Attitude Scales - Rating Scales to measure data

Scaling Techniques for Measuring Data Gathered

from Respondents
The term scaling is applied to the attempts to measure
the attitude objectively. Attitude is a resultant of
number of external and internal factors. Depending
upon the attitude to be measured, appropriate scales
are designed. Scaling is a technique used for
measuring qualitative responses of respondents such
as those related to their feelings, perception, likes,
dislikes, interests and preferences.
Types of Scales
Most frequently used Scales

1. Nominal Scale

2. Ordinal Scale

3. Interval Scale

4. Ratio Scale

Self Rating Scales

 1. Graphic Rating Scale

2. Itemized Rating Scales

a. Likert Scale

b. Semantic Differential Scale

c. Stapel’s Scale

d. Multi Dimensional Scaling

e. Thurston Scales

f. Guttman Scales/Scalogram
Analysis

g. The Q Sort technique

Four types of scales are generally used for Marketing

Research.
1. Nominal Scale
This is a very simple scale. It consists of
assignment of facts/choices to various alternative
categories which are usually exhaustive as well
mutually exclusive. These scales are just
numerical and are the least restrictive of all the
scales. Instances of Nominal Scale are - credit
card numbers, bank account numbers, employee
id numbers etc. It is simple and widely used
when relationship between two variables is to be
studied. In a Nominal Scale numbers are no more
than labels and are used specifically to identify
different categories of responses. Following
example illustrates -
What is your gender?
[ ] Male
[ ] Female
Another example is - a survey of retail stores
done on two dimensions - way of maintaining
stocks and daily turnover.
How do you stock items at present?
[ ] By product category
[ ] At a centralized store
[ ] Department wise
[ ] Single warehouse
Daily turnover of consumer is?
[ ] Between 100 – 200
 [ ] Between 200 – 300
[ ] Above 300
A two way classification can be made as follows
Daily/Sto
Produc
ck Single
t Departm Centraliz
Turnove Wareho
Catego ent wise ed Store
r use
ry
Method
100 – 200
200 – 300
Above
300
Mode is frequently used for response category.
2. Ordinal Scale
Ordinal scales are the simplest attitude
measuring scale used in Marketing Research. It
is more powerful than a nominal scale in that the
numbers possess the property of rank order. The
ranking of certain product attributes/benefits as
deemed important by the respondents is obtained
through the scale.
Example 1: Rank the following attributes (1 –
5), on their importance in a microwave oven.
 1. Company Name
2. Functions
3. Price
4. Comfort
5. Design
The most important attribute is ranked 1 by the
respondents and the least important is ranked 5.
Instead of numbers, letters or symbols too can be
used to rate in a ordinal scale. Such scale makes
no attempt to measure the degree of favourability
of different rankings.
Example 2 – If there are 4 different types of
fertilizers and if they are ordered on the basis of
quality as Grade A, Grade B, Grade C, Grade D
is again an Ordinal Scale.
Example 3 – If there are 5 different brands of
Talcom Powder and if a respondent ranks them
based on say, “Freshness” into Rank 1 having
maximum Freshness Rank 2 the second
maximum Freshness, and so on, an Ordinal Scale
results.
Median and mode are meaningful for ordinal
scale.
3. Interval Scale
Herein the distance between the various
categories unlike in Nominal, or numbers unlike
in Ordinal, are equal in case of Interval Scales.
The Interval Scales are also termed as Rating
Scales. An Interval Scale has an arbitrary Zero
point with further numbers placed at equal
intervals. A very good example of Interval Scale
is a Thermometer.
Illustration 1 – How do you rate your present
refrigerator for the following qualities.
Company Less Well
12345
Name Known Known
Functions Few 1 2 3 4 5 Many
Price Low 1 2 3 4 5 High
Design Poor 1 2 3 4 5 Good
Very
Overall Very
Dis- 12345
Satisfaction Satisfied
Satisfied
Such a scale permits the researcher to say that
position 5 on the scale is above position 4 and
also the distance from 5 to 4 is same as distance
from 4 to 3. Such a scale however does not
permit conclusion that position 4 is twice as
strong as position 2 because no zero position has
been established. The data obtained from the
 Interval Scale can be used to calculate the Mean
scores of each attributes over all respondents.
The Standard Deviation (a measure of
dispersion) can also be calculated.
