Housing Data Exceeds Expectations
Strong manufacturing and housing sector data contributed to a rally in the stock market this week. This would ordinarily push mortgage rates higher, but the strong economic news was offset by tame PPI inflation data and a significant increase in Fed purchases of mortgage-backed securities (MBS), leading to a small decline in mortgage rates during the week.
The national housing market data released this week was positive. July Existing Home Sales rose 7% from June, to the highest level since August 2007, and were 5% higher than one year ago. This marked the fourth straight monthly increase. Taking advantage of the $8,000 tax credit, first-time homebuyers accounted for 30% of all transactions. Inventories of unsold homes held steady from June at a 9.4-month supply.
In addition, the National Association of Home Builders (NAHB) Housing Market index rose to the highest level since June 2008, indicating an improvement in home builder confidence. The NAHB also reported that housing affordability during the second quarter of 2009 remained near record levels. The improvement in home builder confidence was reflected in a fifth consecutive month of increased single-family housing starts in July. High affordability, low interest rates, and the first-time homebuyer tax credit combined to improve sentiment and stimulate housing market activity
The last 2 days due to this have made the market very volatile. We have been dealing with multiple mid day rate changes. I feel that when the economy does turn around we will see rates higher. No more 4s. They will be gone. If you are on the fence I would get off soon. Please call me if you need a rate quote. I want to help you get the best rate possible now. 888-921-0030 x111 or email me at andrea@capmortcorp.com
Friday, August 21, 2009
Wednesday, July 29, 2009
Tuesday, July 21, 2009
FHA is looking good today.
I think it is very neet that some of our investors have been giving insentives for better credit scores and FHA loans.
It has made for more attractive rates today.
The market has been quite today. That is a blessing.
Looking forward to an great week.
It has made for more attractive rates today.
The market has been quite today. That is a blessing.
Looking forward to an great week.
Wednesday, July 15, 2009
Please visit my friends website. We went to school together..
http://www.pcstobragg.com/
This is a wonderful friend of mine from Kentucky. We went to school together and both married Military men and now we are both in NC and loving it here.
We found out from her older sister we were not far from each other. Thanks Karina.
She is a very sucessful realtor in Southern Pines. Please give her a call. I know she would take very good care of you.
This is a wonderful friend of mine from Kentucky. We went to school together and both married Military men and now we are both in NC and loving it here.
We found out from her older sister we were not far from each other. Thanks Karina.
She is a very sucessful realtor in Southern Pines. Please give her a call. I know she would take very good care of you.
Rates are up slightly
Today has been a very volatile day in the mortgage market. It all started late Monday.
Man the rates were the lowest I had seen them in a few weeks and then once I got quite a few clients locked before the rates jumped. It has continued being very volatile on Tuesday and Wednesday as well.
I would not wait much longer if you need to refinance. Take advantage of these still historically low rates.
Here is a quote from the MBS quoteline.
MBS prices are down -22/32 (FNMA 30-yr 4.5 at 99.06), below the 9:45 et pricing level of -9/32, and at the low for the day. Unfavorable repricing took place. A rally in the stock market pushed MBS markets lower. The FOMC minutes from the June 24 Fed meeting also were negative for MBS markets. The minutes revealed an upward revision to the Fed's forecast for economic growth and inflation in 2009 and 2010. Today's economic data had little impact. Both the CPI inflation data and the Industrial Production report came in close to expectations. The Dow rose more than 250 points. Tomorrow, Jobless Claims and Philly Fed will be released.
Man the rates were the lowest I had seen them in a few weeks and then once I got quite a few clients locked before the rates jumped. It has continued being very volatile on Tuesday and Wednesday as well.
I would not wait much longer if you need to refinance. Take advantage of these still historically low rates.
Here is a quote from the MBS quoteline.
