My Inside Mortgage Report 12-04-2006

Mortgage and Lending with John Tuggle, Senior Mortgage Loan Originator, Envoy Mortgage, Ltd. NMLS# 211187
rates hitting 2006 lows!!!   A Georgia and Alabama Residential Mortgage Licensee JOHN TUGGLE, Mortgage Specialist SunChase Mortgage Corporation Office 706 660-1550 ext 38
Fax 706 660-1590
Cell 706 315-2365



 ...Friday, 12-01-2006 4:30pm...

Interest rate markets were treated to another surprise this morning with the weak national manufacturing report from the ISM....

...(see MARKETS and story below)...


fridays rate closings

5.625% 30 YEAR FIXED 

5.500% 10-15 YEAR FIXED


5.875% 10-15 YEAR JUMBO FIXED

5.750% VA 30 YEAR FIXED

Call John Tuggle and ask about rate buy-down opportunities!  All rates are based on 30 day lock unless otherwise noted.  Call for 15day, 60day and long term lock scenarios. All rates are subject to pricing conditions, conditions unique to the purchase, conditions unique to the borrowers credit rating and conditions unique to the lender and conditions unique to the property and type of property.  Rates are subject to market change at any time unless locked. Sorry, no manufactured housing for this offering. Rates do not reflect Annual Percentage Rate (APR). APR will be quoted based on the cost of making a loan.  Cost of making loans vary.  These are conforming loans only, prior to special adjustments, if any. Please call JOHN TUGGLE for specific details on a particular loan.   EMAIL DOES NOT LOCK RATES.

Diary of a real estate rookie.....The Walk Away.......SEE ARTICLE BELOW

Realtors, Please feel free to link to and use our calculators here: SUNCHASE CALCULATORS Home A GA and AL Residential Mortgage Licensee

Mortgage rates fall, economy slows

Housing bubble talk on radar again ...


.............SEE ARTICLE BELOW

  • 580 Full Doc 80/20's (even with no tradelines and recent BK)
  • 640 Stated 80/20's Self Employed and W2 (even with no tradelines and recent BK)
  • Allow 6% seller paid closing costs on most 80/20's (3% on W2 Stated)
  • Great Collection Policy
  • 1 Day out of BK to 100% with NO RE-ESTABLISHED CREDIT!
  • 4506's usually not required
  • Gift Money is OK
  • NO Tradelines required with 2 or more scores over 500!
  • Interest Only to 560 (Stated W2 with a 620)
  • Great Appraisal Review
  • Consumer Lates don't matter
Common sense underwriting ... CALL JOHN TUGGLE WITH THE SCENARIO

commercial opportunities
 Please call JOHN TUGGLE with all of your scenarios.  Terms to include 15 year, 20 year, 25 year and 30 year.  All terms are not available for all tiers.  Call JOHN TUGGLE for details.  All loans are subject to conditions unique to the borrower, the lender and the transaction.  The information above is minimal and is for marketing purposes.  All actual program requirements are available from JOHN TUGGLE at SunChase Mortgage Corporation.  All programs are subject to change without notice.

By Alison Rogers
Inman News

The walkaway

Diary of a real estate rookie

Friday, December 01, 2006

By Alison Rogers
Inman News

Alison RogersAlison Rogers

So does no one ever simply concede a point?

I have a rental client coming into town tomorrow. (Actually, by the time this goes up on the Web and you read this, I'll be showing her properties.) She's a relo from the Midwest, referred to me by her husband's business partner and his wife, whom I just placed. She knows, let's see, no one in New York.

So I feel like she's a pretty captive client, but I still have to find her the world's greatest apartment or she won't stay captured. And we're in a little bit of a lull right now, it being December. I think some people who might be listing their units right about now are thinking that no one really wants to move over the holidays, so they'll just wait until January. Since inventory is low, it won't take that many appointments to make the circuit.

More stories by Alison Rogers

Gift season begins: Wrestling with what to give clients

The late lunch

The turndown

Your brokerage is an extreme sport

The three-hour closing

Making the $10 million house a home


But that does mean I need every appointment that I can get. And she had one unit that she especially seemed to like from the Web, so I called about it.

And you know what the other broker said? Well, you all know because you're not rookies. The other broker said, "Oh, I've had contact with her, she's my client."

Well I was not expecting this since I figured she knew no one in New York, and certainly hadn't 'fessed up about broker-shopping, but he did know her last name unprompted, so I figured he was right.

