Mortgage Blogs Feb 08, 2012
Mortgage Bankers Association's Weekly Applications Survey, demand for mortgage loans surged last week. The Market Composite Index, which measures total loan application volume, was up 7.5 percent over the previous week due to a 9.4 percent spike in the Refinance Index. The Purchase Index gained 0.1 percent from the previous week. Refinance activity represented 80.5 percent of all loan applications largely because of another dip in average...
 Feb 08, 2012
By James Brooks Wednesday's bond market has opened up slightly with stocks showing losses and nothing during morning hours to drive trading other than waiting for news from Greece about its bailout plans. The Dow is currently down 45 points while the Nasdaq has lost 7 points. The bond market is currently up 2/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point. Today's only relevant...
 Feb 08, 2012
In early trading this morning the 10-Year Note yield touched 2.00% ahead of the $24B 10-Year Note Auction later this afternoon (100pm). mortgage prices started slightly weaker with both the 10-Year Note and MBS prices holding well so far, with no economic releases scheduled again today. Stock index futures traded slightly better prior to the open at 930am. At 900am this morning, after testing support at 2.00% the 10-Year Note was back to 1.98%,...
 Feb 08, 2012
Absorption rate in real estate denotes how long it would take to sell all the homes currently on the market, without any new inventory coming on board. It is not an exact science as supply and demand has lots of variables. The general rule isBelow 6 months supply is considered a seller's marketAbove 6 months supply is considered a buyer's market 6 months is considered a neutral market
 Feb 08, 2012
Refinancing FAQ's If you have been considering refinancing your home it is only natural that you have questions. Here are the answers to some of the most frequently asked ones: What are the Benefits of Refinancing Your Home? Homeowners usually benefit from refinancing when they need to pay off high interest debt, lower their monthly mortgage payment or shorten the term of their mortgage loan or even to tap the equity built up in their home...
 Feb 08, 2012
In early trade this morning the 10 yr note yield touched 2.00% ahead of the $24B 10 yr auction later this afternoon (1:00 pm). Mortgage prices started slightly weaker; both the 10 yr and MBS prices holding well so far with no economic releases scheduled again today. Stock index futures traded slightly better prior to the open at 9:30. At 9:00 this morning, after testing support at 2.00% the 10 yr was back to 1.98% unchanged from yesterday and...
 Feb 07, 2012
Do you owe more on your mortgage than it's worth? Tried to refinance and could not because your value is gone? With this new great government program, we can refinance you now! No Appraisal, No LTV restrictions, minimal fees, and lenient lending requirements. so how do you qualify? Watch this short presentation to find out, and then give me a call!
 Feb 07, 2012
Mortgage rates across the board are at historic lows. Everything, from 1-year adjustable rates to 30-year fixed rates, is lower now than it ever has been in most people's experience. However, there are gaps to consider. The 15 year mortgage is at 3.2 percent while the 30-year can be obtained at 3.9 percent, a difference of 70 basis points. The 5 year hybrid ARM is 2.8 percent. The 1-year ARM is of no value since it is also beign quoted at...
Feb 07, 2012
Breaking down components, the wages of everyone combined grew by 0.4 percent while small business income grew by 0.1 percent. Dividend and rental income grew at a healthy pace by better than 1 percent over a single month. Compared to a year ago Personal income is higher by 3.8 percent. The savings rate rose back up to 4.0 percent in December, from 3.5 percent int he previous month. during the economic boom years, the savings rate was a paltry 2...
Feb 07, 2012
Aside from the pending home sales index, which declined modestly in December, following a good showing in the previous month, two separate housing data were out today. The number of people submitting mortgage applications for a home purchase fell 5 percent in the latest week. Despite the week to week bounces, this data has been trending mostly sideways in the past 18 months. One should not fully gauge home sales from mortgage activity. Because of...
Feb 07, 2012
Real Estate is a business based on relationships and trust between the client and the agent. From the most recent profile of home buyers and sellers, we know that 41 percent of recent home buyers found their agent through a referral from a friend, neighbor or relative and 9 percent of buyers used an agent that they had used previously to buy or sell a home. Nearly half of first time buyers used an agent they found through a referral and 12...
Feb 07, 2012
While most homebuyers continue to see their home purchase not only as a place to live, but also as a good financial investment, a smaller share expressed this view than in the past. Seventy eight percent of buyers feel that thier homepurchase is a good financial investment, while only 8 percent felt it was not a good investment. In the 2010 NAR Profile of Home Buyers and Sellers, 85 percent reported that a home was a good finacial investment and...
