Scott 's Blog

Mortgage Rates Today! Oct 9th, 2007

Flat Branch Mortgage — Tue, 09 Oct 2007 12:06:20 -0500

Tuesday's bond market has opened slightly in positive territory as investors wait for today's Fed minutes. The stock markets are showing gains with the Dow up 32 points and the Nasdaq up 4 points. The bond market is currently up 3/32, which is not enough to improve this morning's mortgage rates.

The first report of the week comes this afternoon when the Fed will release the minutes to the last FOMC meeting. These may be a major mover of the markets or could be a non-factor, depending on what they say. The key will be concerns over inflation and the Fed's next move. If the Fed members were concerned about inflationary pressures, we may see the bond market move lower and mortgage rates higher later today. However, if they indicate a likelihood of another rates cut in the coming months, we should see the bond market rise and mortgage rates drop during afternoon trading.

The first factual economic data of the week will be posted Thursday morning. August's Goods and Services Trade Balance will be released that day, but is not likely to cause much of a change in mortgage pricing. This data is actually the week's least important. It will give us the size of the U.S. trade deficit, but usually does not lead to significant movement in bond prices or mortgage rates.

Overall, this is going to be an interesting week for the bond market and mortgage rates. The first part of the week will be left to the stock markets and the Fed minutes. Once we get into the economic data, bond traders will have more factual news to trade on rather than emotion from stock market movements. The most important day of the week is Friday with the Retail Sales and PPI reports, but today's Fed minutes may also lead to a fair amount of volatility this afternoon that could carry into tomorrow's trading.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2007

www.AtwoodLoans.com

Bond Market Today, What to expect this week

Flat Branch Mortgage — Mon, 08 Oct 2007 16:04:15 -0500

This week brings us four factual economic reports for the markets to digest. They are all scheduled for release Thursday and Friday, so the first part of the week will be left mostly up to the stock markets. In addition to the factual reports, we will also get the minutes from the last FOMC meeting that can also cause movement in rates. Three of the four reports and the minutes are considered to be moderately or highly important to the bond market and mortgage rates. Therefore, we should expect to see another week of movement in rates.

The bond market will be closed tomorrow in observance of the Columbus Day holiday. The first report of the week comes Tuesday afternoon when the Fed will release the minutes to the last FOMC meeting. These may be a major mover of the markets or could be a non-factor, depending on what they say. The key will be concerns over inflation and the Fed's next move. If the Fed members were concerned about inflationary pressures, we may see the bond market move lower and mortgage rates higher Tuesday afternoon. However, if they indicate a likelihood of another rates cut in the coming months, we should see the bond market rise and mortgage rates drop during afternoon trading.

The first factual economic data of the week will be posted Thursday morning. August's Goods and Services Trade Balance will be released that day, but is not likely to cause much of a change in mortgage pricing. This data is actually the week's least important. It will give us the size of the U.S. trade deficit, but usually does not lead to significant movement in bond prices or mortgage rates.

There are three reports scheduled to be posted Friday. The first is September's Retail Sales report, which is very important to the markets. This data measures consumer spending by tracking sales at retail establishments in the U.S. Since consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop. However, stronger than expected sales could fuel a stock rally and push mortgage rates higher. Current forecasts are calling for a 0.2% increase in sales.

September's Producer Price Index (PPI) is the second report of the day. This index measures inflationary pressures at the producer level of the economy and is considered to be of high importance to the markets. Analysts are expecting to see an increase of 0.4% in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel more inflation concerns in the bond market and push mortgage rates higher. But, weaker than expected readings should lead to lower rates, especially if the sales report doesn't give us stronger than expected results.

The last report of the week is October's preliminary reading to the University of Michigan Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. With the days other two reports being of such importance to the markets, I am not expecting this index to cause much movement in rates. It is expected to show a reading of 84.0, up from September's final of 83.4.

Overall, this is going to be an interesting week for the bond market and mortgage rates. The first part of the week will be left to the stock markets and the Fed minutes. Once we get into the economic data, bond traders will have more factual news to trade on rather than emotion from stock market movements. The most important day of the week is obviously Friday with the Retail Sales and PPI reports, but Tuesday's Fed minutes may also lead to a fair amount of volatility.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2007

www.AtwoodLoans.com

Mortgage Rates Today! Oct 4th 2007

Flat Branch Mortgage — Thu, 04 Oct 2007 17:31:08 -0500

Thursday's bond market has opened slightly in positive territory again following the release of weaker than expected manufacturing data. The stock markets are nearly flat with the Dow up 4 points and the Nasdaq up 3 points. The bond market is currently up 5/32, but we will likely still see a slight increase in this morning's mortgage rates due to weakness in bonds late yesterday.

The Commerce Department said late this morning that new orders at U.S. factories fell 3.3% last month. This was a larger drop than was expected and indicates that the manufacturing sector is weaker than many had thought. This is good news for binds and mortgage rates because slowing economic activity eases inflation concerns and makes long-term investments such as mortgage-related bonds more attractive to investors.

Earlier this morning, the Labor Department said that 317,000 new claims for unemployment benefits were filed last week. This was higher than expected, which also can be considered positive news for bonds. However, because it tracks only a week's worth of claims, traders generally don't pay too much attention to its results. This week is especially true with the monthly report coming tomorrow morning.