So I said, OK, hey, I'm not going to fight you over the co-broke. Get her into that apartment and I'll start a paper trail that you can take to our sponsoring brokers if you need to, so you know I'm not going to fight you.

And I did. I sent him an e-mail that said "Hey, thanks for agreeing to show XXX to us, I acknowledge that you've had prior and substantive contact with my client" and I forwarded it to my sponsoring broker.

And I sent her an e-mail that said "Hey, look, I can walk you to this apartment, but I can't tell you anything about it plus or minus because it's his deal and I can't mess it up."

She apologized all over herself, she had been drawn in by the listing and had called him, he was going to be out-of-town while she was apartment shopping and was going to refer her, but never did, so she assumed she was free to become my client.

I told her she was my client, through and through, but that if this listing was the one for her it just meant the original broker got paid, and that's just us playing nicely by our rules.

She gets it, and she trusts me, so it's up in the air which apartment she'll rent as you're reading this, and whether I come home with $6,000 or with zero. But you know what? I don't care. She's got money, and she'll buy someday. That will be a $50,000 payday. And you know who will get it? The patient little girl who plays by the rules.


 Alison Rogers


Interest rate markets were treated to another surprise this morning with the weak national manufacturing report from the ISM.

As was the case with the Chicago PM manufacturing report on the mid-west yesterday, the manufacturing sector is continuing to decline. Don't attempt to spin it as the Wall Street crowd is wont to do with bad data; the economy is slowing. Housing, autos, and now the difficult to ignore manufacturing sector (which by the way has been sliding for months) has gone into slight contraction based on the recent data. The Fed is data dependent but don't expect the Fed to step up and lower short term rates anytime soon. They don't have to as long as the long end of the curve continues to see declining interest rates; that will help housing, the auto sector and consumer confidence so why should the Fed have to react as long as the trend in rates is lower as it is now.


The rate markets were fueled this morning taking the 10 yr note to a new 10 month low; mortgage market as always, follows the Treasury market. don't buy into the idea mortgage markets are a separate animal----all interest rates are driven by US treasury markets.


On the week the 2 yr note fell 24 basis points, the 5 yr note 17 basis points, 10 yr note down 12 basis points and the 30 yr bond fell 9 basis points. Mortgage rates for 30 yr fixed down 11 basis points. A very good week pushed by continual weaker economic releases and the collapsing US dollar.


Next week the employment report for Nov looms heavy on Friday; current estimates as always are all over the landscape ranging from +40K to +200K based on a recent survey by Reuters. Consensus, if there is such a thing as it relates to the wild jobs numbers, is at 125K new lobs. Any reading under 90K with no upward revisions from previous months will add the the strength in the bond market. In the meantime expect some consolidation early next week as the roaring bullishness that exists today fades a little as the employment data nears.


No economic releases scheduled for Monday; some Fed speak but nothing new is expected.


Chicago Fed Pres Moskow was speaking this afternoon; said core inflation is moderating---that coming from one of the most hawkish Fed officials we have been hearing recently.


The Federal Reserve reported that foreign holdings of treasury and agency debt rose by $1.706B in the past week with treasuries accounting for a decrease of $2.096B and agencies rising $3.802B. Holdings as of yesterday totaled $1.707 trillion with $1.146 trillion of treasuries & $560.712B of agencies. (Bloomberg).


Crude oil started lower this morning but ended $0.30 higher at $63.43; gold was lower at $650.60 down $2.30 for the Feb contract. The dollar continues it's declines against the euro and yen.


Continue to hold rate locks over the weekend; all locks should have market gains with the week we have had. Mortgage prices on the week for 30s up 18/32; 15s +15/32.


have a nice weekend!



PRICES @ 4:00 PM

10 yr note

101.16 +7/32 4.43% -3 BP * Dec 10 yr note contract 109.13 +9/32 (109.18 - 108.31)

5 yr note

100.15 4.39% -5 BP

2 yr note

100.06 +6/32 4.51% -10 BP

30 yr bond

99.06 +7/32 4.55% -1 BP * Dec 30 yr bond contract 114.20 +8/32

Libor Rates

1 MO 5.35%; 3 MO 5.35%; 6 MO 5.33%; 1 YR 5.21%

30 yr FRM (FNMA) 5.5 Jan

99.23 +7/32 (+2/32 frm 10:00)

