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DATE
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Mortgage
Rates Information
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9/11/09
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2:30 pm.
The dollar has shown weakening and
the Fed continues to lend heavily
to banks. The markets have been
dropping and investors are moving
into the bond market. This is good
news for those looking to refinance
or buy a home. Mortgage rates had
been trending upwards but this economic
data and an increase in jobless
claims have shown that the economy
is not recovering but more leveling
off. As the markets stabilize but
do not recover at a fast rate the
rates on home loans should stay
steady and even drop.
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7/21/09
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12:12 pm.
Rates have been holding stable.
30 yr rates have been staying between
5.25 and 5.5 over the last few weeks
after hitting lows within the 4s.
The Fed does not appear to anxious
to raise rates but banks appear
to be willing to keep pushing them
up as they attempt to raise revenues.
Most new economic data shows that
the economy is still sluggish and
unemployyemnt is holding steady.
Recent data has shown that banks'
revenues have been on the rise and
several large institutions are beginning
to pay back TARP money. Expect rates
to keep on a steady trend of moving
upward and then dipping for a day
or so as market data fluctuates..
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6/17/09
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4:48 pm. Consumer
prices rose less than expected and
oil prices have eased after their
run-up. This shows a mixed bag of
data. It looks like inflation is
in check which may mean that rate
increases by the Fed are not in
the near future. But at the same
time mortgage rates have risen.
Due in large part to the market's
belief that the economy has bottomed
and, although it has not rebounded,
the worse is over. This may be true
or it may not. As the markets' try
and predict it still appears that
there is a credit crunch and more
large companies go in to BK. It
is a good bet that interest rates
will still creep up as Banks' try
and raise the return on the money
lent in order to reap profits to
pay back the money they borrowed.
Expect rates to jump high on any
good economic data..
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5/17/09
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2:59 am. For
the last several weeks the Markets
have largely been UP! That may be
a good sign that the bottom had
arrived and now we are in a holding
pattern. It looks like Banks are
showing some revenue. Largely spurred
on by increases in fees, good credit
borrowers refinancing and the Government
largely absorbing loses by lending
mass capital. So mortgage rates
have been bouncing in low 5% range
down to the mid 4%. It all depends
on the day you look to lock in your
rate. The news sounds good but remember,
refinancing is largely going on
for the perfect credit borrowers
and for those borrowers who are
slightly over on the balance to
value of the home (and have great
credit). So the markets still are
not removing the large surplus of
home inventory. Once home inventory
starts to become absorbed then
new construction can begin. At that
point expect rates to surge higher
as banks attempt to reap higher
revenue from lending. As for now,
rates are bouncing but largely staying
low.
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4/16/09
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6:32 am. Banks
appear to be showing signs that
they have stabilized. Some are offering
to re-pay some of the money's lent
by tax payers. However, the banks
are still tentative to lend. Specifically
they are requiring real good credit
and even at that some borrowers still
cannot get loans. The credit freeze
is still on but lets hope it is
thawing. Also, it appears that home
values for resale's may have finally
started to stabilize. New home builds
are still slow but it appears that
they maybe at a bottom. That
is good news! Of course a bottom
means things are still not good
but at least they are not still
plummeting. Expect mortgages and
related home products to stay at
their current rates. Not much movement
is expected in home lending rates.
What can be expected is that banks
will begin to charge higher rates
on consumer rates on credit cards
and other personal loans as they
try to rake in the money while they
are currently getting it from the
government dirt cheap.
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3/23/09
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6:32 am. Once
again we are in uncharted territory.
the Fed has put another trillion
dollars into the banking systems
to help loosen up credit. They have
also created a new policy of buying
bad assets (foreclosures) from banks.
This should create a sorta wholesale
bad credit sales department run
by the Federal Government. It will
be interesting to see if this works.
What will work, is that bad debt
will be removed from the banks and
the banks will have loads of cash
to lend.
What
will this mean? Well I would expect
rates to drop. Likely into the 4.5%
range with in the the next few weeks.
Of course there will be fluctuatiosn
based on the bond markets but if
you look at the sitution as a whole,
At this point, there is no reason
to fear bank failures. The government
appears to be willing to do vitually
anything to back up bad banks. So
why would the banks not give out
loans? No real reason. I will even
suggest that within two years the
'bad credit' loans will be back
(ok maybe that was a stretch).
