Mortgage Market Commentary
Mortgage backed securities (MBS) prices are currently unchanged in quiet trading, FNMA 4.5% coupon 100.33bps. MBS were up as much as 15bps earlier, however. The U.S. economy shrank more than forecast in the fourth quarter, 6.2%, as consumer spending plunged, companies cut inventories and exports sank. Stocks fell on the news but have since recovered most of the losses. Chicago Purchasing Managers Index showed business activity contracted for a fifth consecutive month in February and Consumer Sentiment also fell weighed down by job losses, declining stock prices and plunging home values. The Fed continues to support lower rates with recent purchase of $25 billion MBS with $15 billion in agency 4.5% coupons.
The stock market and bond market's are both volitale today. They appear to be searching for direction after the Government/Citi deal and the revised GDP numbers released today.
WASHINGTON (AP) -- The economy contracted at a staggering 6.2 percent pace at the end of 2008, the worst showing in a quarter-century, as consumers and businesses ratcheted back spending, plunging the country deeper into recession.
Friday, February 27, 2009
Thursday, February 26, 2009
Homebuyer Tax Credit Forms
Forms and instructions for claiming the credit on 2008 tax returns are available at www.irs.gov. The form number is 5405.
Mortgage rates rise
Mortgage rates rise
Lara Moscrip, CNNMoney.com contributing writer
Thursday February 26, 2009, 12:38 pm EST
Mortgage rates rose over the past week, as home prices and sales fell and the government issues massive amounts of debt to pay for federal spending.
The average 30-year fixed mortgage rose to 5.41% for the week ended Feb. 25 from 5.34% the week prior, according to Bankrate.com. The average jumbo 30-year fixed rate slipped to 6.87% from 6.92%.
It's likely mortgage rates will remain at their historically low levels, as money is funneled into the perceived safety of Treasurys, driving down interest rates and keeping mortgage rates low, according to Patrick Newport, an economist at IHS Global Insight.
"As long as the economy remains weak, mortgage rates are probably not going to go up very much," Newport said.
The average 15-year fixed rate mortgage was unchanged at 4.93%.
Adjustable-rate mortgages were mixed, with the 1-year ARM increasing to 5.58% from 5.47%; the 5/1 adjustable-rate mortgage rose to 5.4% from 5.37%.
This week, the Treasury is offering a record $94 billion debt over three days, including $22 billion in 7-year notes being auctioned Thursday.
In January, sales of newly constructed homes fell 10%, to the lowest level on record, while the median sales price of new houses sold fell 15% from a year ago, according to a government report.
Bankrate.com's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
Lara Moscrip, CNNMoney.com contributing writer
Thursday February 26, 2009, 12:38 pm EST
Mortgage rates rose over the past week, as home prices and sales fell and the government issues massive amounts of debt to pay for federal spending.
The average 30-year fixed mortgage rose to 5.41% for the week ended Feb. 25 from 5.34% the week prior, according to Bankrate.com. The average jumbo 30-year fixed rate slipped to 6.87% from 6.92%.
It's likely mortgage rates will remain at their historically low levels, as money is funneled into the perceived safety of Treasurys, driving down interest rates and keeping mortgage rates low, according to Patrick Newport, an economist at IHS Global Insight.
"As long as the economy remains weak, mortgage rates are probably not going to go up very much," Newport said.
The average 15-year fixed rate mortgage was unchanged at 4.93%.
Adjustable-rate mortgages were mixed, with the 1-year ARM increasing to 5.58% from 5.47%; the 5/1 adjustable-rate mortgage rose to 5.4% from 5.37%.
This week, the Treasury is offering a record $94 billion debt over three days, including $22 billion in 7-year notes being auctioned Thursday.
In January, sales of newly constructed homes fell 10%, to the lowest level on record, while the median sales price of new houses sold fell 15% from a year ago, according to a government report.
Bankrate.com's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
Mortgage Market Commentary
Mortgage Market Commentary
Mortgage backed securities (MBS) prices are near unchanged this morning, after yesterday's half point (50bps) sell-off due to concerns over an unprecedented flood of new supply (more debt leads to higher rates). FNMA 4.5% coupon 100.35bps, -3bps. Mortgage rates are at the highest level of the month. Economic data released today was significantly worse than expected but MBS had little reaction. Durable Goods Orders fell 5.2%, Jobless Claims jumped to 667k with over 5 million people collecting benefits and New Home Sales declined more than 10% in January with a 13.3 month supply at current rate. Why are mortgage rates not falling with such bad economic news? Too much bad news leads to uncertainty. The Treasury Dept will auction 7yr notes today at 10am pt; MBS will focus on investor demand to gauge the markets appetite for ever increasing debt.
