Mortgage bonds are higher mid-morning Tuesday erasing the losses seen yesterday afternoon. Trade is thin this morning.
In news released this morning, the Case Shiller home price index fell 18.97%, near expectations. Also, consumer confidence stood at 25. Analysts expected confidence to stand at 28. With no more news set for release, traders will watch stocks to help gauge interest rate direction.
Today is the last day of the first quarter and many bond desks are more interested in closing their books than trading. This can crate a thin trading environment, which exaggerates volatility. Be careful.
Tomorrow brings the ADP payroll report. While the report is widely know for large misses, it will get traders talking about the jobs report on Friday. The employment report on Friday is the #1 data release each month and has the ability to cause big moves in the MBS market.
Tuesday, March 31, 2009
Friday, March 27, 2009
Interest Rates Drop.....Again
Check out my website, www.DaveShelor.net and click on rates. 30 Year rates as low as 4.250%, 15 year rates as low as 4.125%. Rates are subject to change without notice.
Mortgage bond prices remain positive this morning adding to the small gains from yesterday after relatively bond friendly data. Personal income fell 0.2%, weaker than the expected 0.1% decrease. Outlays rose 0.2% as expected.
There is another Treasury auction this afternoon Debt supply concerns continue to pressure bonds as a whole as the most recent auction was rather poor.
The UK had a failed auction this week and if that ever happened to the US all bets are off. Expect more of the same with the Fed being the primary buyer of mortgage bonds.
Consumer sentiment data came in at 57.3 versus the expected 56.8 mark, not bond friendly.
Mortgage bond prices remain positive this morning adding to the small gains from yesterday after relatively bond friendly data. Personal income fell 0.2%, weaker than the expected 0.1% decrease. Outlays rose 0.2% as expected.
There is another Treasury auction this afternoon Debt supply concerns continue to pressure bonds as a whole as the most recent auction was rather poor.
The UK had a failed auction this week and if that ever happened to the US all bets are off. Expect more of the same with the Fed being the primary buyer of mortgage bonds.
Consumer sentiment data came in at 57.3 versus the expected 56.8 mark, not bond friendly.
Thursday, March 26, 2009
Opening Market Data for March 26, 2009
Mortgage bond prices opened lower once again this morning as the data wasn't as bad as expected. The final revised Q4 GDP fell 6.3%, not as low as the expected 6.5% decline.
Weekly jobless claims were relatively as expected with an increase of 652,000.
There is another Treasury auction Friday. Debt supply concerns continue to pressure bonds as a whole as the most recent auction was rather poor. The UK had a failed auction this week and if that ever happened to the US all bets are off.
Expect more of the same with the Fed being the primary buyer of mortgage bonds. This doesn't mean we won't see rates go higher, as is evident over the past few days. But hopefully they will continue to shore up things and keep any major rate spikes from occurring.
Market is currently worse this morning by .125% of a discount point. This as of 9:50 AM.
Weekly jobless claims were relatively as expected with an increase of 652,000.
There is another Treasury auction Friday. Debt supply concerns continue to pressure bonds as a whole as the most recent auction was rather poor. The UK had a failed auction this week and if that ever happened to the US all bets are off.
Expect more of the same with the Fed being the primary buyer of mortgage bonds. This doesn't mean we won't see rates go higher, as is evident over the past few days. But hopefully they will continue to shore up things and keep any major rate spikes from occurring.
Market is currently worse this morning by .125% of a discount point. This as of 9:50 AM.
Wednesday, March 25, 2009
March 25, 2009-New Homes Sales Data
New home sales rose 4.7%, the first increase since July 2008. Analysts were expecting a 2.9% decrease.
This increase further indicates that the economy appears to be in the beginning stages of a turnaround. Had a decrease occurred, we might have seen an improvement in our already historic low rates.
Watch for rate volatility today. The 5 year treasury note auction is this afternoon at 1:30. Stronger than expected demand may lead to lower rates.
This increase further indicates that the economy appears to be in the beginning stages of a turnaround. Had a decrease occurred, we might have seen an improvement in our already historic low rates.
