The Industry Report

Weekly Mortgage Update - May 12, 2008

Fed Funds Rate:
The Fed Funds Rate currently sits at a comfortable 2% since the last Fed Funds Rate cut on April 30, 2008. If you're wondering how this affects you...well, it improves your pricing on a Home Equity Line of Credit to Prime minus .45.

READ: Fixed Seconds and Home Equity Lines of Credit for clarification and guidelines.

The next scheduled Federal Open Market Committee (FOMC) meeting is June 25th at which point we expect the Fed to keep rates steady in light of rising inflationary concerns.

The Week Ahead:
Coming up this week we have: retail sales, inflation, housing and industrial & manufacturing reports. For a clearer look at the economic calender, click here.

Coming up...
Check back for our Daily Mortgage Rate Updates. But if you're wondering what pricing is like now, contact me here and let's go over your scenario.

 

Weekly Mortgage Update - April 28, 2008

We ended this previous week with rising interest rates in the midst of mixed economic reports, earnings reports and continuously rising inflationary concerns.

Note: I'll have a daily mortgage update for you available shortly.

The Fed Funds Rate:

The Fed Funds Rate currently sits at 2.25%. And though we'd like to see another 25 basis point rate cut at the next FOMC meeting this Wednesday, April 30th, another Fed rate cut is not expected. If however we do experience a rate cut, it will be the Fed's final rate cut as they'll have to allow time for previous rate cuts to work their way through the economy.

[To learn more about the Fed and how monetary policy works, play this simulation game offered by the Federal Reserve Bank of San Francisco.]

The Week Ahead:

The week ahead is going to be a particularly busy week on the Economic Calendar . In particular we have:

Tuesday: Consumer Confidence

Wednesday: GDP; Employment Report; FOMC Announcement

Thursday: Jobless Claims; Manufacturing

To quote a famous movie we all know in looking at this data, Alice from "Alice in Wonderland" would say:

"I don't believe there's an atom of meaning in it."

And oh but there is!

The economic data scheduled for release this week can and will directly affect investor sentiment and will subsequently affect interest rates. So check back here for an upcoming Daily Mortgage Update and news of the FOMC Meeting on Wednesday.

For now, if you're considering a 1st or 2nd mortgage for either a purchase or refinance, get those applications in and lock-in your rates (remember, you can't lock-in your rate without formal loan approval). Banks are moving on tightening lending starts moving forward.

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To Apply Online Click Here. You can submit 1.) a short application, or 2.) a full application.
I will receive your request as soon as you click "Submit" at which point I will email you and/or call you to verify receipt and your loan pre-approval will be underway.

You can call me directly at (323) 810-2175 to confirm receipt of your information. If I don't answer, I will return your call within 15 to 20 minutes.

No Big Changes to Mortgage Rates This Week

Freddie Mac released their Primary Mortgage Market Survey today...

"No Big Changes In Mortgage Rates This Week"

From the survey:

"'Once again, mortgage rates held relatively steady this week amid release of subdued economic data," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, pending existing home sales hit the lowest value since its introduction in January 2001, presaging additional weakness in single-family home sales over the upcoming months. Further, the economy lost 80,000 jobs in March, more than the market had anticipated, and the prior two months were revised downward as well.

Meanwhile, house sales prices have fallen in most metropolitan areas, although there have been price gains in some areas. Just over half of the 150 large cities across the nation experienced negative annual house price growth in 2007, according the National Association of Realtors. The largest yearly drop of 18.8 percent occurred in Lansing, MI, while Cumberland, MD, experienced the strongest growth at 19.0 percent.'"

Daily Mortgage Rate Update: April 7, 2008

We talk about the economics of interest rates and how they work because it's important to understand how certain economic indicators are going to impact your mortgage rate! Knowing when to Lock or Float your mortgage rate can often make the difference between $2,000+ dollars in savings.

Bonds closed 41bp up (which meant improved pricing on our rate sheets) on Friday and ended on a sideways trading pattern. So will rates hold for the week?