4. Ratio Scale
Ratio Scales are not widely used in Marketing
Research unless a base item is made available for
comparison. In the above example of Interval
scale, a score of 4 in one quality does not
necessarily mean that the respondent is twice
more satisfied than the respondent who marks 2
on the scale. A Ratio scale has a natural zero
point and further numbers are placed at equally
appearing intervals. For example scales for
measuring physical quantities like – length,
weight, etc.
The ratio scales are very common in physical
scenarios. Quantified responses forming a ratio
scale analytically are the most versatile. Rati
scale possess all he characteristics of an internal
scale, and the ratios of the numbers on these
scales have meaningful interpretations. Data on
certain demographic or descriptive attributes, if
they are obtained through open-ended questions,
will have ratio-scale properties. Consider the
following questions :
 Q 1) What is your annual income before taxes?
______ $
Q 2) How far is the Theater from your home ?
______ miles
Answers to these questions have a natural,
unambiguous starting point, namely zero. Since
starting point is not chosen arbitrarily,
computing and interpreting ratio makes sense.
For example we can say that a respondent with
an annual income of $ 40,000 earns twice as
much as one with an annual income of $ 20,000.
Self rating scales
1. Graphic Rating Scale
The respondents rate the objects by placing a
mark at the appropriate position on a line that
runs from one extreme of the criterion variable to
another. Example
5
0 1 (neither 7
(poor (bad good (good
quality)quality) nor quality)
bad)
BRAND 1
 This is also known as continuous rating scale.
The customer can occupy any position. Here one
attribute is taken ex-quality of any brand of
icecream.
poor good
BRAND 2
This line can be vertical or horizontal and scale
points may be provided. No other indication is
there on the continuous scale. A range is
provided. To quantify the responses to question
that “indicate your overall opinion about ice-
ream Brand 2 by placing a tick mark at
appropriate position on the line”, we measure the
physical distance between the left extreme
position and the response position on the line.;
the greater the distance, the more favourable is
the response or attitude towards the brand.
Its limitation is that coding and analysis will
require substantial amount of time, since we first
have to measure the physical distances on the
scale for each respondent.
2. Itemized Rating Scales
These scales are different from continuous rating
scales. They have a number of brief descriptions
associated with each category. They are widely
used in Marketing Research. They essentially
take the form of the multiple category questions.
The most common are – Likert, Sementic, Staple
and Multiple Dimension. Others are – Thurston
and Guttman.
a. Likert Scale
It was developed Rensis Likert. Here the
respondents are asked to indicate a degree of
agreement and disagreement with each of a
series of statement. Each scale item has 5
response categories ranging from strongly
agree and strongly disagree.
5 1
4 3 2
Strongly Strongly
AgreeIndifferentDisagree
agree disagree
Each statement is assigned a numerical score
ranging from 1 to 5. It can also be scaled as
-2 to +2.
-2 -1 0 1 2
For example quality of Mother Diary ice-
cream is poor then Not Good is a negative
statement and Strongly Agree with this
means the quality is not good.
Each degree of agreement is given a
numerical score and the respondents total
score is computed by summing these scores.
This total score of respondent reveals the
particular opinion of a person.
Likert Scale are of ordinal type, they enable
one to rank attitudes, but not to measure the
difference between attitudes. They take
about the same amount of efforts to create as
Thurston scale and are considered more
discriminating and reliable because of the
larger range of responses typically given in
Likert scale.
A typical Likert scale has 20 – 30
statements. While designing a good Likert
Scale, first a large pool of statements
relevant to the measurement of attitude has
to be generated and then from the pool
statements, the statements which are vague
and non-discriminating have to be
eliminated.
Thus, likert scale is a five point scale
ranging from ’strongly agreement’to
’strongly disagreement’. No judging gap is
involved in this method.
b. Semantic Differential Scale

