The Fast and the Flawless - 12/31/10 12:44 AM
Closing on time, with little or no red tape, saves you money, time and worry. That's why W.J. Bradley has put together a team of the best processors, underwriters, closers and funders in the business. They're fast, they're accurate, and their goal is to make sure you get your loan when you need it. In fact, we have some of the fastest turn times in the mortgage lending industry, measuring the time in hours, not days. Our entire team is charged with the task of ensuring you have the best customer experience every step of the way. Our Operations team is … (0 comments)

Why You Shouldn't Put Too Much Faith In October's Case-Shiller Index - 12/31/10 12:42 AM

The Case-Shiller Index posted awful numbers in its most recent reading. Each of the index's 20 tracked markets showed home price deterioration between September's and October's respective report. Some markets fell as much as 2.9 percent.
The drop in values is nothing about which to panic, however. The Case-Shiller Index is just re-reporting what we already knew. It's a common theme with the Case-Shiller Index, actually; a trait traced to the report's methodology.
The Case-Shiller Index is an imperfect housing indicator with 3 inherent flaws.
The first flaw is that the index makes use of a limited data set, tracking values … (0 comments)

Housing And Mortgage Predictions For 2011 - 12/31/10 12:40 AM
With 2010 coming to a close, the "experts" are out in full force, making predictions for next year's housing and mortgage markets on business television and in the papers.
Predictions for 2011 are wide-ranging:
Some say home prices will rise in 2011 Some say home prices will fall in 2011 Some say mortgage rates will rise in 2011 Some say mortgage rates will fall in 2011 The problem with housing and mortgage predictions is that -- like all predictions -- they're just educated guesses about the future. Nobody knows what will really happen with the housing and mortgage markets in 2011. … (0 comments)

New Home Sales Rise In November; Hint At Strong Winter 2011 - 12/31/10 12:33 AM
Like most housing data in November, the most recent New Home Sales report showed sales volume increasing last month, and home supplies falling.
According to the U.S. Department of Commerce, sales of new, single-family homes increased to 290,000 in November on an annual basis, a figure equal to the New Home Sales 6-month rolling average, and a 6 percent improvement from October.
At the current pace of sales, the national supply of new homes for sale will be exhausted in 8.2 months -- a strong 0.6-month improvement from October.
This data is consistent with the most recent Existing Home Sales report. … (0 comments)

In a market like this one, what advice do you have for your clients who are looking to purchase a new home? - 12/27/10 10:06 PM
In today’s environment we are coupled with historically low interest rates and in some areas depressed home values. This means that there are really good opportunities out there to find, but a new homeowner or investor needs to be sure that their financing and leveraging themselves correctly. On the side of locating good properties and getting a good deal, I cannot stress enough how important it is to work with a good and qualified real estate agent. Do your homework, check references, ask for referrals, and find out if they are the right fit for your home hunt. I have many … (1 comments)

What's Ahead For Mortgage Rates This Week : December 27, 2010 - 12/27/10 10:04 PM
Mortgage markets worsened again last week as the holiday-shortened sessions did little to buck recent momentum. Although Freddie Mac reported mortgage rates dropping 0.02% from the week prior, loan officers on the street will report the opposite. Rates did not fall last week.
Conforming mortgage rates moved higher for 7th straight week.
For rate shoppers and home buyers, it's been a harrowing two months.  
Since the Federal Reserve announced its QE2 program November 3, 2010, mortgage rates have moved from all-time lows to 7-month highs. Mortgage payments now cost $38 more per month per $100,000 borrowed as compared to the … (2 comments)

Home Inventory Dwindles Into The New Year - 12/27/10 10:02 PM
Existing Home Sales jumped another 6 percent in November, the report's third month of improvement since bottoming in July.
According to the National Association of REALTORS®, a quarter-million more existing homes were sold during the annual period ending in November as compared to October.  An "existing home" is a home that cannot be considered new construction.
Additionally, the national housing supply dropped by a full month. At the current pace of existing home sales, the complete stock of homes for sale will be exhausted in 9.5 months.
November's strong housing data is yet another signal to buyers that the housing market's … (1 comments)

