mortgage loan: Behind The Housing Starts Headlines, The Story That Matters! - 01/20/12 06:06 PM
When it comes to housing data, sometimes you have to look past the headlines. December’s Housing Starts data offers a terrific illustration of why.
Each month, the Census Bureau tallies Housing Starts for the month prior. A “housing start” is a home on which construction has started.
The Housing Starts report is separated by property type. There is a count for single-family homes; a count for 2-4 unit homes; and a count for buildings of 5 units or more, a category including apartments and condominiums.
In December, as reported by the government, Housing Starts fell 4 percent nationwide overall. This runs … (2 comments)

mortgage loan: Mortgage Rates This Week, Up or Down? - 09/12/11 05:28 PM
 
Mortgage markets improved last week as a weakening Eurozone and questions about the U.S. economy sparked a global flight-to-quality. Conforming and FHA mortgage rates improved for the second week in a row.
The storylines should sound familiar by now. They are the same ones that have dictated the path of mortgage rates since April 2011. As a result, according to Freddie Mac, mortgage rates across California and nationwide are now at an all-time low.
Not in 50 years of tracking mortgage rates has pricing been so favorable.
Last week’s holiday-shortened week didn’t begin well for rate shoppers in Laguna Beach. Rates … (1 comments)

mortgage loan: Home Affordability Still Tops Nationwide! - 09/12/11 05:25 PM
 
Home affordability slipped slightly last quarter, dragged down by rising mortgage rates and recovering home prices in California and nationwide.
The National Association of Home Builders reports a Q2 2011 Home Opportunity Index reading of 72.6. This means that nearly 3 of 4 homes sold last quarter were affordable to households earning the national median income of $64,200.
Q2 2011 marks the 10th straight quarter — dating back to 2009 — in which the index surpassed 70.
Prior to 2009, the index had never crossed 70 even one time.
However, we must remember that the Home Affordability Index is a … (1 comments)

mortgage loan: Mortgage Guidelines Resume Tightening! - 09/08/11 09:47 PM
 
Mortgage guidelines appear to be tightening with the nation’s largest banks.
In its quarterly survey to senior loan officers nationwide, the Federal Reserve uncovered that a small, but growing, portion of its member banks is making mortgage approvals more scarce for “prime” borrowers.
A prime borrower is described as one with a well-documented payment history, high credit scores, and a low monthly debt-to-income ratio.
Of the 53 responding “big banks”, 3 reported that mortgage guidelines “tightened somewhat” last quarter. This is a tick higher as compared to prior quarters in which only 2 banks did.
46 banks reported guidelines unchanged … (0 comments)

mortgage loan: Where are Mortgage Rates Headed? - 09/06/11 08:36 PM
 
Mortgage markets improved last week on a weak jobs report, expectation for new market stimulus, growing evidence of a global economic slowdown. Rates were especially volatile, too, with the long Labor Day Weekend looming.
Overall, conforming mortgage rates in California improved for the first time in 3 weeks. On a product-by-product basis, though, mortgage rates are faring differently.
According to the Freddie Mac weekly mortgage rate survey, last week, the 30-year fixed rate mortgage was unchanged but the 15-year fixed rate mortgage and the 5-year ARM fell.
The 5-year ARM is at a new all-time low for qualified borrowers.
A drop … (0 comments)

mortgage loan: With The Jobs Report Looming, Mortgage Rates May Rise! - 09/01/11 05:35 PM
 

If you’re shopping for a mortgage rate, today may be a good day to lock one down. That’s because Friday morning, the Bureau of Labor Statistics will release its Non-Farm Payrolls report for August 2011.
The “jobs report” tends to have a big influence on mortgage bonds and mortgage rates in Irvine.
The jobs report is a monthly issuance, providing sector-by-sector analysis of the U.S. workforce. It also report the national Unemployment Rate.
Wall Street expects the August Non-Farm Payrolls data to show 75,000 jobs created in August, down from 117,000 in July; and it expects that the Unemployment Rate … (3 comments)

mortgage loan: Mortgage Rates Bounce Off All-Time Lows; The Start Of A Trend? - 08/26/11 07:27 PM
 