Mortgage backed securities (MBS) prices are near unchanged this morning, after yesterday's half point (50bps) sell-off due to concerns over an unprecedented flood of new supply (more debt leads to higher rates). FNMA 4.5% coupon 100.35bps, -3bps. Mortgage rates are at the highest level of the month. Economic data released today was significantly worse than expected but MBS had little reaction. Durable Goods Orders fell 5.2%, Jobless Claims jumped to 667k with over 5 million people collecting benefits and New Home Sales declined more than 10% in January with a 13.3 month supply at current rate. Why are mortgage rates not falling with such bad economic news? Too much bad news leads to uncertainty. The Treasury Dept will auction 7yr notes today at 10am pt; MBS will focus on investor demand to gauge the markets appetite for ever increasing debt.
Wednesday, February 25, 2009
Mortgage Market Commentary
Mortgage Market Commentary
Mortgage backed securities (MBS) prices headed lower (rates higher) before the government sells a record $32 billion 5yr notes today and $22 billion 7yr notes tomorrow. FNMA 4.5% coupon 100.73bps, -13bps. Existing Home Sales unexpectedly fell in January as plunging prices no longer attracted buyers, who seem to be waiting for details of the administration's plan aimed at stemming foreclosures and declining home values. However, the drop in prices and low mortgage rates have made buying a home more affordable than ever. Mortgage Bankers Association weekly purchase activity fell 3% while refinance activity decreased 19%, coinciding with an uptick in rates from prior week.
Today's stock market has opened lower and is down 156 points at the time of this writing.
Mortgage backed securities (MBS) prices headed lower (rates higher) before the government sells a record $32 billion 5yr notes today and $22 billion 7yr notes tomorrow. FNMA 4.5% coupon 100.73bps, -13bps. Existing Home Sales unexpectedly fell in January as plunging prices no longer attracted buyers, who seem to be waiting for details of the administration's plan aimed at stemming foreclosures and declining home values. However, the drop in prices and low mortgage rates have made buying a home more affordable than ever. Mortgage Bankers Association weekly purchase activity fell 3% while refinance activity decreased 19%, coinciding with an uptick in rates from prior week.
Today's stock market has opened lower and is down 156 points at the time of this writing.
Thursday, February 19, 2009
HOW TO REFINANCE AND GET THE LOWEST MORTGAGE RATE
HOW TO REFINANCE AND GET THE LOWEST MORTGAGE RATE
President Obama has released details of his Housing and Mortgage Stimulus Plan this week. Now what?
If you currently have a mortgage rate of 5.50% or higher you need to call!
The fact of the matter is that mortgage interest rates are very low right now. But there are ways to ensure you get the lowest possible mortgage interest rate on your new Massachusetts Mortgage Loan.
So, what can you do to make sure you can get the lowest rate? Start the process right now!
- We can determine if today’s low rates make refinancing a good solution. If not..
- Complete a comprehensive Refinance Mortgage Analysis worksheet so we can determine your target rate
- We submit your mortgage loan application to receive your mortgage loan approval from the lender.
- Upon approval you can decide if you want to lock in the preferred 1st column pricing* or float your rate.
(*This could reduce your rate .125-.375%).
-
What happens when we have a sudden drop in mortgage interest rates?
- There is a flood of new applications taken
- When the volume exceeds the ability of the lender’s current staff to handle the lenders will raise the rates again. (Currently there is significantly less staff at the lenders due to the past slowing real estate market)
- Drops in mortgage interest rates in the past have only lasted a very short period of time and most people lose out.
- Underwriting turn times fall way behind and force the rate locks to be extended out to 45-60 days. (At the time of writing a large majority of lenders are 30-60 days out for refinance closings)
For those that decide to wait and not take action they will end up obtaining a higher mortgage rate and it will cost many thousands of wasted dollars over the repayment of your mortgage loan.
You have a choice, either save tens of thousands of dollars in your account or repay it needlessly to the bank. You decide.
Remember, when rates drop and you start the process at that time like everyone else, you will have to lock in for a longer period and will be getting a higher mortgage rate than you could have if you had planned. This eliminates the benefit you thought you would have received from waiting for a drop in mortgage rates.
We are looking at an incredible opportunity to be able to lock in mortgage interest rates lower than they have ever been. Put yourself in the best position to make the most of this situation and don’t miss out.
I am currently taking mortgage applications 7 days a week for your convenience. Call now to set up an appointment as I am currently booking appointments days in advance.