With
all that' said. Get your loan app
in so that you can lock in when
the rates hit the point you want.
It would be hard to get a lock-in
if the loan officer does not have
your application!
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3/7/09
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1:19 am. So in the news... nothing that we did not expect. Huge
layoffs which means record unemployment
that is higher than 8%. The markets
have continued to tumbled. The DOW broke
the 'bottom' of 7500 and it does
not seem to be rebounding. Consumers
are worried and the Government passed
yet another stimulus package.
It
should be well known by now that
banks seem unwilling to lend. They
are holding on to the remaining
capital that they have. If you can
qualify for a loan the good news
is rates have moved back down. Here
are some tips to get that loan that
you want.
- Make
sure your credit score is in
the 700's
- If
you have a part time job you
need to have had it for a minimum
of 2 years to count that as
income for qualifying.
- Try
to have not only 5% (minimum)
down payment but 20% would be
the best.
- Also
try to have atleast 3 - 6 months
of minimum reserves in the bank
to cover the new mortgage payments
and bills.
We know
the items listed above seem hard
but really they are meant not just
to help the banks but also to help
you as a borrower. They can be considered
the 'good old fashion' way of getting
a loan. The economic turmoil will
eventually pass but the key to being
a homeowner is to not get in over
your head. Use those tips as general
guide to what you should atleast
think about before going for a loan.
A
qualified loan officer can give
you more details about your specific
needs
If
you are in the market for a refinance,
rates are low, but still you need
to qualify and having reserves,
a solid income and great credit
score will let you take advantage
of these record low rates and in
the years to come you will have
a great low fixed rate as the economy
recovers and rates increase.
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2/11/09
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5:55 pm. An
agreement seems to finally have
been reached on the economic stimulus
package. This is good news for stocks
and banks. Maybe not so good for
the mortgage rate shoppers. As stocks
rise on the news so will interest
rates. It does not look like a dramatic
rise but a rise non the less.
Oil
prices have once again retreated
but it does not appear to be affecting
the price at the pump. This is bad
news. We need the prices to go down
to keep the consumer safe and free
to spend cash.
So
it is a mixed bag of data. Look
for rates to be inching upwards.
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1/27/09
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4:11 pm. The
economy shows some signs of economic
recovery. Mostly in the earnings
sectors of some companies. It is
not like the companies are exceeding
expectations but they are at least
they are meeting them. That is a
good sign. Also oil prices are staying
low and with the shrinking economy
the mortgage rates have began to
go back down from their recent upwards
trend.
However,
reality is massive layoffs and most
companies struggling. The market
has become very unstable again.
But on the housing market a shopper
has the best of both worlds. Record
low prices and record low rates.
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1/15/09
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9:49 pm. It
has been a busy two weeks to start
off the new year! The economic bailout
appears to be helping....a little.
The
Banks still appear to eating loses
from the foreclosure boom and the
fallout from scandals. But the Fed
has started its pressure to help
banks lend. As a result the 15 year
rates have finally moved below the
5.0% mark and the 30 year rates
have also dipped. This rate drop
has spurred on the refinance boom.
Applications for refi's have been
almost 14% from the previous month.
Along with the mortgage rate reduction
savings, gas prices have continued
to go down.
Some
hidden data has also helped the
market reduce rate. It appears that
key indicators show that inflation
may not be around... that help keep
rates low.
So
yes, there are still banks looking
for money from the Fed, the rest
of the 350 billion government bailout
has been approved and a stimulus
package of almost a trillion is
on the table.... but look at the
bright side. Rates are dropping!
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1/01/09
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11:54 pm.
Happy New Year... Lets all rejoice
that last year is over because the
past few months have been rather
tough, to say the least, on the
homeowner. But it appears that job
losses may be less than expect.
Not by much, but still less. Also
the Banks have unfrozen lending
a little. Many Banks are currently
so backed up with refinances that
it is taking up to 90 days to get
a simple rate / term refi done.
This
is good news. Refinancing means
that consumers will lower their
monthly payments freeing up some
cash. They may also skip a
months mortgage payment and may
also get back their escrows. This
could mean thousands back in the
pockets of the homeowners right
of the bat. Also a long term savings
with the reduced interest rates.
