Housing Bill Helps Mortgage Market

Real Estate Agent with Exit Realty DTC 003887

I get a monthly newsletter from Apollo Financial, located in Greenwood Village, Colorado.  I particularly found this newsletter to be very interesting and informative.  A great one to pass on to your clients so that they maybe more informed and educated.  Thanks Tim Ray for the valuable info, I am sure many find the information helpful.  Yea oil prices dropping, that some good news!


Mortgage Time
Mortgage Market News for the week ending July 25, 2008

Compliments of
Tim Ray
Apollo Financial

(303) 733-5950 x 224


5347 S. Valentia Way
Suite 300
Greenwood Village, CO 80111

Events This Week:

Sentiment Higher

Jobless Claims Rose

Housing Mixed

Durable Orders Up

Events Next Week:

Tues 7/29

Thurs 7/31
Chicago PMI

Fri 8/1
ISM Manufacturing


Housing Bill Helps Mortgage Market

A comprehensive Housing Bill was agreed upon by the House, the Senate, and the President this week, and it was successful in increasing confidence in the guarantees provided by Fannie Mae and Freddie Mac. As a result, mortgage rates ended the week modestly lower. Formal passage of the Housing Bill is considered a sure thing. One primary feature is that it authorizes the Treasury to provide credit to and buy shares in Fannie and Freddie, if needed. According to industry trade publications, Fannie and Freddie, along with the FHA, accounted for 90% of US home mortgages originated in the second quarter of 2008, up from just 49% one year earlier. Keeping the two firms healthy is vital for the US housing market.

Besides providing support for Fannie and Freddie, the Housing Bill will also help the housing market in other ways. One program will allow the FHA to insure up to $300 billion in new loans targeted at troubled homeowners. Another program adds tax credits for first-time homebuyers, which in essence will be a 15-year interest free loan for up to $7,500. In addition, the bill provides funds for more low income housing and grants to be made for local community redevelopment. A wide range of smaller programs are included as well.

The economic news in the housing sector was mixed. June Existing Home Sales fell slightly, and inventory levels of unsold homes increased. In contrast, New Home Sales were significantly higher than expected in June, and the May figures were revised higher as well. High inventory levels will probably need to come down to achieve a meaningful recovery in the housing market, but the chief economist of the National Association of Realtors (NAR) believes that the Housing Bill will play a major role in helping the housing market to rebound. In particular, he expects the first-time homebuyer tax credit to boost future home sales.



Also Notable:

  • The Fed's Beige Book reported consumer spending as "mixed, weak or slowing" in nearly all districts
  • In June, Freddie Mac's total mortgage portfolio grew 9% from one year ago
  • Oil prices dropped below $124 per barrel, down from a record high of $147 per barrel earlier this month
  • The Fed's Plosser stated that inflation is "already too high" and that rate hikes probably will be needed "sooner rather than later"


Average 30 yr fixed rate:

Last week:



This week:



Stocks (weekly):









Week Ahead

Friday will be the big day next week. The important Employment report will come out that day. As usual, this data on the number of new jobs created, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, since the health of the labor market is perhaps the single biggest factor in the performance of the economy. Early estimates are for a loss of 70K jobs in July.

The first reading of second quarter 2008 Gross Domestic Product (GDP) will be released on Thursday. GDP is the broadest measure of economic activity. The two national manufacturing indexes, the ISM and the Chicago PMI, will come out on Thursday and Friday. Consumer Confidence and Construction Spending will round out the schedule.


To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com
To learn more about the newsletter, please call 800-627-1077
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.


This email was sent from Tim Ray at Apollo Financial. To unsubscribe, email timray@apollomortgages.com.



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Thank you very much for reading my blog and I look forward to working with you.

Tatyana Sturm, EXIT Realty DTC, Realtor GRI CDPE, Denver Colorado REALTOR


Aurora CO Relocation specialist

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Proud Greenfield, Aurora, Colorado Resident and Realtor




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