Flip This House
Tuesday, March 13, 2012
"What up" for the near future!
The near term outlook for US interest rates is flat; the bond and mortgage markets have for months been in a narrow range. There is little likelihood that rates will change much until there are new fundamentals and we don’t see where that would come from. That said, given the unsettled mid-east and in Europe as it heads into another recession shocks and surprises are not out of the equation.
Thursday, March 1, 2012
Home Loan Underwater?
Changes to Underwater Refinance Plan Going Into Effect
See If You Can Benefit
On October 24, 2011, President Obama announced plans to open up refinancing to more homeowners who are underwater. This proposal was a revision to the previous Home Affordable Refinance Program (HARP) and is now known as HARP 2.0.
Some of the major changes under HARP 2.0 include:
No underwater limits: Previously, borrowers whose loan-to-value limits were greater than 125 percent were ineligible to refinance. Now, borrowers can refinance no matter how far their homes have fallen in value.
Appraisals may be eliminated and underwriting relaxed for most borrowers: Being able to use this program may save time and money, and remove some of the anxiety from the refinancing process.
Deadline extended: Borrowers now have until December 31, 2013 to get refinanced under HARP 2.0.
These changes will be put into effect by Fannie Mae and Freddie Mac the week of March 19, 2012.
It's also important to note that the HARP 2.0 Program is for loans that were secured by Fannie Mae and Freddie Mac prior to June 1, 2009. Currently, loans obtained after this date are not eligible for this program. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
www.freddiemac.com/mymortgage
www.fanniemae.com/loanlookup/
See If You Can Benefit
On October 24, 2011, President Obama announced plans to open up refinancing to more homeowners who are underwater. This proposal was a revision to the previous Home Affordable Refinance Program (HARP) and is now known as HARP 2.0.
Some of the major changes under HARP 2.0 include:
No underwater limits: Previously, borrowers whose loan-to-value limits were greater than 125 percent were ineligible to refinance. Now, borrowers can refinance no matter how far their homes have fallen in value.
Appraisals may be eliminated and underwriting relaxed for most borrowers: Being able to use this program may save time and money, and remove some of the anxiety from the refinancing process.
Deadline extended: Borrowers now have until December 31, 2013 to get refinanced under HARP 2.0.
These changes will be put into effect by Fannie Mae and Freddie Mac the week of March 19, 2012.
It's also important to note that the HARP 2.0 Program is for loans that were secured by Fannie Mae and Freddie Mac prior to June 1, 2009. Currently, loans obtained after this date are not eligible for this program. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
www.freddiemac.com/mymortgage
www.fanniemae.com/loanlookup/
Monday, January 30, 2012
Market Update for Jan 30, 2012
Monday, January 30, 2012
The rally in the bond and mortgage markets is continuing this morning, Europe stock markets weaker and US equity markets set to open lower at 9:30. Dec personal income and spending at 8:30 was in line with estimates; income up 0.5% against estimates of +0.4%. Dec spending unchanged against estimates of +0.1%; more evidence that holiday shopping didn’t meet those early lofty estimates. Spending stalled in December as Americans used a jump in incomes to restore depleted savings, indicating the biggest part of the economy will not be a driver of the expansion.
Last week Greek officials were “confident” that they could make a deal with creditors to fend off another debt default cliff. Nothing happened, not necessarily a surprise as we have been subjected to the continual uncertainty and lack of progress for two+ years now. Greece signaled opposition to economic oversight in exchange for aid, taking Italian interest rates higher this morning and driving equity markets lower. European Union leaders gather in Brussels today for their first summit of 2012 to put the finishing touches on a German-led deficit-control treaty and endorse a 500 billion-euro ($661 billion) rescue fund to be set up this year. Greece and its private creditors said Saturday they expect to complete a deal in coming days after bondholders signaled they would accept a bigger cut in their debt holdings----it never ends.
The DJIA opened -100; 10 yr note +17/32 1.83% -7 bp and MBS 30 yr prices +6/32 (.18 bp).
This week’s elephant is the Jan employment report on Friday; current estimates are an increase of 160K non-farm jobs and private non-farm jobs +170K, the unemployment rate at 8.5%. The actual unemployment rate is closer to 16% however, that the “official” rate is at 8.5% is evidence that many have simply dropped out of looking for jobs. Until the Fed revised estimates for growth downward for 2012 and 2013 last week and Q4 GDP advance report was weaker than forecasts (+2.8% against +3.1% expected) there was an increasing belief the economy was gaining a little momentum. Now economic bulls are re-thinking that idea.
