Mortgage Bonds are starting the week slightly higher, but continue to face tough overhead resistance. Meanwhile, Stocks are attempting to shake off some worries from overseas, including sharp declines in China’s Stock market.
The manufacturing sector measuring Chicago Purchasing Managers Index (PMI) came in right at 50, quite a bit better than last month. A reading above 50 indicates expansion, while a reading below 50 indicates contraction, so this is a fairly positive sign for the beleaguered manufacturing sector.
There are no Treasury auctions scheduled for this week, however, Thursday’s auction announcement regarding next week's supply amount could shake things up.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Monday, August 31, 2009
Mortgage Market Comment
Mortgage Bonds are starting the week slightly higher, but continue to face tough overhead resistance. Meanwhile, Stocks are attempting to shake off some worries from overseas, including sharp declines in China’s Stock market.
The manufacturing sector measuring Chicago Purchasing Managers Index (PMI) came in right at 50, quite a bit better than last month. A reading above 50 indicates expansion, while a reading below 50 indicates contraction, so this is a fairly positive sign for the beleaguered manufacturing sector.
There are no Treasury auctions scheduled for this week, however, Thursday’s auction announcement regarding next week's supply amount could shake things up.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
The manufacturing sector measuring Chicago Purchasing Managers Index (PMI) came in right at 50, quite a bit better than last month. A reading above 50 indicates expansion, while a reading below 50 indicates contraction, so this is a fairly positive sign for the beleaguered manufacturing sector.
There are no Treasury auctions scheduled for this week, however, Thursday’s auction announcement regarding next week's supply amount could shake things up.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Friday, August 28, 2009
Take the sting out of closing costs
Closing costs can take the joy and excitement out of buying a home and turn it into a grueling and upsetting experience. Knowing what costs you'll incur beforehand can eliminate the surprise many people experience when it is time to close on their dream home. Talk to friends and relatives who have gone through the process in order to gain some insight and perspective on what costs you should expect when you are finally ready to close on your new home.
There are two types of fees imposed by lenders, one is actual costs to the lender, and these are difficult to impossible to have changed. Examples of these fees are credit check fee, appraisal fee, title insurance fee, prep fees, and government fees. The second type of closing fee is charged directly by the lender, so there is some potential for negotiation. Examples are loan originating fees, application fees, and underwriting fees. Both loan originating and application fees cover the cost of the lender doing business with you, therefore both fees could be negotiated. Ask your lender to combine both fees and set a discount rate for this combination. By understanding which fees can be negotiated and which can't, you can put your negotiating skills to use where they can make a difference. Having knowledge about what costs to expect at closing will make the process much less of a hurdle to overcome in order to complete one of your most important purchases.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
There are two types of fees imposed by lenders, one is actual costs to the lender, and these are difficult to impossible to have changed. Examples of these fees are credit check fee, appraisal fee, title insurance fee, prep fees, and government fees. The second type of closing fee is charged directly by the lender, so there is some potential for negotiation. Examples are loan originating fees, application fees, and underwriting fees. Both loan originating and application fees cover the cost of the lender doing business with you, therefore both fees could be negotiated. Ask your lender to combine both fees and set a discount rate for this combination. By understanding which fees can be negotiated and which can't, you can put your negotiating skills to use where they can make a difference. Having knowledge about what costs to expect at closing will make the process much less of a hurdle to overcome in order to complete one of your most important purchases.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Take the sting out of closing costs
Closing costs can take the joy and excitement out of buying a home and turn it into a grueling and upsetting experience. Knowing what costs you'll incur beforehand can eliminate the surprise many people experience when it is time to close on their dream home. Talk to friends and relatives who have gone through the process in order to gain some insight and perspective on what costs you should expect when you are finally ready to close on your new home.
There are two types of fees imposed by lenders, one is actual costs to the lender, and these are difficult to impossible to have changed. Examples of these fees are credit check fee, appraisal fee, title insurance fee, prep fees, and government fees. The second type of closing fee is charged directly by the lender, so there is some potential for negotiation. Examples are loan originating fees, application fees, and underwriting fees. Both loan originating and application fees cover the cost of the lender doing business with you, therefore both fees could be negotiated. Ask your lender to combine both fees and set a discount rate for this combination. By understanding which fees can be negotiated and which can't, you can put your negotiating skills to use where they can make a difference. Having knowledge about what costs to expect at closing will make the process much less of a hurdle to overcome in order to complete one of your most important purchases.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
There are two types of fees imposed by lenders, one is actual costs to the lender, and these are difficult to impossible to have changed. Examples of these fees are credit check fee, appraisal fee, title insurance fee, prep fees, and government fees. The second type of closing fee is charged directly by the lender, so there is some potential for negotiation. Examples are loan originating fees, application fees, and underwriting fees. Both loan originating and application fees cover the cost of the lender doing business with you, therefore both fees could be negotiated. Ask your lender to combine both fees and set a discount rate for this combination. By understanding which fees can be negotiated and which can't, you can put your negotiating skills to use where they can make a difference. Having knowledge about what costs to expect at closing will make the process much less of a hurdle to overcome in order to complete one of your most important purchases.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Redecorating on a budget? - Try Craigslist
Redecorating on a budget? - Try Craigslist
Craigslist.org, an online network of urban and suburban communities, is a budget decorator's best friend. Founded in the San Francisco Bay area in 1995, Craigslist's classified ads and forums have grown to 450 cities worldwide. For the decorator or renovator, that means budget gold.
Unlike eBay, Craigslist encourages local transactions to minimize shipping and auction hassles. It's also ideal for snatching up - or getting rid of - something fast. When using eBay, sellers have to deal with fees, receiving payment, and then shipping out the item. When selling something on Craigslist, people come to your door to pick it up, pay cash and then it's gone.
Treasures often turn up under the "free" heading in Craigslist classifieds. Sometimes people want to unload something fast. Others simply misjudge the value of their throw-aways. The main issue with getting these freebies is the ability to haul them away, so while SUV owners may have an edge on cargo space, don't underestimate the room available in a hatchback
While there is often an opportunity to haggle on price with sellers posting on Craigslist, don't miss out on a prize piece if it is priced right. Well-priced items get a lot of responses.
As with any type of purchase, make sure you know what you are buying. Ask the seller questions about the item, get photos, do some research on the item, etc. before making the purchase.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Craigslist.org, an online network of urban and suburban communities, is a budget decorator's best friend. Founded in the San Francisco Bay area in 1995, Craigslist's classified ads and forums have grown to 450 cities worldwide. For the decorator or renovator, that means budget gold.
Unlike eBay, Craigslist encourages local transactions to minimize shipping and auction hassles. It's also ideal for snatching up - or getting rid of - something fast. When using eBay, sellers have to deal with fees, receiving payment, and then shipping out the item. When selling something on Craigslist, people come to your door to pick it up, pay cash and then it's gone.
Treasures often turn up under the "free" heading in Craigslist classifieds. Sometimes people want to unload something fast. Others simply misjudge the value of their throw-aways. The main issue with getting these freebies is the ability to haul them away, so while SUV owners may have an edge on cargo space, don't underestimate the room available in a hatchback
While there is often an opportunity to haggle on price with sellers posting on Craigslist, don't miss out on a prize piece if it is priced right. Well-priced items get a lot of responses.
As with any type of purchase, make sure you know what you are buying. Ask the seller questions about the item, get photos, do some research on the item, etc. before making the purchase.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Redecorating on a budget? - Try Craigslist
Redecorating on a budget? - Try Craigslist
Craigslist.org, an online network of urban and suburban communities, is a budget decorator's best friend. Founded in the San Francisco Bay area in 1995, Craigslist's classified ads and forums have grown to 450 cities worldwide. For the decorator or renovator, that means budget gold.
Unlike eBay, Craigslist encourages local transactions to minimize shipping and auction hassles. It's also ideal for snatching up - or getting rid of - something fast. When using eBay, sellers have to deal with fees, receiving payment, and then shipping out the item. When selling something on Craigslist, people come to your door to pick it up, pay cash and then it's gone.
Treasures often turn up under the "free" heading in Craigslist classifieds. Sometimes people want to unload something fast. Others simply misjudge the value of their throw-aways. The main issue with getting these freebies is the ability to haul them away, so while SUV owners may have an edge on cargo space, don't underestimate the room available in a hatchback
While there is often an opportunity to haggle on price with sellers posting on Craigslist, don't miss out on a prize piece if it is priced right. Well-priced items get a lot of responses.
As with any type of purchase, make sure you know what you are buying. Ask the seller questions about the item, get photos, do some research on the item, etc. before making the purchase.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Craigslist.org, an online network of urban and suburban communities, is a budget decorator's best friend. Founded in the San Francisco Bay area in 1995, Craigslist's classified ads and forums have grown to 450 cities worldwide. For the decorator or renovator, that means budget gold.
Unlike eBay, Craigslist encourages local transactions to minimize shipping and auction hassles. It's also ideal for snatching up - or getting rid of - something fast. When using eBay, sellers have to deal with fees, receiving payment, and then shipping out the item. When selling something on Craigslist, people come to your door to pick it up, pay cash and then it's gone.
Treasures often turn up under the "free" heading in Craigslist classifieds. Sometimes people want to unload something fast. Others simply misjudge the value of their throw-aways. The main issue with getting these freebies is the ability to haul them away, so while SUV owners may have an edge on cargo space, don't underestimate the room available in a hatchback
While there is often an opportunity to haggle on price with sellers posting on Craigslist, don't miss out on a prize piece if it is priced right. Well-priced items get a lot of responses.
As with any type of purchase, make sure you know what you are buying. Ask the seller questions about the item, get photos, do some research on the item, etc. before making the purchase.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Wednesday, August 26, 2009
Mortgage Bond Comment
Mortgage Bonds are trading near unchanged levels today and this comes after yesterday’s late day rally sparked by good results from the 2-year Treasury Note auction.
New Home Sales surged 9.6% in July from June’s reading, signaling that the housing market is stabilizing. Adding to the positive tone of the report was a drop in inventories, which now stands at a 7.5 month supply from last month's 8.8 month reading.
I will continue to recommend Floating for now, but this afternoon the Treasury will auction more government debt and the results may influence pricing.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
New Home Sales surged 9.6% in July from June’s reading, signaling that the housing market is stabilizing. Adding to the positive tone of the report was a drop in inventories, which now stands at a 7.5 month supply from last month's 8.8 month reading.
I will continue to recommend Floating for now, but this afternoon the Treasury will auction more government debt and the results may influence pricing.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Mortgage Bond Comment
Mortgage Bonds are trading near unchanged levels today and this comes after yesterday’s late day rally sparked by good results from the 2-year Treasury Note auction.
New Home Sales surged 9.6% in July from June’s reading, signaling that the housing market is stabilizing. Adding to the positive tone of the report was a drop in inventories, which now stands at a 7.5 month supply from last month's 8.8 month reading.
I will continue to recommend Floating for now, but this afternoon the Treasury will auction more government debt and the results may influence pricing.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
New Home Sales surged 9.6% in July from June’s reading, signaling that the housing market is stabilizing. Adding to the positive tone of the report was a drop in inventories, which now stands at a 7.5 month supply from last month's 8.8 month reading.
I will continue to recommend Floating for now, but this afternoon the Treasury will auction more government debt and the results may influence pricing.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Monday, August 24, 2009
Mortgage Bond Trend
Mortgage Bonds are still facing some tough overhead resistance this morning after failing to break above a key level on Friday. In the absence of Bond friendly news or a Stock market decline, pricing could continue to worsen before improving.
