking soda for an inexpensive carpet freshener.

Borax – Also known as sodium borate, borax is best known as a hard-water laundry soap, but it also cleans wallpaper, painted walls, and other painted surfaces.

In addition to these natural ingredients, there are also a number of non-toxic cleaners that can be bought in stores. But make sure you consider a couple of points before making your purchase.

First, read the label carefully. “Although a cleaner may contain natural ingredients, it may also include dyes, fragrances, or synthetic preservatives,” Mohs said. “For example, if the label says fragrances are added, it may contain up to 150 synthetic chemicals.”

Second, you may want to take a quick look at the company itself to see if it is serious about producing natural cleaners that are safe for your family, your home, and the environment.

For more information and tips about non-toxic cleaning, visit www.simplyneutral.com.

“WHAT DO WE LIVE FOR, IF IT IS NOT TO MAKE LIFE LESS DIFFICULT FOR EACH OTHER?” George Eliot. The current crisis in Haiti certainly puts this sentiment into perspective. For information on how you can help, see the View article below.
Last week it was reported that the inflation measuring Consumer Price Index (CPI) for December came in lower than expected. Overall, CPI for all of 2009 was fairly tame. But as you can see in the chart below, the closely watched Core CPI, which strips out volatile food and energy, rose to 1.8% year-over-year in December after hitting a multi-year low of 1.4% in August.
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So what does this mean for Bonds and home loan rates?
Clearly, inflation is tame at the moment…but slowly trending higher. The Fed will be watching this data very carefully in the coming months, as they seek to time perfectly the exit from what is essentially a zero rate environment. The Fed will likely err on the side of keeping the Fed Funds Rate lower for longer than they perhaps should, in order to avoid a “double dip” recession…but that will likely lead to more inflation down the road. Remember, Bonds and home loan rates hate inflation – so home loan rates are likely to trend higher as more inflation creeps into the economy.
Speaking of the Fed, they stepped up their Mortgage Backed Security (MBS) buying in the latest week, purchasing $14B in MBS, whereas the most recent prior purchases were around $9.5B. The Fed now has $113B left of their $1.25T allotted commitment, with the buying program set to wrap up on March 31st. The Fed’s purchases have helped home loan rates stay historically low – and although there has been some buzz about an extension of the program, it seems unlikely that will come to fruition. When the Fed purchases stop, home loan rates will be very susceptible to moving higher – so if we have not talked yet about your own home loan situation, or if you know of a friend, family member, neighbor or coworker who might like some advice, let’s be sure to connect very soon…time is of the essence.
The next Federal Reserve Policy Statement will be coming on January 27th, and they have gone out of their way to mention in the last several statements that the MBS buying program will not continue. Count on me to be listening closely when the Fed releases this next Statement, as this will help further gauge what home loan rates have in store.
In other news, Retail Sales for December came in well below expectations and were down from the 1.8% increase seen in November. While this suggests weakness in the Retail sector, it has to be taken with a grain of salt, as it is likely that frigid temperatures and snowy conditions throughout much of the country were contributing factors to the decline. Overall, 2009 was a very tough year for retail. Retail Sales for 2009 dropped 6.2% compared with 2008, which was the biggest decline on record, dating back to 1992.
There was some good news, however, on the manufacturing front, as the Empire State Manufacturing Index was reported above estimates, indicating manufacturing expansion in New York state and parts of New Jersey and Connecticut.
For the week overall Bonds were able to break above important technical levels, and home loan rates ended the week slightly better than where they began.
The markets will be closed on Monday in observance of the Martin Luther King, Jr. holiday, but plenty of news will follow later in the week. Wednesday brings more news from the inflation front, with the Producer Price Index (PPI) Report, which measures inflation at the wholesale level. Wednesday will also bring a read on the housing market, with the Housing Starts and Building Permits Report.
There’s also more manufacturing news ahead on Thursday with the Philadelphia Fed Report. Also in store for Thursday is another look at the weekly Initial Jobless Claims Report…so it’s sure to be an interesting week, with a variety of data for the markets to absorb.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
As you can see in the chart below, Bonds and home loan rates improved last week, largely due to tame inflation numbers and a decline in Stocks. In fact, Bonds were actually able to power through a tough technical “ceiling of resistance” at the 200-day Moving Average…but it remains to be seen if they will hold their gains. I’ll be watching closely to see if Bonds and home loan rates can build on their positive momentum in the coming week.

A Helping Hand for Haiti
The catastrophe in Haiti cries out for all of us to do whatever we can to help. But many of us aren’t sure exactly how to help or which organization to entrust with a donation.
To help you make sure your donation makes as big a difference as possible, consider donating to AmeriCares, which is one of the many fine organizations helping Haiti through disaster relief. AmeriCares is in the business of disaster relief and has an extensive network on the ground in Haiti, so your money will go to get supplies directly to those stricken instead of setting up infrastructure. You can learn more about them and donate at http://www.americares.org.
Obviously, the current economy presents challenges for many of us, but if you are able to help, your donation will go a long way. Whether it is through AmeriCares, or some other organization of your choice, any assistance you provide can help ease the suffering of those in need.