15 yr FRM (FNMA) 5.5 Jan

100.20 +5/32 (+1/32 frm 10:00)


115.41 -0.21 yen


$1.3331 +$0.0084 (dollar weaker)

Gold Feb

$650.60 -$2.30

Crude Oil Jan

$63.43 +$0.30

Goldman-Sachs Commodity Index

462.41 -1.08


12,194.13 -27.80


2413.21 -18.56

S&P 500

1396.72 -3.91

Friday, 12/1/06 4:30pm



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Mortgage rates fall, economy slows

Housing bubble talk on radar again

Friday, December 01, 2006

By Lou Barnes
Inman News

Mortgage rates are falling this morning, approaching the lows of the year; even the lowest-fee 30-year loans are down to 6 percent right now. The 10-year T-note's decisive break below 4.53 percent -- the floor since September -- to 4.41 percent this morning could easily pull mortgages into the high fives.

The drop in rates began in an odd way over Thanksgiving, simultaneous with a decline in the value of the dollar versus the euro. Peculiar in three ways: American markets were holiday-quiet; there were no new economic data; and dollar declines often result in foreign sales of bonds and higher interest rates here. Then the pattern came clear: the currency market is betting on a rather harder than softer landing for the American economy versus European strength, Fed easing ahead, and those lower rates here making the dollar less attractive versus the euro.

This week's economic data fit the classic slowdown sequence: the economy is slowing, slowing broadly now, but the Fed still has an inflation problem on its hands and does not dare to cut rates with the unemployment rate under 4.5 percent -- nor under 5 percent, for that matter. Federal Reserve Chairman Ben Bernanke appears to have hit the timing and extent of rate increases on the nose (despite protestations of too soon, too easy among old-timers here and elsewhere), but the harder part is how long to stay inflation-tight, risking the economy. The longer the Fed has to stay put in fear of inflation, the more deeply the economy can slow in the meantime, which is your average bond trader's dream for Christmas.

More stories by Lou Barnes

Resetting adjustable loans won't hurt housing

Mortgage credit to impact housing next year

Economic landing looking softer than expected

Last week's credit market worries all reversed now

Fed pause likely next week

Fed ponders risks of deep economic slowdown


The biggest push to lower rates came this morning with the drop in the purchasing managers' index into contraction territory at 49.5 (a reading below 50 reflects contraction, 45 is the recession level). The internal, future-looking aspects were even weaker, except for a rise in the prices-paid component, which confirmed the Fed's inflation box. Other data were similarly weak: orders for durable goods crashed in October, and home sales continued their gentle decline, unsold inventory rising to the seven-month-supply mark.

The third-quarter OFHEO home-price numbers describe price appreciation going flat in most markets, and very modest declines (less than 1 percent annualized) in "bubble zones." Fifteen of 25 California cities went negative in the third quarter. However, real pain is confined to regions with economic distress, Michigan in the unfortunate lead with the first statewide price decline in any state in a half-dozen years.

I continue to believe that a worsening economy might take housing from flat to trouble, but housing will not deteriorate on its own into a blown-"bubble" unless mortgage defaults cause a withdrawal of credit. Delinquencies on subprime loans have roughly doubled in the last year, and that deterioration is the thing to study, not all the "bubble" screeching from nouveau housing experts (otherwise fine economists Robert Schiller and Gary Schilling at the top of the shill list).

The key to a deeper decline in rates: next Friday's report of November payrolls. In any economic slowdown the job market is the last element to crack, and this week brought signs of both its 2006 strength and possible cracking. The Fed's "beige book" mentioned outsize growth in wages in very tight parts of the skilled-labor workforce just before news of an over-Thanksgiving surge in new applicants for unemployment insurance.

Financial markets have not reacted to the slow deterioration of Iraq into civil war, and understandably. Drivers will slow to stare at a car accident, but nobody wants to watch this. Got to pay attention, now. Events are moving faster than policy can, and if/when the regional lid comes off, market consequences will follow, oil first, rates and economy in train.

Lou Barnes is a mortgage broker and nationally syndicated columnist based in Boulder, Colo. He can be reached at


John Tuggle,
Mortgage Specialist
SunChase Mortgage Corporation
5353 Veterans Parkway, Suite C
Columbus, Georgia  31904
Office 706 660-1550 ext 38
Fax 706 660-1590
Cell 706 315-2365
  A Georgia and Alabama Residential Mortgage Licensee

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