Boy Howdy it was quite a roller coaster yesterday with the rates! Below are some commentaries that speak to the rate environment. And below that is one example of how the "NSP" (Neighborhood Stabilization Program) funds are being utilized. Each county/municipality utilizes the NSP funds a bit differently. I've included info on how the City of Gresham administers the monies. Let me know if you would like info on Portland, Washington County, etc and I can forward you some links. In the meantime please let me know how I can be of assistance to you as a resource for mortgage lending.
Sincerely,
Mary
From Think Big, Work Small
|
Treasuries opened lower this morning after the overdone buying in the last couple of days; mortgages weaker also. Yesterday's panic selling of stocks and safe haven moves to treasuries triggered on the European debt crisis that is growing quickly was likely somewhat overdone for the moment. While we continue to expect increased debt default problems in the mid-major European Union, it is likely the ECB will have to step in and either take over the debts, but if that occurs it would shake the foundations on which the EU was formed. As a side bar; sovereign debt concerns are now on the front burner; after the global economic meltdown two years ago, and the efforts by central banks to save financial systems, sovereign debts have increased geometrically. Unless there is an unexpected huge increase in economic growth debt issues are going to be with us for a long time; the US will face it but likely not for a few years.
The lower house of parliament in Berlin today voted 390 to 72 in favor of Germany's share of the 110 billion-euro lifeline from the euro-region and International Monetary Fund that will allow Greece to avoid default. The upper house, or Bundesrat, where Germany's 16 states are represented, also backed the bill. The fact Germany anteed up is a relief now but Greece is bankrupt and providing $164B in aid is a bandage on a sunken chest wound. Spain Portugal, Italy and Ireland are facing potential debt problems and may need that and more assistance to avoid defaults.
This morning's April employment report was much better than markets were expecting; non-farm job growth jumped 290K jobs while expectations were for an increase of around 200K. The view that the anticipated gains would come mostly from temp census workers was wide-spread, that didn't happen. The number of census workers was just 66K, most jobs came from the private sector. The unemployment rate however jumped 0.2% to 9.9%, markets were expecting unchanged to down 0.1%. The increase in unemployment rate is due to discouraged workers now returning to looking for work, thus increasing the rate. In March and Feb revisions today increased job growth by a combined total of 121K more jobs than originally reported (+68K in March and +53K in Feb. Manufacturing jobs increased 44K in April; on revisions in March up 19K and Feb up 16K, +18K from original reports.
We cannot stress hard enough that potential market volatility is going to remain very high through the rest of the day today and through the next couple of weeks. The headline will remain the sovereign debt problems in Europe as the US and European central bankers try to work out a passable solution; which isn't likely to be an easy task. The key issue centers on potential changes in the EU structure and whether the EU will come out of it without a change in the original structure of the Union.
Safe haven moves into US treasuries will likely continue for weeks as the debt issues work through. Working against sustained lower rates however, is the improvement seen this morning in the employment sector. Volatility in the bond market and stock market will continue at extreme levels as investors wrestle with the two pronged focus-----safe haven moves to treasuries at times and domestic economic growth data. The key now for the economic outlook is how much of an impact the debt issues in Europe will have on the economic outlook here and around the globe. China is making moves to slow down its growth to head off inflationary pressures, adding to the murky economic outlook at the moment.
|
From Freddie Mac: Mortgage Rates at Lowest Level in Six Weeks
For Immediate Release May 6, 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 5.00 percent for the week ending May 6, 2010, down from last week when it averaged 5.06 percent. Last year at this time, the 30-year FRM averaged 4.84 percent.
The 15-year FRM this week averaged 4.36 percent, down from last week when it averaged 4.39 percent. A year ago at this time, the 15-year FRM averaged 4.51 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent this week, down from last week when it averaged 4.00 percent. A year ago, the 5-year ARM averaged 4.90 percent.
The 1-year Treasury-indexed ARM averaged 4.07 percent this week, down from last week when it averaged 4.25 percent. At this time last year, the 1-year ARM averaged 4.78 percent.
"Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMs followed suit," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks; initial rates on 5/1 hybrid ARMs hit an all-time low since they were added to the survey in the beginning of 2005.
"The homebuyer tax credit helped support home sales in March, and anecdotal reports point to strong April sales as well. Pending existing home sales rose for the second consecutive month in March to the strongest pace since October 2009, just before the original deadline for the credit, based on figures published by the National Association of Realtors®. Three of the four Census regions showed an up tick in sales, led by the South with a 12.7 percent gain, while sales in the Northeast fell 3.3 percent. To receive the federal
Come Home to Gresham
Homebuyer Assistance Program
$25,000 toward the purchase of foreclosed homes in Gresham
The City's Come Home to Gresham homebuyer assistance program offers 0% interest, deferred-payment loans of $25,000 to help qualified buyers with downpayments and closing costs when purchasing an eligible foreclosed property in Gresham. No payments are due on the loan until the home is sold or refinanced.
Qualified Homebuyers:
•q Must complete 8 hour homebuyer education class
•q Household Income up to 120% area median (see chart on reverse of this page)
•q Must pay $1,000 or 1% of purchase price (which ever is greater)
•q Total debt-to-income (excluding student loans) of no more than 45%
•q Total liquid assets (excluding retirement accounts) at closing no more than $15,000
•q Approved for first mortgage
Eligible Properties:
•q Foreclosed or deed-in-lieu (real estate-owned) single family home, townhome or condo
•q Located in NSP Target Area (see map on reverse of this page)
•q Must pass basic inspection - homes with lead paint hazards or needing repairs not eligible
•q Home should have working refrigerator & stove at time of HQS inspection
Conditions of Sale:
•q Sale price must be at a minimum of 1% below current appraised market value
•q Appraisal must be done by a licensed appraiser
•q First mortgage must be fixed-rate loan meeting federal standards (no ARMs or subprimes)
•q Loan funds may be applied towards down payment, closing costs, any pre-paids, and toward purchase price (ie toward reducing 1st mortgage)
Other Restrictions:
•q Buyer must maintain home as primary residence
For more information, contact:
Rebecca Miller, (503) 292-4964 ext. 116 or rmiller@cvision.org
Or visit: www.greshamoregon.gov/homeloans or http://cvision.org/connect-to-services/buy-a-home/ Lenders & Realtors, to receive a complete packet of materials, please provide your email address to Rebecca Miller, listed above.
Funding for the program is provided through the Neighborhood Stabilization Program, as part of the federal Housing and Economic Recovery Act of 2008. The program is meant to help local communities mitigate the negative impact of foreclosed homes on neighborhoods.
Maximum Income is based on household size:
|
Household Size: |
Maximum Annual Household Income: |
|
1 |
$58,800 |
|
2 |
$67,200 |
|
3 |
$75,600 |
|
4 |
$84,000 |
|
5 |
$90,700 |
|
6 |
$97,450 |
Comments(0)