The Labor Department will also post September's Employment report early tomorrow morning. This report will reveal the U.S. unemployment rate, number of new payrolls added and average hourly earnings. These are considered to be very important readings of the employment sector and can have a huge impact on the financial markets. The ideal scenario for the bond market is rising unemployment, falling payrolls and a drop in earnings.

If we see weaker than expected readings, I expect bond prices to rise and mortgage rates to drop tomorrow morning. But, if the release shows stronger than forecasted readings, particularly in the number of new jobs and average earnings reading, mortgage rates may spike sharply higher tomorrow.

Analysts are expecting to see a slight increase in the unemployment rate to bring it to 4.7%, an increase in new payrolls of approximately 100,000 and a 0.3% increase in earnings. I am concerned that the jobs number may rebound after last month's surprise decline. Accordingly, I am going into the report cautiously and holding lock recommendations for immediate and short-term periods.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2007

www.AtwoodLoans.com

Mortgage Rates Today! Oct 3rd, 2007

Flat Branch Mortgage — Wed, 03 Oct 2007 10:16:34 -0500

Wednesday's bond market has opened slightly in positive territory after the stock markets showed early weakness. The stock markets are posting losses with the Dow down 49 points and the Nasdaq down 12 points. The bond market is currently up 4/32, which with strength later yesterday should improve this morning's mortgage rates by approximately .125 - .250 of a discount point over yesterday's morning rates.

There was no relevant economic news scheduled for today, so look for the stock markets to be the biggest influence in today's bond trading. If we see further weakness in the major stock indexes, we could see funds shift into bonds, especially with stocks at near record levels. This would lead to bond prices rising and mortgage rates to move lower as investors shy away from the volatility in stocks.

The Commerce Department will post August's Factory Orders data late tomorrow morning. This manufacturing sector report is similar to last week's Durable Goods Orders release, but includes orders for non-durable goods. It can usually impact the financial markets enough to change mortgage rates if it varies from forecasts by a wide margin. Current forecasts are calling for a decline in new orders of approximately 2.8%. An unexpected rise could drive mortgage rates higher, while a weaker than expected reading should push them slightly lower tomorrow.

The Labor Department will post September's Employment report early Friday morning. This report will reveal the U.S. unemployment rate, number of new payrolls added and average hourly earnings. These are considered to be very important readings of the employment sector and can have a huge impact on the financial markets. The ideal scenario for the bond market is rising unemployment, falling payrolls and a drop in earnings.

Weaker than expected readings should help boost bond prices and lower mortgage rates Friday. However, stronger then forecasted readings could be disastrous for mortgage pricing. Analysts are expecting to see a slight increase in the unemployment rate to bring it to 4.7%, an increase in new payrolls of approximately 100,000 and a 0.3% increase in earnings.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2007

www.AtwoodLoans.com

Mortgage Rates Today! Oct 2nd 2007

Flat Branch Mortgage — Tue, 02 Oct 2007 12:42:44 -0500

Tuesday's bond market has opened in positive territory as yesterday's buying seems to be carrying over to today. There was no relevant economic news scheduled for today, but early stock weakness is also contributing to this morning's gains. The stock markets are showing losses with the Dow down 46 points and the Nasdaq down 3 points. The bond market is currently up 8/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point over yesterday's morning rates.

There is no further important economic news scheduled for release until Thursday morning. Until then, expect the stock markets to heavily influence bond trading. With the major stock indexes on a recent rally, there is some expectation of a pullback. This could lead to shifting of funds back into bonds. However, if the rally seems to continue, bonds may suffer, leading to higher mortgage pricing.

The Commerce Department will post August's Factory Orders data Thursday morning. This manufacturing sector report is similar to last week's Durable Goods Orders release, but includes orders for non-durable goods. It can usually impact the financial markets enough to change mortgage rates if it varies from forecasts by a wide margin. Current forecasts are calling for a decline in new orders of approximately 2.8%. An unexpected rise could drive mortgage rates higher, while a weaker than expected reading should push them lower Thursday.

The Labor Department will post September's Employment report early Friday morning. This report will reveal the U.S. unemployment rate, number of new payrolls added and average hourly earnings. These are considered to be very important readings of the employment sector and can have a huge impact on the financial markets. The ideal scenario for the bond market is rising unemployment, falling payrolls and a drop in earnings.

Weaker than expected readings should help boost bond prices and lower mortgage rates Friday. However, stronger then forecasted readings could be disastrous for mortgage pricing. Analysts are expecting to see a slight increase in the unemployment rate to bring it to 4.7%, an increase in new payrolls of approximately 100,000 and a 0.3% increase in earnings.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2007

www.AtwoodLoans.com

Mortgage Rates Today! Sept 27th 2007

Flat Branch Mortgage — Thu, 27 Sep 2007 12:59:38 -0500

Thursday's bond market has opened in positive territory following weaker than expected economic news. None of this morning's data was considered to be highly important, so the reaction has been muted. The stock markets are nearly unchanged with the Dow up 2 points and the Nasdaq up 5 points. The bond market is currently up 7/32, which should push this morning's mortgage rates slightly lower.