So
keep an eye on the market. This
issue may not be that rates are
jumping it may be that the "rate
locks" will be expensive because
the banks are backing up on refi's
and making them take second position
to purchases.
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12/25/08
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12:19 am. The
Holidays have arrived and along
with them bleak economic data. It
looks like retails sales will be
down along with new home sales.
This includes new home orders and
current existing home sales. The
markets are scared of this data
and still looking or shelter. Most
economist expect the slow down to
continue and for jobless claims
to increase while companies look
to cut employees in order to stay
in the black.
The
good signs for the consumer are
few but the ones that have shown
up as of lately have been friendly.
Gas prices have dropped dramatically.
As the price per barrel has decreased
below the $40 mark. This can help
free up some cash in the consumers
wallet which may help support the
lagging economy. Even more interesting
is the shift in rates. After decades
of watching the mortgage market
this may be the first time in recent
memory that the 30 year mortgage
rates are actually lower than the
15 year rates. This can occur because
Banks are looking for a long stability
investment in lending. Shorter term
loans have many competitive products
such as municiple bonds and treasuries
all fighting to get the same investors.
The 30 year mortgage buyers have
less options.
There
are other factors but it appears
the main final push has been pressure
from the FED on the banks to lend.
If the rates keep dropping there
may just be a chance the homeowner
will be able to refinance, save
thousands on interest, free up cash
and help boost the economy. This
may be a rosier picture but it has
been done before and as long as
inflation stays in check and the
dollar holds its value then the
low rates should continue.
What
does this mean for the rate shopper.
Well the recent rules still appear
to apply. Expect the lending guidelines
to still require very good to excellent
credit. Also, don't expect to get
a standard mortgage if you owe more
than your home is worth. (The fed
is working on a plan to help you)
. So if you are the borrower with
good credit, strong cash reserves
and equity available - refinancing
now may be a great time to lock
into the lowest 30 year rates in
3 decades. So keep your eye on the
rates. The 15 year should be dropping
soon and in some situations you
may be able to lock in a 30 year
below 5%...that is if you catch
the markets at the right moment
in time! . Happy Holidays and lets
look forward to great New Year of
low rates and economic recovery
spurred on by the consumer and not
by endless bailouts.
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12/15/08
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11:11 pm. Stocks
have been unsteady as they try and
see their way through poor data
mixed with government bailouts.
The markets are on edge waiting
to see if the bailouts help improve
the economy. The Home values issue
seems to be weighing heavy on consumers.
However, It appears that the majority
of homes' that lost value may not
regain it for several years if not
decades. The good news it that most
homes within the central and Midwest
never really over valued themselves
leaving the over values to mostly
coastal cities. This will allow
many Americans to take advantage
of the dropping mortgage rate trends
of recent weeks.
The
Fed is looking for ways to loosen
the credit world by attempting to
hit record low Fed Fund rates. This
may still not unfreeze many lenders
but still this week shows a drop
in 30 and 15 year mortgage rates
with a trend moving downwards. If
rates can get down the market may
start to move.
It
seems inevitable that the auto industry
will get a bailout of some sort
and the banks will loosen up sometime.
If both are going ton happen then
lets hope it occurs sooner than
later. Once again, this week would
be a good time to start thinking
about reducing that home rate if
your credit is strong and you are
looking to loosen up cash flow.
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12/9/08
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2:25 pm.
Looks like the bailouts will continue...atleast
that is what wallstreet, the car
companies and the news network appear
to say. It seems likely that the
money will go to the auto companies.
But what the Fed is missing is that the
congress will have to push the financing
department of these auto companies to
lend more to auto buyers. It can't
be clearer.......if we have any
hope of recovery we need lower rates
and we need to lend to people and
not just institutions. The banks
will have to be forced to
lend. OK that was a bit much. But
the news of jobs loses continuing
and home sales slumping must force
these banks to wake up.
It
appears that the good news is the
slipping oil prices. Atleast the
consumer may get help with lower
energy cost over the winter.
It
looks likely that rates are holding
at a low point but not as low as
they should be. It is likely a good
time now to start seeing what you
can save by getting some quotes
on refinancing.
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12/6/08
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1:19 am.