The bellwether 10 yr note is working on a key resistance level at 1.80% this morning. In early trade it dropped to 1.82% and at 10:00 sitting at 1.83%. The MBSs are pushing into new highs in prices not seen in over a year. The Fed’s decision to leave the FF rate at 0.0% for the next three years and with no inflation now or on the horizon, the long end of the curve is seeing buying as investors seek yield. The safety trade over Europe’s debt crisis has ebbed recently but still plays a role in the decline in rates.
The rally in the bond and mortgage markets is continuing this morning, Europe stock markets weaker and US equity markets set to open lower at 9:30. Dec personal income and spending at 8:30 was in line with estimates; income up 0.5% against estimates of +0.4%. Dec spending unchanged against estimates of +0.1%; more evidence that holiday shopping didn’t meet those early lofty estimates. Spending stalled in December as Americans used a jump in incomes to restore depleted savings, indicating the biggest part of the economy will not be a driver of the expansion.
Last week Greek officials were “confident” that they could make a deal with creditors to fend off another debt default cliff. Nothing happened, not necessarily a surprise as we have been subjected to the continual uncertainty and lack of progress for two+ years now. Greece signaled opposition to economic oversight in exchange for aid, taking Italian interest rates higher this morning and driving equity markets lower. European Union leaders gather in Brussels today for their first summit of 2012 to put the finishing touches on a German-led deficit-control treaty and endorse a 500 billion-euro ($661 billion) rescue fund to be set up this year. Greece and its private creditors said Saturday they expect to complete a deal in coming days after bondholders signaled they would accept a bigger cut in their debt holdings----it never ends.
The DJIA opened -100; 10 yr note +17/32 1.83% -7 bp and MBS 30 yr prices +6/32 (.18 bp).
This week’s elephant is the Jan employment report on Friday; current estimates are an increase of 160K non-farm jobs and private non-farm jobs +170K, the unemployment rate at 8.5%. The actual unemployment rate is closer to 16% however, that the “official” rate is at 8.5% is evidence that many have simply dropped out of looking for jobs. Until the Fed revised estimates for growth downward for 2012 and 2013 last week and Q4 GDP advance report was weaker than forecasts (+2.8% against +3.1% expected) there was an increasing belief the economy was gaining a little momentum. Now economic bulls are re-thinking that idea.
The bellwether 10 yr note is working on a key resistance level at 1.80% this morning. In early trade it dropped to 1.82% and at 10:00 sitting at 1.83%. The MBSs are pushing into new highs in prices not seen in over a year. The Fed’s decision to leave the FF rate at 0.0% for the next three years and with no inflation now or on the horizon, the long end of the curve is seeing buying as investors seek yield. The safety trade over Europe’s debt crisis has ebbed recently but still plays a role in the decline in rates.
Monday, October 10, 2011
MarketWatch.com. 6 lowball-offer errors home buyers make.
Here are six mistakes people commonly make when making a “lowball” offer.
1. Not understanding the market
Before submitting an offer, your real-estate agent should do a full comparative market analysis of the property to determine what its fair market value is, Carlisle said.
For instance, it’s still a buyer’s market in the Richmond, Va., area, where Susan Stynes works as a real-estate agent for Long & Foster. Stynes said she wouldn’t hesitate to encourage a client to make an aggressive offer, after considering the time the property has been on the market and neighborhood comparables.
But in other markets a low offer won’t get you far, said Stephen G. Kliegerman, president of Halstead Property Development Marketing in New York.
“In general, sellers today in Manhattan see that inventories are down, interest rates are historically low, and there is a pretty large appetite for purchase right now because of those factors,” he said. “Sellers will hold closer to their asking prices.”
2. Not picking the right real-estate agent
Some real-estate agents caution buyers against making an offer that is so low it could offend the seller and halt the negotiation process.
But sometimes agents are too reluctant to make aggressive offers, Carlisle said. They may be more focused on completing a deal and collecting their commission, rather than making the best deal. Or their negotiation skills might not be up to par.
“If it’s an appealing, well-priced property that has five or six offers on it, well, going in 10% or 20% under asking isn’t going to get you anywhere,” he said. But on a property that has been overlooked by the market and doesn’t have multiple bidders, it often doesn’t hurt to go in low.
3. Not backing up your price
There’s an art to presenting an offer that’s substantially under the asking price. A low offer could start negotiations off on the wrong foot if you’re not careful, Golden said. The key is for you or your agent to explain the offer when presented.
“Sellers want to know why you’re coming in so low. Include recent [comparable sales in the area] or issues with the property that validate why your offer is so low,” he said. Don’t be too harsh with your criticism, however — that can also work against you, he adds.
