Wednesday's bond market has opened in positive territory following the release of much weaker than expected economic data. The stock markets are mixed with the Dow is currently down 16 points and the Nasdaq up 5 points. The bond market is currently up 7/32, but due to weakness late yesterday we will likely see little change in this morning's mortgage rates.
Today's big news was June's Retail Sales report that showed retail level sales fell 0.5% last month. This was weaker than the 0.2% decline that was expected and indicates that consumers spent less than thought. That is good news for the bond market because consumer spending makes up two-thirds of the U.S. economy. If spending is slowing, broad economic strength is not likely, keeping inflation concerns to a minimum.
Later today we will get to see the minutes from the last FOMC meeting. There is a possibility of the markets reacting to them following their 2:00 PM ET release, especially if th ey show some divisiveness by its members during discussion and voting at the last meeting or give any indication of the Fed's possible next move with monetary policy. This could lead to changes in mortgage rates this afternoon.
Yesterday's 10-year Treasury Note auction was considered average at best. Most of the readings used to measure demand did not show much strength, leading to weakness in trading late yesterday. Today brings us the 30-year Treasury Bond sale and its results will also be posted at 1:00 PM ET. If it was met with an overly strong demand from investors, particularly international buyers, we should see bond strength during afternoon trading as long as the FOMC minutes don't give us negative surprises. However, today's sale is less important to mortgage rates than yesterday's was, so I suspect it will take a very strong auction for this sale to improve rates this afternoon.
There are two relevant reports scheduled for release tomor row. The first is June's Producer Price Index (PPI). It is a very important release because it measures inflationary pressures at the producer level of the economy. It is expected to show a 0.1% decline in the overall reading and a 0.1% increase in the core data reading. The core reading is the more important of the two because it excludes more volatile food and energy prices. The bond market should react quite favorably if we get weaker than expected readings, but a larger than expected rise in the core reading could send mortgage rates higher tomorrow.
June's Industrial Production data will be the second report tomorrow. This data measures output at U.S. factories, mines and utilities, giving us an indication of manufacturing sector strength. It is expected to show no change in the level of production, indicating that the manufacturing sector remained stable during the month. That would basically be good news for bonds, however, an unexpected decline would like ly help improve rates if the PPI showed favorable results.
If I were considering financing/refinancing a home, I would.... Lock
Showing posts with label mortgage rates real estate atlanta georgia refinance. Show all posts
Showing posts with label mortgage rates real estate atlanta georgia refinance. Show all posts
4.07.2010
The March Fed Minutes Explains Why Home Sales Weren't Worse This Winter
Posted: 07 Apr 2010 07:45 AM PDT  Mortgage markets improved yesterday after the Federal Reserve released its March 16, 2010 meeting minutes. It's good news for home buyers and rate shoppers -- rates could have just as easily gone the other way.The Fed Minutes is a detailed recap of the debate and discussion that shapes the nation's monetary policy. The notes are dense; it takes 3 weeks to compile them for publication. As compared to the more well-known, post-meeting press release, the Fed Minutes are extremely lengthy. For example:
The extra words matter.The minutes recount what the Fed did, how the Fed did it, and what the Fed plans to do next. And, in the minutes, Wall Street looks for clues. This is why the report is important to every rate shopper in the country. When the Federal Reserve publishes the minutes from its meetings, it leave clues about the groups next policy-making steps. For example, in March's Fed Minutes, it's clear that the Fed's concern about inflation is hugely diminished and that's a major plus for the mortgage bond market. Inflation causes mortgage rates in Atlanta and in Georgia to rise. The absence of inflation, therefore, helps them to fall. This improves home affordability, among other things. Similarly, the Fed Minutes note that real estate sales may have been worse throughout the winter months if not for low mortgage rates and the sense among Americans that home prices were troughing. We may infer, therefore, that rising rates may suppress home sales later this year. Markets are always looking for clues from inside the Fed and the last meeting's minute signal that the economy is on its way up. If you're looking for a bargain in the housing market, your window to act may be closing. So I invite your to visit the leading Georgia mortgage leader Capital City Mortgage Investments, Inc. at www.ATLrates.com  |