 Feb 07, 2012
We found an interesting story today from DS News Service that reported "Housing Crisis to end in 2012 as Banks Loosen Credit Standards". See full story
Feb 07, 2012
Pros of Reverse Mortgages(RM): o RM, Allows the homeowner to stay in the home o RM, Can pay off existing mortgages on the home. o RM, Simple to qualify for as there aren't any minimum credit score and generally no income requirements. o With RM no monthly mortgage payments are due for as long as the homeowner lives in the home and meets requirements for maintenance and paying property taxes and insurance. o The homeowner receives payments on flexible
 Feb 07, 2012
The purchase of a home is the goal of the vast majority of Americans. That is why home ownership is often referred to as "The American Dream of Home Ownership." Two-thirds of Americans have taken advantage of the tax benefits, government programs and the economic benefits of owning to become home owners. Even in the past few years when the real estate markets have not been as "hot," millions have taken advantage of the buying opportunities to...
Feb 07, 2012
Very early this morning the U.S. stock indexes were weak following Europe's equity markets. The 10-Year Note at 700am was down -2/32. By 830am however the 10-Year Note fell further, down 11/32 at 1.94% (+4 bps), MBS prices were down -2/32 (.06 bps). This is another day with no economic data until 300pm this afternoon when December Consumer Credit is reported (expected up +$8.5B). At 100pm the Treasury will auction $32B of 3-Year Notes, Last...
 Feb 07, 2012
Buying a Short Sale,make sure you pick the right lender! Listing Agent's first mistake in regards to home buyer. They do little in regards to make sure the lender chosen by the home buyer can perform in a 30 day period. Many big retail banks like Wells Fargo and BoA take 45-60 days to close and that is if everything goes smoothly.The listi
 Feb 07, 2012
Lock An Instant 13% Savings On Your Monthly Mortgage PaymentFebruary 7, 2012 Byjeffcost Falling mortgage rates make owning a home more affordable. Mortgage rates are directly tied to monthly mortgage payment so as mortgage rates drop, so does the cost of home-ownership. It's a money-saving time to buy a home in
Feb 07, 2012
By James Brooks Tuesday's bond market has opened in negative territory, reversing gains from late yesterday. The stock markets initially opened in negative ground but have since moved into positive territory. The Dow is currently up 26 points while the Nasdaq is up 5 points. The bond market is currently down 17/32, but due to strength in trading late yesterday, we should see this morning's mortgage rates very close to yesterday's...
 Feb 07, 2012
Tuesday - February 7, 2012 8:45am ET Current Trend Direction: Sideways to lower near-term Float/Lock Bias: Cautious with bias towards Locking short-term (days and weeks), Floating longer-term Current Price of FNMA 3.5% Bond: $103.75, -6bp"I can't quite understand why we need a few more days" German Chancellor, Angela Merkel on unresolved Greek negotiations.That quote says it all as private creditors, Greek and European Officials are still negotiating the
Feb 07, 2012
Very early this morning the US stock indexes were weak following Europe's equity markets; the 10 yr note at 7:00 am -2/32. By 8:30 however the 10 yr note fell further, down 11/32 at 1.94% +4 bp, MBS prices -2/32 (.06 bp). This is another day with no economic data until 3:00 this afternoon when Dec consumer credit is reported (+$8.5B). At 1:00 Treasury will auction $32B of 3 yr notes, last month's 3 yr auction drew the largest demand on...
 Feb 06, 2012
The Federal Housing Administration's recently announced plans to tighten its standards for approving lenders will increase prepayment risks for investors who own Ginnie Mae-backed securities, say analysts at Barclays Capital. The agency's plans to eliminate the consderation of a lender's compare ratio when deciding whether to streamline-refinance its loans will accelerate refinancing activity, they say, causing higher prepayment...
 Feb 06, 2012
11 Trends from 2011 The National Association of Realtors(R) surveys homebuyers and sellers each year to uncover housing trends and monitor changes taking place in the industry. This year's report highlights a number of trends that haven't been seen in years. Here are just 11 highlights from the 2011 report. 1. In 2011, 37% of homebuyers were first-time buyers - which was down from 50% in 2010. 2. Last year, 88% of homebuyers used the...
Feb 06, 2012
Treasuries and mortgages opened unchanged this morning with no news. Greece still can't finalize anything on their debt workout. It's been three weeks and counting since Greek officials said they were close to an agreement with creditors. Last week's January Employment Report was much better than even the most optimistic forecasts and counter to the pessimistic outlook delivered from the Federal Reserve at the conclusion of the Jan...
Feb 06, 2012
By James Brooks Monday's bond market has opened flat despite stocks in negative territory and rising concerns about the Greece situation. The Dow is currently down 46 points while the Nasdaq has lost 11 points. The bond market is currently nearly unchanged from Friday's close, but we will still see an increase of approximately .125 - .250 of a discount point in this morning's mortgage rates due to weakness late Friday. If your...
