Special offer

weekly mtg rate update, spotlight: CHRC

By
Mortgage and Lending with Wells Fargo Home Mortgage 461452

 

Hey there - what a roller coaster for rates this week - fortunately they are down a bit today - we'll see what happens as time goes on.  Below are various commentaries on what the rates are doing.   Also check out the info on the Spotlight of the week:  Community Housing Resource Center.  Although based in Vancouver WA they are eager to serve folks in the Portland area.  I know some of the folks over there and I can tell you they really work hard! 

Make it a great weekend; call me if I can be of any assistance

 

Hugs,

 

 

  

From Think Big, Work Small

Treasuries and mortgages started firm this morning and were boosted more at 8:30 when Mar housing starts and permit data were reported. Mar starts were expected to have increased 5.7%, as reported the increase was 1.6% to 626K annualized units, the highest level since Nov 2008. Construction of single-family houses decreased 0.9% to a 531,000 rate in March, while permits increased 5.6%. Work on multi-family homes, such as townhouses and apartment builders, climbed 19% to an annual rate of 95,000. New home construction rose 20% in March from the same month last year. Permits were up 34% in the 12 months ended in March. Since most of the increases in starts were multi-family and only the South had increases traders see it as a weak report.

 

Although the housing starts were weaker in March than forecast, the big revision in Feb starts evened the two months out. With all increases in the South and declines in every other region the report is seen as a slight negative from the markets' perspective. The bond market took it as a weak housing report and equity markets apparently see it the same way with the key indexes opening weaker this morning.

 

Another support for the interest rate markets this morning is the continuing issue in Europe over the debt crisis in Greece. A problem that seems to grow more legs everyday and won't go away. The current outlook (at least today) is being treated as a support for the bond market. European Union ministers met to discuss Greece's budget deficit; saying Greece doesn't have an immediate plan to trigger a rescue package even as the country's bond yields rose to the highest since before the bailout plan was announced. With no real progress noticeable, the bond market this morning is getting a bid with still nothing of substance other than a lot of talk, a safe haven move.

 

Interest rate markets are also being supported this morning on comments last night from SF Fed Pres Yellen. Yields on two-year notes, most sensitive to central bank monetary policy, fell below 1.0% for the first time in over a month as Janet Yellen said yesterday inflation is "subdued." Earlier this week the CPI data confirmed no inflation in the pipeline and last week's 10 yr inflation-indexed note auction implied little worries over any increases. Hardly anyone out there is expecting inflationary pressures, including Bernanke. No inflation concerns will keep interest rates from increasing, however that alone will not trigger a big decline in interest rates. Treasury will have to continue borrowing $192B a month in 2 yr through 30 yr notes and bonds, keeping interest rates from falling much.  

 

The final data point this week; at 9:55 the U. of Michigan consumer sentiment index, expected at 75.0 frm 73.6 at the end of March. The index was 69.5 much lower than forecasts; the current conditions index expected at 84.0 fell to 80.7 frm 82.4 at the end of March, the expectations index at 62.3 from 67.9 at the end of March was forecast at 68.7, and the 12 month out expectations at 71.0 frm 78.0 at the end of March. The report was very weak compared to estimates, but the volatility in the data twice a month has been discounted somewhat in the markets. That said, it does introduce more concerns over the economic future.  

 

From Freddie Mac

 

April 15, 2010
McLean, VA - Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.07 percent for the week ending April 15, 2010, down from last week when it averaged 5.21 percent. Last year at this time, the 30-year FRM averaged 4.82 percent.

The 15-year FRM this week averaged 4.40 percent, down from last week when it averaged 4.52 percent. A year ago at this time, the 15-year FRM averaged 4.48 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.08 percent this week, down from last week when it averaged 4.25 percent.  A year ago, the 5-year ARM averaged 4.88 percent.

The 1-year Treasury-indexed ARM averaged 4.13 percent this week, down from last week when it averaged 4.14 percent. At this time last year, the 1-year ARM averaged 4.91 percent.