Jeff Drew is a Massachusetts Licensed Mortgage Loan Originator (MLO#41456) with Star Mortgage (MB1206) in West Bridgewater, MA. He can be reached at his Office at (800)-941-5616 or Cell (800) 984-3523. www.JeffDrewStarMortgage.com
President Obama has released details of his Housing and Mortgage Stimulus Plan this week. Now what?
If you currently have a mortgage rate of 5.50% or higher you need to call!
The fact of the matter is that mortgage interest rates are very low right now. But there are ways to ensure you get the lowest possible mortgage interest rate on your new Massachusetts Mortgage Loan.
So, what can you do to make sure you can get the lowest rate? Start the process right now!
- We can determine if today’s low rates make refinancing a good solution. If not..
- Complete a comprehensive Refinance Mortgage Analysis worksheet so we can determine your target rate
- We submit your mortgage loan application to receive your mortgage loan approval from the lender.
- Upon approval you can decide if you want to lock in the preferred 1st column pricing* or float your rate.
(*This could reduce your rate .125-.375%).
-
What happens when we have a sudden drop in mortgage interest rates?
- There is a flood of new applications taken
- When the volume exceeds the ability of the lender’s current staff to handle the lenders will raise the rates again. (Currently there is significantly less staff at the lenders due to the past slowing real estate market)
- Drops in mortgage interest rates in the past have only lasted a very short period of time and most people lose out.
- Underwriting turn times fall way behind and force the rate locks to be extended out to 45-60 days. (At the time of writing a large majority of lenders are 30-60 days out for refinance closings)
For those that decide to wait and not take action they will end up obtaining a higher mortgage rate and it will cost many thousands of wasted dollars over the repayment of your mortgage loan.
You have a choice, either save tens of thousands of dollars in your account or repay it needlessly to the bank. You decide.
Remember, when rates drop and you start the process at that time like everyone else, you will have to lock in for a longer period and will be getting a higher mortgage rate than you could have if you had planned. This eliminates the benefit you thought you would have received from waiting for a drop in mortgage rates.
We are looking at an incredible opportunity to be able to lock in mortgage interest rates lower than they have ever been. Put yourself in the best position to make the most of this situation and don’t miss out.
I am currently taking mortgage applications 7 days a week for your convenience. Call now to set up an appointment as I am currently booking appointments days in advance.
Jeff Drew is a Massachusetts Licensed Mortgage Loan Originator (MLO#41456) with Star Mortgage (MB1206) in West Bridgewater, MA. He can be reached at his Office at (800)-941-5616 or Cell (800) 984-3523. www.JeffDrewStarMortgage.com
Mortgage Market Commentary
Mortgage backed securities (MBS) prices are lower (rates higher) as stronger than expected inflation data has hurt the MBS market. FNMA 4.5% coupon 100.83bps, -22bps and near the low of the session. Jobless claims were unchanged at 627k, the 4 week moving avg rose to 619k and total benefit rolls jumped to 4.99 million, signaling the job market is deteriorating. Producer prices rose last month as fuel costs climbed but the long term threat to inflation remains the enormous stimulus packages and the unprecedented amount of government borrowing needed to support its spending. More supply leads to higher yields which raises mortgage rates; NOT GOOD.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
Wednesday, February 18, 2009
Obama Housing and Mortgage Plan
Obama's $75B Housing Plan to Assist 3-4 Million Homeowners
The Obama administration unveiled a $75 billion housing plan on Wednesday, which it says will help seven to nine million American families avoid foreclosure.
In a White House press release, the Obama administration said the mortgage plan will boost confidence by creating lower mortgage rates and will allow refinancing for four to five million homeowners and assist another three to four million "hard pressed" homeowners.
As part of the plan, the U.S. Treasury will increase its stock purchases of Fannie and Freddie by up to $400 billion, or $200 billion each - double the original level. The Treasury will also boost its purchase of Fannie and Freddie's mortgage portfolios by $50 million each to $900 billion.
The administration said the move will strengthen confidence in Fannie Mae and Freddie Mac, and will ensure mortgage stability.
The $75 billion initiative will be available only to owner-occupied homes and aims to modify loans to reduce payments to more affordable levels, the administration added.
By Stephen Huebl and edited by Sarah Sussman
©CEP News Ltd. 2009
The Obama administration unveiled a $75 billion housing plan on Wednesday, which it says will help seven to nine million American families avoid foreclosure.
In a White House press release, the Obama administration said the mortgage plan will boost confidence by creating lower mortgage rates and will allow refinancing for four to five million homeowners and assist another three to four million "hard pressed" homeowners.
As part of the plan, the U.S. Treasury will increase its stock purchases of Fannie and Freddie by up to $400 billion, or $200 billion each - double the original level. The Treasury will also boost its purchase of Fannie and Freddie's mortgage portfolios by $50 million each to $900 billion.