The final revision to the 2nd Quarter Gross Domestic Product (GDP) showed that the economy grew at a 3.8% annual pace during the April through June quarter. This was slightly lower than the 3.9% that was expected, but since this data is now aged and the preliminary reading of the 3rd Quarter GDP will be released next month, its results had little impact on bond trading or mortgage rates.

The second release of the day was August's New Home Sales that showed an 8.3% decline in sales. This was a much larger drop than was expected, a 7-year low and indicates that the housing sector is still not at the bottom. This is generally good news for bonds but as with the GDP report, it was not important enough to heavily influence trading or rates.

The Labor Department said that 298,000 new claims for benefits were files last week. This was a sizable difference from the 320,000 that was expected and can be considered negative news for bonds. But since it tracks only a week's worth of claims, it has had a minimal affect on rates.

There are two reports scheduled for release tomorrow morning. August's Personal Income and Outlays and the revised reading to the University of Michigan's Consumer Sentiment Index for September. The first will be released early morning and gives us an indication of consumer ability to spend and current spending habits. This 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 investors. It is expected to show a 0.4% rise in income and a 0.4% increase in spending.

The Michigan index measures consumer confidence and is believed to indicate future consumer spending strength. The preliminary release earlier this month revealed an 83.8 reading. Analysts are expecting to see a small upward revision, bringing the index around the 84.0 level. A lower reading should help improve mortgage rates tomorrow morning, depending on the results of the income and spending data.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2007

Also, visit me at www.AtwoodLoans.com

Today Rate Update Sept 26

Flat Branch Mortgage — Wed, 26 Sep 2007 11:44:42 -0500

Wednesday's bond market has opened in negative territory despite weaker than expected economic news. The stock markets are posting sizable gains with the Dow up 80 points and the Nasdaq up 22 points. The bond market is currently down 9/32, which should push this morning's mortgage rates higher by approximately .250 of a discount point.

The Commerce Department said that new orders for big-ticket items fell 4.9% last month. This was a larger drop than was expected, but this data can be quite volatile due to aircraft and transportation related orders. Still, the news is somewhat favorable to bonds and mortgage rates, but today's stock gains have prevented much interest in bonds.

There are two pieces of relevant economic news scheduled for release tomorrow. The first is the final revision to the 2nd Quarter Gross Domestic Product (GDP). Since this data is aged now and the preliminary reading of the 3rd Quarter GDP will be released next month, I don't see this revision having much of an impact on the financial markets or mortgage pricing. It is expected to show a slight decline from the previous estimate of a 4.0% annual rate.

The second is the release of August's New Home Sales. It is expected to show that sales of new homes fell in August. As was the case with Tuesday's Existing Home Sales data, this report will likely not have a significant impact on mortgage rates.

The Labor Department will also give last week's unemployment claim numbers, which are expected to come in at 320,000 new claims. Unless this figure varies greatly from forecasts, it will likely have little impact on tomorrow's mortgage pricing.

©Mortgage Commentary 2007

Visit my site at www.AtwoodLoans.com

Mortgage Rates Today!

Flat Branch Mortgage — Tue, 25 Sep 2007 11:26:44 -0500

Tuesday's bond market has opened in positive territory following a much weaker than expected consumer confidence reading. The stock markets are posting moderate gains again with the Dow up 17 points and the Nasdaq up 5 points. The bond market is currently up 8/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point.

The Conference Board posted their Consumer Confidence Index (CCI) for September late this morning, showing a reading of 99.8. This was much lower than the 104.5 that was expected and was the lowest reading since November 2005. That indicates that consumers were far less confident in their own financial situations than many had thought. This is good news for the bond market and mortgage rates because waning confidence usually translates into weaker levels of consumer spending.

The National Association of Realtors reported that home resales fell 4.3% last month, which was close to forecasts. This was the sixth consecutive monthly drop in sales, indicating that that the housing sector continues to weaken. However, this data is not considered to be highly important to mortgage bonds, therefore, its results have failed to influence rates this morning.

August's Durable Goods Orders will be posted early tomorrow morning. This report gives us an indication of manufacturing sector strength by tracking orders for big-ticket items at U.S. factories. Current forecasts call for a drop in orders in the neighborhood of 3.5%. A larger decline could help bond prices and cause mortgage rates to drop tomorrow. However, a smaller than expected decrease would indicate a stronger than expected manufacturing sector that would likely help push mortgage rates higher Wednesday.

Mortgage Commentary 2007

Visit my site at www.AtwoodLoans.com

Mortgage Rates Today

Flat Branch Mortgage — Mon, 24 Sep 2007 09:51:00 -0500

This week brings us the release of seven economic reports for the bond market to digest. Three of them are considered to be of low importance and likely will have little impact on mortgage rates. With data scheduled for release each day except tomorrow, we may see an active week in the bond and mortgage markets.

The first important data of the week is Tuesday's Consumer Confidence Index (CCI) for September. This Conference Board index will be posted at 10:00 AM and gives us a measurement of consumer willingness to spend. It is expected to show a decline from last month's reading, indicating that consumers are less likely to make large purchases in the near future. This is good news for the bond market and mortgage rates. Analysts are calling for a reading of approximately 104.5, down from August's 105.0. If we see a larger than expected decline, we should see the bond market move higher and mortgage rates drop Tuesday.

