7000 people a day – That’s a big number

So, there are 7,000 people a day who exhaust their unemployment benefits.   That means that there are 7,000 people a day who are hanging on by a thread and that thread is being cut.

Guess what that’s going to mean for the number of foreclosures?

Guess what that’s going to mean for the delinquencies in mortgages?

They’ll both be going up as people’s options are running out…..

Tom Vanderwell

Calculated Risk: CNN: 7,000 People per Day exhaust Extended Unemployment Benefits

From Tami Luhby at CNNMoney: 7,000 unemployed Americans lose their lifeline every day…..

Another day, another 7,000 people run out of unemployment benefits.

One month after the House passed a bill extending unemployment benefits, the issue is still being debated in the Senate.

…1.3 million people [are] set to lose their benefits before year’s end if Congress doesn’t act, according to the National Employment Law Project, an advocacy group. In October alone, more than 200,000 people will fall off the rolls.

This will probably hit 10,000 people per day soon.

Technorati Tags: Foreclosures, Unemployment Benefits

What’s up with mortgages today?

A couple of things are happening today:

• The Central Bank of Australia raised rates today.  That is making a lot of people think that the market is getting closer to a turning point.   Personal opinion – Australia is a big country and a place I’d like to visit some day, but economically, it’s not that important.
• Some independent news paper wrote an article about how supposedly some foreign countries are talking about dumping the US Dollar and using a different currency for international exchange.   I’m not putting a lot of stock in it at this point because it’s very unsubstantiated but the possibility does exist.   The US Dollar has taken a hit on that report.
• Stocks are up today, at least so far.

With all of these things going on, we’ve seen a small increase in mortgage rates.  Not substantial but a bit more than they were yesterday.

Recommendation: I’m switching my recommendation from float to lock.  The “mood of the market” is shifting and while last week it appeared that the market was going to give us more of a downward trend in  mortgage rates, the attitude is different right now.

On a long term standpoint, I think it’s safe to say that my feeling is the trend will be higher rather than lower.

Stay tuned and as always, call me at (616) 292-7559 or e-mail me at tvanderwell@straighttalkaboutmortgages.com if I can be of help.

Thanks!

Tom Vanderwell
Technorati Tags: Mortgage Rates, Mortgage Market Update

There’s something weird going on with mortgage rates

There’s something weird going on in the Mortgage World…..Technorati Tags: Mortgage Rates

What’s the Mortgage Market Doing Today?

It’s getting a little nervous……

Let me explain:

• Retail sales were up and they weren’t up strictly because of the “Cash for Clunkers” program.   That’s a good thing economically but not so much from an inflation standpoint.
• The Producer Price Index was higher than expected.
• A relatively minor manufacturing report came in better than expected.

All three of them are not “market moving reports” in themselves.   But all three of them provide insight into a chain of events that might be building up.   Let me lay out that scenario:

• Retail sales are up.
• Inflation on the wholesale level is up.
• Manufacturing is up.
• All of these could potentially be signs of inflation.
• Inflation brings higher rates.

Have rates changed today?   Very little.   But the nerves are a little more “jumpy.”

So, with the Consumer Price Index coming out tomorrow morning, what’s my recommendation?   I’ve adjusted it a little.   I’m changing from “cautiously floating” to VERY Cautiously floating.   Why’s that?

Basically, the news that came out today is tipping the scales slightly towards higher rates rather than lower rates.   Not enough to make me recommend “lock” but closer than we were yesterday.

I’ll continue to keep you informed, call me at (616) 292-7559 or e-mail me at tvanderwell@straighttalkaboutmortgages.com if I can be of help.

Thanks!

Tom Vanderwell

Mortgage Rates

How’s the Market Today?

How’s the market today?

Mortgage Rates

Doing Mortgages in Other States

Jessica Horton (check out www.jessicahorton.com) asked me how it works to be in Michigan and do mortgages in other states.    Here’s my response….

If you live in Michigan or elsewhere, I’d love to help you with a mortgage.   Let me know if I can.

Tom Vanderwell

Doing Mortgages In Other States

Doing Mortgages in Other States

Am I the only one?

Am I the only one who gets nervous when:

• The Mortgage Bankers Association is the first one out there with a comprehensive proposal on how to make a “new” mortgage market?   I mean, I am a mortgage lender  (Hi, my name is Tom and I’m a Mortgage Lender) but still, isn’t that sort of like my third grader making the rules on what constitutes a clean room?
• And, am I the only one who is suspicious that the way the MBA proposal works will be slanted in favor of the mortgage institutions?

Remind me again, how well did these guys handle the last 10 years?

Tom Vanderwell

Mortgage Bankers Urge Congress to Replace Fannie, Freddie : HousingWire || financial news for the mortgage market

The mortgage banking industry is calling for a regulatory overhaul of the secondary mortgage market and a new governmental role in the securitization of mortgage loans.

The Mortgage Bankers Association on Wednesday urged the implementation of new mortgage-backed securities (MBS) and a new set of government-regulated mortgage investors and securitization entities.

The MBA said government’s role in the housing market should not be confined to providing capital in an attempt to absorb risk during times of extreme financial distress, but should be expanded to promote liquidity for investor purchases of MBS.

Mortgage Bankers Association, Fannie and Freddie

Mortgage Market Update

Mortgage Rates, Mortgage Market Update

So what’s happening with mortgage rates today?

Mortgage rates

Mortgage Market Update

Quick update for now on the news and what’s happening in mortgages:

• Index of Leading Indicators showed some signs of a good report.
• The Conference Board said that the recession is at the bottom right now.
• Mortgage delinquencies continue to go up.
• Unemployment claims went up.

So we’ve got two good and two not so good reports.   What does that mean?   Pretty much the status quo.   No change on rates at this point.

My recommendation remains to lock.   Grab what you can get while it’s there.

More later,

Tom Vanderwell

Mortgage Market Update

Next Page »