The administration said the move will strengthen confidence in Fannie Mae and Freddie Mac, and will ensure mortgage stability.
The $75 billion initiative will be available only to owner-occupied homes and aims to modify loans to reduce payments to more affordable levels, the administration added.
By Stephen Huebl and edited by Sarah Sussman
©CEP News Ltd. 2009
Mortgage Rate Alert
The stock market futures were showing a positive opening but have since declined after the housing start information below. At the time of writing the market has dropped to -71.00.
The U.S. housing sector continued to show weakness in January. Housing starts and building permits sunk to new record lows for the second consecutive month.
U.S. housing starts fell to an annualized pace of 466k, representing a month-over-month decrease of 16.8%, according to the U.S. Department of Commerce.
The consensus was for January to show a decline to 529k. The previous month's reading was revised up to 560k from a previously reported 550k.
Single-family homes,the most important component in the report, accounting for four-fifths of housing starts - fell 12.2% to 347k, compared to the previous month's
395k. Single-family units have been falling for 20 of the past 21 months.
Building permits fell to 521k in January, down from 547k in December. The consensus was looking for 525k building permits.
President Barack Obama's housing plan details are expected to be announced today.
Short term and long term floating look safe today. I will provide additional mortgage trends as the day continues.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details. 800-941-5616
The U.S. housing sector continued to show weakness in January. Housing starts and building permits sunk to new record lows for the second consecutive month.
U.S. housing starts fell to an annualized pace of 466k, representing a month-over-month decrease of 16.8%, according to the U.S. Department of Commerce.
The consensus was for January to show a decline to 529k. The previous month's reading was revised up to 560k from a previously reported 550k.
Single-family homes,the most important component in the report, accounting for four-fifths of housing starts - fell 12.2% to 347k, compared to the previous month's
395k. Single-family units have been falling for 20 of the past 21 months.
Building permits fell to 521k in January, down from 547k in December. The consensus was looking for 525k building permits.
President Barack Obama's housing plan details are expected to be announced today.
Short term and long term floating look safe today. I will provide additional mortgage trends as the day continues.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details. 800-941-5616
Tuesday, February 17, 2009
Mortgage Rate Advise
Today the stock market opened down. At the time of this report it is down 255 points. There is a lot of economic reports due out this week which can have an impact on mortgage rates.
According to Rueters:"The New York Federal Reserve's Empire State factory index fell to minus 34.65 -- the lowest in the history of the index, which dates back to July 2001. It was down from January's already contractionary reading of minus 22.20."
The FOMC meeting minutes from the last meeting are to be released Wednesday.
January housing starts come out Wednesday morning and CPI is due out on Friday.
Today's short term and long term trends lean towards floating.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
According to Rueters:"The New York Federal Reserve's Empire State factory index fell to minus 34.65 -- the lowest in the history of the index, which dates back to July 2001. It was down from January's already contractionary reading of minus 22.20."
The FOMC meeting minutes from the last meeting are to be released Wednesday.
January housing starts come out Wednesday morning and CPI is due out on Friday.
Today's short term and long term trends lean towards floating.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
Friday, February 13, 2009
Daily Mortgage Rate Advice
Friday's bond market has opened well in negative territory despite the release of weaker than expected results in today's only economic news. The stock markets are flat during early trading with the Dow up 2 points and the Nasdaq is up 4 points. The bond market is currently down 20/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.
The University of Michigan Index of Consumer Sentiment was today's only relevant data on the schedule. It showed a reading of 56.2 that was well below forecasts of 60.2. This indicates that consumers were much less optimistic about their own financial situations than analysts had expected. That is good news for bonds and mortgage rates because it usually means that consumers are less likely to make large purchases in the near future.
Today's weakness is due to attention turning back to the amount of debt expected to be brought to market to fund the economic stimulus package that is being considered by Congress. With an approval seeming like a good possibility, the potential new supply for government debt has traders concerned.
Also contributing to this morning's weakness may be an expectation of a stock rally once the approvals are announced. That would create a scenario that makes stocks more appealing to investors and lead to a shift in funds from bonds to stocks. It appears that the selling in bonds may be in part a move by some traders as an effort to get back into stocks if the plan is approved.
There is an early close in the bond market today ahead of Monday's President's Day Holiday, but I don't think it will negative affect bonds or mortgage rates today. The financial markets will be closed Monday and will reopen Tuesday for normal trading hours.
