Mortgage Bonds are trading higher so far this morning and have been pretty active.
There are no economic reports set for release today but 4th Quarter corporate earnings season kicks off today. Bonds often move opposite of stocks, and while a strong earning season is good news for the economy, it may also add pressure to Bonds. Also this week the Treasury will auction $84 Billion in new debt supply, and Bonds could face additional selling pressure if the auction results are poor.
I recommend floating for now and I will let you know if anything changes.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
Showing posts with label Mortgage. Show all posts
Showing posts with label Mortgage. Show all posts
Monday, January 11, 2010
Market Comment
Mortgage Bonds are trading higher so far this morning and have been pretty active.
There are no economic reports set for release today but 4th Quarter corporate earnings season kicks off today. Bonds often move opposite of stocks, and while a strong earning season is good news for the economy, it may also add pressure to Bonds. Also this week the Treasury will auction $84 Billion in new debt supply, and Bonds could face additional selling pressure if the auction results are poor.
I recommend floating for now and I will let you know if anything changes.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
There are no economic reports set for release today but 4th Quarter corporate earnings season kicks off today. Bonds often move opposite of stocks, and while a strong earning season is good news for the economy, it may also add pressure to Bonds. Also this week the Treasury will auction $84 Billion in new debt supply, and Bonds could face additional selling pressure if the auction results are poor.
I recommend floating for now and I will let you know if anything changes.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
Wednesday, September 2, 2009
CNBC Financial Advice
CNBC Financial Advice - gotta love the Daily Show
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
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| CNBC Financial Advice | ||||
| ||||
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
CNBC Financial Advice
CNBC Financial Advice - gotta love the Daily Show
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
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| CNBC Financial Advice | ||||
| ||||
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, July 6, 2009
Daily comment
The financial markets are back in full swing today after the long holiday weekend. Bonds continue to remain just beneath a tough resistance level, while Stocks are getting off to a sluggish start due to concerns for the overall global economic recovery.
The ISM Services Index, which gauges the health of the non-manufacturing or service industry, came in better than expectations. Overall, the report indicates continued contraction, but at a slower pace.Many traders and investors may be taking the next few days off as an extension of the holiday weekend, which can increase volatility. I recommend floating as we see how Bonds and Stocks continue to react to important technical factors and the news of the day, but be prepared to change direction if necessary.
Leonard Winslow Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
The ISM Services Index, which gauges the health of the non-manufacturing or service industry, came in better than expectations. Overall, the report indicates continued contraction, but at a slower pace.Many traders and investors may be taking the next few days off as an extension of the holiday weekend, which can increase volatility. I recommend floating as we see how Bonds and Stocks continue to react to important technical factors and the news of the day, but be prepared to change direction if necessary.
Leonard Winslow Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Daily comment
The financial markets are back in full swing today after the long holiday weekend. Bonds continue to remain just beneath a tough resistance level, while Stocks are getting off to a sluggish start due to concerns for the overall global economic recovery.
The ISM Services Index, which gauges the health of the non-manufacturing or service industry, came in better than expectations. Overall, the report indicates continued contraction, but at a slower pace.Many traders and investors may be taking the next few days off as an extension of the holiday weekend, which can increase volatility. I recommend floating as we see how Bonds and Stocks continue to react to important technical factors and the news of the day, but be prepared to change direction if necessary.
Leonard Winslow Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
The ISM Services Index, which gauges the health of the non-manufacturing or service industry, came in better than expectations. Overall, the report indicates continued contraction, but at a slower pace.Many traders and investors may be taking the next few days off as an extension of the holiday weekend, which can increase volatility. I recommend floating as we see how Bonds and Stocks continue to react to important technical factors and the news of the day, but be prepared to change direction if necessary.
Leonard Winslow Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Thursday, June 25, 2009
Different Types of Loans
Understanding Different Loan Types
The market today has been reduced to more traditional loan programs. The standards of today are fixed, adjustable, hybrid and flexed fixed. With these financing packages one can be tailored to meet your financial goals.
While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with your lender before deciding on the right loan for your situation.
Categories of loans:
Typically loans fall into one of three major categories: fixed rate, adjustable and hybrid loans that combine features from both the fixed rate and adjustable.
Fixed Rate Mortgages:
As the name describes, the mortgage is based on a fixed rate at a fixed term. The term can range from 10 to 30 years and in some cases can go to 40 years. The fixed rate mortgage has been the reliable tradition for all time. You can plan a budget based on a known monthly payment, the principal and interest does not change, you can pre-pay the mortgage, allowing you to pay the loan off early.
