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mortgage market: Mortgage Rates: Where Are They Headed? - 12/09/08 12:01 PM
I am glad to see that there are many more mortgage professionals taking a step out there and providing mortgage market commentary. While many are simply rehashing what they receive in scripts emailed to them, some have managed to truly demonstrate expertise and provide their own insights, something I have been doing for over two years now, though I bet most of you didn't know that because it was designed as a service for my clients, not other real estate and mortgage professionals.
Not to toot my own horn, but I think that a large part of the reason there are … (0 comments)
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mortgage market: Are You in Parity with a Loonie, and Should You Care? - 09/25/07 09:09 AM
Many of you are in fact on the same level as a Loonie. Ok, maybe not you, but the money in your wallet is. So, what is a Loonie?
A Loonie is the Canadian Dollar and it has always (or almost always anyway) been worth less than the US Dollar. So, it reached the same value as the US Dollar which means our neighbors to the north are really happy. So happy, in fact, that the Canadian Finance Minister held a press conference Thursday discussing the looming parity.
So why should you care? Simply put, and as the Canadian Finance Minister stated, there is … (7 comments)
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mortgage market: Why Aren't Homes Selling? This Should be a Clue - 09/21/07 12:52 PM
Ever wonder why there doesn't seem to be any homes being sold in your area? Granted some areas are doing well, but a survey released today from Reuters/University of Michigan provides an insight as to one possibility.
The survey revolves around the homeowner's perception of their own home values and the headlines today stated the obvious, a record 26% of US homeowner's say the value of their hoes has fallen during the past year. The survey also showed 21% of homeowners expect their homes value to decline in the year ahead. OK, the news ran with that, but take a different look at … (4 comments)
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mortgage market: Will the Fed Regret Cutting Rates? - 09/20/07 11:10 AM
With the 50 basis point cut on the Fed Funds Rate, what is going to happen, and could it ultimately have the opposite effect?
Sure, it will help many ARM holders, as well as those with HELOCs, credit card balances and some others. But what about the long run? It hurts those trying to save money, encourages adding more debt, and may even create more inflation.
All of that may occur, but the reality is that the rate cut will not help homeowners who are already in trouble, so it does little to help the credit crunch. And what about mortgage rates themselves? What about … (5 comments)
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mortgage market: Government Reacts Now That Enough "Blood" Has Spilled - 09/20/07 11:07 AM
It never ceases to amaze me how much the government reacts, usually overreacts, to things long after they have been done. Take the subprime mortgage meltdown, for instance. No reaction until enough turmoil (bloodshed) has developed and after it spilled over beyond the "subprime" sector, which had been forecasted, even by myself.
Now the Fed is reacting, cutting rates by 1/2 percent and scrambling to crack down on abusive and bad lending practices. Big Ben was speaking before Congress today and stated that the "Federal Reserve takes responsible lending and consumer protection very seriously...We are committed to preventing problems problems from recurring, … (2 comments)
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mortgage market: Finally, Reality Gets Some Recognition - 08/30/07 11:17 AM
I have talked to many a person, probably even blogged about it, but the media is finally letting the news out. That is about the reality surrounding foreclosures.
We have heard time and time again about the rampant increase in foreclosures and we even hear the government talking about the need to "protect the homeowner". The problem we keep hearing is that of the typical "family losing their home" scenario, driving into us the emotions that it just isn't fair that they are losing their home and now they are left on the street.
Today, MarketWatch writer Ruth Mantell took on the task … (2 comments)
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mortgage market: OK, Apparently not Everyone is Getting it? - 08/30/07 09:50 AM
What am I talking about? How mortgage interest rates are driven. I continue to see so-called experts, politicians, etc. stating that a Fed rate cut will help adjustable rate holders. That is not the reality.
What drives mortgage rates are Mortgage Backed Securities (MBS). These are the bonds that are a "package" of home loans that are sold on the secondary market. Just as regular bonds trade, MBS trade on an open market and are subject to market forces, not what the Fed does with their rate. In fact, many times mortgage rates move in the opposite direction as the Feds!
So, reality … (2 comments)
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mortgage market: Dilbert and the Mortgage Market: Can You Relate? - 08/13/07 04:07 PM
This Sunday's paper had a Dilbert cartoon strip that caught my attention and related directly to how mortgages are being offered in the name of "competition".