This is a seven point scale and the end

points of the scale are associated with
bipolar labels.
1 7
Unpleasant 2 3 4 5 6 Pleasant
Submissive Dominant
Suppose we want to know personality of a
particular person. We have options-
1. Unpleasant/Submissive
2. Pleasant/Dominant
Bi-polar means two opposite streams.
Individual can score between 1 to 7 or -3 to
3. On the basis of these responses profiles
are made. We can analyse for two or three
products and by joining these profiles we get
profile analysis. It could take any shape
depending on the number of variables.
Profile Analysis

---------------/---------------
----------/--------------------
--------/----------------------
 Mean and median are used for comparison.
This scale helps to determine overall
similarities and differences among objects.
When Semantic Differential Scale is used to
develop an image profile, it provides a good
basis for comparing images of two or more
items. The big advantage of this scale is its
simplicity, while producing results
compared with those of the more complex
scaling methods. The method is easy and
fast to administer, but it is also sensitive to
small differences in attitude, highly
versatile, reliable and generally valid.
c. Stapel’s Scale
It was developed by Jan Stapel. This scale
has some distinctive features:-
i. Each item has only one word/phrase
indicating the dimension it represents.
ii. Each item has ten response categories.
iii. Each item has an even number of
categories.
iv. The response categories have numerical
labels but no verbal labels.
For example, in the following items,
suppose for quality of ice cream, we ask
 respondents to rank from +5 to -5. Select a
plus number for words which best describe
the ice cream accurately. Select a minus
number for words you think do not describe
the ice cream quality accurately. Thus, we
can select any number from +5,for words we
think are very accurate, to -5,for words we
think are very inaccurate. This scale is
usually presented vertically.
+5
+4
+3
+2
+1
High Quality
-1
-2
-3
-4
-5
This is a unipolar rating scale.
b.Multi Dimensional Scaling
It consists of a group of analytical
techniques which are used to study
consumer attitudes related to perceptions
and preferences. It is used to study-
I. The major attributes of a given class of
products perceivedby the consumers in
considering the product and by which
they compare the different ranks.
II. To study which brand competes most
directly with each other.
III. To find out whether the consumers
would like a new brand with a
combination of characteristics not found
in the market.
IV. What would be the consumers ideal
combination of product attributes.
V. What sales and advertising messages
are compatible with consumers brand
perceptions.
It is a computer based technique. The
respondents are asked to place the various
brands into different groups like similar,
very similar, not similar, and so on. A
goodness of fit is traded off on a large
number of attributes. Then a lack of fit index
is calculated by computer program. The
purpose is to find a reasonably small number
of dimensions which will eliminate most of
the stress. After the configuration for the
consumer’s preference has been developed,
the next step is to determine the preference
with regards to the product under study.
These techniques attempt to identify the
product attributes that are important to
consumers and to measure their relative
importance.
This scaling involves a unrealistic
assumption that a consumer who compares
different brands would perceive the
differences on the basis of only one
attribute.For example, what are the attributes
for joining M.Com course. The responses
may be –to do PG, to go into teaching line,to
get knowledge, appearing in the NET. There
are a number of attributes, you can not base
decision on one attribute only. Therefore,
when the consumers are choosing between
brands, they base their decision on various
attributes. In practice, the perceptions of the
consumers involve different attributes and
any one consumer perceives each brand as a
composite of a number of different
attributes. This is a shortcoming of this
scale.
 Whenever we choose from a number of
alternatives, go for multi- dimensional
scaling. There are many possible uses of
such scaling like in market segmentation,
product life cycle, vendor evaluations and
advertising media selection.
The limitation of this scale is that it is
difficult to clearly define the concept of
similarities and preferences. Further the
distances between the items are seen as
different
b.Thurston Scales
These are also known as equal appearing
interval scales. They are used to measure the
attitude towards a given concept or
construct. For this purpose a large number of
statements are collected that relate to the
concept or construct being measured. The
judges rate these statements along an 11
category scale in which each category
expresses a different degree of
favourableness towards the concept. The
items are then ranked according to the mean
or median ratings assigned by the judges and
are used to construct questionnaire of twenty
to thirty items that are chosen more or less
 evenly across the range of ratings. The
statements are worded in such a way so that
a person can agree or disagree with them.
The scale is then administered to assemble
of respondents whose scores are determined
by computing the mean or median value of
the items agreed with. A person who
disagrees with all the items has a score of
zero. So, the advantage of this scale is that it
is an interval measurement scale. But it is
the time consuming method and labour
intensive. They are commonly used in
psychology and education research.
c. Guttman Scales/Scalogram Analysis
It is based on the idea that items can be
arranged along a continuem in such a way
that a person who agrees with an item or
finds an item acceptable will also agree with
or find acceptable all other items expressing
a less extreme position. For example –
Children should not be allowed to watch
indecent programmes or government should
ban these programmes or they are not
allowed to air on the television. They all are
related to one aspect.
 In this scale each score represents a unique
set of responses and therefore the total score
of every individual is obtained. This scale
takes a lot of time and effort in
development.
They are very commonly used in political
science, anthropology, public opinion,
research and psychology.
d.The Q Sort technique
It is used to discriminate among large
number of objects quickly. It uses a rank
order procedure and the objects are sorted
into piles based on similarity with respect to
some criteria. The number of objects to be
sorted should be between 60-140
approximately. For example, here we are
taking nine brands. On the basis of taste we
classify the brands into tasty, moderate and
non tasty.
We can classify on the basis of price also-
Low, medium, high. Then we can attain the
perception of people that whether they
prefer low priced brand, high or moderate.
We can classify sixty brands or pile it into
 three piles. So the number of objects is to be
placed in three piles-low, medium or high.
Thus, the Q-sort technique is an attempt to
classify subjects in terms of their similarity
to attribute under study.

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Displaying blog entries 1-10 of 204

12/17/2010 Incline Village Lake Tahoe Nevada
Weather Alert
Thursday, December 16, 2010
by Tim Lampe, Lakeshore Realty

Dec. 16, 2010

Tahoe residents and visitors should be preparing

today for a series of storms that could represent one
of the five wettest second halves of December on
record.

The next 6 to 8 days, at least, are going to be wet. The

big question will be snow levels, and whether that
moisture arrives as mostly rain or snow at the 7,000
foot-elevation mark of the major mountain passes
and the resort base lodges.

