Friday’s bond market has opened in positive territory as investors look to close the year out on a positive note. The stock markets are showing minor losses of 18 points in the Dow and 11 points in the Nasdaq. The bond market is currently up 10/32, which should improve this morning’s mortgage rates by approximately .125 of a discount point.
There is nothing of importance this morning, making it highly likely that we will crawl into the end of the year. As expected, trading is extremely light this morning and there is no reason to think that will change before today’s 2:00 PM ET close. The stock markets are technically open all day, but it doesn’t look many traders went to work. We will probably see a little fluctuation in the major indexes and bond prices, but I would be highly surprised if we saw significant movement or an intra-day change to mortgage rates.
Next week brings us the release of several relevant economic reports. The week opens and closes with important reports, giving us a good look at current economic conditions. Monday has December’s Institute for Supply Management’s (ISM) manufacturing index. This is usually the first most current report we see month. It is posted the first business day of the month and covers the preceding month. The data tracks manufacturer sentiment, giving us an indication of manufacturing sector strength. It is considered to be one of the more important reports we see each month.
Cascade Lending,LLC-NMLS#1930219, NMLS#269926
Friday, December 31, 2010
Thursday, December 30, 2010
Market UpDate W/Labor Department Claims below forecasts
Thursday’s bond market has opened in negative territory following the release of much stronger than expected economic data. The stock markets have had little reaction to the news with the Dow up 9 points and the Nasdaq down 2 points. The bond market is currently down 9/32, but we will still see a noticeable improvement in this morning’s mortgage rates due to strength late yesterday. If comparing to yesterday’s morning rates, we should see an improvement of approximately .375 of a discount point.
The Labor Department said early this morning that 388,000 new claims for unemployment benefits were filed last week. This was well below forecasts of 416,000 and the lowest total since July 2008. At first appearance, the headline number could be concerning for the bond market and good news for stocks. The size of the drop and the number of new claims hints at a strengthening employment sector. In fact, the number of weekly new claims has risen only once in the past 6 weeks.
That said, the markets have not had a significant reaction to the data for a couple of reasons. First and primarily, the data covers only a single week’s worth of new claims. Another portion of the report showed that the number of continuing claims for benefits (claims that are not new) rose during the week when analysts were expecting them to remain flat. Also, the reason for the drop in new claims could be the Christmas Holiday last week where state offices were closed at least one of the five days. So, while the headline number of 388,000 does draw attention, it comes from a report that does not carry significant importance because of the short term it covers and were statistics from a holiday-shortened week.
The Labor Department said early this morning that 388,000 new claims for unemployment benefits were filed last week. This was well below forecasts of 416,000 and the lowest total since July 2008. At first appearance, the headline number could be concerning for the bond market and good news for stocks. The size of the drop and the number of new claims hints at a strengthening employment sector. In fact, the number of weekly new claims has risen only once in the past 6 weeks.
That said, the markets have not had a significant reaction to the data for a couple of reasons. First and primarily, the data covers only a single week’s worth of new claims. Another portion of the report showed that the number of continuing claims for benefits (claims that are not new) rose during the week when analysts were expecting them to remain flat. Also, the reason for the drop in new claims could be the Christmas Holiday last week where state offices were closed at least one of the five days. So, while the headline number of 388,000 does draw attention, it comes from a report that does not carry significant importance because of the short term it covers and were statistics from a holiday-shortened week.
Tuesday, December 28, 2010
Market UpDate
Tuesday’s bond market has opened in negative territory despite quite favorable economic news and an uneventful open in stocks. The Dow and Nasdaq are both currently down a couple of points. The bond market is currently down 13/32, which will likely push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point.
December’s Consumer Confidence Index (CCI) was this morning’s only relevant economic data. The Conference Board said late this morning that their CCI reading stood at 52.5 this month. This was nearly a 2-point drop from November’s revised reading, indicating that consumers were less optimistic about their own financial situations than many had thought. Making the news even more interesting is the fact that analysts had forecasted an increase of 2 points from November. This means that while the markets were expecting a rise in confidence, it was actually falling. That is good news for the bond market because waning consumer confidence means consumers are less likely to make large purchases in the near future, limiting fuel for economic growth.
Despite this favorable data, the bond market is showing moderate losses. This could be partly due to trader maneuvering ahead of the Treasury auctions that will be held today and tomorrow. 5-year Notes will be sold today and 7-year Notes tomorrow. Tomorrow’s sale is a closer term to mortgage bonds than today’s is, but the first of the two often gives us the best measurement of investor demand. The pre-sale weakness is fairly common as participants hedge their positions before bidding starts, but as long as the sales don’t go poorly those early losses are often erased during afternoon trading.
December’s Consumer Confidence Index (CCI) was this morning’s only relevant economic data. The Conference Board said late this morning that their CCI reading stood at 52.5 this month. This was nearly a 2-point drop from November’s revised reading, indicating that consumers were less optimistic about their own financial situations than many had thought. Making the news even more interesting is the fact that analysts had forecasted an increase of 2 points from November. This means that while the markets were expecting a rise in confidence, it was actually falling. That is good news for the bond market because waning consumer confidence means consumers are less likely to make large purchases in the near future, limiting fuel for economic growth.
Despite this favorable data, the bond market is showing moderate losses. This could be partly due to trader maneuvering ahead of the Treasury auctions that will be held today and tomorrow. 5-year Notes will be sold today and 7-year Notes tomorrow. Tomorrow’s sale is a closer term to mortgage bonds than today’s is, but the first of the two often gives us the best measurement of investor demand. The pre-sale weakness is fairly common as participants hedge their positions before bidding starts, but as long as the sales don’t go poorly those early losses are often erased during afternoon trading.
Saturday, December 25, 2010
Tuesday, December 21, 2010
Tangy Pineapple Chicken Recipe
This recipe is easy, fast and deliciousPrep time: 30 minutes
Cook in Slow cooker on low for 5 to 6 hours.
2 pounds of chicken thigh meat, boneless, skinless and cut into 1 to 2 inch wide strips
20 –ounce can of pineapple (tidbits) or about ½ of a whole fresh pineapple cut into tidbits.
20-ounce can of pineapple rings or use the other ½ of your fresh pineapple cut into rings 2 tbsp of butter
¼ cup of brown sugar
1 large sweet Red Pepper chopped, about 1 cup
BBQ Sauce …use your favorite about 1 cup
½ cup of Italian salad dressing …use your favorite
2 teaspoons of dried oregano crushed
In a large skillet cook chicken in hot oil over medium heat until brown. Drain off fat and pour into your slow cooker. Add pineapple tidbits and sweet red pepper.
In a small bowl combine BBQ sauce, salad dressing and oregano stir all together and pour over chicken.
Cover and cook on low heat setting for 5 to 6 hours or high for 2 to 3 hours.
Cook your favorite rice, jasmine rice is a favorite of mine for this dish.
Once your dish has cooked, heat up a large fry pan with 2 tbsp of butter and your ¼ cup of brown sugar mix up and dissolved them together once they are warm add your pineapple rings and fry them up on both side so they are caramelized, add one or two rings to each serving. This last step is optional of course but will really set this dish apart from any other tangy chicken recipes you’ve ever made and is delightfully sweet and tangy. Enjoy!
Monday, December 20, 2010
Market UpDate for Monday
Monday’s bond market has opened in positive territory as last week’s late strength extends into this morning’s trading. The stock markets are doing their part but showing losses rather than gains with the Dow down 38 points and the Nasdaq down 5 points. The bond market is currently up 14/32, which with Friday’s afternoon strength should improve this morning’s mortgage rates by approximately .625 - .750 of a discount point.
There is no relevant economic news scheduled for release today or tomorrow. This means we can look towards the stock markets for direction in bond trading and mortgage rates. If the major stock indexes move higher, we could see pressure in bonds and mortgage rates. Ideally, we would like to see stock weakness that helps boost bond prices and improve mortgage pricing.
This holiday-shortened trading week brings us the release of six monthly or quarterly economic reports, all being posted Wednesday and Thursday. Only a couple of the reports being released are considered to be of high importance to the markets. With the Christmas holiday being observed this week, we can expect very thin trading. This means that we may see a larger reaction than normal to some news because there will be fewer traders working and less transactions being made.
There is no relevant economic news scheduled for release today or tomorrow. This means we can look towards the stock markets for direction in bond trading and mortgage rates. If the major stock indexes move higher, we could see pressure in bonds and mortgage rates. Ideally, we would like to see stock weakness that helps boost bond prices and improve mortgage pricing.
This holiday-shortened trading week brings us the release of six monthly or quarterly economic reports, all being posted Wednesday and Thursday. Only a couple of the reports being released are considered to be of high importance to the markets. With the Christmas holiday being observed this week, we can expect very thin trading. This means that we may see a larger reaction than normal to some news because there will be fewer traders working and less transactions being made.
Sunday, December 19, 2010
Market UpDate for the Holiday Week
This holiday-shortened trading week brings us the release of six monthly or quarterly economic reports. Only a couple of the reports being released are considered to be of high importance to the markets. With the Christmas holiday being observed during the week, we can expect very thin trading. This means that we may see a larger reaction than normal to some news because there will be fewer traders working and less transactions being made.
There is no relevant economic news scheduled for release tomorrow or Tuesday, so look for the stock markets to help drive bond trading and mortgage rates those days. Generally speaking, stock market strength should equate into bond weakness and higher mortgage rates. However, the light trading could allow some movement in the major stock indexes without heavily influencing bond trading and mortgage pricing.
Two of the week’s reports are scheduled for posting Wednesday. The first is the final revision to the 3rd Quarter GDP. I don’t think this data will have an impact on mortgage rates unless it varies greatly from its expected reading. Last month’s first revision showed that the economy expanded at a 2.5% annual pace during the quarter and this month’s revision is expected to show a small upward revision. A revision higher than the 2.7% rate that is expected would be considered bad news for bonds. But since this data is quite aged at this point I don’t think it will have much of an impact on mortgage rates Wednesday.
There is no relevant economic news scheduled for release tomorrow or Tuesday, so look for the stock markets to help drive bond trading and mortgage rates those days. Generally speaking, stock market strength should equate into bond weakness and higher mortgage rates. However, the light trading could allow some movement in the major stock indexes without heavily influencing bond trading and mortgage pricing.
Two of the week’s reports are scheduled for posting Wednesday. The first is the final revision to the 3rd Quarter GDP. I don’t think this data will have an impact on mortgage rates unless it varies greatly from its expected reading. Last month’s first revision showed that the economy expanded at a 2.5% annual pace during the quarter and this month’s revision is expected to show a small upward revision. A revision higher than the 2.7% rate that is expected would be considered bad news for bonds. But since this data is quite aged at this point I don’t think it will have much of an impact on mortgage rates Wednesday.
Friday, December 17, 2010
Market UpDate
Friday’s bond market has opened in positive territory again with a mixed morning in stocks and no surprises in today’s only economic news. The Dow is currently down 28 points while the Nasdaq has gained 6 points. The bond market is currently up 7/32, but we should see a sizable improvement in this morning’s mortgage pricing due partly to strength in bonds late yesterday. If comparing to yesterday’s morning pricing, we should see an improvement of approximately .625 of a discount point in rates.