4. Not knowing what you’re willing to pay
Buyers these days have a strong motivation to get the best possible price on a property, especially if they believe that home values will fall even more, said Jay Butler, professor emeritus of real estate at the W. P. Carey School of Business at Arizona State University. Their biggest worry is often that people will say they overpaid, he said.
But sellers have limits, too, most often dictated by the amount of home equity they have, Butler said.
Before negotiations begin, it’s important for a buyer to decide what his walk-away price is, Carlisle said. “At some price point, the deal is no longer worth doing, no matter how great the property.”
While a buyer should know how high she is willing to go, don’t put limits in the first offer, Kliegerman said. You lose integrity if you say it’s your “best and final” offer, but then are willing to come up with a few thousand dollars more in order to buy the property.
5. Not making a clean and easy offer
When you make a low bid, you want other elements of the offer to be attractive to the seller. And a deal that can close quickly often will have appeal.
Make sure there are as few contingencies as possible, Golden said. It’s best if buyers don’t have a home to sell in order to buy the one they’re bidding on, Stynes said.
Also, have your financials in order from the start. Loan qualification is more difficult these days, so it’s important to have a lender pre-approval letter, Carlisle said.
6. Assuming cash will always get you the best deal
Cash is king, but in the end, a seller often wants the most money for his home — regardless of if the buyer needs a mortgage or not. So don’t think making an all-cash bid will automatically mean an accepted offer.
That said, if the seller is a bank because the property is a foreclosure, the institution may accept a lower offer from a cash buyer, as opposed to someone who needs a mortgage, Golden said. Banks often don’t want to deal with mortgage-related delays.
1. Not understanding the market
Before submitting an offer, your real-estate agent should do a full comparative market analysis of the property to determine what its fair market value is, Carlisle said.
For instance, it’s still a buyer’s market in the Richmond, Va., area, where Susan Stynes works as a real-estate agent for Long & Foster. Stynes said she wouldn’t hesitate to encourage a client to make an aggressive offer, after considering the time the property has been on the market and neighborhood comparables.
But in other markets a low offer won’t get you far, said Stephen G. Kliegerman, president of Halstead Property Development Marketing in New York.
“In general, sellers today in Manhattan see that inventories are down, interest rates are historically low, and there is a pretty large appetite for purchase right now because of those factors,” he said. “Sellers will hold closer to their asking prices.”
2. Not picking the right real-estate agent
Some real-estate agents caution buyers against making an offer that is so low it could offend the seller and halt the negotiation process.
But sometimes agents are too reluctant to make aggressive offers, Carlisle said. They may be more focused on completing a deal and collecting their commission, rather than making the best deal. Or their negotiation skills might not be up to par.
“If it’s an appealing, well-priced property that has five or six offers on it, well, going in 10% or 20% under asking isn’t going to get you anywhere,” he said. But on a property that has been overlooked by the market and doesn’t have multiple bidders, it often doesn’t hurt to go in low.
3. Not backing up your price
There’s an art to presenting an offer that’s substantially under the asking price. A low offer could start negotiations off on the wrong foot if you’re not careful, Golden said. The key is for you or your agent to explain the offer when presented.
“Sellers want to know why you’re coming in so low. Include recent [comparable sales in the area] or issues with the property that validate why your offer is so low,” he said. Don’t be too harsh with your criticism, however — that can also work against you, he adds.
4. Not knowing what you’re willing to pay
Buyers these days have a strong motivation to get the best possible price on a property, especially if they believe that home values will fall even more, said Jay Butler, professor emeritus of real estate at the W. P. Carey School of Business at Arizona State University. Their biggest worry is often that people will say they overpaid, he said.
But sellers have limits, too, most often dictated by the amount of home equity they have, Butler said.
Before negotiations begin, it’s important for a buyer to decide what his walk-away price is, Carlisle said. “At some price point, the deal is no longer worth doing, no matter how great the property.”
While a buyer should know how high she is willing to go, don’t put limits in the first offer, Kliegerman said. You lose integrity if you say it’s your “best and final” offer, but then are willing to come up with a few thousand dollars more in order to buy the property.
5. Not making a clean and easy offer
When you make a low bid, you want other elements of the offer to be attractive to the seller. And a deal that can close quickly often will have appeal.
Make sure there are as few contingencies as possible, Golden said. It’s best if buyers don’t have a home to sell in order to buy the one they’re bidding on, Stynes said.