The second piece of data also comes Tuesday morning with the release of August's Existing Home Sales report. The National Association of Realtors posts this data, giving us an indication of housing sector strength by tracking home resales in the U.S. It is expected to show a decline from July's sales, however, this data is not considered to be of high importance to the bond market.

August's Durable Goods Orders will be posted early Wednesday morning. This report gives us an indication of manufacturing sector strength by tracking orders for big-ticket items at U.S. factories. Current forecasts call for a drop in orders in the neighborhood of 2.5%. A larger decline could help bond prices and cause mortgage rates to drop Wednesday. However, a smaller than expected decrease would indicate a stronger than expected manufacturing sector that would likely help push mortgage rates higher Wednesday.

The first of Thursday's data is the final revision to the 2nd Quarter Gross Domestic Product (GDP). Since this data is aged now and the preliminary reading of the 3rd Quarter GDP will be released next month, I don't see this revision having much of an impact on the financial markets or mortgage pricing. It is expected to show a slight decline from the previous estimate of a 4.0% annual rate.

Also Thursday morning will be the release of August's New Home Sales. It is expected to show that sales of new homes fell in August. As with Tuesday's Existing Home Sales data, this report will likely not have a significant impact on mortgage rates.

There are two reports scheduled for release Friday morning. August's Personal Income and Outlays and the revised reading to the University of Michigan's Consumer Sentiment Index for September. The first will be released early morning and gives us an indication of consumer ability to spend and current spending habits. This 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 investors. It is expected to show a 0.4% rise in income and a 0.4% increase in spending.

The Michigan index measures consumer confidence and is believed to indicate future consumer spending strength. The preliminary release earlier this month revealed an 83.8 reading. Analysts are expecting to see a small upward revision, bringing the index around the 84.0 level. A lower reading should help improve mortgage rates Friday morning, depending on the results of the income and spending data.

Overall, this will likely be a fairly active week for mortgage rates. The most important day will either be Tuesday or Wednesday due to the importance of the date being posted those days. For the time being, I am holding the lock recommendations for the immediate, short-term and mid-term periods. If this week's data does indeed show weaker than expected results, I may shift to float across the board. Until we get those assurances, I am concerned that we may see pressure in bonds, possibly leading to higher mortgage rates in the immediate future.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2007

www.AtwoodLoans.com

What happend to Rates today and to come?

Flat Branch Mortgage — Fri, 21 Sep 2007 19:03:02 -0500

Friday's bond market has opened in positive territory despite stock market gains. The Dow and Nasdaq are showing solid improvements with gains of 80 points and 22 points respectively. The bond market is currently up 3/32, but we still will likely see a sizable increase in this morning's mortgage rates as a result of weakness in bonds late yesterday. I am expecting to see today's rates to be approximately .250 -.375 of a discount point higher than yesterday's morning rates were.

There is no relevant economic data scheduled for release today. It appears that traders are more or less tweaking their portfolios today after the recent volatility in the markets. Unless we see a significant move in bonds from their current levels, we likely will see mortgage rates remain at this morning's levels the rest of the day.

Next week brings us the release of a handful of economic releases, but there is only two that should be considered of high importance to the markets and mortgage rates. But, the week's data does give us a broad spectrum of information, ranging from consumer confidence readings to manufacturing activity to housing strength and consumer spending data. Even though several of the reports are not important individually, collectively as a group they could paint a detailed picture of economic strength or weakness and lead to changes in mortgage rates.

There is no relevant data scheduled for release Monday. The first report is one of the two important ones and it is due out Tuesday morning. Look for more details on it and the rest of the week's events in Sunday's weekly preview.

©Mortgage Commentary 2007

Visit me at www.AtwoodLoans.com

Rates to Worsen, Fed Cut Hurt Us

Flat Branch Mortgage — Thu, 20 Sep 2007 11:51:11 -0500

Hello All,

As we were talking yesterday, we found out that all though the Fed Rate Cut did not directly impact rates, the wave caused by this is hurting now. Bonds are currently down 38 basis points and we will more thank likely be seeing another mid day price change for the worst.

I know this topic can be confusing, so let me try to explain what is going on. The Fed's number one concern is containing inflation. This is currently at 2.2%. The target for the fed is 2% inflation per year. What impacts inflation, well we do......every time we buy an kind of goods from any retailer, we are impacting inflation. This drives the stock market and in return takes money out of bonds, resulting in worse rates. The reason the Fed Rate Hike in the first place was to slow buying and contain inflation from going up.

As time passes, we will see that the now 1/2% lower fed funds rate will continue to make an impact in wall street, our everyday lives, and the way investors are treating this, as a now stronger economy. Keep in mind, the stronger the economy, the worse the mortgage rates.

Thanks for Reading......Please feel free to respond or call 573-268-4698.

Visit me at www.AtwoodLoans.com

Fed Cuts Rate .5% Now at 4.75%

Flat Branch Mortgage — Wed, 19 Sep 2007 09:57:19 -0500

Lower Fed Rate Means Opportunities on the Rise

For the first time in more than four years, the Federal Reserve cut its Fed Funds Rate, which directly impacts millions of American borrowers. And while this important decision has many implications, there's still some debate among experts about what this means to the economy as a whole.