November’s Leading Economic Indicators (LEI) was today’s only relevant economic data. The Conference Board announced an increase of 1.1% in November’s reading, meaning they are predicting fairly rapid economic growth over the next three to six months. This is basically bad news for the bond market and mortgage rates, but since it nearly matched forecasts it has had a minimal impact on today’s pricing.
Yesterday’s late strength that carried into this morning’s trading allows us to be optimistic that the worst is behind us in regards to the bond sell-off and resulting spike in mortgage rates. If looking at the markets using the same approach that has worked so well for us for many years, we could see further improvements to rates in the immediate future. However, that same approach didn’t do us much good the first part of the month as bond yields and mortgage rates shot upward. So, we remain cautiously optimistic. It would be a good idea to not let our guard down quite yet, but if the current situation as we see it remains intact, there is more likelihood of seeing rates improve from current levels than there is of them moving much higher. Let’s cross our fingers that we don’t get blindsided again.
November’s Leading Economic Indicators (LEI) was today’s only relevant economic data. The Conference Board announced an increase of 1.1% in November’s reading, meaning they are predicting fairly rapid economic growth over the next three to six months. This is basically bad news for the bond market and mortgage rates, but since it nearly matched forecasts it has had a minimal impact on today’s pricing.
Yesterday’s late strength that carried into this morning’s trading allows us to be optimistic that the worst is behind us in regards to the bond sell-off and resulting spike in mortgage rates. If looking at the markets using the same approach that has worked so well for us for many years, we could see further improvements to rates in the immediate future. However, that same approach didn’t do us much good the first part of the month as bond yields and mortgage rates shot upward. So, we remain cautiously optimistic. It would be a good idea to not let our guard down quite yet, but if the current situation as we see it remains intact, there is more likelihood of seeing rates improve from current levels than there is of them moving much higher. Let’s cross our fingers that we don’t get blindsided again.
Tuesday, December 14, 2010
Market UpDate and FOMC meeting w/ NO Change to short term Interest Rates
Today’s FOMC meeting has adjourned with no change to key short-term interest rates, as expected. The post meeting statement seemed to be favorable for bonds with points such as the economy not growing fast enough to improve unemployment, business spending has slowed compared to earlier this year and employers unwilling to add payrolls. These all suggest that the economy is growing much slower than the Fed would like, and accordingly they are continuing with their $600 billion Treasury security purchase campaign.
So, bad news about the economy from the Fed is good news for the bond market, correct? Not today. The stock markets have had little reaction to the release and remain near this morning’s levels. However, in keeping pace with the illogic trading patterns of late, the bond market went into selling mode again. The benchmark 10-year Treasury Note’s yield is now 3.39%, leaving the rec ent resistance levels in the dust. This means that the previous ceilings are now levels of support on the yield, which translates into higher mortgage rates. We will certainly see upward revisions to mortgage rates this afternoon. They will likely be around .250 - .375 of a discount point from this morning’s pricing, possibly more if bonds continue to sell into closing.
So, bad news about the economy from the Fed is good news for the bond market, correct? Not today. The stock markets have had little reaction to the release and remain near this morning’s levels. However, in keeping pace with the illogic trading patterns of late, the bond market went into selling mode again. The benchmark 10-year Treasury Note’s yield is now 3.39%, leaving the rec ent resistance levels in the dust. This means that the previous ceilings are now levels of support on the yield, which translates into higher mortgage rates. We will certainly see upward revisions to mortgage rates this afternoon. They will likely be around .250 - .375 of a discount point from this morning’s pricing, possibly more if bonds continue to sell into closing.
Monday, December 6, 2010
Monday Market UpDate
Monday’s bond market has opened in positive territory following a flat open in stocks and a primetime TV reminder from Fed Chairman Bernanke that the economic outlook isn’t so rosy. The stock markets are nearly unchanged from Friday’s close with the Dow down 3 points and the Nasdaq down 1 point, but just the lack of a gain is good news for the bond market at this point. The bond market is currently up 15/32, which should improve this morning’s mortgage rates by approximately .125 - .250 of a discount over Friday’s morning pricing.
There is no relevant economic news being posted today. Fed Chairman Bernanke’s interview on last night’s edition of 60 Minutes has helped push bonds more towards reality. During his interview that aired last night, he said that unemployment would likely remain high for 4 or 5 years and that recent concerns about inflation are overstated. He also added that another round of debt purchases by the Fed is possible. I find the timing of this interview to be impeccable and quite ironic after last week’s activity. It, along with Friday’s employment data, will hopefully help restore some reason to the markets and remind us that the economy still has plenty to overcome.
There is no relevant economic news being posted today. Fed Chairman Bernanke’s interview on last night’s edition of 60 Minutes has helped push bonds more towards reality. During his interview that aired last night, he said that unemployment would likely remain high for 4 or 5 years and that recent concerns about inflation are overstated. He also added that another round of debt purchases by the Fed is possible. I find the timing of this interview to be impeccable and quite ironic after last week’s activity. It, along with Friday’s employment data, will hopefully help restore some reason to the markets and remind us that the economy still has plenty to overcome.
Friday, December 3, 2010
Quote For The Day
"May the sun always shine on your windowpane; May a rainbow be certain to follow each rain; May the hand of a friend always be near you; May God fill your heart with gladness to cheer you."
Irish Blessing
Irish Blessing
Friday Market UpDate
Friday’s bond market has opened in positive territory following the release of weaker than expected employment numbers. The stock markets are showing losses after the release, but by a far less margin than we would expect. The Dow is currently down 23 points while the Nasdaq is showing a loss of 3 points. The bond market is currently up 8/32, which should improve this morning’s mortgage rates by approximately .375 of a discount point from yesterday’s morning pricing.
The Labor Department said that the U.S. unemployment rate rose 0.2% last month to 9.8% when analysts were expecting no change from October’s rate. They also reported that 39,000 new jobs were added to the economy last month, falling well short of the 130,000 that were expected. And to complete the trifecta, average earnings remained unchanged compared to the 0.1% increase that was forecasted.
This is great news for the bond market and mortgage rates. At leas t it is supposed to be. As I addressed yesterday, these weak numbers did not come as a surprise. What is surprising is the relatively calm reaction to them. I would have expected a reversal of Wednesday’s selling, especially since this morning’s data carries much more weight than any of the nuggets of info that market bulls based the stock rally on. At the very least, today’s data underscores the fact that Wednesday’s economic optimism was certainly premature. I suspect we may see some weakness in stocks into closing as investors look to lock profits. If this is the case, we could bond prices rise this afternoon, possibly improving mortgage rates further.
The Labor Department said that the U.S. unemployment rate rose 0.2% last month to 9.8% when analysts were expecting no change from October’s rate. They also reported that 39,000 new jobs were added to the economy last month, falling well short of the 130,000 that were expected. And to complete the trifecta, average earnings remained unchanged compared to the 0.1% increase that was forecasted.
This is great news for the bond market and mortgage rates. At leas t it is supposed to be. As I addressed yesterday, these weak numbers did not come as a surprise. What is surprising is the relatively calm reaction to them. I would have expected a reversal of Wednesday’s selling, especially since this morning’s data carries much more weight than any of the nuggets of info that market bulls based the stock rally on. At the very least, today’s data underscores the fact that Wednesday’s economic optimism was certainly premature. I suspect we may see some weakness in stocks into closing as investors look to lock profits. If this is the case, we could bond prices rise this afternoon, possibly improving mortgage rates further.
Tuesday, November 23, 2010
Market UpDate
Tuesday’s bond market has opened in positive territory again after news of the Korean conflict raised fears of further instability in the world markets. The stock markets have reacted negatively with the Dow down 145 points and the Nasdaq down 33 points. The bond market is currently up 19/32, which should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point.
There were two relevant economic reports posted this morning. The initial revision to the 3rd Quarter Gross Domestic Product (GDP) was the first, showing a 2.5% annual rate of economic growth during the third quarter. This was a little higher than forecasts and a fairly sizable increase from the previous estimate of 2.0%, meaning economic activity was stronger than many had thought. This is bad news for the bond market and mortgage rates because long-term securities such as mortgage-related bonds are more attractive to investors in a weak eco nomic and low inflation environment. Still, to the benefit of mortgage shoppers the Korean news is taking center stage, at least during morning trading.
The National Association of Realtors reported late this morning that home resales fell 2.2% last month, nearly matching forecasts. This can be considered relatively favorable news for the bond market and mortgage rates because it indicates the housing sector remains weak. Since a weak housing sector makes a broader economic recovery more difficult, today’s results are good news. However, since there was little variance from forecasts and this data is not considered highly important, its impact on this morning’s rates has been minimal.
There were two relevant economic reports posted this morning. The initial revision to the 3rd Quarter Gross Domestic Product (GDP) was the first, showing a 2.5% annual rate of economic growth during the third quarter. This was a little higher than forecasts and a fairly sizable increase from the previous estimate of 2.0%, meaning economic activity was stronger than many had thought. This is bad news for the bond market and mortgage rates because long-term securities such as mortgage-related bonds are more attractive to investors in a weak eco nomic and low inflation environment. Still, to the benefit of mortgage shoppers the Korean news is taking center stage, at least during morning trading.
The National Association of Realtors reported late this morning that home resales fell 2.2% last month, nearly matching forecasts. This can be considered relatively favorable news for the bond market and mortgage rates because it indicates the housing sector remains weak. Since a weak housing sector makes a broader economic recovery more difficult, today’s results are good news. However, since there was little variance from forecasts and this data is not considered highly important, its impact on this morning’s rates has been minimal.
Monday, November 22, 2010
FHA Refinance for Borrowers in Negative Equity Positions (NEP)
Homeowner’s who are in a negative equity position (owe more than the value of their home)
have a program designed to help them if they meet the guidelines set by Department of Housing and Urban Development (HUD). This new program is an enhancement to the existing Making Home Affordable Program (MHA) and is a FHA refinance program that will give a greater number of homeowners the opportunity to stay in their homes. The homeowner would have to qualify for the new FHA loan and their current lender or investor would have to write off 10% of the existing first lien mortgage. Eligibility of this NEP –FHA loan is voluntary and requires the consent of lien holders. The home owner eligibility is as follows.
1. The homeowner must be in a negative equity position;
2. The homeowner must be current on the existing mortgage to be refinanced;
3. The homeowner must occupy the subject property (1-4 units) as their primary residence;
4. The homeowner must qualify for the new loan under standard FHA underwriting
requirements and possess a “FICO based” decision credit score greater than or equal to 500;
5. The existing loan to be refinanced must not be a FHA-insured loan;
6. The existing first lien holder must write off at least 10 percent of the unpaid principal balance;
7. The refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than
97.75 percent;
8. Non-extinguished existing subordinate mortgages must be re-subordinated and the new loan
may not have a combined loan-to-value ratio greater than 115 percent;
9. For loans that receive a “refer” risk classification from TOTAL Mortgage Scorecard
(TOTAL) and/or are manually underwritten, the homeowner’s total monthly mortgage
payment, including the first and any subordinate mortgage(s), cannot be greater than 31
percent of gross monthly income and total debt, including all recurring debts, cannot be
greater than 50 percent of gross monthly income;
10. FHA mortgagees are not permitted to use premium pricing to pay off existing debt
obligations to qualify the borrower for the new loan;
11. FHA mortgagees are not permitted to make mortgage payments on behalf of the borrower
or otherwise bring the existing loan current to make it eligible for FHA insurance; and
12. The existing loan to be refinanced may not have been brought current by the existing first
Lien holder, except through an acceptable permanent loan modification as described below.
