Matthew's Blog

December 9th Market update and the state of lending guidelines

Matthew Royer (Homes Mortgage) — Wed, 09 Dec 2009 13:16:04 -0600

Good snowy afternoon,

I hope everyone is staying warm and taking their time on the roads today, in the short time I was out there was a lot of slipping and sliding around. I think I’ll grab a cup of tea to keep warm this afternoon.

There isn’t too much on the economic news front that is affecting rates at the moment. The demand for the treasury bond auction this afternoon wasn’t as high as many analysts were anticipating and this is spilling over into higher interest rates from lenders this afternoon. We could see them tick a bit higher in the coming day or so at this rate.

So, now that we are being told that we are out of a recession, it’s time to see mortgage lenders loosen their guidelines and make it a little easier for people to buy or refinance again right? Wrong. CNN had this article up this morning which iterates what I have been seeing on the mortgage broker side of the world. Financing approval isn’t getting any easier currently and although it should never go back to the early years of this decade, I would hope to see some common sense adjustments made over the coming year or two.

Rates are trending upward slightly from last week with the 30 year fixed going down to 4.875% and the fifteen year fixed at 4.375%.

That’s it for now, have a great week,

Matt

December 2nd Market Update

Matthew Royer (Homes Mortgage) — Wed, 02 Dec 2009 10:29:31 -0600

Good Morning,

As you will see with interest rates below, we have seen a spike since last week. There is no specific economic news driving this on its own. It really is a simple matter of averages. Mortgage Backed Securities, the driving factor behind fixed mortgage rates, reached a near milestone last week at this time. We saw rates as low as they have been by reaching a level that we have only seen one other time in the past two years. So, it becomes inevitable that the prices will not sustain that amazing level and tend to drop back down.

With rates being this low, I came across a great article for anyone who is considering refinancing on their home with some tips about not only finding options available to you but also to help homeowners define their priorities and goals from refinancing. If you know of someone considering it, this would be a solid starting point.

The market has been holding fairly steady this past week and we have seen rates lower slightly from last week once again with the 30 year fixed going down to 4.75% and the fifteen year fixed at 4.25%.

Have a great week,

Matt

Thanksgiving Market Update

Matthew Royer (Homes Mortgage) — Wed, 25 Nov 2009 12:46:49 -0600

Good Afternoon,

First off, thank you to all of you for the business you have sent me this year, I appreciate it and hope that I’ve provided you with a little entertainment if not good information over the year J

Shannon and I are hosting our families again this year so we’ll be spending this evening cleaning and prepping…yippee. I will keep this week’s update short and sweet. With the current market, rates are in a very good place but they will certainly start rising again eventually. I’ll keep everyone apprised as usual.

The market has been holding fairly steady this past week and we have seen rates lower slightly from last week once again with the 30 year fixed going down to 4.50% and the fifteen year fixed at 4.25%.

Have a great Holiday, be safe!

Matt

Lend me your time and I will earn your trust

Matthew Royer

Mortgage Planner

Homes Mortgage
2127 County Road D E STE C-100 Maplewood MN 55109

mroyer@homesmortgage.net
www.mattroyer.net

ph:
cell:

fax:

651-770-0637
612-232-7646

651-294-1001

November 18th Market Update

Matthew Royer (Homes Mortgage) — Wed, 18 Nov 2009 10:54:45 -0600

Good morning,

I have attempted to explain my thoughts on why interest rates are currently lower than they should be and why that will change in the coming year. Yesterday, I came across an article from CNN that goes a little further in depth in explaining it. If you are interested in checking it out, feel free to read up.

The big economic news today was that new housing construction has dropped over 10% in October. There seems to be some debate between economists on this being good or bad. On one hand, you have the fear that this trend will continue and that meaning that the housing industry will be slowing down. The other side of the coin is that with fewer new homes to buy, this could lead to more existing homes being purchased. Will either happen? Probably a little of both but only time will tell how dramatic this number ends up being or if it just ends up being another stat for economists to debate over until a new number comes and piques their interest.

The market has been holding fairly steady this past week and we have seen rates lower slightly from last week with the 30 year fixed at 4.75% and the fifteen year fixed at 4.25% although they are looking to head back up by the end of the day again.

