mortgage economy: Major Blow for the Housing Industry! - 04/05/11 08:45 PM
An already crippled housing industry just received another devastating blow. Mortgage originators have been anxiously awaiting the ruling to stay the implementation of the FBR rule that regulates Mortgage Originators compensation. Today, that attempt was denied by the US Court of Appeals. Rate sheets issued by Lenders show an increase in interest rates by .25-.50% overnight. How is this helping the consumer? … (1 comments)

mortgage economy: Plan To Sell Within 5 Years? Consider An Adjustable-Rate Mortgage. - 04/05/11 02:34 PM
Which is better — a fixed-rate mortgage or an adjustable-rate mortgage? It’s a common question among home buyers and refinancing households in California.
The answer? It depends. 
Fixed-rate mortgages give the certainty of a known, unchanging principal + interest payment for the life of the loan. This can help you with budget-setting and financial planning. Some homeowners say fixed-rate loans they offer “peace of mind”.
Adjustable-rate mortgages do not.
After a pre-determined, introductory number of years, the initial interest rate on the note — sometimes called a “teaser rate” — moves up or down, depending on the existing market conditions. It … (0 comments)

mortgage economy: What's up with Mortgage Rates This Week? - 04/04/11 06:17 PM
In a volatile week of trading, mortgage markets closed unchanged last week. Despite economic data proving stronger-than-expected — a situation that tends to lead mortgage rates higher — concern for persistently high oil prices tempered Wall Street’s excitement and mortgage rates stayed steady.
That’s not to say rates weren’t volatile, however. From day-to-day, mortgage rates showed huge variance last week and several lenders issued five separate rate sheets Friday.
The 12-month average is slightly less than two per day.
Expect the volatility to continue into this week, too. With little economic data due for release, mortgage rates should move on momentum. This would … (1 comments)

mortgage economy: How Does Your Work Commute Compare To Other Cities? - 04/01/11 05:03 PM

As part of the Census Bureau’s data collection activities from 2005-2009, a number of interesting charts have been published at http://census.gov.
The data should not be confused with Census 2010 — a separate survey conducted every 10 years. This is the first-ever, 5-year American Community Survey. Based on data from 3 million households, it details social, economic, housing, and demographic data “for every community in the nation“.
Among the surveys:
Median Household Income, Inflation-Adjusted To 2009 Dollars (Chart) Median Housing Value Of Owner-Occupied Housing Units (Chart) Percent Of Households That Are Married, With Children Under 18 (Chart) The ACS survey … (5 comments)

mortgage economy: Lock Now? Friday’s Job Report Expected To Push Mortgage Rates Up. - 03/31/11 07:08 PM
Friday is a pivotal day for mortgage markets and conforming mortgage rates across California. At 8:30 AM ET, the government will release its March Non-Farm Payrolls report.
More commonly known as “the jobs report”, the monthly Non-Farm Payrolls is a market-mover and home buyers would do well to pay attention. Depending on the report’s strength, mortgage rates could rise, or fall, by a measurable amount tomorrow morning.
It’s because so much of the today’s mortgage market is tied to the economy, and economic growth is dependant on job growth.
With more job growth, there’s more consumer spending and consumer spending accounts for … (1 comments)

mortgage economy: January 2011 Case-Shiller Index : Weak And Flawed - 03/30/11 07:47 PM

Standard & Poors released its Case-Shiller Index for the month of January this week. The index is a home valuation tool, measuring the monthly and annual changes in home prices in select cities nationwide.
January’s Case-Shiller Index gave a poor showing. As compared to December 2010, home values dropped in 19 of the Case-Shiller Index’s 20 tracked markets. Only Washington, D.C. gained. The results were only modestly better on an annual basis, too.
18 of 20 markets worsened in the 12 months ending January 2011.
According to the report, values are down 3.1% from last year, retreating to the same … (2 comments)

mortgage economy: Pending Home Sales Rebound; Suggest Brighter Spring For Housing - 03/29/11 04:52 PM
On a seasonally-adjusted basis, the Pending Home Sales Index rose 2 percent last month, according to the National Association of REALTORS®. A “pending home sale” is defined as a home under contract to sell, but not yet closed.
February’s Pending Home Sales Index rebound breaks a 2-month losing streak, and reverses the recent downward momentum in housing. Both Existing Home Sales and New Home Sales volume showed a sizable loss last month. 
For buyers and sellers of real estate in Laguna Beach , the Pending Home Sales Index is of particular import. It’s one of the few forward-looking indicators in housing, and February’s … (0 comments)

