It’s been an exciting week in the bond market

It’s been an exciting week in the bond market. The Fed announced its new target rate to be 0-0.25% and slashed the rate from 1% to 0.50% This cut to rates affects what banks lend banks overnight and any instrument tied the prime interest rate like home equity lines of credit and credit. This is a new historic low for the fed funds rates.

Mortgage interest rates are at an all time low and it is a great time to think about refinancing. If you or someone you know can save several hundred dollars a month and it didn’t cost anything or the costs were justified by the savings wouldn’t you want them to do it? Call me for details.

Fed Likely to Cut

http://www.cnbc.com/id/15840232?video=857378303

Mortgage Bonds are soaring higher

Mortgage Bonds are soaring higher on this weekend’s announcement that Fannie Mae and Freddie Mac will come under control of the government.

The government’s move to create a line of $200 billion to back all Fannie Mae and Freddie Mac loans at all costs is great news for homeowners. First, it ensures the continued liquidity of conforming loans nationwide and, second, it ensures that buyers of this type of Bond have a safe investment going forward. There’s no doubt that this will help the US housing market move through the current crunch that we’re in.

So far this morning, the news has lead to a nice rally in pricing. When combined with the break above the 200-Day Moving Average, this may lead to attractive rates. Therefore, I recommend floating for now.

Market Update

Market Update

Mortgage Bonds are trading higher this morning, despite a report that manufacturing in NY is stronger than anticipated.

Normally a better-than-expected economic report would be bad for Bond prices. However, the declining prices of oil, precious metals and other commodities have decreased inflationary pressures and have helped push Bonds higher so far today.

We got a rally late today for the better I recommend floating for now.

The Fed announced on Tuesday

The Fed announced on Tuesday that they have decided to keep the Fed Funds Rate at 2%, and released a statement that hinted they may not raise the Fed Funds Rate in the near future.

Down Payment Assistance (DPA) is being threatened

Hello Friends and Real Estate Professionals,
You may be aware that Down Payment Assistance (DPA) is being threatened and we only have a couple of days left to prevent this new legislation.
79% of all mortgage transactions year-to-date have been backed by FHA (Federal Housing Administration). Over 80% of these FHA transactions involved some form of seller funded DPA.
If this legislation is approved it will drastically affect, impede and reduce ALL of our abilities to buy, sell or lend on a home.
I would like to ask you all to help by clicking this link http://capwiz.com/nehemia/issues/alert/?alertid=11598811and taking 60 seconds to send out an email that will go to HUD, Congress and our Local Senate Representative. I believe your efforts will help defeat a law that will facilitate a collapse of our local and national industry.
On a side note, while the legislation says no more DPA after Oct 1st 2008, please be aware that we must stipulate the last day of funding if the bill passes be August 29th in order to give time to get the loans sold off of bank lines.
To all Realtors:
We must get these people into houses by August 29th(CORRECTION SEPTEMBER 29TH) to be safe. Franklin Loan Center is a direct endorsement lender for FHA loans, which means we can underwrite FHA loans and prepare loan documents in our local offices. This will save your clients valuable time. Time is running out so please act now and get your FHA buyers off the fence and into their new home before it’s too late. Once Down Payment Assistance is gone, it’s gone. Feel free to call us so we can explain this and forward the information to your buyers to ensure they understand the magnitude of this legislation. It would be our pleasure to help in any way we can; be it marketing your listings, helping your buyers qualify for a loan or simply being an information resource for you.

Last weeks rates improved slightly

Last weeks rates improved slightly as bonds tried to rebound off the previous weeks losses. Philly Fed President is continuing to warn about inflation and it’s possible that fed rate hikes will be coming shortly. This is a good thing for the bond market because mortgage rates should come down. Following that your wallets at the pump should hopefully stay full. See the newsletter below to get some helpful gas saving tips that you can pass along to your clients.

Make it a great week!

Fed held constant the Fed Funds rate

Last week the Fed held constant the Fed Funds rate, which had investors ponder the stability of the market. We know the Fed should hike rates to hedge inflation, but the question is will they and when? As the Fed was cutting rates remember I warned that mortgage rates would go up and hey have. I want to mention that if the Fed hikes rates mortgage pricing will get better. I’ll keep you informed as I get the information.

It’s a short week for the Fourth of July weekend. I hope you are safe while enjoying the festivities!

-Sean

The Fed kept interest rates

Rates closed the week down on some products and flat on other.

·The market is still volatile and rates are changing everyday.
·The Fed kept interest rates at 2.00% and 5.00% for the prime rate. This is what I predicted last week would happen.
·Mortgage pricing went on a rally today and things are looking pretty good at week’s end. We are currently testing levels of support. I would encourage your clients who may be purchasing in the next 30-45 days to get locked in if they have an offer accepted. Things are getting good.
·Mortgages have shifted a lot in the “jumbo” market and make sure you see the difference for the 30 year fix and 5 year ARM for JUMBO loans!

I am your FHA expert!

Friends,

We are off to a great start this week with the up-coming reports for the market. The Fed will be talking about plans to maintain the fed funds rate where it is or to hike it hedging inflation. Remember, if the Fed increase the rates it is good for mortgage pricing and interest rates will go down.

How often do you need to change your oil for the car? It depends, so see the newsletter below.

Oh by the way, I’m never to busy for any of your purchase or refinance mortgage referrals! I am your FHA expert! Make it a great week!

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!

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!

Bear Stearns Trials

I hope you’re having a wonderful Good Friday!

The Fed, this week, again lowered the Fed funds rate by another 0.75% to 2.25% making the prime rate now 5.25%! This is good news for consumers and holders of Home Equity Lines of Credit that are tied to the Prime interest rate.

Last Friday the Fed reduced the discount rate by 0.25%. This came as a surprise as Friday (after-hours) rate decreases by the Fed haven’t happened in the last 30 years. The reason they did this was to help Bear Stearns and their investors.

Attached is this week’s rate update! Please call with any questions and remember I’m never too busy for any of your referrals! Make it a great and productive weekend!