Have a great week!

Matt

November 11th Market Update

Matthew Royer (Homes Mortgage) — Wed, 11 Nov 2009 10:05:08 -0600

Happy Veteran’s Day!

First and foremost, I want to send out my thoughts and wishes to our troops, especially with the recent tragedy at Fort Hood.

For those of you who haven’t heard, the Homebuyer Tax Credit has been officially extended until the end of June. One key component of this is the additional incentive added for homebuyers who have not purchased a home in the past five years. Previously ineligible, they are now offered up to $6,500 as a tax credit if they buy in this extended time frame as well. Although I think this is a great gesture for current homeowners, I feel that few will be able to take advantage in such a short time frame unless they were already working on selling their current home.

The market has been holding fairly steady this past week and we have seen rates creep back down from this time last week with the 30 year fixed at 4.875% and the fifteen year fixed at 4.375%.

Until next week,

Matt

November 11th Market Update

Matthew Royer (Homes Mortgage) — Wed, 04 Nov 2009 10:13:36 -0600

Good Morning,

I was able to watch the Vikings/Packers game from an unusual spot this weekend, the hospital. A small kitchen accident resulted in a few stitches to my hand. Luckily, they had a TV in the room to keep me occupied. As a Vikings fan, I am glad that they got the win but I still would have no problems taking on Aaron Rogers for our Quarterback either. Favre is a good Q but boy does he come with a lot of drama and media circus people.

So on to the market. We have been seeing rates creep up slightly over the past week. We fully expect to see this trend continue and here is why: The Federal Reserve’s Mortgage Backed Security Program has spent almost $980 Billion of the approved $1.25 Trillion. What this means is that the Fed won’t be able to keep the false levels of interest rates we have seen for the past six months constant much longer. They have been purchasing excess supply to keep prices stable for quite some time and as they get to the bottom of their fund, rates will undoubtedly rise. The only real question what levels they will rise too.

That’s all for now,

Have a good week.

-Matt

30 year fixed: 5.000%

15 year fixed: 4.375%

Oct 28 Market Update

Matthew Royer (Homes Mortgage) — Wed, 28 Oct 2009 11:23:00 -0500

Good Morning,

I’m happy to say that I’m feeling much better than last week and dare say I’m 100% back to health. You’ll see rates have held steady again this past week so on to other news.

It appears that the Senate will be approving the first time homebuyer tax credit extension. They were unable to finish the vote yesterday so details are still to be decided and finalized as far as any changes and dates for the new extension but anything short of a vote to deny sparks a good sign for it’s passage going forward. We should have a definitive answer by next weeks update.

As expected, new home sales are being reported as encouraging with inventory levels dropping to 7 months across the country compared to over 12 back in January. Many believe that the homebuyer tax credit has helped get the home market moving again.

That’s all for now,

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

October 21st Market Update

Matthew Royer (Homes Mortgage) — Wed, 21 Oct 2009 11:35:11 -0500

Good Morning,

With rates unchanged and me sitting at home with a sinus infection, I’ll keep this one short and sweet. Rates are below and we’re hoping they will hold here for the coming week.

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

October 14th Market Update

Matthew Royer (Homes Mortgage) — Wed, 14 Oct 2009 13:10:47 -0500

Good Afternoon,

As expected, rates bounced back up quickly after matching near record lows last week. A lot of this has to do with investors taking their gains and moving money elsewhere from Mortgage Backed Securities. The Earnings reports released from Intel and JPMorgan Chase also led to a boost in the stock market this morning. This tends to be negative for MBS and interest rates in general.

No new word on the homebuyer tax credit although there are still talks of it being raised to $15,000 and applying to all homebuyers who plan on residing in the home being purchased instead of simply first time homebuyers. This could end up being very good news for the mortgage industry but details have yet to be finalized.

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

TWINS WIN game 163!!! Oh, and this weeks market update...

Matthew Royer (Homes Mortgage) — Wed, 07 Oct 2009 11:11:53 -0500

Good Morning!