The Federal Reserve meets again in six weeks, and no one is certain how market volatility and inflation concerns will affect their future policy and decision-making. Bottom line: Take advantage of this opportunity while you still can. Call me right away.

If you're looking to capture a lower interest rate for refinancing or buying a home, this could be your best opportunity to do so.
If you have an Adjustable Rate Mortgage, while this rate cut might help to improve your situation, now is the time to refinance into a fixed-rate loan.
If you have a Home Equity Line of Credit (HELOC) or credit cards tied to the Prime Rate, the Fed's cut in the Fed Funds Rate just put a little money in your pocket.

Borrowers waiting for a lower fixed-rate mortgage may be waiting for a long time. The chart below clearly shows how Fed Funds Rate cuts do not translate into cuts in fixed-rate mortgages. In January 2001, the Fed Funds Rate was at 6% and 30-year fixed rates averaged 7.03%. By December 2001, following 4.25% in cuts throughout the year, home loan rates were actually up to 7.07%.

Yes, we may experience some temporary improvements in rates in the coming weeks, but the markets will remain volatile as long as inflation and recession are a possible threat to the Federal Reserve's long-term economic policies.

As always, feel free to call or email with any quesitons.

Scott Batt

BIG Thanks to Active Rain!!!!

Flat Branch Mortgage — Tue, 06 Feb 2007 15:30:20 -0600

I would like to take the time to say thank you to Active Rain. I started working on this site as a way to get my name out there on the web and after typing my name on Google and being the first two links, I have realized that it is doing just that. I can also search for my company name and I am listed on four links. This is just incredible to me and I feel that I need to say thanks. I have not been doing this long, starting in December and for this to take place, it just make me want to blog more and more.

Congratulations, to Active Rain creators, mediators, and members for making this site what it is today. This service really does help the normal person with out unlimited funds to keep our name ranking.

Many thanks.

Scott Batt

Reading Your Credit Report

Flat Branch Mortgage — Mon, 29 Jan 2007 17:33:07 -0600

Okay, so you've ordered your credit report. You eagerly await its arrival. When you see the envelope marked Experian, you rip it open only to find what looks to be a bunch of numbers. How do you understand the information provided?

Each of the Credit Reporting Agencies (CRA) will have a report that looks slightly different. The basic information is the same however. Each report will have subject information that will list your name, social security number, current address, previous address, current employment, previous employment, date of birth and spouse's name (if applicable). Your job is to make sure all the information is correct. This is important because if you have been on your job for ten years you want creditors to know. This shows stability. If information is missing or incorrect make sure you follow the CRA's procedure for disputing incorrect information.

The next section will be a summary of your file. It will tell if you declared bankruptcy or have public records or collection items. It will also show what date your file was established and the latest reporting date of trade. It will also break down the amount of high credit you have in your revolving and installment accounts and how much you owe on these. Installment loans are loans with a fixed payment and ending date, such as a car loan or bank loan. Revolving debts are debts that usually have no fixed ending dates, such as credit cards. You can usually add more debt to these accounts as you pay them down. High credit is the amount of money that you can borrow. The owed amount is the amount that you have actually borrowed. For instance, you might have a $5000 credit limit (high credit) on your Visa, but you may have only borrowed $1500. Creditors like to see few revolving debts. Installment debts are better in the long run because you pay lower interest over the long haul. We will discuss why this is so in a later article.

Another area of your credit report is your inquiry history. Believe it or not, this area is important to creditors. They look to see if you have applied anywhere else in the last few days. Most creditors will then call the companies that made those inquiries and ask if you opened a loan with them. Also, they will be looking to see if you are an indiscriminate borrower. Let's say that you have 10 new inquiries on your credit report and six are from department stores and credit cards. To a creditor it looks as if you are going wild, borrowing from everyone in sight. This is not good! You might be able to pay your existing bills fine, but how does the creditor know that you can handle all of this new debt? They can't and most likely you will be denied.

Moving with Children, Made Easier

Flat Branch Mortgage — Fri, 26 Jan 2007 18:21:15 -0600

Moving can be a stressful time for everyone involved, especially children. They may feel like all that they know is aboutto change. Your child may become impulsive or have problems sleeping. They may seem unable to concentrateor appear nervous. If you are noticing some of these behaviors in your child, you will want to help alleviate some of their stress.

Leaving behind friends and school may cause children to exhibit behaviors such as lying, bulling, or defying authority. They may begin bed wetting or seem withdrawn from social situations. The most important things that you can do to help your child is to talk to them, make them a part of moving, and help them to prepare for moving day.

Communication

Talking with your child about moving is an integral part of a child understanding why they are moving. Children are often scared of the unknown. You can alleviate many of their fears by letting them know of the moving date, their last day at school, etc... Make sure to share your positive experiences with moving. Encourage them to ask questions and share their worries about moving.

Preparing for Moving Day

If possible, let the children go house shopping with you. This will allow them to see their new home early on. Take pictures throughout the home if the owner will allow you to. Let your child carry them around and show them to friends. The more they are able to talk about moving, the more comfortable they will become with the idea. Take pictures of your "old" home so that the child can keep them in a memory book.