Low mortgage rates are terrific — if you can get them.
One week after posting its lowest mortgage rate in 50 years, Freddie Mac reports that the 30-year fixed rate mortgage rose by an average of 7 basis points nationwide this week to 4.22%. To get the rate, you’ll pay an average of 0.7 “points”.
This week’s rise in the 30-year fixed rate mortgage pulled rates off their all-time lows so either you locked last week’s rock-bottom rates, or you missed it.
Mortgage rates are rising.
As a refinancing homeowner or home buyer in Irvine , rising mortgage rates … (5 comments)

mortgage loan: New Home Supplies Remain Flat; Builders Not Over-Extending! - 08/24/11 05:42 PM
 

Sales of newly-built homes slipped in July, falling 1 percent as compared to June. Home buyers closed on a seasonally-adjusted, annualized 298,000 units, the lowest reading since February.
The supply of new homes, however, remained flat.
July’s 6.6 months of supply equaled June’s tally and remains near the multi-year low of 6.5 months set in May of this year. The figures suggest a new home market that’s finding its balance.
Builders are building to meet demand, and not much more.
The New Home Sales report may have read differently if not for the Northeast Region which doubled its sales units … (1 comments)

mortgage loan: Existing Home Sales Slip In July - 08/23/11 04:53 PM
 
Home resales slipped in July.
According to the National Association of REALTORS®, Existing Home Sales nationwide fell to 4.67 million units on a seasonally-adjusted annualized basis last month. It’s the fourth straight month below the 5 million mark, and the report’s lowest reading since November 2010.
An “existing home” is a home that’s been previously occupied or owned.
In addition, the Existing Home Sales report showed home supplies rising nationwide. At the current pace of sales, in other words, the complete, national “For Sale” inventory would be exhausted in 9.4 months. This, too, is the worst reading since November 2010.
… (1 comments)

mortgage loan: Can Mortgage Rate Go Any Lower? - 08/22/11 08:33 PM
 
Mortgage markets improved again last week, pushing mortgage rates in California to an all-time low; lower than the lows set last November, even.
Last week’s low mortgage rate drivers are primarily European. Joining the debt concerns that have dogged Europe since March, a fresh wave of doubt has surfaced about the health of some Eurozone banks. The fears sparked a new wave of safe haven buying.
Global equities were socked last week and the Dow Jones Industrial Average fell for the 4th straight week. For home buyers in Irvine , though, the timing may be perfect. As stock markets lose, bond … (2 comments)

mortgage loan: Housing Starts Tick Lower; Building Permits Tick Higher! - 08/17/11 07:15 PM
 
Single-Family Housing Starts fell to a seasonally-adjusted, annualized 425,000 units in July, according to the Census Bureau.
A “Housing Start” is defined as a home on which construction has started and ground has broken.
Furthermore, Single-Family Housing Starts were revised lower for both May and June of this year, by 6,000 units and 2,000 units, respectively.
The data may be worthless, however.
Like in most months, the government’s official report states that the Housing Starts numbers have a margin of error exceeding their actual measurement. Mathematically, this renders the data statistically irrelevant.
July Published Results : +4.9% July Margin of … (2 comments)

mortgage loan: Mortgage Rates Drop After U.S. Credit Downgrade... - 08/09/11 08:17 PM
 
Mortgage rates continue drifting downward, despite — or because of — a ratings downgrade on long-term U.S. government debt. Standard & Poors issued a single-notch downgrade after Friday’s market close, from AAA to AA+.
Of the roughly $9.4 billion in publicly-held U.S. debt, 72 percent is long-term (i.e. with duration of 2 years or longer).
U.S. short-term debt was not downgraded.
When an entity — government, business, or other — is cited for a credit downgrade, it means that the risk of lending money to that entity has increased. In theory, higher risk should lead to higher borrowing costs and higher … (0 comments)

mortgage loan: What’s Ahead For Mortgage Rates This Week! - 08/08/11 02:26 PM
Mortgage markets were especially volatile last week, taking rate shoppers in California on a roller-coaster ride. The week’s news schedule was full. It included debt ceiling debates, jobs figures, and ongoing maneuverings within the Eurozone.
Each story a material impact on mortgage rates and, as a result, rates varied wildly from day-to-day.
Throughout the early part of the week, mortgage rates fell.
Monday, bond markets improved as leaks of the congressional debt ceiling agreement surfaced. Investors approved of the accord’s general terms and bought U.S.-backed debt to prove it. Tuesday, when the final agreement was reached and the terms were made public, … (3 comments)