Also, have your financials in order from the start. Loan qualification is more difficult these days, so it’s important to have a lender pre-approval letter, Carlisle said.
6. Assuming cash will always get you the best deal
Cash is king, but in the end, a seller often wants the most money for his home — regardless of if the buyer needs a mortgage or not. So don’t think making an all-cash bid will automatically mean an accepted offer.
That said, if the seller is a bank because the property is a foreclosure, the institution may accept a lower offer from a cash buyer, as opposed to someone who needs a mortgage, Golden said. Banks often don’t want to deal with mortgage-related delays.
Monday, July 18, 2011
The DC Report
Monday, July 18, 2011
Treasuries started better this morning on continuing debt problems in Europe; today its Italy and Greece but also Portugal, Spain and Ireland also rattling global markets. Sovereign debt in those countries is serious and unlikely to be resolved anytime soon. Increasing concerns that in the end there will be actual defaults in Europe; here in the US the debt mess and budget impasse continues. The US isn't near the problems in Europe but the country is headed that way unless Americans get serious about deficit reductions, a very hard pill to swallow in these soft economic times. In the meantime Congress and the Administration will continue to kick the can down the road until citizens demand them to cut spending-----a decision many will have trouble with. By 9:00 the 10 yr note had lost all its early gains and mortgage prices went negative (-3/32, 0.09 bp) frm Friday' close.
President Barack Obama is pressing congressional leaders for a multitrillion-dollar agreement in deficit-cutting talks as negotiators near an Aug. 2 deadline for raising the debt limit. A default would cause more panic than the collapse of Lehman Brothers Holdings Inc. in 2008, former Treasury Secretary Larry Summers told CNN in an interview broadcast yesterday. Treasuries rose and the euro fell amid concern European leaders will fail to stop the region’s spreading debt woes at a summit this week.
Mortgage rates being pulled lower as treasuries get safety driven buying; the stock market opening lower this morning also helping. Crude oil lower today as stocks decline; Brent crude declined for a third day in London as investors bet that Europe’s worsening debt crisis may slow the economy and crimp fuel demand. Gold back over $1600.00 also driven by safety moves with investors becoming less comfortable with any currencies.
At 9:30 the DJIA opened down 65, the 10 yr note +2/32 and mortgage prices +1/32 (.03 bp).
This Week's Economic Calendar:
Today;
10:00 July NAHB housing index (as reported 15 frm 13; still very negative)
Tuesday;
8:30 am June housing starts and permits (starts +1.75%, permits unchanged)
Wednesday;
10:00 am June existing home sales (+2.5% at 4.93 mil units annualized)
Thursday;
8:30 am weekly jobless claims (+6K at 411K)
10:00 am July Philly Fed business index (0.0 frm -7/1 in June)
June leading economic indicators (+0.3%)
FHFA May housing price index (N/A)
Economists in a Bloomberg News survey projected long-term U.S. financial assets would show net buying of $40B in May; as reported net purchases were $23.6B. The Treasury’s reporting on long-term securities is a gauge of confidence in U.S. economic policy, and today’s report suggests the U.S. continues to offer safety from the economic crisis in Europe even with the White House and Congress at odds over raising the Treasury’s borrowing authority; although the increase was much less than was thought suggesting all is not that rosy.
US interest rates still have a bullish bias based on Europe's problems and the on-going debates in Washington over the debt ceiling and budget cuts; however, we remain somewhat defensive with interest rates as low as we have them now. We don't want to fight the tape but at the same time we have to be cautious and not get too optimistic. Go with it, but be prepared to take advantage of the low rates when markets turn. It is highly unlikely the US will lose its AAA credit rating by rating agencies, and the US will not default on our debt; nevertheless markets are dancing on a hot skillet as the deadline approaches. It is a day-to-day trade these days; unfolding and very fluid events can have a swift and big move in markets; interest rates are at all time lows now, it will take a lot of surprising bad news to drive rates lower.
Saturday, July 9, 2011
Dismal Numbers!
Friday, July 08, 2011
Stunned!! The only way to describe what we saw at 8:30 when the BLS employment report was released, mouths dropped, words were hard to come by with one of the weakest monthly employment reports in over a year. Non-farm jobs, expected up 100K were up just 18K; private sector jobs expected up 125K, up just 57K. It wasn't just June data; May non-farm jobs were revised frm +54K to +29K and April jobs lower by 4K frm what what was originally released. The jobs were the weakest since Sept 2010. The unemployment rate, expected unchanged at 9.1%, increased to 9.2%, the highest since Dec 2010. Average hourly earnings -0.1%, normally up 0.2% a month. No matter how the report is spun when Pres Obama speaks at 10:35; this is a very serious blow to the view that the economy is improving and has turned markets upside down.