Adjustable Rate Mortgage:
Adjustable Rate Mortgages as the name implies change based on a new rate and new principle balance at the time of adjustment. For some people the adjustable rate is the right program. Typically a life event is going to occur in future that will allow them to pay down the balance, have another income enter into the family or just want a potentially lower payment for the first few years of the mortgage. Adjustable rate mortgages over history have a lower initial interest rate which would mean a lower payment.
The interest rate at time of adjustment is based on an index typically the one year treasury index or more recently the LIBOR, (London Inter Bank Rate) and a margin. The margin typically is 2.75%. You add the two together and that would be the rate for the ensuing time frame. The rate on most adjustable can go up or down by no more than 2% per change and no higher or lower than 6% over the life of the loan.
Hybrid Loans:
Hybrid loans combine the features of both fixed rate and adjustable rates. A hybrid will start with a moderate fixed term (5, 7, 10 years) and then will go to a 1 year adjustable for the remaining time of the loan. The same principal for adjustment as above applies with the exception of the first adjustment. Some Hybrids at the first adjustment will change by up to 5% maximum after the initial fixed term. As with the adjustable a future life event may occur; an additional income source, additional monies to pay down the mortgage, or a time frame of staying in the home.
Another possible feature could be an interest only feature for the fixed time frame. This would mean a lower monthly payment in the first years of the mortgage but would also translate to a higher payment after the fixed term.
Balloon Payments:
A balloon payment refers to a loan that has a large, final payment due at the end of the loan. For example, there are currently fixed-rate loans which allow homeowners to make payments based on a 30-year loan, even though the entire balance of the loan may be due (the balloon payment) after 7 years. As with some hybrid loans, balloon loans may be attractive to homeowners who plan to have a future life event occur. In the case of a balloon, it could be another property selling, an inheritance, or a planed move.
Strategies of mortgage planning
The general theme when planning a mortgage strategy is to ask your self several questions. These questions are:
1) How long do I plan to stay in the home?
2) How much do I want my payments?
3) How much money do I want to commit to the transaction?
Given question 2 and 3 being equally important, which one is more important?
While time is important when designing a mortgage program it is question 2 and 3 which to most people are the important ones. Time is used more for deciding a permanent buy-down of the rate is rational. The rates on the fixed and adjustable are not different as they have been in the past.
FHA :
Federal Housing Administration loans, aka FHA, are backed by the federal government by insuring the loan in cases of default. The loan requires 3.5% down and has higher qualifying ratio’s. Used predominately with borrows with limited cash resources
VA:
Veterans Administration loans, AKA VA, are loans made to qualified veterans. They do not require a down payment and are used for Veterans of the armed forces and some other government entities. VA is entitling the loan only in cases of default.
VHDA:
Virginia Housing and Development Authority, AKA VHDA, Issues bonds that are tax free in some cases and lends monies to first time homebuyers. There loans can be combined with FHA, VA, RD and conventional loan mortgage insurance. There loans have income and sales price limitations. http://www.vhda.com/ .
Conventional Loans:
A conventional loan is simply a loan offered by a traditional lender. They may be fixed-rate, adjustable, hybrid or other types. While conventional loans may be harder to qualify for than government-backed loans, they typically have higher credit scores and tighter qualifying ratios.
By:Leonard Winslow
Dominion Trust Mortgage
www.dominiontrustmortgage.com/leonard.winslow
434-760-2580
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell) roballey@roywheeler.com http://www.robsellscharlottesville.com/ http://www.forestlakesliving.com/ http://www.charlottesvillevarealestate.blogspot.com/ http://www.charlottesvilleshortsale.com/
The market today has been reduced to more traditional loan programs. The standards of today are fixed, adjustable, hybrid and flexed fixed. With these financing packages one can be tailored to meet your financial goals.
While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with your lender before deciding on the right loan for your situation.
Categories of loans:
Typically loans fall into one of three major categories: fixed rate, adjustable and hybrid loans that combine features from both the fixed rate and adjustable.
Fixed Rate Mortgages:
As the name describes, the mortgage is based on a fixed rate at a fixed term. The term can range from 10 to 30 years and in some cases can go to 40 years. The fixed rate mortgage has been the reliable tradition for all time. You can plan a budget based on a known monthly payment, the principal and interest does not change, you can pre-pay the mortgage, allowing you to pay the loan off early.