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1.29.2010
Mortgage Recap for Janurary
01/28/2010 American Banker: Respa Rules Delay Many Mortgages, Torpedoes Others http://www.americanbanker.com/issues/175_17/respa-rule-delays-mortgages-1006463-1.html
01/28/2010
ABCNEWS/Politics: State of Union President Obama’s Speech
http://abcnews.go.com/Politics/State_of_the_Union/state-of-the-union-2010-president-obama-speech-transcript/story?id=9678572&page=4
01/28/2010
MSNBC.COM: Fed vows low rates for an ‘extended period’
http://www.msnbc.msn.com/id/35098235/
01/27/2010
MSNBC.COM: Flaws plague Foreclosure relief program
http://www.msnbc.msn.com/id/35062033/ns/business-answer_desk/
01/20/2010
HUD Flushes Out Plan to Clean FHA
http://www.americanbanker.com/issues/175_14/hud-fleshes-out-plan-1006340-1.html
01/20/2010
FoxBusiness.com: FHA Ups Loan Requirements Riskier Borrower’s http://www.foxbusiness.com/story/markets/industries/real-estate/fha-ups-loan-requirements/
01/28/2010
ABCNEWS/Politics: State of Union President Obama’s Speech
http://abcnews.go.com/Politics/State_of_the_Union/state-of-the-union-2010-president-obama-speech-transcript/story?id=9678572&page=4
01/28/2010
MSNBC.COM: Fed vows low rates for an ‘extended period’
http://www.msnbc.msn.com/id/35098235/
01/27/2010
MSNBC.COM: Flaws plague Foreclosure relief program
http://www.msnbc.msn.com/id/35062033/ns/business-answer_desk/
01/20/2010
HUD Flushes Out Plan to Clean FHA
http://www.americanbanker.com/issues/175_14/hud-fleshes-out-plan-1006340-1.html
01/20/2010
FoxBusiness.com: FHA Ups Loan Requirements Riskier Borrower’s http://www.foxbusiness.com/story/markets/industries/real-estate/fha-ups-loan-requirements/
10.26.2009
Mortgage Rates this week and you
Last Week:
Rates were up just slightly for the week by .125 to .250 depending on the lender. Pricing has steadily backed up through October and taken us back to rates last seen briefly Mid-September and Late August.
The 10-year TSY ended the week testing the high end of the range that has not been broken for over 60 days, while stocks were flat for the week after running up the previous two weeks. With stocks flat last week, but bond yields up - most of this can be attributed to bond trader hedging against the treasury auctions coming up this week. This has been the trend each week prior to these record bond auctions held by the Treasury. If the trend we have witnessed holds, we could see some relief in bond yields later this week as long as the auctions go well - as expected.
We had mostly good news from housing market data last week that suggested that housing appears to be finding stabilization.
First, last week, the Fed Beige book listed residential real estate as leading the more positive sectors across the Fed Districts - along with Manufacturing, which were the two hardest hit sectors in the early part of the recession.
Later in the week, the Existing Home Sales report surprised the street by leaping 9.4% in September (to 5.57 million annualized units) - the highest sales rate in over two years. Prices seem to be firming and the report showed inventory dropping to 7.8 months - the lowest inventory number in almost 3 years (not including short sale and foreclosure dispositions).
The rest of the economic news last week was mostly positive and suggest the economy is slowly healing, while new unemployment claims last week was slightly higher than expected and will continue to drag on the recovery. Inflationary pressures still remain subdued as well.
Rate Forecast:
With rates at multi-year or near historic and all-time lows, it's tough to expect that they have considerable space to decline much from here , especially in the face of a modestly improving economic climate and improving corporate earnings picture.
Rates that were lower earlier this year were fueled by an apocalyptic economic state and near-term view forward. While this has improved, investors lack of appetite to take risks, weak economic growth, and the low near-term prospects for inflation should serve to keep a lid on any serious increases, too. The bleakness of Spring drove rates down; the euphoria of Summer (and inflation worries) drove them back up. The Autumn seems to have a sense of reality about it, and an improving sense of optimism about tomorrow's economic prospects. And, as we showed you going into the fall - there is a well established trend of mortgage rates "falling in the fall".