The Dilbert cartoon was about the boss asking Dilbert to prepare a proposal that is full of lies and which if they were to win, they would have to add "unexpected" changes that would eventually drive the costs up.
Dilbert points out that they didn't have the right products nor the expertise to handle the customer's needs. The boss then says to say they do and they will figure it out later. Then Dilbert points … (3 comments)
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mortgage market: Mortgage Market Meltdown: Is the World Really Coming to an End? - 08/11/07 12:44 PM
It is hard to turn on the TV or radio and not hear about the turmoil happening in the mortgage markets and real estate these days. But, is what you are hearing really blowing it out of proportions?
Down here in Florida, particularly in South Florida, it may have more of an effect. Why? We seem to have a larger than normal portion of non-conforming loans. However, there is still no cause for panic as they are still the majority of the overall market.
So, let's put things into a little perspective. How bad is it really, especially when we consider how things … (7 comments)
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mortgage market: Fannie Mae Unable to Assist Mortgage Market's Problems - 08/11/07 10:34 AM
Late yesterday, The Office of Federal Housing Enterprise Oversight denied Fannie Mae's (FNMA) request to increase its portfolio beyond the $727 billion limit currently in place (as of May 2006). This was despite arguments from senior Democrats and the company stating that the change would provide much needed stability in the mortgage market.
Several major mortgage companies have complained about the inability of selling loans to investors (the secondary market) and FNMA said it could pump liquidity into this area. President Bush said that any changes to FNMA or Freddie Mac (FHLMC) should come about after Congress completes a reform package.
The announcement … (5 comments)
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mortgage market: Mortgage Market Meltdown - The Saga Continues - 08/03/07 07:55 PM
No doubt you have been hearing a lot about the changes taking place in the mortgage market over the last 4 days involving every loan except conventional conforming ones. My previous post, Mortgage Market Meltdown - Will it be Subprime Only? (dated July 11th), talked about how the effects of the subprime market was going to spill over into the rest of the markets, including A-paper. Well, that is what is happening right now.
Call it what you will, liquidity crisis or whatever, the effects are easy to see. As I was quoted in MarketWatch today, "If something is perceived as … (5 comments)
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mortgage market: Florida Mortgage Market - Forecast for the Week - 07/30/07 09:01 AM
Stock earnings reports will continue this week which could create some volatility as it has already. Additionally, there are several big potential market movers on the economic calendar for this week.
The fireworks will begin on Tuesday with the Fed's favorite inflation guage, the Personal Consumption Expenditure index (PCE) to be released along side the Employment Cost Index (ECI) at 8:30. These reports will be quickly followed by the Chicago PMI at 9:45. Wednesday will release the ISM Index, another typically heavy hitter for the markets. Thursday will be relaively tame with only the Initial Jobless Claims, but Friday will end the … (0 comments)
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mortgage market: Mortgage Market Meltdown - Will it be Subprime Only? - 07/11/07 07:16 PM
Not a day goes by that you do not hear about the Subprime Mortgage Market disaster and how many people have lost their homes due to bad loans, dishonest mortgage lenders, etc. But will the effects only be felt in the Subprime Markets? The answer may surprise you.
First, let's talk about the real Subprime Market, you know, the ones with bad credit and riskier loans in general because of it. These are the ones that are typically placed into 2 or 3 year ARMs with associated pre-payment penalties. These clients carry higher interest rates, larger margins, etc. due to their lack … (8 comments)
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mortgage market: Florida Mortgage Market Update - 06/05/07 10:02 AM
We remain in a LOCKING stance. Mortgage Bonds = -22bp.
What do the "Coriolus Effect" and Bonds have in common? Well, the Coriolus Effect describes the whirlpool action that sucks water down in a circular fashoin and bonds continue to be "sucked down" as they remain in their downward channel.
Ben Bernanke has apparently become all powerful and looked upon as the new E. F. Hutton. When Ben speaks, everyone listens and the markets continue their tumble. The funny thing is that Ben didn't say anything different, only stated the same thing that was mentioned at the last Fed Meeting and released … (0 comments)
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Robert D. Ashby
Miramar,
FL
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Address: 11758 SW 26th CT, Miramar, FL, 33025
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