At this point it appears that we will see snow below

5,000 feet with the first wave on Friday, then rain up
to around 7,000 feet on Saturday, followed by more
snow Saturday night and Sunday. After a brief break
-- or at least a lessening of the intensity of the snow
late Sunday into Monday -- another wave is likely to
come our way early next week, and that one also has
the potential to be on the warm side.

Where all of this precipitation falls as snow, we

should be talking about 3 to 6 feet of accumulations
by Monday and 6 to 8 feet before Christmas, perhaps
more. This won't be Utah-style dry powder, but the
classic Sierra Cement at best, wet and sticky. Where
it's raining in the Tahoe Basin, small stream flooding
and ponding on the streets will be a real possibility.

The pattern is the result of the coming together of a

huge low pressure system out of the Gulf of Alaska
and a stream of warm moisture from the Central
Pacific. The rain and snow line over Tahoe this
weekend and into next week will depend on where
these two forces merge. If the northern stream, with
its colder polar air, prevails, then snow levels should
remain below 7000 feet for most of the coming week.
But at times when the southern stream is dominant,
snow levels will rise, and we will see more rain.
There's no way to know for sure which way this will
go until each wave in the series of storms is nearly
upon us.

Tahoe Outdoors: Coming events

The Tahoe Rim Trail Association will be celebrating

National Winter Trails Day Jan. 8 from 10 am until 2
p.m. near the west end of Tahoe Meadows on the
south side of Mt. Rose Highway. The TRTA will be
offering free guided snowshoe hikes throughout the
day, providing users with useful information on
winter travel as well as dramatic views of Lake
Tahoe. Tahoe Mountain Sports will also be on site to
showcase winter recreation gear, from MSR and
Kahtoola snowshoes to avalanche beacons and
probes. A presentation by the American Red Cross on
winter safety and preparedness will take place at
noon, along with an assortment of other talks on how
to make this winter season as enjoyable as possible.
For younger winter enthusiasts, there will be an
ongoing snowman contest throughout the day, along
with snow shelter construction and demonstrations.

MONTHLY WEATHER ALMANAC DECEMBER

TRUCKEE
High: 50 on December 7
Low: 9 on December 15
Average temp: 35.1
Departure from norm: +5.3
Precipitation: 3.06
Normal precip for the entire month: 4.34
Percent of normal for the month: 76%
Total snowfall: 9.0 inches

SOUTH LAKE TAHOE

High: 56 on December 7
Low: 15 on December 15
Average temp: 38.5
Departure from norm: +9.7
Precipitation (water content): 1.77
Normal precip for the month: 5.4 inches
Percent of normal for the entire month: 33%
Total snowfall: 3.0 inches
Add Comment
Incline Village Real Estate Economic Update
12/16/2010
Wednesday, December 15, 2010
by Tim Lampe, Lakeshore Realty

Posted by Tim Lampe, Written by Steve Peterson,

Incline Village Nevada

The tax discussions are already causing the credit

markets to worry about looming inflation, and to act
and react in certain ways. Interest rates have been
rising at a significant clip, and it doesn't look like
another of the credit market's momentary fancies. It
may be that rates will continue their upward trend.

And we will hear more and more about the possibility

of higher inflation. We already have the Fed's
"quantitative easing" program in place, one of whose
effects is to give a little boost to inflation in our
nation. Economists also argue that the results of the
looming tax deal will most likely include not only
support for the economy but also a gradual lowering
of the value of Treasury securities. Both are
inflationary.

So it appears at this moment that interest rates are

entering an upward trend. This isn't entirely bad,
given that fixed-income investors have received so
little return for so long. Further, the very recent huge
purchases of municipal bonds by PIMCO's Bill Gross
suggest that--in his view, at least--rates aren't likely
to rise too far too fast. So I will be listening for
anything Mr. Gross has to say in the near future. And
on we go....

KEY INDICATORS [12/16/10]

Gold $1401.60/ounce [down]

Crude Oil (Brent) $91.55/brl [up]

U.S. Dollar to…

Euro .7577 [up]

Japanese Yen 83.37 [up]

6-mo Treasury Bill Yield 0.18%

10-yr Treasury Note Yield 3.38%

[6-month up 1 bp, 10-yr up 30 bps]

11th Dist Cost of Funds 1.654%[-]

30-yr Fixed-rate Mortgage 4.95%

15-yr Fixed-rate Mortgage 4.33%

1-yr ARM 3.82%

[HSH averages rates: 30-yr

up 9 bps;15-yr up 7 bps; 1-yr ARM up 9 bps]

Mortgage Bankers Association Mortgage

Applications Index

week ending 12/3

Overall
 Down 0.9%; down 16.5%

the week prior

Purchase Money Loans

Up 1.8%; up 1.1%

the week prior

Refinancing Loans

Down 1.4%; down 21.6%

the week prior

Jobless Claims 12/4

421,000 – prior week 436,000 (rev) – total insured

4.086 million, down 191,000

Producer Price Index (PPI) Nov

 Up 0.8% month-to-month – with food/energy prices
removed, up 0.3% (1.2% annualized)

Retail Sales Nov

Up 0.8% month-to-month – without auto sales, up

1.2%

Weekly National Economic Commentary

Thanks largely to the likelihood of passing a “tax

deal,” interest rates have been climbing at a rapid
clip and analysts have brought worries about rising
future inflation back into the economic discussion. It
may at first seem just another swing—from
concerns about possible deflation to anxieties about
rising inflation, and back again—but this time the
worries may have some staying power.