Prior to the release of employment the 10 yr note yield was up to 3.18% +4 bp frm yesterday's close; mortgage prices -7/32 (.22 bp) frm yesterday's close. At 9:00 the 10 yr note rate was down to 3.03% -11 bp frm yesterday's close and mortgage prices +18/32 (.56 bp). Stock indexes were better prior to 8:30, at 9:00 the DJIA -132, down 155 points from pre employment.
At 9:30 the DJIA opened -100, the 10 yr note 3.05% -9 bp and mortgage prices -16/32 (.50 bp). Crude oil -$1.60, gold up $12.50.
Until the report this morning the rate markets were decidedly bearish and equity markets were looking for the economy to rebound. Our outlook was for rates to edge a little higher with the 10 yr note likely to climb to 3.25% before the selling would abate. With this report that forecast is dashed, at least in the near term. Employment reports are always market movers as is the case today, however the data for June has really rattled markets more so than usual. Markets are going to take more than a day or two to wrestle with the deeper meaning for the economic outlook and whether we are headed into a double dip recession. While that is an extreme view, nevertheless May and June job growth (+47K in 2 months) won't be dismissed and forecasts of growth will likely be revised lower.
The bond and mortgage market outlook, bearish until 8:30, have shaken off all of the optimistic economic estimates. What was is no longer. Without job growth the economy cannot grow, stocks are going to be weak today and early next week. The 10 yr note will test 3.00% today and Monday. While the data today shocked everyone, it will take sometime to sift out the longer term meaning. Look for some to argue that May and June were just big bumps in the road to recovery and stronger growth; the bullish views on the economy won't die easily. Market volatility will likely remain at very high levels.
Although the employment situation as reported has caused many to re-consider their outlook for economic growth, what the Fed might do, what Congress might do, and where interest rates will trade now; the resolution will take time. We still believe the 10 yr note will have difficulty holding under 3.00% as we noted previously. Next week Treasury will auction a total of $66B, the first auctions since the end of QE 2, $21B of the total of 10 yr notes. Two weeks ago Treasury auctions met with weaker demand than had been the case for over a year. How the auctions go will be major test.
Thursday, June 30, 2011
Foreclosure Program
I wanted to let everyone know that Fannie Mae has extended the 3.5% in closing cost assistance until October 31, 2011 for the HomePath properties. They are also paying $1,200 to the buyer’s agent as a bonus.
Remember that any buyer purchasing a HomePath property can put as little as 3% down and there is no appraisal needed and no Monthly Mortgage Insurance which saves the borrower around $265 per month on a sales price of $300,000.
You can view the listed HomePath properties on Fannie Mae’s website at www.homepath.com
Friday, June 24, 2011
Market Forecast June 2011
At 8:30 May durable goods orders were better than thought, up 1.9% and ex transportation up 0.6%. April durables were revised better, overall from -3.6% to -2.7% and ex transportation from -1.6% to -0.4%. Q1 GDP final report improved from +1.8% in the preliminary report last month to +1.9%. It is old news and the fractional increase is relatively meaningless to traders.
Most of the talk this morning is still over the IEA and Obama Administrations decision to take oil from the strategic reserve to supposedly drive down the price of oil thus gasoline. Both oil and Gasoline had already fallen in the past two weeks, gasoline down about 20% from recent highs and crude oil down about $10.00 frm recent highs. Was it just a political move by Obama, or was it necessary? I'll leave the answer to those that are more familiar with the details in the global oil markets. 60 mil barrels accounts from anywhere between 16 hours and 8 hours of oil usage globally, we hear both stats being bantered around. Politically Republicans saying tapping the reserve at this point was unnecessary and set a bad precedent; Democrats saying it is necessary for improving economic recovery. The other view being talked about, showing OPEC they can't get away with not increasing output as it did a week ago.
As far as helping economic recovery with 60 mil more oil over the next 30 days seems a little too optimistic. The world will get 2 mil barrels a day for 30 days, then what? If the global economy were to immediately re-start growth the price of oil and gasoline will climb right back up. The only way to get oil lower and keep it low is for oil producers to open the taps and increase output dramatically and that isn't on the table now, and likely will never be there.
