Mortgage Market Update/Purchase and Refinance Mortgage info

[Tamalewagon]

How big of a change do you think you will see in the next 2 weeks if you had to guess?

Hard to say but my guess would be between .125% to .375% on the rates.

 

[Tamalewagon]

by Matthew Graham

Mortgage Rates Move Higher After Fed Tapering Announcement

DEC 18 2013, 5:32PM

Mortgage rates moved higher today after the Federal Reserve announced the first reduction in its purchases of Treasuries and MBS. The reduction in Treasuries hurts mortgage rates indirectly and the reduction in MBS ("mortgage-backed-securities") hurt rates directly as these are the securities that mortgages ultimately turn into.

This is a big deal and it has a big effect on the interest rate landscape. The cat is officially out of the bag. The slow, but steady improvement in the labor market and economy was enough to justify a decision to start a reduction in the MBS and TSY purchases by the Fed. The reduction in each was small enough that it helped prevent a large sell off many expected on an announcement of any "tapering." Maybe this gives some direction and a relative timetable to investor that were curious about how and at what pace they would do this? All in all the recent 2.8-2.9 range on the 10 year is still in play and the longer term 2.75-3.0 is very contained at this point. The trend is still not the rate shoppers friend and I recommend locking any small bounce back or improvements in pricing you see in the short term.

 

[Nord]

They are lowering the budget from 85 billion to 75 billion. I wonder if the effect will be that strong.

 

[Tamalewagon]

They are lowering the budget from 85 billion to 75 billion. I wonder if the effect will be that strong.

It is just the beginning. Rates are expected to climb to 5% and above in 2014. Get 'em while they're low.

 

[Tamalewagon]

Check out the new 2014 rates. Click on "products" at www.scottwenhe.com

Here is some insight as to what 2014 will bring:

by Matthew Graham

For Mortgage Rates, 2013 Marks Lift-Off From All-Time Lows

Dec 31 2013, 2:28PM

Mortgage rates were little-changed today, ending the year less than a quarter of a percentage point away from their highest levels in more than 2 years. 4.625% remains the most prevalently quoted rate for ideal, conforming 30yr Fixed loans (best-execution), with the only changes being seen in the form of closing costs. (The rates we (Wenhe Mortgage and Realty) have issued this past year have been significantly lower than the market "norm" and what the banks offer. We have no overhead so we are able to pass these savings along to you.)
On average, rates were an eighth of a percentage point higher on several occasions in August and September this year. Before that, we'd have to go back to April 2011 to see higher.

Despite the steep rise in rates in 2013, the average rate for the entire year (4.25%) is the second lowest on record next to 2012's 3.75%. The previous 3 years were each roughly 0.25% higher and 2008 was roughly a full 1.0% higher than that. To make this easier to digest, here's a quick recap of that info:

2008 - 6.0%
2009 - 5.0%
2010 - 4.75%
2011 - 4.5%
2012 - 3.75%
2013 - 4.25%

As we've discussed all year, part of the reason for the abrupt rise in rates has to do with the market perception that 2012 in the table above, looks like a long term turning point. The silver lining to that phenomenon is that even if it turns out to be the case, it connotes a much higher probability of slower increases into 2014. It's even tempting to say that if history repeats itself, years like 2013 are typically followed by a recovery by the end of the following year, but there are two important caveats.

The most overt counterpoint to that historical norm is that the 1999's rate movements were very similar to 2013's (just talking about the pace and magnitude, not the rates themselves). Although rates did make it most of the way back to 1999's lows, it didn't happen until 12/31/2000 and those improvements didn't even start showing up until the Fall of 2000. After that, it wasn't until the middle of 2001 that rates finally broke 1999's lows.

The other significant caveat to hoping history repeats in some way is that history has been one-sided for the better part of 30 years. After rates topped out in the early 80's and corrected sharply from 84-86, rates entered a remarkably linear era of constant improvement. Sure, the movement from one end of the range to the other seemed severe when it happened abruptly (87, 94, 99, 03, 09, and 2013), but overall, the same parallel lines that were emerging in the early 90's have contained all the mortgage rate movement since then.

To state the obvious, of course history is going to look like it's been repeating itself if the same thing has been happening for most of the time that most anyone with an opinion has been old enough to have one. If we're considering a long term shift in that decades-long trend, the extent to which we can expect 2014 to behave like 1994 or 2000 is limited. There will be pockets of recovery--perhaps even big ones--but in looking back on 2013, it's very likely we've just seen the lift-off from 2012's all-time lows.