We have been fortunate to see rates drop even lower than last week. This was mainly due to last Thursday’s jobs report being released with higher than expected numbers. Mortgage backed securities are now backing off the gains for the first time in a few days which means we should see rates move back up going into the end of the week. One interesting thing to note (well interesting to me anyway); this marks the second time this year we have seen rates this low going back to May as the previous time we watched this level hit. Anytime the rate gets below five, I suggest taking advantage before it is too late for anyone who missed the boat refinancing.

So, on to more important news than the weekly rate minutia; TWINS WIN!!!! Shannon and I were lucky enough to pick up tickets to the game at her insistence and for her only game of the year, I like to think that my wife brought some good luck. Whether or not the Twins can pull out the next series, that was a game for the ages. They made a fun final run in the dome.

Have a good week.

-Matt

30 year fixed: 4.625%

15 year fixed: 4.25%

September 30th Market Update

Matthew Royer (Homes Mortgage) — Wed, 30 Sep 2009 10:50:52 -0500

Good Morning!

It’s been a little while since we’ve seen interest rates dip below 5% in this current market climate. We have seen time and time again over the past two years that when rates near this level, they tend to reverse fairly quickly. This Friday will be the release of the monthly jobs report. Traditionally, this has always indicated a trend in which way interest rates will be heading. This year we have seen it act a little differently, the Jobs Report can signal a rise in interest rates but we have yet to see these numbers drive the market lower.

We’ll keep this one short and sweet.

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

September 23rd Market Update: The Federal Reserve's policy decision

Matthew Royer (Homes Mortgage) — Wed, 23 Sep 2009 10:37:48 -0500

Well, it’s a bit dreary out but for September 23^rd, I’m not complaining one bit.

Rates have been bouncing around since last Wednesday to end up just a tad bit lower than this time last week.

We could see some volatility later today as the Federal Reserve will release their latest policy statement today. In tune with the past several statements, most economists are expecting the Fed to kept he Federal Funds rate unchanged. This leaves us with the current key interest rate of 3.25%. Investors will be looking for how the statement is worded to garner courage for their trading later in the day. This will ultimately determine which direction we see interest rates go this afternoon.

One misconception I have talked about in the past is something I always feel a need to revisit now and again as a reminder. Many outside of the industry tend to believe that there is a direct correlation between the key interest rate and mortgage rates. If the Federal Reserve lowered the key interest rate by .25%, the fixed mortgage rates would not lower by .25%. The fixed rates are more directly tied to mortgage backed securities and the price that these securities can fetch when being sold on the open market.

What would change would be a variable rate mortgage (such as a home equity line of credit from your local bank) because they tend to be tied to the key interest rate. The reason for this is with this type of loan, the bank that offers it to you is borrowing their money from the Federal Reserve if needed at 3.25%. Because they are not selling this line of credit to another bank, they are determining their interest rate based on what they have to pay to lend that money. So if your line of credit is currently 3.5% and the Federal Reserve lowered their rate by .25%, then you would most likely see your Line of Credit lower by that same .25% to 3.25%. This would work the same way if the Federal Reserve chose to raise the interest rate as well.

If you want a longer winded explanation, feel free to let me know!

Have a good week.

-Matt

30 year fixed: 5.00%

15 year fixed: 4.625%

September 16th and the Homebuyer tax credit

Matthew Royer (Homes Mortgage) — Wed, 16 Sep 2009 11:44:45 -0500

Hello again!

After a quick jaunt out to Boston with my wife and a few friends, we are refreshed and ready to tackle the upcoming rush for first time homebuyers to buy a home before the $8,000 tax credit expires. It is currently set to expire on November 30^th which means that many homebuyers will need to make sure they get have an offer accepted by the end of this month to ensure they will be able to close on the new home in time.

Because of the expiration date, we are expecting title companies to get booked up with closings on the final day as well as slow downs in underwriting to accommodate all of the buyers looking to take advantage of the tax credit. Be sure to remind anyone you know buying a home that moving quickly will be important to ensure they do not lose out.

Rates are still in a great position, they have risen slightly over the past two weeks but are still very low, making for a great time to buy.

Have a good week.