There are no economic reports due for release today, but the rest of the week's reports will give investors a broad view of the economy. In addition, the Treasury Department is going to auction off $109 Billion in Securities on Tuesday, Wednesday and Thursday, which could move the market.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgae.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
There are no economic reports due for release today, but the rest of the week's reports will give investors a broad view of the economy. In addition, the Treasury Department is going to auction off $109 Billion in Securities on Tuesday, Wednesday and Thursday, which could move the market.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgae.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Mortgage Bond Trend
Mortgage Bonds are still facing some tough overhead resistance this morning after failing to break above a key level on Friday. In the absence of Bond friendly news or a Stock market decline, pricing could continue to worsen before improving.
There are no economic reports due for release today, but the rest of the week's reports will give investors a broad view of the economy. In addition, the Treasury Department is going to auction off $109 Billion in Securities on Tuesday, Wednesday and Thursday, which could move the market.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgae.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
There are no economic reports due for release today, but the rest of the week's reports will give investors a broad view of the economy. In addition, the Treasury Department is going to auction off $109 Billion in Securities on Tuesday, Wednesday and Thursday, which could move the market.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgae.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Friday, August 21, 2009
Lock Rates
Mortgage Bonds are headed lower this morning, after touching a very strong ceiling of resistance at their 100-Day Moving Average.
Pressuring Mortgage Bonds lower was news that Existing Home Sales came in better than expectations. Additionally, the inventory of unsold homes remained lofty, but was reported at its best level in a year. Overall, the housing market continues to show signs of stabilization.
Currently, Bond prices continue to struggle at the 100-Day Moving Average. Therefore, I recommend locking. I will continue to monitor the day's news and keep you informed of any major developments.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Pressuring Mortgage Bonds lower was news that Existing Home Sales came in better than expectations. Additionally, the inventory of unsold homes remained lofty, but was reported at its best level in a year. Overall, the housing market continues to show signs of stabilization.
Currently, Bond prices continue to struggle at the 100-Day Moving Average. Therefore, I recommend locking. I will continue to monitor the day's news and keep you informed of any major developments.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Lock Rates
Mortgage Bonds are headed lower this morning, after touching a very strong ceiling of resistance at their 100-Day Moving Average.
Pressuring Mortgage Bonds lower was news that Existing Home Sales came in better than expectations. Additionally, the inventory of unsold homes remained lofty, but was reported at its best level in a year. Overall, the housing market continues to show signs of stabilization.
Currently, Bond prices continue to struggle at the 100-Day Moving Average. Therefore, I recommend locking. I will continue to monitor the day's news and keep you informed of any major developments.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Pressuring Mortgage Bonds lower was news that Existing Home Sales came in better than expectations. Additionally, the inventory of unsold homes remained lofty, but was reported at its best level in a year. Overall, the housing market continues to show signs of stabilization.
Currently, Bond prices continue to struggle at the 100-Day Moving Average. Therefore, I recommend locking. I will continue to monitor the day's news and keep you informed of any major developments.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Thursday, August 20, 2009
World’s Most Expensive Streets Fall in Value
World’s Most Expensive Streets Fall in Value
Times are tough in Monaco.
According to the Wealth Bulletin’s latest list of the World’s Expensive Streets, prices on Avenue Princesse Grace (still the priciest street in the world) have plunged by more than a third. One square meter of prime space now costs the equivalent of a mere $11,152 a square foot-down from $17,657 last year.
The overall value of prime residential property on the 10 most expensive streets in the world fell 12% in the past year, the survey found, with European streets faring better than those in the U.S. and in emerging markets. The overall markets in the U.S. and London have fallen 20% or more. Here is the Bulletin’s list of the Most Expensive Streets. Caveat emptor, it is developed with luxury Realtors.
1 Avenue Princesse Grace, Monaco, $11,152 a square foot
2 Chemin de Saint-Hospice, Cap Ferrat, South of France, $9,293 a square foot
3 Fifth Avenue, New York, $6,691 a square foot
4 Kensington Palace Gardens, London, $6,040 a square foot
5 Avenue Montaigne, Paris, $5,018 a square foot
6 Via Suvretta, St Moritz, Switzerland, $4,182 a square foot
7 Via Romazzino, Porto Cervo, Sardinia,$3,903 a square foot
8 Severn Road, The Peak, Hong Kong, $3,717 a square foot
9 Ostozhenka Street, Moscow, $3,252 a square foot
10 Wolseley Road, Point Piper, Australia, $2,602 a square foot
How much have prices fallen on your street?
http://blogs.wsj.com/wealth/2009/08/11/worlds-most-expensive-streets-fall-in-value/
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Times are tough in Monaco.
According to the Wealth Bulletin’s latest list of the World’s Expensive Streets, prices on Avenue Princesse Grace (still the priciest street in the world) have plunged by more than a third. One square meter of prime space now costs the equivalent of a mere $11,152 a square foot-down from $17,657 last year.
The overall value of prime residential property on the 10 most expensive streets in the world fell 12% in the past year, the survey found, with European streets faring better than those in the U.S. and in emerging markets. The overall markets in the U.S. and London have fallen 20% or more. Here is the Bulletin’s list of the Most Expensive Streets. Caveat emptor, it is developed with luxury Realtors.
1 Avenue Princesse Grace, Monaco, $11,152 a square foot
2 Chemin de Saint-Hospice, Cap Ferrat, South of France, $9,293 a square foot
3 Fifth Avenue, New York, $6,691 a square foot
4 Kensington Palace Gardens, London, $6,040 a square foot
5 Avenue Montaigne, Paris, $5,018 a square foot
6 Via Suvretta, St Moritz, Switzerland, $4,182 a square foot
7 Via Romazzino, Porto Cervo, Sardinia,$3,903 a square foot
8 Severn Road, The Peak, Hong Kong, $3,717 a square foot
9 Ostozhenka Street, Moscow, $3,252 a square foot
10 Wolseley Road, Point Piper, Australia, $2,602 a square foot
How much have prices fallen on your street?
http://blogs.wsj.com/wealth/2009/08/11/worlds-most-expensive-streets-fall-in-value/
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
World’s Most Expensive Streets Fall in Value
World’s Most Expensive Streets Fall in Value
Times are tough in Monaco.
According to the Wealth Bulletin’s latest list of the World’s Expensive Streets, prices on Avenue Princesse Grace (still the priciest street in the world) have plunged by more than a third. One square meter of prime space now costs the equivalent of a mere $11,152 a square foot-down from $17,657 last year.
The overall value of prime residential property on the 10 most expensive streets in the world fell 12% in the past year, the survey found, with European streets faring better than those in the U.S. and in emerging markets. The overall markets in the U.S. and London have fallen 20% or more. Here is the Bulletin’s list of the Most Expensive Streets. Caveat emptor, it is developed with luxury Realtors.
1 Avenue Princesse Grace, Monaco, $11,152 a square foot
2 Chemin de Saint-Hospice, Cap Ferrat, South of France, $9,293 a square foot
3 Fifth Avenue, New York, $6,691 a square foot
4 Kensington Palace Gardens, London, $6,040 a square foot
5 Avenue Montaigne, Paris, $5,018 a square foot
6 Via Suvretta, St Moritz, Switzerland, $4,182 a square foot
7 Via Romazzino, Porto Cervo, Sardinia,$3,903 a square foot
8 Severn Road, The Peak, Hong Kong, $3,717 a square foot
9 Ostozhenka Street, Moscow, $3,252 a square foot
10 Wolseley Road, Point Piper, Australia, $2,602 a square foot
How much have prices fallen on your street?
http://blogs.wsj.com/wealth/2009/08/11/worlds-most-expensive-streets-fall-in-value/
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Times are tough in Monaco.
According to the Wealth Bulletin’s latest list of the World’s Expensive Streets, prices on Avenue Princesse Grace (still the priciest street in the world) have plunged by more than a third. One square meter of prime space now costs the equivalent of a mere $11,152 a square foot-down from $17,657 last year.
The overall value of prime residential property on the 10 most expensive streets in the world fell 12% in the past year, the survey found, with European streets faring better than those in the U.S. and in emerging markets. The overall markets in the U.S. and London have fallen 20% or more. Here is the Bulletin’s list of the Most Expensive Streets. Caveat emptor, it is developed with luxury Realtors.
1 Avenue Princesse Grace, Monaco, $11,152 a square foot
2 Chemin de Saint-Hospice, Cap Ferrat, South of France, $9,293 a square foot
3 Fifth Avenue, New York, $6,691 a square foot
4 Kensington Palace Gardens, London, $6,040 a square foot
5 Avenue Montaigne, Paris, $5,018 a square foot
6 Via Suvretta, St Moritz, Switzerland, $4,182 a square foot
7 Via Romazzino, Porto Cervo, Sardinia,$3,903 a square foot
8 Severn Road, The Peak, Hong Kong, $3,717 a square foot
9 Ostozhenka Street, Moscow, $3,252 a square foot
10 Wolseley Road, Point Piper, Australia, $2,602 a square foot
How much have prices fallen on your street?
http://blogs.wsj.com/wealth/2009/08/11/worlds-most-expensive-streets-fall-in-value/
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Does Foreclosure Cause Depression?
Foreclosure Epidemic Spawns Depression
A sobering new study finds that nearly half of people undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression.
Many also reported an inability to afford prescription drugs, and skipping meals.
The authors say their findings should serve as a call for policy makers to tie health interventions into their response to the nation’s ongoing housing crisis.
“The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn.
“We need to do more to ensure that if people lose their homes, they don’t also lose their health.”
In addition to the high number of participants reporting depression symptoms, the study of 250 Philadelphia homeowners undergoing foreclosure also shed light on other health care problems that may be spurred by difficulties keeping up with housing costs.
The study participants were recruited with the Consumer Credit Counseling Service of Delaware Valley, a non-profit, U.S. Housing and Urban Development-approved mortgage counselor.
The authors found that compared to a sample of residents in the general public, those in foreclosure were more likely to be uninsured (22 percent compared to 8 percent), though similar health problems were seen among both the insured and uninsured.
Nearly 60 percent reported that they had skipped or delayed meals because they couldn’t afford food, and people undergoing foreclosure were also more likely (48 percent vs. 15 percent) to have forgone filling a prescription during the preceding year because of the expense .
The study also revealed that for 9 percent of respondents, a medical condition in their family was the primary reason for the home foreclosure, and more than a quarter of those surveyed said they had significant unpaid medical bills.
Because the financial hardships of foreclosure may lead homeowners to cut back on health care spending that they consider “discretionary” – preventive care visits, healthy foods or drugs for chronic conditions like hypertension – Pollack theorizes that the prolonged period of time that most homeowners spend in foreclosure could have a serious effect on health outcomes.
In addition, the stress of undergoing foreclosure may exacerbate health-undermining behaviors. Among the participants who smoke, for instance, 65 percent said they had been smoking more since they received notice of foreclosure.
The “exceptionally high” rate of depressive symptoms found in the study is especially concerning, Pollack says, compared to previous research showing that only about 12.8 percent of people living in poverty meet criteria for major depressive disorder.
“When people purchase homes, they are buying a piece of the American Dream,” says co-author Julia Lynch, PhD, the Janice and Julian Bers Assistant Professor in the Social Sciences in Penn’s department of political science.
“Losing a home can be especially devastating because it means the loss of this dream. When this happens, there is reason to worry not only about the health of the home owner but also that of family members and the broader community they live in.”
The authors say that the data collected in Philadelphia may be only the tip of the iceberg when compared to other cities that have experienced a sharp spike in housing foreclosures. Although foreclosure filings nearly doubled between 2007 and 2008 in Philadelphia, other large cities have higher unemployment and foreclosure rates.
To combat the health problems revealed in the study, Pollack and Lynch suggest that health care workers and mortgage counseling agencies coordinate their efforts to help people at risk of foreclosure access both medical and housing help.
