Top 10 Cities with underwater mortgages

It isn’t surprising that Las Vegas tops the list with 63.96% or 2 out of every 3rd home is underwater.
What is surprising is Las Vegas is way out front by almost 10% more than Phoenix listed 2nd at 53.96%.
Unemployment in Vegas is 14.2% well above the national average.

Here’s the list put out by the National Association of Mortgage Brokers (NAMB)

10. Bakersfield, CA

9. Lakeland – Winter Haven FL

8. Port St. Lucie, FL

7. Vallejo- Fairfield, CA

6. Modesto, CA

5. Orlando-Kissimmee – Sanford, FL

4. Reno-Sparks, NV

3. Stockton, CA

2. Phoenix-Mesa-Glendale, AZ

1. Las Vegas- Paradise, NV

Top 10 Cities with mortgages staying afloat

Price increases of 7% the largest in the nation per Vero-Forecast go to Hawaii also with the lowest unemployment rate in the nation at 5.5%. Hawaii has a general high demand for homes. Property in the islands, have a higher value then US average. Census Bureau’s stats puts 58.3% of Honolulu homes over $500,000 compared to national average of 10.5%.

10. Honolulu, HI

9. Pittsburg, PA

8. Oklahoma City, OK

7. Lancaster, PA

6. Huntsville, AL

5. Fayetteville, NC

4. Buffalo-Niagara Falls, NY

3. Albany- Schenectady-Troy, NY

2. El Paso, TX

1. Rochester, NY

Market Updates With Stunning Employment Figures

Stunned!! The only way to describe what we saw at 8:30 when the BLS employment report was released, mouths dropped, words were hard to come by with one of the weakest monthly employment reports in over a year. Non-farm jobs, expected up 100K were up just 18K; private sector jobs expected up 125K, up just 57K. It wasn't just June data; May non-farm jobs were revised frm +54K to +29K and April jobs lower by 4K frm what what was originally released. The jobs were the weakest since Sept 2010. The unemployment rate, expected unchanged at 9.1%, increased to 9.2%, the highest since Dec 2010. Average hourly earnings -0.1%, normally up 0.2% a month. No matter how the report is spun when Pres Obama speaks at 10:35; this is a very serious blow to the view that the economy is improving and has turned markets upside down.

Prior to the release of employment the 10 yr note yield was up to 3.18% +4 bp frm yesterday's close; mortgage prices -7/32 (.22 bp) frm yesterday's close. At 9:00 the 10 yr note rate was down to 3.03% -11 bp frm yesterday's close and mortgage prices +18/32 (.56 bp). Stock indexes were better prior to 8:30, at 9:00 the DJIA -132, down 155 points from pre employment.

At 9:30 the DJIA opened -100, the 10 yr note 3.05% -9 bp and mortgage prices -16/32 (.50 bp). Crude oil -$1.60, gold up $12.50.

Until the report this morning the rate markets were decidedly bearish and equity markets were looking for the economy to rebound. Our outlook was for rates to edge a little higher with the 10 yr note likely to climb to 3.25% before the selling would abate. With this report that forecast is dashed, at least in the near term. Employment reports are always market movers as is the case today, however the data for June has really rattled markets more so than usual. Markets are going to take more than a day or two to wrestle with the deeper meaning for the economic outlook and whether we are headed into a double dip recession. While that is an extreme view, nevertheless May and June job growth (+47K in 2 months) won't be dismissed and forecasts of growth will likely be revised lower.

The bond and mortgage market outlook, bearish until 8:30, have shaken off all of the optimistic economic estimates. What was is no longer. Without job growth the economy cannot grow, stocks are going to be weak today and early next week. The 10 yr note will test 3.00% today and Monday. While the data today shocked everyone, it will take sometime to sift out the longer term meaning. Look for some to argue that May and June were just big bumps in the road to recovery and stronger growth; the bullish views on the economy won't die easily. Market volatility will likely remain at very high levels.

Although the employment situation as reported has caused many to re-consider their outlook for economic growth, what the Fed might do, what Congress might do, and where interest rates will trade now; the resolution will take time. We still believe the 10 yr note will have difficulty holding under 3.00% as we noted previously. Next week Treasury will auction a total of $66B, the first auctions since the end of QE 2, $21B of the total of 10 yr notes. Two weeks ago Treasury auctions met with weaker demand than had been the case for over a year. How the auctions go will be major test.

Quote For The Day

I can promise you that women working together - linked, informed and educated - can bring peace and prosperity to this forsaken planet.


Isabel Allende

Market UpDate

On Wednesday, treasuries rallied as worries over the slow pace of the economic growth spurred investors to buy treasuries. The $21 bln 10-year T-note auction attracted above average demand and came in at a yield of 2.967%. The 2-year treasury finished up 1.25/32nds (0.393) and the 10-year treasury finished up 13.5/32nds (2.964). Mortgages rallied as well and finished mixed versus treasuries. Lower coupons out-performed with good support from servicer and money manager account buying while higher coupons under-performed with real money and relative value accounts selling. Origination was $1.1 bln on the day and the FNCL 4.0s (30-year) in June finished up 9.0/32nds (101-12) and the FNCI (15-year) 3.5s in June finished up 6.5/32nds (102-23+). Gold/Fannie swaps had some movement with the biggest changes in the 5% swap, moving from -4.25/32nds to -5.25/32nds and the 6% swap, moving from -1.5/32nds to 0.5/32nds. These moves were as a result of a number of factors including prepayment releases, technical factors such as class A and quarter-end settlements, and trading flows.