The Mortgagee must ensure the existing first lien holder writes off at least 10% of unpaid principal on their current loan. The short payoff serves as payment in full and a full conveyance for the debt is completed. The new FHA loan can be no more than 97.75% of the unpaid principal balance of the first lien and any existing subordinate mortgages must be re-subordinated and not have a combined loan to value of more than 115%.
More information is available on the HUD website at; www.hud.gov
have a program designed to help them if they meet the guidelines set by Department of Housing and Urban Development (HUD). This new program is an enhancement to the existing Making Home Affordable Program (MHA) and is a FHA refinance program that will give a greater number of homeowners the opportunity to stay in their homes. The homeowner would have to qualify for the new FHA loan and their current lender or investor would have to write off 10% of the existing first lien mortgage. Eligibility of this NEP –FHA loan is voluntary and requires the consent of lien holders. The home owner eligibility is as follows.
1. The homeowner must be in a negative equity position;
2. The homeowner must be current on the existing mortgage to be refinanced;
3. The homeowner must occupy the subject property (1-4 units) as their primary residence;
4. The homeowner must qualify for the new loan under standard FHA underwriting
requirements and possess a “FICO based” decision credit score greater than or equal to 500;
5. The existing loan to be refinanced must not be a FHA-insured loan;
6. The existing first lien holder must write off at least 10 percent of the unpaid principal balance;
7. The refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than
97.75 percent;
8. Non-extinguished existing subordinate mortgages must be re-subordinated and the new loan
may not have a combined loan-to-value ratio greater than 115 percent;
9. For loans that receive a “refer” risk classification from TOTAL Mortgage Scorecard
(TOTAL) and/or are manually underwritten, the homeowner’s total monthly mortgage
payment, including the first and any subordinate mortgage(s), cannot be greater than 31
percent of gross monthly income and total debt, including all recurring debts, cannot be
greater than 50 percent of gross monthly income;
10. FHA mortgagees are not permitted to use premium pricing to pay off existing debt
obligations to qualify the borrower for the new loan;
11. FHA mortgagees are not permitted to make mortgage payments on behalf of the borrower
or otherwise bring the existing loan current to make it eligible for FHA insurance; and
12. The existing loan to be refinanced may not have been brought current by the existing first
Lien holder, except through an acceptable permanent loan modification as described below.
The Mortgagee must ensure the existing first lien holder writes off at least 10% of unpaid principal on their current loan. The short payoff serves as payment in full and a full conveyance for the debt is completed. The new FHA loan can be no more than 97.75% of the unpaid principal balance of the first lien and any existing subordinate mortgages must be re-subordinated and not have a combined loan to value of more than 115%.
More information is available on the HUD website at; www.hud.gov
Quote For The Day
"If it were not for the company of fools, a witty man would often be greatly at a loss."
Francois De La Rochefoucauld
Francois De La Rochefoucauld
Tuesday, November 16, 2010
Quote For The Day
"Life affords no higher pleasure than that of surmounting difficulties, passing from one step of success to another, forming new wishes and seeing them gratified."
Samuel Johnson
Samuel Johnson
Market UpDate
Tuesday’s bond market has opened well in positive territory following the release of some quite favorable economic data. The stock markets have reacted as we would have expected, showing early losses. The Dow is currently down 130 points while the Nasdaq has fallen 24 points. The bond market is currently up 16/32, but unfortunately we will likely not see an improvement in this morning’s mortgage rates due to fairly significant weakness late yesterday. With yesterday’s late selling, I am expecting to see this morning’s mortgage rates to be approximately .375 of a discount point higher than yesterday’s morning rates.
Both of this morning’s economic releases gave us results that were extremely favorable to the bond market and mortgage rates. The first was October's Producer Price Index (PPI) that showed a 0.4% increase in the overall reading and a 0.6% DECLINE in the more important core reading. This was well below foreca sts for each, meaning that inflationary pressures were nowhere near as strong as many had thought, at least not at the producer level of the economy. This is extremely good news for the bond market and mortgage rates because inflation is the number one nemesis of the bond market. It erodes the value of a bond’s future fixed interest payments, making them much less attractive to investors. The end result is falling bond prices and higher mortgage rates.
Both of this morning’s economic releases gave us results that were extremely favorable to the bond market and mortgage rates. The first was October's Producer Price Index (PPI) that showed a 0.4% increase in the overall reading and a 0.6% DECLINE in the more important core reading. This was well below foreca sts for each, meaning that inflationary pressures were nowhere near as strong as many had thought, at least not at the producer level of the economy. This is extremely good news for the bond market and mortgage rates because inflation is the number one nemesis of the bond market. It erodes the value of a bond’s future fixed interest payments, making them much less attractive to investors. The end result is falling bond prices and higher mortgage rates.
Monday, November 15, 2010
Monday Morning Market UpDate
This week brings us the release of six monthly economic reports for the markets to digest. With very important data scheduled for release three different days and relevant data four of the five days, we will likely see a fair amount of volatility in the markets and mortgage pricing this week.
The first data is one of the most important reports of the week. The Commerce Department will give us October’s Retail Sales figures early tomorrow morning. This data measures consumer spending, which is considered extremely important because it makes up two-thirds of the U.S. economy. It is expected to show a 0.7% rise in spending, meaning consumers spent much more last month than they did in September. This would be considered negative news for bonds because large increases in spending fuels an economic recovery and raises inflation concerns in the marketplace. If tomorrow’s report reveals a smaller than expected increase in spending, bonds should react favorably, pushing mortgage rates lower. If it shows a larger than expected increase, mortgage rates will likely move higher tomorrow.
There are two reports scheduled to be posted Tuesday. The first is October's Producer Price Index (PPI) from the Labor Department, which is one of the two key inflation readings on tap this week. The PPI measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. If it reveals stronger than expected readings, indicating that inflationary pressures are rising, the bond market will probably react negatively and should drive mortgage rates higher. If we see in-line or weaker than expected numbers, mortgage rates should fall Tuesday. Current forecasts are calling for an increase of 0.8% in the overall reading and a 0.1% inc rease in the core reading.
Tuesday’s second report is October's Industrial Production data. It gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to reveal a 0.3% increase in production. Stronger levels of production would be considered bad news for the bond market and mortgage rates, but this data is not as important as the PPI readings are. A significant surprise in the PPI would likely make this data a non-factor in Tuesday’s mortgage pricing.
The first data is one of the most important reports of the week. The Commerce Department will give us October’s Retail Sales figures early tomorrow morning. This data measures consumer spending, which is considered extremely important because it makes up two-thirds of the U.S. economy. It is expected to show a 0.7% rise in spending, meaning consumers spent much more last month than they did in September. This would be considered negative news for bonds because large increases in spending fuels an economic recovery and raises inflation concerns in the marketplace. If tomorrow’s report reveals a smaller than expected increase in spending, bonds should react favorably, pushing mortgage rates lower. If it shows a larger than expected increase, mortgage rates will likely move higher tomorrow.
There are two reports scheduled to be posted Tuesday. The first is October's Producer Price Index (PPI) from the Labor Department, which is one of the two key inflation readings on tap this week. The PPI measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. If it reveals stronger than expected readings, indicating that inflationary pressures are rising, the bond market will probably react negatively and should drive mortgage rates higher. If we see in-line or weaker than expected numbers, mortgage rates should fall Tuesday. Current forecasts are calling for an increase of 0.8% in the overall reading and a 0.1% inc rease in the core reading.
Tuesday’s second report is October's Industrial Production data. It gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to reveal a 0.3% increase in production. Stronger levels of production would be considered bad news for the bond market and mortgage rates, but this data is not as important as the PPI readings are. A significant surprise in the PPI would likely make this data a non-factor in Tuesday’s mortgage pricing.
Monday, October 25, 2010
Monday Market UpDate
Monday's bond market has opened in positive territory despite stronger than expected housing data and early stock strength. The stock markets are reacting favorably to the data, pushing the Dow up 70 points and the Nasdaq up 15 points. The bond market is currently up 10/32, which should improve this morning's mortgage rates by approximately .125 of a discount point
The National Association of Realtors said late this morning that sales of existing homes rose approximately 10% last month. This was much stronger than many had expected, indicating that the housing sector was not as bad as thought. That is basically bad news for the bond market but bond traders don't appear to be too concerned with it.
The rest of the week brings us the release of six more economic reports and two relevant Treasury auctions for the bond market to digest. October's Consumer Confidence Index (CCI) is tomorrow's only news. This Conference Board index will be released at 10:00 AM ET. It gives us a measurement of consumer willingness to spend and is expected to show a small increase in confidence from last month's 48.5 reading. That would mean that consumers felt a little better about their own financial situations than last month, indicating they are more likely to make large purchases in the near future. As long as the reading doesn't exceed the forecasted 49.0, we will likely see the bond market react favorably to this report. This data is watched closely because consumer spending makes up two-thirds of the U.S. economy.
Overall, we likely have an active few days ahead of us. I believe that the single most important day will probably end up being Friday with the extremely important GDP release in the morning and three reports on the day. It is difficult to label any day as the least important with all having something scheduled that has the potential to change rates. Accordingly, I strongly recommend maintaining contact with your mortgage professional this week, especially if still floating an interest rate.
The National Association of Realtors said late this morning that sales of existing homes rose approximately 10% last month. This was much stronger than many had expected, indicating that the housing sector was not as bad as thought. That is basically bad news for the bond market but bond traders don't appear to be too concerned with it.
The rest of the week brings us the release of six more economic reports and two relevant Treasury auctions for the bond market to digest. October's Consumer Confidence Index (CCI) is tomorrow's only news. This Conference Board index will be released at 10:00 AM ET. It gives us a measurement of consumer willingness to spend and is expected to show a small increase in confidence from last month's 48.5 reading. That would mean that consumers felt a little better about their own financial situations than last month, indicating they are more likely to make large purchases in the near future. As long as the reading doesn't exceed the forecasted 49.0, we will likely see the bond market react favorably to this report. This data is watched closely because consumer spending makes up two-thirds of the U.S. economy.
Overall, we likely have an active few days ahead of us. I believe that the single most important day will probably end up being Friday with the extremely important GDP release in the morning and three reports on the day. It is difficult to label any day as the least important with all having something scheduled that has the potential to change rates. Accordingly, I strongly recommend maintaining contact with your mortgage professional this week, especially if still floating an interest rate.
Friday, October 22, 2010
Friday's Market UpDate
Friday's bond market has opened fairly flat following a mixed open in the stock markets. The Dow is showing a 17-point loss while the Nasdaq has gained 13 points. The bond market is nearly unchanged from yesterday's close, meaning we should see little change in this morning's mortgage rates.
