This is going to be an important week in the financial sector. There is a Fed meeting on Wednesday where we expect the Fed to cut another 0.25% to the Fed Funds rate. We also have the PCE index coming out on Thursday. Remember the PCE is the best indicator of inflation. The most important news though is how the Fed is treating inflation and their words in the report regarding inflation.
Investors feel like this may be the end of the credit crunch, which is certainly good news, and several banks are getting large cash infusions from investors which shows market confidence.
Ready for Spring Cleaning? There are also tips this week on how to do your spring cleaning.
Written by MMG...
In other headlines, Existing Home Sales met expectations, but New Home Sales numbers for March were worse than expected, possibly due to the large increase in the costs for materials needed to construct a home. But then there was a change in climate on Friday, as inflation news from around the World created some strong adverse headwinds for Bonds and home loan rates. Overall, home loan rates ended the volatile week unchanged to slightly higher.
Now is still a good time to take advantage of historically low home loan rates before more inflation talk pushes them higher. I'm always here to help advise you, your friends, and your colleagues...no matter the season!
After last week's relatively slow economic news calendar, things will heat up this week with several events that have the potential to move the market. On Wednesday, the Fed will announce their interest rate decision...and then the very next day, the Fed's most favored gauge of inflation will be released, the Personal Consumption Expenditure Index (PCE). It will be interesting to play armchair quarterback to the Fed's decision, and watch what the inflation numbers reveal! And let's not forget, on Friday we will see the important Jobs Report, where early estimates are for a net loss of 80,000 jobs.
As you can see in the chart below, Bond prices ended the week between a technical "floor of support" at the 200-day Moving Average and an overhead "ceiling of resistance" at the 50-day Moving Average...and that ceiling might just stop any improvement for Bonds and home loan rates for the short term, unless the news of the week is really Bond-friendly. We'll have to wait and see if the week's upcoming news leads to calm or stormy times ahead.
SPRING HAS SPRUNG...
...and that means it's time to wash away those winter blues! In fact, according to the Soap and Detergent Association - did you even know there was such a thing? - three-quarters of Americans engage in spring-cleaning. In fact, their surveys indicated that more than 80 percent of people who spring clean agree that it helps them save time throughout the year, and 96 percent of people donate or discard items during their spring-cleaning.
But the advantages can go much further than that. Check out these top ten spring-cleaning activities, compiled by www.medicinenet.com, that can help make your home healthier and safer:
Thoroughly dust your home. Also clean any air conditioning and heating filters, ducts, and vents to minimize pollens and other airborne allergens.
Organize your medicine cabinet. Throw away expired medications and old prescription medicines that you no longer need.
Inventory your garage and basement. Get rid of any old paint, thinners, oils, solvents, stains, and other similar items you no longer need. Note: You may need to take these items to a hazardous waste drop off center.
Inventory under your sinks and around your house. Dispose of old or potentially toxic cleaning products.
Have your chimney professionally cleaned. This will help you lessen the chances of carbon monoxide exposure when the cold weather returns.
Clean all mold and mildew from bathrooms and other damp areas. Use non-toxic cleaning products.
Check your rugs. Make sure that rugs on bare floors have non-skid mats and that older or dusty mats are either washed or replaced.
Inspect outdoor playground equipment. Make sure that all elements are sturdy and safe, especially guardrails, protruding bolts, and other potential sources of injury.
Change your batteries. Do so for both smoke detectors and carbon monoxide detectors.
Collect old batteries throughout the house for disposal. Dispose of them in a battery recycling or hazardous waste center.
And make it easy on yourself - take it one room, one cleaning task at a time. You'll be more likely to accomplish more if you tackle each spring-cleaning project separately. And that's great advice...any time of year!
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Monday, April 28, 2008
Important week in the financial sector
This is going to be an important week in the financial sector. There is a Fed meeting on Wednesday where we expect the Fed to cut another 0.25% to the Fed Funds rate. We also have the PCE index coming out on Thursday. Remember the PCE is the best indicator of inflation. The most important news though is how the Fed is treating inflation and their words in the report regarding inflation.
Investors feel like this may be the end of the credit crunch, which is certainly good news, and several banks are getting large cash infusions from investors which shows market confidence.
Ready for Spring Cleaning? There are also tips this week on how to do your spring cleaning.
Make it a great week!
Investors feel like this may be the end of the credit crunch, which is certainly good news, and several banks are getting large cash infusions from investors which shows market confidence.