Next brings us the release of a couple of important reports including two key inflation readings. None of the important data is scheduled for release Tuesday, but look for details on next week's events in Sunday's weekly preview.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
The University of Michigan Index of Consumer Sentiment was today's only relevant data on the schedule. It showed a reading of 56.2 that was well below forecasts of 60.2. This indicates that consumers were much less optimistic about their own financial situations than analysts had expected. That is good news for bonds and mortgage rates because it usually means that consumers are less likely to make large purchases in the near future.
Today's weakness is due to attention turning back to the amount of debt expected to be brought to market to fund the economic stimulus package that is being considered by Congress. With an approval seeming like a good possibility, the potential new supply for government debt has traders concerned.
Also contributing to this morning's weakness may be an expectation of a stock rally once the approvals are announced. That would create a scenario that makes stocks more appealing to investors and lead to a shift in funds from bonds to stocks. It appears that the selling in bonds may be in part a move by some traders as an effort to get back into stocks if the plan is approved.
There is an early close in the bond market today ahead of Monday's President's Day Holiday, but I don't think it will negative affect bonds or mortgage rates today. The financial markets will be closed Monday and will reopen Tuesday for normal trading hours.
Next brings us the release of a couple of important reports including two key inflation readings. None of the important data is scheduled for release Tuesday, but look for details on next week's events in Sunday's weekly preview.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
Thursday, February 12, 2009
Market Update
Retail Sales snapped a six consecutive monthly losing string by unexpectedly rising by +1.0% in January, their largest increase since November 2007. Many retailers cleared their inventories by offering deep discounts during after-Christmas sales and consumers waited for the sales before loosening their purse strings. The surprisingly strong jump in Retail Sales easily exceeded the consensus estimate of -0.4%. After factoring out the effect of auto sales, Retail Sales rose by 0.9% vs. a forecast of -0.3%.
The labor market remains perilous. Weekly Initial Jobless Claims dropped by 8,000 claims to 623,000, a little higher than the economic forecast of 610,000. The four-week moving average increased by 24,000 to 607,500 claims, the highest level in more than 26 years. The four-week moving average for continuing claims hit a new all-time record, increasing by 73,750 claims to reach 4.75 million, the highest level since recordkeeping began in 1967.
The latest news out of Washington, D.C. indicates congressional leaders have agreed on tax cut and spending provisions in President Obama's "Financial Stability Plan" totaling $789 billion. The final vote on the bill by the House and Senate will most likely take place by Friday and then on to President Obama to sign over the weekend.
Foreclosure rates dropped in January by 10% from December signaling that recent efforts of mortgage modifications and moratoriums prove to be helping. The report showed that 1 in every 466 US homes received a foreclosure filing in January. The states with the top foreclosure rates were Nevada, California and Arizona.
Brought to you, courtesy of The Mortgage Market Guide.
The market commentary material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without error.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
The labor market remains perilous. Weekly Initial Jobless Claims dropped by 8,000 claims to 623,000, a little higher than the economic forecast of 610,000. The four-week moving average increased by 24,000 to 607,500 claims, the highest level in more than 26 years. The four-week moving average for continuing claims hit a new all-time record, increasing by 73,750 claims to reach 4.75 million, the highest level since recordkeeping began in 1967.
The latest news out of Washington, D.C. indicates congressional leaders have agreed on tax cut and spending provisions in President Obama's "Financial Stability Plan" totaling $789 billion. The final vote on the bill by the House and Senate will most likely take place by Friday and then on to President Obama to sign over the weekend.
Foreclosure rates dropped in January by 10% from December signaling that recent efforts of mortgage modifications and moratoriums prove to be helping. The report showed that 1 in every 466 US homes received a foreclosure filing in January. The states with the top foreclosure rates were Nevada, California and Arizona.
Brought to you, courtesy of The Mortgage Market Guide.
The market commentary material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without error.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
Economic Stimulus Package Awaits Final Vote
Update
The $15,000 tax credit for those buying a home over the next year has been dropped from the plan. Instead a first-time homebuyer could claim $8,000 as a credit for homes bought by the end of August 2009. With Mortgage rates at or near all time lows this is the perfect time to buy a new home in Massachusetts.
The $15,000 tax credit for those buying a home over the next year has been dropped from the plan. Instead a first-time homebuyer could claim $8,000 as a credit for homes bought by the end of August 2009. With Mortgage rates at or near all time lows this is the perfect time to buy a new home in Massachusetts.
Wednesday, February 11, 2009
Mortgage Rate Advisory
Wednesday's bond market has opened in positive territory again as traders continue to digest yesterday's activities on the economic stimulus and Fed bailout packages. The stock markets are rebounding from yesterday's sell off but have only been able to recover part this losses so far. The Dow is currently 55 points and the Nasdaq is up 8 points. The bond market is currently up 8/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.