There is no relevant economic data scheduled for release today, so we should be looking towards the stock markets for guidance on bond trading. If the major stock indexes move upward from current levels, we may see some pressure in bonds that could lead to a small increase to mortgage pricing this afternoon. If stocks head lower during afternoon trading, we could see an improvement to mortgage rates later today.
Next week brings us the release of a handful of economic reports that have the potential to affect mortgage rates, including the extremely important initial reading of the 3rd Quarter Gross Domestic Product. There ar e also two Treasury auctions that may influence bond market sentiment and lead to changes to mortgage rates in the middle of the week.
There is no relevant economic data scheduled for release today, so we should be looking towards the stock markets for guidance on bond trading. If the major stock indexes move upward from current levels, we may see some pressure in bonds that could lead to a small increase to mortgage pricing this afternoon. If stocks head lower during afternoon trading, we could see an improvement to mortgage rates later today.
Next week brings us the release of a handful of economic reports that have the potential to affect mortgage rates, including the extremely important initial reading of the 3rd Quarter Gross Domestic Product. There ar e also two Treasury auctions that may influence bond market sentiment and lead to changes to mortgage rates in the middle of the week.
Friday, October 15, 2010
Friday's Market UpDate
Friday's bond market has opened in negative territory as yesterday afternoon's selling extends into this morning's trading. The stock markets are mixed with the Dow down 25 points and the Nasdaq up 17 points. The bond market is currently down 6/32, which will likely push this morning's mortgage rates higher by approximately .125 - .250 of a discount point.
Today's economic data came in favorable for the most part, but one the more important reports we see each month showed stronger than expected results. The bad news came in the Commerce Department's Retail Sales report for September that measures consumer spending. It showed a 0.6% increase in retail levels sales, exceeding analysts' forecast of a 0.4% rise. Today's release also revised sales from up 0.4% to up 0.7%, indicating that consumers spent more in August and September than many had thought. This is bad news for the bond market and mortgage rates because consumer spending makes up two-thirds of t he U.S. economy. Consumers spending more money each month fuels economic growth that makes long-term securities such as mortgage bonds less attractive to investors.
Today's economic data came in favorable for the most part, but one the more important reports we see each month showed stronger than expected results. The bad news came in the Commerce Department's Retail Sales report for September that measures consumer spending. It showed a 0.6% increase in retail levels sales, exceeding analysts' forecast of a 0.4% rise. Today's release also revised sales from up 0.4% to up 0.7%, indicating that consumers spent more in August and September than many had thought. This is bad news for the bond market and mortgage rates because consumer spending makes up two-thirds of t he U.S. economy. Consumers spending more money each month fuels economic growth that makes long-term securities such as mortgage bonds less attractive to investors.
Tuesday, October 12, 2010
Market UpDate
Tuesday's bond market has opened in positive territory following early weakness in stocks. The stock markets are starting this holiday-shortened week in negative ground with the Dow down 50 points and the Nasdaq down 8 points. The bond market is currently up 6/32, which should improve this morning's mortgage rates by approximately .125 of a discount point from Friday's morning pricing.
There was no relevant economic data posted this morning, but we do have something of interest being released this afternoon. The Fed will release the minutes from their last FOMC meeting at 2:00 PM ET today. These have the potential to be a major mover of the markets or could be a non-factor, depending on what they say. The key will be concerns over inflation and the Fed's next move. If Fed members were concerned about inflationary pressures, we may see the bond market move lower and mortgage rates higher tomorrow afternoon. However, if they repeat recent comments and stateme nts that inflation is not of much concern and that there is still considerable concern about the economy, we should see little reaction in mortgage rates or a small improvement. Also worth watching is any discussion about the Fed getting more involved with purchasing government or mortgage debt. Any indication of them making more purchases should be taken as very good news for mortgage rates and will likely lead to lower rates this afternoon.
There was no relevant economic data posted this morning, but we do have something of interest being released this afternoon. The Fed will release the minutes from their last FOMC meeting at 2:00 PM ET today. These have the potential to be a major mover of the markets or could be a non-factor, depending on what they say. The key will be concerns over inflation and the Fed's next move. If Fed members were concerned about inflationary pressures, we may see the bond market move lower and mortgage rates higher tomorrow afternoon. However, if they repeat recent comments and stateme nts that inflation is not of much concern and that there is still considerable concern about the economy, we should see little reaction in mortgage rates or a small improvement. Also worth watching is any discussion about the Fed getting more involved with purchasing government or mortgage debt. Any indication of them making more purchases should be taken as very good news for mortgage rates and will likely lead to lower rates this afternoon.
Quote For The Day
"To put the world right in order, we must first put the nation in order; to put the nation in order, we must first put the family in order; to put the family in order, we must first cultivate our personal life; we must first set our hearts right."
Confucius
Confucius
Monday, October 11, 2010
Monday Morning Market UpDate
The lack of job creation was highlighted again last week with the monthly employment numbers from the Labor Department. While 64,000 new jobs were created by private firms, the growth was not enough to offset the job losses in government jobs at both the Federal and state levels. Last month,
the economy lost 95,000 jobs, and mortgage rates slipped slightly downward in response. While
much of the economic news for the week was not all that positive, the ISM Services Index did manage
to come in with an increase, when no significant change was expected.
This week, we’ll get another glimpse into inflation, or the lack thereof, and retail sales. With GDP
running below 2%, inflationary pressures are likely to remain very muted. Both the Producer and
Consumer Price Indices are released this week. Readings at expectations will help hold rates low.
Retail sales data is also due this week, with an increase of 0.4% expected. If we see sales pull back
rather than grow, we could see mortgage rates moving downward some as the week ends.
the economy lost 95,000 jobs, and mortgage rates slipped slightly downward in response. While
much of the economic news for the week was not all that positive, the ISM Services Index did manage
to come in with an increase, when no significant change was expected.
This week, we’ll get another glimpse into inflation, or the lack thereof, and retail sales. With GDP
running below 2%, inflationary pressures are likely to remain very muted. Both the Producer and
Consumer Price Indices are released this week. Readings at expectations will help hold rates low.
Retail sales data is also due this week, with an increase of 0.4% expected. If we see sales pull back
rather than grow, we could see mortgage rates moving downward some as the week ends.
Sunday, October 10, 2010
Wonderful Gift of Aloha
My birthday this year will go down as one of my best. My sister’s are here visiting and treated me all day to a great lunch at Haleiwa’s Joes and shopping then we went to a Luau at Paradise Cove, because you haven’t been to Hawaii unless to see and enjoy the local food, dance and culture of a luau. I especially enjoy the Hula dancers and Samoan fire dancer, oh yeah! Thank you sis’ters for a wonderful and very special day and a big Mahalo to all of you on FB who wrote on my wall and wished me a Happy Birthday.
Friday, October 8, 2010
Friday's Market UpDate
Friday's bond market has opened in positive territory after this morning's employment data gave us favorable results. The stock markets have actually had little reaction to the news with the Dow and Nasdaq mixed from yesterday's close. The Dow is currently up 10 points while the Nasdaq has slipped 4 points. The bond market is currently up 9/32, which should improve this morning's mortgage rates by approximately .125 of a discount point.
The Labor Department gave us September's Employment report this morning. It showed that the unemployment rate remained at 9.6% last month and that 94,000 jobs were lost during the month. The unemployment rate was slightly below forecasts but the payroll number was much weaker than analysts had expected. They were calling for no change in the number of payrolls from August's level, meaning the employment sector was weaker than expected. This is very good news for the bond market and mortgage rates.
The third reading that is watched also gave us favorable results. It showed that average hourly earnings were unchanged from August when it was expected to rise 0.1%. Rising earnings give consumers more money to spend, fueling economic activity. Therefore, the weaker than expected reading is also good news for bonds and mortgage pricing.
Next week brings us an abundance of economic data along with two relevant Treasury auctions and the minutes from the past FOMC meeting. There is nothing of importance scheduled for Monday, but the rest of the week is packed with data and related events. Look for more details on next week's calendar in Sunday's weekly preview.
The Labor Department gave us September's Employment report this morning. It showed that the unemployment rate remained at 9.6% last month and that 94,000 jobs were lost during the month. The unemployment rate was slightly below forecasts but the payroll number was much weaker than analysts had expected. They were calling for no change in the number of payrolls from August's level, meaning the employment sector was weaker than expected. This is very good news for the bond market and mortgage rates.
The third reading that is watched also gave us favorable results. It showed that average hourly earnings were unchanged from August when it was expected to rise 0.1%. Rising earnings give consumers more money to spend, fueling economic activity. Therefore, the weaker than expected reading is also good news for bonds and mortgage pricing.
Next week brings us an abundance of economic data along with two relevant Treasury auctions and the minutes from the past FOMC meeting. There is nothing of importance scheduled for Monday, but the rest of the week is packed with data and related events. Look for more details on next week's calendar in Sunday's weekly preview.
Wednesday, October 6, 2010
Market UpDate
Wednesday's bond market has opened in positive territory with the stock markets mixed and no important economic data scheduled for release today. The stock markets have failed to extend yesterday's rally, leaving the Dow up 12 points and the Nasdaq down 11 points. The bond market is currently up 9/32, which should improve this morning's mortgage rates by approximately .125 - .250 of a discount point.
With no relevant data being posted today, look for the stock markets to influence bond trading and mortgage rates the rest of the day. I suspect we will see a relatively calm afternoon in the bond market and little chance of a change to mortgage pricing.
Tomorrow's only data is last week's unemployment numbers. The Labor Department will post them early tomorrow morning. Since this weekly report tracks only a single week's worth of new claims, its impact on the markets and mortgage rates is usually minimal. There is a possibility of seeing mortgage r ates react to the news since it is the day's only release and the major monthly report will be posted Friday. Analysts are expecting tomorrow's release to show that 455,000 new claims for unemployment benefits were filed last week. The larger the number, the better the news for the bond market and mortgage rates.
With no relevant data being posted today, look for the stock markets to influence bond trading and mortgage rates the rest of the day. I suspect we will see a relatively calm afternoon in the bond market and little chance of a change to mortgage pricing.
Tomorrow's only data is last week's unemployment numbers. The Labor Department will post them early tomorrow morning. Since this weekly report tracks only a single week's worth of new claims, its impact on the markets and mortgage rates is usually minimal. There is a possibility of seeing mortgage r ates react to the news since it is the day's only release and the major monthly report will be posted Friday. Analysts are expecting tomorrow's release to show that 455,000 new claims for unemployment benefits were filed last week. The larger the number, the better the news for the bond market and mortgage rates.
Quote For The Day
The angel of the Family is Woman. Mother, wife, or sister, Woman is the caress of life, the soothing sweetness of affection shed over its toils, a reflection for the individual of the loving providence which watches over Humanity. In her there is treasure enough of consoling tenderness to allay every pain. Moreover for every one of us she is the initiator of the future. The mother's first kiss teaches the child love; the first holy kiss of the woman he loves teaches man hope and faith in life; and love and faith create a desire for perfection and the power of reaching towards it step by step; create the future, in short, of which the living symbol is the child, link between us and the generations to come. Through her the Family, with its divine mystery of reproduction, points to Eternity.