Ready for Spring Cleaning? There are also tips this week on how to do your spring cleaning.
Make it a great week!
Friday, April 25, 2008
Market Update April 25th
Market Update April 25th:
Rates have certainly been busy moving up and down, but no worries! This is just part of the market. Rates don’t typically move this much, but in this market anything can happen. Remember what goes up must go down and it’s all part of the market game. Stay tuned for more information.
· Wednesday the Fed has a meeting schedule and from what I understand there is a 75% chance the Fed will cut another 0.25% to the Fed funds rate
· Interest rates are down by about 0.125% this week when compared to last week
· Your client should float at least until Monday or Tuesday because rates are usually get a little better right before the Fed meeting
Make it a great weekend! Oh by the way, I’m NEVER too busy for any of your referrals.
Rates have certainly been busy moving up and down, but no worries! This is just part of the market. Rates don’t typically move this much, but in this market anything can happen. Remember what goes up must go down and it’s all part of the market game. Stay tuned for more information.
· Wednesday the Fed has a meeting schedule and from what I understand there is a 75% chance the Fed will cut another 0.25% to the Fed funds rate
· Interest rates are down by about 0.125% this week when compared to last week
· Your client should float at least until Monday or Tuesday because rates are usually get a little better right before the Fed meeting
Make it a great weekend! Oh by the way, I’m NEVER too busy for any of your referrals.
Sunday, April 20, 2008
Nehemiah Foundation Sellers Program
Nehemiah Foundation Sellers Program
Written by Sean La Rue | Franklin Loan Center | Loan Officer | www.MortgageDitty.com
Phone: 760-835-5663 | Email: slarue@franklinlc.com | April 20, 2008
Q. I know it’s a great time to buy a house to take advantage of the market, but I don’t have a down payment. My lender says I a need 3-5% down payment. How can I buy?
A. You can use an FHA loan to receive down payment assistance from several non-profit organizations. Specifically, the one I like to use is called Nehemiah. For more information see www.getdownpayment.com. Your real estate agent will negotiate that the seller contributes to this program. Nehemiah, combined with FHA, allow you to buy a home with no money down.
Q. My loan officer told me that I need to have 3 months of Principal, Interest, Tax and Insurance (PITI) reserve in my bank. Do I have to have this money in the bank?
A. Some conventional loan programs require this but if you are financing through FHA and are buying a single-family residence or duplex there is no reserve requirement.
Q. I’ve heard about the sub-prime credit programs are easy financing right now, but do I need a perfect credit report to qualify?
A. FHA financing is not a sub-prime cure-all. Although you don’t have to have perfect credit, FHA allows down to a 581 FICO. I can help you fix your credit. Call me to schedule an appointment.
Q. How much are the closing costs?
A. Closing costs can include points and title and escrow, prepaid interest, etc. Call for a free good faith estimate. Sales Price determines closing costs. Closing costs could also be determined by your choice to escrow taxes and insurance. Ask for Sean La Rue YOUR Loan Professional at 760-835-5663.
Q. I’m buying an investment home or Second Home. Do I qualify for FHA financing?
A. FHA financing is only for primary residence buyers. Call for up to date loan requirements.
Q. I want to write an offer. What is the best way to write up the purchase agreement? What documentation do I need?
A. Go to www.MortgageDitty.com and look for Nehemiah Program Sellers Form.
Friday, April 18, 2008
Market Update April 18th
Market Update April 18th:
This morning’s rally in the bond market today has been good considering rising interest rates earlier in the week. Mortgage pricing went down for the day.
The chances of 50 basis points of easing at the FOMC meeting April 30 have evaporated and are now chomping away at the 25 basis point cut signaling that the credit crisis could be near the end.
***Do you know someone who wants a mortgage at less than 5%? Call me for details.***
***100% financing to $500,000? Ask me how.***
See the articles below: The big news for the day was Google reports a 30% profit increase which blew most analyst projects out of the water.
http://www.mydesert.com/apps/pbcs.dll/article?AID=/20080412/BUSINESS04/804120312/1043/business04
http://money.cnn.com/2008/04/18/markets/markets_newyork/index.htm?postversion=2008041817
Have a great weekend and by the way, I’m never too busy for any of your mortgage referrals!
This morning’s rally in the bond market today has been good considering rising interest rates earlier in the week. Mortgage pricing went down for the day.
The chances of 50 basis points of easing at the FOMC meeting April 30 have evaporated and are now chomping away at the 25 basis point cut signaling that the credit crisis could be near the end.