Doctors, they suggest, should ask their patients about their housing situation and steer them toward mortgage relief resources. Mortgage counselors, meanwhile, can provide information about how to access safety net health care, enroll in public insurance programs like SCHIP or Medicaid, or apply for nutritional assistance programs for pregnant and nursing mothers and their children. The implications for policy, too, are vast.
“This study raises the stakes of the housing crisis,” Pollack says.
“The policy push to get people into mortgage counseling should be combined with health outreach in order to fully help people during this tremendously difficult period in their lives.”
The University of Pennsylvania School of Medicine research is published online in the American Journal of Public Health.
Source: University of Pennsylvania School of Medicine
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
A sobering new study finds that nearly half of people undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression.
Many also reported an inability to afford prescription drugs, and skipping meals.
The authors say their findings should serve as a call for policy makers to tie health interventions into their response to the nation’s ongoing housing crisis.
“The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn.
“We need to do more to ensure that if people lose their homes, they don’t also lose their health.”
In addition to the high number of participants reporting depression symptoms, the study of 250 Philadelphia homeowners undergoing foreclosure also shed light on other health care problems that may be spurred by difficulties keeping up with housing costs.
The study participants were recruited with the Consumer Credit Counseling Service of Delaware Valley, a non-profit, U.S. Housing and Urban Development-approved mortgage counselor.
The authors found that compared to a sample of residents in the general public, those in foreclosure were more likely to be uninsured (22 percent compared to 8 percent), though similar health problems were seen among both the insured and uninsured.
Nearly 60 percent reported that they had skipped or delayed meals because they couldn’t afford food, and people undergoing foreclosure were also more likely (48 percent vs. 15 percent) to have forgone filling a prescription during the preceding year because of the expense .
The study also revealed that for 9 percent of respondents, a medical condition in their family was the primary reason for the home foreclosure, and more than a quarter of those surveyed said they had significant unpaid medical bills.
Because the financial hardships of foreclosure may lead homeowners to cut back on health care spending that they consider “discretionary” – preventive care visits, healthy foods or drugs for chronic conditions like hypertension – Pollack theorizes that the prolonged period of time that most homeowners spend in foreclosure could have a serious effect on health outcomes.
In addition, the stress of undergoing foreclosure may exacerbate health-undermining behaviors. Among the participants who smoke, for instance, 65 percent said they had been smoking more since they received notice of foreclosure.
The “exceptionally high” rate of depressive symptoms found in the study is especially concerning, Pollack says, compared to previous research showing that only about 12.8 percent of people living in poverty meet criteria for major depressive disorder.
“When people purchase homes, they are buying a piece of the American Dream,” says co-author Julia Lynch, PhD, the Janice and Julian Bers Assistant Professor in the Social Sciences in Penn’s department of political science.
“Losing a home can be especially devastating because it means the loss of this dream. When this happens, there is reason to worry not only about the health of the home owner but also that of family members and the broader community they live in.”
The authors say that the data collected in Philadelphia may be only the tip of the iceberg when compared to other cities that have experienced a sharp spike in housing foreclosures. Although foreclosure filings nearly doubled between 2007 and 2008 in Philadelphia, other large cities have higher unemployment and foreclosure rates.
To combat the health problems revealed in the study, Pollack and Lynch suggest that health care workers and mortgage counseling agencies coordinate their efforts to help people at risk of foreclosure access both medical and housing help.
Doctors, they suggest, should ask their patients about their housing situation and steer them toward mortgage relief resources. Mortgage counselors, meanwhile, can provide information about how to access safety net health care, enroll in public insurance programs like SCHIP or Medicaid, or apply for nutritional assistance programs for pregnant and nursing mothers and their children. The implications for policy, too, are vast.
“This study raises the stakes of the housing crisis,” Pollack says.
“The policy push to get people into mortgage counseling should be combined with health outreach in order to fully help people during this tremendously difficult period in their lives.”
The University of Pennsylvania School of Medicine research is published online in the American Journal of Public Health.
Source: University of Pennsylvania School of Medicine
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Does Foreclosure Cause Depression?
Foreclosure Epidemic Spawns Depression
A sobering new study finds that nearly half of people undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression.
Many also reported an inability to afford prescription drugs, and skipping meals.
The authors say their findings should serve as a call for policy makers to tie health interventions into their response to the nation’s ongoing housing crisis.
“The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn.
“We need to do more to ensure that if people lose their homes, they don’t also lose their health.”
In addition to the high number of participants reporting depression symptoms, the study of 250 Philadelphia homeowners undergoing foreclosure also shed light on other health care problems that may be spurred by difficulties keeping up with housing costs.
The study participants were recruited with the Consumer Credit Counseling Service of Delaware Valley, a non-profit, U.S. Housing and Urban Development-approved mortgage counselor.
The authors found that compared to a sample of residents in the general public, those in foreclosure were more likely to be uninsured (22 percent compared to 8 percent), though similar health problems were seen among both the insured and uninsured.
Nearly 60 percent reported that they had skipped or delayed meals because they couldn’t afford food, and people undergoing foreclosure were also more likely (48 percent vs. 15 percent) to have forgone filling a prescription during the preceding year because of the expense .
The study also revealed that for 9 percent of respondents, a medical condition in their family was the primary reason for the home foreclosure, and more than a quarter of those surveyed said they had significant unpaid medical bills.
Because the financial hardships of foreclosure may lead homeowners to cut back on health care spending that they consider “discretionary” – preventive care visits, healthy foods or drugs for chronic conditions like hypertension – Pollack theorizes that the prolonged period of time that most homeowners spend in foreclosure could have a serious effect on health outcomes.
In addition, the stress of undergoing foreclosure may exacerbate health-undermining behaviors. Among the participants who smoke, for instance, 65 percent said they had been smoking more since they received notice of foreclosure.
The “exceptionally high” rate of depressive symptoms found in the study is especially concerning, Pollack says, compared to previous research showing that only about 12.8 percent of people living in poverty meet criteria for major depressive disorder.
“When people purchase homes, they are buying a piece of the American Dream,” says co-author Julia Lynch, PhD, the Janice and Julian Bers Assistant Professor in the Social Sciences in Penn’s department of political science.
“Losing a home can be especially devastating because it means the loss of this dream. When this happens, there is reason to worry not only about the health of the home owner but also that of family members and the broader community they live in.”
The authors say that the data collected in Philadelphia may be only the tip of the iceberg when compared to other cities that have experienced a sharp spike in housing foreclosures. Although foreclosure filings nearly doubled between 2007 and 2008 in Philadelphia, other large cities have higher unemployment and foreclosure rates.
To combat the health problems revealed in the study, Pollack and Lynch suggest that health care workers and mortgage counseling agencies coordinate their efforts to help people at risk of foreclosure access both medical and housing help.
Doctors, they suggest, should ask their patients about their housing situation and steer them toward mortgage relief resources. Mortgage counselors, meanwhile, can provide information about how to access safety net health care, enroll in public insurance programs like SCHIP or Medicaid, or apply for nutritional assistance programs for pregnant and nursing mothers and their children. The implications for policy, too, are vast.
“This study raises the stakes of the housing crisis,” Pollack says.
“The policy push to get people into mortgage counseling should be combined with health outreach in order to fully help people during this tremendously difficult period in their lives.”
The University of Pennsylvania School of Medicine research is published online in the American Journal of Public Health.
Source: University of Pennsylvania School of Medicine
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
A sobering new study finds that nearly half of people undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression.
Many also reported an inability to afford prescription drugs, and skipping meals.
The authors say their findings should serve as a call for policy makers to tie health interventions into their response to the nation’s ongoing housing crisis.
“The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn.
“We need to do more to ensure that if people lose their homes, they don’t also lose their health.”
In addition to the high number of participants reporting depression symptoms, the study of 250 Philadelphia homeowners undergoing foreclosure also shed light on other health care problems that may be spurred by difficulties keeping up with housing costs.
The study participants were recruited with the Consumer Credit Counseling Service of Delaware Valley, a non-profit, U.S. Housing and Urban Development-approved mortgage counselor.
The authors found that compared to a sample of residents in the general public, those in foreclosure were more likely to be uninsured (22 percent compared to 8 percent), though similar health problems were seen among both the insured and uninsured.
Nearly 60 percent reported that they had skipped or delayed meals because they couldn’t afford food, and people undergoing foreclosure were also more likely (48 percent vs. 15 percent) to have forgone filling a prescription during the preceding year because of the expense .
The study also revealed that for 9 percent of respondents, a medical condition in their family was the primary reason for the home foreclosure, and more than a quarter of those surveyed said they had significant unpaid medical bills.
Because the financial hardships of foreclosure may lead homeowners to cut back on health care spending that they consider “discretionary” – preventive care visits, healthy foods or drugs for chronic conditions like hypertension – Pollack theorizes that the prolonged period of time that most homeowners spend in foreclosure could have a serious effect on health outcomes.
In addition, the stress of undergoing foreclosure may exacerbate health-undermining behaviors. Among the participants who smoke, for instance, 65 percent said they had been smoking more since they received notice of foreclosure.
The “exceptionally high” rate of depressive symptoms found in the study is especially concerning, Pollack says, compared to previous research showing that only about 12.8 percent of people living in poverty meet criteria for major depressive disorder.
“When people purchase homes, they are buying a piece of the American Dream,” says co-author Julia Lynch, PhD, the Janice and Julian Bers Assistant Professor in the Social Sciences in Penn’s department of political science.
“Losing a home can be especially devastating because it means the loss of this dream. When this happens, there is reason to worry not only about the health of the home owner but also that of family members and the broader community they live in.”
The authors say that the data collected in Philadelphia may be only the tip of the iceberg when compared to other cities that have experienced a sharp spike in housing foreclosures. Although foreclosure filings nearly doubled between 2007 and 2008 in Philadelphia, other large cities have higher unemployment and foreclosure rates.
To combat the health problems revealed in the study, Pollack and Lynch suggest that health care workers and mortgage counseling agencies coordinate their efforts to help people at risk of foreclosure access both medical and housing help.
Doctors, they suggest, should ask their patients about their housing situation and steer them toward mortgage relief resources. Mortgage counselors, meanwhile, can provide information about how to access safety net health care, enroll in public insurance programs like SCHIP or Medicaid, or apply for nutritional assistance programs for pregnant and nursing mothers and their children. The implications for policy, too, are vast.
“This study raises the stakes of the housing crisis,” Pollack says.
“The policy push to get people into mortgage counseling should be combined with health outreach in order to fully help people during this tremendously difficult period in their lives.”
The University of Pennsylvania School of Medicine research is published online in the American Journal of Public Health.
Source: University of Pennsylvania School of Medicine
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
81% of America thinks their house will not lose value in the next 6 months!!!!!
Homeowners still don't get it. 81% of America thinks their house will not lose value in the next 6 months!!!!!
A new report from Zillow.com finds that 60 percent of homeowners surveyed believe their home lost value in the past twelve months. In reality, 83 percent of all homes lost value. Owners in the South were the most deluded and those in the West, understandably, were the least. And to make matters worse, 81 percent of all homeowners surveyed actually believe their home value will not fall over the next six months; this as foreclosure numbers rise and all of the action in the housing market continues on the lowest of the low end. I have not found one expert (and I know I will as soon as I write this) who claims that home prices have hit bottom. Sales, perhaps, but not prices.
http://www.cnbc.com/id/32461957
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
A new report from Zillow.com finds that 60 percent of homeowners surveyed believe their home lost value in the past twelve months. In reality, 83 percent of all homes lost value. Owners in the South were the most deluded and those in the West, understandably, were the least. And to make matters worse, 81 percent of all homeowners surveyed actually believe their home value will not fall over the next six months; this as foreclosure numbers rise and all of the action in the housing market continues on the lowest of the low end. I have not found one expert (and I know I will as soon as I write this) who claims that home prices have hit bottom. Sales, perhaps, but not prices.
http://www.cnbc.com/id/32461957
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
81% of America thinks their house will not lose value in the next 6 months!!!!!