 

[Tamalewagon]

Title changed Slowride. :thumbup:

 

[Tamalewagon]

by Ted Rood

New FHA Alternative Boosts Low Down-Payment Options

Jan 3 2014, 3:54PM

As Fannie Mae and Freddie Mac eliminated their 100% and 97% purchase loans following the housing meltdown, FHA financing once again became a preferred low down payment option. FHA loans offer a minimum 3.5% down payment, which can be gifted from a close family member. Thus, buyers whose sales contracts specify seller paid closing costs and who use the gift down payment, can often purchase a home with minimal out of pocket expenses.

FHA allows borrowers with credit scores as low as 580 to put just 3.5% down (those with lower scores face increased down payment requirements), and routinely approves higher debt loads than Fannie Mae or Freddie Mac. The combination of marginal credit scores and low (or no) buyer financial investment contributed to FHA's default rates as the housing market crashed. As a result, FHA has raised MI significantly and has long since eliminated seller-paid down payment assistance programs.

Fannie Mae also allows down payment funds to be gifts from close family members for single family principal residences, with down payments as low as 5% for qualified borrowers. Until recently, however, private mortgage insurance (required for loans exceeding 80% of sales price) vendors required buyers to contribute at least 2% of their own funds in a transaction in addition to any gift funds. PMI provider United Guaranty recently altered their guidelines and now allow down payments to be exclusively gifts, a move likely soon adopted by competitors. The announcement gives eligible buyers a distinct advantage over FHA's considerable MIP costs.

 

[Tamalewagon]

Fees per rate dropped today at a range of .125%-.5% compared to yesterday which is great news if you are looking to lock a rate today

by Matthew Graham

MBS MID-DAY: MBS Reclaim Ground Lost Since December FOMC

Jan 7 2014, 11:54AM


On December 18th, Fannie 4.0 MBS were heading into the FOMC's 'tapering' Announcement at 103-12. They shed nearly 7/8ths of a point by the following morning, hitting 102-18. The first bounce back from those lows ended up setting the range for the next three weeks. That range remained capped by 103-09 until this morning when 4.0s once again traded at pre-FOMC levels of 103-12.

There are a few major caveats to what sounds like a pretty positive scenario. First of all, the roll is coming up in two days, meaning prices are more appropriately seen as roughly 10 ticks lower. Then there's the matter of spreads being extra tight vs Treasuries, not leaving much room for improvement or 'value buying.' On a final note, Treasuries themselves are not nearly faring so well compared to FOMC levels with 10yr yields currently at 2.947 compared to the very highest pre-FOMC highs in the 2.91 range.

 

[Tamalewagon]

Please check out our new website at www.wmrloans.com and let me know your thoughts.

 

[Tamalewagon]

FYI...the rates on the new website are NOT correct yet.

 

[Tamalewagon]

Rates have been corrected. Please check out the new website at www.wmrloans.com and let me know what you think. :thumbup:

 

[Vegaskeith]

Little off subject. Can you purchase a manufactured house with a FHA loan? 2 acre lot in sandy valley ca.

 

[Outnumbered]

Little off subject. Can you purchase a manufactured house with a FHA loan? 2 acre lot in sandy valley ca.

Yes you can, if it is on a permanent foundation and it meets all of the other HUD/FHA Minimum Property Standards. Basically, it must be in good condition or FHA/HUD will require repairs be made. Also, 2 acres must be typical for the area. If the typical lot is 1/8 acre and you are 2 acres this may present a problem.

Good luck!

 

[Tamalewagon]

Little off subject. Can you purchase a manufactured house with a FHA loan? 2 acre lot in sandy valley ca.

I'm checking with my lenders to see if they will do a manufactured home on this. Let you know ASAP!

 

[Tamalewagon]

VegasKeith...PM sent.

 

[RVR2SNO]

PM Sent

 

[Tamalewagon]

PM replied to.

 

[Tamalewagon]

Check our rates at www.WMRLoans.com for California lending.

