Mortgage and Finance News

Five signs you’re ready to buy a house

https://www.washingtonpost.com/news/where-we-live/wp/2016/10/18/five-signs-youre-ready-to-buy-your-first-home/

Mortgage rates are up, but so are the number of first time homebuyers

http://www.fool.com/mortgages/2016/10/31/mortgage-rates-tick-up-but-first-time-home-buyers.aspx

Homeowners twice as house rich as five years ago

http://www.cnbc.com/2016/11/01/homeowners-twice-as-house-rich-as-five-years-ago.html

If you need help to purchase or refinance a home, please contact me at Wendy@C21nwr.com

Happy Investing!

Federal Reserve Rates

Have you heard references to the Federal Reserve or "the Fed" in the news? These reports usually pertain to the Fed's raising or lowering of interest rates. The impacts of a rate decision can vary. Here are a few things to remember:

• The Fed sets target rates for bank-to-bank and Fed-to-bank loans.
• The Fed does not directly control fixed mortgage rates. In fact, fixed mortgage rates can change well in advance as the market anticipates any adjustments.
• The prime rate is directly influenced by Fed moves. This rate is often used as the benchmark for interest charged on credit cards, auto loans and Home Equity Lines of Credit (HELOCs).

There's talk that the Fed may raise rates before the end of the year. That may make this a good time to "lock in" a low rate on a purchase if you’re so inclined. Existing owners may want to consider refinancing or combining adjustable rate loans like HELOCs or even consumer debt into one low fixed rate. Consolidating debt is not for everyone, but talk with your local lender to decide what is best for you.

Happy Investing!

Today's blog courtesy of Cheryl Taylor, American Pacific Lending

Federal Funds Rates

Mortgage rates are still low and forecast to remain low for the foreseeable future. Last week mortgage rates improved as traders continued to discount the probability of either a June or July rate hike from the Federal Reserve. Fed Funds are currently showing a 0% probability of a rate hike in today’s FOMC meeting and less than a 16.0% chance of a rate hike in July.

With a rather light week in terms of economic data, this coming week will be focused on the FOMC decision today and news from the UK on Brexit. Today, the focus will not be on whether or not the FOMC raises rates, as it is a forgone conclusion that they will not, but rather on any sense of timing of a future rate hike. As always, expect the FOMC statement to be a bit vague, leaving them flexibility to adjust in the future. 

Brexit will also continue to headline the markets, especially as long as polls show that the June 23 vote is too close to call.

Happy Investing!

Today's blog courtesy of Sarah Riley, Caliber Home Loans

Housing Appreciation

It's a refrain we've been repeating a lot lately, yet it's one we like to hear: Home values are still rising in most places, and mortgage rates are still near historic lows.

So why do we keep talking about it? Low rates can equate to saving money, and rising prices can equal growing wealth. That's music to the ears of homeowners and home buyers far and wide.

How much have values risen? The map below will show you home price growth in the last quarter of 2015. Annual growth is detailed in the chart. Pretty impressive, isn't it?

The appreciation figures shown are derived from the Federal Housing Finance Agency (FHFA) All Transactions Data and compiled by Estate of Mind, Inc. Appreciation will vary from year to year, can decline and, for any individual property, can be more or less than the averages illustrated here. Information is deemed accurate but not warranted.

While the message of rising values and low rates may sound like a broken record, it's one we're happy to repeat. 

Why? There may still be opportunities for owners to save or even free up some cash for other needs. With rates where they are, affordability is still good for prospective borrowers, too. 

Still, we don't know how long the current trends will last. If it's time for you or someone you know to take the first step toward buying or refinancing, we're ready to help.

Just be sure to take action before the music stops.

Today's blog courtesy of Cheryl Taylor, American Pacific Mortgage.

Happy Investing!

World Economy

The global economy has a big impact on finances in the United States. China's over-inflated stock market has taken a beating recently, causing concern among other global markets in this inter-connected world.

Mortgage rates fell last week as China’s equity market continued to spiral downward. U.S. Treasuries briefly dipped below 2.0% on Friday as investors moved to the security of fixed income assets.

With a rather quiet beginning to the week in terms of domestic economic news, all eyes will be focused on the equity markets to see if last week’s volatility and sell off continues. While U.S. markets were closed Monday, China’s equities were up about 0.7% late in their trading day, before selling off in the last 30 minutes and ending the day almost unchanged. If the global sell off in equities and commodities continues, look for pressure on the Fed to revise their thinking about the number of rate hikes this year.

 Here is a link to another great article explaining the link between interest rates, bonds, and mortgage rates:
http://www.cnbc.com/2016/01/07/lock-in-now-stock-sell-off-sinks-mortgage-rates.html

Happy Investing!

Today's blog courtesy of Sarah Riley, Caliber Home Loans

Market Turmoil

What just happened in China? The drop in stock prices in China set off financial tremors around the globe. How will it impact mortgages here?