Giuseppe Mazzini
Giuseppe Mazzini
Tuesday, October 5, 2010
Market UpDate
Tuesday's bond market has opened relatively flat despite strong stock gains. The stock markets are showing gains after overseas markets rallied last night, pushing the Dow higher by 127 points and the Nasdaq higher by 40 points. The bond market is currently up 2/32, which will likely keep this morning's mortgage rates near yesterday's levels.
There was no important economic data posted this morning. The only data that was posted was irrelevant to the mortgage market and has not impacted mortgage rates. The same goes for tomorrow, leaving the stock markets to influence bond trading and mortgage rates. Bonds have held up well this morning considered the rally in stocks, but if the major indexes move higher we may see upward revisions to mortgage rates this afternoon.
There was no important economic data posted this morning. The only data that was posted was irrelevant to the mortgage market and has not impacted mortgage rates. The same goes for tomorrow, leaving the stock markets to influence bond trading and mortgage rates. Bonds have held up well this morning considered the rally in stocks, but if the major indexes move higher we may see upward revisions to mortgage rates this afternoon.
Quote For The Day
We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love... and then we return home.
Australian Aboriginal Proverb
Australian Aboriginal Proverb
Sunday, October 3, 2010
Cell Phone Etiquette
While sitting having my morning tea at Starbucks I am force to listen to a conversation another moron is having with a family member about his mother’s illness all this loud talking is over the music piped in for our enjoyment, right like I could even hear it.. . Has everyone lost their since of politeness or are we all wrapped up in our own self involvement. First of all why would anyone want to talk about mom’s illness and personal medication and doctors in front of 25 people in Starbucks? But loud talking people on cell phone is quite disturbing anywhere. Oh and what’s up with the person on a plane who has to immediately turn on their phone and call someone before you even get out of the plane, allow everyone on the plane to hear their conversation.. I know I don’t want to hear it. What is so dam important it can’t wait until you can talk in private so you don’t disturb everyone but it’s so abundantly clear no one cares about the person sitting next to them or for that matter people nearby…. I don’t know what the answer is but we are really becoming a society of impolite detached people. So put your phones away talk to the person next to you instead and smile every once in a while.
Friday, October 1, 2010
Friday Market UpDate
Friday's bond market opened in negative territory after some of this morning's economic data revealed stronger than expected activity. The stock markets are also contributing to the bond weakness with gains of 64 points in the Dow and 15 points in the Nasdaq. The stock market is currently down 11/32, but we should still see a slight improvement in this morning's mortgage rates due to strength during trading late yesterday.
August's Personal Income and Outlays data was released early this morning. It showed that personal income rose 0.5% last month while spending rose 0.4%. Both of these readings were larger increases than what analysts had forecast, making them negative news for the bond market and mortgage rates. The data indicates that consumers had more money available to spend and spent more than what many market participants had thought. This fuels economic activity, making long-term securities such as mortgage bonds less attractive to investor
August's Personal Income and Outlays data was released early this morning. It showed that personal income rose 0.5% last month while spending rose 0.4%. Both of these readings were larger increases than what analysts had forecast, making them negative news for the bond market and mortgage rates. The data indicates that consumers had more money available to spend and spent more than what many market participants had thought. This fuels economic activity, making long-term securities such as mortgage bonds less attractive to investor
Thursday, September 23, 2010
Quote For The Day
The will to win, the desire to succeed, the urge to reach your full potential... these are the keys that will unlock the door to personal excellence.
Eddie Robinson
Eddie Robinson
Market UpDate
Thursday's bond market has opened in positive territory again despite some stronger than expected economic data. The stock markets mixed but calm with the Dow down 13 points and the Nasdaq up 9 points. The bond market is currently up 9/32, but we will likely still see a slight increase in this morning's mortgage rates due to some selling during late afternoon trading yesterday.
Two of today's three releases gave us stronger than expected results. The one that was favorable for bonds was last week's unemployment figures from the Labor Department. They reported that 465,000 new claims for unemployment benefits were filed last week. This was a noticeable increase when analysts were expecting a small decline in claims, indicating that the employment sector was weaker than thought last week. That is good news for the bond market and mortgage rates because unemployment has been a key issue regarding the economy. If it remains weak, a broader economic recovery is not likely.
The Conference Board posted their Leading Economic Indicators (LEI) for August late this morning. They announced a 0.3% increase in the index, meaning it is predicting a modest increase in economic activity over the next several months. Analysts had forecasted a 0.1% increase, so the stronger reading is considered negative for bonds. However, this is not a government agency report, so it is only moderately important to the markets. The size of the variance was not enough to cause much alarm in the bond market, preventing a negative reaction to the report.
August's Existing Home Sales report was the third report of the day. The National Association of Realtors reported that home resales rose 7.6% last month, exceeding forecasts. The markets were expecting to see a smaller increase in sales, which means that the housing sector was a little stronger than thought last month. That is also considered bad news for bonds and mortgage rates , however, this report is not considered to be highly important so its impact on bond trading and rates has been minimal...
Two of today's three releases gave us stronger than expected results. The one that was favorable for bonds was last week's unemployment figures from the Labor Department. They reported that 465,000 new claims for unemployment benefits were filed last week. This was a noticeable increase when analysts were expecting a small decline in claims, indicating that the employment sector was weaker than thought last week. That is good news for the bond market and mortgage rates because unemployment has been a key issue regarding the economy. If it remains weak, a broader economic recovery is not likely.
The Conference Board posted their Leading Economic Indicators (LEI) for August late this morning. They announced a 0.3% increase in the index, meaning it is predicting a modest increase in economic activity over the next several months. Analysts had forecasted a 0.1% increase, so the stronger reading is considered negative for bonds. However, this is not a government agency report, so it is only moderately important to the markets. The size of the variance was not enough to cause much alarm in the bond market, preventing a negative reaction to the report.
August's Existing Home Sales report was the third report of the day. The National Association of Realtors reported that home resales rose 7.6% last month, exceeding forecasts. The markets were expecting to see a smaller increase in sales, which means that the housing sector was a little stronger than thought last month. That is also considered bad news for bonds and mortgage rates , however, this report is not considered to be highly important so its impact on bond trading and rates has been minimal...
Sunday, September 19, 2010
This Weeks Market UpDate
This week brings us the release of five relevant economic reports in addition to another FOMC meeting. Only one of the factual reports is considered to be of high importance. In fact, most of the economic news is considered to be low or moderately important. This should help limit the possibility of significant changes to mortgage rates most days this week.
August's Housing Starts will kick-off the week's data early Tuesday morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand by tracking construction starts of new homes, but is usually considered to be of low importance to the financial and mortgage markets. It is expected to show a slight increase in new home starts between July and August. I believe we need to see a significant surprise in this data for it to have an impact on mortgage rates.
The FOMC meeting is Tuesday and is a one-day meeting. Mr. Bernanke and friends will adjourn at 2:15 PM ET. There is little possibility of seeing any type of change to key short-term interest rates. However, the post-meeting statement could very well lead to volatility during afternoon trading as investors dissect it in an effort to find when the Fed's next move may come. The wild card is how the markets react to the statement because the lack of a change to key short-term interest rates shouldn't affect afternoon trading. If we see significant weakness in stocks, the bond market may benefit as a safe-haven from the volatility. This could lead to lower mortgage rates Tuesday afternoon and Wednesday morning.
August's Housing Starts will kick-off the week's data early Tuesday morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand by tracking construction starts of new homes, but is usually considered to be of low importance to the financial and mortgage markets. It is expected to show a slight increase in new home starts between July and August. I believe we need to see a significant surprise in this data for it to have an impact on mortgage rates.
The FOMC meeting is Tuesday and is a one-day meeting. Mr. Bernanke and friends will adjourn at 2:15 PM ET. There is little possibility of seeing any type of change to key short-term interest rates. However, the post-meeting statement could very well lead to volatility during afternoon trading as investors dissect it in an effort to find when the Fed's next move may come. The wild card is how the markets react to the statement because the lack of a change to key short-term interest rates shouldn't affect afternoon trading. If we see significant weakness in stocks, the bond market may benefit as a safe-haven from the volatility. This could lead to lower mortgage rates Tuesday afternoon and Wednesday morning.
Saturday, September 18, 2010
How To Determine If Your Grandma or Grandpa should be in an Old Folk Home
During a visit to my doctor, I asked him, "How do you determine whether or not an older person should be put in an old age home?" 
"Well," he said, "we fill up a bathtub, then we offer a teaspoon, a teacup and a bucket to the person to empty the bathtub." "Oh, I understand," I said. "A normal person would use the bucket because it is bigger than the spoon or the teacup."
"No" he said. "A normal person would pull the plug. Do you want
a bed near the window?"
I couldn't resist posting these fun pics, hope you are smiling....
Friday, September 17, 2010
Quote For The Day
May your troubles be less...May you blessings be more and may nothing but happiness come thru your door.
Source is unknown
Source is unknown
Thursday, September 16, 2010
Hawaii Shark Encounters
They anchor a large cage in about 600ft deep ocean, the cage holds 6 adults very comfortably, this steel cage is penalty big enough and open on the top, you will feel secure as you fearlessly look at these massive beautiful creatures up close. The cage sits on the surface so all you need is a snorkel to enjoy this adventure.
Galapagos sharks up to 10ft and 400lbs and Sandbar sharks 4 – 6ft are the most common sharks seen. These species are rarely implicated in attacks on humans.
This tour and ones similar have come under much scrutiny by local residence and Politian’s. There is concern that attracting sharks will lead them closer to shore and endanger swimmers, surfer and water goers close to shore. Studies have been completed however showing this is not happening.
You can find more information about the study and the tour at http://www.hawaiisharkencounters.com/
This is an amazing tour and adventure, don’t miss it!
Quote For The Day
There isn't any symbolism. The sea is the sea. The old man is an old man. The boy is a boy and the fish is a fish. The shark are all sharks no better and no worse. All the symbolism that people say is shit. What goes beyond is what you see beyond when you know.
Ernest Hemingway
1898-1961, American Writer
Ernest Hemingway
1898-1961, American Writer
Wednesday, September 15, 2010
Quote For The Day
All endeavor calls for the ability to tramp the last mile, shape the last plan, endure the last hours toil. The fight to the finish spirit is the one...characteristic we must posses if we are to face the future as finishers.
Source Unknown
Source Unknown
Market Update
Wednesday's bond market has opened fairly flat with stocks showing little movement and the day's only economic data failed to reveal a significant surprise. The stock markets are showing minor gains with the Dow up 14 points and the Nasdaq up a single point. The bond market is currently up only 2/32, but we will likely see a slight improvement in this morning's mortgage rates due to strength late yesterday.
Today's only relevant data was August's Industrial Production. It showed a 0.2% increase in output at U.S. factories, mines and utilities. This was slightly below the 0.3% that was expected, indicating manufacturing activity was weaker than thought. However, since this data is considered to be of only moderate importance to the markets, its impact on trading and mortgage rates has been minimal. It usually takes a wide variance from forecasts for this report to have a noticeable influence on rates.