***Do you know someone who wants a mortgage at less than 5%? Call me for details.***
***100% financing to $500,000? Ask me how.***
See the articles below: The big news for the day was Google reports a 30% profit increase which blew most analyst projects out of the water.
http://www.mydesert.com/apps/pbcs.dll/article?AID=/20080412/BUSINESS04/804120312/1043/business04
http://money.cnn.com/2008/04/18/markets/markets_newyork/index.htm?postversion=2008041817
Have a great weekend and by the way, I’m never too busy for any of your mortgage referrals!
Tuesday, April 15, 2008
Last Week in Review
Written by Mortgage Market Guide...
For the week of Apr 14, 2008 --- Vol. 6, Issue 16
Last Week in Review
"IT REQUIRES A GREAT DEAL OF BOLDNESS AND A GREAT DEAL OF CAUTION TO MAKE A GREAT FORTUNE." ~ Ralph Waldo Emerson. And a great deal of caution was definitely important last week, as "earnings season" began on Wall Street. First quarter earnings for Stocks got off to a bit of a rough start, with disappointing news from aluminum company Alcoa - always the first in line to report. And General Electric surprised to the downside on Friday, with worse than expected earnings and comments on future earnings, cautioning they'd likely be lower than previously thought. The Stock market didn't like the negative tone and lost some ground, while Bonds moved both up and down during the week - hurt by some inflationary fears, but helped by cash coming over from Stocks. For the week overall, home loan rates ended up close to where they began.
In other news last week, "Meeting Minutes" from the March 18th Fed meeting revealed that infamous Fed Presidents Richard "Loose Lips" Fisher and Charlie Plosser both dissented from the recent decision to cut the Fed Funds Rate, stating that "inflation expectations could potentially become unhinged, if the Fed continues to lower the Fed Funds Rate in the current environment." Bold comments from two who clearly believe caution regarding inflation is of the utmost importance.
And caution, rather than confidence, seems to be the word of the moment, as Consumer Sentiment for April was reported far below expectations, representing a 26-yr low for the index. This very ugly reading suggests that consumers may be hesitant to make large purchases, which does not bode well for future economic prospects.
Despite the dark cloud cast from the negative economic news, the silver lining is that home loan rates are once again near levels not seen since mid-2005. But remember, these low rates can change quickly. To see how you may benefit from the current market conditions, feel free to contact me.
SPEAKING OF GREAT FORTUNES, ARE YOU EXPECTING A REFUND BACK FROM THE IRS THIS YEAR? OR ARE YOU ONE OF THE MILLIONS WHO HAVEN'T FILED YET? CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME IMPORTANT LAST-MINUTE TAX TIPS!
Forecast for the Week
And with the word "caution" in mind...there are several reports due this week which could impact the markets and home loan rates. Monday's Retail Sales Report will kick-off the week with some potential for volatility, and Wednesday will bring the inflation measuring Consumer Price Index, as well as a read on the housing market via the Housing Starts and Building Permits Report.
Bonds continue to bounce around in a wide range - and remember, when Bond prices move higher, home loan rates move lower...and vice versa. The chart below shows how Bond prices are recently moving between a floor of support at the 50-day Moving Average, and an overhead ceiling representing recent price "highs".
So stay tuned - if this week's news turns out to be as negative as it has of late, Bond prices and home loan rates could find a bit more improvement.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday Apr 11, 2008)
The Mortgage Market View...
TAX TIME IS HERE AGAIN...
"I shall never use profanity...except in discussing house rent and taxes." ~Mark Twain. April 15 is just a few days away...and hopefully this year's tax season hasn't caused too much profanity in your household. Of course it's always wise to be careful about criticizing the IRS, but no matter what you feel like saying about them at the moment, they have compiled these helpful tips for last-minute filers:
Go electronic. The biggest advice the IRS has for last-minute filers is to file an e-return rather than a paper tax form. The IRS considers this the best step for ensuring that your return is complete and accurate.
Check it carefully - then check it again. If you choose to file a paper return, make sure you double-check your numbers and figures. The numbers to check most carefully are the identification numbers--usually Social Security numbers--for each person listed. Missing, illegible, or incorrect Social Security Numbers can reduce or delay a tax refund.
Also, you should double check that you have correctly calculated the refund or balance due, and that you have used the right figure from the tax table. If you are entitled to a refund this year, make sure that your financial institution's routing and account numbers are entered accurately. Incorrect numbers can cause the refund to be delayed or even misdirected.