Somewhere between those two extremes of Spring and Summer is where we'll probably find ourselves for the remainder of the fall. That being the case, we expect mortgage rates to likely wander in a range from about 5.00% to 5.50% on the Conv. 30-year fixed, but to be choppy in that range as the stock and bond markets search for new trend line.
The Week Ahead:
This week brings us the release of seven relevant economic reports and two important Treasury auctions for the bond market to digest. There is relevant data or events scheduled every day except Monday, so there is a pretty good chance of seeing noticeable movement in mortgage rates several days this week.
Overall, it will likely be an active week for the markets and mortgage rates. We believe that the single most important day will probably end up being Thursday with the extremely important GDP release in the morning and the Treasury auction results during afternoon hours. Monday should be the calmest day of the week, but Tuesday, Wednesday and Friday should also be active. Accordingly, I strongly recommend staying close to our emails/alerts.
This week also has Treasury auctions scheduled each day except Friday. However, the two that are most likely to influence mortgage rates are Wednesday's 5-year and Thursday's 7-year Note sales. If those sales are met with a strong demand, particularly Thursday's auction, bond prices may rise during afternoon trading. This could lead to improvements to mortgage rates shortly after the results of the sales are posted at 1:00 PM ET each day. But a lackluster investor demand may create bond selling and upward revisions to mortgage rates.
Tuesday:
The first report of the week is one of the more important ones. October's Consumer Confidence Index (CCI) will be posted late Tuesday morning. This Conference Board index gives us a measurement of consumer willingness to spend. It is expected to show a small increase in confidence from last month's 53.1 reading, indicating that consumers are a little more likely to make large purchases in the near fut ure than last month. As long as the reading doesn't exceed the forecasted 53.5, we will likely see the bond market react favorably to this report. This data is watched closely because consumer spending makes up two-thirds of the U.S. economy.
Wednesday:
Wednesday morning the Commerce Department will post Durable Goods Orders for September. This report gives us a measurement of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items. Analysts are currently calling for an increase in new orders of approximately 1.0%. If we see a larger than expected increase in orders, mortgage rates will probably rise as bond prices fall. A weaker than expected reading should be good news for the bond market and mortgage rates, but this data can be quite volatile from month to month and is difficult to forecast.
Also Wednesday is the release of September's New Home Sales. This data covers the remaining 15% of home sales that last week's Existing Home Sales report tracked and is this week's least important data. It is expected to show an increase in sales, but regardless of its results I am not expecting it to have a significant impact on mortgage rates Wednesday.< /p>
Thursday:
The next relevant data is the preliminary reading of the 3rd Quarter Gross Domestic Product (GDP) early Thursday morning. The GDP is considered to be the benchmark measurement of economic growth because it is the sum of all goods and services produced in the U.S. and therefore is likely to have a major impact on the financial markets and mortgage pricing. There are three versions of this report, each a month apart. Thursday's release is the first and usually has the biggest impact on the markets. Current forecasts call for an increase of approximately 3.2% in the GDP. If this report shows a much smaller increase, we would expect to see the bond markets rally and mortgage rates to fall. However, a larger than expected rise could lead to bond selling and a sizable increase in mortgage pricing.
Friday:
There are three reports scheduled for release Friday. The first is the 3rd Quarter Employment Cost Index (ECI), which tracks employer costs for salaries and benefits. Rapidly rising costs raises wage inflation concerns and may hurt bond prices. It is expected to show an increase in costs of 0.5%. A smaller than expected increase would be good news for bonds and mortgage rates.
September's Personal Income and Outlays report will also be posted early Friday. This data gives us an indication of consumer ability to spend and current spending habits. It is important to the markets because consumer spending makes up two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. This is bad news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to i nvestors. Analysts are expecting to see no change in income and decline in outlays of 0.5%.