Today’s economic releases includes the weekly initial unemployment claims report which is expected to fall 3,000 to 419,000, adding to last week's decline of 6,000 to 422,000. Meanwhile, weekly continuing claims are expected to fall 11,000 to 3.700 mln, adding to last week's decline of 1,000 to 3.711 mln. The markets will be watching today's unemployment claims report even more closely than usual to gauge whether the paltry 54,000 gain in May payrolls was a one off event, or whether it was the beginning of a sustained period of weakness in the labor market. The April U.S. trade deficit is expected to widen slightly to -$48.8 bln from -$48.2 bln in March. The US trade deficit has been pushed wider in the past five months by sharply higher oil and commodity prices, which have boosted the dollar value of U.S. imports. The Treasury will complete this week’s auctions with the selling of $13 bln in 30-year T-bonds. Currently, the DJIA futures are pointing higher 36 points to 12,066.

Quote For The Day

"Never look down on anybody unless you're helping him up."

Confucius

Market UpDate

On Tuesday, Treasuries were under pressure early with the looming Treasury supply. However, the $32 bln 3-year T-note auction came in better than expected with a yield of 0.765% and Bernanke’s comments helped Treasuries rally in the afternoon. The 2-year Treasury finished up 0.75/32nds (0.413) and the 10-year Treasury finished up 3.0/32nds (2.993). Mortgages again performed well closing at least 2.0/32nds tighter to Treasuries on buying from a diverse account base. The FNCL (30-year) 5.5s hit an all-time high during the day of 109-1+. Origination was $1.9 bln on the day and the FNCL 4.0s in June finished up 2.0/32nds (101-3) and the FNCI (15-year) 3.5s in June finished up 1.5/32nds (102-17). The Gold/Fannie 5.0 and 5.5% swaps moved slightly lower (more negative) due to real money e7ubdemand for Fannie 5.0s and Treasury selling of Gold 5.5s. Consumer credit excluding mortgages rose for the seventh straight month in April by $6.25 bln. This was a larger increase than the $5 bln expected, but was offset by a revision to the March figure down to $4.8 bln from $6 bln originally reported. The Labor Department reported that immediate available job openings fell by -151k in April to 2.97 mln open positions. Fed Chairman Bernanke spoke confirming the Fed is still far from QE3, but he did acknowledge the recent weakness in economic data.

Today the Mortgage Bankers Association reported that mortgage applications fell by a slight -0.4% WoW last week. Purchase applications fell by -4.4% WoW and refinance applications gained a modest 1.3% WoW. This is the second straight drop in mortgage applications despite a continued drop in mortgage rates, which have fallen by 60bps since their recent high of 5.14% in February of this year. Accordingly to the Mortgage Bankers Association, the 30-year fixed rate fell to 4.54% last week from 4.58% the prior week and 4.69% the week before that. The Fed’s Beige Book survey will be released today indicating economic conditions on the ground across the country. The markets will be particularly sensitive to any information that indicates weakening consumer spending or a lapse in hiring activity. The markets will also be hoping for a little more background on the extent to which Japanese supply chain disruptions and bad U.S. weather was behind the recent weakness in the economic statistics. The Treasury will complete its second auction of the week with $21 bln in 10-year T-notes. Currently, the DJIA futures are pointing lower 54 points to 12,018.

Quote For The Day!

An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.

Laurence J. Peter

Market UpDate

On Friday, mortgages underperformed swaps as selling from money managers materialized late in the session and pushed the basis (the yield difference between MBS and swaps) wider. Originator selling totaled just over $1.25bln during Friday’s abbreviated trading session. In terms of dollar prices, the FNCL (30yr) 4.0s in June were -8/32 (100-19) and the FNCI (15yr) 4.0s in June were -4.5/32 (104-03). In agency swaps, Gold/Fannie swaps traded modestly lower (in Fannie’s favor) last week as real money buying in Golds subsided a bit. Currently, the Gold/Fannie 4.0 and 4.5 swaps are trading at -3.75/32 and -3.625/32, respectively.

Originator lock activity was reported to be mixed last week. However, on average it seemed that locks were mostly flat to slightly higher week over week. The pick up in volume that is normally associated with a rally like the market saw last week was probably tempered somewhat by borrower’s focus on the upcoming holiday. The 30yr primary rates remain in the 4.625 – 4.75% range. The primary/secondary spread (the difference between primary rates and the interpolated MBS par coupon) is currently at ~70bps, which is slightly tighter week over week but still within the recent range.

Treasuries were mixed on Friday as the 5-year was +2/32 (1.717) and the 10-year was -4/32 (3.074). In terms of economic releases, this week’s calendar is heavy and will be highlighted by the May employment report that will be released on Friday. Today the S&P/Case-Shiller home price index for March will be released and is expected to show ~-0.24% decrease month over month, which would be in line with February’s decline. In equities, futures are pointing markedly higher following gains in Europe. European indices have been trading higher today as concerns surrounding Greece’s sovereign debt abated following an announcement from EU leaders that a new aid package for Greece will be decided upon by the end of June. Right now, S&P futures are +12.4 and Dow futures are +107.0.

