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.
Cascade Lending,LLC-NMLS#1930219, NMLS#269926
Wednesday, September 30, 2009
Friday, September 25, 2009
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
Wednesday, September 23, 2009
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.
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.
Monday, September 21, 2009
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.
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.
Sunday, September 20, 2009
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.
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.
Thursday, September 17, 2009
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.
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.
Tuesday, September 8, 2009
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.
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.
Friday, September 4, 2009
Aloha Friday... TGIF...
I do love Friday's specially leading into a Holiday weekend... Labor Day is already here and an end to summer is fast approaching. Summer just flew by but I have some wonderful memories to show for it.
I hope you can say the same. This Friday I have a special day planned with my grandson's, school is out today so they have an early start to their weekend, four days off WOW what a treat! So today we are off to the movies and the FUN Factory.
But before I go I'd like to share a little aloha and tell you about what happened yesterday on our beach because although it happens occasionally it such a sight that we get excited each and every time we are granted a visit. The Hawaiian Green Sea Turtle listed on the endangered species feeds on the kelps that grow on the reef just a few feet off our shore. We can see them swimming on most any day but to get one up on our beach is rare. Yesterday we discovered not one but two turtles basking in the sun on our beach. I have to tell you they do raise a ruckus when people see them lying on the beach. If you are a people watcher like me then you'll get a kick out the some reactions, people passed them by without notice thinking they are rocks, some think they are in need of medical attentions or possibly dead. Some passer bys stop and take pictures or unfortunately try to pull them back into the ocean. These beautiful prehistoric creatures are incredibly tolerable of our interest in them specially when discovered on land. The older turtles will just ignore us and continue their slumber while the younger ones get irritated and retreat back into the ocean. If you happen on a Hawaiian Sea Turtle or any marine life basking in the sun please do not touch it, disturb it in any way, Stay a good 10 feet away as Federal Law requires. 
I hope you can say the same. This Friday I have a special day planned with my grandson's, school is out today so they have an early start to their weekend, four days off WOW what a treat! So today we are off to the movies and the FUN Factory.
But before I go I'd like to share a little aloha and tell you about what happened yesterday on our beach because although it happens occasionally it such a sight that we get excited each and every time we are granted a visit. The Hawaiian Green Sea Turtle listed on the endangered species feeds on the kelps that grow on the reef just a few feet off our shore. We can see them swimming on most any day but to get one up on our beach is rare. Yesterday we discovered not one but two turtles basking in the sun on our beach. I have to tell you they do raise a ruckus when people see them lying on the beach. If you are a people watcher like me then you'll get a kick out the some reactions, people passed them by without notice thinking they are rocks, some think they are in need of medical attentions or possibly dead. Some passer bys stop and take pictures or unfortunately try to pull them back into the ocean. These beautiful prehistoric creatures are incredibly tolerable of our interest in them specially when discovered on land. The older turtles will just ignore us and continue their slumber while the younger ones get irritated and retreat back into the ocean. If you happen on a Hawaiian Sea Turtle or any marine life basking in the sun please do not touch it, disturb it in any way, Stay a good 10 feet away as Federal Law requires. 
Children of course are very interested and want to touch them, get as close as possible, like up in their faces close. PLEASE do not let your children do this, I've never seen it but they do bit if they feel threaten and on land they are most venerable. Enjoy them but keep your distance.Share your encounter with a turtle or any marine life in the comment area. I'd like to hear about it. Mahalo
Market Update
Friday's bond market has opened in negative territory after today's major employment news did not reveal significantly weaker than expected readings. The stock markets have reacted mildly to the news though with the Dow up just 30 points and the Nasdaq up 8 points. The bond market is currently down 12/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point over yesterday's morning rates.
Thursday, September 3, 2009
Market Update
Thursday's bond market has opened in negative territory after the stock markets opened with minor gains and there was no important economic data on the calendar to influence trading. The Dow is currently up 25 points while the Nasdaq has gained 5 points. The bond market is currently down 4/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point.