Today's only economic news was December's Goods and Services Trade Balance that showed a trade deficit of $39.9 billion in December. This was a larger than expected deficit with latest forecasts calling for it to stand at $35.7 billion. But it was still the lowest trade deficit since February 2003. Unfortunately, this data is not considered to be of high importance to the bond market and mortgage rates.
The second stage of this week's quarterly refunding or sales of government debt is today with 10-year Treasury Notes being sold. The results of the sale will be posted at 1:00 PM ET. If it was met with strong demand, easing recent fears about the amount of debt being sold to fund the economic stimulus and Fed bailout programs, we should see bond prices move higher during afternoon trading. This may lead to a downward revision in mortgage rates. However, if the sale was met with a poor demand, we could see selling in bonds this afternoon that will lead to upward revisions to mortgage rates.
Tomorrow morning brings us the release of January's Retail Sales data. This report is very important to the financial markets because it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any related data is watched quite closely. If tomorrow's report reveals weaker than expected sales, the bond market should thrive and mortgage rates will fall. However, a stronger reading than current forecast of a d ecline in sales of 0.3% may drive mortgage rates higher tomrorow.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
Today's only economic news was December's Goods and Services Trade Balance that showed a trade deficit of $39.9 billion in December. This was a larger than expected deficit with latest forecasts calling for it to stand at $35.7 billion. But it was still the lowest trade deficit since February 2003. Unfortunately, this data is not considered to be of high importance to the bond market and mortgage rates.
The second stage of this week's quarterly refunding or sales of government debt is today with 10-year Treasury Notes being sold. The results of the sale will be posted at 1:00 PM ET. If it was met with strong demand, easing recent fears about the amount of debt being sold to fund the economic stimulus and Fed bailout programs, we should see bond prices move higher during afternoon trading. This may lead to a downward revision in mortgage rates. However, if the sale was met with a poor demand, we could see selling in bonds this afternoon that will lead to upward revisions to mortgage rates.
Tomorrow morning brings us the release of January's Retail Sales data. This report is very important to the financial markets because it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any related data is watched quite closely. If tomorrow's report reveals weaker than expected sales, the bond market should thrive and mortgage rates will fall. However, a stronger reading than current forecast of a d ecline in sales of 0.3% may drive mortgage rates higher tomrorow.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
Tuesday, February 10, 2009
Daily Rate Lock Advisory
Tuesday's bond market has opened well into positive territory as last night's speech by President Obama and his bank bailout plan are being received favorably. The stock markets are not reacting as well to the news with the Dow down 295 points and the Nasdaq down 49 points. The bond market is currently up 28/32, which should improve this morning's mortgage rates by approximately .250 - .375 of a discount point.
Fed Chairman Bernanke will be speaking before the House Financial Services Committee at 1:00 PM ET today. He is expected to testify and update the panel on the Fed's liquidity injections and future plans. His words could create movement in the markets and possibly mortgage pricing during afternoon trading. After this morning's warm reception to the President's plan, I don't think that it is likely that we will have a negative reaction to Chairman Bernanke's testimony.
However, this week begins the quarterly refunding or sales of government debt that has had traders so concerned about recently. We will likely see more volatility as the week goes on, and as the sales take place. A total of $67 billion in new debt is being sold this week, which had raised concern about demand for current debt already in the market. That is what has pressured bonds recently and helped drive mortgage rates higher. If the market can get by that stigma or concern, we could see mortgage rates rally in the coming weeks.
There was no relevant data scheduled for release this morning. Tomorrow brings us the first of this week's three releases when the least important of them, December's Goods and Services Trade Balance, will be posted. This report measures the U.S. trade deficit and can affect the value of the U.S. dollar versus other currencies, but it usually does not cause enough movement in bond prices to affect mortgage rates.
If I were considering financing/refinancing a home, I w ould.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
Fed Chairman Bernanke will be speaking before the House Financial Services Committee at 1:00 PM ET today. He is expected to testify and update the panel on the Fed's liquidity injections and future plans. His words could create movement in the markets and possibly mortgage pricing during afternoon trading. After this morning's warm reception to the President's plan, I don't think that it is likely that we will have a negative reaction to Chairman Bernanke's testimony.
However, this week begins the quarterly refunding or sales of government debt that has had traders so concerned about recently. We will likely see more volatility as the week goes on, and as the sales take place. A total of $67 billion in new debt is being sold this week, which had raised concern about demand for current debt already in the market. That is what has pressured bonds recently and helped drive mortgage rates higher. If the market can get by that stigma or concern, we could see mortgage rates rally in the coming weeks.