Housing Starts Rise In November, But With A High Margin Of Error - 12/22/10 11:48 AM
The number of single-family Housing Starts increased in November, adding 30,000 units as compared to October.
The Census Bureau defines a "housing start" as a home on which construction has started.
November's starts represents a 7 percent increase from the month prior. However, if you see the Housing Starts story online or in the papers, you'll notice that the press is calling the market gain at 4 percent.
So which result is right? The answer is both.
The government's monthly Housing Starts data is published as a composite report; lumping activity among 3 separate housing types into a single, group reading.
… (0 comments)

Foreclosure Activity Plunges (But With An Asterisk) - 12/22/10 11:45 AM

According to foreclosure-tracking firm RealtyTrac, the foreclosure filings fell 21 percent in November to 262,339 units nationwide. A foreclosure filing is defined as default notice, scheduled auction, or bank repossession. 
November marked the first time since February 2009 that the number of monthly filings failed to surpass 300,000 units.
There were other notable November statistics, too, included:
November's 21 percent month-to-month decrease was the largest in RealtyTrac's recorded history November's 14 percent year-to-year decrease was the largest in RealtyTrac's recorded history Nevada led the nation in foreclosure activity for the 47th straight month However, we can't read into November's RealtyTrac … (0 comments)

As manager of a real estate office, what traits have you seen successful Realtors portray that unsuccessful Realtors do not? - 12/20/10 05:15 PM
I’ve seen that a lot of very successful Realtors open themselves up to the new techniques of finding business.  It’s important to understand were the upcoming buyers and sellers may be! However, most of them still get the majority of their business the old fashioned way. 

Never underestimate the power of prospecting past clients and your sphere of influence. Be sure you always provide superior service and do everything you can to make your clients happy and you’ll never have to worry about a bad referral.  Past clients, friends, and family will always be willing to recommend you to a friend!
 … (1 comments)

What's Ahead For Mortgage Rates This Week : December 20, 2010 - 12/20/10 05:10 PM
Mortgage markets worsened again last week as belief in a U.S. recovery and concerns for inflation took hold on Wall Street.  Conforming mortgage rates rose for the 6th straight week.
According to Freddie Mac's weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage is 0.66% higher this week as compared to rates on November 11, but loan originators will tell you that figure is understated.
Real mortgage rates -- mortgage rates available to everyday homeowners and buyers are up by as much as a full percentage point since November, and loan costs are rising, too.
The Refi Boom of … (0 comments)

Time for Your Mortgage Review - 12/20/10 05:08 PM
Your mortgage is one of the cornerstones of your financial foundation, so it’s important that you take some time each year to ensure your fiscal “house” is in order. Each year’s financial planning should include an annual review of your home financing to make sure that your loan is in line with your short- and long-term financial goals, as well as with what’s happening in the marketplace. Some people call it a mortgage checkup, some people call it a mortgage review, but whatever you call it, ensure that you take some time each year to take a look at your home … (0 comments)

Why Builder Confidence Surveys Matter To Buyers Of New Homes - 12/17/10 10:51 AM
Home builder confidence is holding firm this month, according to the National Association of Home Builders.
The group's monthly Housing Market Index survey posted 16 for December. That's the same value as from November. It's also equal to this 2010's average HMI reading.
HMI is scored on a scale of 1-100, and is a composite of 3 separate home builder surveys measuring single-family sales; projected single-family sales over the next six months; and prospective buyer foot traffic.
The results of the 3 surveys were as follows:
Single-Family Sales : 16 (unchanged from November) Projected Single-Family Sales : 25 (unchanged from November) … (0 comments)

Simple Real Estate Definitions : Loan-Level Pricing Adjustments - 12/17/10 10:48 AM
Loan-level pricing adjustments are mandatory loan fees based on a borrower's specific default risk.
First introduced in 2008, LLPAs were Fannie Mae's and Freddie Mac's logical response to massive balance sheet losses. At the time, the housing market was deteriorating and mortgage delinquencies were rising.
To "better align with loan risk characteristics", the two entities created specific fees to be associated to specific loan traits, to be charged to all borrowers.
LLPAs are still in existence today.
Today's loan-level pricing adjustments can be grouped into 5 basic categories. Application exhibiting any of the 5 traits can trigger LLPAs, adding to a … (0 comments)