Adjustable Rate Mortgage:
Adjustable Rate Mortgages as the name implies change based on a new rate and new principle balance at the time of adjustment. For some people the adjustable rate is the right program. Typically a life event is going to occur in future that will allow them to pay down the balance, have another income enter into the family or just want a potentially lower payment for the first few years of the mortgage. Adjustable rate mortgages over history have a lower initial interest rate which would mean a lower payment.
The interest rate at time of adjustment is based on an index typically the one year treasury index or more recently the LIBOR, (London Inter Bank Rate) and a margin. The margin typically is 2.75%. You add the two together and that would be the rate for the ensuing time frame. The rate on most adjustable can go up or down by no more than 2% per change and no higher or lower than 6% over the life of the loan.
Hybrid Loans:
Hybrid loans combine the features of both fixed rate and adjustable rates. A hybrid will start with a moderate fixed term (5, 7, 10 years) and then will go to a 1 year adjustable for the remaining time of the loan. The same principal for adjustment as above applies with the exception of the first adjustment. Some Hybrids at the first adjustment will change by up to 5% maximum after the initial fixed term. As with the adjustable a future life event may occur; an additional income source, additional monies to pay down the mortgage, or a time frame of staying in the home.
Another possible feature could be an interest only feature for the fixed time frame. This would mean a lower monthly payment in the first years of the mortgage but would also translate to a higher payment after the fixed term.
Balloon Payments:
A balloon payment refers to a loan that has a large, final payment due at the end of the loan. For example, there are currently fixed-rate loans which allow homeowners to make payments based on a 30-year loan, even though the entire balance of the loan may be due (the balloon payment) after 7 years. As with some hybrid loans, balloon loans may be attractive to homeowners who plan to have a future life event occur. In the case of a balloon, it could be another property selling, an inheritance, or a planed move.
Strategies of mortgage planning
The general theme when planning a mortgage strategy is to ask your self several questions. These questions are:
1) How long do I plan to stay in the home?
2) How much do I want my payments?
3) How much money do I want to commit to the transaction?
Given question 2 and 3 being equally important, which one is more important?
While time is important when designing a mortgage program it is question 2 and 3 which to most people are the important ones. Time is used more for deciding a permanent buy-down of the rate is rational. The rates on the fixed and adjustable are not different as they have been in the past.
FHA :
Federal Housing Administration loans, aka FHA, are backed by the federal government by insuring the loan in cases of default. The loan requires 3.5% down and has higher qualifying ratio’s. Used predominately with borrows with limited cash resources
VA:
Veterans Administration loans, AKA VA, are loans made to qualified veterans. They do not require a down payment and are used for Veterans of the armed forces and some other government entities. VA is entitling the loan only in cases of default.
VHDA:
Virginia Housing and Development Authority, AKA VHDA, Issues bonds that are tax free in some cases and lends monies to first time homebuyers. There loans can be combined with FHA, VA, RD and conventional loan mortgage insurance. There loans have income and sales price limitations. http://www.vhda.com/ .
Conventional Loans:
A conventional loan is simply a loan offered by a traditional lender. They may be fixed-rate, adjustable, hybrid or other types. While conventional loans may be harder to qualify for than government-backed loans, they typically have higher credit scores and tighter qualifying ratios.
By:Leonard Winslow
Dominion Trust Mortgage
www.dominiontrustmortgage.com/leonard.winslow
434-760-2580
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell) roballey@roywheeler.com http://www.robsellscharlottesville.com/ http://www.forestlakesliving.com/ http://www.charlottesvillevarealestate.blogspot.com/ http://www.charlottesvilleshortsale.com/
Different Types of Loans
Understanding Different Loan Types
The market today has been reduced to more traditional loan programs. The standards of today are fixed, adjustable, hybrid and flexed fixed. With these financing packages one can be tailored to meet your financial goals.
While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with your lender before deciding on the right loan for your situation.
Categories of loans:
Typically loans fall into one of three major categories: fixed rate, adjustable and hybrid loans that combine features from both the fixed rate and adjustable.
Fixed Rate Mortgages:
As the name describes, the mortgage is based on a fixed rate at a fixed term. The term can range from 10 to 30 years and in some cases can go to 40 years. The fixed rate mortgage has been the reliable tradition for all time. You can plan a budget based on a known monthly payment, the principal and interest does not change, you can pre-pay the mortgage, allowing you to pay the loan off early.