mortgage loan: Mortgage Rates Make New 2011 Lows! - 08/07/11 06:43 PM

Mortgage rates in California plunged to new 2011 lows this week.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the national, average 30-year fixed rate mortgage fell to 4.39% this week — the lowest 30-year fixed reading since November 18, 2010.
The 0.16 drop from last week is the largest one-week rate drop in more than 2 years, and, although the 30-year fixed remains above its all-time lows from November 2010, two other benchmark products made new records this week.
Both the 15-year fixed rate mortgage and the 5-year ARM are reporting lower than at any time in recorded … (3 comments)

mortgage loan: Home Sales Have Heated Up! - 08/04/11 03:37 PM
 
Home sales have heated up, according to the National Association of REALTORS®.
More homes are going under contract this summer than went during the winter or spring seasons. Many of these homes are scheduled for late-August/early-September closings. 
If your home is among them, plan ahead. 
Like for the rest of the U.S. workforce, Labor Day is a popular vacation time in the real estate, title and mortgage industries. Closings come together more slowly when the parties involved are on holiday. In addition, when issues arise, they are often slower to resolve because not everyone is “present”. 
Therefore, if you’re under contract to … (2 comments)

mortgage loan: Mortgage Rate Strategy For July’s Jobs Report! - 08/03/11 07:20 PM

At 8:30 AM ET Friday, the Bureau of Labor Statistics will release the July 2011 Non-Farm Payrolls report. Mark it in your calendar. If you’ve been watching mortgage rates fall to new all-time lows this week and fear a mortgage rate reversal, Friday could be the day.
The monthly Non-Farm Payrolls data can swing a big stick in mortgage markets.
More commonly called “the jobs report“, Non-Farm Payrolls details the U.S. workforce, providing sector-by-sector analysis of workforce, as well as the national Unemployment Rate. 
The jobs report affects mortgage rates because of how important jobs are to the U.S. economy.
… (2 comments)

mortgage loan: What Will The Debt Ceiling Agreement Do To Mortgage Rates? - 08/02/11 07:09 PM
 
The United States is projected to reach its legal $14.294 trillion debt limit today. The limit was set by Congress February 12, 2010. The U.S. Treasury may not issue new debt beyond the debt ceiling.
Since April 2011, Congress has debated ways to remain below the nation’s $14.292 trillion borrowing limit. The debate commenced with the passage of the 2011 U.S. Federal Budget which featured a $1.645 trillion deficit.
This multi-trillion dollar deficit ensured that the debt ceiling would be touched at some point during the current fiscal year.
That date was May 16. It took an intervention from the Treasury … (6 comments)

mortgage loan: The Mortgage Rate Rollercoaster Ride Continues! - 08/01/11 04:11 PM
Mortgage markets improved last week as the U.S. debt ceiling debate continued on Capitol Hill. Bonds traded in a range Monday through Thursday before breaking higher Friday morning.
30-year fixed conforming mortgage rates improved in California last week, falling to levels just north the product’s all-time low set in November 2010.
5-year ARMs improved last week, too. The benchmark adjustable-rate mortgage’s average national rate is now tied with its all-time low, also set last November.
This week, the direction of mortgage rates depends on two events:
The resolution of the U.S. debt ceiling debate, due Tuesday The July Non-Farm Payrolls report, due Friday … (0 comments)

mortgage loan: Pending Home Sales Up For 3rd Straight Month! - 07/29/11 05:21 PM
 
Buyers are writing contracts at a furious pace nationwide.
On a seasonally-adjusted basis, the Pending Home Sales Index rose 2 percent last month to reach its highest level since March.
A “pending home sale” is a home under contract to sell, but not yet closed. 
The forward-looking Pending Home Sales Index is up 11 percent from its low of the year, according to the National Association of REALTORS®, and well ahead of its rolling 6-month average.
Unfortunately, national data isn’t always helpful for buyers and sellers in Newport Coast and nationwide. To help make data more relevant, therefore, the official Pending … (2 comments)

mortgage loan: New Home Supplies Keep Shrinking; Prices Pressured Higher! - 07/27/11 10:22 PM
Home builders are slowly reducing inventory.
According to Census Bureau data, the number of new homes slid 1 percent from May. On a seasonally-adjusted, annualized basis, home buyers bought 312,000 newly-built homes last month.
It’s the third straight month of falling sales and the headline data casts the Irvine housing market in a negative light.
Upon closer inspection, however, the numbers appear quite strong. 
First, sales are down marginally. Total units sold have dropped just 2 percent from the highs of the year. And, second, the number of newly-built homes for sale is down markedly from last year
There are 22% … (2 comments)