Sign on the bottom line. Don't forget to sign and date your return. If you are filing a joint return, both spouses must sign it...even if only one had income. Also, anyone that you pay to help prepare your return must sign it as well.
Make payable to...? If you owe taxes this year, you must make the check out to "United States Treasury." Do not make the check out to "IRS." Your payment should be enclosed with the tax return or the Form 1040-V, Payment Voucher (if used), but do not attach your payment to either document.
Don't throw away those labels. If you choose to mail a paper return, use the peel-off label on the tax booklet. You can line through and make corrections right on the label if necessary. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.
Don't be late! By the April 15 due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.
For more information, as well as forms and publications, visit www.IRS.gov. Remember the official IRS governmental Web site is www.irs.gov. Don't be confused by internet sites that end in .com, .net, .org, or other designations instead of .gov. And for a complete checklist and a listing of some of the most common errors, visit http://www.irs.gov/taxtopics/tc303.html, or call the IRS's TeleTax number, 800-829-4477.
For the week of Apr 14, 2008 --- Vol. 6, Issue 16
Last Week in Review
"IT REQUIRES A GREAT DEAL OF BOLDNESS AND A GREAT DEAL OF CAUTION TO MAKE A GREAT FORTUNE." ~ Ralph Waldo Emerson. And a great deal of caution was definitely important last week, as "earnings season" began on Wall Street. First quarter earnings for Stocks got off to a bit of a rough start, with disappointing news from aluminum company Alcoa - always the first in line to report. And General Electric surprised to the downside on Friday, with worse than expected earnings and comments on future earnings, cautioning they'd likely be lower than previously thought. The Stock market didn't like the negative tone and lost some ground, while Bonds moved both up and down during the week - hurt by some inflationary fears, but helped by cash coming over from Stocks. For the week overall, home loan rates ended up close to where they began.
In other news last week, "Meeting Minutes" from the March 18th Fed meeting revealed that infamous Fed Presidents Richard "Loose Lips" Fisher and Charlie Plosser both dissented from the recent decision to cut the Fed Funds Rate, stating that "inflation expectations could potentially become unhinged, if the Fed continues to lower the Fed Funds Rate in the current environment." Bold comments from two who clearly believe caution regarding inflation is of the utmost importance.
And caution, rather than confidence, seems to be the word of the moment, as Consumer Sentiment for April was reported far below expectations, representing a 26-yr low for the index. This very ugly reading suggests that consumers may be hesitant to make large purchases, which does not bode well for future economic prospects.
Despite the dark cloud cast from the negative economic news, the silver lining is that home loan rates are once again near levels not seen since mid-2005. But remember, these low rates can change quickly. To see how you may benefit from the current market conditions, feel free to contact me.
SPEAKING OF GREAT FORTUNES, ARE YOU EXPECTING A REFUND BACK FROM THE IRS THIS YEAR? OR ARE YOU ONE OF THE MILLIONS WHO HAVEN'T FILED YET? CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME IMPORTANT LAST-MINUTE TAX TIPS!
Forecast for the Week
And with the word "caution" in mind...there are several reports due this week which could impact the markets and home loan rates. Monday's Retail Sales Report will kick-off the week with some potential for volatility, and Wednesday will bring the inflation measuring Consumer Price Index, as well as a read on the housing market via the Housing Starts and Building Permits Report.
Bonds continue to bounce around in a wide range - and remember, when Bond prices move higher, home loan rates move lower...and vice versa. The chart below shows how Bond prices are recently moving between a floor of support at the 50-day Moving Average, and an overhead ceiling representing recent price "highs".
So stay tuned - if this week's news turns out to be as negative as it has of late, Bond prices and home loan rates could find a bit more improvement.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday Apr 11, 2008)
The Mortgage Market View...
TAX TIME IS HERE AGAIN...
"I shall never use profanity...except in discussing house rent and taxes." ~Mark Twain. April 15 is just a few days away...and hopefully this year's tax season hasn't caused too much profanity in your household. Of course it's always wise to be careful about criticizing the IRS, but no matter what you feel like saying about them at the moment, they have compiled these helpful tips for last-minute filers:
Go electronic. The biggest advice the IRS has for last-minute filers is to file an e-return rather than a paper tax form. The IRS considers this the best step for ensuring that your return is complete and accurate.