Watch for rate volatility today. The 5 year treasury note auction is this afternoon at 1:30. Stronger than expected demand may lead to lower rates.
March 25, 2009-Data is not rate friendly at the start of the morning
Mortgage bond prices opened lower following stronger than expected data this morning. Durable goods orders rose 3.4%, stronger than the expected 2.5% decline. This was the first increase in durable goods orders in 7 months.
This increase is not typically bond or rate friendly!
China remains concerned that the US Government continues to print money, devaluing their current holdings. China is the largest holder of US debt. While the current talk is some saber rattling during these times of uncertainty, the threat is being taken seriously by the financial markets.
The Fed will start buying Treasury bonds today, the New York Fed said yesterday afternoon. They indicated longer term Treasuries would be part of the buying which sent the 30Y up considerably. It will be interesting to see how the market reacts today to this.
New home sales, and a 5 year auction will take place later today.
This increase is not typically bond or rate friendly!
China remains concerned that the US Government continues to print money, devaluing their current holdings. China is the largest holder of US debt. While the current talk is some saber rattling during these times of uncertainty, the threat is being taken seriously by the financial markets.
The Fed will start buying Treasury bonds today, the New York Fed said yesterday afternoon. They indicated longer term Treasuries would be part of the buying which sent the 30Y up considerably. It will be interesting to see how the market reacts today to this.
New home sales, and a 5 year auction will take place later today.
Tuesday, March 24, 2009
Market Data for March 24, 2009
Mortgage bond prices remain weaker since pricing as stocks turn positive again this afternoon. The DOW was down over 70 points and now is in positive territory. In addition there are new calls from China to replace the US dollar as the international reserve currency.
China is concerned that the US Government continues to print money, devaluing their current holdings. China is the largest holder of US debt. While the current talk is some saber rattling during these times of uncertainty, the threat is being taken seriously by the financial markets. This week the Treasury will auction $98B in 2, 5 and 7-year notes. The additional supply will likely keep prices in check.
When discussing rates with borrowers, make sure they are aware of the auctions and the potential upward pressure on rates that may occur. The auctions begin this afternoon. The 2 year auction was relatively well bid but we can't get any traction off of it with positive stocks.
China is concerned that the US Government continues to print money, devaluing their current holdings. China is the largest holder of US debt. While the current talk is some saber rattling during these times of uncertainty, the threat is being taken seriously by the financial markets. This week the Treasury will auction $98B in 2, 5 and 7-year notes. The additional supply will likely keep prices in check.
When discussing rates with borrowers, make sure they are aware of the auctions and the potential upward pressure on rates that may occur. The auctions begin this afternoon. The 2 year auction was relatively well bid but we can't get any traction off of it with positive stocks.
Monday, March 23, 2009
Existing home starts better than expectation
Existing home sales rose 5.1%, higher than the expected 0.8% decrease.
Stocks are rallying this morning (DOW up 150 points) as the US Government plans to unveil details of a new government entity to clear $1 trillion in securities and loans from bank balance sheets. Details will be released later today.
Stocks are rallying this morning (DOW up 150 points) as the US Government plans to unveil details of a new government entity to clear $1 trillion in securities and loans from bank balance sheets. Details will be released later today.
Data for March 23, 2009
Mortgage bond prices opened near unchanged failing to erase the losses from Friday afternoon. Existing home sales data will be released later this morning.
This week the Treasury will auction $98B in 2, 5 and 7-year notes. The additional supply will likely keep prices in check. When discussing rates with borrowers, make sure they are aware of the auctions and the potential upward pressure on rates that may occur.
The auctions begin on Tuesday. The Fed is going to pump another $750 billion in addition to the current $500 billion into purchasing mortgage backed securities. This buying pressure generally helps bond prices rise and rates fall over time. But remember that from a short-term perspective lower rates are not a given.