We have somewhat of a light week on the economic calendar. Probably the most important item this week is Tuesday's FOMC Minutes; there was two dissenting votes during last week's Fed decisions. We'll keep on eye on whether the FOMC Minutes cause any movement in the markets.

Current mortgage rates:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.625% (5.752% APR)

15-Year Fixed Rate Mortgage
5.25% (5.374% APR)

*Disclaimer: World Wide Credit Corporation is an Equal Opportunity Lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Check back daily for pricing changes!

Lock/Float Mortgage Rate Recommendation: Float your mortgage rate, but float cautiously.

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Daily Mortgage Rate Update: April 2, 2008

What are you hearing about the U.S. economy these days?

Buzz words like: depression, credit crisis, mortgage squeeze, price deflation, stagflation...and straight from the horses mouth (Ben Bernanke), recession!

Our Fed Chairman Ben Bernanke testified before a congressional panel today and his hearing is scheduled to continue through to tomorrow. Here's what he had to say, from Yahoo News:

"'A recession is possible...Our estimates are that we're slightly growing at the moment, but we think that there's a chance that for the first half as a whole there might be a slight contraction.'"

You can read the article from MarketWatch for more.

Monetary Policy dictates that in order to fight a recession, you need to increase the growth of money and credit into the economy. This reduces interest interest rates and spurs growth.

Here's where we stand with mortgage rates now:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.75% (5.878% APR)

Jumbo Loan Amounts = Loan Amounts Between $417,000 to $650,000
($600,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
8.25% (8.367% APR)

*Disclaimer: World Wide Credit Corporation is an Equal Opportunity Lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Stay tuned for inter-day pricing changes tomorrow and in the week ahead...I'll keep you posted!

Lock/Float Mortgage Rate Recommendation: Float your mortgage rate, but float cautiously.

Falling interest rates should combat our impending recession. If you see a rate you're comfortable with, LOCK-IT and get-er funded!

Stay tuned for mortgage rates in the upcoming days.

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Daily Mortgage Rate Update: February 25, 2008

Week In Review:
Long-Term mortgage rates are up on continuing inflation concerns. Though rates are up at nearly the levels of the beginning of the year, Adjustable Rate Mortgages are at the low- to mid- 5%.

The Week Ahead:
Last week saw a very displeasing sharp increase in mortgage rates. Coming up this week on the Economic Calendar we have further data that could prove volatile for interest rates. As always, we'll keep an eye out on the market for you and tell you the minute rates rally back down.

Existing Home Sales on Monday

Producer Price Index; Consumer Confidence on Tuesday

Durable Goods Orders; New Home Sales; Crude Inventories on Wednesday

GDP; GDP Chain Deflator; Initial Jobless Claims on Thursday

Personal Consumption Expenditures Index (PCE); Personal Income; Chicago PMI; Consumer Sentiment on Friday

Currently, here's where we stand with mortgage rates:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
6.125% (6.253% APR)

Jumbo Loan Amounts = Loan Amounts Between $417,000 to $650,000
($600,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
7.25% (7.362% APR)

*Disclaimer: World Wide Credit Corporation is an Equal Opportunity Lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Lock/Float Mortgage Rate Recommendation: Lock-In your mortgage rate at application.

Daily Mortgage Rate Update: February 19, 2008

Week In Review:

Last week saw a rather significant increase in mortgage rates as a result of (i) a drop in initial jobless claims, (ii) a smaller trade deficit, and (iii) Warren Buffett's statement to bail out Bond Insurers (this news in particular led to Bond Market deterioration and a small Stock Market rally); lower Bond Prices meant higher interest rates!

The Week Ahead:

The Bond Market and interest rates caught a breather yesterday as the markets were closed to honor the President's Day Holiday.