The two central issues here are extensions of tax

benefits—first to the unemployed, second to higher-
income taxpayers. What is remarkable about these
two central issues is that, taken together, they
amplify a few worrisome possibilities for the
economy’s future. Specifically, extending
unemployment benefits expands the economy’s
growth—a good thing but probably an inflationary
thing. Further, foregoing receipt of higher taxes from
wealthier citizens most likely means that we will
have to auction ever more Treasury securities, also
potentially inflationary.

Now, a strengthening economy—and both of these

measures should help the economy grow (in the
short term, at the least) nearly always translates into
higher inflation and, in anticipation of that, our
interest rates will start to climb…as indeed they
already have. Further, the likelihood of even more
massive auctions of Treasury securities increases
the near certainty that interest rates will rise (as
demand for Treasury securities fails to fully cover
the number of securities being auctioned; it’s a
supply-and-demand equation).

The credit markets don’t wait until after something

has happened; they react in advance of whatever
their investors believe will happen. Investors have
begun to worry about inflation already and they
anticipate that the seeds of higher interest rates are
being sown. So Treasury securities interest rates are
already on the rise, and they may continue to rise for
as long as the tax deal is in place—or until
something else captures the attention of traders,
investors and economists.

It is difficult to predict what, if anything, will grab the

markets’ attention, so it seems relatively likely that
the rising interest rate trend will be with us for quite
some time. However, the bond guru Bill Gross of
PIMCO Securities placed a $5.5 million bet on
municipal bonds a few days ago. He apparently feels
bond prices have fallen quite far and are likely to
recover. (Bond yields decline as bond prices rise.)

The takeaway here is that while rates are clearly on

the rise and could continue to rise, the economy is
still reacting to external forces—to government
programs and legislation—and not to forces
inherent to the current economy itself.
Add Comment
New Ski In - Ski Out Listings at Northstar, Lake Tahoe
Wednesday, December 15, 2010
by Tim Lampe, Lakeshore Realty

Home Run Townhomes

Located on arguably the finest on-mountain site at
Northstar® Resort, Home Run offers unprecedented
ski-in/ski-out access to this world famous resort.

Home Run is an intimate neighborhood of 16 luxury

residences situated comfortably between two ski
runs and nearby the new Ritz-Carlton, Lake Tahoe.
Owners of Home Run will enjoy membership to The
Highlands Spa at The Ritz-Carlton and Tahoe
Mountain Club, providing a remarkable collection of
amenities spanning the region and all seasons.

Built to a reasonable size reflecting the current

market and to a LEED Certification Standard in
recognition of our commitment to the environment,
Home Run promises to be a most efficient value.

And with the acquisition of Northstar-at-Tahoe™ by

Vail Resorts comes the promise of an elite-caliber
operator capable of taking the resort to the highest
level of ski areas worldwide!

Call Tim Lampe Today to view this one of a kind Lake

Tahoe Ski In Ski Out residences. Tim Lampe, your
Realtor by Choice for 29 years.
Home Run Townhomes

Listing care of Tahoe Mountain Resorts

Add Comment
New Luxury Incline Village Home Listing. 916
Lakeshore Blvd. 12/15/2010
Tuesday, December 14, 2010
by Tim Lampe, Lakeshore Realty

916 Lakeshore Blvd.

Incline Village Nevada.

This 6 bedroom luxury Home listing is situated right

in the heart of the "Miracle Mile" of Lakeshore Blvd.
With my listing at 920 Lakeshore Blvd closing at
2.950M earlier this fall, seems the price here is in
line. Very open floor plan, great for the Lake Tahoe
lifestyle, park like landscaping, close to Incline
Beach. Call for a tour today of this very nice Property.