What Does Memorial Day Mean to YOU?

Memorial Day is the last Monday of May. It’s a day we commemorate the men and women who died while serving in the military. It goes way back to the civil war days; we fly our flag at half mass for half the day and at noon raise it up again to honor those who have died and for their sacrifice not be in vain, but to rise up in their stead and continue the fight for freedom. We honor them with respect and remembrance.

This special weekend marks the beginning of summer and is a time we share with family and friends at picnics and BBQ all over our great country. One of the longest-standing traditions is the running of the Indianapolis 500, an auto race which has been held in conjunction with Memorial Day since 1911.
We have to get up early in Hawaii with a 5AM start time..

For our family it's a Sunday family BBQ. Randy's sister Lynne is here from Washington. I am planning a trip to Punchbowl Cemetary to honor our veterans.

So tell me about your weekend and what you have planned.

Have a wonderful holiday weekend and stay safe!

Quote For The Day

"Our happiness depends on the habit of mind we cultivate. So practice happy thinking every day. Cultivate the merry heart, develop the happiness habit, and life will become a continual feast."

Norman Peale

Market UpDate

Disquieting economic news pushed Treasuries markedly higher on Thursday. The 10-year was +19/32 (3.061) and the 30-year was +30/32 (4.223). Yields on most government bonds fell to their lowest levels of 2011 following the announcement that Q1 GDP growth was lower than analyst expectations. Moreover, this week’s initial jobless claims report increased whereas pundits had predicted a decrease. Finally, the Treasury completed an auction sweep as the day’s 7-year T-note auction was well bid, similar to this week’s previous two auctions. Mortgages rallied dramatically on the day as MBS outperformed treasuries across the coupon stack. Lower coupons were the highest fliers as the spread on the FNCL 4.0% improved nearly 8/32.
Treasury prices have retreated some from yesterday’s heights ahead of today’s inflation reports. The 5-year is unchanged (1.734), the 10-year is -4/32 (3.074) and the 30-year is -11/32 (4.243). Both the April PCE deflator and April core PCE deflator are expected to increase, extending March’s gains. While both of these inflation measures are on the rise they remain low relative to historical standards. Elsewhere, the April pending home sales report is expected to fall, reversing a portion of March’s increase. Finally, today’s final-May U.S. consumer confidence index from the University of Michigan is expected to remain unchanged, clinging to the early-May increase. Mortgage prices are slightly lower this morning with the FN 30-year 4.0% for June settle trading at 100-23. Please note that the market closes early today so it may behoove one to complete necessary trades earlier rather than later in the day.

Market UpDate

Treasuries were mixed on Wednesday as short and medium term notes benefited from the day’s scintillating 5-year auction. The 5-year was +2/32 (1.762), the 10-year was -4/32 (3.129) and the 30-year was -18/32 (4.279). Yesterday’s government bond sale elicited even greater demand than Tuesday’s 2-year auction. Meanwhile, strength in equities weighed on longer dated bonds. In other news, April durable goods orders posted the largest decline in 2011, disappointing pundits’ expectations. Mortgages were mostly unchanged on another day of modest flows. There was greater support for lower coupon versus higher coupon MBS throughout the day.

Treasury prices are lower this morning due to strength in global equities. The 10-year is -7/32 (3.154) and the 30-year is -14/32 (4.304). Government bond prices may be showing the effects of this week’s abundance of supply. This week’s $99 bln auction carnival culminates with today’s $29 bln 7-year T-note offering. Also today, the Q1 GDP is expected to be revised higher, benefiting from an anticipated increase in Q1 personal consumption. Finally, both weekly initial unemployment claims and continuing claims are expected to fall, building on last week’s declines. MBS prices are a bit lower this morning on the last full trading day of the week, there is an early close tomorrow at 2:00PM ET. The FN 30-year 4.0% for June settlement is trading at a price of 100-03.

Market UpDate

There was little news on Friday other than the deteriorating saga of Greek debt, a story that is beginning to feel as old as the Acropolis. Markets were sorting through European solvency concerns causing the Dow to surrender 93.28 points. Meanwhile, the 10-year Treasury rose 6/32 (3.152%). Mortgages followed government bonds higher as MBS prices climbed 4/32 in the “origination coupons”. Mortgages benefited from real money demand which improved MBS spreads by 3/32 relative to treasuries on lighter origination volume.

Treasury prices are markedly higher this morning as European debt concern has U.S. bonds looking relatively attractive. The yield on the 10-year has fallen to 3.10, very near its recent resistance point of 3.08. Domestic debt prices appear to have a great deal of momentum to begin the week which bodes well for the Treasury’s scheduled 2-year, 5-year and 7-year T-note auctions totaling $99 bln. Also, this week will bear witness to the latest domestic economic data including April new home sales (Tuesday), April durable goods orders (Wednesday), revised Q1 GDP (Thursday) and the April core PCE deflator (Friday). Last week’s U.S. economic data was disconcerting and further worrisome data could cast doubt on the fitness of the recovery. There are no questions regarding the health of mortgages as prices continue to steam ahead. June settle Fannie 30-year 4.0% are 100-10 while 15-year 3.5% are 101-27.

