The Whales Are BACK!

Every year from October to April we are blessed with thousands of humpback whales in Hawaiian waters.
This the a most fascinatiing natural phenomemon that occurs in Hawaii. They make their 3,000 mile journey from Alaska to Hawaii. The whales come to mate, give birth and raise their calves.
The Hawaiian islands is a unique location that is virtually predator fee with warm waters and a variety of ocean depts and the wonderful visibility that is believed to brings them here.


Just a few facts about the Humpback Whale;

• Adult humpbacks may get up to 45 feet and 40 tons.
• Life expectancy is 50 years.
• They do not sleep.
• They have very few predators...Humans...sharks and orcas.
• They do not feed while in Hawaii, they live off their fat built up while feeding in Alaska.
• Gestation is 11-12 months.
• Average calf is 1 to 1.5 tons and is 12 - 14 feet long at birth
• Mother humpback with teach the baby things like breaching, tail slapping and other whale behavior while in Hawaiian waters.
• Calf will gain about 100 pounds and one inch per day.
• The humpback whale was once near extinction due to hunting. They are still on the endangered list but their number are growing.

Maui Whale - Free videos are just a click away

Roxy's Weekly Mortgage UPdate

This week brings us the release of five economic reports for the markets to digest. Only one of these reports is considered to be highly important to mortgage rates, but this by no means leads me to believe we will have an uneventful week. This will be an extremely busy week for corporate earnings, which usually translates into stock volatility. The lack of important economic data on this week's calendar makes it more likely that any significant swings in stock prices will influence bond trading and mortgage rates.
September's Producer Price Index (P PI) is the first report of the week and the most important of the five. This index measures inflationary pressures at the producer level of the economy. Analysts are expecting to see no change in the overall index and a 0.1% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel inflation concerns in the bond market and push mortgage rates higher. However, weaker than expected readings should lead to lower rates Tuesday.

September's Housing Starts is the second report of the day, but is one of the week's least important pieces of data. It gives us an indication of housing sector strength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show an increase in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates. The PPI report should be much more of an influence on mortgage rates Tuesday than this housing report will

Roxy's Weekly Mortgage Update

Mortgage rates spent the first part of last week sliding lower again, but rates began creeping upward as the week progressed. With limited economic data to drive bond markets, much of the movement came
from money flowing into stock markets, which rallied as the week progressed.
Mortgage rates will likely start the week with some upward pressure hanging on from last week, but with a week full of economic data and some potential news from Washington, we could see rates go
either way next week. Both Retail Sales and Industrial Production data are due next week. With
consumers still struggling, a near unchanged sales reading might help propel rates higher, as would a
higher-than-expected IP reading. However, we’ve got the Consumer Price Index due with
expectations of continuing low inflationary pressures. If the CPI remains unchanged, and Congress
begins to move in earnest to extend or expand tax credits for homebuyers, we’re likely to see
mortgage rates return to the slow march downward, similar to the trend of last few months.

Roxy's Weekly Mortgage UpDate

Mortgage rates remained flat again this week as traders seemed to continue to hold a balanced view of the improving economy, muted inflationary pressures, and government support for financial markets.
We did see a few more signs of improving conditions, and also reminders that we are still not on solid
footing yet. The Fed also meet last week, leaving rates unchanged as expected. As the economy
improves, it is very likely that the Fed will let various support programs expire, such as the $300
billion program of buying Treasury debt that expires in four weeks.
This is a jam-packed week of economic data for markets to digest. The reports include the final
reading for last quarter’s GDP, the ISM Manufacturing Index, Consumer Confidence, and
September’s employment report. After the Fed’s meeting last week, if the data comes in revealing
growing economic strength, it would not be surprising to see mortgage rates beginning to trend slowly
upward. However, if unemployment jumps to 10.0%, we’ll see rates stay low.

Aloha Friday.... TGIF

Another week bites the dust.... I do love Friday's coming in second to Saturday! The end of summer brings our first big swell to Oahu's North Shore. Surf's UP, 18 to 20 footers this weekend could bring out all the locals and tourists and that means a busy, bustling NS, both Pipeline and Sunset beaches will be a sight to see for all. STAY out of the water if you’re NOT a very experienced surfer and even if you surf be careful.

More people are killed in high surf in Hawaii than any other place in the world. Don't go down to the water's edge YOU will get pounded! Sit back high on the beach and watch the beauty. I like to watch those crazy experienced surfer's tear it up! Using Jet Ski's to sling them onto those fast..BIG waves... incredible action!

Have a great weekend and stay safe.... Mahalo

What's Going On In The Market

I found this article to be of interest and thought you might too;


by Lonnie Adams, Director of Capital Markets

Both bond and equity markets are flat this morning, just waiting to hear what the Fed prognosticators have to tell us. The Fed announcement will occur around 11:15, AM, Pacific time; however, between now and then the U.S. Treasury will auction $40 billion of 5 year notes. While the Fed is expected to state economic prospects have brightened, the Fed will also tell the markets they remain committed to providing a helping hand to ensure a lasting recovery. Regardless of your politics, one thing that will definitely hamper any economic recovery is the expiration of the Bush tax cuts---set to expire in 2010. The current administration and Congress have already made it clear they will not extend these cuts. So, when you think only the wealthy will experience a tax increase next year, lets review what will be happening to tax rates. The 10% bracket will increase back to 15%...a tax burden hike of 50%! The 25% bracket will increase back to 28%...a tax burden hike of 12%. The 28% bracket will increase back to 31%...a tax burden hike of 10.7%. The 33% bracket will increase back to 36%...a tax burden hike of 9.1%. The 35% bracket will increase back to 39.6%...a tax burden hike of 13.1%. Keep in mind this does not include any tax increases required to pay for the new healthcare program. It is hard to imagine an economic recovery if we all have less in our paychecks.