“Don’t believe the hype!” The words from Public Enemy’s hit song title rang true once again last week when the Commerce Department reported the Gross Domestic Product (GDP) for the 3rd Quarter. As you can see from the chart below, GDP rose by 3.5% for the first gain in a year and the strongest reading in two years.
While most media outlets were giddy about the news and started the hype that the recession is behind us, it’s important to remember that there’s more to the economic data than just the headlines.
The temporary “Cash for Clunkers” program has now expired, but was a big part of last quarter’s GDP gain. If we remove it from the total, the reading would have been a more modest 1.9%. But there is even more to the rise in the latest GDP number that is just temporary…
Also bolstering the economy has been the $8,000 first-time homebuyer tax credit – which is set to expire at the end of this month. Many home buyers have been taking advantage of this program – and wisely so.
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New Home Sales were reported last week, showing a 7.5-month supply of inventory. While that number is slightly worse than last month’s 7.3 reading, it’s still a big improvement from where we were in January. Back in January, inventory levels reached a high of 12.4-month supply! The improvement in housing inventories has been due in large part to the $8,000 First Time Homebuyer Tax Credit, which is set to expire on November 30.
There is a real possibility of an extension of this program through a proposed Bill, but it is not yet a certainty. The extension Bill still must be reconciled between the House and Senate, and then voted on for final approval. Under the current extension proposal, sales with signed purchase agreements by April 30th that close before June 30th, 2010 would qualify for the credit.
Another positive element would be the possible addition of $6,500 tax credit for other primary home purchasers, meaning the tax credit would no longer be limited only to first-time homebuyers. There is also a possibility that qualifying income limits could increase from $75,000 to $125,000 for singles, and from $150,000 to $250,000 for joint tax filers.
I will be keeping an eye on this for you, so stay tuned.
After all last week’s news and movement in the markets, Bonds and rates ended the week slightly better than where they began.
DON’T FORGET: THIS WEEKEND MARKS THE END OF DAYLIGHT SAVING TIME. SO MAKE SURE YOU SET YOUR CLOCKS BACK TO AVOID UNEXPECTED PROBLEMS…LIKE THE KIND DESCRIBED IN THE

MORTGAGE MARKET GUIDE VIEW ARTICLE BELOW!

This week brings us new employment numbers…and a chance to see if the labor market is showing signs of recovery. The employment news begins Wednesday with the ADP National Employment Report. Sandwiched between that report and Friday’s Jobs Report, is the Initial Jobless Claims report on Thursday.
The big news comes on Friday, when the all-important Jobs Report will be released. Last month’s report underscored the struggling labor market, as the Labor Department reported 263,000 jobs lost in September and an increase in the unemployment rate to 9.8%. The report due out this week is expected to show 166,000 jobs lost in October, which would be significantly better than the previous month if it happens. However, the Unemployment Rate is expected to continue its climb to 9.9%.
In addition to employment news, we’ll also see the ISM Index on Monday. This is the king of all manufacturing indices and is considered the single best snapshot of the factory sector.
Finally, the Federal Open Market Committee (FOMC) holds its two-day meeting this week, with an announcement of the Fed Rate Decision and Policy Statement due on Wednesday at 2:15 p.m. (ET).
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Mortgage Bonds were able to bounce back last week with help from weakness in the Stock markets.

Turning Back the Hands of Time
This weekend, the sun set on another season of Daylight Saving Time. The extra daylight we now enjoy was actually the result of the Energy Policy Act, which was enacted by Congress back in 2005. But did you know that throughout its long history, Daylight Saving Time has had a remarkable and sometimes unexpected impact?
A man was actually able to avoid the draft for the Vietnam War using a Daylight Saving Time loophole. When he was born, it was just after midnight, DST. When he was drafted, he successfully argued that in his home state of Delaware, standard time – not DST – was the official time for recording births. So he was technically born on the previous date–which had a much higher draft lottery number – and he was able to avoid being drafted.
In September 1999, the West Bank was on Daylight Saving Time, while Israel had switched back to standard time. A group of West Bank terrorists prepared some timed bombs – but misunderstood the time change – and the bombs exploded early, killing the terrorists themselves, rather than the intended victims – two busloads of innocent citizens.
In the 1950s and 60s, each state and locality was permitted to choose start and end DST dates as they desired. During 1965, Minneapolis and St. Paul – which are considered one metropolitan area – didn’t agree on start dates, and for a period of time, these Twin Cities had a one hour time change between them. And on one Ohio to Virginia bus route, passengers technically had to change their watches seven times in 35 miles!
To keep to their published timetables, Amtrak trains cannot leave a station before the scheduled time. So when the clocks “fall back” in the fall, all trains that are running on time actually stop at 2 am – the official time of DST change – and wait one hour before resuming their routes. In the spring, the routes instantaneously become one hour behind schedule, but they just keep going and do their best to make up the time.
So Daylight Saving Time sure can have some unexpected impact.
As we enter the first week of Daylight Saving Time, be sure to double-check all of your electronic devices and confirm that the time is correct. Although you may be accustomed to your computer and maybe even your digital clock in your car automatically updating, the recent change of dates for Daylight Saving Time may require that these devices be manually changed, as they now may NOT be ready to update to the correct time on the correct date!

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.