Does Anyone Qualify for a Mortgage Anymore?

You would have to search back about 40 to 50 years to find rates equal to our current rates.
Then why aren’t people buying homes or refinancing? Well today Fannie and Freddie have set the bar so high very few people qualify under their guidelines anymore. The lending environment has pushed the regular Joes/Janes right out of the market.

The average credit score before the melt down was
680 – 720 this was considered an excellent score. Now you will need a 760 or above to get the same pricing for your home loan. Most lenders offering FHA before would go down to 580, then 620 and now recently increase it to 640.

What’s in a credit score; You would be surprised to hear that your score is your lifeline to the best rates available, high scores, low rates. Making sure you have and keep your high score is imperative to saving money on interest over the term of any loan you apply. Home, auto or student loans rates can and are affected by your score. Credit card companies offer lower rates to borrowers with high scores.

How can you control your score?

1. Pay all your debts on time. If you don’t know what a 30, 60, 90 day late is call your creditor and ask them to explain it. It’s important you know this. ONE 30 day late can drop your score 30 to 60 points.

2. Never go over 50% of your credit limit on credit cards, 33% is even better.

3. Try to keep your accounts to a minimum; having multiple credit cards is hazardous. Try not to go over four.

4. Check your credit often at least twice a year. 80% of American’s have errors on their report. Get them fixed promptly before they lower your scores.

You can get a FREE report at http://www.annualcreditreport.com/

With some effort you too can get your scores up and qualify for a loan.

Need help?

Contact me!

Back on Track After a Family Crisis

Blogging and writing is something in truly enjoy. Giving you all information you can use or may pass on is inspiring for me to continue. My last entry on 2/28/11 was just two days before my husband went into the hospital and had triple bypass heart surgery, he is recovering but it's been a long haul, shortly after he came home from the hospital I was diagnosed with kidney stones. We were quite a pair all medicated and trying to care for each other. Our daughter was very helpful and our son was here for a short time and was my rock.
He helped me through my husbands surgery and stay in the hospital but he eventually had to return to his family in California. My kidney stones have passed, except for one, guess I have something to look forward to in the future. I will start my posting again and have some plans to update my blog and what's offered on it. I'd like to thank all of my followers for their well wishes and prayers during this time. I hope to continue to hear from all of you and read your comments. I enjoy your input and questions. Join me on Facebook too!

Market UpDate W/Small Improvement in Mortgage Rates

Monday’s bond market has opened fairly flat despite early stock gains and mixed economic data. The stock markets are starting the week in positive ground with the Dow up 73 points and the Nasdaq up 14 points. The bond market is currently up 2/32, but we should see a small improvement in this morning’s mortgage pricing due to strength late Friday.

January's Personal Income ad Outlays data was posted early this morning, revealing a large jump in personal income but a smaller than expected rise in spending. The data showed that income rose 1.0% last month, greatly exceeding forecasts of a 0.3% increase. However, offsetting this negative news was a 0.2% increase in spending when analysts were looking for a 0.4% rise. This means that consumers earned more money than thought, but did not spend it. That basically makes this data neutral towards mortgage rates.

Tomorrow’s big news is the Institute for Supply Management’s (ISM) manufacturing index for February. This late morning release will help us measure manufacturer sentiment and can have a pretty large impact on the financial and mortgage markets if it varies from forecasts. It is expected to show a decline from January's 60.8 to 60.5 this month. This is important because a reading above 50.0 means more surveyed manufacturers felt business improved during the month than those who felt it had worsened, meaning likely growth in the manufacturing sector. If we see a weaker than expected reading, the bond market could rally as it would mean manufacturer sentiment slipped during the month. But, a higher than forecasted reading could lead to major selling in bonds, causing mortgage rates to rise tomorrow morning.

Market UpDate

Wednesday’s bond market has opened relatively flat despite economic news that was highly unfavorable for bonds and mortgage pricing. The stock markets are showing gains with the Dow up 49 points and the Nasdaq up 13 points. The bond market is currently down 3/32, but I don’t believe we will see to much of a change in this morning’s mortgage rates.
January's Housing Starts was the first of this morning’s three pieces of economic data. It revealed a sizable jump in starts of new home construction, indicating future housing sector strength is possible. The 14.6% increase in housing starts greatly exceeded forecasts, but fortunately this data doesn’t usually have a significant influence on the markets and mortgage rates or we would have seen a noticeable increase in this morning’s pricing.