Mortgage rates are set to open lower in 2016, with stock markets selling off around the world, creating demand for the safe-half of U.S. Treasuries and other fixed income assets. The drop in global stocks overnight was triggered by slowing manufacturing in China, with trading in Chinese markets actually halted after dropping 7% on the first trading day of the year.

So the economic news is good for US mortgage rates - and for US vacationers traveling to Europe, Asia and the Middle East. 

Keep your eyes on the macro- economy in the days and weeks to come!

Happy New Year!

Happy Investing!

Commercial Real Estate Investment

Marcus and Millichap Research Services has released a special report on market volatility and its impact on the future of commercial real estate investment:

■	Recent volatility reflects international uncertainty, not U.S. economic performance.
■	A side benefit of the volatility is that the Federal Reserve may delay rate increases, potentially supporting low mortgage rates awhile longer.
■	Broad-based economic momentum and commercial real estate performance are both exceptionally strong right now, and capital entering the commercial real estate market has risen accordingly.

See the full article here.


Happy Investing!

Market Commentary

08.07.2015

Mortgages declined this week on comments from Atlanta Fed Chairman Dennis Lockhart, although weak earnings reports, and trades’ confidence that the Fed rate hikes will be slow, mitigated some of the sell-off in mortgages.

The bond market got a bit of a wake-up call on Tuesday when Atlanta Fed Chairman Dennis Lockhart said regarding Fed rate hikes that there was a “high bar right now to not act, speaking for myself.” Although he clearly qualified that he was just speaking of his viewpoint, not other members of the FOMC, the bond and mortgage markets quickly turned downward raising yields. Chairman Lockhart is widely regarded as a centrist so his comments were taken by investors and traders as a signal that there is a significant chance of the Fed tightening in September. As the week progressed there were several economic releases, but none of them were particularly out of line with expectations. Thursday’s weak earnings reports for companies led to downturn in the equities markets with bond and mortgages benefiting as investors moved to a bit more security. Currently based on the effective fed funds rate, traders are pricing a 56 percent probability of a September rate hike.

Economic Indicators that beat expectations included: Personal Income at 0.4% vs estimates of 0.3%, Personal Spending at 0.2% vs estimates of 0.2%, Markit US manufacturing PMI at 53.8 vs estimates of 53.8, Factory Orders at 1.8% vs estimates of 1.8%, Initial Jobless Claims at 270K vs estimates of 272K, Manufacturing Payrolls at 15K vs estimates of 5K, Unemployment Rate at 5.3% vs estimates of 5.3%, Average Hourly Earnings (MOM) at 3.4% vs estimates of 3.2%, and Underemployment Rate at 10.4% vs estimates of 10.5%. Economic Indicators that missed expectations included: Construction Spending at 0.1% vs estimates of 0.6%, ISM Price Paid at 44.0 vs estimates of 49.0, ADP Employment Change at 185K vs estimates of 215K, Trade Balance at -$43.84B vs estimates of -$44.00B, Continuing Claims at 2255 vs estimates of 2249, Nonfarm Payrolls at 215K vs estimates of 225K, and Average Hourly Earnings (YOY) at 2.1% vs estimates of 2.3%.

Happy Investing!

Thanks to Sarah Riley, Caliber Home Loans for this blog post.

New Home Sales

New Home Sales were up in February. Will sales heat up even further this spring and summer? 

What is the New Home Sales report? The New Home Sales report shows the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends, and the volume of sales indicates housing demand. Also, the monthly supply of homes serves as an input into the level of housing pressure. 

What's happened recently? New Home Sales hit a seven-year high in February, rising 8 percent from January to an annual rate of 539,000 units, while January's sales were revised higher to 500,000. New Home Sales now stand at their best level since February 2008 and are up nearly 25 percent from the 432,000 recorded in February 2014. 

What's the bottom line? While pricing and sales for new homes were up, the Existing Home Sales report was not as promising, due in part to winter weather and low inventory. It remains to be seen if spring and summer will be strong seasons for the housing sector, but these early numbers for new homes sound another promising note in the recovery. 

Nevertheless, home prices are continuing to show signs of growth, as the S&P/Case-Shiller Home Price Index rose by 4.6 percent from January 2014 to January 2015. This is the biggest gain since September and up from the 4.4 percent annual rate recorded in December. The lofty price gains seen in 2013 and early 2014 may have cooled, but home price gains continue to be steady at what is considered normal levels. 

The bottom line is home loan rates continue to remain very attractive, making now a great time to consider a home purchase.

Happy Investing!


Today's blog courtesy of Steve Bighaus, Security National Mortgage Company

Mortgage Rate Lows

The average for 30-year home loans dipped below 4% for three weeks last month, setting off a small wave of mortgage refinancing. According to the Mortgage Bankers Association, requests to refinance homes made up more than half of all applications last week.

Interest rates are still near 2014 record lows. It is a great time to think about buying or refinancing a home.

Happy Investing!