mahtomedi mortgages: Mortgage Rate "movers" today- 1/9/09
- 01/09/09 02:41 AM
Investors knew that the economy was in tough shape in December, and there was little reaction to today's Employment report. The economy lost -524K jobs in December, which was very close to the consensus forecast. The Unemployment Rate jumped to 7.2%, the highest level since 1993, from a revised 6.8% in November. 2.6 million jobs were lost in 2008, mostly during the final four months of the year. The manufacturing and construction sectors remained weak, while there were small gains in education and health care. Average hours worked fell to a record low, which may be a leading indicator for additional … (0 comments)
mahtomedi mortgages: Mortgage Rate "movers" today- 1/8/09
- 01/08/09 07:14 AM
The Fed announced that it purchased $10.2 billion in agency MBS between January 5 and January 7. The Fed may purchase up to $500 billion by the end of June. There was stronger than average demand for the 10-yr Treasury auction. The Dow fell 25 points. Jobless Claims announced this morning were lower than expected, and tomorrow the Employment report will be released at 8:30 et, and the consensus is for a loss of 500K jobs in December. President-elect Obama again warned about the negative impact of failing to pass an economic stimulus plan. … (0 comments)
mahtomedi mortgages: Are you aware of Credit Scoring changes coming soon?
- 01/08/09 03:38 AM
Changes are finally coming to the "art" of credit scoring, the mathematical modeling of assigning a number score to how a Consumer uses credit. Soon, two of the three credit reporting bureaus will use a new model. Fair Isaac, the developer of FICO scores, has made the biggest change to its mathematical credit score model since it was introduced in 1989. Scores will still be on a 300- to 850-point scale. But the company estimates that 40% to 50% of borrowers' scores could go up or down by more than 20 points because of how the new model fine-tunes the variables … (60 comments)
mahtomedi mortgages: Mortgage Rate "movers" today- 1/6/09
- 01/06/09 07:40 AM
Today's economic data had little impact. November Pending Home Sales fell -4% to 82.3, below the consensus of 88.0, to a record low. December ISM Services came in a little higher than expected, while December Factory Orders fell short. The FOMC Minutes from the December 16 Fed meeting showed broad support for the rate cut to a 0.00% to 0.25% target rate and for the use of unconventional tools. Fed officials were concerned about the risk that the economic slowdown will last longer than expected. Surprisingly, though, with MBS prices remaining near the highs for the day, some investors issued unfavorable … (2 comments)
mahtomedi mortgages: It's been 3 business days. Still Motivated?
- 01/06/09 02:42 AM
To me, it's always fun to notice how crowded my workout place is every January. I know that if I put up with the slight wait to do my 'work', that within a few weeks....it will all return to normal. Why? Because of human nature. It's HARD to change things long-term, and most of us are too busy, distracted, or tired to make the effort to break our normal cycles of life. I wrote a big column yesterday on changing your mindset for the new year. I wrote that in part for self-help....because I need to do it also! I'm trying … (2 comments)
mahtomedi mortgages: Start 2009 with a positive attitude!
- 01/05/09 01:38 AM
Now more than any other time in our recent history, it is important that we find ways to stay positive no matter what. Why? Because success depends on your mindset, not on the economy or on the marketplace. I think when times get tough, people start to look outside of themselves for answers and what they really need to do is look inside themselves and ask themselves the question, "How can I stay positive, how can I stay hopeful, how can I stay optimistic?" I'm hoping that I will provide you with some tools to make it easier to be in a positive … (3 comments)
mahtomedi mortgages: Mortgage Rate "movers" for the week- 1/5/09
- 01/05/09 01:15 AM
This week, most of the "big news" is squeezed into 2 days. Friday, the important Employment report will come out. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, since the condition of the labor market is perhaps the single biggest factor in the performance of the economy. Early estimates are for a loss of 475K jobs in December. Before that, the Pending Home Sales index, a leading indicator for the housing market, will come out on Tuesday. The FOMC minutes from the December 16 … (2 comments)
mahtomedi mortgages: Letting Bankruptcy Judges set Mortgage Rates?