 Feb 06, 2012
Good morning,Last week saw most economic data come in better than market expectations, including this past Friday's Employment Report. As a result, the 10 Year Bond Yield rose from 1.84% (on 01/30/12 - Monday) to 1.95% (on 02/03/12 - Friday). This also drove up mortgage rates.Today, the 10 Year Bond Yield has fallen slightly to 1.93% due to more economic uncertainty in Europe. The financial markets are still worried that Greece might not be...
Feb 06, 2012
Monday - February 6, 2012 9:00am ETCurrent trend Direction: Longer-term Sideways to Higher, Short-term - battling resistanceFloat Lock Bias: Depending on time frame - Shorter-term bias towards locking, Longer-term floatingCurrent Price of FNMA 3.5% Bond: $103.66, -6bp The US economic calendar slows down this week. There are no economic reports set for release today and the important readings don't come until Thursday's Initial Claims...
Feb 06, 2012
Treasuries and mortgages opened unchanged this morning with no news. Greece still can't finalize anything on their debt workout; three weeks and counting since Greek officials said they were close to an agreement with creditors. Last week's Jan employment report was much better than even the most optimistic forecasts and counter to the pessimistic outlook delivered from the Fed at the conclusion of the Jan 25th FOMC meeting. Not only...
Feb 06, 2012
A U.S. Census Bureau report on fourth-quarter vacancy and homeownership rates shows vacancies among non-rental housing at levels last seen in 2006. The national vacancy rate for single-family homes dropped to 2.3 percent during the fourth-quarter of 2011, down from 2.7 percent the year b
Feb 05, 2012
By James Brooks There are only two pieces of monthly economic data scheduled for release this week. Neither of them is considered to be highly important, so we don't have much to pin our hopes on or to be concerned with this week. There are two Treasury auctions on the calendar that may influence mortgage rates the middle part of the week and the second part of Fed Chairman Bernanke's testimony to Congress, but no important economic...
Feb 05, 2012
Data from the U.S. Bureau of Labor Statistics shows total nonfarm payroll employment rose by 243,000 in January, bringing the unemployment rate down to 8.3 percent from 8.5 percent the month before. The improvement continues a trend which has seen the unemployment rate fall 0.8 percent since August. January's gains were better-than-expected and the rate is now at its lowest level in three years. An improving job market is vital to...
Feb 04, 2012
Last Week in Review It's been said that no news is good news. But last week, the Jobs Report brought some good news for the labor market. Read on for the details...and what they mean for home loan rates. The headline Jobs Report showed 243,000 jobs created, which was much better than expected. Meanwhile, a whopping 257,000 private jobs were created, also much higher than expected. Upward revisions to November and December added another...
 Feb 03, 2012
Your Initial Meeting with a Mortgage Professional at PFA/AFG The loan approval process generally begins with an initial interview where you and a mortgage professional discuss the potential loan. You will need to send information to us to verify your income and long term debts. You may prefer to talk with PFA/AFG before house hunting to determine in advance how much you can afford and the mortgage amount for which you can qualify. This step is called pre-qual
 Feb 03, 2012
Recently President Obama declared that he would be proposing a loan program that could enable homeowners to help save up to $3000 a month on their mortgage loan even if they don't qualify for the HARP loan program in Cali
Feb 03, 2012
If the monthly employment data ever came close to forecasts the world would stop rotating. The January Unemployment Rate fell to 8.3% from 8.5% in December and was expected unchanged in January. Non-Farm Jobs increased 243K with forecasts up +135K; Non-Farm Private Jobs were +257K with forecasts up +170K. November Non-Farm Jobs were revised from up +100K to +157K, Factory Jobs were +50K and Service Producing Jobs were +162K. As for the decline in...
Feb 03, 2012
7 Things to Know Before You Buy That Short Sale House The Wrong Short Sale House Might Not Ever Close Qualify the listing agent and the seller before writing an offer on that short sale house.When you spot a Short Sale house that interests you, take your hand off the mouse and step away from the computer. Before you get all
 Feb 03, 2012
A Jumbo VA loan is one over $417,000. For years, the U.S. Department of Veterans Affairs has allowed Jumbo VA loans. The Fannie Mae conforming loan limit in most U.S. counties is $417,000. This limit can change. A qualified borrower can get a loan of up to the conforming limit with no money down. What many borrowers don't know is that there are also some Jumbo VA loans that may require no money down. In certain higher cost counties,...
Feb 03, 2012
When financing a home with a VA home loan, an appraisal is necessary in order to justify the loan amount. A VA loan amount cannot exceed the appraised property value. There are a lot of people who are certified to appraise real estate. However, not all of them are VA approved. Only a VA-approved appraiser can appraise the value of a property being financed with a VA loan. Although anyone can request an appraisal (buyer, seller, realtor or...