MORTGAGE industry update:

The Monthly Bond Rollover occurred after the close of trading yesterday with the effect being -34p for the 4% coupon. Every month the coupon "rolls over". In this case, this month's coupon is closed out and all new loans are placed into next month's coupon. There is no effect on rate sheets or pricing. Think of it as the time they mature. The recently closed issue, loans that are satisfied 30 years from now, are packaged and sold. Because the seller or wholesale lender now has an additional 30-days, it is like having a 30-day extension on their rate lock.
Talk about a mixed bag. Just when you thought the jobs market was at a higher stage of improvement, the Labor Department reported that only 74,000 jobs were added in December, well below any expectations and was the smallest increase since January of 2011. PU! This number does stink. But what is adding confusion was a hefty 38,000 upward revision to November?s number, bringing that to a pretty solid 241,000 job creations. Like we said yesterday, the Jobs Report is subject to enormous revisions over time and next month the Labor Department will do benchmark revisions for the past three years?that will be a bit more telling of the labor market picture.
We are not reading too much into this 74,000 headline number, except for the fact that the labor market improvement still has a bit more to go.
And how about this ?lipstick on the pig??the Unemployment Rate fell to 6.7%, the lowest level since November of 2008. Huh? You may recall a couple of Annual Forecasts ago ? we said watching the Labor Force Participation Rate was far more accurate as to the health of the labor market because the unemployment rate carries with it, a lot of ?shenanigans?. For instance ? this past month saw 347,000 people leaving the workforce ? that is a crazy large number and it?s not yet clear whether these are all people retiring or people leaving labor force because they can?t find a job or a mixture thereof.
What we are reminded of is some of the recent Fed rhetoric about keeping the Fed Funds Rate at current levels for a long time, EVEN IF the unemployment rate falls beneath 6.5%. The Fed sees the unemployment rate falling, but not for just economically healthy reasons.
But one thing that is scary is the Labor Force Participation Rate, (LFPR) or the proportion of working-age Americans who have a job or are looking for one, fell to 62.8% matching October?s number and the lowest since the late 70's. That is not good.
Rounding out the report, the private sector added 87K jobs, below the 198K expected. The average workweek was 34.4, while hourly earnings were up 0.1%, below the 0.2% anticipated.
Overall this report was weak and it gives the Fed cover to continue QE as is for the time being.

 

[Tamalewagon]

Interesting interview about the job market and its impact...

http://finance.yahoo.com/blogs/daily-ticker/u-s--job-market--162013405.html

 

[Tamalewagon]

Rates still decreasing today campers...lowest I've seen in several months (since June to be exact).

www.WMRLoans.com

 

[Tamalewagon]

by Jann Swanson

Housing Scorecard: Nearly 6 Million Fewer Underwater as Prices Hit 2005 Levels




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Jan 13 2014, 10:49AM

Rising home prices are continuing to drive down the number of homeowners who are underwater according to the December Housing Scorecard published by the Departments of Treasury and Housing and Urban Development (HUD). HUD Associate Deputy Assistant Secretary for Economic Affairs Edward J. Szymanoski said, "Since the beginning of 2012, the number of homeowners underwater has declined by 5.7 million and homeowners' equity has risen by 55 percent to $9.7 trillion." Homeowners' equity jumped $418 billion, or 4.5 percent, to $9.669 trillion in the third quarter of 2013, returning to a level slightly higher than at the end of 2003.

As of October 2013, the Federal Housing Finance Agency (FHFA) purchase-only index rose 8.2 percent from last year and ticked up 0.5 percent (seasonally adjusted) from September, showing that home values are now on par with prices in early 2005. The S&P/Case-Shiller 20-City Home Price Index for October posted returns of 13.6 percent over the past 12 months and was up 0.2 percent (not seasonally adjusted) over September, indicating that home values are at the same level as in mid-2004.

The Scorecard notes there is much good news to report but the overall recovery remains fragile. Szymanoski said there remains more work to do to address the 6.4 million homeowners who remain underwater; "Nevertheless, these are encouraging signs that the housing market recovery is providing millions of American homeowners with more economic security."

The Scorecard is a monthly recap of housing data from sources such as FHFA and S&P Case-Shiller as well as RealtyTrac, the National Associations of Home Builders and Realtors?, and the Census Bureau, most of which has been previously reported by MND. It also contains by reference the monthly record of the Making Home Affordable (MHA) Program and nearly half dozen initiatives operating under that umbrella.

The MHA report this month contains data through November 2013 and this month spotlights the Second Lien Modification Program (2MP). That program was expanded in September and now, when a borrower's first lien is modified under the GSE Standard Modification requirements (which applies to loans owned or guaranteed by Fannie Mae or Freddie Mac) and the first lien satisfies the Home Affordable Modification Program (HAMP) eligibility criteria, the 2MP servicer must offer to modify or extinguish the borrower's second lien under 2MP.

