Rate Lock Advice & Mortgage Market Update

Rate Lock Advice & Mortgage Market Update

DAILY RATE LOCK ADVICE
May 10, 2010, 8:00 PT
Lock Advice is Updated Several Times Daily

Short Term Rate lock Advice for loans that must lock today:  LOCK
MBS prices are down -7/32. Investors are moving funds back to stocks and out of bonds.
Mortgage Rates run opposite MBS prices

Long Term Mortgage Rate Lock or Float Advice:  LOCK
The eased problems in Greece should hurt Mortgage Rates but the situation there is volatile and the Mortgage market must be closely monitored.

• National Average Fixed Rate Mortgage
• Down 0.01% at 5.04% on May.7
• MBS Yields Opened at 4.706% Down 0.071%.
• 10 Year Treasury Currently 3.450% Up 0.04%
• DJI Stocks $10,773.35,  Up 392.92, 3.79%
• European and Asian Markets Up 6.117%
• Nymex Crude Oil Currently $77.37 Up $2.26

MORTGAGE MARKET NEWS IN REVIEW

Monday, May 10
The big news effecting stocks this morning is that the European Union will make available $1 trillion to support Greece and other European Union members which are experiencing economic troubles.

Friday, May 7
The economy added 290K jobs, above the consensus of 190K, while the Unemployment Rate rose to 9.9% from 9.7%.

Thursday, May 6
This morning, weekly Jobless Claims fell to 444K, close to the consensus forecast of 440K.

Wednesday, May 5 - Bad news for EU is good news for US Mortgage Rates.
Early this morning the ADP jobs estimate for April was expected at +30K, as reported +32K; March was revised by ADP from -23K to +19K. A good report on jobs but there was no reaction to it in markets that are completely consumed with the unraveling of events in Europe and concerns that the EU may be permanently altered as the crisis of debt defaults has not been contained. All focus now is on safety to US treasuries and fears of a stock market decline. US stock markets will suffer as the euro currency falls against the dollar, investors will be leery of buying US equities as the dollar strengthening takes away buying from European and foreign investors in general.

Tuesday, May 4
March Pending Home Sales increased 5.3% from February, and were 21% higher than one year ago at this time.

Monday, May 3
The EU and IMF finance ministers approved the unprecedented bailout for Greece after a week that saw the country's fiscal crisis spread to Portugal and Spain.

Tuesday 05-04
March Pending Home Sales increased 5.3% from February, and were 21% higher than one year ago at this time.

Monday 05-03
The EU and IMF finance ministers approved the unprecedented bailout yesterday for Greece after a week that saw the country's fiscal crisis spread to Portugal and Spain.

Friday, 04-30 1st Quarter 2010 Gross Domestic Product (GDP) rose 3.2%, which was very close to expectations.

• Bernanke confident on recovery  AP Associtated Press
• VA Loans Show Good Intel Is Best Defense The Department of Veterans Affairs' loan guarantee program-which requires no downpayment-has performed much better than, say, the troubled Federal Housing Administration program.  National Mortgage News
• Employers added most jobs in 3 years in March STLToday
• B of A agrees to cut loan amounts for underwater borrowers. National Mortgage News
• Maybe there is help for Jumbo Loans. Broker Universe
• Mortgage Brokers are the cheapest conduit to bring loans to market according to FHA Commissioner, David Stevens TBWS
• OneWest Bank's sweetheart deal with our Bank Owned Government (BOG) Must See Video

California Rates 05-10-10, 8:00 PT
30 Year Fixed to $417,000
Rate 4.625%  Point 1.250, APR 4.794%
APR Based on $350,000 Loan at 80% LTV
Above Rate can be locked  for 30 days.
Click for Quotes on FHA and VA loans With Detailed Cost Estimates.
 No Application or Credit Report required

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