-Matt

30 year fixed: 5.125%

15 year fixed: 4.625%

September 2nd Market Update

Matthew Royer (Homes Mortgage) — Wed, 02 Sep 2009 11:01:48 -0500

Good morning,

Well, well, well. There has been a little dip in interest rates this week, the first time we have seen the 30 year fixed rate drop below 5% in a few months.

This is mainly due to the stock market needing to self correct itself over the past month. Many analysts have forecasted for some time that there would be a down week coming along in the stock market and when that happens, most investors end up moving the money over to Mortgage Backed Securities…when this happens, we see the fixed mortgage rate drop a bit.

As we saw last time with this, these rates don’t tend to last long and when they head back over 5%, it ends up being very tough for them to come back below that threshold.

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

August 26th Market Update

Matthew Royer (Homes Mortgage) — Wed, 26 Aug 2009 11:00:24 -0500

Good morning,

As expected last week, rates rose to 5.375% through Friday of last week. Today’s market reactions have brought us back down to where we were last week. There was a rally in the market based on the positive results of the 2-year Treasury Auction being released yesterday.

This is still a time to be weary of where rates are heading, we are still in an artificial rate environment with the Federal Reserve purchasing mortgage backed securities themselves to keep demand consistent. When they use up the 1.3 Trillion they have dedicated to this program, rates will almost assuredly rise. So, let’s enjoy low rates while we can.

Have a great week!

-Matt

30 year fixed: 5.125%

15 year fixed: 4.625%

August 19th Market update: Time to renegotiate rate locks!

Matthew Royer (Homes Mortgage) — Wed, 19 Aug 2009 10:51:34 -0500

Good morning,

We have seen a nice little rally over the past couple days resulting in interest rates dropping by .25%. Not too shabby.

As with last week, tomorrow brings another Treasury auction announcement from the Federal Reserve which more than likely means we will see a slight deterioration in interest rates by the end of the day. Yesterday afternoon and this morning would be a great time for clients whom have already locked in their interest rates to call their lender and renegotiate for the best rate possible. A typical renegotiation will be about .125% higher than the going market rate. My afternoon was booked with renegotiating the home purchase loans that are closing at the end of this month.

Have a great week!

-Matt

30 year fixed: 5.125%

15 year fixed: 4.625%

August 12th Interest rate update

Matthew Royer (Homes Mortgage) — Wed, 12 Aug 2009 11:18:46 -0500

Good morning,

Rates have bounced a bit higher and back down over the past week and with the financial reports expected today, we could very well see rates tick up a bit higher by the end of the day today.

That being said, the Federal Reserve is issuing two major statements today that could lead to potential volatility in both directions. In times like this, I always advise my clients to lock in their rate before they lose it. If rates get significantly better, there is always a chance to renegotiate for a lower rate but holding out on locking when the market goes bad, always results in a rate worse than what we expect.

The two reports coming out are first, the results of the $23 Billion bond Auction that was held last week and the second is the monthly Fed Policy update. The key interest rate is expected to stay the same but their comments on inflation expectations have ears throughout the market, waiting to react to the news one way or another. This will ultimately determine which way we see rates go by the end of business today.

Have a great week!

-Matt

30 year fixed: 5.375%

15 year fixed: 4.875%

August 5th Market Update

Matthew Royer (Homes Mortgage) — Wed, 05 Aug 2009 12:28:52 -0500

Good afternoon,

Rates have taken a slight rise over the past few days and have settled so far. The main news that has been causing a rise in rates is due to more and more mortgage bonds being auctioned off by the Federal Reserve. This mornings announcement from the Federal reserve is an additional $75 Billion Dollars worth of bonds will be put up for auction next week. Once again it comes down to supply and demand…many are speculating that with such a large amount of Bonds up for sale, that the value will decline. If this holds true, then we can see rates rise once again.

That’s it for now, short and sweet.

Have a great week!

-Matt

30 year fixed: 5.375%

15 year fixed: 4.875%

A tax credit reminder and July's final Market Update

Matthew Royer (Homes Mortgage) — Wed, 29 Jul 2009 13:27:49 -0500

Seriously? Where does the summer go?!? I’m trying to make the most of it by getting myself to my first Twin’s game of the year. Apparently we saw history with Mark Buehrle shutting down the Twins first 18 at bats to make it 45 in a row after his perfect game…not fun to watch as a fan. At least the Twins pulled it out.