Have your child pack up their special toys. That way they will know that they are not going to be thrown away, but will be a part of their new bedroom. If possible, let your child have a say in how their new room will look. You want to build as much ownership in your child's living space as you can.

You may also want your child to pack a moving day bag. This bag might include a few books for your child to look at or a few toys to play with. It may also include their favorite stuffed animal or toy.

Make sure that your child has an opportunity to say goodbye to friends and neighbors. Give your child an address book so that they can write down addresses of friends to keep in touch with. Make up cards with your new contact information on it so that your child can give it out to others.

Contact your child's new school prior to your child's first day. Talk with teachers about your child's normal school behavior and let them know the best times to contact you if that behavior changes. Walk your child around the school and make sure that they are able to meet their teacher prior to attending their first day. This will ease some of the fear that your child may be feeling on entering a new situation.

Make Your Child a Part of Moving

Moving day is finally here! While your child may not be able to move many things, they can help to make sure that everything is removed from each room. They can also be responsible for their special toy box and make sure that it is put in a car or spot where they are comfortable with it traveling. Your child can spend time with their moving day bag and eating a snack when they are done.

As you begin to unpack in your new home, your child may still have feelings of apprehension. Getting back into your normal routine as quick as possible will help your child to make the adjustment to their new home. They may be living in a new space, but things at home are the same and soon your new home will be as comfortable as your old one!

Here are some good links on this topic.

http://www.century21.com/smoothmoves/the_plan.aspx

http://www.moversdirectory.com/moving_with_kids.html

http://www.usps.com/moversnet/kids2.html

Scott Batt

Funny Application Stories, Come on Active Rain….I know you have them!

Flat Branch Mortgage — Thu, 25 Jan 2007 12:36:58 -0600

So hear I am, reading my daily blogs from all the wonderful members of Active Rain, and after reading I value my job too much to lie....that much from Ann Guy it prompted me to start thinking about all those weird and even funny applications that I have taken over the years. Now I know this is a little off topic from your post Ann, but funny none the less.

About three years ago, I was taking an application over the phone from a military branch of our country that I will not mention and a Sergeant in the branch, which I will also not mention. Now, I could tell that I was talking with someone on a cell phone with all the background noise but this application was going just fine at this point. Then things got weird, I asked him for his bank information and then I heard a noise in which I will never forget. To give you guys an idea, you hear this noise a few times a day depending how much water you drink. If you haven't caught on, he was relieving him self of his liquids his body produced up till that time in the day. I was already speechless and things just got better from there as he stated talking to someone next to him in the neighbor stall, I heard him say that he was trying to get a VA home loan and was doing an application this very second. All I could do is put the phone on speaker and mute my side of the phone and let my office hear what was going on. This stuff just doesn't happen everyday.

Anyway, I waited for the right time to complete the rest of the application and said that I should have the approval done soon and that I would call him back. The thought of bad credit was in my mind and within 2 minutes I was right.

I was not able to get this Sergeant approved, but it sure did make for a good story.

I hope to hear some more stories from this post. Think Hard.

Thanks for reading.

Buying Leads? To do or not to do! SAVING TIME AND MONEY

Flat Branch Mortgage — Wed, 24 Jan 2007 21:38:15 -0600

I know that this is one great question and I am sure that more than I would love input on. With all the members actively involved on this community, I am hoping to stop spending wasted money on poor leads. PLEASE HELP AND COMMENT ON THIS POST.

In the past six months, I have tried 10 mortgage lead services and spent around $25,000 trying different companies. I have been buying internet generated purchase and refi leads and I have come to one conclusion and that is most leads are not as they seem. I have closed a few but nothing close to were I would like to see my company. I am not trying to steal other members business but if anyone as any advice or methods with out the possibility of hurting their own pocket that would be great.

Thanks so much in advance for all the comments to come.

Entering Text to Localism?

Flat Branch Mortgage — Wed, 24 Jan 2007 11:42:24 -0600

I am not trying to be silly here but can anyone tell me how to enter text in to Localism. I have already uploaded a picture and a description, but I don't see anywhere to enter info.

Any help is greatly appreciated.

Thanks for your comments and help,

Scott Batt

Atwood Mortgage Group

Getting More Approved Loans Back….and Techniques!

Flat Branch Mortgage — Tue, 23 Jan 2007 19:33:52 -0600

Now I'm not perfect but I feel that I have found the best way to get more loans back once sent to be signed. Lets be honest.....it is not hard getting the client approved for the most part and sending out the approval paperwork to be signed. The hard part is getting the paperwork back and getting past all of the questions. My business has been for the most part all internet generated and working on a national platform, so I don't have the convenience of face to face with the borrower and presenting objections with them. What I have found is that the best way to get your paperwork back fast is to Overnight the paperwork to them and set up a phone appointment with them for the next day. This way, you can talk with them as they are looking at the paperwork. I send the paperwork no matter what. As time has passed I have found this to be nothing but a numbers game. The more loans you get in front of a potential client, the more potential's to turn to borrowers.

