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RATE LOCK & MARKET ADVISORY - January 1, 2012

By
Mortgage and Lending with LoanOfficerSchool.com NMLS 291249

DAILY MORTGAGE LOCK ADVISORY 

January 3, 2012, 7:00 AM PST

Click for Lock Advice Updated Several Times Daily  

   

Mortgage Interest Rate lock Advice for locks within 7 days:  LOCK
Mortgage Points based on 3.5% Mortgage Backed Securities are up 0.22 point. 

 

30 Day Mortgage Interest Rate Lock or Float Advice:  FLOAT with Caution

There is not conclusive evidence to lock but, In this uncertain market the best advice is to lock at historic low rates.

 

National Average Fixed Rate Mortgage 3.91%   
MBS (3.5%) - 102.62, High: 102.84, Low: 102.61   
DJI Stocks currently $12,450.40,  Up $232.84, Change 1.87%   
Asian & European Stock Market Indexes Up 1.072%   
Nymex Crude Oil Currently $102.24 Up $3.41    
                  
MORTGAGE NEWS BRIEFS

Oil prices spike 2% on Iran supply threats
Iran's missile launches have heightened concerns over its threat to close the Strait of Hormuz, leading to a rise in oil prices.  Oil prices surged more than 2% for the second time in a week on Tuesday, fueled by continued anxiety over Iran's growing threat to shut down the Strait of Hormuz after the Iranian military launched a missile test.  Read More in CNN Money

 

This week; interest rates are likely to increase a little after two weeks of improvement mostly on safety moves over the holidays. Nothing out of Europe in that time frame, now that the holidays and New year are behind look for renewed comments out of the region. Europe's financial system woes and debt fears still have not been resolved and likely won't be fro many months. The situation has plagued global markets for months; concerns of bank failure contagion and the potential of dragging the US and other economies back into recession have kept US interest rates low and the equity markets quite volatile. Those factors may be lessening, markets have become less fearful of recession and financial system contagion.

 

Signs show strategic default on the decline

     New Survey Finds 59% of Homeowners Would Not Consider Strategic Default
RealtyTrac is calling 2011 the year of foreclosure litigation, strategic default, failing foreclosure law firms and shadow inventory.
     It also was a year of infighting between regulators, underwater mortgages and the year when Mortgage Electronic Registration Systems faced suits over everything from its business model to its assignment procedures. Read More Housing Wire  

 

FHA Ant-flip Waiver Extended; Tax Deductible MI Ending?
 
FHA lenders had reason for cheer and mirth at the end of last week. "In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting FHA Commissioner Carol Galante will extend FHA's temporary waiver of the anti-flipping regulations." With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days, but this rule is waived through December 31, 2012 Read More Mortgage News  

Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Thanks for the report

Jan 03, 2012 02:12 AM
Bill Ladewig
LoanOfficerSchool.com - Escondido, CA
Experience Is Your Advantage

Janice, thanks for the comment.  Happy New Year

Jan 03, 2012 02:18 AM