Homeowners still don't get it. 81% of America thinks their house will not lose value in the next 6 months!!!!!
A new report from Zillow.com finds that 60 percent of homeowners surveyed believe their home lost value in the past twelve months. In reality, 83 percent of all homes lost value. Owners in the South were the most deluded and those in the West, understandably, were the least. And to make matters worse, 81 percent of all homeowners surveyed actually believe their home value will not fall over the next six months; this as foreclosure numbers rise and all of the action in the housing market continues on the lowest of the low end. I have not found one expert (and I know I will as soon as I write this) who claims that home prices have hit bottom. Sales, perhaps, but not prices.
http://www.cnbc.com/id/32461957
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
A new report from Zillow.com finds that 60 percent of homeowners surveyed believe their home lost value in the past twelve months. In reality, 83 percent of all homes lost value. Owners in the South were the most deluded and those in the West, understandably, were the least. And to make matters worse, 81 percent of all homeowners surveyed actually believe their home value will not fall over the next six months; this as foreclosure numbers rise and all of the action in the housing market continues on the lowest of the low end. I have not found one expert (and I know I will as soon as I write this) who claims that home prices have hit bottom. Sales, perhaps, but not prices.
http://www.cnbc.com/id/32461957
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Tuesday, August 18, 2009
New Home Construction Declines in July
New home construction unexpectedly declined last month - Do we really think the experts know what they are talking about?
New Home Construction Unexpectedly Declines in July
By Renae Merle
Washington Post Staff Writer
Tuesday, August 18, 2009 11:51 AM
New-home construction unexpectedly declined last month, despite continued improvement in the market for single-family homes, according to government data released Tuesday.
Housing starts fell by 1 percent from June's level, to an annualized rate of 581,000. compared with June Construction was down 37.7 percent from a year earlier, according to the Commerce Department data. Analysts had expected construction starts to increase.
But those figures were dragged down by a 16.7 percent month-to-month drop in construction of multi-unit homes like apartment buildings, traditionally a volatile market. This market continues to be hobbled by the difficultly in securing financing and competition from homeowners unable to sell their properties who then decide to rent their homes, said David Crowe, an economist for the National Association of Home Builders.
Meanwhile, construction of single-family homes rose 1.7 percent compared with June, to an annual pace of 490,000 units. That is the fifth consecutive monthly increase in the single-family market. In another hopeful sign for that market, while construction permits were down overall, they rose 5.8 percent for single-family homes.
The housing market has been buoyed by falling home prices and an $8,000 first-time-buyer tax credit, analysts said. The uptick in permits, for example, reflects growing confidence among builders that the overall market is improving, Crowe said. "That kind of increase suggests that some momentum for the rest of the market is beginning," he said.
The Northeast had the biggest increase in single-family-home construction, 14 percent, while single-family starts were up modestly in the West and down in the Midwest. In the South, which includes the Washington region, construction was flat, up 0.8 percent.
"Construction activity remains low, historically speaking. But evidence continues to mount that the worst of the declines for this cycle are behind us," Mike Larson, real estate analyst at Weiss Research, said in a research note. "Still, that doesn't mean we're going to see a huge resurgence in construction. After all, buyers still have plenty of homes to choose from, and distressed and foreclosed properties will continue to flood the market well into 2010."
Separately, the Producer Price Index -- the prices paid by business to make goods -- was down .9 in July, compared to an increase of 1.8 percent in June, the Labor Department said. Factoring out the volatile food and energy prices, core PPI was down .1 for July.
Producer prices was down a whopping 6.8 percent over the past year, which is worrisome. It marked the biggest decrease in more than 60 years of record-keeping.
Staff writer Frank Ahrens contributed to this report.
http://www.washingtonpost.com/wp-dyn/content/article/2009/08/18/AR2009081801537_pf.html
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
New Home Construction Unexpectedly Declines in July
By Renae Merle
Washington Post Staff Writer
Tuesday, August 18, 2009 11:51 AM
New-home construction unexpectedly declined last month, despite continued improvement in the market for single-family homes, according to government data released Tuesday.
Housing starts fell by 1 percent from June's level, to an annualized rate of 581,000. compared with June Construction was down 37.7 percent from a year earlier, according to the Commerce Department data. Analysts had expected construction starts to increase.
But those figures were dragged down by a 16.7 percent month-to-month drop in construction of multi-unit homes like apartment buildings, traditionally a volatile market. This market continues to be hobbled by the difficultly in securing financing and competition from homeowners unable to sell their properties who then decide to rent their homes, said David Crowe, an economist for the National Association of Home Builders.
Meanwhile, construction of single-family homes rose 1.7 percent compared with June, to an annual pace of 490,000 units. That is the fifth consecutive monthly increase in the single-family market. In another hopeful sign for that market, while construction permits were down overall, they rose 5.8 percent for single-family homes.
The housing market has been buoyed by falling home prices and an $8,000 first-time-buyer tax credit, analysts said. The uptick in permits, for example, reflects growing confidence among builders that the overall market is improving, Crowe said. "That kind of increase suggests that some momentum for the rest of the market is beginning," he said.
The Northeast had the biggest increase in single-family-home construction, 14 percent, while single-family starts were up modestly in the West and down in the Midwest. In the South, which includes the Washington region, construction was flat, up 0.8 percent.
"Construction activity remains low, historically speaking. But evidence continues to mount that the worst of the declines for this cycle are behind us," Mike Larson, real estate analyst at Weiss Research, said in a research note. "Still, that doesn't mean we're going to see a huge resurgence in construction. After all, buyers still have plenty of homes to choose from, and distressed and foreclosed properties will continue to flood the market well into 2010."
Separately, the Producer Price Index -- the prices paid by business to make goods -- was down .9 in July, compared to an increase of 1.8 percent in June, the Labor Department said. Factoring out the volatile food and energy prices, core PPI was down .1 for July.
Producer prices was down a whopping 6.8 percent over the past year, which is worrisome. It marked the biggest decrease in more than 60 years of record-keeping.
Staff writer Frank Ahrens contributed to this report.
http://www.washingtonpost.com/wp-dyn/content/article/2009/08/18/AR2009081801537_pf.html
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
New Home Construction Declines in July
New home construction unexpectedly declined last month - Do we really think the experts know what they are talking about?
New Home Construction Unexpectedly Declines in July
By Renae Merle
Washington Post Staff Writer
Tuesday, August 18, 2009 11:51 AM
New-home construction unexpectedly declined last month, despite continued improvement in the market for single-family homes, according to government data released Tuesday.
Housing starts fell by 1 percent from June's level, to an annualized rate of 581,000. compared with June Construction was down 37.7 percent from a year earlier, according to the Commerce Department data. Analysts had expected construction starts to increase.
But those figures were dragged down by a 16.7 percent month-to-month drop in construction of multi-unit homes like apartment buildings, traditionally a volatile market. This market continues to be hobbled by the difficultly in securing financing and competition from homeowners unable to sell their properties who then decide to rent their homes, said David Crowe, an economist for the National Association of Home Builders.
Meanwhile, construction of single-family homes rose 1.7 percent compared with June, to an annual pace of 490,000 units. That is the fifth consecutive monthly increase in the single-family market. In another hopeful sign for that market, while construction permits were down overall, they rose 5.8 percent for single-family homes.
The housing market has been buoyed by falling home prices and an $8,000 first-time-buyer tax credit, analysts said. The uptick in permits, for example, reflects growing confidence among builders that the overall market is improving, Crowe said. "That kind of increase suggests that some momentum for the rest of the market is beginning," he said.
The Northeast had the biggest increase in single-family-home construction, 14 percent, while single-family starts were up modestly in the West and down in the Midwest. In the South, which includes the Washington region, construction was flat, up 0.8 percent.
"Construction activity remains low, historically speaking. But evidence continues to mount that the worst of the declines for this cycle are behind us," Mike Larson, real estate analyst at Weiss Research, said in a research note. "Still, that doesn't mean we're going to see a huge resurgence in construction. After all, buyers still have plenty of homes to choose from, and distressed and foreclosed properties will continue to flood the market well into 2010."
Separately, the Producer Price Index -- the prices paid by business to make goods -- was down .9 in July, compared to an increase of 1.8 percent in June, the Labor Department said. Factoring out the volatile food and energy prices, core PPI was down .1 for July.
Producer prices was down a whopping 6.8 percent over the past year, which is worrisome. It marked the biggest decrease in more than 60 years of record-keeping.
Staff writer Frank Ahrens contributed to this report.
http://www.washingtonpost.com/wp-dyn/content/article/2009/08/18/AR2009081801537_pf.html
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
New Home Construction Unexpectedly Declines in July
By Renae Merle
Washington Post Staff Writer
Tuesday, August 18, 2009 11:51 AM
New-home construction unexpectedly declined last month, despite continued improvement in the market for single-family homes, according to government data released Tuesday.
Housing starts fell by 1 percent from June's level, to an annualized rate of 581,000. compared with June Construction was down 37.7 percent from a year earlier, according to the Commerce Department data. Analysts had expected construction starts to increase.
But those figures were dragged down by a 16.7 percent month-to-month drop in construction of multi-unit homes like apartment buildings, traditionally a volatile market. This market continues to be hobbled by the difficultly in securing financing and competition from homeowners unable to sell their properties who then decide to rent their homes, said David Crowe, an economist for the National Association of Home Builders.
Meanwhile, construction of single-family homes rose 1.7 percent compared with June, to an annual pace of 490,000 units. That is the fifth consecutive monthly increase in the single-family market. In another hopeful sign for that market, while construction permits were down overall, they rose 5.8 percent for single-family homes.
The housing market has been buoyed by falling home prices and an $8,000 first-time-buyer tax credit, analysts said. The uptick in permits, for example, reflects growing confidence among builders that the overall market is improving, Crowe said. "That kind of increase suggests that some momentum for the rest of the market is beginning," he said.
The Northeast had the biggest increase in single-family-home construction, 14 percent, while single-family starts were up modestly in the West and down in the Midwest. In the South, which includes the Washington region, construction was flat, up 0.8 percent.
"Construction activity remains low, historically speaking. But evidence continues to mount that the worst of the declines for this cycle are behind us," Mike Larson, real estate analyst at Weiss Research, said in a research note. "Still, that doesn't mean we're going to see a huge resurgence in construction. After all, buyers still have plenty of homes to choose from, and distressed and foreclosed properties will continue to flood the market well into 2010."
Separately, the Producer Price Index -- the prices paid by business to make goods -- was down .9 in July, compared to an increase of 1.8 percent in June, the Labor Department said. Factoring out the volatile food and energy prices, core PPI was down .1 for July.
Producer prices was down a whopping 6.8 percent over the past year, which is worrisome. It marked the biggest decrease in more than 60 years of record-keeping.