* .459 Acre Lot

* Great Peek Lakeviews
* Elevator
* 3 Fireplaces
 * Taxes $17,281
* 5,031 sq ft

$3,375,000M

Call Tim Lampe Today for more information and

photos of this new Incline Luxury Listing

Listing courtesy of Coldwell Banker Realty

Add Comment
Incline Village Real Estate. Mortgage Interest Rate
Comment 12/15/2010
Tuesday, December 14, 2010
by Tim Lampe, Lakeshore Realty
Mortgage Interest Rate MARKET COMMENT

Mortgage bond prices got crushed last week

pushing mortgage interest rates significantly
higher. News that tax cuts would be extended sent
stocks higher Tuesday at the expense of bonds.
Market participants remained concerned about the
cost of the tax cuts. We saw a slight reprieve
Thursday afternoon following a strong 30-year
Treasury bond auction. However, this was short-lived
and Friday brought more losses for bonds, as
consumer sentiment data was stronger than
expected. Unfortunately interest rates were worse
by about a full discount point for the week.

Look for the inflation data and the Fed meeting to

take center stage this week. Producer inflation
estimates are higher than the prior month. Inflation,
real or perceived, generally erodes the value of fixed
income investments causing prices to fall and rates
to rise.
LOOKING AHEAD
Economic
Indicator Release
Date and Time Consensus
Estimate Analysis
Producer Price Index Tuesday,
Dec. 14,
8:30 am, et Up 0.5%,
Core up 0.3% Important. An indication of
inflationary pressures at the producer level. Weaker
figures may lead to lower rates.
Retail Sales Tuesday,
Dec. 14,
8:30 am, et Up 0.8% Important. A measure of
consumer demand. A smaller than expected
increase may lead to lower mortgage rates.
Business Inventories Tuesday,
Dec. 14,
10:00 am, et Up 0.6% Low importance. An indication
of stored-up capacity. A significantly larger increase
may lead to lower rates.
Fed Meeting Adjourns Tuesday,
Dec. 14,
2:15 pm, et No rate changes Important. Few expect
the Fed to raise rates, but some volatility may
surround the adjournment of this meeting.
Consumer Price Index Wednesday,
Dec. 15,
8:30 am, et Up 0.2%,
Core up 0.1% Important. A measure of inflation at the
consumer level. Lower than expected increases may
lead to lower rates.
Industrial Production Wednesday,
Dec. 15,
9:15 am, et Up 0.3% Important. A measure of
manufacturing sector strength. A lower than
expected increase may lead to lower rates.
Capacity Utilization Wednesday,
Dec. 15,
9:15 am, et 75% Important. A figure above 85% is
viewed as inflationary. Weakness may lead to lower
rates.
Housing Starts Thursday,
Dec. 16,
8:30 am, et 540k Important. A measure of
housing sector strength. Weakness may lead to
lower rates.
Philadelphia Fed Survey Thursday,
Dec. 16,
10:00 am, et 14 Moderately important. A survey of
business conditions in the Northeast. Weakness may
lead to lower rates.
Leading Economic Indicators Friday,
Dec. 17,
10:00 am, et Up 1.2% Important. An indication of
future economic activity. A smaller increase may
lead to lower rates.
VOLATILITY LIKELY

The likeliness of mortgage interest rate volatility

this week is very high considering the abundance of
important economic releases.

Each piece of data has the ability to cause volatility

in the financial markets. Floating ahead of the data
exposes a person to a tremendous amount of risk. It
is possible for interest rates to improve if the data
shows weakness in the economy with few price
pressures. However, any surprises will likely be bad
for mortgage interest rates.

We are really in uncharted territory here with the

huge market swings as of late. The important thing is
to remain cautious during these times of
uncertainty.

Merry Christmas and Happy New Year from Tim

Lampe, your Realtor by Choice for 29 years.
Add Comment
Incline Village Real Estate Economic Update
12/15/2010
Tuesday, December 14, 2010
by Tim Lampe, Lakeshore Realty

Momentum is clearly building for what appears to be

an outstanding season from the perspective of snow
as well as Incline Village Luxury real estate listings.
While the storms of the past week brought more rain
than snow, another significant series of storms are
predicted – just in time to provide a fresh blanket of
snow for peak season. Meanwhile, the “bonus”
season continues for both the ski resort and real
estate with strong crowds this weekend bringing
numerous inquiries on Lake Tahoe, Northstar and
Incline Village properties of all types.

The tone of these inquiries has a different feel than

in years past where plans were less immediate and
more conceptual with an eye on further declines in
the market. Early season visitors this year have
expressed more concrete plans (at least
rhetorically) and are asking questions more focused
on the functionality of ownership and less on
measuring distress in the marketplace.

The activity is by no means restricted to the winter

resort communities. Snow has not dampened the
appetite of buyers for the more discounted
properties at both the lower priced homes in Incline
as well as Luxury Incline Village Listings in the over
2M price range.

National Real Estate Comment and Economic

Summary

By the way, it is absurdly difficult to figure out the

underlying trend for the economy and interest rates
today. The moment you think you've got it, something
comes along--like the November employment
report--to explode your fledgling theory.