Yesterday afternoon reports hit that the EU and IMF had agreed on a bail-out package for Greece; the news hit at 3:00 with the DJIA down 180 points, at the end of the session an hour later the DJIA closed down 59 points. The news was welcome but at the moment there still is no lock on the plan. Greece’s next hurdle is to shepherd 78 billion euros ($111B) of austerity measures through parliament, after yesterday’s endorsement of the program by from the European Commission, the European Central Bank and the International Monetary Fund. “We have agreed that there will be a new program for Greece,” German Chancellor Angela Merkel told reporters at an EU summit in Brussels today. “This is an important decision that says once again we will do everything to stabilize the euro overall.”
In Washington, the land of Oz, the work on the budget and debt increase continues. Work of course is a relative term, in this case the work is about who gets re-elected. That is what we have in Washington, people sent there to work on their re-election campaigns. Stupid is as stupid does according to Forrest Gump, he must have spent time in the city. Republicans walked away from discussions yesterday, a show of adolescent behavior; Democrats equally childish, unwilling to accept cuts in most programs unless they get tax increases. The saga will go on and on until the final hour on August 1st, then it will not be a meaningful measure as our leadership continues to kick the can down the road as they have done for the last three years with no budget. Let the next Congress deal with it, I want to be re-elected and get my pension, health care and all the perks I can get! I couldn't care any less about what has to be done, its al;l about me!
At 9:30 the DJIA opened down 19 points after trading higher in pre-market activity. The 10 yr note moved back to unchanged after being down 8/32 at 9:00. Mortgage prices at 9:00 were down 5/32 (.15 bp), at 9:30 off 3/32 (.09 bp). The 10 yr note holding at and unable to break below 2.90% but may make it as long as the equity markets are under pressure as the economic outlook weakens.
Most of the talk this morning is still over the IEA and Obama Administrations decision to take oil from the strategic reserve to supposedly drive down the price of oil thus gasoline. Both oil and Gasoline had already fallen in the past two weeks, gasoline down about 20% from recent highs and crude oil down about $10.00 frm recent highs. Was it just a political move by Obama, or was it necessary? I'll leave the answer to those that are more familiar with the details in the global oil markets. 60 mil barrels accounts from anywhere between 16 hours and 8 hours of oil usage globally, we hear both stats being bantered around. Politically Republicans saying tapping the reserve at this point was unnecessary and set a bad precedent; Democrats saying it is necessary for improving economic recovery. The other view being talked about, showing OPEC they can't get away with not increasing output as it did a week ago.
As far as helping economic recovery with 60 mil more oil over the next 30 days seems a little too optimistic. The world will get 2 mil barrels a day for 30 days, then what? If the global economy were to immediately re-start growth the price of oil and gasoline will climb right back up. The only way to get oil lower and keep it low is for oil producers to open the taps and increase output dramatically and that isn't on the table now, and likely will never be there.
Yesterday afternoon reports hit that the EU and IMF had agreed on a bail-out package for Greece; the news hit at 3:00 with the DJIA down 180 points, at the end of the session an hour later the DJIA closed down 59 points. The news was welcome but at the moment there still is no lock on the plan. Greece’s next hurdle is to shepherd 78 billion euros ($111B) of austerity measures through parliament, after yesterday’s endorsement of the program by from the European Commission, the European Central Bank and the International Monetary Fund. “We have agreed that there will be a new program for Greece,” German Chancellor Angela Merkel told reporters at an EU summit in Brussels today. “This is an important decision that says once again we will do everything to stabilize the euro overall.”
In Washington, the land of Oz, the work on the budget and debt increase continues. Work of course is a relative term, in this case the work is about who gets re-elected. That is what we have in Washington, people sent there to work on their re-election campaigns. Stupid is as stupid does according to Forrest Gump, he must have spent time in the city. Republicans walked away from discussions yesterday, a show of adolescent behavior; Democrats equally childish, unwilling to accept cuts in most programs unless they get tax increases. The saga will go on and on until the final hour on August 1st, then it will not be a meaningful measure as our leadership continues to kick the can down the road as they have done for the last three years with no budget. Let the next Congress deal with it, I want to be re-elected and get my pension, health care and all the perks I can get! I couldn't care any less about what has to be done, its al;l about me!
At 9:30 the DJIA opened down 19 points after trading higher in pre-market activity. The 10 yr note moved back to unchanged after being down 8/32 at 9:00. Mortgage prices at 9:00 were down 5/32 (.15 bp), at 9:30 off 3/32 (.09 bp). The 10 yr note holding at and unable to break below 2.90% but may make it as long as the equity markets are under pressure as the economic outlook weakens.
Saturday, January 1, 2011
Saturday, October 30, 2010
Suasn's rates for November 2010
Conforming 30 Year Fixed (under $417,000) is at 4.25%, High Balance $417,000 to $729,750) is at 4.375% and Jumbo (over $729,750) is at 5.5%.