Mortgage Protection Insurance - 12/14/10 07:47 PM
Buying a home brings many responsibilities in addition to providing the income to cover the mortgage, and maintain the residence. Along with your Homeowners insurance you also need to consider having Mortgage insurance. Some Mortgage insurance is called PMI (Private Mortgage insurance) which the lender tacks on to the loan as an additional fee (if you put less than 20% down). This generally protects the lenders from the loan defaulting. But Mortgage insurance can also be provided by purchasing a Life Insurance policy on one, or both, of the spouses in the household. This protects the families financial future should something … (1 comments)

A Simple Explanation Of The Federal Reserve Statement (December 14, 2010 Edition) - 12/14/10 07:44 PM
Today, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged within in its target range of 0.000-0.250 percent.
In its press release, the FOMC noted that since November's meeting, the "economic recovery is continuing", but at a pace deemed too slow to make a material impact on unemployment rates. It also said that household spending in increasing, but remains constrained by joblessness, tight credit and lower housing wealth.
In addition, the Fed used its press release to re-affirm its plan to keep the Fed Funds Rate near zero percent "for an extended period" while also opting … (1 comments)

What's Ahead For Mortgage Rates This Week : December 13, 2010 - 12/13/10 07:13 PM
Mortgage markets worsened last week as the U.S. economy showed additional signs of strength; and global demand for mortgage bonds slipped.
Conforming mortgage rates rose around the country for the fifth straight week. It's a streak that's been marked by volatile pricing that's rendered rate shopping difficult.
Last week, lenders published as many as 5 rate sheets per day where, by comparison, over the past 12 months, lenders have averaged closer to 2 rate sheets per day.
This week, with a bevy of data set for release and a Federal Open Market Committee meeting, expect volatility to remain high. Wall Street … (0 comments)

Fannie Mae Guidelines Change Monday. Apply Today To Lock In To "Old" Rules. - 12/10/10 11:38 AM
Fannie Mae rolls out new mortgage guidelines Monday. Therefore, if you're in the process of applying for a conforming home loan, consider giving your complete application by the close of business Friday.
All Fannie Mae applications taken on, or after, December 13, 2010, are subject to the changes.
As compared to mortgage guidelines updates of the last 3 years, Monday's roll-out is relatively small. There is no change to the maximum debt-to-income ratio, for example; nor is there an increase in the minimum FICO score requirement.
Most mortgage applicants nationwide will be unaffected.
Others, however, will find getting approved to be … (2 comments)

Home Affordability Reaches Record-Levels... Last Quarter. - 12/09/10 04:37 PM

Last quarter, with home prices still relatively low and mortgage rates making new, all-time lows almost weekly, the cost of home ownership was extraordinarily low in most U.S. markets.
According to the National Association of Home Builders' quarterly Home Opportunity Index, 72.5 percent of all new and existing homes sold between June-September 2010 were affordable to families earning the national median income. This ties the all-time high for home affordability, set in the first quarter of 2009.
The data also underscores that, when compared to historical norms, it's a fantastic time to be a home buyer.
Prior to 2009, the … (0 comments)

Economic Roundup! - 12/09/10 04:34 PM
Labor productivity for the third quarter jumped by a 2.3 percent annual rate over the last period, nearly keeping pace with analyst predictions of a 2.4 percent gain. Productivity is measured as output compared to hours worked, and according to last week's report from the Bureau of Labor Statistics, non-farm labor output increased 3.7 percent and hours worked increased 1.4 percent in the third quarter. Non-farm business productivity increased 2.5 percent from the third quarter of 2009 to the third quarter of 2010, as output increased 4.3 percent and hours worked rose 1.7 percent. These gains are moderate, which could point … (0 comments)