- 12/22/08 04:13 AM
An article caught my eye this weekend regarding the push to (once again) allow Bankruptcy judges to change the terms in a Mortgage Contract to help folks in bankruptcy. While I can feel for many who are struggling with Foreclosures, I feel this will just push folks who are facing foreclosure to file for Bankruptcy and take a chance with a Judge on getting a better rate. AND in the end, the money they save by lowering a payment goes out the window to pay a lawyer. Not to mention everyone else's Mortgage Rates increasing as banks have to cover for … (4 comments)
mahtomedi mortgages: Mortgage Rate "movers" for the week- 12/22/08
- 12/22/08 03:53 AM
During this Christmas week, all of the economic data will come out on Tuesday and Wednesday. The final revisions to third quarter Gross Domestic Product (GDP) will be revealed on Tuesday. GDP is the broadest measure of economic activity. Both Existing Home Sales and New Home Sales will be released on Tuesday as well. Durable Orders, another important indicator of economic activity, is scheduled for Wednesday, along with Personal Income. Consumer Sentiment and Jobless Claims will also come out before Christmas,probably Wednesday morning. Mortgage Securities markets will close early on Wednesday and Friday, and will be closed on Thursday. Since many … (1 comments)
mahtomedi mortgages: Mortgage Rate "movers" for the week- 12/15/08
- 12/15/08 02:07 AM
The big news this week will actually be packed into Tuesday, culminating with reports from the Fed meeting. Expectations are for a 50 or 75 basis point rate cut, and the accompanying statement will provide the Fed's latest views on the state of the economy and the financial system. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will also be announced on Tuesday. CPI looks at the price change for those finished goods which are sold to consumers. And the Fed numbers for Housing Starts is also scheduled for release Tuesday morning. Industrial Production, an important indicator of economic activity, … (0 comments)
mahtomedi mortgages: Mortgage Rate "movers" for the week ahead- 12/8/08
- 12/08/08 03:22 AM
During the first half of this week, Pending Home Sales on Tuesday will be the only economic data reporting. Import Prices and the Trade Balance will come out on Thursday. Friday will be the big day with PPI inflation data, Retail Sales, and Consumer Sentiment. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products. The Retail Sales report is a major indicator of spending levels by consumers, who account for about 70% of economic activity. Treasury auctions and Fed speakers may also have an impact this week. We will see if the … (1 comments)
mahtomedi mortgages: Word of the year: "Bailout"
- 12/04/08 03:22 AM
A 'throwaway' item in the local newspaper caught my eye this morning. Merriam-Webster, the company that publishes dictionaries, selected "bailout" as its 2008 Word of the Year. That probably was a good choice. According to the company, the word was selected because of the number of times it was looked up in the company's online dictionary. The company's website gives a five-word definition-"a rescue from financial distress." Merriam-Webster boiled it down to just 28 letters. For businesses, consumers, taxpayers, legislators and others, there are far more than 28 different meanings to the word. Of course, each of those groups has different … (2 comments)
mahtomedi mortgages: Treat your Business Plan like a lead...Follow Up!
- 11/25/08 12:43 AM
There have been a lot of comments on AR the past few weeks regarding looking at your 2009 Business Plan (I've written a few myself!). As we've all witnessed and experienced, particularly over the past several months, the economy is in constant flux-day-to-day, week-to-week, month-to-month-and the real estate industry feels each and every shift. You need to be prepared to shift with it, just as you would with the fluctuating needs and goals of your clients. While you're thinking about your business plan for next year and setting your production and personal goals, keep in mind that the end of 2009 … (1 comments)
mahtomedi mortgages: Mortgage Rate "movers" for the week ahead- 11/24/08
- 11/24/08 01:05 AM
A lot of economic data will come out during this short week ahead. Existing Home Sales will be released today. The first revision to third quarter Gross Domestic Product (GDP) will come out on Tuesday. GDP is the broadest measure of economic growth. Wednesday will be a huge day with Durable Orders, Chicago PMI, Personal Income, and New Home Sales. Consumer Confidence and Consumer Sentiment are also on the schedule for next week. Mortgage markets will be closed on Thursday and will close early on Wednesday and Friday for Thanksgiving. Have a great Thanksgiving week! … (0 comments)
mahtomedi mortgages: Homeownership Incentives Now May Lead to Another Housing Problem?
