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

How’s the Mortgage Market Today?

My answer to that question…..

How’s the Market Today?

Mortgage Market Update, Mortgage Rates

Mortgage Market Update

So what’s driving the  market today?  A couple of main things are impacting them today:

• Mergers and Acquistions – there are a few deals (mainly involving food) out there that are suggesting that the stock market isn’t dead.   This is pushing money into the stock market and away from bonds.
• On the “flip” side, oil prices, gold prices and other commodities are all higher, predominantly due to the value of the dollar falling.

So we’ve got a “point/counter point” pressure on mortgage rates going on.   One is pushing down, the other is pushing up.    This afternoon there’s another Treasury auction, but it’s the very short term Treasuries, so I don’t anticipate it having much impact on the mortgage world.

Recommendation for this morning is to carefully float.   At any time, the pressures could flip one way or the other and send rates up or down, but my feeling is that today could be a fairly decent one for mortgage rates.

I’ll continue to keep you informed, let me know how I can be of help.

Thanks!

Tom Vanderwell

Mortgage Rates

Mortgage Market Update

Mortgage Rates, Mortgage Market Update

Mortgage Market Update

Mortgage Rates, Mortgage Market Update

Mortgage Market Update – and the Fed….

Okay, so what’s happening today?  A couple of things:

• In a speech Thursday, Lacker said it was unclear whether the economy
  needed so much rocket fuel now that conditions were leveling out. “I
  will be evaluating carefully whether we need or want the additional
  stimulus that purchasing the full amount authorized under our agency
  mortgage-backed securities purchase program would provide,” Lacker said.   What does that mean?   My personal view is that it’s a “trial balloon” being floated by the Fed to find out what the market would say if one of the biggest buyers of mortgage backed securities would stop buying.   Well, rates are up because of what he said.   Imagine what will happen if the Fed actually stops buying mortgage backed securities?
• The FDIC came out with their problem bank list and it was substantially worse than expected and worse than the 1st quarter.   A sign that the overall banking mess may not be as wrapped up as we thought.
• Jobless claims came out somewhat mixed this morning.   Not good but not totally abysmal.
• GDP reports came in down 1% which is pretty much what the markets had anticipated.

With all of those, rates came in a little higher today than they did yesterday.   My recommendation remains to lock all loans.   Don’t I almost always say that?   Lately, I have.   But the reason that I have is because, in my opinion, the risk of higher rates is significantly greater than the risk of lower rates.    Between the Fed potentially stopping their purchase of mortgage backed securities, the increased risk of a W recession, rising mortgage delinquencies and increasing foreclosures, the risk of additional pressure on rates is higher than it’s been for a while.

I’ll continue to keep you informed, let me know if I can help.

Tom Vanderwell

P.s. Here’s a sampling of some of the rates that I’m quoting today:

Purchase, owner occupied, 30 year fixed, 20% down, under $417,000, 30 day rate lock, 5.000% with no points or 4.99% with .5 pts.

Refinance, owner occupied, 80% loan to value, 15 year fixed, under $417,000, 60 day rate lock, 4.75% with 0 pts or 4.625% with 1 pt.

Mortgage Market Update, Mortgage Rates

Mortgage Market Update

It’s time to take a quick look at what’s going on in the mortgage world today.   A couple of things that are pushing rates up a bit:

• At the Federal Reserve’s conference over the weekend, no one sounded like they wanted to raise rates soon.    Well, think about it, we’re at best in a very precarious recovery and at worse in what has been called a “dead cat bounce.”   Of course they aren’t going to want to raise rates soon.    But, the markets reacted positively, the stock market is higher today and rates are also higher.
• A couple of relatively minor manufacturing reports came in and showed some improvement as well.   Nothing earthshaking but yet they add to the trend of seeing that things might be rounding a corner. 

Because of these, we’re a bit higher on rates today than we were on Friday.   If you are already signed up for my Mortgage Market Week in Review, you’ve already gotten a copy of my current rates.   If you haven’t signed up already, click on Mortgage Market Week in Review and that will take you to the main page and there’s a spot in the left column to sign up.

I’ll keep in touch as things move on.

Thanks!

Tom Vanderwell

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

Mortgage Market Update

Mortgage Market Update

Mortgage Market Update

Well, today’s mortgage market started out somewhat on the up side.   Not enough to actually change the rates we can offer, but enough to make it a little more expensive to get the same rate as we had yesterday.

So what’s happening today?

• The stock market is recovering some today and actually looking a bit positive.   Remember what I said in yesterday’s Mortgage Market Week in Review – when the stock market is going up, that’s not too friendly for mortgage rates.
• Housing Starts – were up from June of 2009 but down from July of 2008.   The market is looking at that as a good thing.   I’ll have more on the housing starts later today.   Quick take on it:  Seasonality and not enough of a statistical difference for it to be considered a trend – yet.
• Builder confidence – this goes with the housing starts.   If you are a builder who is struggling and you see a pick up in starts, it’s going to make you feel better.

Is it the trend reversal that I was looking at coming?   Too early to tell.   But it’s definitely something to watch for.

My recommendation remains to lock all loans.   I’m still pegging the chances of substantially lower rates at less than 30% and the odds of higher rates at more like 70%.

Grab it when you can get it, and call me if you need help getting it.   I can be reached by e-mail at tvanderwell@straighttalkaboutmortgages.com or at (616) 292-7559.   Oh, and I can do mortgages in 43 of 50 states.

Have a good day!

Tom Vanderwell

Here’s a sampling of some of the rates that I’m quoting today:

Owner Occupied purchase 10% down or more, loan under $417,000, 30 year fixed, 30 day rate lock, 5.125% with 0 pts.

Owner occupied refinance, 80% loan to value, rate and term refinance, 30 year fixed, 60 day rate lock, 5.375% with 0 pts.

Owner occupied purchase, FHA, 3.5% down, 30 year fixed, 30 day rate lock, 5.25% with 1 pt or 5.375% with 0 pts.

All APRs available upon request.

Mortgage Market Update, Mortgage Rates

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