The report says that more than 123,000 second lien modifications have now been completed through 2MP and homeowners with an active permanent 2MP modification save a median of $153 per month on their second mortgage and a median total of $784 on first and second mortgages, 41 percent of the pre-modification payment. Homeowners who receive a full extinguishment of their second lien receive a median total first and second lien monthly payment reduction of $1,047, or 53 percent of their before-modification payment.

MHA says the various programs it operates, HAMP, 2MP, Home Affordable Foreclosure Alternatives (HAFA) and the UP Forbearance Program, have assisted 1.9 million homeowners since they were initiated in 2009 and later. Of these, 1.3 million were modifications done through HAMP. Since the last HAMP report there have been 22,814 permanent first lien modifications initiated and a total of 35,869 assisted through all MHA programs except its . Principle Reduction Activity (PRA). That program has eliminated $10,124,838,950 in outstanding principal and another $2.5 billion in principle has been reduced outside of PRA. GSE loans are not eligible for principle reduction.

 

[Tamalewagon]

by Jann Swanson

Common Short Sale Myths Dispelled

Jan 13 2014, 12:59PM

Thanks to key changes in the program, completing a short sale through Freddie Mac is taking less time than ever before. The company's Senior Vice President Tracy Mooney, writing in Freddie Mac's Executive Perspectives Blog, said that despite the improvements and that short sales are an important tool for helping distressed homeowners avoid foreclosure and eliminate their mortgage debt, they remain a mystery to many who might benefit from them. In her occasional column "Dispelling the Myths" Mooney lays out eight misconceptions about short sales and the facts she says every distressed homeowner should know.

The first myth is that the homeowner will be responsible for the entire amount owed on the mortgage. Under the company's Standard Short Sale program, borrowers who complete a short sale in good faith and in compliance with all laws and Freddie Mac policies will not be pursued for the after-sale mortgage balance. However, if a borrower has the financial ability he/she may be asked to make a one-time payment or sign a promissory note for a portion of that balance.

Many homeowners think a short sale is not possible for an investment property or second home. Mooney said the important factor is whether the borrower meets the program's eligibility requirements, not the status of the property itself.

The third myth is that a homeowner must be delinquent on the mortgage to be eligible for a short sale. A homeowner who is current must meet the general eligibility requirements for the program and have a debt-to-income ratio greater than 55 percent. In addition, in this case the property must be the homeowner's primary residence.

Homeowners sometimes presume they won't qualify because of their servicer's strict guidelines about short sales. But Mooney says that Freddie Mac has increased the authority of its servicers to approve short sales for qualifying financial hardships for homeowners who are past due or current on their mortgage. Servicers also now have independent authority to approve short sales without a separate and potentially time-consuming review by the mortgage insurance company.

Myth #5 is that a short sale will affect a homeowner's future eligibility for a mortgage. If the financial difficulties arose from circumstances outside the borrower's control such as job loss or a health emergency he/she may be eligible for a new Freddie Mac mortgage with a minimum of 24 months acceptable credit after the short sale. If the short sale was necessitated by personal financial mismanagement the buyer might need 48 months of acceptable credit to obtain a new Freddie Mac loan. Mooney advises all homeowners to begin discussions with a lender two years after the short sale closes to find out about specific requirements in their individual case.

Many people think that short sales can take a long time but Mooney reiterates that under the new guidelines timelines are shorter than ever. Servicers now have 30 days to make and communicate a decision once they receive a completed application and, once approved, the sale should take less than 60 days to close. She says that working with an experienced real estate agent might further speed the process

It is also a mistaken belief that having a second mortgage will make a short sale impossible. If other eligibility requirements are met a second mortgage is not necessarily a barrier because Freddie's short sale program can offer second lien holders up to $6,000 to release their lien and extinguish the underlying debt

The final myth is that a short sale will ruin a homeowner's credit. While only the credit reporting agencies can determine how a credit score will be computed it is possible that a short sale could be less damaging than a foreclosure. Even if this isn't the case a short sale can give a homeowner time to arrange other housing and exit homeownership gracefully.

Mooney says a homeowner should consider a short sale if
? He/she does not qualify for any options to keep the home;
? Needs to move in order to keep or obtain employment.
?Doesn't think the home will sell at a price that will cover the outstanding mortgage amount.