There was no relevant data scheduled for release this morning. Tomorrow brings us the first of this week's three releases when the least important of them, December's Goods and Services Trade Balance, will be posted. This report measures the U.S. trade deficit and can affect the value of the U.S. dollar versus other currencies, but it usually does not cause enough movement in bond prices to affect mortgage rates.
If I were considering financing/refinancing a home, I w ould.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
Secretary Geithner Introduces Financial Stability Plan
WASHINGTON (AP) -- Treasury Secretary Timothy Geithner said Tuesday the new administration will wage an aggressive two-front battle against the worst financial crisis in seven decades, while the Federal Reserve announced it was expanding a key lending program to up to $1 trillion.
Here is the text of Treasury Secretary Geithner's Speech....CLICK ON ME TO READ
Here is the text of Treasury Secretary Geithner's Speech....CLICK ON ME TO READ
Monday, February 9, 2009
Daily Rate Lock Advisory
Monday's bond market has opened in negative territory as investors prepare for this week's sales and speeches by President Obama and Fed Chairman Bernanke. The stock markets are showing losses with the Dow down approximately 15 points and the Nasdaq down 3 points. The bond market is currently down 10/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point.
There are only three pieces of economic data scheduled to be posted this week along with a couple of Treasury auctions and relevant speeches from highly important speakers. Only one of the three reports are considered to be of high importance while one is moderately important. The third is not considered to be of much importance unless it varies greatly from forecasts.
None of the economic reports were posted today. However, President Obama will address the nation on national television this evening. He will likely speak about his economic r ecovery plan amongst other important topics. What he says may heavily influence trading tomorrow morning. It is very difficult to predict whether the markets are likely to react favorably to his words or negatively. But I am expecting to see volatility tomorrow morning.
Fed Chairman Bernanke will be speaking before the House Financial Services Committee tomorrow at 1:00 PM ET. He is expected to testify and update the panel on the Fed's liquidity injections and future plans. His words could create movement in the markets and possibly mortgage pricing during afternoon trading.
There is no relevant data scheduled for release until Wednesday morning. This is when the week's least important data, December's Goods and Services Trade Balance, will be posted. This report measures the U.S. trade deficit and can affect the value of the U.S. dollar versus other currencies, but it usually does not cause enough movement in bond prices to affect mortgage rates.
Overall, it is difficult to peg a particular day as the most important of the week. Tomorrow will be quite interesting with the reaction to President Obama's words from tonight and Fed Bernanke's testimony on the Fed's attempts to stabilize the financial system. The single most important piece of economic news comes Thursday, so that day needs to be given much weight also. Throw in the fact that there is an early close Friday due to the President's Day holiday next Monday, and we have the makings of an interesting week ahead of us.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to b e in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
There are only three pieces of economic data scheduled to be posted this week along with a couple of Treasury auctions and relevant speeches from highly important speakers. Only one of the three reports are considered to be of high importance while one is moderately important. The third is not considered to be of much importance unless it varies greatly from forecasts.
None of the economic reports were posted today. However, President Obama will address the nation on national television this evening. He will likely speak about his economic r ecovery plan amongst other important topics. What he says may heavily influence trading tomorrow morning. It is very difficult to predict whether the markets are likely to react favorably to his words or negatively. But I am expecting to see volatility tomorrow morning.
Fed Chairman Bernanke will be speaking before the House Financial Services Committee tomorrow at 1:00 PM ET. He is expected to testify and update the panel on the Fed's liquidity injections and future plans. His words could create movement in the markets and possibly mortgage pricing during afternoon trading.
There is no relevant data scheduled for release until Wednesday morning. This is when the week's least important data, December's Goods and Services Trade Balance, will be posted. This report measures the U.S. trade deficit and can affect the value of the U.S. dollar versus other currencies, but it usually does not cause enough movement in bond prices to affect mortgage rates.
Overall, it is difficult to peg a particular day as the most important of the week. Tomorrow will be quite interesting with the reaction to President Obama's words from tonight and Fed Bernanke's testimony on the Fed's attempts to stabilize the financial system. The single most important piece of economic news comes Thursday, so that day needs to be given much weight also. Throw in the fact that there is an early close Friday due to the President's Day holiday next Monday, and we have the makings of an interesting week ahead of us.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to b e in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
Rates for 30 Year Fixed hit 6 week High
Mortgage rates continued to rise over the past week, raising the cost of borrowing to its highest level since The end of December 2008. Volatility is expected to continue while the debate over the economic stimulus plan continues.
The average 30-year fixed mortgage loan rate rose to 5.70% from 5.48% for the week ended Feb. 4, according to Bankrate.com.