Boost Your 2010 Tax Deductions By Making Your January Mortgage Payment A Little Bit Early - 12/08/10 02:25 PM
Looking for an extra 2010 tax deduction? Consider making your January mortgage payment a few days early.
It's a simple strategy that works because of how mortgage interest works.
Unlike rent which is paid in advance at the start of a month, mortgage interest is only paid after it's been borrowed. Your January mortgage payment, therefore, accounts for the interest that accrued in December.
And for a lot of homeowners, that mortgage interest is tax-deductible.
By making January's mortgage payment in December, eligible homeowners can apply the interest paid to 2010's tax returns instead of waiting to claim the same deduction … (0 comments)

Pending Home Sales Index Points To A Budding Seller's Market - 12/07/10 02:01 PM
The Pending Home Sales Index surged 10 percent in October as low mortgage rates and low home prices spurred buyers into action.
A "pending home sale" is an existing home under contract to sell, but not yet closed. The Pending Home Sales Index is at its highest level since April 2010 -- the contract deadline date for this year's federal home buyer tax credit program.
The jump may also explain why home builder confidence is rising even as the number of new homes sold fades. Builders are seeing buyers' renewed interest in housing first-hand and expect the next 6 months to … (2 comments)

What's Ahead For Mortgage Rates This Week : December 6, 2010 - 12/06/10 05:39 PM
Mortgage markets lost ground last week on growing optimism for the economy, a poor run for the dollar versus the euro, plus the lingering concerns that inflation will grip the U.S. long-term.
Conforming mortgage rates rose for the fourth week in a row, stymying rate shoppers and raising the effective cost of homeownership for new buyers in need of a mortgage.
After a spectacular run that drew 30-year fixed rates to near 4.00, mortgage rates have returned to their highest levels since late-June.
Last week was heavy on news. Bond traders were hit with the Beige Book; with the ADP Challenger … (0 comments)

A Smarter way to buy Group Health Insurance - 12/06/10 05:36 PM
Health Insurance premiums are a topic all over the news these days! Their annual increases have shocked the buying public into demanding some kind of action from the government. What kind of change that will take is somewhat in the air, as the government has put off the effective date several years into the future, and who knows what will end up actually being incorporated into the rules and regulations? But, there is a strategy that you can take advantage of right now, that can lower your premium by 30%! This strategy takes into account the actuarial knowledge gleaned from years … (0 comments)

Understatement : Freddie Mac Says Mortgage Rates Rose Last Week - 12/03/10 10:16 AM

It's been a wild 30 days for home affordability.
Since the Federal Reserve's November 3 press release, in which our nation's central banker committed $600 billion to bond markets, mortgage rates have leaped, moving quicker than the news can report them.
This week is a terrific example of that.
Today, newspaper headlines around the country read that mortgage rates rose 0.06% on average over the past 7 days, and that average loan fees remain unchanged at 0.8 points. The data is based on Freddie Mac's Primary Mortgage Market Survey, a weekly poll of more than 100 lenders around the country.
… (0 comments)

Mortgage Rates Rapidly Rising On Jobs Data; More Risk Ahead For Friday - 12/02/10 08:03 PM
Mortgage rates are rising, up nearly 1 percent since mid-October. Tomorrow, rates could rise again.
The Bureau of Labor Statistics releases the November jobs report at 8:30 A.M. ET Friday. With a stronger-than-expected reading, mortgage rates should continue their climb, harming home affordability nationwide.
And already, Wall Street is bracing for big results.  Here's why.
Wednesday, payroll processor ADP said that 98,000 private-sector jobs were created in November. The figure was a complete blowout reading as compared to analyst estimates, which had the results in the 50,000 range. But that wasn't all. ADP re-measured and re-reported October's gains, too. It found … (0 comments)

September's Case-Shiller Index Reflects A Slowing Housing Market - 12/01/10 02:27 PM

Standard & Poors released the September Case-Shiller Index Tuesday. The Case-Shiller Index is a home-value tracker. The report shows home prices down 0.7% from August and values fading, in general.
Case-Shiller representatives assessed the findings as "another weak report; weaker than last month", citing deterioration in 18 of 20 tracked markets. Upward pricing momentum from the summer is slowing and values remain 30% off the market's June 2006 peak. It could spell bad news for home sellers this winter.
That said, the Case-Shiller Index is imperfect; its methodology flawed. The index is not meant for use by individual buyers or … (0 comments)