Check it carefully - then check it again. If you choose to file a paper return, make sure you double-check your numbers and figures. The numbers to check most carefully are the identification numbers--usually Social Security numbers--for each person listed. Missing, illegible, or incorrect Social Security Numbers can reduce or delay a tax refund.
Also, you should double check that you have correctly calculated the refund or balance due, and that you have used the right figure from the tax table. If you are entitled to a refund this year, make sure that your financial institution's routing and account numbers are entered accurately. Incorrect numbers can cause the refund to be delayed or even misdirected.
Sign on the bottom line. Don't forget to sign and date your return. If you are filing a joint return, both spouses must sign it...even if only one had income. Also, anyone that you pay to help prepare your return must sign it as well.
Make payable to...? If you owe taxes this year, you must make the check out to "United States Treasury." Do not make the check out to "IRS." Your payment should be enclosed with the tax return or the Form 1040-V, Payment Voucher (if used), but do not attach your payment to either document.
Don't throw away those labels. If you choose to mail a paper return, use the peel-off label on the tax booklet. You can line through and make corrections right on the label if necessary. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.
Don't be late! By the April 15 due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.
For more information, as well as forms and publications, visit www.IRS.gov. Remember the official IRS governmental Web site is www.irs.gov. Don't be confused by internet sites that end in .com, .net, .org, or other designations instead of .gov. And for a complete checklist and a listing of some of the most common errors, visit http://www.irs.gov/taxtopics/tc303.html, or call the IRS's TeleTax number, 800-829-4477.
Friday, April 11, 2008
Market Update
Market Update:
Rates are ending stable this week. With mortgage back securities at the highest levels of the year. This is good for mortgage pricing.
GE annouced today that 1st quarter earnings are lower than expected and that future earnings will be lower than previously expected.
I recommend to float interest rates until next week to see what the stock market does in reaction to the GE reports.
***Do you know someone who wants a mortgage at less than 5%? Call me for details.***
***100% financing to $500,000? Ask me how.***
Rates are ending stable this week. With mortgage back securities at the highest levels of the year. This is good for mortgage pricing.
GE annouced today that 1st quarter earnings are lower than expected and that future earnings will be lower than previously expected.
I recommend to float interest rates until next week to see what the stock market does in reaction to the GE reports.
***Do you know someone who wants a mortgage at less than 5%? Call me for details.***
***100% financing to $500,000? Ask me how.***
Monday, April 7, 2008
Unemployment rate to nearly 5%
Last week we had a poor jobs report reading for March with a loss of 80,000 jobs which increased the unemployment rate to nearly 5%. Remember, the jobs report is the economic number with the biggest impact on mortgage rates.
Also, are you curious about your credit card debt? What should you keep your eyes peeled for? Have a productive week and make it great!
Oh by the way, I’m NEVER too busy for any of your mortgage referrals.
Also, are you curious about your credit card debt? What should you keep your eyes peeled for? Have a productive week and make it great!
Oh by the way, I’m NEVER too busy for any of your mortgage referrals.
Friday, April 4, 2008
Jobs Report
Attached you will find my current rate sheet for the weekend. These rates have been accumulated from, Chase, Wells Fargo, IndyMac, Countrywide, Citi Mortgage, Wachovia, Everbank, and Washington Mutual. I have handpicked the best rates from all these banks for the most popular loan programs, so that I can ensure you and your clients the very best deal.
Market Update:
Rates ended down for the week by 0.25% on Conforming Loans 30 Fix and stayed about the same for Jumbo 30 yr Fix
Today the jobs report came out with a revision of 80,000 job losses for March. This allows mortgage pricing to stay lower longer. It reported the biggest job loss in five years with the unemployment rate eclipsing the 5% mark.
The jobs report is the economic number with the biggest impact on mortgage rates.
Do you know someone who wants a mortgage at less than 5%? Call me for details.
100% financing to $500,000? Ask me how.
Have a great weekend and by the way, I’m never too busy for any of your mortgage referrals!
Market Update:
Rates ended down for the week by 0.25% on Conforming Loans 30 Fix and stayed about the same for Jumbo 30 yr Fix
Today the jobs report came out with a revision of 80,000 job losses for March. This allows mortgage pricing to stay lower longer. It reported the biggest job loss in five years with the unemployment rate eclipsing the 5% mark.
The jobs report is the economic number with the biggest impact on mortgage rates.
Do you know someone who wants a mortgage at less than 5%? Call me for details.
100% financing to $500,000? Ask me how.
Have a great weekend and by the way, I’m never too busy for any of your mortgage referrals!
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