I think, nonetheless, that we'll see higher real estate

sales figures in the coming months, along with
stronger purchase money mortgage applications.
But I also think the game of 'Chutes and Ladders' that
we're experiencing among economic indicators will
continue for quite a few months, with occasional
bewildering disappointments. Notice that it is a self-
perpetuating process, because the things that need
to happen--better hirings, more retail purchases--
depend on improved consumer (and employer)
confidence. And confidence takes a dive whenever
we get a gloomy indicator.

It's also true, of course, that the economy has a habit

of getting confusing around the holidays.... I suspect
it's time to take an aspirin, drink plenty of water, and
get lots of rest. Then look at the next bits of data in
the morning. Notice wonders like the big rise for the
Pending Home Sales Index. Allow yourself a bit of
optimism. Hang in there.

December 14, 2010

KEY INDICATORS [12/14/10]

Gold $1416.00/ounce [up!]

Crude Oil(Brent) $91.01/brl [up]

U.S. Dollar to…

Euro .7455 [down]

Japanese Yen 83.09 [down]

6-mo Treasury Bill Yield 0.17%

10-yr Treasury Note Yield 3.08%

[6-month down 2 bps, 10-yr up 28 bps]

11th Dist Cost of Funds 1.654%[-]

30-yr Fixed-rate Mortgage 4.86%

15-yr Fixed-rate Mortgage 4.26%

1-yr ARM 3.73%

[HSH averages rates: 30-yr

up 8 bps;15-yr up 7 bps; 1-yr ARM up 3 bps]

Mortgage Bankers Association Mortgage

Applications Index

week ending 12/15

Overall

Down 16.5%; up 2.1%

the week prior

Purchase Money Loans

Up 1.1%; up 14.4%

the week prior

Refinancing Loans

Down 21.6%; down 1%

the week prior)

Jobless Claims 11/27

436,000 – prior week 410,000 (rev) – 4-week

average 431,00: best of recovery so far

Pending Home Sales Index Oct

Up 10.4% - up 18% from post-stimulus low in June

Employment Report Nov

39,000 new jobs – unemployment rate up to 9.8%

Weekly Commentary
“Traders are scratching their heads over whether
the jobs report is an aberration from other economic
news or whether the other economic news was a
temporary head fake. On the [release of the jobs]
news, equity futures declined notably.” [Bloomberg]

No one really knows whether the rather dismal

employment report from last Friday represents that
state of the economy more accurately than do the
bits and pieces of good news we’ve been
experiencing for a couple of weeks. So it could be
that the economic indicators showing up over the
coming weeks will be better than this jobs report
would lead us to think. Or maybe worse. And what
else is new here? This is the reason why our markets
are as volatile as they are: No one knows which way
they’re headed.

Nonetheless, there is reason for at least a small

amount of optimism. Last Friday’s employment report
may have been highly disappointing, but when you
graph the number of new unemployment insurance
claims over the past few months—especially when
you look at the 4-week moving averages—things
look much better. Indeed, as you may notice to the
left, the 4-week average of new jobless claims
reached a new low for the entire recovery period in
the week ending November 27.

This is so out of synch with the latest employment

report that we simply have to wait for some kind of
verification of improvements to hiring in our
economy. Again, it is difficult not to believe that the
improvements will continue to suggest themselves.

Of course, it is important to remember that the

improvements we see—whether in job formations or
in real estate sales—don’t necessarily take us to
historically strong figures. The Pending Home Sales
Index compiled from newly-signed real estate
purchase contracts in October (by the National
Association of RealtorsÒ) made the biggest jump in
the index’s history. But even a 10.4% improvement
doesn’t take home sales to a very strong level,
relatively speaking.

Still, in order to find our way out of the woods, we

have to do a lot of walking—and in this case, we
seem to be headed very much in the right direction.

Confusion may dwindle in the second half of next

year as the number of jobs grows and, with it,
consumer confidence. Hang in there! And, in the
meantime, take advantage of today’s slightly higher,
but still low, interest rates.
Add Comment
140 Tramway, Incline Village Home Listing. Price
Reduction 12/7/2010
Tuesday, December 07, 2010
by Tim Lampe, Lakeshore Realty

140 Tramway Incline Village, Nevada.

Home Listing Price Reduction

$539,900

This home was on the market for $779,000 back in

2008. It is very clean, a single level with 4 bedrooms,
2 baths, one car garage. Original condition.

Built in 1964

.409 Acres sunny level lot

Landscaped with fenced back yard

Close to Lakeshore Blvd and bus routes

Call Tim Lampe today for more information and to

view this property in Incline Village Lake Tahoe
Nevada.
Add Comment
Incline Village Real Estate Mortgage Market
Summary 12/8/2010
Tuesday, December 07, 2010
by Tim Lampe, Lakeshore Realty
MARKET COMMENT, Incline Village Real Estate Update.
National summary, posted by Tim Lampe, Incline
Village Realtor
Mortgage bond prices fell pushing mortgage
interest rates higher last week. We started the week
with some flight to quality buying as details of
Ireland’s $113b bailout emerged. That was short-
lived as stronger than expected consumer
confidence, ADP employment, and construction
spending data crushed the bond market mid-week
causing interest rates to skyrocket. Fortunately the
employment report Friday morning was bond
friendly showing a higher than expected 9.8%
unemployment rate and a weaker than expected
payrolls increase. This helped the market recover
about half of the weakness seen earlier in the week.
Unfortunately for the week interest rates were worse
by about 1/2 of a discount point.