Adjustable Rate Mortgage:
Adjustable Rate Mortgages as the name implies change based on a new rate and new principle balance at the time of adjustment. For some people the adjustable rate is the right program. Typically a life event is going to occur in future that will allow them to pay down the balance, have another income enter into the family or just want a potentially lower payment for the first few years of the mortgage. Adjustable rate mortgages over history have a lower initial interest rate which would mean a lower payment.
The interest rate at time of adjustment is based on an index typically the one year treasury index or more recently the LIBOR, (London Inter Bank Rate) and a margin. The margin typically is 2.75%. You add the two together and that would be the rate for the ensuing time frame. The rate on most adjustable can go up or down by no more than 2% per change and no higher or lower than 6% over the life of the loan.
Hybrid Loans:
Hybrid loans combine the features of both fixed rate and adjustable rates. A hybrid will start with a moderate fixed term (5, 7, 10 years) and then will go to a 1 year adjustable for the remaining time of the loan. The same principal for adjustment as above applies with the exception of the first adjustment. Some Hybrids at the first adjustment will change by up to 5% maximum after the initial fixed term. As with the adjustable a future life event may occur; an additional income source, additional monies to pay down the mortgage, or a time frame of staying in the home.
Another possible feature could be an interest only feature for the fixed time frame. This would mean a lower monthly payment in the first years of the mortgage but would also translate to a higher payment after the fixed term.
Balloon Payments:
A balloon payment refers to a loan that has a large, final payment due at the end of the loan. For example, there are currently fixed-rate loans which allow homeowners to make payments based on a 30-year loan, even though the entire balance of the loan may be due (the balloon payment) after 7 years. As with some hybrid loans, balloon loans may be attractive to homeowners who plan to have a future life event occur. In the case of a balloon, it could be another property selling, an inheritance, or a planed move.
Strategies of mortgage planning
The general theme when planning a mortgage strategy is to ask your self several questions. These questions are:
1) How long do I plan to stay in the home?
2) How much do I want my payments?
3) How much money do I want to commit to the transaction?
Given question 2 and 3 being equally important, which one is more important?
While time is important when designing a mortgage program it is question 2 and 3 which to most people are the important ones. Time is used more for deciding a permanent buy-down of the rate is rational. The rates on the fixed and adjustable are not different as they have been in the past.
FHA :
Federal Housing Administration loans, aka FHA, are backed by the federal government by insuring the loan in cases of default. The loan requires 3.5% down and has higher qualifying ratio’s. Used predominately with borrows with limited cash resources
VA:
Veterans Administration loans, AKA VA, are loans made to qualified veterans. They do not require a down payment and are used for Veterans of the armed forces and some other government entities. VA is entitling the loan only in cases of default.
VHDA:
Virginia Housing and Development Authority, AKA VHDA, Issues bonds that are tax free in some cases and lends monies to first time homebuyers. There loans can be combined with FHA, VA, RD and conventional loan mortgage insurance. There loans have income and sales price limitations. http://www.vhda.com/ .
Conventional Loans:
A conventional loan is simply a loan offered by a traditional lender. They may be fixed-rate, adjustable, hybrid or other types. While conventional loans may be harder to qualify for than government-backed loans, they typically have higher credit scores and tighter qualifying ratios.
By:Leonard Winslow
Dominion Trust Mortgage
www.dominiontrustmortgage.com/leonard.winslow
434-760-2580
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell) roballey@roywheeler.com http://www.robsellscharlottesville.com/ http://www.forestlakesliving.com/ http://www.charlottesvillevarealestate.blogspot.com/ http://www.charlottesvilleshortsale.com/
The market today has been reduced to more traditional loan programs. The standards of today are fixed, adjustable, hybrid and flexed fixed. With these financing packages one can be tailored to meet your financial goals.
While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with your lender before deciding on the right loan for your situation.
Categories of loans:
Typically loans fall into one of three major categories: fixed rate, adjustable and hybrid loans that combine features from both the fixed rate and adjustable.
Fixed Rate Mortgages:
As the name describes, the mortgage is based on a fixed rate at a fixed term. The term can range from 10 to 30 years and in some cases can go to 40 years. The fixed rate mortgage has been the reliable tradition for all time. You can plan a budget based on a known monthly payment, the principal and interest does not change, you can pre-pay the mortgage, allowing you to pay the loan off early.
Adjustable Rate Mortgage:
Adjustable Rate Mortgages as the name implies change based on a new rate and new principle balance at the time of adjustment. For some people the adjustable rate is the right program. Typically a life event is going to occur in future that will allow them to pay down the balance, have another income enter into the family or just want a potentially lower payment for the first few years of the mortgage. Adjustable rate mortgages over history have a lower initial interest rate which would mean a lower payment.