Market UpDate

Monday’s bond market has opened in positive territory with the stocks mixed. The Dow is currently down 24 points while the Nasdaq has gained 5 points. The bond market is currently up 6/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point from Friday’s morning pricing. There is no relevant economic data scheduled for release today, so look for the stock markets to be the biggest influence on bond trading and mortgage rates. The rest of the week brings us the release of six economic reports worth watching in addition to the minutes from the last FOMC meeting and two speaking appearances from Fed Chairman Bernanke.
The week’s first release is one of the highly important ones when the Commerce Department posts January’s Retail Sales data early tomorrow morning. This report is very important to the financial markets because it measures consumer spending. Since consumer spendi ng makes up two-thirds of the U.S. economy, any related data is watched quite closely. If tomorrow's report reveals weaker than expected sales, the bond market should thrive and mortgage rates will fall since it would be a sign that the economy is not as strong as many had thought. However, a stronger reading than the 0.5% increase that is expected could lead to higher mortgage rates.

Honolulu Home Sales for January

How nice to see Honolulu's housing market off to a positive start this year. Honolulu Board of Realtors just released their resale figures today for the month of January. Home Resales at 199 with a median sales price of $570,000. Condo resales 265 with a median sales price of $291,000. Compare to same month last year sales up but values have declined just slightly for homes -4.2% and condo -2.7%.
Get the full press release at http://www.hicentral.com/

Eight Ways to Raise Your Credit Score

1. GET RID OF YOUR COLLECTION ACCOUNTS.
Did you know that paying a collection account can actually reduce your score? Here’s why: credit scoring software reviews credit reports for each account's date of last activity to determine the impact it will have on the overall credit score. When payment is made on a collection account, collection agencies update credit bureaus to reflect the account status as "Paid Collection". When this happens, the date of last activity becomes more recent. Since the guideline for credit scoring software is the date of last activity, recent payment on a collection account damages the credit score more severely. This method of credit scoring may seem unfair, but it is something that must be worked around when trying to maximize your score. How is it possible to pay a collection and maximize your score? The best way to handle this credit scoring dilemma is to contact the collection agency and explain that you are willing to pay off the collection account under the condition that the all reporting is withdrawn from credit bureaus. Request a letter from the collector that explicitly states their agreement to delete the account upon receipt/clearance of your payment. Although not all collection agencies will delete reporting, removing all references to a collection account completely will increase your score and is certainly worth the involved effort.

2. GET RID OF YOUR PAST DUE ACCOUNTS.
Within the delinquent accounts on your credit report, there is a column called "Past Due". Credit score software penalizes you for keeping accounts past due, so Past Dues destroy a credit score. If you see an amount in this column, pay the creditor the past due amount reported.

3. GET RID OF YOUR CHARGE¬OFFS AND LIENS.
Charge offs and liens barely affect your credit score when older than 24 months. Therefore, paying an older charge off or a lien will neither help nor damage your credit score. Charge offs and liens within the past 24 months severely damage your credit score. Paying the past due balance, in this case, is very important. In fact, if you have both charged off accounts and collection accounts, but limited funds available, pay the past due balances first, then pay collection agencies that agree to remove all references to credit bureaus second.

4. GET RID OF YOUR LATE PAYMENTS.
Contact all creditors that report late payments on your credit and request a good faith adjustment that removes the late payments reported on your account. Be persistent if they ref use to remove the late payments at first, and remind them that you have been a good customer that would deeply appreciate their help. Since most creditors receive calls within a call center, if the representative refuses to make a courtesy adjustment on your account, call back and try again with someone else. Persistence and politeness pays off in this scenario. If you are frustrated, rude, and unclear with your request, you are making it very difficult for them to help you.

5. CHECK YOUR CREDIT LIMIT(S) AND EVENLY DISTRIBUTE THE BALANCES YOU ARE CARRYING.
Make sure creditors report your credit limits to bureaus. When no limit is reported, credit scoring software scores the account as though your current balance is "maxed out". For example, if you know that you have a $10,000 limit on your credit card, make sure that the limit appears on the credit report. Otherwise, your score will be damaged as severely as if you were carrying a balance of the entire available credit. Credit scoring software likes to see you carry credit card balances as close to zero as possible. If it is difficult for you to pay down your balances, read the following guidelines to maximize your score as much as possible under the circumstances.
• There are different degrees that scoring software can impact your score when carrying credit card balances.

• Balances over 70% of your total credit limit on any card damages your score the most. The next level is 50% of your balance, then 30% of your balance.

• In order to maximize your score without having to pay down your balances, evenly distribute your credit card balances among all of your credit cards, rather than carry a large balance on one credit card. For example, if you are carrying a $9000 balance on a credit card with a $10000 limit, and you have two other credit cards with a $3000 and $5000 limit, transfer your balances so that you have a $1500 balance on the $3000 limit card, a $2500 balance on the $5000 limit card and a $5000 balance on the $10000 limit card. Evenly distributing your balances will maximize your score.

6. DO NOT CLOSE YOUR CREDIT CARDS.
Closing a credit card can hurt your credit score, since doing so effects your debt to available credit ratio. For example, if you owe a total credit card debt of $10,000 and your total credit available is $20,000, you are using 50% of your total credit. If you close a credit card with a $5,000 credit limit, you will reduce your credit available to $15,000 and change your ratio to using 66% of your credit. There are caveats to this rule: if the account was opened within the past two years or if you have over six credit cards. The magic number of credit card accounts to have in order to maximize your score is between 3 and 5 (although having more will not significantly damage your score). For example, if a card was opened within the past two years and you have over six credit cards, you may close that account. If you have more than six department store cards, close the newest accounts. Otherwise, do not close any at all.