Tomorrow morning brings us the release of an important inflation reading that is likely to affect the markets and mortgage pricing. The Labor Department will give us August's Producer Price Index (PPI) early tomorrow morning. It measures inflationary pressures at the producer level of the economy. The overall reading is expected to show a 0.3% increase, while the more important core data reading is expected to rise only 0.1%. The core data is the more important of the two since it excludes more volatile food and energy prices, giving us a more stable snapshot of inflation at the producer level. Larger than expected readings would be bad news for bonds and mortgage rates because inflation is the number one nemesis of the bond market. It erodes the value of a bond's future fixed interest payments, causing bonds to be sold at a discount to offset that loss. As bond prices fall, their yields move higher and mortgage rates follow bond yield trends.
Today's only relevant data was August's Industrial Production. It showed a 0.2% increase in output at U.S. factories, mines and utilities. This was slightly below the 0.3% that was expected, indicating manufacturing activity was weaker than thought. However, since this data is considered to be of only moderate importance to the markets, its impact on trading and mortgage rates has been minimal. It usually takes a wide variance from forecasts for this report to have a noticeable influence on rates.
Tomorrow morning brings us the release of an important inflation reading that is likely to affect the markets and mortgage pricing. The Labor Department will give us August's Producer Price Index (PPI) early tomorrow morning. It measures inflationary pressures at the producer level of the economy. The overall reading is expected to show a 0.3% increase, while the more important core data reading is expected to rise only 0.1%. The core data is the more important of the two since it excludes more volatile food and energy prices, giving us a more stable snapshot of inflation at the producer level. Larger than expected readings would be bad news for bonds and mortgage rates because inflation is the number one nemesis of the bond market. It erodes the value of a bond's future fixed interest payments, causing bonds to be sold at a discount to offset that loss. As bond prices fall, their yields move higher and mortgage rates follow bond yield trends.
Monday, September 13, 2010
Quote For The Day
We tend to forget that happiness doesn't come as a result of getting something we don't have, but rather of recognizing and appreciating what we do have.
Frederick Koenig
Frederick Koenig
Monday Morning Market UpDate
Monday's bond market has opened in positive territory despite a fairly strong open in stocks. The stock markets are kicking the week off with the Dow up 94 points and the Nasdaq up 33 points. The bond market is currently up 8/32, which should improve this morning's mortgage rates by approximately .250 of a discount point over Friday's morning pricing.
There is no relevant economic data scheduled for release, but the rest of the week is fairly busy. Look for the stock markets to be the likely force behind any changes to mortgage rates later today. If the major stock indexes move higher from this morning's levels, mortgage rates will likely follow suit.
Tomorrow's sole report is one of the more important ones of the week. August's Retail Sales report will be posted at 8:30 AM ET tomorrow morning. It will give us a very important measurement of consumer spending, which is extremely relevant to the markets because it makes up two-thirds of the U. S. economy. Current forecasts are calling for a 0.3% increase in sales. Analysts are also calling for a 0.3% rise in sales if more volatile auto sales are excluded. Larger than expected increases would be considered bad news for bonds and likely lead to an increase in mortgage pricing since it would indicate economic growth.
Overall, look for the most single day movement in rates tomorrow or Friday. Thursday will also be an active day for the mortgage market, so we should be prepared to see changes to mortgage rates several days this week. I would strongly recommend maintaining contact with your mortgage professional if still floating an interest rate.
There is no relevant economic data scheduled for release, but the rest of the week is fairly busy. Look for the stock markets to be the likely force behind any changes to mortgage rates later today. If the major stock indexes move higher from this morning's levels, mortgage rates will likely follow suit.
Tomorrow's sole report is one of the more important ones of the week. August's Retail Sales report will be posted at 8:30 AM ET tomorrow morning. It will give us a very important measurement of consumer spending, which is extremely relevant to the markets because it makes up two-thirds of the U. S. economy. Current forecasts are calling for a 0.3% increase in sales. Analysts are also calling for a 0.3% rise in sales if more volatile auto sales are excluded. Larger than expected increases would be considered bad news for bonds and likely lead to an increase in mortgage pricing since it would indicate economic growth.
Overall, look for the most single day movement in rates tomorrow or Friday. Thursday will also be an active day for the mortgage market, so we should be prepared to see changes to mortgage rates several days this week. I would strongly recommend maintaining contact with your mortgage professional if still floating an interest rate.
Thursday, September 9, 2010
Foreclosure Alternatives – Do YOU Qualify for a Loan Modification?
If you are facing foreclosure or are having a difficult time making your mortgage payments or will be in the foreseeable future then this information will help you with several alternatives. First it’s very important to be PRO-ACTIVE with your mortgage solution. Don’t bury your head in the sand, ignoring your situation will only help you lose your home. So let’s get busy and save your home!
There are several programs to help you and all you need to do is apply and provide the needed documents to get started. First and foremost these programs are FREE, don’t pay anyone a Fee to get what is rightly yours at NO Cost. YOU can do this!
Home Affordable Refinancing – This is for homeowners who are making their mortgage payments on time but are not able to take advantage of our current low rates due to the decrease in value of their home. If your loan is held by Fannie Mae or Freddie Mac you should be able to refinance with this program.
Home Affordable Modification – This is for struggling homeowners who have had rate adjustments or have suffered a loss of income. A Modification can lower their mortgage payments. This will change the overall terms on your loan and add any missed payment to the end of your loan increasing your term but lowering your payment sometimes on a graduate payment plan to help you get back on your feet.
Second Lien Modification Program (2MP) - If you have a 2nd lien and are applying for a modification on your 1st lien this program will also help lower the payments on your second lien.
Home Affordable Foreclosure Alternatives – This program offers homeowners $3000 to help transition to a more affordable home if they cannot afford their mortgage. They can avoid the negative effects of foreclosure if they cooperate with a short sale or deed –in-lieu of foreclosure.
There are other program available that are not listed a new one for people who are unemployed, stay tuned as I will be posting information about more programs.
You can get all the information about these programs and more at;
Making Home Affordable
HUD Avoid Foreclosure
There are several programs to help you and all you need to do is apply and provide the needed documents to get started. First and foremost these programs are FREE, don’t pay anyone a Fee to get what is rightly yours at NO Cost. YOU can do this!
Home Affordable Refinancing – This is for homeowners who are making their mortgage payments on time but are not able to take advantage of our current low rates due to the decrease in value of their home. If your loan is held by Fannie Mae or Freddie Mac you should be able to refinance with this program.
Home Affordable Modification – This is for struggling homeowners who have had rate adjustments or have suffered a loss of income. A Modification can lower their mortgage payments. This will change the overall terms on your loan and add any missed payment to the end of your loan increasing your term but lowering your payment sometimes on a graduate payment plan to help you get back on your feet.
Second Lien Modification Program (2MP) - If you have a 2nd lien and are applying for a modification on your 1st lien this program will also help lower the payments on your second lien.
Home Affordable Foreclosure Alternatives – This program offers homeowners $3000 to help transition to a more affordable home if they cannot afford their mortgage. They can avoid the negative effects of foreclosure if they cooperate with a short sale or deed –in-lieu of foreclosure.
There are other program available that are not listed a new one for people who are unemployed, stay tuned as I will be posting information about more programs.
You can get all the information about these programs and more at;
Making Home Affordable
HUD Avoid Foreclosure
Quote For The Day (Hope)
Though you are disappointed is hope; never let hope fail you! Though one door is shut, there are thousands still open to you.
Ruckett
Ruckett
Wednesday, September 8, 2010
Quote For The Day
May the sun always shine on your windowpane; May a rainbow be certain to follow each rain; May the hand of a friend always be near you; May God fill your heart with gladness to cheer you.
Irish Blessing
Irish Blessing
What The Credit Bureaus Don't Want YOU to Know Part II
I’d like to talk about ID theft and how it happens. Over time the credit reporting system accumulates personal information on an individual like your name, address, employers and social security number. When a SS number is associated with more than one name a sub file is created. This happens because credit reporting agencies allow for partial matching of personal information. With this inability to distinguish between fraudulent and normal variations and the consumer’s lack of expertise to identify and eliminate these variations allows the groundwork for loopholes that perpetuate a clear path for identity theft.
The ID thieves creates a combination of true and false personal information. This is referred to as Synthetic Identity Fraud. This sub file is not associated with the consumer’s main file and is not detected. A couple of commonly overlooked variations is the misspelling of a name. This would be considered a low priority as it has no real bearing on the consumers credit score so they only concentrate on those items which affect their scores. Only when credit is denied will the consumer be aware of the sub file. Most consumers lack the knowledge on how to read their report so errors will appear to be within acceptable limits.
The credit reporting agencies bear no cost of this crime. Again it is the consumer who comes out on the short end of this deal. The creditor also pay the price as the ID thieves do not pay the bills on credit obtained by fraud. The credit reporting agencies say there are safeguards in place and claim to offer remedies but they are nothing but smoke and mirrors.
Fixing these errors and mistakes are left up to the consumer. This is no small challenge as the consumer is the last consideration in the credit reporting process. Even with FCRA numerous watchdog groups and attorneys ready to take on the BIG 3 credit reporting agencies. They are not going to change the way our data is stored so as consumers we have to protect ourselves from ID theft and that is easier said than done. I help consumer keep a watchful eye on their credit report companies that monitor your credit for activity is recommended. Most charge a low monthly fee between $10 and $20 dollars per month and allow you to see your full report a few times a year.
If you go to Top 5 Credit Monitoring Companies and Reviews for Each
you will be able to determine which best fits your needs and budget.
The ID thieves creates a combination of true and false personal information. This is referred to as Synthetic Identity Fraud. This sub file is not associated with the consumer’s main file and is not detected. A couple of commonly overlooked variations is the misspelling of a name. This would be considered a low priority as it has no real bearing on the consumers credit score so they only concentrate on those items which affect their scores. Only when credit is denied will the consumer be aware of the sub file. Most consumers lack the knowledge on how to read their report so errors will appear to be within acceptable limits.
The credit reporting agencies bear no cost of this crime. Again it is the consumer who comes out on the short end of this deal. The creditor also pay the price as the ID thieves do not pay the bills on credit obtained by fraud. The credit reporting agencies say there are safeguards in place and claim to offer remedies but they are nothing but smoke and mirrors.
Fixing these errors and mistakes are left up to the consumer. This is no small challenge as the consumer is the last consideration in the credit reporting process. Even with FCRA numerous watchdog groups and attorneys ready to take on the BIG 3 credit reporting agencies. They are not going to change the way our data is stored so as consumers we have to protect ourselves from ID theft and that is easier said than done. I help consumer keep a watchful eye on their credit report companies that monitor your credit for activity is recommended. Most charge a low monthly fee between $10 and $20 dollars per month and allow you to see your full report a few times a year.
If you go to Top 5 Credit Monitoring Companies and Reviews for Each
you will be able to determine which best fits your needs and budget.
Monday, September 6, 2010
Chicken Cheese Enchilada Chowder
1 can of chicken breast meat OR
½ Roasted or Boiled chicken boned.