Why this works? Well from what I can tell, most people get something like this and they want to get this time sensitive material back or at least out of their hair. Make sure that you are including pre-paid shipping material with the package. You want the least amount of objections as possible and I would hate to lose a loan over a 10 dollar shipping charge.

Hope this helps some of the newer LO's out there. Keep in mind to treat your Clients as family and don't ever do anything to them that you would not do to your self. This will keep you in the business and keep those personal introductions (referrals) coming.

Networking Ideas

Flat Branch Mortgage — Mon, 22 Jan 2007 23:09:15 -0600

I have been thinking lately how I like Active Rain and the things that I does for possible business but want to expand and do more networking. I have sat in on a few BNI meetings and thought of this as a possibility but I just done feel like spending 300 dollars a year to be part of a group when I can do the same thing for free. The reason for this post is for the input or ideas from others that have gone out on their own and started a weekly or biweekly networking group. Now in my mind, all this consist of for the most part is a bunch of professional friends going for a beer or two and passing on referrals.

Anyone have any ideas on this topic?

Thank in advance for any comments.....

Good Referral Letter

Flat Branch Mortgage — Sun, 21 Jan 2007 20:47:00 -0600

This entry is a letter that I have been sending to my client's right after pre-approval and the results have been great. Just thought I would share. Please feel free to use if you feel that it fits your needs.

Thank you for selecting me to represent you with your mortgage needs. I appreciate the opportunity you gave me. Financing a home is a big step and a significant investment. You can be assured that the service and attention will not stop with the signing of the closing papers.

The mortgage industry is very challenging and the market is continually changing. In order to better serve you and my future customers, I feel it is my responsibility to always be aware of market conditions and current mortgage options. With that thought in mind, if I can ever be of further service to you, your friends or family members, please think of me.

Most of my clients are referred to me by other satisfied clients. If you have any friends or family that you know are in the market to purchase a new home or refinance their current home, please forward their names using the form below and mail it in the enclosed provided envelope.

I wish you the best of happiness in your home.

Raise your credit score in 45 days

Flat Branch Mortgage — Fri, 19 Jan 2007 09:50:26 -0600

1. PAY PAST DUE ACCOUNTS.

Of course this sounds obvious, but understand that credit scoring software severely penalizes you for having accounts with a past due balance.

2. TRY TO "GET RID" OF YOUR LATE PAYMENTS.

Contact all creditors that have reported late payments on your credit and request a good faith adjustment that actually removes the record of late payments reported on your account. Be persistent, if they refuse to remove the late payments at first, remind them that you have been a good customer that would deeply appreciate their help.

3. REQUEST TO HAVE YOUR CREDIT LIMITS INCREASED.

Contrary to popular belief, having low credit limits on a credit card can actually hurt your credit score. Having low available credit limits affects your "actual debt to available credit ratio". For example, if you owe a total card debt of $10,000 and your total credit available is $20,000, you are only using 50% of your total credit available. But if you have card debt of $10,000 and your total credit available is $15,000, you change your ratio to 66% of your available credit being used. The lower the percentage of debt to available credit the better, as it shows you are able to handle having credit available without running it up to the max.

4. BECOME AN "AUTHORIZED USER".

If you have a short and limited credit history, you can ask someone to add you to their credit card account as a joint account holder or an authorized user. When added, the primary account holder's credit card will appear on your credit report. Credit scoring software will treat the added account as though it is your account and you will benefit from the low balance and the long payment history for that account. It is important to remember that being an authorized user is helpful for your credit score only if (1) the person is carrying debt below 10% of the credit limit on that card and (2) has had good payment history on the card for seven years or longer...and the longer the history, the better. Being an authorized user is potentially detrimental to your credit score if the person giving you the card either maxes out the credit or pays late, since this would report on your credit report too.

5. DO NOT CLOSE YOUR OLD CREDIT CARDS, KEEP THEM ACTIVE.

15% of your credit score is determined by the age of the credit file. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you've had credit...as well as increase your "debt to available credit ratio" as discussed in point 3. Use the old card at least once every six months to avoid the account rating to change to "Inactive". Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down. An inactive account is ignored by Fair Isaac's credit scoring software, so you will not get the benefit of the positive payment history and low balance that card may have had in the past.

I have seen scores increasing up to 100 Points by taking these steps. For you loan officers out there, just think by giving some pointers to your clients if there credit is not that great, how may more loans could you get through if the score went up by 100 points?

Thanks for reading.

Tips for choosing a Realtor

Flat Branch Mortgage — Thu, 18 Jan 2007 12:59:43 -0600

The most common mistake home buyers make is to believe that all realtors actually work for them. If you do not ensure that you have chosen the right realtor, you may easily lose thousands on your deal.

Here are some proven tips for hiring a good realtor

Look for successful real estate agents. Often you would find that every neighborhood has a couple of real estate agents who have assisted in many more real estate deals compared to others. These realtors may charge higher but it is recommended that you approach them. Successful realtors generally have full page ads in local magazines showing numerous listings.

Communication with your realtor is the key to buying great houses. Often realtors lose interest and accuse prospective buyers of un-professional behavior. If you feel that you need to look at more than a dozen homes before you can make up your mind, let the realtor know upfront. Some realtors are more patient than others.

