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.