Conforming 15 Year Fixed is at 3.5%, High Balance at 3.75% and Jumbo is at 5.125%.
These rates are off from the lows of 3.875% but still very low.
Saturday, October 23, 2010
Thursday, October 21, 2010
Saturday, October 16, 2010
Thursday, October 14, 2010
Hot New Loan Rates for Oct 2010
Rates are still very volatile but ending the day today lower.
Conforming 30 Year Fixed are at 3.875% (under $417,000) High Balance at 4.25% ($417,000 to $729,750) and Jumbo (over $729,750) at 5.5%. Conforming 15 Year are at 3.5%, High Balance at 3.625% and Jumbo at 5%. REALLY REALLY GREAT!
A stock market rally based on strong third quarter Corporate earnings caused rates to increase yesterday and earlier today but the prices recovered and rates went down again. The markets are waiting for the Federal Reserve Board to announce the details of its new program to pump up the economy through the purchase of Treasury bonds, known officially as Quantitative Easing. This expectation in the markets is keeping our rates low.
Let me know if I can answer any questions or help you get your clients into these great rates!
Conforming 30 Year Fixed are at 3.875% (under $417,000) High Balance at 4.25% ($417,000 to $729,750) and Jumbo (over $729,750) at 5.5%. Conforming 15 Year are at 3.5%, High Balance at 3.625% and Jumbo at 5%. REALLY REALLY GREAT!
A stock market rally based on strong third quarter Corporate earnings caused rates to increase yesterday and earlier today but the prices recovered and rates went down again. The markets are waiting for the Federal Reserve Board to announce the details of its new program to pump up the economy through the purchase of Treasury bonds, known officially as Quantitative Easing. This expectation in the markets is keeping our rates low.
Let me know if I can answer any questions or help you get your clients into these great rates!
Sunday, October 10, 2010
Wednesday, September 29, 2010
October 2010 Rates
Rates are still volatile but trending lower after the Federal Reserve announcement last week that they may resort to further means to ease rates. They have not announce exactly what that would be but the bond markets are reacting favorably in anticipation.
Conforming 30 Year Fixed (under $417,000) are at 4% with High Balance ($417,000 to $729,750) at 4.375% and Jumbo at 5.5%. 15 Year Fixed Conforming is at 3.75%, High Balance is at 3.875% and Jumbo is at 5%.
This is an excellent time for buyers to get into a house as the affordability index is high due to these lower rates!
Sunday, September 26, 2010
Wednesday, September 8, 2010
Monday, September 6, 2010
Thursday, August 26, 2010
Tuesday, June 22, 2010
Monday, May 10, 2010
Thursday, January 7, 2010
Susan's Loan Updates January 2010
To start our market off in 2010, the government issued a report today on claims for unemployment signaling that layoffs are easing and the economy could be on the verge of posting the first monthly gain in jobs in two years. Separately, retailers reported modest sales gains for the Holiday season, prompting some retain chains to raise their fourth quarter profit outlooks. December sales rose 2.8% compared with a year ago.
A recovery in the job market would most certainly lead to a recovery in our housing market. More people in jobs and sure of their job stability = more houses sold.
This information was positive for the economy and caused a slight increase in rates today. Conforming 30 Year Fixed (under $417,000) is at 5%, High Balance ($417,000 to $729,750) is at 5.25% and Jumbo (over $729,750) is at 6.5%. Five Year Fixed is at 4%, 4.25% and 4.75%.
I want to remind you that Terra Mortgage has lenders that can handle special circumstances. Most large direct lenders will not allow the circumstances listed below. We have lenders that will allow:
1) An exception to the 90 day anti-flipping rule (a house must be held by the seller for 90 days)
2) A non-occupant co-borrower for a conventional loan (must be Freddie Mac or FHA as Fannie Mae will not allow it).
3) Financing on 5 to 10 properties (many lenders stop after 4 financed properties)
I want you to be aware of the new RESPA guidelines that went into effect on 01/01/2010. There is a new format for the Good Faith Estimate provided by lenders and the HUD-1 provided by escrow with strict rules to go with it.
To summarize, the new good faith estimate must be sent out within three days of submitting a loan application once a borrower goes into escrow on a purchase or refinance. The borrower has 10 days to accept the loan offer.