The economic slow down continues.
Well that is obvious at this point.
Lets take a deeper look at some
data.
Job
reports came in at they are at the
lowest in 3 decades. Nearly 10%
of homes face foreclosure. More
than twenty banks have failed. The
Dow has lost nearly 10,000 points.
Retailers see a reduced number in
seasonal sales ( lowest in
decades). So the slow down is clear.
But it appears that as of recent
data this slow down has been going
on for over a year. A recession
is here...well it has been for awhile
and that may be the light at the
end of the tunnel. It appears the
markets are finally accepting that
this economic down turn is not a
new event but it is a long term
event that has been going on. The
bottom is important. Of course the
jobs will not come back fast nor
will confidence but it gives hope
that maybe the worst has past. And
that is light. If the worse has
come and the Government has finally
reacted, maybe, it is time for the
economy to turn the corner.
So
what will that take to happen and
how will rates be affected. An important
thing to look at is the trends with
market mortgage rates. The Fed has
been handing out money to the banks.
It has lowered the rate it charges
them. However, for a long time now
the Banks have not allowed that
reduction in rates to be reflected
to the consumers. Well it appears
that they can no longer ignore the
need to reduce rates and ease up
lending. Now that the tax payer
are bailing out the banks the
banks have to start answering to
them. They will basically be obligated
(by congressional inquiries) to
start reducing 30 year rates. If
rates can be moved down to about
4.5% that may just spur a rush to
savings. Many good credit borrowers
will take advantage of a rate reduction
is rates go lower. This could potentially
be 40% - 60% of mortgage owners.
If the consumers are finally offered
these lower rates many consumers
may qualify for loans and many may
save $1000s a year in payments and
interest. This is all good news.
So keep an eye on rates. If they
drop that may be the nudge needed
to help kick start the economy.
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11/13/08
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2:09 am.
Rates have been holding steady but
banks are finally starting to loosen
up on lending. Don't expect them
to start throwing money around.
They are more likely to be willing
to work with current borrowers in
trouble and lend to those new borrowers
with strong credit history.
The
economic bail out has lead to banks
getting low interest rate loans
and just holding on to the cash.
Now it looks like the Fed is pressuring
the banks to begin to lend. A new loan
product has arrived that will allow
current borrowers 3 months + behind
on a loan to re - negotiate payments
to about 38% of their monthly income.
This could save many borrowers from
foreclosures and many banks from
having to become real estate holding
companies.
Don't
expect rates to go down much. They
have basically been in a holding
pattern as banks are still unwilling
to reduce rates to help spur on
borrowing. The Fed may have to start
twisting arms to get the rates to
drop a couple of points to help
stimulate borrowing.
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10/10/08
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2:09 am.
What a past several weeks we
have seen in the markets. The economic
ramifications of the poor trading
and lending practices can be felt
worldwide. Mortgage rates have held
steady but the problem most borrowers
will see is that poor credit to
middle credit scoring people will
find it hard to get a loan. Even
the great credit borrowers will
likely get loans but they may pay
a premium on the rate.
Remember,
It is important not to panic (easier
said than done) The market is experiencing
a massive correction. the Federal
Government can only do so much and
often there actions can initially
hurt the markets. The fact that
other countries markets are in the
negative because of America's down
turn actually should help us. If
the economy only slumped in America
than the dollar would keep being
devalued and the Fed may be forced
to raise rates to avoid uncontrollable
inflation. But since the Yen and
Euro are losing value, inflation
is largely held in check. Rates
can comfortably stay low in an effort
to help get banks lending again.
Also,
as people fear the markets and begin
to withdrawal, accepting loses,
they tend to invest in savings account
that give steady but small returns.
So as this capital changes from
the market to the banks in the form
of savings, bank will again have
capital to lend. Likely just to
great credit borrowers.
This
may have been a rosy picture but
you have to keep in mind that with
all down turns in the markets there
is a recovery. A recovery will happen.
Hopefully it will be slow and steady.
The massive down turn happened,
the best part of it is that it happened
fast and was not a slow bleed. The
bottom should be soon and we will
be able to tell when investors
begin to run back to the American
markets because foreign markets
are no safe haven and American'
markets can offer great values.
Hang
in there! It will come back.
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