mortgage economy: Where are Mortgage Rates Headed This Week? - 03/28/11 08:09 PM
Mortgage markets worsened last week as nuclear meltdown concerns eased across Japan, and the war within Libya moved closer to a potential finish.
Wall Street voted with its dollars, and a return to risk-taking emerged. “Safe haven” buying softened last week and, as a result, conforming mortgage rates in California made their biggest 1-week spike since late-January.
Mortgage rates remain historically low, but well above their November 2010 lows.
This week, rates could run higher again. Friday’s jobs report is a major story and it will affect mortgage rates in Newport Coast and across the country. Jobs are a key component … (0 comments)

mortgage economy: 15-Year Fixed Rate Mortgages Look Cheap Compared To Comparable 30-Year Fixeds! - 03/27/11 06:16 PM
It’s a great time for buyers and homeowners to look at the 15-year fixed rate mortgage.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the relative “discount” of a 15-year fixed rate loan as compared to a comparable 30-year product is the largest in recorded history. The interest rate spread between the two benchmark products is now 0.77%, nearly double the recent, 5-year average of 0.44%.
Despite its lower rates, however, homeowners that opt for a 15-year fixed mortgage should be prepared for higher monthly payments. This is because the principal balance of a 15-year fixed is repaid in half … (2 comments)

mortgage economy: New Home Sales Fall To All-Time, Recorded Low? - 03/24/11 02:54 PM
Sales of newly-built homes plunged 17 percent to an seasonally-adjusted, annualized 250,000 units in February, and the supply of new homes rose to 8.9 months in February — a 1.5 month jump from January.
It’s the lowest New Home Sales reading in recorded history, according to the Census Bureau, and the third straight report to signal that home values may be slow to rise in Newport Coast and nationwide this season.
Earlier this week, the National Association of REALTORS® reported Existing Home Sales down 10 percent from February, and the Federal Home Finance Agency said home values slipped 0.3 percent between December … (4 comments)

mortgage economy: 10 U.S. Cities With The Steepest Rent Increases (2010) - 03/23/11 05:47 PM
Home sales data is easing so far in this calendar year. Home resales and new construction have dropped to multi-month lows and, in many cities, home supplies are rising. One housing sector that’s not slowing, however, is rentals.
The rental market is booming.
As reported by the Wall Street Journal, the average apartment vacancy rate is 6.6% nationwide, down from 8.0% last year. In addition, the number of occupied apartments rose by more during Q4 2010 than during any comparable period of the last 10 years.
It’s a major reason why rents are up 2.3%.
Some areas, however, fared worse than others. … (3 comments)

mortgage economy: Existing Home Sales Drop In February! - 03/22/11 07:00 PM
Existing Home Sales fell 10 percent last month, according to a report from the National Association of REALTORS®.
On an annual basis, 4.88 million homes were sold in February — the first time annualized home resales dropped below 5,000,000 since November 2010.
An “existing home” is one that’s not considered new construction.
And it’s not just sales volume that’s down. Home inventory is higher, too. At the current pace of sales, the number of months needed to sell the complete home resale inventory rose by 1.1 months, to 8.6 months nationally.
It’s the biggest one-month jump in supply since July 2010 — … (3 comments)

mortgage economy: Mortgage Rates are volatile! - 03/22/11 06:57 PM
Mortgage markets improved again last week despite an inflation-acknowledging statement from the FOMC and stronger-than-expected jobless data.
Usually, events like this would lead mortgage rates higher, but violence in the Middle East and worsening fear for public safety in Japan took center stage instead, spurring a massive, global flight-to-quality instead.
Rate shoppers in Newport Coast  benefited.
As safe haven buying increased last week, conforming mortgage rates dropped, falling to their lowest levels since January. It marked the 5th straight week through which mortgage rates improved and is the longest such streak since August 2010.
This week, rates may run lower again. You may not want … (2 comments)

mortgage economy: Finally Good News For Sellers...Housing Starts Drop! - 03/18/11 06:28 PM
Single-family housing starts plunged unexpectedly last month. Nationwide, starts fell 12 percent from the month prior; and 29 percent from February of last year.
February’s figures represents the worst 1-month drop in housing starts since May 2010 — the month that followed the expiration of last year’s federal home buyer tax credit — and puts single-family housing starts at a 24-month low.
In addition, single-family Building Permits plunged last month, too, shedding 9 percent from January. A building permit is a local government’s certification and approval to begin home construction.
Housing permits are an excellent forward-indicator for the housing market. This … (1 comments)