To read the entire article, please visit: http://money.cnn.com/2009/02/05/real_estate/mortgage_rates/index.htm?postversion=2009020513
The average 30-year fixed mortgage loan rate rose to 5.70% from 5.48% for the week ended Feb. 4, according to Bankrate.com.
To read the entire article, please visit: http://money.cnn.com/2009/02/05/real_estate/mortgage_rates/index.htm?postversion=2009020513
Low Mortgage Rate Plan Defeated
Democrats defeat the GOP Mortgage Rate Plan
The Republication plan designed to push mortgage interest rates lower went down in defeat at the hands of the Democrats 62-35 on Friday Feb. 6, 2009.
The plan would have encouraged lenders to reduce Mortgage Rates to 4.0-4.5%.
Fannie Mae and Freddie Mac would have bought these conforming loans on the secondary market.
New York Senator Charles Schumer said the plan was too expensive and that the lenders would benefit from the fees charged for the Refinance Mortgage Loans.
This will not be what the American people will want to hear as many people were holding out looking for the promised rates below 5% as they had been hearing in the media for some time now.
The Republication plan designed to push mortgage interest rates lower went down in defeat at the hands of the Democrats 62-35 on Friday Feb. 6, 2009.
The plan would have encouraged lenders to reduce Mortgage Rates to 4.0-4.5%.
Fannie Mae and Freddie Mac would have bought these conforming loans on the secondary market.
New York Senator Charles Schumer said the plan was too expensive and that the lenders would benefit from the fees charged for the Refinance Mortgage Loans.
This will not be what the American people will want to hear as many people were holding out looking for the promised rates below 5% as they had been hearing in the media for some time now.
Friday, February 6, 2009
Mortgage Rates Update
Friday's bond market has opened in negative territory despite the release of a fairly concerning Employment report. The stock markets are reacting favorably to the news with the Dow up 180 points and the Nasdaq up 30 points. The bond market is currently down 12/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point. The Labor Department reported this morning that the U.S. unemployment rate rose to 7.6% last month. The 0.4% increase was more than expected and indicates that the employment sector is weakening at a faster pace than many had thought. While this is favorable news for bonds and mortgage rates, it gives little hope for the American worker. The report also showed a larger than expected loss of jobs during the month. The 598,000 loss was the worst since December 1974 and brings the last three month total to 1.8 million. That's the worst three month performance since the end of World War II and raises concerns about the rest of 2009. It is becoming more likely that we may set some new records this year that are not exactly worth bragging about. The average earnings portion of the report didn't reveal many surprises at an increase of 0.3%. However, despite this morning's bond favorable data, stocks are reaping the benefits during morning trading. The weaker than expected results in the employment report did not surprise me, but the reaction in bonds was disappointing.Next is pretty light in terms of economic releases, but it does bring us the release of one very important report. There are no relevant reports scheduled for release Monday. Look for more details on next week's events in Sunday's weekly preview.If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
©Mortgage Commentary 2009
Thursday, February 5, 2009
Daily Rate Lock Recommendation
Thursday's bond market has opened in positive territory following the release of favorable economic reports. The stock markets are showing gains with the Dow up 44 points and the Nasdaq up 17 points. The bond market is currently up 15/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.Both of this morning's important releases gave us favorable results. Even weekly unemployment numbers that are not considered highly important came in weaker than expected. The Labor Department said that 626,000 new claims for benefits were filed last week. This was the largest weekly filing since October 1982 and helps support the theory that tomorrow's monthly employment report will show bleak numbers.The two more important reports were December's Factory Orders and 4th Quarter Productivity numbers. The factory orders data showed a larger than expected drop of 3.9% in new orders. This was the fifth consecutive mo nthly decline in orders, which is a first for the report. Analysts were expecting to see a decline of 3.0%, meaning manufacturing activity is slower than thought. In addition, today's report also revised November's decline in orders from 4.6% to 6.5% that is now the largest monthly decline since July 2000.The 4th Quarter Productivity and Costs data was the third piece of news posted this morning. It showed a surprising jump of 3.2% in worker output. This was more than double what analysts had expected, meaning workers were more productive in each hour worked last quarter. This is good news for the bond market and mortgage rates.Tomorrow morning brings us the release of the almighty Employment report. It will give us the unemployment rate, number of jobs lost or added to the economy last month and average hourly earnings. Analysts are expecting it to show that the unemployment rate jumped 0.3% to 7.5% last month while 500,000 jobs were lost. The average earnings reading is expected to show that earnings rose 0.3%. A higher unemployment rate and larger job loss would be considered favorable news for the bond market and mortgage pricing. If we do get favorable results, I would expect to see bonds rally and mortgage rates fall tomorrow.If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
©Mortgage Commentary 2009
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