The week's last report comes at 10:00 AM ET Friday w hen the University of Michigan updates their Index of Consumer Sentiment for this month. Current forecasts show this index rising slightly this month's preliminary reading of 69.4. This index is moderately important because it helps us measure consumer confidence, which is believed to indicate consumers' willingness to spend. Since consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be relevant.
Rates were up just slightly for the week by .125 to .250 depending on the lender. Pricing has steadily backed up through October and taken us back to rates last seen briefly Mid-September and Late August.
The 10-year TSY ended the week testing the high end of the range that has not been broken for over 60 days, while stocks were flat for the week after running up the previous two weeks. With stocks flat last week, but bond yields up - most of this can be attributed to bond trader hedging against the treasury auctions coming up this week. This has been the trend each week prior to these record bond auctions held by the Treasury. If the trend we have witnessed holds, we could see some relief in bond yields later this week as long as the auctions go well - as expected.
We had mostly good news from housing market data last week that suggested that housing appears to be finding stabilization.
First, last week, the Fed Beige book listed residential real estate as leading the more positive sectors across the Fed Districts - along with Manufacturing, which were the two hardest hit sectors in the early part of the recession.
Later in the week, the Existing Home Sales report surprised the street by leaping 9.4% in September (to 5.57 million annualized units) - the highest sales rate in over two years. Prices seem to be firming and the report showed inventory dropping to 7.8 months - the lowest inventory number in almost 3 years (not including short sale and foreclosure dispositions).
The rest of the economic news last week was mostly positive and suggest the economy is slowly healing, while new unemployment claims last week was slightly higher than expected and will continue to drag on the recovery. Inflationary pressures still remain subdued as well.
Rate Forecast:
With rates at multi-year or near historic and all-time lows, it's tough to expect that they have considerable space to decline much from here , especially in the face of a modestly improving economic climate and improving corporate earnings picture.
Rates that were lower earlier this year were fueled by an apocalyptic economic state and near-term view forward. While this has improved, investors lack of appetite to take risks, weak economic growth, and the low near-term prospects for inflation should serve to keep a lid on any serious increases, too. The bleakness of Spring drove rates down; the euphoria of Summer (and inflation worries) drove them back up. The Autumn seems to have a sense of reality about it, and an improving sense of optimism about tomorrow's economic prospects. And, as we showed you going into the fall - there is a well established trend of mortgage rates "falling in the fall".
Somewhere between those two extremes of Spring and Summer is where we'll probably find ourselves for the remainder of the fall. That being the case, we expect mortgage rates to likely wander in a range from about 5.00% to 5.50% on the Conv. 30-year fixed, but to be choppy in that range as the stock and bond markets search for new trend line.
The Week Ahead:
This week brings us the release of seven relevant economic reports and two important Treasury auctions for the bond market to digest. There is relevant data or events scheduled every day except Monday, so there is a pretty good chance of seeing noticeable movement in mortgage rates several days this week.
Overall, it will likely be an active week for the markets and mortgage rates. We believe that the single most important day will probably end up being Thursday with the extremely important GDP release in the morning and the Treasury auction results during afternoon hours. Monday should be the calmest day of the week, but Tuesday, Wednesday and Friday should also be active. Accordingly, I strongly recommend staying close to our emails/alerts.
This week also has Treasury auctions scheduled each day except Friday. However, the two that are most likely to influence mortgage rates are Wednesday's 5-year and Thursday's 7-year Note sales. If those sales are met with a strong demand, particularly Thursday's auction, bond prices may rise during afternoon trading. This could lead to improvements to mortgage rates shortly after the results of the sales are posted at 1:00 PM ET each day. But a lackluster investor demand may create bond selling and upward revisions to mortgage rates.
Tuesday:
The first report of the week is one of the more important ones. October's Consumer Confidence Index (CCI) will be posted late Tuesday morning. This Conference Board index gives us a measurement of consumer willingness to spend. It is expected to show a small increase in confidence from last month's 53.1 reading, indicating that consumers are a little more likely to make large purchases in the near fut ure than last month. As long as the reading doesn't exceed the forecasted 53.5, we will likely see the bond market react favorably to this report. This data is watched closely because consumer spending makes up two-thirds of the U.S. economy.