But coming up on the Economic Calendar for the week: Housing and Inflation Reports! Which means increased market volatility so we'll keep an eye on mortgage rates moving forward. In particular we have:

Consumer Price Index (CPI); Housing Starts; and FOMC Minutes on Wednesday

Initial Jobless Claims; LEI - Index of Leading Economic Indicators; and the Philadelphia Fed Index on Thursday

Currently, here's were we stand with mortgage rates:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.875%    (6.029% APR)

15-Year Fixed Rate Mortgage
5.375%    (5.524% APR)

5/1 ARM
5.125%    (5.239% APR)

Jumbo Loan Amounts = Loan Amounts from $417,000 to $650,000
($600,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
7.375%    (7.504% APR) on a 15-Day Lock
7.75%    (7.882% APR) on a 30-Day Lock

15-Year Fixed Rate Mortgage
7.625%    (7.756% APR)

*Disclaimer: World Wide Credit Corporation is an Equal Opportunity Lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Lock/Float Mortgage Rate Recommendation: Lock-In your mortgage rate at application.

With key inflationary data scheduled for release this week, expect continued Bond Market volatility which means continued mortgage interest rate volatility. Don't be surprised if lenders reprice through-out the trading day so contact me here to verify pricing or call me directly at (323) 810-2175, and check back daily for more updates.

Weekly Mortgage Update - January 14, 2007

Let's Recap:
The 30-Year Fixed Rate Mortgage averaged 5.85%, down from 6.07% just last week.

The 15-Year Fixed Rate Mortgage averaged 5.43%, down from 5.68% just last week.

The 1-Year Adjustable Rate Mortgage averaged 5.37%, down from 5.47% just last week.

Rates rallied downward as a result of:

• Weak employment growth (the economy only added 18,000 jobs in December making this figure the smallest gain since August of 2003),
• A rising unemployment rate (the unemployment rate has hit a two-year high of 5%); and
• A softening services sector (the month of December showed the slowest expansion that we've seen in nine months)
  

The Fed Funds Rate:
The Fed Fund's Rate is currently 4.25%.

Fed Chairman Ben Bernanke was quoted last week for saying that "substantive" rate cuts will be necessary to boost the American economy! I think it's safe to say that we expect the Fed to lower the Fed's Fund Rate at the next Federal Open Market Committee meeting on January 30th.

*Update: Emergency Fed Funds Rate Cut of .75% issued on January 22, 2008

The Week Ahead:
Click here for a look at the Economic Calendar for the weak ahead.

We have Retail Sales on Tuesday, Industrial Production on Wednesday, and Inflationary Reports and other data that will move the Bond Market so check back in here, at The Industry Report, to see how rates are doing!

Weekly Mortgage Update - December 10, 2007

Let's Recap: 
The 30 Year Fixed Mortgage averaged 5.96%, down from 6.10% just last week.

The 15 Year Fixed Mortgage averaged 5.65%, down from 5.73% just last week.

The 1 Year Adjustable Rate Mortgage averaged 5.46%, up from 5.43% just last week.

The Week Ahead:
The biggest news on the Economic Calendar this week is the FOMC meeting on Tuesday. We've already seen rates hedge downward in anticipation of a rate cut which is expected to be between .25 - .50%. If you can secure a rate below 6%, I'd lock at application right away. If a rate cut comes in lower than expected or if there is no rate cut at all, you can count on a surge in interest rates to prior week's levels of 6.25% or more!

Click here for a look at the Economic Calendar.

And for up-to-date rate updates, don't forget to subscribe here.

Weekly Mortgage Update - November 30, 2007

Let's Recap:
The 30 Year Fixed Rate Mortgage averaged 6.1%, down from 6.2% last week.

The 15 Year Fixed Rate Mortgage averaged 5.73%, down from 5.83% last week.

The 1 Year Adjustable Rate Mortgage averaged 5.43%, up from 5.42% just last week.

If you read this week's Daily Mortgage Rate Update, you know that rates have hedged lower in anticipation of December 11th's Fed Funds Rate Cut. You can read Fed Chairman Bernanke's commentary on the state of the economy here.

The Fed Funds Rate:
The next schedule FOMC Meeting is on December 11, 2007 at which point we're anticipating another Fed Funds Rate Cut.

More on The Weak Ahead coming to you on Monday!