Ok, on to the market in case you don’t care about baseball or are just a wee bit curious. Rates have risen a bit since last week and will most likely hold here or higher for a bit with the treasury auctions that will be happening this week. The Fed has $110 Billion worth of treasury bonds to sell off. Supply and Demand being what it is, this is a lot of supply that can and will affect overall value of bonds for the time being.

Rates are still in a great range historically speaking.

**One final important note, the $8000 first time homebuyer tax credit is set to expire on November 30th. For buyers to take advantage, their mortgage needs to close on or before that date. With new legislation being passed, it will become increasingly harder to close a loan in 30 days or less, let buyers know this before they lose out**

Have a great week!

-Matt

30 year fixed: 5.25% 15 year fixed: 4.75%

Can your client get a better interest rate once they have locked? It's possible!

Matthew Royer (Homes Mortgage) — Wed, 15 Jul 2009 11:06:11 -0500

Good morning,

Inflationary pressures have brought interest rates back up to where they were last Wednesday…they did lower down to 5% last week from Thursday through Monday.

This brings up an important point that I focus on with my clients as closing comes nearer; Rate Renegotiation. When you, or a client, lock in the interest rate on a loan, many are under the assumption that this is the final rate you can receive no matter what. This isn’t always the case.

If the market rates have improved significantly (say .25% or more) as closing draws nearer, there will be a small window of opportunity for the loan officer to renegotiate with the lender for a lower interest rate. Now, because of the rate lock previously, the new rate won’t be quite as low as if they had never locked but will still improve the overall rate.

With interest rates becoming increasingly more volatile again, I suggest that clients lock in as soon as they can knowing that they no longer run the risk of being forced to take a higher rate but still have the flexibility to lower their interest rate if the market improves. I find this takes a lot of worrying out of the loan process and suggest passing on this knowledge anytime you come across someone you know buying or refinancing their mortgage because many loan officers don’t take the time to do this for their clients until they are asked.

Rates this week are below.

-Matt

30 year fixed: 5.25% 15 year fixed: 4.75%

Jun 24th Market Update

Matthew Royer (Homes Mortgage) — Wed, 24 Jun 2009 09:23:23 -0500

Good Morning, In this market climate, we are seeing excessive day to day volatility. As you will see from last week, rates have spiked back up to the same levels as we saw earlier this month. There has been no real market shifting news since last Thursday when rates took this drastic drop. There is a potential in change again today when the Federal Bank finishes their monthly two day meeting. Expectations are that the key interest rate will not change but the wording of the statement they release has been known to cause fluctuations both up and down. In the meantime, I’m planning on keeping my mind on the Wimbledon Championships. The beauty of DVR allowing me to both work undistracted yet see all of the days matches in the evening. Have a great week and enjoy the reprieve we are having from the past couple days of heat. 30 year fixed: 5.50% 15 year fixed: 5.25%

June 17th Market Update....Rates lowering again!

Matthew Royer (Homes Mortgage) — Wed, 17 Jun 2009 10:47:29 -0500

Hello there, We have seen a great rally in the Mortgage Backed Securities Market over the past five days, getting us nearer to the levels of interest rates we saw before the market was flooded with supplies of these securities last week. We’ll be happy to have these rates back while we can but as we have seen, there is an increased volatility back in interest rates and as the Federal Bank uses up more of their funds to control the interest rates on the market, the less hold they will have over them…meaning we could see quite a seesaw coming in the next several months so my advice would be to reduce the gray hair collection and advise clients to lock while they are low instead of trying to time the market perfectly and risk losing out on a great rate. One benefit we have seen to this spike in interest rates is that underwriting times have reduced, meaning that for new homebuyers, it is much easier to close a loan within 30 days for the time being. Have a great week, you know where to reach me with any questions on this market. Matt 30 year fixed: 5.125% 15 year fixed: 4.875%

May 13th Market Update

Matthew Royer (Homes Mortgage) — Wed, 13 May 2009 09:47:59 -0500

Good Morning,

This week brought out some volatility in the interest rates…and after rates took a rise over the past week they are back down this morning. The main reason this morning is due to news spreading that both England and Germany have announced their belief that the economic recovery will take longer than they initially believed.