7. OPEN BUSINESS CREDIT CARDS.
Most business credit cards do not report to the personal credit report unless the person pays the card late. Given that fact, any debt carried on these cards does not hurt the credit score if it is not reported. You can carry credit card debt on these cards without hurting your credit score. Just apply for business credit cards now to start building this segment of your credit.

8. KEEP YOUR OLD CREDIT CARDS ACTIVE.
15% of your credit score is determined by the age of the credit file. Fair Isaac's credit scoring software assumes people who have had credit for a longer time are at less risk of defaulting on payments. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you’ve had credit. Use the old card at least once every six months to avoid the account rating to change to "Inactive". Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down. An inactive account is ignored by Fair Isaac's credit scoring software, so you won’t get the benefit of the positive payment history and low balance that card may have. The one thing all credit reports with scores over 800 have in common is a credit card that is twenty years old or older. Hold onto those old cards, trust me! Preparing credit is a slow and time consuming process. Full knowledge of your credit profile and how it represents you to creditors and credit bureaus is pivotal to full credit restoration success. Credit bureaus always advise individuals that they have a right to dispute their own credit files, but when the rights of the Credit Bureaus slow you down; you know where to ask for help, Right!
If not CALL ME 808-457-2455

Market UpDate W/ an Increase in Mortgage Rates

Tuesday’s bond market is in negative territory following early stock gains and stronger than expected results from an important economic report. The Dow is currently up 89 points while the Nasdaq has 37 points. The bond market is currently down 19/32, which will likely push this morning’s mortgage rates higher by approximately .250 of a discount point.

The Institute of Supply Management (ISM) released their manufacturing index for January late this morning. They announced a reading of 60.8 that exceeded forecasts of 57.5 and that December’s reading was revised higher by 1.5 points. This indicates that more surveyed manufacturers felt business improved during the month than did last month- a sign of a strengthening manufacturing sector and economic growth. That means this data is negative for bonds and mortgage rates because economic growth makes long-term securities such as mortgage related bonds less attractive to investors.
Tomorrow has no government reports scheduled for release or data that is considered likely to impact mortgage rates. However, there are a couple of private sector employment-related reports due to be posted. They normally would not be of much concern, but one of them showed an unexpected spike in new hires recently that caused selling in bonds and an increase in mortgage rates. I still am not too concerned about their results, but the potential does exist that a significant variance in the numbers could lead to changes in mortgage pricing.

Market UpDate W/ BOND Market UP Slightly from Friday

Monday’s bond market has opened up slightly despite a positive open in stocks. The stock markets are showing relatively minor gains with the Dow up 33 points and the Nasdaq up 2 points. The bond market is currently up 2/32, which with Friday’s late strength should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point compared to Friday’s morning pricing.

There is no relevant economic data scheduled for release today, so expect a relatively calm day for mortgage rates unless the major stock indexes move significantly higher or lower than their current levels. The rest of the week is quite busy with seven economic releases scheduled in addition to the first Federal Open Market Committee (FOMC) meeting of the year and two potentially influential Treasury auctions. All but one of them is considered to be of moderate or high importance, meaning we should see quite a bit of movement in mortgage rates the re st of the week.
January's Consumer Confidence Index (CCI) will be posted late tomorrow morning. This report is considered to be of moderate to high importance to the bond market and therefore can move mortgage rates. It is an indicator of consumer sentiment, which is important because waning confidence in their own financial situations usually means that consumers are less willing to make large purchases in the near future. Since consumer spending makes up two-thirds of the U.S. economy, market participants are very attentive to related data. Analysts are expecting to see an increase from December’s reading, indicating a higher level of consumer confidence. A reading much smaller than the expected 53.5 would be ideal for the bond market and mortgage rates.

Reverse Mortgage Equals Retirement for Baby Boomers

Many Baby Boomers are not prepared financially to retire. This group as well as many older seniors are still working into their 70’s and 80’s, is just wrong, what has happen to the golden years, it is fast disappearing for our elderly and replaced with stress, financial despair and hopelessness, sharing this info with them could relieve the financial burden they experience just trying to make ends meet. I came across a couple living in southern California he’s 83, she is 77, they have lived in their family home for over 30 years and he is still working, yes 83 and working, despite receiving social security and two pensions he was working full time as a teacher and struggling to stay in their home. I was so surprised by this and their situation I felt the need to share this. After talking to them about their mortgage and financial future, I recommended they consider a Reverse Mortgage. They had over 700,000 in equity and a reverse mortgage would give them many options so he could quit his job and retire immediately. They had no idea this option was available for them. Hopefully soon they can sit back together on their 5 acre home site and enjoy their remaining years together without the worry of losing their home or being force to selling it.
If you know someone a parent, a grandparent or elderly friend struggling to make their mortgage payments please share this information with them.

Reverse Mortgage is a Home Equity Conversion Mortgage (HECM) They have improved the terms of this loan product over the years and is now insured by FHA. It is a safe alternative for the elderly struggling to get by. They are required to have counseling to be sure they understand the terms. There are several options allow for disbursement of funds.