Staff writer Frank Ahrens contributed to this report.
http://www.washingtonpost.com/wp-dyn/content/article/2009/08/18/AR2009081801537_pf.html
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
New Condo Regulations starting in October
New Condo Regulations starting in October:
Per Mortgagee Letter 2009-19, FHA is implementing numerous Condo
changes effective with case numbers on or after October 1st. The major changes include:
• No more ‘Spot’ Approvals will be allowed
• FHA will be limiting themselves to 30% concentration in a project
• 50% owner occupancy requirement (previously 51%)
o Valid presales (for owner occupancy requirement) will require executed sales
agreement AND evidence that a lender is willing to make a loan
• FHA condo approvals will expire after two years
FHA is expected to issue follow up guidance in regards to their system (FHA Connection) and how it will adapt to the new Mortgagee Letter requirements, so we will keep you posted on any future developments.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Per Mortgagee Letter 2009-19, FHA is implementing numerous Condo
changes effective with case numbers on or after October 1st. The major changes include:
• No more ‘Spot’ Approvals will be allowed
• FHA will be limiting themselves to 30% concentration in a project
• 50% owner occupancy requirement (previously 51%)
o Valid presales (for owner occupancy requirement) will require executed sales
agreement AND evidence that a lender is willing to make a loan
• FHA condo approvals will expire after two years
FHA is expected to issue follow up guidance in regards to their system (FHA Connection) and how it will adapt to the new Mortgagee Letter requirements, so we will keep you posted on any future developments.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
New Condo Regulations starting in October
New Condo Regulations starting in October:
Per Mortgagee Letter 2009-19, FHA is implementing numerous Condo
changes effective with case numbers on or after October 1st. The major changes include:
• No more ‘Spot’ Approvals will be allowed
• FHA will be limiting themselves to 30% concentration in a project
• 50% owner occupancy requirement (previously 51%)
o Valid presales (for owner occupancy requirement) will require executed sales
agreement AND evidence that a lender is willing to make a loan
• FHA condo approvals will expire after two years
FHA is expected to issue follow up guidance in regards to their system (FHA Connection) and how it will adapt to the new Mortgagee Letter requirements, so we will keep you posted on any future developments.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Per Mortgagee Letter 2009-19, FHA is implementing numerous Condo
changes effective with case numbers on or after October 1st. The major changes include:
• No more ‘Spot’ Approvals will be allowed
• FHA will be limiting themselves to 30% concentration in a project
• 50% owner occupancy requirement (previously 51%)
o Valid presales (for owner occupancy requirement) will require executed sales
agreement AND evidence that a lender is willing to make a loan
• FHA condo approvals will expire after two years
FHA is expected to issue follow up guidance in regards to their system (FHA Connection) and how it will adapt to the new Mortgagee Letter requirements, so we will keep you posted on any future developments.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Mortgage Bond Trend
Mortgage Bonds are trading slightly lower this morning, despite some typically Bond-friendly news regarding wholesale inflation and weaker-than-expected housing numbers.
In terms of wholesale inflation, the Producer Price Index (or PPI) fell more than expected. However, the Core PPI--which strips out volatile food and energy prices--was inline with expectations. Also this morning, Housing Starts and Building Permits rose in July, but both came in slightly below expectations. Still, housing appears to be gradually stabilizing.Currently, prices are trying to remain above the 200-Day Moving Average.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
In terms of wholesale inflation, the Producer Price Index (or PPI) fell more than expected. However, the Core PPI--which strips out volatile food and energy prices--was inline with expectations. Also this morning, Housing Starts and Building Permits rose in July, but both came in slightly below expectations. Still, housing appears to be gradually stabilizing.Currently, prices are trying to remain above the 200-Day Moving Average.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
Mortgage Bond Trend
Mortgage Bonds are trading slightly lower this morning, despite some typically Bond-friendly news regarding wholesale inflation and weaker-than-expected housing numbers.
In terms of wholesale inflation, the Producer Price Index (or PPI) fell more than expected. However, the Core PPI--which strips out volatile food and energy prices--was inline with expectations. Also this morning, Housing Starts and Building Permits rose in July, but both came in slightly below expectations. Still, housing appears to be gradually stabilizing.Currently, prices are trying to remain above the 200-Day Moving Average.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
In terms of wholesale inflation, the Producer Price Index (or PPI) fell more than expected. However, the Core PPI--which strips out volatile food and energy prices--was inline with expectations. Also this morning, Housing Starts and Building Permits rose in July, but both came in slightly below expectations. Still, housing appears to be gradually stabilizing.Currently, prices are trying to remain above the 200-Day Moving Average.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
Fannie Mae Policy Changes
New guidlines from Fannie Mae and Freddie Mac may have impact on how long it will take to close on a house.
How long does it take to close on a home from time of contract to close of escrow? 2 months . . . .4 months. . . . .6 months? Even though there are some new and positive guidelines for Fannie Mae and Freddie Mac, these new requirements will most likely lengthen this time frame. I also see more confusion in the real estate market and finance industry. Let’s try and put some light on these new changes.
One of the new requirements is banks, mortgage companies or lenders are required to receive a copy of a real estate purchase contract and all addendums associated with the contract prior to completing an appraisal report. Why this wasn’t a guideline from the beginning is beyond me. Any amendments to the purchase contract prior to the appraisal must be submitted to the appraisal company immediately.
Multiple appraisals can no longer be provided on a single parcel. In other words, the appraisal company cannot appraisal part of a parcel. They have to appraise the “entire” parcel.
REO and foreclosed properties MUST be included as comparable properties. Previous guidelines allowed the appraiser to exclude these numbers.
Third party appraisal companies who are at “arms-length” from a transaction must verify and approve any appraisal completed by someone that might have a financial interest in the subject property. It seems apparent this should have always been a guideline?
Any structural defects or abnormal repairs found with a property must be corrected before an appraisal company finalizes the market value of a home or parcel. FHA created the 203K loan to address these concerns.
If management in the appraisal company has an “employee” complete an appraisal, before management or a review appraiser can sign off on the appraisal, they must complete their own inspection on the property. Management cannot depend solely on the “employees” expertise.
The revised Home Valuation Code of Conduct applies many changes within the industry and was meant to stop improper influencing of values as well as protect the consumer. These changes although somewhat positive will most likely add additional delays to the transaction.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
How long does it take to close on a home from time of contract to close of escrow? 2 months . . . .4 months. . . . .6 months? Even though there are some new and positive guidelines for Fannie Mae and Freddie Mac, these new requirements will most likely lengthen this time frame. I also see more confusion in the real estate market and finance industry. Let’s try and put some light on these new changes.
One of the new requirements is banks, mortgage companies or lenders are required to receive a copy of a real estate purchase contract and all addendums associated with the contract prior to completing an appraisal report. Why this wasn’t a guideline from the beginning is beyond me. Any amendments to the purchase contract prior to the appraisal must be submitted to the appraisal company immediately.
Multiple appraisals can no longer be provided on a single parcel. In other words, the appraisal company cannot appraisal part of a parcel. They have to appraise the “entire” parcel.
REO and foreclosed properties MUST be included as comparable properties. Previous guidelines allowed the appraiser to exclude these numbers.
Third party appraisal companies who are at “arms-length” from a transaction must verify and approve any appraisal completed by someone that might have a financial interest in the subject property. It seems apparent this should have always been a guideline?
Any structural defects or abnormal repairs found with a property must be corrected before an appraisal company finalizes the market value of a home or parcel. FHA created the 203K loan to address these concerns.
If management in the appraisal company has an “employee” complete an appraisal, before management or a review appraiser can sign off on the appraisal, they must complete their own inspection on the property. Management cannot depend solely on the “employees” expertise.
The revised Home Valuation Code of Conduct applies many changes within the industry and was meant to stop improper influencing of values as well as protect the consumer. These changes although somewhat positive will most likely add additional delays to the transaction.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
Fannie Mae Policy Changes
New guidlines from Fannie Mae and Freddie Mac may have impact on how long it will take to close on a house.
How long does it take to close on a home from time of contract to close of escrow? 2 months . . . .4 months. . . . .6 months? Even though there are some new and positive guidelines for Fannie Mae and Freddie Mac, these new requirements will most likely lengthen this time frame. I also see more confusion in the real estate market and finance industry. Let’s try and put some light on these new changes.
One of the new requirements is banks, mortgage companies or lenders are required to receive a copy of a real estate purchase contract and all addendums associated with the contract prior to completing an appraisal report. Why this wasn’t a guideline from the beginning is beyond me. Any amendments to the purchase contract prior to the appraisal must be submitted to the appraisal company immediately.
Multiple appraisals can no longer be provided on a single parcel. In other words, the appraisal company cannot appraisal part of a parcel. They have to appraise the “entire” parcel.
REO and foreclosed properties MUST be included as comparable properties. Previous guidelines allowed the appraiser to exclude these numbers.
Third party appraisal companies who are at “arms-length” from a transaction must verify and approve any appraisal completed by someone that might have a financial interest in the subject property. It seems apparent this should have always been a guideline?
Any structural defects or abnormal repairs found with a property must be corrected before an appraisal company finalizes the market value of a home or parcel. FHA created the 203K loan to address these concerns.
If management in the appraisal company has an “employee” complete an appraisal, before management or a review appraiser can sign off on the appraisal, they must complete their own inspection on the property. Management cannot depend solely on the “employees” expertise.
The revised Home Valuation Code of Conduct applies many changes within the industry and was meant to stop improper influencing of values as well as protect the consumer. These changes although somewhat positive will most likely add additional delays to the transaction.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
How long does it take to close on a home from time of contract to close of escrow? 2 months . . . .4 months. . . . .6 months? Even though there are some new and positive guidelines for Fannie Mae and Freddie Mac, these new requirements will most likely lengthen this time frame. I also see more confusion in the real estate market and finance industry. Let’s try and put some light on these new changes.
One of the new requirements is banks, mortgage companies or lenders are required to receive a copy of a real estate purchase contract and all addendums associated with the contract prior to completing an appraisal report. Why this wasn’t a guideline from the beginning is beyond me. Any amendments to the purchase contract prior to the appraisal must be submitted to the appraisal company immediately.
Multiple appraisals can no longer be provided on a single parcel. In other words, the appraisal company cannot appraisal part of a parcel. They have to appraise the “entire” parcel.
REO and foreclosed properties MUST be included as comparable properties. Previous guidelines allowed the appraiser to exclude these numbers.
Third party appraisal companies who are at “arms-length” from a transaction must verify and approve any appraisal completed by someone that might have a financial interest in the subject property. It seems apparent this should have always been a guideline?
Any structural defects or abnormal repairs found with a property must be corrected before an appraisal company finalizes the market value of a home or parcel. FHA created the 203K loan to address these concerns.
If management in the appraisal company has an “employee” complete an appraisal, before management or a review appraiser can sign off on the appraisal, they must complete their own inspection on the property. Management cannot depend solely on the “employees” expertise.
The revised Home Valuation Code of Conduct applies many changes within the industry and was meant to stop improper influencing of values as well as protect the consumer. These changes although somewhat positive will most likely add additional delays to the transaction.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
Monday, August 17, 2009
Daily market Comment
Mortgage Bonds are starting the week on the upside, as Stocks slide lower due to fears of a slower than anticipated world economic recovery.
Amidst all the global negativity was some better than expected news this morning on US manufacturing, as the Empire State Index came in far better than expectations. There are no Treasury auctions this week, but this Thursday will bring the announcement for the upcoming round of Bond supply that will hit the market next week. Bonds have not reacted well to previous announcements of additional supply, so this will be something to watch for later this week.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrust mortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Amidst all the global negativity was some better than expected news this morning on US manufacturing, as the Empire State Index came in far better than expectations. There are no Treasury auctions this week, but this Thursday will bring the announcement for the upcoming round of Bond supply that will hit the market next week. Bonds have not reacted well to previous announcements of additional supply, so this will be something to watch for later this week.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrust mortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Daily market Comment
Mortgage Bonds are starting the week on the upside, as Stocks slide lower due to fears of a slower than anticipated world economic recovery.
Amidst all the global negativity was some better than expected news this morning on US manufacturing, as the Empire State Index came in far better than expectations. There are no Treasury auctions this week, but this Thursday will bring the announcement for the upcoming round of Bond supply that will hit the market next week. Bonds have not reacted well to previous announcements of additional supply, so this will be something to watch for later this week.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrust mortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Amidst all the global negativity was some better than expected news this morning on US manufacturing, as the Empire State Index came in far better than expectations. There are no Treasury auctions this week, but this Thursday will bring the announcement for the upcoming round of Bond supply that will hit the market next week. Bonds have not reacted well to previous announcements of additional supply, so this will be something to watch for later this week.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrust mortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Wednesday, August 12, 2009
Broker Price Opinions in Charlottesville Picking Up
There are a number of reasons that a bank would order a Broker Price Opinion. Some good and some bad, but with Albemarle County being the 4th highest county in Virginia in Preforeclosures they are on the rise.