There is NO tolerance for increases in any lending fees including points, origination fee, processing fee, underwriting fee or any other lender fees. There are a list of changed circumstances where a revised gfe may be re-issued which includes and act of God, war, disaster or other emergencies, a changed situation or inaccurate information (such as credit report issue, borrower requested change like loan amount) or when a loan is locked. If there is a change for any other reason (for example a mistake) we have to eat it.
All lending fees mentioned above must be totaled on one line and not broken out. The HUD-1 provided by escrow must match.
There is a 10% tolerance allowed for required services that the lender selects such as appraisal, credit fee and flood cert. The charges that can change are all services that the borrower can shop for such as homeowners insurance. Escrow and title are listed in the 10% tolerance category although the lender only chooses them for a refinance so I need clarification for the purchase side.
Please let me know if you would like anymore information regarding the new RESPA laws or copies of the new forms. I am here to provide you whatever you need.
2010 is going to be a great year!!!
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559Fax: 714-242-9666
susanvanwagenen@earthlink.net
This information was positive for the economy and caused a slight increase in rates today. Conforming 30 Year Fixed (under $417,000) is at 5%, High Balance ($417,000 to $729,750) is at 5.25% and Jumbo (over $729,750) is at 6.5%. Five Year Fixed is at 4%, 4.25% and 4.75%.
I want to remind you that Terra Mortgage has lenders that can handle special circumstances. Most large direct lenders will not allow the circumstances listed below. We have lenders that will allow:
1) An exception to the 90 day anti-flipping rule (a house must be held by the seller for 90 days)
2) A non-occupant co-borrower for a conventional loan (must be Freddie Mac or FHA as Fannie Mae will not allow it).
3) Financing on 5 to 10 properties (many lenders stop after 4 financed properties)
I want you to be aware of the new RESPA guidelines that went into effect on 01/01/2010. There is a new format for the Good Faith Estimate provided by lenders and the HUD-1 provided by escrow with strict rules to go with it.
To summarize, the new good faith estimate must be sent out within three days of submitting a loan application once a borrower goes into escrow on a purchase or refinance. The borrower has 10 days to accept the loan offer.
There is NO tolerance for increases in any lending fees including points, origination fee, processing fee, underwriting fee or any other lender fees. There are a list of changed circumstances where a revised gfe may be re-issued which includes and act of God, war, disaster or other emergencies, a changed situation or inaccurate information (such as credit report issue, borrower requested change like loan amount) or when a loan is locked. If there is a change for any other reason (for example a mistake) we have to eat it.
All lending fees mentioned above must be totaled on one line and not broken out. The HUD-1 provided by escrow must match.
There is a 10% tolerance allowed for required services that the lender selects such as appraisal, credit fee and flood cert. The charges that can change are all services that the borrower can shop for such as homeowners insurance. Escrow and title are listed in the 10% tolerance category although the lender only chooses them for a refinance so I need clarification for the purchase side.
Please let me know if you would like anymore information regarding the new RESPA laws or copies of the new forms. I am here to provide you whatever you need.
2010 is going to be a great year!!!
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559Fax: 714-242-9666
susanvanwagenen@earthlink.net
Monday, December 21, 2009
Friday, December 11, 2009
December Mortgage Rates 2009
Rates continue to be very low. Investors interest in longer term US debt is not presently strong which may cause rates to rise in the near future.
For now, Conforming 30 Year Fixed (up to $417,000) is 4.75%, High Balance ($417,000 to $729,750) is 4.875 and Jumbo (over $729,750) is at 6.125%.
Five Year Fixed Conforming is at 3.75%, High Balance is 4% and Jumbo is 4.75%.
Beware that many investor/bank guidelines for FHA loans are requiring a second appraisal on loan amounts above $417,000. This is coming up during underwriting. It is not an FHA guideline but has been noted on the high balance FHA loans lately.
I hope you are enjoying all your Holiday festivities. Please call me if there is anything I can do to help you! If I am not in the office I will be available via cell phone or email through the Holidays.
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666
susanvanwagenen@earthlink.net
For now, Conforming 30 Year Fixed (up to $417,000) is 4.75%, High Balance ($417,000 to $729,750) is 4.875 and Jumbo (over $729,750) is at 6.125%.
Five Year Fixed Conforming is at 3.75%, High Balance is 4% and Jumbo is 4.75%.
Beware that many investor/bank guidelines for FHA loans are requiring a second appraisal on loan amounts above $417,000. This is coming up during underwriting. It is not an FHA guideline but has been noted on the high balance FHA loans lately.
I hope you are enjoying all your Holiday festivities. Please call me if there is anything I can do to help you! If I am not in the office I will be available via cell phone or email through the Holidays.
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666
susanvanwagenen@earthlink.net
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