"After rising for four consecutive weeks, mortgage rates eased back to where they were two weeks ago and still remain historically low," said Frank Nothaft, Freddie Mac vice president and chief economist. "The Federal Reserve (Fed) indicated in its April 14th regional business survey that consumer prices generally remained level and producers had difficulty passing along increases in some raw materials. This will likely keep inflation at bay as evidenced by the 1.1 percent growth in core consumer prices for the 12-months ending in March 2010, which was the lowest annual increase since January 2004.

"Low mortgage rates continue to help stabilize the housing market. The Fed noted that residential activity increased while home prices were stable across most of its 12 Districts over the six weeks prior to April 5th. In addition, credit standards remained generally unchanged across

From Dick Lepre, San Francisco

Thursday April 15, 2010

Initial Claims - 484,000 Consensus 440,000 Previous 460,000
Capacity Utilization - Actual 73.2%, Consensus 73.3%, Previous 72.7%
Industrial Production  - Actual 0.1%, Consensus 0.7%, Previous 0.1%

Wednesday April 13, 2010

Core CPI is flat.  Retail Sales ex-auto was is +0.6%.  As we pump up the deficits to levels not previously imagined we will not be paying the price until inflation sets in and yields rise to devestating levels.  The non-existing inflation is giving us the continued opportunity to do nothing about the deficits.

Tuesday April 13, 2010

At the start of most every business day, I open several sites regarding the economy and sometimes I get confused.  The lead story in Bloomberg says, in the first paragraph, "The trade deficit in the U.S. widened in February more than anticipated as imports climbed, adding to evidence of a rebound in economic growth." If "economic growth" means GDP this sentence is incorrect.  GDP is diminished by imports.   GDP = C+G+I+(X-M).  The trade deficit is "X-M" and if the trade deficit is a larger negative number then GDP is diminished, other things being equal.  daily Treasury tech seems to have turned bearish and yields are lower.

 

Community Housing Resource Center

Who We Are

The Community Housing Resource Center provides education and counseling services to individuals and families in Southwest Washington and throughout the Portland metro area in Oregon.  In the past 15 years, the Center has worked with over 23,500 households.  Over 5,000 of which have purchased a home within one year of working with the Center.

Services include:  financial education and credit repair and financial management counseling, first-time homebuyer counseling, certified homebuyer education classes, assistance with applications for special first-time homebuyer loans and closing cost assistance for qualified buyers, a Lease Purchase homeownership program and long-term preparation to become first-time homeowners.  Other services include mortgage default prevention counseling and assistance to senior citizens to safely use home equity as a means to supplement their incomes through reverse mortgages.

Budget, credit, debt management and foreclosure prevention counseling services are available in both Spanish and English.

The Center provides its services to all community residents and families, the majority of those who receive services are of low to moderate income.


FAQ

What services do you offer?
¿Ofrecen sus servicios en español? Do you offer your services in Spanish?
I don't earn a lot of money. Can I still buy a house?
I earn an above-average income. How can you help me?
What do your services cost?
What if I don't know if I can afford to buy a house?
Do you offer financial assistance?
Can you refer me to a lender or realtor?
What if I have credit issues?
Are there special loan programs for people with lower income?
Are there any programs for people with disabilities?
Is there any help for seniors who have trouble making ends meet?
I'm behind in my mortgage payments. What should I do?
How are you funded?
How do you work with employers?

 

Community Housing Resource Center

2700 NE Andresen Rd., Ste. D3

Vancouver, WA. 98661

360-690-4496 X101

Fax: 360-694-6665

 

Our mission is to provide quality education and counseling services to increase opportunities and access to community resources for people who strive to create financial security, housing stability or homeownership for themselves and their families, thereby creating a vital and stronger community.

 

 

 

Comments (1)

John Pusa
Glendale, CA

Mary - Thank you for sharing a very good blog.

John

Apr 16, 2010 07:22 AM