Our team did 87 BPOs last in July of 2009. Currently for August we are on pace to do over 150 BPOs. This is yet another sign that there is a big wave of foreclosures, REOs and short sales coming to Charlottesville. We are already seeing an increase in Trustee Sales (foreclosure auctions) on the Charlottesville courthouse steps. These are coming, be ready. If you are behind on your payments, call someone for help, even if its only your lender that you call. There are other options that will help save your credit and future.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Our team did 87 BPOs last in July of 2009. Currently for August we are on pace to do over 150 BPOs. This is yet another sign that there is a big wave of foreclosures, REOs and short sales coming to Charlottesville. We are already seeing an increase in Trustee Sales (foreclosure auctions) on the Charlottesville courthouse steps. These are coming, be ready. If you are behind on your payments, call someone for help, even if its only your lender that you call. There are other options that will help save your credit and future.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Broker Price Opinions in Charlottesville Picking Up
There are a number of reasons that a bank would order a Broker Price Opinion. Some good and some bad, but with Albemarle County being the 4th highest county in Virginia in Preforeclosures they are on the rise.
Our team did 87 BPOs last in July of 2009. Currently for August we are on pace to do over 150 BPOs. This is yet another sign that there is a big wave of foreclosures, REOs and short sales coming to Charlottesville. We are already seeing an increase in Trustee Sales (foreclosure auctions) on the Charlottesville courthouse steps. These are coming, be ready. If you are behind on your payments, call someone for help, even if its only your lender that you call. There are other options that will help save your credit and future.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Our team did 87 BPOs last in July of 2009. Currently for August we are on pace to do over 150 BPOs. This is yet another sign that there is a big wave of foreclosures, REOs and short sales coming to Charlottesville. We are already seeing an increase in Trustee Sales (foreclosure auctions) on the Charlottesville courthouse steps. These are coming, be ready. If you are behind on your payments, call someone for help, even if its only your lender that you call. There are other options that will help save your credit and future.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Alert To Lock
Mortgage bonds down 41 and falling fast. Recommend locking the interest rate before lenders re-price.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
Alert To Lock
Mortgage bonds down 41 and falling fast. Recommend locking the interest rate before lenders re-price.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
Mortgage Bond Comment
Bonds are attempting to hold on to their gains this morning in advance of two big events coming up this afternoon. At 1 o'clock Eastern Time, the results of the $23 Billion auction of 10-year Notes will be released. Then at 2:15, the Fed will issue its Policy Statement after its two-day Fed Meeting.
The news from the Fed will be both multi-faceted and potentially market moving. Any hints of inflation and hikes could cause the market to swing in one direction. However, news of Bond purchases could cause an opposite reaction.
I recommend floating as of now, but be prepared to change course if the action heats up this afternoon."
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
The news from the Fed will be both multi-faceted and potentially market moving. Any hints of inflation and hikes could cause the market to swing in one direction. However, news of Bond purchases could cause an opposite reaction.
I recommend floating as of now, but be prepared to change course if the action heats up this afternoon."
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Mortgage Bond Comment
Bonds are attempting to hold on to their gains this morning in advance of two big events coming up this afternoon. At 1 o'clock Eastern Time, the results of the $23 Billion auction of 10-year Notes will be released. Then at 2:15, the Fed will issue its Policy Statement after its two-day Fed Meeting.
The news from the Fed will be both multi-faceted and potentially market moving. Any hints of inflation and hikes could cause the market to swing in one direction. However, news of Bond purchases could cause an opposite reaction.
I recommend floating as of now, but be prepared to change course if the action heats up this afternoon."
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
The news from the Fed will be both multi-faceted and potentially market moving. Any hints of inflation and hikes could cause the market to swing in one direction. However, news of Bond purchases could cause an opposite reaction.
I recommend floating as of now, but be prepared to change course if the action heats up this afternoon."
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Tuesday, August 11, 2009
Mortgage Bond Comment
Mortgage Bonds are higher this morning, as they follow through on yesterday's rally.
Helping give Bonds a lift was good news on inflation from the Labor Department. Worker Productivity came in better than expected and rose at its fastest pace in 6 years, as companies cut costs and try to maximize output from their current staff. This efficiency helps curb inflation, which is good for long-term Bonds like Mortgage Bonds.Currently, Bonds are higher after breaking above resistance this morning. I recommend floating for now, as we watch to see how today's Treasury auction of 3-year Notes is received. I will keep you posted on any major developments.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Helping give Bonds a lift was good news on inflation from the Labor Department. Worker Productivity came in better than expected and rose at its fastest pace in 6 years, as companies cut costs and try to maximize output from their current staff. This efficiency helps curb inflation, which is good for long-term Bonds like Mortgage Bonds.Currently, Bonds are higher after breaking above resistance this morning. I recommend floating for now, as we watch to see how today's Treasury auction of 3-year Notes is received. I will keep you posted on any major developments.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Mortgage Bond Comment
Mortgage Bonds are higher this morning, as they follow through on yesterday's rally.
Helping give Bonds a lift was good news on inflation from the Labor Department. Worker Productivity came in better than expected and rose at its fastest pace in 6 years, as companies cut costs and try to maximize output from their current staff. This efficiency helps curb inflation, which is good for long-term Bonds like Mortgage Bonds.Currently, Bonds are higher after breaking above resistance this morning. I recommend floating for now, as we watch to see how today's Treasury auction of 3-year Notes is received. I will keep you posted on any major developments.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Helping give Bonds a lift was good news on inflation from the Labor Department. Worker Productivity came in better than expected and rose at its fastest pace in 6 years, as companies cut costs and try to maximize output from their current staff. This efficiency helps curb inflation, which is good for long-term Bonds like Mortgage Bonds.Currently, Bonds are higher after breaking above resistance this morning. I recommend floating for now, as we watch to see how today's Treasury auction of 3-year Notes is received. I will keep you posted on any major developments.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Monday, August 10, 2009
Fannie Mae Posts Loss, Freddie Mac Posts Gain
Fannie Mae announces that it lost $14.8 billion dollars in the second quarter of 2009. Freddie Mac posts gain of $768 million.
Because of the $14.8 billion dollar loss in the second quarter of 2009, Fannie Mae had to ask the for $10.7 billion dollars to stay solvent. Freddie Mac, however was able to finish in the black for the second quarter after posting a $768 million dollar gain. Read the Full Story Here.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Because of the $14.8 billion dollar loss in the second quarter of 2009, Fannie Mae had to ask the for $10.7 billion dollars to stay solvent. Freddie Mac, however was able to finish in the black for the second quarter after posting a $768 million dollar gain. Read the Full Story Here.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Fannie Mae Posts Loss, Freddie Mac Posts Gain
Fannie Mae announces that it lost $14.8 billion dollars in the second quarter of 2009. Freddie Mac posts gain of $768 million.
Because of the $14.8 billion dollar loss in the second quarter of 2009, Fannie Mae had to ask the for $10.7 billion dollars to stay solvent. Freddie Mac, however was able to finish in the black for the second quarter after posting a $768 million dollar gain. Read the Full Story Here.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Because of the $14.8 billion dollar loss in the second quarter of 2009, Fannie Mae had to ask the for $10.7 billion dollars to stay solvent. Freddie Mac, however was able to finish in the black for the second quarter after posting a $768 million dollar gain. Read the Full Story Here.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Mortgage Rate Weekly Watch
Mortgage Rate Weekly watch update. What to look for this week in mortgage rates for Charlottesville, Central Virginia, and the Shenandoah Valley
This week brings us the release of six relevant economic reports in addition to another FOMC meeting. The first is Employee Productivity and Costs data for the second quarter that will be released Tuesday morning. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don't see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly. Analysts are currently expecting to see an increase in productivity of 5.4%. A higher than expected reading could help improve bonds, leading to lower mortgage rates Tuesday.
June's Trade Balance report will be released Wednesday morning. It gives us the size of the U.S. trade deficit but is the week's least important report and likely will have little impact on the bond market and mortgage rates. Analysts are expecting to see a $28.5 billion deficit, but it will take a wide variance to directly influence mortgage pricing.
The FOMC meeting will begin Tuesday morning and adjourn at 2:15 PM ET Wednesday. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed's next move may be and when it will come. If the statement does not give us new information, mortgage rates will probably move little after its release.
Thursday morning's sole monthly report is July's Retail Sales data. This data is very important to the financial markets and mortgage rates because it helps us measure consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any data related to it can cause a fair amount of movement in the markets. A smaller than expected inc rease would indicate that consumers are spending less than previously thought, potentially slowing the economic recovery. This is good news for the bond market and mortgage rates as it eases inflation concerns and makes long-term securities such as mortgage-related bonds more attractive to investors. Current forecasts are calling for an increase of 0.7%.
Friday brings us the release of three reports. The first is July's Consumer Price Index (CPI) at 8:30 AM. The CPI is one of the most important reports we see each month. It measures inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. The more important of the two is the core data because it excludes more volatile food and energy prices. Current forecasts call for no change in the overall index and a 0.1% increase in the core data reading. Declines in the readings, especially in the core data, should lead to a bond rally and lower mort gage rates. However, stronger than expected readings will likely cause a spike in mortgage pricing Friday.
The remaining two pieces of data are relevant to mortgage rates but not nearly important as the CPI is. The second report of the day is Industrial Production data for July. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be of moderately high importance and may cause movement in mortgage rates. Analysts are currently expecting to see a 0.4% increase in production between June and July. A larger increase in output could lead to higher mortgage rates Friday, but only if the CPI is a non-factor.
The last report of the day will come from the University of Michigan who will release its Index of Consumer Sentiment for August at 9:45 AM. This index gives us a measurement of consumer willingness to spend. If confidence is rising, then co nsumers are more apt to make large purchases. This helps fuel consumer spending and economic growth. A drop in confidence will probably help boost bond prices. If the index rises, indicating that confidence is rising and spending is likely to continue, we may see mortgage rates move higher Friday morning. However, this is the least important of the day's three reports and will probably have the least impact on rates.
Also worth noting are two important Treasury auctions this week. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as they are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lo wer after the results are posted and mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day.
Overall, look for the most movement in bond prices and mortgage rates the second half of the week. Thursday or Friday will likely turn out to be the most important day. If we get stronger than expected results in the Retail Sales and CPI releases, I fear that we may see mortgage rates spike higher fairly quickly. I suspect the FOMC meeting will not have as much of an influence on mortgage rates as recent meetings have, but the markets can react wildly to a single word or omission of a word in the statement, so we need to be cautious. This is certainly another week that continuous contact with your mortgage professional is highly recommended if you are still floating an interest rate.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
This week brings us the release of six relevant economic reports in addition to another FOMC meeting. The first is Employee Productivity and Costs data for the second quarter that will be released Tuesday morning. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don't see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly. Analysts are currently expecting to see an increase in productivity of 5.4%. A higher than expected reading could help improve bonds, leading to lower mortgage rates Tuesday.
June's Trade Balance report will be released Wednesday morning. It gives us the size of the U.S. trade deficit but is the week's least important report and likely will have little impact on the bond market and mortgage rates. Analysts are expecting to see a $28.5 billion deficit, but it will take a wide variance to directly influence mortgage pricing.
The FOMC meeting will begin Tuesday morning and adjourn at 2:15 PM ET Wednesday. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed's next move may be and when it will come. If the statement does not give us new information, mortgage rates will probably move little after its release.