If they have a mortgage currently, this loan would be paid off. The remaining equity could be taken in one lump sum or divided up into monthly payments made to the homeowner. There are other payment options but they no longer have a mortgage PAYMENT to make each month. They stay in their home until they move, sale or died. They would be required to pay the (HECM) loan off when they no longer live in their home, sale it or died. After death their home goes to their heirs. They can refinance or sale and pay off the reverse mortgage keeping any equity profits.

Below I’ve added some websites and booklets you can explore and get more info regarding reverse mortgages. Frequently Asked Questions about HUD's Reverse Mortgage

If you ever have any questions please call me. 808-637-0011

AARP - Reverse Mortgage

Fannie Mae - Booklet on HECM - Reverse Mortgage

Market UpDate W/Housing Starts Data

Wednesday’s bond market has opened in positive territory following the release of some mixed housing data and early stock losses. The Dow is currently down 3 points while the Nasdaq has lost 22 points. The bond market is currently up 4/32, but we will still likely see an increase of approximately .125 of a discount point in this morning’s rates due to weakness late yesterday.

December's Housing Starts was the day’s only relevant economic data. It showed that starts of new home construction fell much more than expected last month. That is good news for the bond market because it hints at a slowing housing sector. However, clouding the picture was a spike in new permits issued that gives us an indication of future home starts. Prior to construction beginning, builders must pull permits from local city and county offices. The unexpected increase in new permits tells us that more projects are about to get under way, making it likely that w e will see an increase in January’s Housing Starts data. Therefore, we can consider this data neutral towards mortgage rates.
There are two monthly reports scheduled for release late tomorrow in addition to weekly unemployment figures that have carried a little more significance lately than they usually do. December’s Existing Home Sales is the first and is considered to be moderately important. The National Association of Realtors will give us this housing report, which tracks home resales in the U.S. It is expected to show an increase in home sales last month, meaning that the housing sector strengthened. Ideally, the bond market would prefer to see a decline in sales, but a small increase should not negatively affect mortgage rates tomorrow.

Market UpDate W/Positive Bond Market Should improve Mortgage Rates

Friday’s bond market has opened in positive territory after this morning’s economic data gave us mixed results. The stock markets are showing minor gains with the Dow up 12 points and the Nasdaq up 5 points. The bond market is currently up 8/32, which should improve this morning’s mortgage rates by approximately .250 - .375 of a discount point over yesterday’s morning rates.

The first of this morning’s four economic releases was December’s Retail Sales data. It revealed a 0.6% increase in sales at the retail level of the economy last month. This is a moderate increase, which is not necessarily good news for the bond market because it means that consumers are spending. However, it was a slightly smaller increase than many had thought, making this somewhat of a favorable report for mortgage rates.
The second key report of the day was December’s Consumer Price Index (CPI). The Labor Department reported a 0.5% increase in the overall reading and a 0.1% rise in the core data. The core data is the more important reading because it excludes more volatile food and energy prices, giving us a more stable reading of inflation at the producer level of the economy. Therefore, this data can be considered neutral to slightly negative for mortgage rates.

How to Avoid Pet Quarantine When You Bring your Pet to Hawaii

My dog Molly made the trip, your dog can too!

Most pet owner would agree that having their pet in any Quarantine for any length of time is
unacceptable and should be avoided at all cost, right? I’ve put together some tips and information so you and your pet can avoid this horrible experience. Hawaii received many complaints regarding their states pet entry policies. So our law makers got together and agreed on a compromise in 2003. My dog arrived in 2005 so I was one of the lucky people who didn’t have to visit their dog at the Animal Quarantine on Oahu over a 120 day period. If you’ve ever been there you won’t want to make a second trip back. Neither will your dog. You can get all you need to know about entry to Hawaii for your pet at Hawaii’s Department of Agriculture website listed below.

1. Print out the form Summary For Veterinarians and read and understand it too. My Vet is great but he had never experienced the protocol for pet entry to Hawaii. So don’t be surprise when your vet doesn’t know what needs to be done either. That’s why you have the instruction for him/her.

2. There are different forms and procedures you must follow for a Cat or Dog or other animals.
Understand the steps and if you’re like me, make some phone calls to Hawaii for clarification. Double check and Double check again and make sure you’ve got it. Because if you or your vet screw up, your poor Fido or Felix goes to animal Jail/Quarantine for 90 to 120 days straight from the airport at your expense. That is a tough lesson to learn at the cost of your pet’s freedom… oh and Animal Jail cost the owner anywhere from 14.30 to 17.80 per day times 120 days, WOW. So get your ducks in a row because it takes time to get it all done.

Here’s a list of some of the forms; Dog and Cat Import Form, Breed Code List, Color Code List, Testing forms, Approved Animal Hospital. Prohibited animals and dog breeds.
There is also a Brochure 25 pages that is worth printing out. Hawaii’s Animal Quarantine Law

3. While you’re preparing and paying for shots, blood tests, micro chip, you find yourself traveling to and from your vet’s office more times than you ever thought possible, wondering if it’s all worth it. You may start wondering just how devoted you are to your pet or maybe should I just give Fido or Felix to another good home or relative on the mainland. Well I assure you, keeping your pet is worth it, if you can afford it and have the patience to go through the steps. Just keep picturing your pet running on the beach and playing in paradise. My dog has learned to surf she doesn’t use a board but she body surfs, crazy… I know but she just started with no training, it came very natural to her. Seeing that alone was worth every penny I spent and all the reading and research I had to do to get her here. Hang in there; it will be worth it for you too!