mortgage economy: Homebuilders Expect More Sales This Year! - 03/18/11 06:25 PM
Homebuilders are optimistic about the housing market this spring, relative to recent months.
According to the monthly Housing Market Index as published by the National Association of Homebuilders, after 4 straight months of reading 16, March homebuilder confidence ticked 1 point higher to 17.
It’s the highest confidence reading in 10 months.
A value of 50 or better indicates “favorable conditions” for home builders; with more builders viewing sales conditions as “good” than “poor”.
HMI hasn’t read higher than 50 since April 2006.
Regionally, the Housing Market Index showed mixed results. Confidence fell 1 point in the Northeast, held firm in … (3 comments)

mortgage economy: Explanation Of The Federal Reserve Statement (March 15, 2011 Edition) - 03/15/11 06:30 PM
Today, for the second straight meeting, the Federal Open Market Committee voted unanimously to leave the Fed Funds Rate unchanged within its target range of 0.000-0.250 percent.
The vote was 10-0.
In its press release, the FOMC noted that since its January 2011 meeting, the economic recovery “is on firming footing”, and that the labor markets are “improving gradually”. In addition, household spending “continues to expand”. Nonetheless, the Fed said, the economy remains constrained by rising commodity prices and the “depressed” housing sector.
The FOMC statement also re-affirms the group’s plan to keep the Fed Funds Rate near zero percent “for … (5 comments)

mortgage economy: What's up with Mortgage Rates? - 03/14/11 09:03 PM
Mortgage markets improved last week in a week of few economic releases. The one major data point — Retail Sales — showed stronger-than-expected, but markets reacted mildly. The report’s strength was whispered in advance of the actual release; its reading validated Wall Street’s growing faith in the U.S. economy.
Most action last week revolved around the Middle East:
Libya’s internal turmoil continued Bahrain clashes intensified Saudi Arabia’s citizens planned a Day of Rage In response to these events, Wall Street continued its flight-to-quality. Mortgage-backed bonds are now at their best levels since early-February. Mortgage rates have improved 4 straight weeks.
Unfortunately … (3 comments)

mortgage economy: FHA Streamline Refi Changes : No Income, No Job Required! - 03/11/11 03:46 PM
FHA Streamline Refinance guidelines are changing. For the better.
In an effort to improve its loan portfolio, the FHA is loosening approval standards on its popular refinance program, rendering large groups of homeowners suddenly FHA Streamline-eligible.
Now, that may seem counter-intuitive — lowering qualification standards in order to reduce loan defaults — but in the FHA’s case, it makes complete sense. It’s because the FHA doesn’t make loans. It insures them. What’s good for FHA-insured homeowners is good for the FHA, therefore.
All things equal, lower housing payments for its insured homeowners should correlate to fewer FHA loan defaults in California and … (3 comments)

mortgage economy: Loan Fees will increase again April 1st! - 03/11/11 10:40 AM
Beginning April 1, 2011, Fannie Mae is increasing its loan-level pricing adjustments. Conforming mortgage applicants in California should plan for higher loan costs in the months ahead.
If you’ve never heard of loan-level pricing adjustments, you’re not alone; they’re an obscure mortgage pricing metric and, thus, are rarely covered by the media. That doesn’t make them any less relevant, however.
LLPAs are mandatory closing costs assessed by Fannie Mae and Freddie Mac, designed to offset a given loan’s risk of default. LLPAs were first introduced in April 2009.
This April’s amendment is the 6th increase in 2 years. LLPAs can be costly.
In … (3 comments)

mortgage economy: Federal Income Tax Deadline Extended To April 18, 2011! - 03/09/11 12:03 PM
April 15 is the traditional due date for federal income taxes. It’s a deadline so ingrained in the American psyche that the April 15 calendar date is often called, simply, “Tax Day”.
In 2011, however, federal taxes aren’t due April 15. They’re due April 18. It’s because of a combination of holiday, calendars, and tax law.
The change centers on Emancipation Day.
Emancipation Day is a public celebration in the District of Columbia. Named a holiday in 2005, Emancipation Day honors President Abraham Lincoln’s April 16, 1862 signing of the Compensation Emancipation Act.  
Emancipation Day is a non-working day in the … (0 comments)