The interest rate at time of adjustment is based on an index typically the one year treasury index or more recently the LIBOR, (London Inter Bank Rate) and a margin. The margin typically is 2.75%. You add the two together and that would be the rate for the ensuing time frame. The rate on most adjustable can go up or down by no more than 2% per change and no higher or lower than 6% over the life of the loan.
Hybrid Loans:
Hybrid loans combine the features of both fixed rate and adjustable rates. A hybrid will start with a moderate fixed term (5, 7, 10 years) and then will go to a 1 year adjustable for the remaining time of the loan. The same principal for adjustment as above applies with the exception of the first adjustment. Some Hybrids at the first adjustment will change by up to 5% maximum after the initial fixed term. As with the adjustable a future life event may occur; an additional income source, additional monies to pay down the mortgage, or a time frame of staying in the home.
Another possible feature could be an interest only feature for the fixed time frame. This would mean a lower monthly payment in the first years of the mortgage but would also translate to a higher payment after the fixed term.
Balloon Payments:
A balloon payment refers to a loan that has a large, final payment due at the end of the loan. For example, there are currently fixed-rate loans which allow homeowners to make payments based on a 30-year loan, even though the entire balance of the loan may be due (the balloon payment) after 7 years. As with some hybrid loans, balloon loans may be attractive to homeowners who plan to have a future life event occur. In the case of a balloon, it could be another property selling, an inheritance, or a planed move.
Strategies of mortgage planning
The general theme when planning a mortgage strategy is to ask your self several questions. These questions are:
1) How long do I plan to stay in the home?
2) How much do I want my payments?
3) How much money do I want to commit to the transaction?
Given question 2 and 3 being equally important, which one is more important?
While time is important when designing a mortgage program it is question 2 and 3 which to most people are the important ones. Time is used more for deciding a permanent buy-down of the rate is rational. The rates on the fixed and adjustable are not different as they have been in the past.
FHA :
Federal Housing Administration loans, aka FHA, are backed by the federal government by insuring the loan in cases of default. The loan requires 3.5% down and has higher qualifying ratio’s. Used predominately with borrows with limited cash resources
VA:
Veterans Administration loans, AKA VA, are loans made to qualified veterans. They do not require a down payment and are used for Veterans of the armed forces and some other government entities. VA is entitling the loan only in cases of default.
VHDA:
Virginia Housing and Development Authority, AKA VHDA, Issues bonds that are tax free in some cases and lends monies to first time homebuyers. There loans can be combined with FHA, VA, RD and conventional loan mortgage insurance. There loans have income and sales price limitations. http://www.vhda.com/ .
Conventional Loans:
A conventional loan is simply a loan offered by a traditional lender. They may be fixed-rate, adjustable, hybrid or other types. While conventional loans may be harder to qualify for than government-backed loans, they typically have higher credit scores and tighter qualifying ratios.
By:Leonard Winslow
Dominion Trust Mortgage
www.dominiontrustmortgage.com/leonard.winslow
434-760-2580
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell) roballey@roywheeler.com http://www.robsellscharlottesville.com/ http://www.forestlakesliving.com/ http://www.charlottesvillevarealestate.blogspot.com/ http://www.charlottesvilleshortsale.com/
Friday, June 12, 2009
Mortgage Rate watch 6-12-09 from Leonard Winslow
Mortgage Bonds are trading higher today, as they follow through on yesterday's rally. Conversely, Stocks have come back down after their good day yesterday. Helping give Bonds a boost this morning is news that the Paulson & Co. hedge fund is purchasing distressed debt and Mortgage Backed Securities.
In other news, Consumer Sentiment came in at its highest level in 9 months. Since the number was close to expectations, however, the markets have not reacted to the news so far this morning.
Currently, Mortgage Bonds are sitting in a comfortable range, while still riding positive technical signs. Therefore, I recommend floating for now. But, remember, the market is very volatile right now, so be prepared to lock if the situation changes.
The mortgage bond market is improving at this time. You may be able to float today but be cautious. The market is very volatile at this time and this could change rapidly.
Leonard Winslow
Dominion Trust Mortgage
This is only an opinion and is not a reconmendation. Each transaction has different circumstances and you should act accordingly.
In other news, Consumer Sentiment came in at its highest level in 9 months. Since the number was close to expectations, however, the markets have not reacted to the news so far this morning.
Currently, Mortgage Bonds are sitting in a comfortable range, while still riding positive technical signs. Therefore, I recommend floating for now. But, remember, the market is very volatile right now, so be prepared to lock if the situation changes.
The mortgage bond market is improving at this time. You may be able to float today but be cautious. The market is very volatile at this time and this could change rapidly.
Leonard Winslow
Dominion Trust Mortgage
This is only an opinion and is not a reconmendation. Each transaction has different circumstances and you should act accordingly.
Mortgage Rate watch 6-12-09 from Leonard Winslow
Mortgage Bonds are trading higher today, as they follow through on yesterday's rally. Conversely, Stocks have come back down after their good day yesterday. Helping give Bonds a boost this morning is news that the Paulson & Co. hedge fund is purchasing distressed debt and Mortgage Backed Securities.
In other news, Consumer Sentiment came in at its highest level in 9 months. Since the number was close to expectations, however, the markets have not reacted to the news so far this morning.
Currently, Mortgage Bonds are sitting in a comfortable range, while still riding positive technical signs. Therefore, I recommend floating for now. But, remember, the market is very volatile right now, so be prepared to lock if the situation changes.
The mortgage bond market is improving at this time. You may be able to float today but be cautious. The market is very volatile at this time and this could change rapidly.
Leonard Winslow
Dominion Trust Mortgage
This is only an opinion and is not a reconmendation. Each transaction has different circumstances and you should act accordingly.
In other news, Consumer Sentiment came in at its highest level in 9 months. Since the number was close to expectations, however, the markets have not reacted to the news so far this morning.
Currently, Mortgage Bonds are sitting in a comfortable range, while still riding positive technical signs. Therefore, I recommend floating for now. But, remember, the market is very volatile right now, so be prepared to lock if the situation changes.
The mortgage bond market is improving at this time. You may be able to float today but be cautious. The market is very volatile at this time and this could change rapidly.
Leonard Winslow
Dominion Trust Mortgage
This is only an opinion and is not a reconmendation. Each transaction has different circumstances and you should act accordingly.
Thursday, April 16, 2009
Market Comment and Indicated Rates 4/16/2009
Conventional 30 4.750 0 + 1
Conventional 15 4.500 0 + 1
FHA/VA 30 4.875 0 + 1
FHA/VA 15 5.000 0 + 0
"There was mixed economic news this morning, as Housing Starts and Building Permits came in below expectations and showed that new home construction remains weak.
But on the positive side, there was some good news from the Labor Department as Initial Jobless Claims came in quite a bit below expectations. The past two weeks' improvement in Initial Jobless Claims is encouraging. And there was more good news from the financial sector as JPMorgan Chase reported better than expected earnings for the 1st quarter of 2009 on surging investment banking profits and fixed income trading revenue.
Currently, Bonds continue to trade near a key support level. I recommend floating for now, but I will let you know if things change."
Posted by Leonard Winslow of Dominion Trust Mortgage
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Conventional 15 4.500 0 + 1
FHA/VA 30 4.875 0 + 1
FHA/VA 15 5.000 0 + 0
"There was mixed economic news this morning, as Housing Starts and Building Permits came in below expectations and showed that new home construction remains weak.
But on the positive side, there was some good news from the Labor Department as Initial Jobless Claims came in quite a bit below expectations. The past two weeks' improvement in Initial Jobless Claims is encouraging. And there was more good news from the financial sector as JPMorgan Chase reported better than expected earnings for the 1st quarter of 2009 on surging investment banking profits and fixed income trading revenue.
Currently, Bonds continue to trade near a key support level. I recommend floating for now, but I will let you know if things change."
Posted by Leonard Winslow of Dominion Trust Mortgage
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Market Comment and Indicated Rates 4/16/2009
Conventional 30 4.750 0 + 1
Conventional 15 4.500 0 + 1
FHA/VA 30 4.875 0 + 1
FHA/VA 15 5.000 0 + 0
"There was mixed economic news this morning, as Housing Starts and Building Permits came in below expectations and showed that new home construction remains weak.
But on the positive side, there was some good news from the Labor Department as Initial Jobless Claims came in quite a bit below expectations. The past two weeks' improvement in Initial Jobless Claims is encouraging. And there was more good news from the financial sector as JPMorgan Chase reported better than expected earnings for the 1st quarter of 2009 on surging investment banking profits and fixed income trading revenue.
Currently, Bonds continue to trade near a key support level. I recommend floating for now, but I will let you know if things change."
Posted by Leonard Winslow of Dominion Trust Mortgage
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Conventional 15 4.500 0 + 1
FHA/VA 30 4.875 0 + 1
FHA/VA 15 5.000 0 + 0
"There was mixed economic news this morning, as Housing Starts and Building Permits came in below expectations and showed that new home construction remains weak.
But on the positive side, there was some good news from the Labor Department as Initial Jobless Claims came in quite a bit below expectations. The past two weeks' improvement in Initial Jobless Claims is encouraging. And there was more good news from the financial sector as JPMorgan Chase reported better than expected earnings for the 1st quarter of 2009 on surging investment banking profits and fixed income trading revenue.
Currently, Bonds continue to trade near a key support level. I recommend floating for now, but I will let you know if things change."
Posted by Leonard Winslow of Dominion Trust Mortgage
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Wednesday, April 8, 2009
Indicated rates and market comment
Conventional 30 4.875 0 + 1
Conventional 15 4.500 0 + 1
FHA/VA 30 5.000 0 + 1
FHA/VA 15 5.000 0 + 0
"Bonds are modestly higher in early trading this morning, while Stocks are sinking due to more negative talk about the financial system.
In the news today, the International Monetary Fund will reportedly release new forecasts that suggest toxic assets in the US could reach about $3 Trillion, which is $1 Trillion more than the forecast three months ago. Also adding selling pressure to Stocks is word from hedge fund giant George Soros that the US banking system is insolvent and that the economy won't recover in 2009.
With Stocks under selling pressure currently and Bonds holding above a floor of support, I recommend floating for now. If the situation changes, however, I will let you know."
Submitted by Leonard Winslow of Dominion Trust Mortgage
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
Conventional 15 4.500 0 + 1
FHA/VA 30 5.000 0 + 1
FHA/VA 15 5.000 0 + 0
"Bonds are modestly higher in early trading this morning, while Stocks are sinking due to more negative talk about the financial system.
In the news today, the International Monetary Fund will reportedly release new forecasts that suggest toxic assets in the US could reach about $3 Trillion, which is $1 Trillion more than the forecast three months ago. Also adding selling pressure to Stocks is word from hedge fund giant George Soros that the US banking system is insolvent and that the economy won't recover in 2009.
With Stocks under selling pressure currently and Bonds holding above a floor of support, I recommend floating for now. If the situation changes, however, I will let you know."
Submitted by Leonard Winslow of Dominion Trust Mortgage
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
Indicated rates and market comment
Conventional 30 4.875 0 + 1
Conventional 15 4.500 0 + 1
FHA/VA 30 5.000 0 + 1
FHA/VA 15 5.000 0 + 0
"Bonds are modestly higher in early trading this morning, while Stocks are sinking due to more negative talk about the financial system.
In the news today, the International Monetary Fund will reportedly release new forecasts that suggest toxic assets in the US could reach about $3 Trillion, which is $1 Trillion more than the forecast three months ago. Also adding selling pressure to Stocks is word from hedge fund giant George Soros that the US banking system is insolvent and that the economy won't recover in 2009.
With Stocks under selling pressure currently and Bonds holding above a floor of support, I recommend floating for now. If the situation changes, however, I will let you know."
Submitted by Leonard Winslow of Dominion Trust Mortgage
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
Conventional 15 4.500 0 + 1
FHA/VA 30 5.000 0 + 1
FHA/VA 15 5.000 0 + 0
"Bonds are modestly higher in early trading this morning, while Stocks are sinking due to more negative talk about the financial system.
In the news today, the International Monetary Fund will reportedly release new forecasts that suggest toxic assets in the US could reach about $3 Trillion, which is $1 Trillion more than the forecast three months ago. Also adding selling pressure to Stocks is word from hedge fund giant George Soros that the US banking system is insolvent and that the economy won't recover in 2009.
With Stocks under selling pressure currently and Bonds holding above a floor of support, I recommend floating for now. If the situation changes, however, I will let you know."
Submitted by Leonard Winslow of Dominion Trust Mortgage
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
Tuesday, March 17, 2009
FAKE HUD WEBSITE...BEWARE!
There is a deceptive website out there that is posing as HUD. This website tries to dupe people into giving out personal information (known as “phishing”) - and because they’ve made their site appear to be an “official us government website”, some people may fall prey to this scam.
The website is: http://bailout.hud-gov.us/
If anyone asks you about this website, advise them to stay away.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
The website is: http://bailout.hud-gov.us/
If anyone asks you about this website, advise them to stay away.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
FAKE HUD WEBSITE...BEWARE!
There is a deceptive website out there that is posing as HUD. This website tries to dupe people into giving out personal information (known as “phishing”) - and because they’ve made their site appear to be an “official us government website”, some people may fall prey to this scam.
The website is: http://bailout.hud-gov.us/
If anyone asks you about this website, advise them to stay away.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
The website is: http://bailout.hud-gov.us/
If anyone asks you about this website, advise them to stay away.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Monday, March 16, 2009
Suntrust Market Update
Thought for the week:
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Suntrust Market Update
Thought for the week:
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Thursday, February 19, 2009
Thursday's Bond Market February 19, 2009
Thursday's bond market has opened well into negative territory following the release of much stronger than expected economic data. The stock markets are relatively flat with the Dow and Nasdaq both down 2 points. The bond market is currently down 19/32, which will likely push this morning's mortgage rates higher by approximately .125 - .250 of a discount point.Both of today's monthly reports gave us stronger than expected results. The first and more important of the two was January's Producer Price Index (PPI) from the Labor Department. They announced a 0.8% jump in the overall reading and a 0.4% rise in the core data when they were expected to show 0.3% and 0.1% increases respectively. This means that prices paid at the producer level of the economy rose much more than expected. That is considered bad news for bonds and mortgage rates because it raises inflation concerns that make bonds less appealing to investors.The second piece of data p osted this morning was January's Leading Economic Indicators (LEI). This Conference Board report attempts to predict economic activity over the next three to six months and showed an increase of 0.4% compared to the 0.1% increase that latest forecasts were calling for. This means that the data is predicting economic activity to increase over the next few months at a faster pace than analysts had thought. This is negative news for bonds and mortgage rates.The Labor Department also posted weekly unemployment figures, showing that 627,000 new claims for benefits were filed last week. This matched the previous week's revised total but was higher than expected. The higher total of claims is good news for bonds, but since it tracks only a week's worth of claims it is not considered to be of high importance to the markets, especially with the inflation related readings being posted this morning.The Labor Department will also release January's Consumer Pr ice Index (CPI) early tomorrow morning, which measures inflationary pressures at the very important consumer level of the economy. With exception to maybe the Employment report, the CPI is the most important report that we see each month. Its results can have a huge impact on the financial markets, especially long-term securities such as mortgage-related bonds. It is expected to show a 0.3% increase in the overall index and a 0.1% rise in the more important core data. If we see weaker than expected readings, bond prices should rise and mortgage rates would likely fall.If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and c annot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Thursday's Bond Market February 19, 2009
Thursday's bond market has opened well into negative territory following the release of much stronger than expected economic data. The stock markets are relatively flat with the Dow and Nasdaq both down 2 points. The bond market is currently down 19/32, which will likely push this morning's mortgage rates higher by approximately .125 - .250 of a discount point.Both of today's monthly reports gave us stronger than expected results. The first and more important of the two was January's Producer Price Index (PPI) from the Labor Department. They announced a 0.8% jump in the overall reading and a 0.4% rise in the core data when they were expected to show 0.3% and 0.1% increases respectively. This means that prices paid at the producer level of the economy rose much more than expected. That is considered bad news for bonds and mortgage rates because it raises inflation concerns that make bonds less appealing to investors.The second piece of data p osted this morning was January's Leading Economic Indicators (LEI). This Conference Board report attempts to predict economic activity over the next three to six months and showed an increase of 0.4% compared to the 0.1% increase that latest forecasts were calling for. This means that the data is predicting economic activity to increase over the next few months at a faster pace than analysts had thought. This is negative news for bonds and mortgage rates.The Labor Department also posted weekly unemployment figures, showing that 627,000 new claims for benefits were filed last week. This matched the previous week's revised total but was higher than expected. The higher total of claims is good news for bonds, but since it tracks only a week's worth of claims it is not considered to be of high importance to the markets, especially with the inflation related readings being posted this morning.The Labor Department will also release January's Consumer Pr ice Index (CPI) early tomorrow morning, which measures inflationary pressures at the very important consumer level of the economy. With exception to maybe the Employment report, the CPI is the most important report that we see each month. Its results can have a huge impact on the financial markets, especially long-term securities such as mortgage-related bonds. It is expected to show a 0.3% increase in the overall index and a 0.1% rise in the more important core data. If we see weaker than expected readings, bond prices should rise and mortgage rates would likely fall.If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and c annot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
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