Wednesday, September 2, 2009
Foreclosure OR Loan Modification
Are you in foreclosure or late on your mortgage? The latest foreclosure statistics are in and once again the news isn’t very good. In the 2nd quarter of 2009 tells us that one in every 159 homes in the US have received a foreclosure filing. Nevada continues to rank the highest state foreclosure rate. Arizona is second and California is third with 1 in every 58 housing units receiving a foreclosure filing.
Enough with the stats…. What’s important is if you are one of them right? Well if you are, there are things you can do. If you are in foreclosure and WANT to keep you home then hopefully this article with give you some needed information.
There are several places you can go and get information FREE. You can even talk with a HUD counselor FREE by calling 1 888-995-HOPE (4673). It’s important you take the steps to get this information before you lose your house. Time is of the essence. The HUD counselor will guide you so you can do your own modification or help you by contacting your lender for you. They will help you to see if you are within the guidelines for a loan modification and see if you qualify. Call them or go online MakingHOMEAffordable their site is full of information too.
Another really good source is Society for the Preservation of Continued Homeownership visit SPOCH’s Website for more information. This is a nonprofit, education and charitable corporation.
I encourage you to try to do your own loan modification. You can deal directly with your lender. Call your mortgage servicer immediately. In most cases they will hold off foreclosure while you’re going through the loan mod approval process.
Another source less expensive than an attorney is Financial Aid America, they sell a kit to help you understand and give you all the information you need to do your own loan modification with our lender. They also provide 3 month of 24/7 customer support.
There are many companies springing up all over the country offering Loan Modification for people in distress. BE CAREFUL there are many scams out there too. Never pay upfront!!!!! NEVER did you hear me NEVER. Most legitimate companies offer to look at your financial situation to evaluate your legibility for a loan mod, then if they think you are a good candidate they will take your case and charge you, NEVER GIVE ANYONE $$$ unless they have a 100% guarantee in writing. If they end up with a decline from your lender YOU get your money back. OR at the very least MOST of your money back. Good Luck and I am here if you have any questions.
Enough with the stats…. What’s important is if you are one of them right? Well if you are, there are things you can do. If you are in foreclosure and WANT to keep you home then hopefully this article with give you some needed information.
There are several places you can go and get information FREE. You can even talk with a HUD counselor FREE by calling 1 888-995-HOPE (4673). It’s important you take the steps to get this information before you lose your house. Time is of the essence. The HUD counselor will guide you so you can do your own modification or help you by contacting your lender for you. They will help you to see if you are within the guidelines for a loan modification and see if you qualify. Call them or go online MakingHOMEAffordable their site is full of information too.
Another really good source is Society for the Preservation of Continued Homeownership visit SPOCH’s Website for more information. This is a nonprofit, education and charitable corporation.
I encourage you to try to do your own loan modification. You can deal directly with your lender. Call your mortgage servicer immediately. In most cases they will hold off foreclosure while you’re going through the loan mod approval process.
Another source less expensive than an attorney is Financial Aid America, they sell a kit to help you understand and give you all the information you need to do your own loan modification with our lender. They also provide 3 month of 24/7 customer support.
There are many companies springing up all over the country offering Loan Modification for people in distress. BE CAREFUL there are many scams out there too. Never pay upfront!!!!! NEVER did you hear me NEVER. Most legitimate companies offer to look at your financial situation to evaluate your legibility for a loan mod, then if they think you are a good candidate they will take your case and charge you, NEVER GIVE ANYONE $$$ unless they have a 100% guarantee in writing. If they end up with a decline from your lender YOU get your money back. OR at the very least MOST of your money back. Good Luck and I am here if you have any questions.
Market Update
Wednesday's bond market has opened in positive territory following early volatility in stocks and favorable economic data. The stock markets have fluctuated between positive and negative ground this morning, but the Dow and Nasdaq are both currently up a couple of points. The bond market is up 4/32, which with yesterday's late strength should improve this morning's mortgage rates by approximately .250 of a discount point compared to yesterday's morning rates.
Tuesday, September 1, 2009
Market Update
Tuesday's bond market is in negative territory after this morning's primary economic release showed a much stronger than expected reading. The stock markets are showing losses with the Dow down 88 points and the Nasdaq down 12 points. The bond market is currently down 5/32, but I don't think we will see much of a change in this morning's mortgage rates due to strength late yesterday.
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