- 11/21/08 11:03 AM
Lawmakers under political pressure to "do something" to stimulate the economy and stop the slide in housing prices must act carefully and reject proposals that will do more harm than good. Among the bad ideas circulating are proposals for a new $22,000 home buyer tax credit, legislation overturning the ban on seller-financed down payment programs and calls for a federally financed interest rate buydown on mortgages. The following is a statement I saw on behalf of the National Multi Housing Council (NMHC) and National Apartment Association (NAA) Joint Legislative Program by Doug Bibby, NMHC President. "We understand the desire of lawmakers … (1 comments)
mahtomedi mortgages: What about next years homebuyers? Look at credit NOW!
- 11/20/08 02:20 AM
If you have clients planning on waiting out this housing downturn, intending to buy a home when the coast is clear, the first step for them is to start checking their credit reports now. There may be some surprises waiting. Credit card companies are reducing credit limits on some borrowers. And for some people, that may cause a drag on their credit score. Here's why: A major factor in calculating a person's credit score is credit utilization. When your total available credit shrinks, the percentage of credit that is being used goes up-and that has the potential to do some damage … (1 comments)
mahtomedi mortgages: Mortgage Rate "movers" for the week upcoming- 11/15/08
- 11/14/08 09:32 AM
A lot of inflation data will highlight the Economic Calendar next week. The important Consumer Price Index (CPI) inflation report will come out on Wednesday. CPI looks at the price change for those finished goods which are sold to consumers. The Producer Price Index (PPI) will be released on Tuesday. PPI focuses on the increase in prices of "intermediate" goods used by companies to produce finished products. In addition, Industrial Production, an important indicator of economic activity, will come out on Monday. Housing Starts and the detailed minutes from the October 29 Fed meeting will be released on Wednesday. The Philly Fed … (0 comments)
mahtomedi mortgages: New HUD form unveiled today
- 11/12/08 01:14 PM
HUD today released their proposed changes to the HUD-1 settlement statement. If you haven't seen it, I've got a copy of the website page below to take a look at it. http://www.namb.org/images/namb/GovernmentAffairs/RESPA/hud-1.pdf The good news: easier for clients to read. The bad news......it will make a Realtor's life more difficult because it give Chartered Banks a leg up in dealing with clients over Mortgage Professionals. They still require Brokers to list any YSP (yield spread premium) but Banks DON'T HAVE TO. I have no problem with listing YSP....but why shouldn't everybody have to??? It's still paid out regardless. I guess the … (3 comments)
mahtomedi mortgages: Another great "Media Day" for Economic News
- 11/12/08 01:58 AM
Here in Minneapolis-St. Paul, we are still a 2 newspaper town. It's interesting to see how each looks at some Real estate trends that surfaced this morning. The St. paul paper has an above-the-fold headline, " Over One-Third of Homeowners Lose Money on Homes". Of course, that caught my eye....being in the business. Upon reading the article, it uses stats from Zillow.com to show that 34% of Twin Cities homeowners are selling their homes for less than the purchase price of that home. Does that take into account any information on financing, down payment, foreclosure or not? But it makes a … (0 comments)
mahtomedi mortgages: Mortgage Rate "movers" for the week ahead- 11/7/08
- 11/07/08 03:48 AM
Today's mortgage market reaction to the weaker than expected Employment report appeared to be counterintuitive, as mortgage rates rose a little after the news, offsetting some of the rate improvement seen earlier in the week. The explanation is that the jobs data was so bad that investors now expect that another economic stimulus package will be implemented soon. The government will need to issue even more debt to pay for a stimulus package, and mortgage investors pushed rates higher on Friday on concerns about the added supply of debt. As expected, the Employment report reflected weakness in the labor market. The economy … (0 comments)
Investors knew that the economy was in tough shape in December, and there was little reaction to today's Employment report. The economy lost -524K jobs in December, which was very close to the consensus forecast. The Unemployment Rate jumped to 7.2%, the highest level since 1993, from a revised 6.8% in November. 2.6 million jobs were lost in 2008, mostly during the final four months of the year. The manufacturing and construction sectors remained weak, while there were small gains in education and health care. Average hours worked fell to a record low, which may be a leading indicator for additional … (0 comments)
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