Roxy's Weekly Mortgage UpDate

The “recession is very likely over,” announced Fed Chair Ben Bernanke last week.
While this may be technically true, markets did not react with the usual leap upward in interest rates.
Instead, mortgage rates continued their very slow downward decent. While we may finally be in a period of economic growth, we may be far from a reasonable economic recovery. As long as unemployment remains elevated, we may see inflationary pressures held in check. This combined with a slow unwinding of
federal intervention in financial markets may lead to a lengthy period of low rates. However, markets
may react with rapidly increasing rates if significantly better-than-expected data is released, or if
rumors of termination of certain government programs circulate.
The direction that mortgage rates move this week is very likely to be dependent on the Fed’s policy
announcement on Wednesday. If the Fed issues any surprises for the market, such as the termination
of any support programs, we could see rates rise. Otherwise, they should stay fairly level.

FEES Associated with Purchasing or Refinancing Your Home

Settlement costs

There are so many different charges involved in buying a home, it is important to know what to expect at the settlement. Your lender is required to give you a Good Faith Estimate (GFE) of your settlement costs within three business days of your loan application. Once you get it, review the charges below to avoid any surprises when you sit down to close on your loan.

There are three basic categories of settlement costs:
Fees to get a mortgage. This includes lender fees and points, as well as a host of other charges involved in obtaining and processing your loan. Points are an upfront charge expressed as a percent of the loan amount (e.g., 1 point is 1 percent of the loan) to increase the lender's effective yield on a loan.

Specific lender fees can include:
Loan Origination Fee. This is a charge for your lender's work in evaluating and preparing your mortgage loan.
Application Fee – This charge covers the initial costs of processing your loan application and obtaining your credit report.
Appraisal Fee – Your lender will need an opinion from an independent appraiser of the market value of the home you wish to purchase.
Survey – This fee goes to a surveying firm who will verify that your lot has not been encroached upon by any structures since the last survey conducted on the property and to ensure that the home and other structures and legally where the seller says they are.

Mortgage Insurance – A lender may require this type of insurance for buyers who make a down payment of less than 20 percent of the value of the house. The policy covers the lender's risk in the event the buyer fails to make the loan payments. Premiums are typically paid annually from an escrow or reserve account, or in a lump sum at closing.

Homeowner's Insurance – Insurance that protects property against loss caused by fire, some natural causes, vandalism, etc., depending on the terms of the policy. Also includes coverage such as personal liability and theft away from home. Your lender will expect you to have a policy in effect by closing.

Fees to establish and transfer ownership of the property. Your lending institution is not likely to give you a loan on a house unless you can prove that the seller owns the property you want to buy. This is where title search and title insurance fees come into play. A title agent will verify that the seller is, indeed, the owner of the property and issue a title insurance policy to guard the lender against any errors that could have occurred in the searching process. The cost of the policy is usually based on the loan amount. There may also be attorney, escrow, courier fees and other charges involved in the settlement process.

Fees to state and local governments. These fees include transfer, recordation and property taxes collected by local and state governments. Your taxes based on the assessed value of the home, which you pay for community services such as schools, public works, and other costs of local government. Taxes can often be paid as a part of your monthly mortgage payment.

Market UpDate

Thursday's bond market has opened in positive territory, following suit with stocks. The stock markets are continuing yesterday's positive tone, but to a much lesser scale. The Dow is currently up 23 points while the Nasdaq has gained 4 points. The bond market is currently up 8/32, which will likely improve this morning's mortgage rates by approximately .250 of a discount point
Neither of today's economic releases are considered to be of high importance to the markets and have not had much influence on this morning's mortgage rates. The Labor Department reported that 545,000 new claims for unemployment benefits were filed last week. This was lower than expected and can be considered negative news for bonds. However, the short period that this report tracks usually means it does not heavily influence trading or mortgage pricing.
August's Housing Starts report was also posted this morning, showing an increase in starts of new homes from July to August. This data helps us measure housing sector strength, but is also not one of the more important reports we see each month. Its results also have had little impact on this morning's mortgage rates.
There is no relevant data scheduled for release tomorrow, so look for the stock markets to influence bond trading. I would not be surprised to see bonds move in the same direction as stocks. Either way, we probably will have a relatively calm day in mortgage rates tomorrow unless something totally unexpected happens.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best in terest of all/any other borrowers.

Roxy's Weekly Mortgage Update

Mortgage rates slipped slightly last week, even as more signs of economic recovery appeared.
The highly-regarded ISM Manufacturing Index moved upward to 52.9, on expectations that it would only
reach 50.2. Any reading that is above 50 indicates that manufacturing is expanding in the US. Its
sister index, the ISM Non-Manufacturing, or Services Index, also climbed, but only to 48.4. Not all of
the data was good news last week, as the unemployment rate climbed unexpectedly to 9.7%.
However, financial markets did not react all that strongly to the news, as most analysts are anticipating
that the unemployment rate will top 10% before this recession has run its course.

News also came outthis week that more top economic forecasters are predicting that the US economy will begin growing in the current quarter, with some estimates for 3rd quarter GDP as high as 3.5%.This week has only a few economic data releases to influence rates. The current slightly downward
trend in mortgage rates is likely to last through the week, and may even last for a few more weeks.