Make sure they have an accurate list house criteria you are looking for, and don't spring any surprises on them after you have seen 10 houses. Give them a written list of all your house buying criteria. Make sure your real estate agent knows every last detail of what type of house you are looking for.

Look for realtor ads that are professional. Some realtors advertise themselves rather than their home listings. Avoid ads that have more than 25% allocated to unnecessary information such as the agent's photo.

Ask the agent if his/her license is updated. Also inquire whether the realtor works part time or full time. It is highly recommended that you chose a full time realtor.

A good practice to follow is to inquire about the training methods of realtors. Every realtor needs to stay updated with the real estate market. Also, try and analyze how good the realtor is with using the Internet. Since many consumers now use the Internet to locate homes, you better have an Internet savvy real estate agent.

Home buyers should always ask their realtor if they will get them a printout of all the recent selling prices AND the original listing prices of homes in their targeted area, showing what the owners paid for them, how much they sold for, and full details on the homes. Realtors that refuse to disclose such information, or worst still, do not have access to this information are not professional.

6 Tried and True Ways to Help Lower Your Homeowner's Insurance Premium

Flat Branch Mortgage — Thu, 18 Jan 2007 01:05:34 -0600

1. Be sure to shop around.

The insurer you select should offer both a fair price and excellent service. Quality service may cost a bit more, but it provides added conveniences, so talk to a number of insurers to get a feeling for the type of service they give. Ask them what they would do to lower your costs. Check the financial ratings of the companies, too. Then, when you have narrowed the field to three insurers, get price quotes.

2. Raise your deductible.

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay according to the terms of your policy. Deductibles on homeowner's policies typically start at $250. By increasing your deductible to $500, you could save up to 12 percent; $1,000, up to 24 percent; $2,500, up to 30 percent; and $5,000, up to 37 percent, depending, of course, on your insurance company.

3. Buy your home and auto policies from the same insurer.

Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them.

4. Beef up your home security.

You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm, or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police station or other monitoring facility. These systems are not cheap and not every system qualifies for the discount. Before you buy such a system, find out what kind your insurer recommends and how much the device would cost and how much you would save on premiums.

5. Stay loyal to your insurer.

If you have kept your coverage with a company for several years, you may receive special consideration. Several insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more.

6. Compare the limits in your policy and the value of your possessions at least once a year.

You want your policy to cover any major purchases or additions to your home. But, you do not want to spend money for coverage you do not need. If your five-year-old fur coat is no longer worth the $20,000 you paid for it, you will want to reduce your floater and pocket the difference.

10 Major Home-Buying Mistakes

Flat Branch Mortgage — Wed, 17 Jan 2007 08:58:07 -0600

1. Not doing your homework.

Knowledge is power. Tremendous information is available on the Internet. There is no excuse for entering the market unprepared.

2. Choosing a lender just because they have the lowest rate.

While the rate is important, consider the total cost of your loan including, loan fees, discount and origination points. When receiving a quote from a lender or broker, insist that the discount points (charged by the lender to reduce the interest rate) be distinguished from origination points (charged for services rendered in originating the loan).

3. Making verbal agreements.

If you're asked to sign a document containing instructions contrary to your verbal agreements--don't! For example, the seller verbally agrees to include the washing machine in the sale, but the written purchase contract excludes it. The written contract will override the verbal contract. More importantly, your state may require that contracts for the sale of real property be in writing. Do not expect oral agreements to be enforceable.

4. Not getting two important contingency clauses in the contract.

When making an offer, a wise home buyer asks for two important clauses -- a mortgage financing contingency and a professional inspection contingency. These could save a lot of money and grief.

The mortgage financing contingency clause saves you if the home doesn't appraise for the offered price. You can cancel the sale and renegotiate the price or get back your deposit.

The second clause hinges the deal on a professional inspector OKing the house. If the inspector discovers hidden flaws, structural damage or faulty systems, the wise home buyer may want to renegotiate or back out of the deal. An even wiser home buyer goes through the house with the inspector to learn any concerns the inspector has.

5. Falling in love with a particular property

If you think a house is ideal, don't let the seller or any of the seller's agents know. If the seller finds out you're in love with the house, the seller could hold out for a higher price.

A wise home buyer knows there are lots of houses -- and there's one out there that's the right house at the right price. It's not a dream house if the payments are a nightmare. If you can't afford it, move on and keep looking.

6. Buying a house that is tough to resell.

Many home buyers stay focused on finding a home sweet home where their families will be happy and safe. You should also remember this is also a big financial investment. Take a moment to look ahead to the day you'll sell the house. Knowing the neighborhood and paying attention to marketable details of the house will go a long way toward preventing a buying mistake.

7. Trying to make a shrewd investment.

People need to buy based on what fits their family. Don't try to guess what will happen to the market.

8. Overlooking an inferior floor plan for an attractive exterior.

It may have gorgeous curb appeal, but you don't live on the lawn. No matter how attractive the exterior, you need a livable home.

9. Choosing a poor location.

Even within a neighborhood, location matters. Is it on the busiest street? Is there a shopping center out the back window?

10. Not buying at all.

If you can afford a home and you don't make that purchase, you'll lose the benefit of tax deductions, building home equity and the appreciation in value.