Tips
***Make sure your purchase an adequate kennel for your dog size. I know the airlines charge by pound but don’t exchange your animal’s safety and comfort for the price of his/her ticket.
***Make sure your pet has penalty of water in a bottle hooked to its kennel.
***Once you make it on the plane, have a cocktail or take a chill pill and relax. You’ve done all you can and it’s in someone else hands for the next few hours. Molly's whole journey was 11 hours in her cage. SFO to HNL,
***My Favorite airline is Hawaiian Air for getting your pets to Hawaii, but I am sure whatever airline you choose will get your pet here safely.
***Remember to call the airlines in plenty of time before your flight and get their rules and regulations. Most if not all require a Health Certificate filled out by your Vet, 14 days or less before your flight.
You will find everything you need at this link below. Good Luck!
http://hawaii.gov/hdoa/ai/aqs/info

Market UpDate W/Bond Market Opening in Negative Territory

Tuesday’s bond market has opened in negative territory with no relevant economic data scheduled for release and the stock markets showing early gains. The Dow is currently up 58 points while the Nasdaq has gained 10 points. The bond market is currently down 14/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point. Strength in bonds late yesterday is limiting this morning’s increase in rates.
There is again no relevant economic data scheduled for release today. Tomorrow begins a fairly active three days in terms of economic releases and events that are relevant to mortgage rates. There is nothing of importance happening tomorrow morning, except for the 10-year Treasury Note auction. It is common to see some pressure in bonds ahead of these types of sales as firms that are participating adjust their holdings to prepare for the auction. This may lead to a negative open in the bond market tomorrow since the benchmark security of the bond market is the 10-year Note, but the impact on morning mortgage rates should be fairly minimal.
10-year Notes are being sold tomorrow while 30-year Bonds will go to auction Thursday. Tomorrow’s sale is the more important of the two as it will give us a better indication for demand of mortgage-related securities. If the sales are met with a strong demand from investors, we should see the bond market move higher during afternoon hours. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would result in upward revisions to mortgage rates.

Market UpDate W/Labor Department Stats

Thursday’s bond market has opened in positive territory after this morning’s only economic data gave us favorable results. The stock markets are also helping to boost bond prices with losses in the Dow of 43 points and the Nasdaq 3 points. The bond market is currently up 9/32, but we will still see an increase of approximately .125 - .250 of a discount point in this morning’s mortgage rates due to weakness in trading late yesterday.
The Labor Department gave us this morning’s only economic data with the release of last week’s unemployment figures. They reported that 409,000 new claims for unemployment benefits were filed last week, up from the previous week’s revised total of 391,000 and higher than forecasts. Last week’s report that tracked the previous week’s claims initially showed 388,000 claims that had surprised many people. This means that the holiday schedule and weather likely did artificially influ ence those numbers and that the labor market did not improve as much as some wanted us to believe. That is good news for the bond market and mortgage rates because the weak employment sector has helped limit economic growth, making longer-term securities such as mortgage-related bonds more attractive to investors. Unfortunately, since this data tracks only a single week’s worth of new claims, its impact on mortgage rates is usually minimal.
Tomorrow morning will have the Labor Department in a much brighter spotlight than today. They will post December’s monthly employment figures early tomorrow morning, with all eyes looking at the headline numbers. This report is arguably the most important monthly release we see. It gives us the national unemployment rate, the number of jobs added or lost during the month and average hourly earnings, which is a key measure of wage inflation. Rising unemployment, smaller than expected increase in new payrolls and a decline in earnings would be ideal news for the bond market.

Market UpDate W/Higher Mortgage Rates in the Forecast.

Monday’s bond market has opened the new year in negative territory despite slightly weaker than expected economic data. The stock markets are the cause of the bond weakness with the Dow up 124 points and the Nasdaq up 46 points. The bond market is currently down 12/32, which will likely push this morning’s mortgage rates higher than Friday’s pricing by approximately .125 - .250 of a discount point.

The Institute for Supply Management’s (ISM) manufacturing index was this morning’s only important economic data. It showed a reading of 57.0 that was slightly lower than the 57.3 that was expected. This means that manufacturer sentiment did increase last month, but not quite as much as thought. That basically can be considered goods for the bond market and mortgage rates, but it was the highest reading in 7 months. Therefore, the markets seem to be using the data to drive stock prices higher.
Tomorrow morning the Commer ce Department will post November’s Factory Orders data. This data gives us a fairly important measurement of manufacturing sector strength. It is similar to the Durable Goods Orders release that was posted late last week, except this report includes orders for both durable and non-durable goods. Durable goods are items that are expected to last three or more years such as electronics and autos. Examples of non-durable goods are food and clothing. Analysts are expecting to see a decline of 0.3% in new orders. This report generally does not have a huge impact on the bond market or mortgage rates, but it can influence bond trading enough to create a minor change in rates. The larger the decline, the better the news for mortgage rates.