California is considered to be a declining market

Look at today’s rate sheet! Rates are low, low, low!

There has been a rather substantial change this week to mortgage lending and our industry as a whole where Fannie and Freddie Mac are changing their credit policies and changing the low to value requirements for borrowers. These changes are based on the purchase price and not the appraised value. Loan to value is being slashed by 5% right off the top. What this means is that Fannie and Freddie Mac, the only people buying mortgage backed securities, are saying that the programs borrowers qualify must to be reduced by 5%. For example, if the loan to value was 80% the LTV must be reduced by 5% to 75%.

I am not telling you this to be negative, but it is a reality of the current market. The state of California is considered to be a declining market and applies on a case by case basis, but call YOUR lender to get more information. Below I have included a link regarding this information. Please call me with any questions and I’ll do my best to answer them.

I am NEVER too busy for any of your referrals! Have a wonderful weekend!

http://www.washingtonpost.com/wp-dyn/content/article/2008/01/12/AR2008011200269.html

Countrywide and Bank of America

Well the rumors are true that Countrywide and Bank of America will soon be partners as Bank of America announced yesterday that they will by Countrywide for $4 billion. This comes as no surprise as Countrywide’s portfolio is reporting a delinquency rate over 7% up from 4%, and after letting nearly 11,000 employees go.

Mortgage back bonds are still getting better this week helping to rally mortgage pricing after news this week from Ben Bernake that the Fed will continue to cut rates. New fed target rate is 2.75 down from 4.25 today. The cuts will help Home Equity line interest rates tied to the Prime rate, credit cards, and other consumer driven interest rates. Stay tuned for more information.

Working for a Living

This week we are still looking at the jobs report and its effects on the stock market. It has caused some concern that the Labor Department could still revise the report lower. Mortgage bonds are still at a two year low.

Economists are still looking at a possible rate cut in coming meetings to help the slowing economy; however, with inflation raising it is unlikely future cuts will happen.

There are tips in today’s update for you to review regarding who is taking the losses in the market and what you can do to protect yourself with home loan rates and great advice regarding your credit cards. I hope this information helps you with your financial planning.

If you are a home owner and have an adjustable rate mortgage, 30 year fixed, or pay option ARM, and are looking to lock in a low rate give me a call and ask me about a NO POINTS AND NO FEES REFINANCE. It's a great time to get locked in. Looking forward to hearing from you!

Getting back to work

Happy New Year!

Hope you had a great week getting back to work. Check out today’s rate sheet attached in PDF format. Mortgage Bond pricing is at the best levels since September 2005. This result comes from a Jobs report that showed only 18,000 news jobs created when expectations were 70,000. With the unemployment rate up a tick to 5.0% from 4.7% the weaker economic news is stirring the markets and improving bond pricing. If you have buyers or past clients interested in purchase or refinance money NOW is a great time. Let me help you get them pre-qualified and provide them the information needed to decide on the best loan program for their situation.

I am NEVER too busy for any of your referrals! Have a great weekend.

Happy New Year!

Happy New Year!

Well I’d say it’s about time… this week we are watching the geo-political environment with the assassination of Pakistani opposition leader Benazir Bhutto. This is a great example of external forces and their effect on mortgage market. After loosing some ground in mortgage bonds earlier in the week we are back above the 50-day moving average which is good for pricing. New home sales were reported at 647,000 which came in less than expected at 715,000. This could also be a result of home sales which are typically a bit slower before the holidays.

Keep in mind this information is nationally based. There has been a pick up in loan applications and I hear a buzz in the market regarding contracts flying about. Have a VERY Happy New Year, be SAFE, and I look forward to speaking with you soon!

-Sean

Oh by the way, I’m NEVER too busy for any of your purchase or refinance mortgage referrals and I’ll be sure to treat them like family.