Thursday morning's sole monthly report is July's Retail Sales data. This data is very important to the financial markets and mortgage rates because it helps us measure consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any data related to it can cause a fair amount of movement in the markets. A smaller than expected inc rease would indicate that consumers are spending less than previously thought, potentially slowing the economic recovery. This is good news for the bond market and mortgage rates as it eases inflation concerns and makes long-term securities such as mortgage-related bonds more attractive to investors. Current forecasts are calling for an increase of 0.7%.
Friday brings us the release of three reports. The first is July's Consumer Price Index (CPI) at 8:30 AM. The CPI is one of the most important reports we see each month. It measures inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. The more important of the two is the core data because it excludes more volatile food and energy prices. Current forecasts call for no change in the overall index and a 0.1% increase in the core data reading. Declines in the readings, especially in the core data, should lead to a bond rally and lower mort gage rates. However, stronger than expected readings will likely cause a spike in mortgage pricing Friday.
The remaining two pieces of data are relevant to mortgage rates but not nearly important as the CPI is. The second report of the day is Industrial Production data for July. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be of moderately high importance and may cause movement in mortgage rates. Analysts are currently expecting to see a 0.4% increase in production between June and July. A larger increase in output could lead to higher mortgage rates Friday, but only if the CPI is a non-factor.
The last report of the day will come from the University of Michigan who will release its Index of Consumer Sentiment for August at 9:45 AM. This index gives us a measurement of consumer willingness to spend. If confidence is rising, then co nsumers are more apt to make large purchases. This helps fuel consumer spending and economic growth. A drop in confidence will probably help boost bond prices. If the index rises, indicating that confidence is rising and spending is likely to continue, we may see mortgage rates move higher Friday morning. However, this is the least important of the day's three reports and will probably have the least impact on rates.
Also worth noting are two important Treasury auctions this week. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as they are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lo wer after the results are posted and mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day.
Overall, look for the most movement in bond prices and mortgage rates the second half of the week. Thursday or Friday will likely turn out to be the most important day. If we get stronger than expected results in the Retail Sales and CPI releases, I fear that we may see mortgage rates spike higher fairly quickly. I suspect the FOMC meeting will not have as much of an influence on mortgage rates as recent meetings have, but the markets can react wildly to a single word or omission of a word in the statement, so we need to be cautious. This is certainly another week that continuous contact with your mortgage professional is highly recommended if you are still floating an interest rate.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Mortgage Rate Weekly Watch
Mortgage Rate Weekly watch update. What to look for this week in mortgage rates for Charlottesville, Central Virginia, and the Shenandoah Valley
This week brings us the release of six relevant economic reports in addition to another FOMC meeting. The first is Employee Productivity and Costs data for the second quarter that will be released Tuesday morning. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don't see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly. Analysts are currently expecting to see an increase in productivity of 5.4%. A higher than expected reading could help improve bonds, leading to lower mortgage rates Tuesday.
June's Trade Balance report will be released Wednesday morning. It gives us the size of the U.S. trade deficit but is the week's least important report and likely will have little impact on the bond market and mortgage rates. Analysts are expecting to see a $28.5 billion deficit, but it will take a wide variance to directly influence mortgage pricing.
The FOMC meeting will begin Tuesday morning and adjourn at 2:15 PM ET Wednesday. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed's next move may be and when it will come. If the statement does not give us new information, mortgage rates will probably move little after its release.
Thursday morning's sole monthly report is July's Retail Sales data. This data is very important to the financial markets and mortgage rates because it helps us measure consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any data related to it can cause a fair amount of movement in the markets. A smaller than expected inc rease would indicate that consumers are spending less than previously thought, potentially slowing the economic recovery. This is good news for the bond market and mortgage rates as it eases inflation concerns and makes long-term securities such as mortgage-related bonds more attractive to investors. Current forecasts are calling for an increase of 0.7%.
Friday brings us the release of three reports. The first is July's Consumer Price Index (CPI) at 8:30 AM. The CPI is one of the most important reports we see each month. It measures inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. The more important of the two is the core data because it excludes more volatile food and energy prices. Current forecasts call for no change in the overall index and a 0.1% increase in the core data reading. Declines in the readings, especially in the core data, should lead to a bond rally and lower mort gage rates. However, stronger than expected readings will likely cause a spike in mortgage pricing Friday.
The remaining two pieces of data are relevant to mortgage rates but not nearly important as the CPI is. The second report of the day is Industrial Production data for July. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be of moderately high importance and may cause movement in mortgage rates. Analysts are currently expecting to see a 0.4% increase in production between June and July. A larger increase in output could lead to higher mortgage rates Friday, but only if the CPI is a non-factor.
The last report of the day will come from the University of Michigan who will release its Index of Consumer Sentiment for August at 9:45 AM. This index gives us a measurement of consumer willingness to spend. If confidence is rising, then co nsumers are more apt to make large purchases. This helps fuel consumer spending and economic growth. A drop in confidence will probably help boost bond prices. If the index rises, indicating that confidence is rising and spending is likely to continue, we may see mortgage rates move higher Friday morning. However, this is the least important of the day's three reports and will probably have the least impact on rates.
Also worth noting are two important Treasury auctions this week. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as they are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lo wer after the results are posted and mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day.
Overall, look for the most movement in bond prices and mortgage rates the second half of the week. Thursday or Friday will likely turn out to be the most important day. If we get stronger than expected results in the Retail Sales and CPI releases, I fear that we may see mortgage rates spike higher fairly quickly. I suspect the FOMC meeting will not have as much of an influence on mortgage rates as recent meetings have, but the markets can react wildly to a single word or omission of a word in the statement, so we need to be cautious. This is certainly another week that continuous contact with your mortgage professional is highly recommended if you are still floating an interest rate.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
This week brings us the release of six relevant economic reports in addition to another FOMC meeting. The first is Employee Productivity and Costs data for the second quarter that will be released Tuesday morning. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don't see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly. Analysts are currently expecting to see an increase in productivity of 5.4%. A higher than expected reading could help improve bonds, leading to lower mortgage rates Tuesday.
June's Trade Balance report will be released Wednesday morning. It gives us the size of the U.S. trade deficit but is the week's least important report and likely will have little impact on the bond market and mortgage rates. Analysts are expecting to see a $28.5 billion deficit, but it will take a wide variance to directly influence mortgage pricing.
The FOMC meeting will begin Tuesday morning and adjourn at 2:15 PM ET Wednesday. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed's next move may be and when it will come. If the statement does not give us new information, mortgage rates will probably move little after its release.
Thursday morning's sole monthly report is July's Retail Sales data. This data is very important to the financial markets and mortgage rates because it helps us measure consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any data related to it can cause a fair amount of movement in the markets. A smaller than expected inc rease would indicate that consumers are spending less than previously thought, potentially slowing the economic recovery. This is good news for the bond market and mortgage rates as it eases inflation concerns and makes long-term securities such as mortgage-related bonds more attractive to investors. Current forecasts are calling for an increase of 0.7%.
Friday brings us the release of three reports. The first is July's Consumer Price Index (CPI) at 8:30 AM. The CPI is one of the most important reports we see each month. It measures inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. The more important of the two is the core data because it excludes more volatile food and energy prices. Current forecasts call for no change in the overall index and a 0.1% increase in the core data reading. Declines in the readings, especially in the core data, should lead to a bond rally and lower mort gage rates. However, stronger than expected readings will likely cause a spike in mortgage pricing Friday.
The remaining two pieces of data are relevant to mortgage rates but not nearly important as the CPI is. The second report of the day is Industrial Production data for July. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be of moderately high importance and may cause movement in mortgage rates. Analysts are currently expecting to see a 0.4% increase in production between June and July. A larger increase in output could lead to higher mortgage rates Friday, but only if the CPI is a non-factor.
The last report of the day will come from the University of Michigan who will release its Index of Consumer Sentiment for August at 9:45 AM. This index gives us a measurement of consumer willingness to spend. If confidence is rising, then co nsumers are more apt to make large purchases. This helps fuel consumer spending and economic growth. A drop in confidence will probably help boost bond prices. If the index rises, indicating that confidence is rising and spending is likely to continue, we may see mortgage rates move higher Friday morning. However, this is the least important of the day's three reports and will probably have the least impact on rates.
Also worth noting are two important Treasury auctions this week. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as they are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lo wer after the results are posted and mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day.
Overall, look for the most movement in bond prices and mortgage rates the second half of the week. Thursday or Friday will likely turn out to be the most important day. If we get stronger than expected results in the Retail Sales and CPI releases, I fear that we may see mortgage rates spike higher fairly quickly. I suspect the FOMC meeting will not have as much of an influence on mortgage rates as recent meetings have, but the markets can react wildly to a single word or omission of a word in the statement, so we need to be cautious. This is certainly another week that continuous contact with your mortgage professional is highly recommended if you are still floating an interest rate.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Mortgage Comment
After a 4-week rally higher, Stocks are a little lower this morning, which is helping Mortgage Bonds trade higher so far.
Despite a number of economic reports this week as well as the Fed Policy announcement on Wednesday, the big news could be the Treasury auctions. If the buying of Treasuries is strong, we could see a nice improvement in Mortgage Bonds. However, a poor showing could cause the Bond market to suffer further.
For now, Bond prices are trading modestly higher. Therefore, I recommend floating.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Despite a number of economic reports this week as well as the Fed Policy announcement on Wednesday, the big news could be the Treasury auctions. If the buying of Treasuries is strong, we could see a nice improvement in Mortgage Bonds. However, a poor showing could cause the Bond market to suffer further.
For now, Bond prices are trading modestly higher. Therefore, I recommend floating.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Mortgage Comment
After a 4-week rally higher, Stocks are a little lower this morning, which is helping Mortgage Bonds trade higher so far.
Despite a number of economic reports this week as well as the Fed Policy announcement on Wednesday, the big news could be the Treasury auctions. If the buying of Treasuries is strong, we could see a nice improvement in Mortgage Bonds. However, a poor showing could cause the Bond market to suffer further.
For now, Bond prices are trading modestly higher. Therefore, I recommend floating.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Despite a number of economic reports this week as well as the Fed Policy announcement on Wednesday, the big news could be the Treasury auctions. If the buying of Treasuries is strong, we could see a nice improvement in Mortgage Bonds. However, a poor showing could cause the Bond market to suffer further.
For now, Bond prices are trading modestly higher. Therefore, I recommend floating.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Thursday, August 6, 2009
Market Comment
Stocks improved in early trading, which put pressure on Bonds. However, Stocks have since given up those gains, and Bonds are holding their ground.
In the news, the Initial Jobless Claims number came in better than expected. Additionally, the four-week moving average has declined for six consecutive weeks, suggesting some slight improvement in the job market. The news put pressure on Bonds early this morning.
Currently, Bonds are attempting to hold their ground at the 50-day Moving Average. I recommend floating for now, as I watch for tomorrow's official Jobs Report, which may come in worse than expected and help Bonds improve. I will keep you posted.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.domiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
In the news, the Initial Jobless Claims number came in better than expected. Additionally, the four-week moving average has declined for six consecutive weeks, suggesting some slight improvement in the job market. The news put pressure on Bonds early this morning.
Currently, Bonds are attempting to hold their ground at the 50-day Moving Average. I recommend floating for now, as I watch for tomorrow's official Jobs Report, which may come in worse than expected and help Bonds improve. I will keep you posted.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.domiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Market Comment
Stocks improved in early trading, which put pressure on Bonds. However, Stocks have since given up those gains, and Bonds are holding their ground.
In the news, the Initial Jobless Claims number came in better than expected. Additionally, the four-week moving average has declined for six consecutive weeks, suggesting some slight improvement in the job market. The news put pressure on Bonds early this morning.