The first step in the process is to determine if Freddie Mac owns the mortgage by using its Loan Look-up Tool. If it does the next step is to contact the mortgage servicers. Contact information, Mooney says, should be listed on the monthly mortgage statement or in the coupon book.

 

[milkmoney]

Hey Scott, is there a way to buy a foreclosed house that isn't on the market ? Thanks

 

[Tamalewagon]

Hey Scott, is there a way to buy a foreclosed house that isn't on the market ? Thanks

email me at [email protected]. I have a few ideas.

 

[Tamalewagon]

Dave, give me a call. 619-255-3182

 

[Tamalewagon]

updated rates are available at www.wrmloans.com.

 

[Tamalewagon]

VegasKeith...check your PM's. We just got that program your buddy was looking for.

 

[milkmoney]

Hey. Thanks for the info. Appreciate it

 

[Tamalewagon]

Hey. Thanks for the info. Appreciate it

Anytime Dave. Hope it works out for you. I can understand that you're probably getting tired of having to crash in Tony's barn. :thumbup:

 

[Tamalewagon]

Rates came down today as the bond rallied from yesterdays loss. Check them out at www.WMRLoans.com. We have MANY more loan categories to choose from.

 

[Tamalewagon]

Rates updated. www.wmrloans.com

 

[Tamalewagon]

Right now, Mortgage backed securities and Treasuries are trading sideways. The rate sheets this morning have produced rates slightly higher than those from yesterday. A steady pace of tapering by the Fed would be consistent with rates continuing to treat current levels as something of a floor, but if the Fed takes a softer approach, the rate improvements could continue (not likely).

See rates at www.WMRLoans.com

 

[Tamalewagon]

Rates dropped to their lowest levels in 6 months yesterday campers...

 

[Tamalewagon]

We are still in this temporary blip of lower rates. Get them while they're available campers...

www.wmrloans.com

 

[Tamalewagon]

Rates fell again a little this morning. www.WMRLoans.com

 

[ChevelleSB406]

Rates fell again a little this morning. www.WMRLoans.com

Thanks for posting these, I clicked on the link in your sig and noticed it has a typo, so just a heads up. :thumbup:

 

[Tamalewagon]

Thanks for posting these, I clicked on the link in your sig and noticed it has a typo, so just a heads up. :thumbup:

Thank you very much for catching that! :thumbup: Oops. LOL.

FYI campers...rates fell again for the 2nd time today.

 

[Tamalewagon]

FYI campers...the typical bank mortgage rates are up to 1/2 percent HIGHER in some cases, than our rates. I just did an exact comparison between my rates/fees to Wells, BofA, Chase and Citi. We fund faster and with lower rates and fees. Notice in the article below that the market average is 4.375% for a 30 year fixed. We are at 4.125% for the same product/fee because we deal directly with wholesale lenders as brokers and we have extremely low overhead. We pass that along to our clients.

As brokers, we disclose ALL fees up front. Banks and correspondent lenders do not have to disclose their yield spread whereas by law, brokers must disclose all or risk a license suspension or revocation.

www.WMRLoans.com


by Matthew Graham

Mortgage Rates Surge to New 2014 Lows Following Fed Announcement

Jan 29 2014, 4:36PM

Mortgage rates moved significantly lower today after drifting higher during the first two days of the week. As was the case on Friday, today's rates initially benefited from further weakness in equities and emerging market currencies. The afternoon saw a paradoxical move into even better levels after the Fed stuck to their tapering script, further reducing the amount of Treasuries and Mortgage-Backed-Securities it purchases each month by $10 billion.

Lower rates are a paradox because up until now, a reduction in the pace of bond buying has unequivocally suggested higher rates, all things being equal. But in the current scenario, the emerging market weakness mentioned above is theoretically being driven by tapering. So in that case, more tapering means more emerging market pain, which in turn has theoretically breathed new life into bond markets and mortgage rates. It's all a bit confusing because if you follow that logic, it means that mortgage rates were in a win-win situation today.

With today's gains, we now move down to 4.375% as the most prevalently quoted conforming 30yr fixed rate for ideal scenarios (best-execution). For some lenders, that rate remains 4.5%. Prospects for further improvements look to be as dependent on stocks and emerging markets as anything right now.