1 15-ounce can of black beans
1 can of corn or ½ of frozen corn
1 cup of chicken broth
¼ cup of chopped yellow, green or red sweet pepper
1 small fresh jalapeno Chile pepper, seeded and finely chopped
1 can of condensed cream of chicken soup
1 10 ounce can enchilada sauce RED
¾ cup of milk
1 cup of shredded Mexican blend cheeses
1 medium tomato, chopped
Sour cream, guacamole and tortilla round out this meal but are optional.
1. In a large slow cooker combine chicken, beans, corn, onion, sweet pepper, and jalapeno pepper. In a separate bowl mix together the soup and enchilada sauce. Stir in milk until smooth. Then pour mixture in cooker.
2. Cover and cook on low-heat setting for 6 to 8 hours or on high for 3 to 4 hours.
3. When done add in cheese a tomato. Top if you want with the sour cream, avocado or guacamole and tortilla chips.
Makes about 4 servings – Enjoy!
Quote of the Day (Labor)
I believe in the dignity of labor, whether with head or hand; that the world owes no man a living but that it owes every man an opportunity to make a living.
John D. Rockefeller
1839-1937, American Industrialist, Philanthropist, Founder Exxon
John D. Rockefeller
1839-1937, American Industrialist, Philanthropist, Founder Exxon
Market Update
This week brings us the release of only two pieces of economic data, but neither of them are considered to be highly important. In addition to the economic releases, we also have two Treasury auctions that may play a role in this week's mortgage pricing. The financial and mortgage markets will closed Monday in observance of the Labor Day holiday, meaning we will not see new mortgage rates until Tuesday morning.
The first release of the week comes Wednesday afternoon. The Federal Reserve will release its Beige Book report at 2:00 PM ET Wednesday. This report details current economic conditions in the U.S. by Federal Reserve regions. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed's next move. Most likely thou gh, it will be a non-event and will not lead to a noticeable change in mortgage rates.
Also Wednesday is a 10-year Treasury Note auction, which will be followed by a 30-year Bond auction Thursday. It is fairly common to see some weakness in bonds before these sales as investors prepare for them. If the sales are met with a decent demand from investors, indicating interest in longer-term securities such as mortgage-related bonds still exists, the earlier losses are usually recovered after the results are announced. The results of the sales will be posted at 1:00 PM ET each day. If demand was strong, particularly from international investors, we should see mortgage rates improve during afternoon trading Wednesday and Thursday.
The first release of the week comes Wednesday afternoon. The Federal Reserve will release its Beige Book report at 2:00 PM ET Wednesday. This report details current economic conditions in the U.S. by Federal Reserve regions. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed's next move. Most likely thou gh, it will be a non-event and will not lead to a noticeable change in mortgage rates.
Also Wednesday is a 10-year Treasury Note auction, which will be followed by a 30-year Bond auction Thursday. It is fairly common to see some weakness in bonds before these sales as investors prepare for them. If the sales are met with a decent demand from investors, indicating interest in longer-term securities such as mortgage-related bonds still exists, the earlier losses are usually recovered after the results are announced. The results of the sales will be posted at 1:00 PM ET each day. If demand was strong, particularly from international investors, we should see mortgage rates improve during afternoon trading Wednesday and Thursday.
Friday, September 3, 2010
What The Credit Bureaus Don't Want YOU to Know
First I’d like to give you some history on the credit bureaus and how they got their start. In the beginning the credit bureaus operated in secrecy, they were local not national and of course the information gathered was in a paper file. Department stores and finance companies shared information initially forming small local credit bureaus. The local credit bureaus developed a file. They developed these files by using the good old Welcome Wagon.
Anyone remember a couple nice ladies coming to your door after moving into a new home and bringing baked goods and asking a lot of questions. They were on a mission to find any information they could on you to put in your credit file. They noted your income by your car, furniture and home. Your race, age and dependants and well anything else of interest. And here you thought they were just welcoming you to the neighborhood with a smile and baked goods. Most of these women were employees of the local credit bureaus.
In 1906 the Associated Credit Bureaus (ACB) was formed. The sharing of information create synergies at all agencies across the country and laid the foundation for the 3 bureaus of today. As you can imagine complaints of discrimination on many levels but housing and home loans were at the top of the list. With the federal government regulating the banking industry they enacted “Fair Credit Report Act” in 1971.
There are two scoring platform used today, FICO and Vantage. The 3 bureaus are Experian, Transunion and Equifax and I’d like to tell you how the credit bureaus make money. First and foremost they SELL data, yes YOUR data. This data comes from all kinds of furnishers like credit card companies, collection agencies, banks, student loan providers, utility companies, public record and the country, state, and federal courts and IRS. Staying within the principles of the “Fair Credit Report Act” (FCRA) they are allow to report for periods of 7, 10 to 15 years.
They have to report 100% accurate information and 100% verifiable information. This is Key to any credit REPAIR. And YES credit repair is legal. Thankfully it is your right! It's reported that over 80% of Americans have errors on their credit report.
You also contribute to your credit report every time you apply for credit, the manner in which you pay your debts, your habits like moving, buying and your employment is all tracked with information you provide. So you can see how valuable your information could be to certain groups. All this information is now collected electronically through automation, lenders report to the bureaus electronically and no human ever touches or has contact with your file. The data is then SOLD as consumer credit report data and direct marketing data. The “lower” your Fico the more money they make, YES so you see, they have no incentive to help you clear up your credit. BUT they also make money when you are disputing your report. Which is why disputes, if you are not familiar with the process can take several tries before they are resolved. Unfortunately most people give up, which is their motive. So you see they profit 10 fold from credit reporting errors.
I will continue my report on your credit report in my next blog, stay tuned for more gripping details………the saga continues
Anyone remember a couple nice ladies coming to your door after moving into a new home and bringing baked goods and asking a lot of questions. They were on a mission to find any information they could on you to put in your credit file. They noted your income by your car, furniture and home. Your race, age and dependants and well anything else of interest. And here you thought they were just welcoming you to the neighborhood with a smile and baked goods. Most of these women were employees of the local credit bureaus.
In 1906 the Associated Credit Bureaus (ACB) was formed. The sharing of information create synergies at all agencies across the country and laid the foundation for the 3 bureaus of today. As you can imagine complaints of discrimination on many levels but housing and home loans were at the top of the list. With the federal government regulating the banking industry they enacted “Fair Credit Report Act” in 1971.
There are two scoring platform used today, FICO and Vantage. The 3 bureaus are Experian, Transunion and Equifax and I’d like to tell you how the credit bureaus make money. First and foremost they SELL data, yes YOUR data. This data comes from all kinds of furnishers like credit card companies, collection agencies, banks, student loan providers, utility companies, public record and the country, state, and federal courts and IRS. Staying within the principles of the “Fair Credit Report Act” (FCRA) they are allow to report for periods of 7, 10 to 15 years.
They have to report 100% accurate information and 100% verifiable information. This is Key to any credit REPAIR. And YES credit repair is legal. Thankfully it is your right! It's reported that over 80% of Americans have errors on their credit report.
You also contribute to your credit report every time you apply for credit, the manner in which you pay your debts, your habits like moving, buying and your employment is all tracked with information you provide. So you can see how valuable your information could be to certain groups. All this information is now collected electronically through automation, lenders report to the bureaus electronically and no human ever touches or has contact with your file. The data is then SOLD as consumer credit report data and direct marketing data. The “lower” your Fico the more money they make, YES so you see, they have no incentive to help you clear up your credit. BUT they also make money when you are disputing your report. Which is why disputes, if you are not familiar with the process can take several tries before they are resolved. Unfortunately most people give up, which is their motive. So you see they profit 10 fold from credit reporting errors.
I will continue my report on your credit report in my next blog, stay tuned for more gripping details………the saga continues
Friday's Market UpDate
Friday's bond market as opened well in negative territory following the release of stronger than expected employment news. The stock markets are reacting favorably to the data with the Dow up 61 points and the Nasdaq up 21 points. The bond market is currently down 26/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.
This morning's key economic data came from the Labor Department who gave us August's Employment report. It showed that the U.S. unemployment report rose to 9.6% as expected. The bad news came in the other two primary readings that the markets follow. The data showed that only 54,000 jobs were lost last month when analysts were expecting to see a loss of 120,000. Also, the average hourly earnings reading rose 0.3% when forecasts called for a 0.1% increase.
The fewer job loss number indicates a stronger employment sector than many had thought. The stronger earnings also raises concern for the bond market because it gives consumers more money to spend. Therefore, this report was not good for bonds and mortgage rates and is the cause of this morning's selling.
This morning's key economic data came from the Labor Department who gave us August's Employment report. It showed that the U.S. unemployment report rose to 9.6% as expected. The bad news came in the other two primary readings that the markets follow. The data showed that only 54,000 jobs were lost last month when analysts were expecting to see a loss of 120,000. Also, the average hourly earnings reading rose 0.3% when forecasts called for a 0.1% increase.
The fewer job loss number indicates a stronger employment sector than many had thought. The stronger earnings also raises concern for the bond market because it gives consumers more money to spend. Therefore, this report was not good for bonds and mortgage rates and is the cause of this morning's selling.
Quote For The Day
Fate, is an excuse for why we end up where we do! Our 'Actions' predetermine our Destiny, our 'Reactions' seal that fate!
Carl Stoynoff
poet/philosopher
Carl Stoynoff
poet/philosopher
Thursday, September 2, 2010
Market UpDate
Thursday's bond market has opened in negative territory again as yesterday's sell-off extends into this morning's trading. The stock markets are showing relatively minor gains with the Dow up 18 points and the Nasdaq up 15 points. The bond market is currently down 11/32, which should push this morning's mortgage rates higher by approximately .125 - .250 of a discount point.
None of today's three reports showed a surprise significant enough to affect mortgage rates. The revised 2nd Quarter Productivity reading revealed a 1.8% decline. This was slightly weaker than the 1.7% decline that was forecasted, but was not enough of a variance to affect bond trading or mortgage rates. The Labor Department reported that 472,000 new claims for unemployment benefits were filed last week when 475,000 were expected. As with the productivity reading, this was not enough of a difference to influence this morning's mortgage pricing.
July's Factory Orders report w as released late this morning, showing a 0.1% increase in new orders for durable and non-durable goods. Analysts were expecting to see a 0.3% increase, so at first look this data can be considered good news for bonds and mortgage rates because it indicates weaker than expected manufacturing activity. However, a significant upward revision to June's orders offset July's news, creating a neutral impact on this morning's trading.
None of today's three reports showed a surprise significant enough to affect mortgage rates. The revised 2nd Quarter Productivity reading revealed a 1.8% decline. This was slightly weaker than the 1.7% decline that was forecasted, but was not enough of a variance to affect bond trading or mortgage rates. The Labor Department reported that 472,000 new claims for unemployment benefits were filed last week when 475,000 were expected. As with the productivity reading, this was not enough of a difference to influence this morning's mortgage pricing.
July's Factory Orders report w as released late this morning, showing a 0.1% increase in new orders for durable and non-durable goods. Analysts were expecting to see a 0.3% increase, so at first look this data can be considered good news for bonds and mortgage rates because it indicates weaker than expected manufacturing activity. However, a significant upward revision to June's orders offset July's news, creating a neutral impact on this morning's trading.