MBS prices are down -22/32 (FNMA 30-yr 4.5 at 99.06), below the 9:45 et pricing level of -9/32, and at the low for the day. Unfavorable repricing took place. A rally in the stock market pushed MBS markets lower. The FOMC minutes from the June 24 Fed meeting also were negative for MBS markets. The minutes revealed an upward revision to the Fed's forecast for economic growth and inflation in 2009 and 2010. Today's economic data had little impact. Both the CPI inflation data and the Industrial Production report came in close to expectations. The Dow rose more than 250 points. Tomorrow, Jobless Claims and Philly Fed will be released.
Thursday, July 9, 2009
Volatile day.
MBS prices are down -11/32 (FNMA 30-yr 4.5 at 100.20), below the 9:45 et pricing level of -5/32. It was a very volatile session, and unfavorable repricing took place. The Jobless Claims data had little impact. Demand was about average for the 30-yr Treasury auction, and foreign investors purchased 50% of the total. After the strong demand seen in the 3-yr and 10-yr auctions earlier this week, investors had hoped for better results. Adding to the recent debate, Warren Buffett suggested that a second stimulus package "may well be called for". The Dow is up 5 points. Tomorrow, the Trade Balance, Import Prices, and Consumer Sentiment will be released.
The Fed purchased $17.1 billion in agency MBS during the weekly period ending July 8, from $23.1 billion the prior week. Freddie Mac reported that average mortgage rates fell in the week through July 9, with 30-yrs hitting 5.20%, from 5.32% the prior week.
In laymans terms this sounds to me like the Fed s purchase of mortgage backed securities dropped. If this keeps up and they dont buy as many then they may be comfortable with the rates where they are and will not try to buy more to make the rates fall. They were purchasing an average of 20 billion or more and this week only 17 billion.
If this happens they will once again raise rates ever so slowly.
The Fed purchased $17.1 billion in agency MBS during the weekly period ending July 8, from $23.1 billion the prior week. Freddie Mac reported that average mortgage rates fell in the week through July 9, with 30-yrs hitting 5.20%, from 5.32% the prior week.
In laymans terms this sounds to me like the Fed s purchase of mortgage backed securities dropped. If this keeps up and they dont buy as many then they may be comfortable with the rates where they are and will not try to buy more to make the rates fall. They were purchasing an average of 20 billion or more and this week only 17 billion.
If this happens they will once again raise rates ever so slowly.
Tuesday, July 7, 2009
Uh oh second stimulus package
See this quote of the Mortgage Backed Security quoteline.
MBS prices are up +8/32 (FNMA 30-yr 4.5 at 100.11), above the 9:45 et pricing level of +1/32, and at the high for the day. Favorable repricing was seen. No economic data came out today. Weakness in the stock market helped MBS markets. Demand for the 3-yr Treasury auction was relatively strong, but the yield was a little higher than expected. Foreign investors purchased 54% of the total. Also today, there was mounting speculation about the passage of a second round of fiscal stimulus before the end of the year. The Dow fell 160 points, to its lowest close since April 28. No economic data will be released tomorrow. There will be a 10-yr Treasury auction at 1:00 et.
What does this mean in the english simple term? We have seen a trend every time we get another stimulus package and the debt gets dumped into the economy the investors hold unto their purse strings. They dont let the rates fall. Please dont wait and miss out on rates while they are low. Today has been a good day.
MBS prices are up +8/32 (FNMA 30-yr 4.5 at 100.11), above the 9:45 et pricing level of +1/32, and at the high for the day. Favorable repricing was seen. No economic data came out today. Weakness in the stock market helped MBS markets. Demand for the 3-yr Treasury auction was relatively strong, but the yield was a little higher than expected. Foreign investors purchased 54% of the total. Also today, there was mounting speculation about the passage of a second round of fiscal stimulus before the end of the year. The Dow fell 160 points, to its lowest close since April 28. No economic data will be released tomorrow. There will be a 10-yr Treasury auction at 1:00 et.
What does this mean in the english simple term? We have seen a trend every time we get another stimulus package and the debt gets dumped into the economy the investors hold unto their purse strings. They dont let the rates fall. Please dont wait and miss out on rates while they are low. Today has been a good day.
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