Wednesday:
Wednesday morning the Commerce Department will post Durable Goods Orders for September. This report gives us a measurement of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items. Analysts are currently calling for an increase in new orders of approximately 1.0%. If we see a larger than expected increase in orders, mortgage rates will probably rise as bond prices fall. A weaker than expected reading should be good news for the bond market and mortgage rates, but this data can be quite volatile from month to month and is difficult to forecast.
Also Wednesday is the release of September's New Home Sales. This data covers the remaining 15% of home sales that last week's Existing Home Sales report tracked and is this week's least important data. It is expected to show an increase in sales, but regardless of its results I am not expecting it to have a significant impact on mortgage rates Wednesday.< /p>
Thursday:
The next relevant data is the preliminary reading of the 3rd Quarter Gross Domestic Product (GDP) early Thursday morning. The GDP is considered to be the benchmark measurement of economic growth because it is the sum of all goods and services produced in the U.S. and therefore is likely to have a major impact on the financial markets and mortgage pricing. There are three versions of this report, each a month apart. Thursday's release is the first and usually has the biggest impact on the markets. Current forecasts call for an increase of approximately 3.2% in the GDP. If this report shows a much smaller increase, we would expect to see the bond markets rally and mortgage rates to fall. However, a larger than expected rise could lead to bond selling and a sizable increase in mortgage pricing.
Friday:
There are three reports scheduled for release Friday. The first is the 3rd Quarter Employment Cost Index (ECI), which tracks employer costs for salaries and benefits. Rapidly rising costs raises wage inflation concerns and may hurt bond prices. It is expected to show an increase in costs of 0.5%. A smaller than expected increase would be good news for bonds and mortgage rates.
September's Personal Income and Outlays report will also be posted early Friday. This data gives us an indication of consumer ability to spend and current spending habits. It is important to the markets because consumer spending makes up two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. This is bad news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to i nvestors. Analysts are expecting to see no change in income and decline in outlays of 0.5%.
The week's last report comes at 10:00 AM ET Friday w hen the University of Michigan updates their Index of Consumer Sentiment for this month. Current forecasts show this index rising slightly this month's preliminary reading of 69.4. This index is moderately important because it helps us measure consumer confidence, which is believed to indicate consumers' willingness to spend. Since consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be relevant.
9.16.2009
Last chance to get a cash out FHA loan
CASH OUT REFINANCES OVER 85% LTV
The deadline to close any cash-out FHA refinance with an LTV over 85% is September 30, 2009. No exceptions will be granted. Need help call us 770-792-7979 ext 1079.15.2009
Are Reverse Mortgages for You?
Are Reverse Mortgages for You?
Also know as Home Equity Conversion Mortgages (HECM), Federally Insured Reverse Mortgages for Seniors allow Senior Home Owners to unlock the equity in their homes to provide needed financial security. You control where and how you live during your golden years. Many seniors make bad decisions and sell their homes because of money. Don't do that.
A federally insured Reverse Mortgage will unlock the equity in your home for you to use any way you need, with NO MONTHLY PAYMENTS EVER! Why on earth would you want to sell or move into some smaller housing when a great alternative like our federally insured HECM MAXX© is here for you?
Since 1989, over 350,000 seniors have benefited from these plans. In 2009 alone we expect to see at least 125,000 more seniors take advantage of a Reverse Mortgage.
These plans allow you to access money your home hasn't "earned" yet. You get present cash benefit for future appreciation. And, best of all, you get the cash you need without the burden of a monthly payment. That's right - NO MONTHLY PAYMENTS!
The plans are designed to leave equity for your heirs. They make your home almost foreclosure proof. You never have to worry about where your money's coming from, because the federal government insures your mortgage and if anything happens to your lender,
HUD steps in and keeps the cash flowing.