 

[Tamalewagon]

Rates are down again today. Here's why: http://www.mortgagenewsdaily.com/mortgage_rates/blog/342403.aspx


check our rates - www.WMRLoans.com

 

[Tamalewagon]

check our daily rates at www.WMRLoans.com

Via Mortgage News Daily


by Jann Swanson

Housing Might Not be Looking so bad After All




Jan 31 2014, 12:38PM

"The familiar saying that housing brings the economy out of recessions did not hold true this time around," according to David Crowe, Chief Economist for the National Association of Homebuilders (NAHB). Crowe, writing in the current edition of RealtyTrac's Foreclosure News Report said that home building this time around did not take the well-worn path we have come to expect in an economic recovery. Construction has moved up from the bottom, but that movement has not been "stellar." Housing starts in 2013 were well under 1 million, an improvement from 2012 but the rate of increase has slowed to under 20 percent so expectations for 2014, Crowe says, are hesitant and somewhat pessimistic.

The slower than normal recovery of the housing industry in his view occurred because the Great Recession had characteristics more like the Great Depression than those typical of other post-war recessions. It was longer and deeper and in terms of housing was particularly severe. Housing values slipped as much as a third nationally and much more in some areas, mortgage delinquencies were widespread as were foreclosures and while emergency programs and laws stemmed some of the worst, the damage has taken years to repair.

Now the repairs have been made and "many of the disturbances that slowed the housing revival have been calmed," and consequently Crowe has a brighter take on 2014 than many in the field. He sees a return in housing demand, fundamental housing market stability, and relatively solid economic growth combining to produce good growth in housing this year.

Single-family construction will total 820,000 in 2014, a better than 30 percent improvement from 2013. Multifamily construction, primarily of rental apartments, will total 326,000, an 8 percent growth rate but apartment construction growth will slow as the industry approaches sustainable levels in the 360,000 unit range. He also sees new home sales topping 600,000 for the first time since 2006 as demand grows and builders can acquire the land, labor, and materials needed.

Crowe has this somewhat contrarian outlook because he sees a lot of factors that have been holding back growth changing. First, households have improved their balance sheets. They have saved more, reduced debt, seen home values improve and investments rise. "From a planning standpoint, households behaved prudently but the more they saved, the less they spent and the recession worsened." But net worth has risen by double digits the past year and this has provided comfort enabling households to consider consumer and durable commodity purchases while rising prices will enable formerly underwater homeowners to consider selling and moving to another home.

The rapid rise in prices over the past couple of years has been driven by low supply and heavy demand especially at lower price points and both trends should cool in 2014 Crowe says. Supplies will increase as more owners decide to sell. But demand will both soften as investors pull away from the market and increase as households begin to form at more normal levels. Household formation nearly collapsed during the recession, dropping from net growth of 1.4 million to one-half million a year. NAHB estimates at least a two million back log of unformed households in addition to the normal 1.2 million flow of household formations over the next decade

Much of the dearth in formations was due to unemployment which was especially high among young adults who were forced to continue living with their parents. Since 2011 unemployment rates for young adults have fallen to the same as level as the general population and their housing demand will continue to rise.

A more normal environment is also being signaled by indexes showing increased purchases of durable goods, consumer confidence, and sentiment. "Home buyers have overcome many of their former fears of the housing market," Crowe says.

Mortgage rates will continue to rise as a probable shrinkage of federal involvement in mortgages will bring more expensive private money into the market. But Crowe says the price of mortgage credit has not been as much of a hindrance as its lack of availability. He calls underwriting standards unreasonably tight and says that uncertainty about future rules and the degree of government involvement helped keep thresholds high. Some of the uncertainty about Dodd-Frank regulations has ended and "new leadership at the Fannie Mae and Freddie Mac regulator may signal some more reasonable policies," so mortgage lenders will shift resources from refinance to originating purchase mortgages as rates continue to rise.

Even with Crowe's optimistic outlook he believes the home building industry will end 2014 only at about two-thirds normal and the climb back to pre-recession normalcy will take at least two more years. Even then some individual markets, such as those restructuring their economic base or where home prices and production had the largest fluctuations, will take longer to return to a normal level. Their full recovery will be dictated by how far down construction fell and the health of fundamental economic underpinnings

 

[Tamalewagon]

Daily rates - www.wmrloans.com



Today's mortgage market beat:

by Matthew Graham

MBS Day Ahead: Momentum May be Shifting for Rates Even Before NFP

Feb 6 2014, 7:00AM


Momentum has been great for rates/bond markets almost exclusively in 2014 until the past two sessions. If today's session errs on the weak side again, we could see bonds carry a certain predisposition toward weakness into tomorrow's NFP data. While such a thing wouldn't matter more than a big beat or miss, if NFP happens to be fairly close to consensus, the underlying momentum could matter more.