Quote For The Day
What really distinguishes this generation in all countries from earlier generations... is its determination to act, its joy in action, the assurance of being able to change things by one's own efforts.
Hannah Arendt
1906-1975, German-born American Political Philosopher
Hannah Arendt
1906-1975, German-born American Political Philosopher
Wednesday, September 1, 2010
Saturday, July 10, 2010
Most of my blog is about the market,stocks, bonds and interest rates.. pretty boring stuff I know. Today I woke up early with the thought of a beautiful deserted beach my husband told me about the night before. He had discovered it while driving his big truck and wanted to explore it with me this morning . Our grandson spent the night so the three of us after viewing the purple skies and sunrise over Waimea we decide to get an early start to beat the traffic. We stopped at Ted's Bakery a really hot spot for local diners and a great anytime food choice. Just down the hwy and onto a side street we parked by a little opening you could barely see the beach and ocean, but a short walk through some bushes and you exit onto the most beautiful white sandy beach, it was low tide and my grandson played in the shallow tide pools and ran along the beach... we enjoyed our walk and just had a great time. So serene and beautiful, I didn't want to leave. I know I will definantly be back!
Then.... no I am not quite finish! Driving back we notice about 100 +++ people swimming in a contest I later found out to be Cholo's Waimea Bay Swim, a 1 mile race,part of the 3 event... Surf n Sea series. Anyway we stop as so many people do... on the side of the road and snapped a couple camera shots.. hope you enjoy them. But everyone should take a few minutes... stop and enjoy lifes pleasures. Do something to put in the memory banks once in a while. I did today....I sometimes forget I live in Paradise even tho it's right out my back door. I am truely blessed with a wonderful family and living on the North Shore of Oahu.
Friday, June 18, 2010
Declining Mortgage Rates Spur Near-term Refinancing Activity
Declines in fixed mortgage rates to about 4.9 percent in May helped boost refinance applications during the month, which will lead to increased refinance originations late in the second quarter and early in the third quarter. As a result, we upwardly revised our projection of refinance originations, albeit moderately. Despite historically low mortgage rates, a big refinance boom is unlikely at current levels. Since the beginning of 2009, there have been several occasions where rateswere at or below currently prevailing rates, effectively lowering the rate at which borrowers would be “in-the-money” to refinance. As lending standards have remained tight, there are significant barriers to refinancing, including high loan-to-value ratios, low credit scores, and uncertainty about job prospects.
Our outlook calls for the fixed mortgage rate to hover around 5.0 percent for the rest of year. Unless the rate moves closer to 4.5 percent than 5.0 percent, we do not expect that the recent surge in refinance activity will be sustained. Signs of waning interest in refinancing have already emerged. After four consecutive weekly gains, refinance applications posted a 14-percent drop in early June, even though the fixed mortgage rate edged lower.
Our 2010 outlook on home sales and home prices, and thus purchase mortgage originations, were little changed from the May forecast at $698 billion, while our projected refinance originations were increased by about $90 billion from the May forecast to $669. For all of 2010, total mortgage originations are projected to decline to $1.37 trillion from an estimated $1.92 trillion in 2009. The purchase-refinance mix is projected to be nearly balanced, with a refinance share of 49 percent.
Mortgage debt outstanding (MDO) for 1-to-4 unit single-family properties fell at an annualized rate of 4.0 percent in the first quarter—marking the eighth consecutive quarterly drop and the biggest since data collection began in 1952. The ongoing decline reflects charge-offs as well as household deleveraging, which also occurs for non-mortgage debt. Since its peak in the first quarter of 2008, single-family MDO has fallen by nearly $500 billion. We expect it to continue to decline through the rest of the year. For all of 2010, MDO is projected to decline by 3.8 percent, accelerating from a 1.9-percent decline in 2009.
Our outlook calls for the fixed mortgage rate to hover around 5.0 percent for the rest of year. Unless the rate moves closer to 4.5 percent than 5.0 percent, we do not expect that the recent surge in refinance activity will be sustained. Signs of waning interest in refinancing have already emerged. After four consecutive weekly gains, refinance applications posted a 14-percent drop in early June, even though the fixed mortgage rate edged lower.
Our 2010 outlook on home sales and home prices, and thus purchase mortgage originations, were little changed from the May forecast at $698 billion, while our projected refinance originations were increased by about $90 billion from the May forecast to $669. For all of 2010, total mortgage originations are projected to decline to $1.37 trillion from an estimated $1.92 trillion in 2009. The purchase-refinance mix is projected to be nearly balanced, with a refinance share of 49 percent.
Mortgage debt outstanding (MDO) for 1-to-4 unit single-family properties fell at an annualized rate of 4.0 percent in the first quarter—marking the eighth consecutive quarterly drop and the biggest since data collection began in 1952. The ongoing decline reflects charge-offs as well as household deleveraging, which also occurs for non-mortgage debt. Since its peak in the first quarter of 2008, single-family MDO has fallen by nearly $500 billion. We expect it to continue to decline through the rest of the year. For all of 2010, MDO is projected to decline by 3.8 percent, accelerating from a 1.9-percent decline in 2009.
Thursday, May 20, 2010
First Early Detection Month for ALL Cancers
If you are not familar with the 1in8Foundation please take a few minutes to learn about this wonderful organization. They are helping worldwide and raising money for the education and awareness of breast cancer. 1in 8 woman will be diagnosed with breast cancer this year. Early detection is the key to surviving breast cancer. Please visit the 1in8foundation.org website to learn about the founder and the history of 1in8 Foundation.
May is the FIRST Early Detection Month for ALL Cancers.
Join 1in8Foundation's kick off their "Dollars for Detection Campaign"
"Early Detection is KEY"!
Help raise money for this great cause by clicking on the donate button and donating just $1..... at the top - right side of my blog. Thanks you in advance for your donation.
Join 1in8Foundation's kick off their "Dollars for Detection Campaign"
"Early Detection is KEY"!
Help raise money for this great cause by clicking on the donate button and donating just $1..... at the top - right side of my blog. Thanks you in advance for your donation.
Tuesday, April 27, 2010
Ten Things the IRS Wants YOU to Know About Identity Theft
Criminals use many methods to steal personal information from taxpayers. They can use your information to steal your identity and file a tax return in order to receive a refund. Here are 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of a scam artist.
1. Identity thieves get your personal information by many different means, including stealing a wallet or purse or accessing information you provide to an unsecured Internet site. They even look for personal information in your trash. They also pose as someone who needs information through a phone call or e-mail.
2. The IRS does not initiate contact with a taxpayer by e-mail.
3. If you receive an e-mail scam, forward it to the IRS at phishing@irs.gov.
4. If you receive a letter from the IRS leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.
5. Your identity may be stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know.
6. If your Social Security number is stolen, it may be used by another individual to get a job. That person’s employer would report income earned to the IRS using your Social Security number, making it appear that you did not report all of your income on your tax return.
7. If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver's license, or passport – along with a copy of a police report and/or a completed Form 14039, IRS Identity Theft Affidavit.
8. Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your SSN.
9. If you have previously been in contact with the IRS and have not achieved a resolution, please contact the IRS Identity Protection Specialized Unit, toll-free at 1-800-908-4490.
For more information about identity theft – including information about how to report identity theft, phishing and related fraudulent activity – visit the IRS Identity Theft Resource Page, which you can find by typing “Identity Theft” in the search box on the IRS.gov home page.
Links:
• Suspicious e-Mails and Identity Theft
• Identity Theft and Your Tax Records
• Department of the Treasury's identity theft resource page
• Federal Trade Commission's (FTC) consumer Web site
• FTC's OnGuardOnLine Web site
• Firstgov
1. Identity thieves get your personal information by many different means, including stealing a wallet or purse or accessing information you provide to an unsecured Internet site. They even look for personal information in your trash. They also pose as someone who needs information through a phone call or e-mail.
2. The IRS does not initiate contact with a taxpayer by e-mail.
3. If you receive an e-mail scam, forward it to the IRS at phishing@irs.gov.
4. If you receive a letter from the IRS leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.
5. Your identity may be stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know.
6. If your Social Security number is stolen, it may be used by another individual to get a job. That person’s employer would report income earned to the IRS using your Social Security number, making it appear that you did not report all of your income on your tax return.
7. If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver's license, or passport – along with a copy of a police report and/or a completed Form 14039, IRS Identity Theft Affidavit.
8. Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your SSN.
9. If you have previously been in contact with the IRS and have not achieved a resolution, please contact the IRS Identity Protection Specialized Unit, toll-free at 1-800-908-4490.
For more information about identity theft – including information about how to report identity theft, phishing and related fraudulent activity – visit the IRS Identity Theft Resource Page, which you can find by typing “Identity Theft” in the search box on the IRS.gov home page.
Links:
• Suspicious e-Mails and Identity Theft
• Identity Theft and Your Tax Records
• Department of the Treasury's identity theft resource page
• Federal Trade Commission's (FTC) consumer Web site
• FTC's OnGuardOnLine Web site
• Firstgov
Friday, April 23, 2010
Seven Things you Should Know When Selling Your Home
People who sell their home may be able to exclude the gain from their income. Here are seven things every homeowner should know if they sold, or plan to sell their house.
1. Amount of exclusion. When you have gain from the sale of your home, you may be able to exclude up to $250,000 of the gain from your income. For most taxpayers filing a joint return, the exclusion amount is $500,000.
2. Ownership test. To claim the exclusion you must have owned the home for at least two years during the five year period ending on the date of the sale.
3.Use test. You also must have lived in the house and used it as your main home for at least two years during the five year period ending on the date of the sale.
4. When not to report. If you are able to exclude all of the gain from the sale of your home, you do not need to report the sale on your federal income tax return.
5. Reporting taxable gain. If you have gain which cannot be excluded, it is taxable and must be reported on your tax return using Schedule D.
6. Deducting a loss. You cannot deduct a loss from the sale of your home.
7. Rules for multiple homes. If you have more than one home, you may only exclude gain from the sale of your main home and must pay tax on the gain resulting from the sale of any other home. Your main home is generally the one you live in most of the time.
For more information see IRS Publication 523, Selling Your Home, available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Links:
Thursday, April 22, 2010
Spring Gardening Tips
2. Aphids? Spray infested stems, leaves, and buds with a very dilute soapy water, then clear water. It works even on the heaviest infestation.
3. Landscaping your yard is the only home improvement that can return up to 200% of your original investment.
4. Shade gardens are low maintenance – they require less watering, slower growth and fewer weeds to fight.
5. Eighty five percent of a plant’s roots are found in the top 6” of soil.
6. Weeds? Spot-spray with common full-strength vinegar, on a sunny day. It’s an organic weed killer that’s safe for you and the environment.
7. Some flowers, including sweet peas, iris, foxglove, amaryllis, lantana, lupines, clematis, dature, poinsettia, and oleander, are poisonous.
8. During the spring, if you don’t have a soaking rain every 10-14 days, begin deep watering your trees and shrubs.
9. For fastest results, turn your compost pile every two weeks.
10. To reduce the risk of powdery mildew in your herb or flower beds, avoid overhead watering, using a soaker hose or drip irrigation instead.
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