Look for the Treasury auctions to be a main focus

this week. If foreign demand remains decent rates
should stay in check.
LOOKING AHEAD
Economic
Indicator Release
Date and Time Consensus
Estimate Analysis
3-year Treasury Note Auction Tuesday,
Dec. 7,
1:15 pm, et None Important. $32 billion of notes
will be auctioned. Strong demand may lead to lower
mortgage rates.
Consumer Credit Tuesday,
Dec. 7,
3:00 pm, et Down $3b Low importance. A
significant increase may lead to lower mortgage
interest rates.
10-year Treasury Note Auction Wednesday,
Dec. 8,
1:15 pm, et None Important. $21 billion of notes
will be auctioned. Strong demand may lead to lower
mortgage rates.
30-year Treasury Bond Auction Thursday,
Dec. 9,
1:15 pm, et None Important. $13 billion of bonds
will be auctioned. Strong demand may lead to lower
mortgage rates.
Trade Data Friday,
Dec. 10,
8:30 am, et $44b deficit Important. Affects the
value of the dollar. A falling deficit may strengthen
the dollar and lead to lower rates.
U of Michigan Consumer Sentiment Friday,
Dec. 10,
10:00 am, et 72 Important. An indication of
consumers' willingness to spend. Weakness may
lead to lower mortgage rates.
CONSUMER SENTIMENT

In the US the consumer is often seen as the driving

force of the economy. A large percentage of the total
economic output is for personal use. Analysts
attempt to predict the future spending patterns of
consumers to gauge economic activity.

The Michigan consumer sentiment index is one

piece of data used to measure consumer attitudes.
The index is derived from a telephone survey, which
gathers information on consumer expectations of
the overall economy. The preliminary report is
released around the 10th of each month and then is
revised throughout the remainder of the month. It is
significant in that it provides a precursor into
consumers' willingness to spend in the months
ahead. However, many analysts point out that
willingness to spend does not always convert to
actual expenditures.

Despite economic uncertainty, liquidity issues,

housing market weakness, and high energy costs,
American consumers continue to spend. However,
many analysts question whether consumers can
continue to buoy the economy. The most recent
sentiment data came in the highest level in 5
months. This week's release will be eagerly
anticipated. Look for any variation from estimates to
cause mortgage interest rate volatility. Signs of
eroding consumer confidence could lead to
improvements in mortgage interest rates. However,
stronger than expected figures could spike rates
higher.

Remember that mortgage interest rates remain

historically favorable and are subject to change on a
daily basis. Last week was a prime example of the
volatility often associated with economic data
releases.
Add CommentView Comments (1)
Live Incline Village Web Cam on Lampe Real
Estate.Com
Tuesday, December 07, 2010
by Tim Lampe, Lakeshore Realty

Don't forget you can see real time Incline Village

Weather on my website. Ever have anyone say this:
Question:

How's the weather?

Answer:

Look out the window

http://www.lamperealestate.com/Incline-Village-
Ski-Beach-Webcam
Add Comment
1055 Sawmill Rd Incline Village Nv. Listing Price
Reduction12/8/2010
Tuesday, December 07, 2010
by Tim Lampe, Lakeshore Realty

1055 Sawmill Rd. Incline Village Luxury Home

Lisiting

$1.898M New Price

This contemporary was built in 2000. Boasts over

4,100 sq ft, 4 bedrooms, 4 baths and a 4 car garage.
Came on the market at over 2.385M. Well located,
close to beaches and Hyatt, all the right features
including a home theater, wine room and grand
living room.

Master bedroom on main living level

Sunny level .344 lot

2 fireplaces

Huge 4 car garage

www.us.open2view.com/tour/unbranded/photo/399
8

Call or email me for more information. Tim Lampe,

your Realtor by choice for 29 years.
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Tim's Incline Village Luxury Real Estate Blog

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Contact Information
Tim Lampe
Lakeshore Realty
954 Lakeshore Dr.
Incline Village NV 89451
Direct: 775.745.9730
Fax: 775.831.6777
Send An Email
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For more information on Incline Village Real Estate

Listings at Lake Tahoe call Tim now at 775 745 9730.

Your Realtor by Choice for 28 Years.

Tim Lampe
Lakeshore Realty
954 Lakeshore Dr.
Incline Village NV 89451

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