 

[Tamalewagon]

Lock if you're shopping campers...(Note that banks are offering 4.375% at zero points on 30 year fixed conforming rates. We are at 4.25% at zero points with the same qualification requirements)


by Matthew Graham

Mortgage Rates Continue Higher Ahead of Important Jobs Data

Feb 6 2014, 3:39PM

Mortgage rates were higher for a third straight day, substantially weakening a recent run to the lowest levels in nearly 3 months that ended on Monday. Each of the past 3 days hasn't been severe in and of itself, but taken together, they erase most of the improvement seen on Friday and Monday (which were both strong days). We're now back to 4.375% being the most prevalently quoted conforming 30yr fixed rate for the very best borrower scenarios(best-execution). Scattered offerings of 4.25% were on the table yesterday, and dominated the landscape on Monday. When adjusted for day to day changes in closing costs, rates rose an equivalent of 0.05% today, bringing the 3 day total to 0.10%.

As is always the case on the Thursday afternoon before the official employment data, floating a mortgage rate that could otherwise be locked is highly risky. That's because this monthly report--The Employment Situation--is by far and away the most important piece of economic data available each month. Nothing else has as much power to cause movement in interest rates. The risk of rates moving quickly higher usually makes it a good idea to lock (if possible) before this report, but the last one was a great example of how taking the risk to float could pay off.

 

[Tamalewagon]

check daily rates www.WMRLoans.com

Interesting read on the effects of Quantitative Easing and Mortgage rates.

http://www.mortgagenewsdaily.com/02062014_quantitative_easing.asp

 

[Tamalewagon]

http://www.wmrloans.com/my-account/tools/long-loan-application/

There you go T...

 

[YoPengo]

Sent you an email...

 

[Tamalewagon]

Sent you an email...

Hi John. Check your email. :thumbup:

 

[YoPengo]

Hi John. Check your email. :thumbup:

Talk to you tomorrow. :thumbup:

 

[Tamalewagon]

by Matthew Graham VIA MORTGAGE DAILY NEWS

Mortgage Rates Steady to Slightly Lower




Feb 18 2014, 3:49PM

Mortgage rates were lower in some cases today, though some lenders merely held steady compared to Friday's latest levels. Mortgage-Backed-Securities, the financial instruments that most directly affect rates, benefited from weaker economic data and general strength in Treasuries. Rates didn't quite return to Thursday's levels, but 4.375% was able to hold it's ground as the most prevalently quoted 30yr fixed rates for the very best borrower scenarios (best-execution). 4.5% was in the process of taking over on Friday. When adjusted for day to day changes in closing costs, rates fell an equivalent of 0.02% today.

Today's improvement is a welcome development, suggesting that some of Friday's weakness may indeed have owed itself to conservative pricing/trading strategies ahead of the 3-day Presidents Day weekend. What had been a fairly linear move toward higher rates so far in February is now leveling-off. This sort of movement often resolves itself with a more pronounced move higher or lower. As we get more economic data in the coming days, including the Minutes from the most recent FOMC Meeting, we should find out more about which direction will win.

 

[Tamalewagon]

View our current rates at www.WMRLoans.com
____________________________________________

by Matthew Graham

MBS MID-DAY: Uneventful Morning for Bond Markets

Feb 24 2014, 12:18PM


Although Treasury yields have been moving in the same direction as stock prices, the magnitude is completely different. Whereas the S&P is up an impressive 20 points to new all-time highs, Treasury yields are merely on the edge of their weakest levels of the morning, only 1.2bps higher.

MBS are another degree removed from that negative influence, and have been looking more sideways compared to Treasuries' "slightly weaker."

There have have been no significant market movers today and there are no significant events on the calendar this afternoon. Bond markets are biding their time until being more convincingly roused from the slumber connoted by 2.75% 10yr yields and a 104-ish price on Fannie 4.0 MBS.



MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0

96-13 : -0-02

FNMA 3.5

100-22 : -0-01

FNMA 4.0

104-05 : -0-01

Treasuries
2 YR

0.3262 : +0.0082

10 YR

2.7463 : +0.0123

30 YR

3.7030 : +0.0070

 

[Motor Boater]

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