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LOCAL EDITION ANALYTICS However, despite the seem- ingly positive outlook, consum- ers continue to feel uneasy with their financial security. Any reading below 100 signi- fies a lower level of financial security in comparison with the previous year. Greg McBride, CFA, Bankrate.com's senior financial analyst, said, "Each of the components—job security, savings, debt, net worth, and overall financial security—im- proved over the past months." McBride continued by say- ing that the "overall Financial Security Index is still showing a decline versus one year ago, so ample room for improvement remains. The negative sentiment is highest among retirees and lower-income households." Bankrate.com reported that 20 percent of Americans feel more se- cure with their jobs than last year, with 17 percent feeling less secure. When it came to savings, Bankrate.com described it to be "the Achilles' heel of financial security." Those under the age of 30, normally college graduates and households making an annual income of $75,000, continue to be the most comfortable with their savings, versus households who earned under $30,000, including the unemployed. Nearly 41 percent of Americans percent felt more comfortable, outweighing the 14 percent who felt less comfort- able. Debt was a neutral issue; 23 percent said they were more comfortable than they were last year, while 23 percent also said they were less comfortable. Net worth, for the first time since June, reflected positively. With 24 percent reporting much higher net worth than a year ago, versus the 22 percent that reported lower net worth. Bankrate.com claimed typi- cally those under the age of 50 are more likely to report high net worth, rather than those below the age of 50. Households boasting an income of $75,000 and more are most likely to have higher net worth than those with an annual income of $30,000 less. Carwin Forecasts Recovery in Western U.S. THE ADVISORY GROUP RECENTLY RELEASED ITS SURVEY PREDICTING TIMELINES FOR HOUSING MARKET RECOVERY IN TWO STRUGGLING STATES. NEVADA AND PHOENIX // Revealing results from its predic- tive modeling survey of Las Las Vegas and Phoenix begin to experience dropping numbers of distressed properties. For Las Vegas, Carwin predicts that the housing market will even- tually normalize to levels of new and existing home sales that were average for the metro area during the early 2000s. However, the com- pany's recent paper indicates that such strong, positive momentum isn't likely to occur until around 2016 due to the heavy burden of distressed properties in the region. new home sales were credit sales, and 75 percent of all resales were credit sales. Additionally, Carwin's model included several critical variables targeting the absorption of distressed inventory. Carwin, a Winchester Carlisle Company, operates as a national full-service real estate advisory firm. The company specializes in creating solutions to complex problems and working with mul- tiple stakeholders to restructure, manage, finance, develop, and dispose of residential, commercial, and mixed-use real estate assets. FOMC Announces Low Interest Rate Extension THE COMMITTEE RECENTLY REVEALED PLANS TO KEEP INTEREST RATES CLOSE TO 0 THROUGH 2014. WASHINGTON, D.C. // Members of the Federal Open Market Committee (FOMC) decided recently to keep interest rates between 0 percent and .25 percent until 2014, even while the economy steadily improves. All but one of the Fed's gover- nors voted to extend the policy enacted last fall for another two years, where originally the central bank had determined to delay higher interest rates until 2013. Richmond Fed President Vegas, Nevada, and Phoneix, Arizona, Carwin Advisors is forecasting the recovery timeline for both metropolitan areas. According to Carwin, Las Vegas will have a longer wait for hous- ing market improvement, while Phoenix is expected to be well on the way to recovery by 2013. Carwin's report evaluated mul- tiple variables in both regions in- cluding distressed housing stock, shadow inventory, and market pace. The data model utilized by Carwin hinges on the eventual upward pressure on home pric- ing and home construction as Analysis for Phoenix shows that a healthy housing market is closer at hand, and Carwin is forecasting a rapid absorption of distressed stock during 2012. By 2013, Phoenix should be experiencing a significant uptick across the general housing market, promoting better stability and pav- ing the way for greater gains. To conduct its statistical sur- vey of Las Vegas and Phoenix, Carwin's study encompassed the following assumptions: All mortgages financed between 2002 and 2006 are underwater or near negative equity, 100 percent of all Jeffrey Lacker dissented from the voting majority, preferring to hold off on revealing how long the Fed wanted to maintain historically low interest rates. The Fed said that it made the decision in lieu of evidence from December that showed unem- ployment remaining steady. "Strains in global financial mar- kets continue to pose significant downside risks to the economic outlook," central bank said in a statement, referencing debt crises in eurozone countries. The Fed added that it "expects economic growth over com- ing quarters to be modest and consequently anticipates that the unemployment rate will decline only gradually." THE M REPORT | 67 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET