This week in mortgage interest rates could have been worse. While we started with another upward climb, rates for Fannie Mae and Freddie Mac mortgages retreated a bit by Thursday. Based on the extreme pain of the last 30 or so days, this was jump up and kick your heels together news.
Friday, December 17, 2010
Thursday, December 16, 2010
Tango now available on iPod touch in time for the holidays!
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Monday, December 13, 2010
Housing data shows that we are in the long dark before the dawn
Corelogic released data today that the number of homeowners under water on their mortgage has decreased. Sounds like good news, but that is not the whole story.
As with most data, it is the underlying environment that contributes to the findings that are of importance. These numbers show less about home values than they do about remaining configuration of homeowners left. Since we have not seen major increases in value, the numbers really communicate that the worst off have lost their homes. With fewer homeowners left to sally forth, the numbers improved.
Source Marketplace on American Public Media - Read the transcript
Published with Blogger-droid v1.6.0
As with most data, it is the underlying environment that contributes to the findings that are of importance. These numbers show less about home values than they do about remaining configuration of homeowners left. Since we have not seen major increases in value, the numbers really communicate that the worst off have lost their homes. With fewer homeowners left to sally forth, the numbers improved.
Source Marketplace on American Public Media - Read the transcript
Published with Blogger-droid v1.6.0
Rates Begin Week Positively As Market Corrects
Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.
Short-term (No Change) - LOCK
Long-term - (No Change) LOCK on ANY price improvements as windows for improvement will be small and fleeting.
The week ahead for economic data that can affect mortgage interest rates
Tuesday
- November PPI
- November Retail Sales
- October Inventories
- FOMC Policy Statement
Wednesday
- Weekly MBA Mortgage Applications
- November CPI
- December NY Manufacturing Index
- November Industrial Production
- November Capacity Utilization
- December NAHB Housing Market Index
Thursday
- Weekly Jobless Claims
- November Housing Starts
- November Building Permits
- December Philadelphia Fed Business Index
Friday
- November Leading Market Indicators
Friday, December 10, 2010
Mortgage Rates Skyrocket on Tax Cut Compromise
This week was bad for rates, really bad. If you are not in the industry, it is impossible to describe what happens when you see rate increases like we saw this week, so I will once again defer to history to illustrate what occurred.
"It's fire and it's crashing! It's crashing terrible! Oh, my! Get out of the way, please! It's burning, bursting into flames and is falling on the mooring mast, and all the folks agree that this is terrible. This is the worst of the worst catastrophes in the world! Oh, it's crashing...oh, four or five hundred feet into the sky, and it's a terrific crash, ladies and gentlemen. There's smoke, and there's flames, now, and the frame is crashing to the ground, not quite to the mooring mast...Oh, the humanity" (See the actual event.)
Monday, December 6, 2010
Mortgage rates begin week flat as bond market corrects from oversold levels
Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.
Short-term (No Change) - At any point less than 15 days, I would LOCK. More than 15 days, I would recommend LOCKING unless your risk tolerance permits calmness in the face of severe volatility. In this case, I would FLOAT and LOCK an ANY gains.
Long-term - (No Change) LOCK on ANY price improvements as windows for improvement will be small and fleeting.
The week ahead for economic data that can affect mortgage interest rates
Tuesday
- $32 Billion 3 Year Treasury Auction
- October Consumer Credit
Wednesday
- Weekly MBA Mortgage Applications
- $21 Billion 10 Year Treasury Auction
Thursday
- Weekly Jobless Claims
- October Wholesale Inventories
- $13 Billion 30 Year Treasury Auction
Friday
- October Trade Balance
- November Import and Export Prices
- University of Michigan Mid-Month Consumer Sentiment Report
- November Treasury Budget
Friday, December 3, 2010
This week, I do believe that a little levity is in order. So, without further ado:
A large passenger train was crossing the country. After they had gone some distance, one of the two engines broke down.
“No problem,” the engineer thought and carried on at half power. Farther on down the line, the other engine broke down and the train came to a standstill.
The engineer decided he should inform the passengers about why the train had stopped, and made the following announcement, “Ladies and gentlemen, I have some good news and some bad news. The bad news is that both engines have failed, and we will be stuck here for some time. The good news is that you’re not in an airplane.”
As you can likely guess, the bond market is the train and the engines driving the low rates have definitely broken down.
Please note that after this article was posted, employment data was released and the results greatly disappointed. Rates, however, have not reacted favorably as we would generally expect.
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