This caused a gut reaction in the stock market (which we have seen for years, this is a pretty standard reaction) which leads us back to square one with rates holding consistent with last week.

30 Year fixed: 4.625%

15 Year fixed: 4.375%

Matt

May 6th Market Update for St. Paul

Matthew Royer (Homes Mortgage) — Wed, 06 May 2009 10:39:37 -0500

Good Morning,

As you will see below, rates are holding steady once again.

In the volatile Twin Cities purchase market, most lenders are now requiring a minimum of a 10% down payment unless the borrower chooses to take what I consider the more expensive FHA option. Yes, there is less of a down payment with FHA, but the additional costs and fees associated with it can end up hurting the borrower in the long run by pushing them into a higher mortgage balance than they would have with a comparable program.

Of course, going from a 3.5% down payment to a 10% down payment is a huge adjustment for most home buyers. Fortunately we have seen a new lender enter the purchase market that is now allowing us to offer a 5% down payment program because of their business relationship with one of the main mortgage insurance companies, whom are the sole company to insure mortgages up to 95% of the purchase price in our market currently.

I won’t get into the complexities of these two options. For a homebuyer who can scrape up the additional 1.5% down payment, this leads to a great opportunity that will put them ahead in the long run on their mortgage, making options to either refinance or sell that much easier in a trying market.

Have a good week.

Today’s Rates:

30 Year fixed: 4.625%

15 Year fixed: 4.375%

Matt

Good Morning, As you will see below, rates are holding steady once again. In the volatile Twin Cities purchase market, most lenders are now requiring a minimum of a 10% down payment unless the borrower chooses to take what I consider the more expensive FHA option. Yes, there is less of a down payment with FHA, but the additional costs and fees associated with it can end up hurting the borrower in the long run by pushing them into a higher mortgage balance than they would have with a comparable program. Of course, going from a 3.5% down payment to a 10% down payment is a huge adjustment for most home buyers. Fortunately we have seen a new lender enter the purchase market that is now allowing us to offer a 5% down payment program because of their business relationship with one of the main mortgage insurance companies, whom are the sole company to insure mortgages up to 95% of the purchase price in our market currently. I won’t get into the complexities of these two options. For a homebuyer who can scrape up the additional 1.5% down payment, this leads to a great opportunity that will put them ahead in the long run on their mortgage, making options to either refinance or sell that much easier in a trying market. Have a good week. Today’s Rates: 30 Year fixed: 4.625% 15 Year fixed: 4.375% Matt

March 22nd Market Update

Matthew Royer (Homes Mortgage) — Wed, 25 Mar 2009 11:27:19 -0500

Happy Wednesday!

You will see that rates are holding low thus far into the week. There really isn’t too much on the economic front that has changed.

My wife, Shannon and I were talking last night about the economy last night and brainstorming on a few simple ideas that I think can help almost any business in this atmosphere. Whether you are in a referral industry or even if you work for a company, a great way to keep a company going is by remembering who you know that would help your employer. It all comes down to one key question: Who do you know?

In my business, it comes down to who YOU know? Do you know of another realtor that has had a frustrating closing and needs someone they can trust? Do you know of a friend or family member that might want to look at the options of refinancing? Do you know of someone looking to buy a home that would like someone to walk them through the process? Do you tell them who they need to talk to?

Those are a few elements I would like you to keep in mind when thinking of me and how I can help the people most important to you. Now, what I would also like to know is what questions you would like be to be asking who I know to help you. So let me know. I know that by learning more about the best ways to help you, I have stronger options for helping my clients and friends with any need that comes up.

Have a good week.

Today’s Rates:

30 Year fixed: 4.75%

15 Year fixed: 4.5%

Matt

Matthew Royer
Mortgage Planner

Homes Mortgage
ofc 651 770 0637

cell 612 232 7646
fax 651 766 5201

toll free 888 481 0009