Feb 03, 2012
By James Brooks Friday's bond market has opened down sharply following surprisingly strong employment news. The stock markets are reacting positively to the data with the Dow up 129 points and the Nasdaq up 37 points. The bond market is currently down 30/32, which will likely push this morning's mortgage rates higher by approximately .375 - .500 of a discount point. There were two economic reports posted this morning, but it is only one...
 Feb 03, 2012
There has been a lot in the news lately about current homeowners that owe more than what their home is worth in today's market. In the lending community we have refinance loans that do not require an appraisal to support the value, the VA IRRRL, FHA Streamline and Now the new and Improved HARP 2.0 called Refi DU Plus. To explore options on a refinance verses looking at a short sale or letting the home go into foreclosure, call me at...
Feb 03, 2012
If the monthly employment data ever came close to forecasts the world would stop rotating. Jan unemployment rate fell to 8.3% frm 8.5% in Dec and expected unchanged in Jan. Non-farm jobs increased 243K, forecasts +135K; non-farm private jobs +257K, forecasts +170K. Nov non-farm jobs were revised from +100K to +157K, factory jobs +50K and service producing jobs +162K. As for the decline in the unemployment rate, the implication is that many more...
Feb 03, 2012
February 3, 2012 10:04am ET Current Trend Direction: Intermediate Trend remains higher, Short-term lower off ceiling of resistance Float/Lock Bias: Cautious with bias towards Locking short-term, Floating longer-term Current Price of FNMA 3.5% Bond: $103.62, -41bp Mortgage Bonds are sharply lower on a far better than expected Jobs Report. Let's break it down. The headline Jobs Report showed 243,000 jobs created, far above estimates of...
 Feb 02, 2012
The Home Affordable Refinance Program (HARP) Allows homeowners to refinance into low mortgage interest rates even if the property has decreased in value. The Home Affordable Refinance Program provides an option for Home owners to refinance "Under Water Mortgages". A HARP Refinance addresses situations where the homeowner's property value has fallen causing them to no longer qualify under traditional underwriting criteria. Homeowners with a...
Feb 02, 2012
It was generally a quiet open this morning with Treasuries fractionally weaker but MBS prices with a minor improvement. At 900am the 10-Year Note was down -1/32 at 1.84% and MBS's up +2/32 (.06 bp). 830am data; Weekly Jobless Claims were expected to increase a few thousand, as released the claims fell 12K to 367K; Continuing Claims reported 3.437 million from 3.567 million last week. Continuing Claims are the lowest since Sept 6th 2008. Q4...
Feb 02, 2012
The new HARP Program was outlined in the President's State of the Union address. This program is to help responsible borrowers refinance their homes at today's low rates - even if they are underwater with the loan to home value. The plan is to provide borrowers who are current on their payments the opportunity refinance making a big difference in the money they will save each month. The Big Day is March 1st - that's when most...
 Feb 02, 2012
MARKET NEWS Thursday's bond market has opened flat despite unfavorable results from this morning's economic releases. The stock markets are mixed with the Dow nearly unchanged and the Nasdaq up 12 points. The bond market is currently down 3/32, which should keep this morning's mortgage rates at yesterday's levels. The Labor Department said early this morning that 367,000 new claims for unemployment benefits were filed last...
 Feb 02, 2012
If you are a loan officer and have been in this business for more than five minutes, you have dealt with the frustrations of a soft housing market and homeowner's sometimes unrealistic valuation expectations. I am fortunate in that I live and originate loans in Texas. The housing market isn't exactly booming here, but I cannot imagine how tough it must be for homeowners desiring to refinance in the "sand" states, such as Nevada,...
Feb 02, 2012
Current Mortgage Rate Trends has mortgage rates improving 148bps since January 24th. This continues the recent trend for lower mortgage rates since a 5 day run of declines. This five day event may save as much as .25-.50 off the mortgage rate from previous quotes. Right now is the best time to buy a home or refinance an existing mortgage since the fall of 2010. A 15 year loan may have the same payment as an older 30 year loan at a higher rate. We...
Feb 02, 2012
You may have heard that home loan rates have improved and are back down to near historic levels. In fact, I've been slammed with emails and phone calls from people just like you who wanted to take advantage of this wonderful situation. But you need to keep the following in mind... While some people say good things come to those who wait, others say to strike while the iron is hot. In this case, the "iron is hot" with rates at exceptionally...
Feb 02, 2012
By James Brooks Thursday's bond market has opened flat despite unfavorable results from this morning's economic releases. The stock markets are mixed with the Dow nearly unchanged and the Nasdaq up 12 points. The bond market is currently down 3/32, which should keep this morning's mortgage rates at yesterday's levels. The Labor Department said early this morning that 367,000 new claims for unemployment benefits were filed last...
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