Currently, Bonds are attempting to hold their ground at the 50-day Moving Average. I recommend floating for now, as I watch for tomorrow's official Jobs Report, which may come in worse than expected and help Bonds improve. I will keep you posted.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.domiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
In the news, the Initial Jobless Claims number came in better than expected. Additionally, the four-week moving average has declined for six consecutive weeks, suggesting some slight improvement in the job market. The news put pressure on Bonds early this morning.
Currently, Bonds are attempting to hold their ground at the 50-day Moving Average. I recommend floating for now, as I watch for tomorrow's official Jobs Report, which may come in worse than expected and help Bonds improve. I will keep you posted.
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.domiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Wednesday, August 5, 2009
Mortgage Rates Charlottesville
It's been a wild morning for Mortgage Bonds so far, as they have traded in a 75-basis point range. Putting pressure on Bonds this morning was positive economic news from overseas, as well as the Treasury Department's announcement of a record auction of 3-year and 10-year Notes next week.
In other news, the ADP Report showed slightly more jobs lost in July than expected. Additionally, the ISM Services Index came in worse than expected. Stocks didn't like the news and moved lower, helping Bonds regain some ground.Overall, Bonds are sitting above their worst levels of the day. With underlying support nearby and the Treasury announcement behind us, I recommend floating as we watch to see if Bonds can stabilize and look to improve
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
In other news, the ADP Report showed slightly more jobs lost in July than expected. Additionally, the ISM Services Index came in worse than expected. Stocks didn't like the news and moved lower, helping Bonds regain some ground.Overall, Bonds are sitting above their worst levels of the day. With underlying support nearby and the Treasury announcement behind us, I recommend floating as we watch to see if Bonds can stabilize and look to improve
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
Mortgage Rates Charlottesville
It's been a wild morning for Mortgage Bonds so far, as they have traded in a 75-basis point range. Putting pressure on Bonds this morning was positive economic news from overseas, as well as the Treasury Department's announcement of a record auction of 3-year and 10-year Notes next week.
In other news, the ADP Report showed slightly more jobs lost in July than expected. Additionally, the ISM Services Index came in worse than expected. Stocks didn't like the news and moved lower, helping Bonds regain some ground.Overall, Bonds are sitting above their worst levels of the day. With underlying support nearby and the Treasury announcement behind us, I recommend floating as we watch to see if Bonds can stabilize and look to improve
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
In other news, the ADP Report showed slightly more jobs lost in July than expected. Additionally, the ISM Services Index came in worse than expected. Stocks didn't like the news and moved lower, helping Bonds regain some ground.Overall, Bonds are sitting above their worst levels of the day. With underlying support nearby and the Treasury announcement behind us, I recommend floating as we watch to see if Bonds can stabilize and look to improve
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
Tuesday, August 4, 2009
New Rule for Short Sale Listings in Charlottesville
The Charlottesville Area Association of Realtors (CAAR) has come out with a new rule for Short Sale Listings in the Central Virginia Area.
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
New Rule for Short Sale Listings in Charlottesville
The Charlottesville Area Association of Realtors (CAAR) has come out with a new rule for Short Sale Listings in the Central Virginia Area.
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
ALERT TO LOCK INTEREST RATE
Bonds received an initial boost this morning, but have moved lower once again, as some surprisingly good news on the housing market hit the wires.
In the news, Pending Home Sales rose in June for the fifth straight month, fueled by low home loan rates and bargain home prices. In addition, inflation came in tame in the PCE report. Meanwhile, Personal Spending came in slightly higher than estimated, while the Savings rate slipped a bit.
Currently, Mortgage Backed Securities are at their worst levels of the day. Therefore, I recommend locking."
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
In the news, Pending Home Sales rose in June for the fifth straight month, fueled by low home loan rates and bargain home prices. In addition, inflation came in tame in the PCE report. Meanwhile, Personal Spending came in slightly higher than estimated, while the Savings rate slipped a bit.
Currently, Mortgage Backed Securities are at their worst levels of the day. Therefore, I recommend locking."
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
ALERT TO LOCK INTEREST RATE
Bonds received an initial boost this morning, but have moved lower once again, as some surprisingly good news on the housing market hit the wires.
In the news, Pending Home Sales rose in June for the fifth straight month, fueled by low home loan rates and bargain home prices. In addition, inflation came in tame in the PCE report. Meanwhile, Personal Spending came in slightly higher than estimated, while the Savings rate slipped a bit.
Currently, Mortgage Backed Securities are at their worst levels of the day. Therefore, I recommend locking."
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
In the news, Pending Home Sales rose in June for the fifth straight month, fueled by low home loan rates and bargain home prices. In addition, inflation came in tame in the PCE report. Meanwhile, Personal Spending came in slightly higher than estimated, while the Savings rate slipped a bit.
Currently, Mortgage Backed Securities are at their worst levels of the day. Therefore, I recommend locking."
Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Monday, August 3, 2009
Reg Z Changes
Check out this SlideShare Presentation from Mike Platt at Prospect Mortgage:
Reg Z Changes Ppt
View more presentations from roballey.
Reg Z Changes
Check out this SlideShare Presentation from Mike Platt at Prospect Mortgage:
Reg Z Changes Ppt
View more presentations from roballey.
Daily comment
Mortgage Bonds are sharply lower so far this morning, after they were unable to break above an important technical level last Friday.
Meanwhile, Stocks continue higher after former Fed Chairman Alan Greenspan stated that the recession is nearing an end. This, combined with the slightly better-than-expected ISM Index, is putting selling pressure on Bonds.This is a big week of market-moving news, including Friday's important Jobs Report. Be ready to lock if prices are unable to stabilize.
Leonard Winslow, Brtanch manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Meanwhile, Stocks continue higher after former Fed Chairman Alan Greenspan stated that the recession is nearing an end. This, combined with the slightly better-than-expected ISM Index, is putting selling pressure on Bonds.This is a big week of market-moving news, including Friday's important Jobs Report. Be ready to lock if prices are unable to stabilize.
Leonard Winslow, Brtanch manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Daily comment
Mortgage Bonds are sharply lower so far this morning, after they were unable to break above an important technical level last Friday.
Meanwhile, Stocks continue higher after former Fed Chairman Alan Greenspan stated that the recession is nearing an end. This, combined with the slightly better-than-expected ISM Index, is putting selling pressure on Bonds.This is a big week of market-moving news, including Friday's important Jobs Report. Be ready to lock if prices are unable to stabilize.
Leonard Winslow, Brtanch manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Meanwhile, Stocks continue higher after former Fed Chairman Alan Greenspan stated that the recession is nearing an end. This, combined with the slightly better-than-expected ISM Index, is putting selling pressure on Bonds.This is a big week of market-moving news, including Friday's important Jobs Report. Be ready to lock if prices are unable to stabilize.
Leonard Winslow, Brtanch manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Charlottesville Mortgage Rate Watch Upcoming Week
Mortgage Rate Updates For the Week. There are four relevant reports scheduled for release this week that are likely to affect mortgage pricing.
There are four relevant reports scheduled for release this week that are likely to affect mortgage pricing. The first important release scheduled for the week is the Institute for Supply Management's (ISM) manufacturing index for July late tomorrow morning. This index measures manufacturer sentiment by surveying trade executives about business conditions during the month and is considered to be of fairly high importance to the markets. A reading below 50.0 means that more surveyed executives felt that business worsened last month than those who said it had improved. Tomorrow's release is expected to show a reading of 46.5, up from last month's 44.8, indicating manufacturer sentiment improved from June. A smaller than expected reading would be good news for the bond market and would likely improve mortgage rates tomorrow. However, a stronger than expected reading could lead to higher mortgage rates.
June's Personal Income and Outlays data will be posted early Tuesday morning. This report helps us measure consumer ability to spend and current spending habits. If it shows sizable increases, bond selling could lead to higher mortgage rates. Current forecasts are calling for a decline of 1.0% in income and an increase of 0.3% in spending. The sizable decline in June's income that is expected is simply a result of the unusual spike in May's income and not a sign of declining wages.
Wednesday morning brings us the release of June's Factory Orders data. This report helps us measure manufacturing sector strength by tracking orders for both durable and non-durable goods during the month of June. It is similar to last week's Durable Goods Orders report that tracks only orders for big-ticket items. Since a significant portion of the data was released last week, this report may not have as big of an impact on the markets as you may think. Analysts are expecting to see an increase of approximately 0.5% in new orders. A smaller t han expected increase would be considered good news for bonds and mortgage pricing.
There is no relevant monthly or quarterly economic news scheduled for release Thursday, but Friday's data is a different story. The most important piece of data this week and arguably each month is the monthly Employment report. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading for July. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. This report is considered to be one of the single most important releases that we see each month.
While the GDP is arguably the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Friday's report is expected to show that the unemployment rate rose to 9.6% last month while approximately 333,000 jobs were lost. The unemployment r ate probably will not be much of a factor unless it moved much more than the 0.1% that is expected. However, due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing Friday morning if they vary from forecasts.
Overall, I am expecting to see another active week for mortgage rates. The most important day is Friday due to the data being released, but tomorrow is also a very important day with the ISM index scheduled for release. The rest of the week is likely to be a little calmer than Monday and Friday. We may see some pressure in bonds mid to late week ahead of Friday's employment numbers, but we also need to watch the stock markets for significant moves that can influence bond trading. Accordingly, this is a good week to maintain contact with your mortgage professional.
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... Lock 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.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
There are four relevant reports scheduled for release this week that are likely to affect mortgage pricing. The first important release scheduled for the week is the Institute for Supply Management's (ISM) manufacturing index for July late tomorrow morning. This index measures manufacturer sentiment by surveying trade executives about business conditions during the month and is considered to be of fairly high importance to the markets. A reading below 50.0 means that more surveyed executives felt that business worsened last month than those who said it had improved. Tomorrow's release is expected to show a reading of 46.5, up from last month's 44.8, indicating manufacturer sentiment improved from June. A smaller than expected reading would be good news for the bond market and would likely improve mortgage rates tomorrow. However, a stronger than expected reading could lead to higher mortgage rates.
June's Personal Income and Outlays data will be posted early Tuesday morning. This report helps us measure consumer ability to spend and current spending habits. If it shows sizable increases, bond selling could lead to higher mortgage rates. Current forecasts are calling for a decline of 1.0% in income and an increase of 0.3% in spending. The sizable decline in June's income that is expected is simply a result of the unusual spike in May's income and not a sign of declining wages.
Wednesday morning brings us the release of June's Factory Orders data. This report helps us measure manufacturing sector strength by tracking orders for both durable and non-durable goods during the month of June. It is similar to last week's Durable Goods Orders report that tracks only orders for big-ticket items. Since a significant portion of the data was released last week, this report may not have as big of an impact on the markets as you may think. Analysts are expecting to see an increase of approximately 0.5% in new orders. A smaller t han expected increase would be considered good news for bonds and mortgage pricing.
There is no relevant monthly or quarterly economic news scheduled for release Thursday, but Friday's data is a different story. The most important piece of data this week and arguably each month is the monthly Employment report. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading for July. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. This report is considered to be one of the single most important releases that we see each month.
While the GDP is arguably the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Friday's report is expected to show that the unemployment rate rose to 9.6% last month while approximately 333,000 jobs were lost. The unemployment r ate probably will not be much of a factor unless it moved much more than the 0.1% that is expected. However, due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing Friday morning if they vary from forecasts.
Overall, I am expecting to see another active week for mortgage rates. The most important day is Friday due to the data being released, but tomorrow is also a very important day with the ISM index scheduled for release. The rest of the week is likely to be a little calmer than Monday and Friday. We may see some pressure in bonds mid to late week ahead of Friday's employment numbers, but we also need to watch the stock markets for significant moves that can influence bond trading. Accordingly, this is a good week to maintain contact with your mortgage professional.
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... Lock 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.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
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