That does NOT happen with any other mortgage we know of. With a federally insured Reverse Mortgage from Value Financial - America 's Senior, you are SAFE....SAFE.....SAFE in the home you love for as long as YOU choose to remain there. With NO MONTHLY PAYMENTS to make, EVER! Peace of mind for life!
And now, since January 1, 2009, there is a program allowing you to use a Reverse Mortgage to purchase your primary residence. This allows you to keep most of your cash when buying a home and still have no mortgage payments!
Also know as Home Equity Conversion Mortgages (HECM), Federally Insured Reverse Mortgages for Seniors allow Senior Home Owners to unlock the equity in their homes to provide needed financial security. You control where and how you live during your golden years. Many seniors make bad decisions and sell their homes because of money. Don't do that.
A federally insured Reverse Mortgage will unlock the equity in your home for you to use any way you need, with NO MONTHLY PAYMENTS EVER! Why on earth would you want to sell or move into some smaller housing when a great alternative like our federally insured HECM MAXX© is here for you?
Since 1989, over 350,000 seniors have benefited from these plans. In 2009 alone we expect to see at least 125,000 more seniors take advantage of a Reverse Mortgage.
These plans allow you to access money your home hasn't "earned" yet. You get present cash benefit for future appreciation. And, best of all, you get the cash you need without the burden of a monthly payment. That's right - NO MONTHLY PAYMENTS!
The plans are designed to leave equity for your heirs. They make your home almost foreclosure proof. You never have to worry about where your money's coming from, because the federal government insures your mortgage and if anything happens to your lender,
HUD steps in and keeps the cash flowing.
That does NOT happen with any other mortgage we know of. With a federally insured Reverse Mortgage from Value Financial - America 's Senior, you are SAFE....SAFE.....SAFE in the home you love for as long as YOU choose to remain there. With NO MONTHLY PAYMENTS to make, EVER! Peace of mind for life!
And now, since January 1, 2009, there is a program allowing you to use a Reverse Mortgage to purchase your primary residence. This allows you to keep most of your cash when buying a home and still have no mortgage payments!
9.03.2009
How to increase your cashflow by $500/month! Money saving tips
Posted: 03 Sep 2009 07:45 AM PDT There are two ways to boost your personal cash flow -- increase your income or reduce your spending. The former can be a challenge but the latter doesn't have to be. The headline of the above video -- "Cut Your Spending By $500 Per Month" -- is somewhat sensational but the advice given during the video is spot-on. From NBC's The Today Show, the 5-minute piece offers a half-dozen ways to reduce your cash outflows each month, including:
It's often easier to save money than to make money. This video shows how easy it can be.  |
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5.18.2009
Angels and Demons and Mortgage rates
Retail Sales are down worse-than-expected for April 2009. After a dreadful start to the month of May, mortgage markets improved last week, pushing mortgage rates lower overall. The ANGELs.
It was the first week since late-April in which mortgage rates fell.
The biggest reason rates improved last week was because the economic optimism that was responsible for the stock market's 30% gain since March faded somewhat.
Retail Sales came in weaker-than-expected as did Initial Jobless claims. Both of these data points show that the economy may not be recovering as quickly as investors had wanted to believe.
Combined with gas prices ballooning more than 10 percent over the last 3 weeks, it's clear that consumer spending will be muted this summer and into fall. THE DEMONS
Consumer spending is important because it accounts for two-third of the economy. If it's slowed for any reason, the economy is less likely to emerge from the current recession as quickly as had been anticipated. THE DEMONS
This is good news for mortgage rates because a slow economy tends to draw investors out of stocks and into bonds, including the mortgage-backed kind. More mortgage bond demand leads to higher bond prices and, therefore, lower bond yields and mortgage rates. THE ANGELS
This week, there isn't much data to watch and, because of Memorial Day, trading will be very light towards Thursday and Friday. THE ANGELS
It's during "calm" weeks like this that mortgage rates can make huge movements up or down. With no official announcements against which traders can make bets, every piece of news is a surprise. THE DEMONS
If you're still floating a mortgage rate, take some risk off the table by locking in this week. Call 404.643.4793 or see http://www.atlloans.com/
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