The Fed is not the only player in the game and buying/selling pressure can come from other fronts. The Fed has been the PRIMARY buyer here as of late and will continue in that role, but we could continue to see choppy trading as we did Friday afternoon as other traders make moves.
Dates for data to be released this week is as follows.
Monday Mar 23, 2009
Existing Home Sales-10:00 am
Tuesday Mar 24, 2009
2-Year Tres. Auction-1:00 pm
Wednesday Mar 25, 2009
Durable Goods Orders-8:30 am
New Home Sales-10:00 am
5 Year Tres. Note Auction-1:30 pm
Thursday Mar 26, 2009
Q4 GDP Final Revision-8:30 am
Friday Mar 27, 2009
7 Year Tres. Auction-1:30 am
Personal Income and Outlay-8:30 am
U of Mich. Consumer Sentiment-10:00 am
Rates will likely fluctuate tremendously through the week. It is best to have your applications in place with your lender and take advantage of low rates should they hit your target. Remember, try to hit the bottom 20% regarding rate, if you hold out to hit the very bottom, chances are you will end up higher than your target.
Have a great week.
This week the Treasury will auction $98B in 2, 5 and 7-year notes. The additional supply will likely keep prices in check. When discussing rates with borrowers, make sure they are aware of the auctions and the potential upward pressure on rates that may occur.
The auctions begin on Tuesday. The Fed is going to pump another $750 billion in addition to the current $500 billion into purchasing mortgage backed securities. This buying pressure generally helps bond prices rise and rates fall over time. But remember that from a short-term perspective lower rates are not a given.
The Fed is not the only player in the game and buying/selling pressure can come from other fronts. The Fed has been the PRIMARY buyer here as of late and will continue in that role, but we could continue to see choppy trading as we did Friday afternoon as other traders make moves.
Dates for data to be released this week is as follows.
Monday Mar 23, 2009
Existing Home Sales-10:00 am
Tuesday Mar 24, 2009
2-Year Tres. Auction-1:00 pm
Wednesday Mar 25, 2009
Durable Goods Orders-8:30 am
New Home Sales-10:00 am
5 Year Tres. Note Auction-1:30 pm
Thursday Mar 26, 2009
Q4 GDP Final Revision-8:30 am
Friday Mar 27, 2009
7 Year Tres. Auction-1:30 am
Personal Income and Outlay-8:30 am
U of Mich. Consumer Sentiment-10:00 am
Rates will likely fluctuate tremendously through the week. It is best to have your applications in place with your lender and take advantage of low rates should they hit your target. Remember, try to hit the bottom 20% regarding rate, if you hold out to hit the very bottom, chances are you will end up higher than your target.
Have a great week.
Wednesday, March 18, 2009
What does 2009 look like?
As many of you know, I have been on the "Now Is A Great Time To Buy" bandwagon. Here are some more reasons why if you are currently in the market to buy, you should buy. If you are renting, and think you want to buy, then talk with a mortgage lender to determine if and when you can buy.
The decision to buy has may factors related to it. Let's take a look at 2005 versus now, 2008-into early 2009. In 2005 there was a shortage of inventory (homes). There were historic low interest rates (a great thing). It was extremely difficult to find what you would like to call your dream home and as a buyer, you had absolutely no negotiating power. All of this equalled a fantastic sellers market and a not so good buyers market. Sellers were able to command the price they wanted for their home and buyers bought.....they bought a lot. In 2005, the average interest rate for the year was a mind boggling 5.84%. Imagine that, 5.84%, and REALTORS could not keep inventory in stock.
Now, let's fast forward to 2008-2009. There is a very large and diverse supply of homes on the market today. Inventory is plentiful. Rates, well they are again and remain at historic lows. The average through 2008 was 6.03%. Currently, for 2009, the average is at 5.09%. Today, you are looking at 4.875% for a 30 year fixed loan. The dream home, not as hard to find. With rates lower today than in 2005, and inventory a plenty, well, trouble is settling on one dream home. You as a buyer, the pendulum has swung from no negotiation power in 2005 to practically all the negotiation power in 2009.
This is more evidence of why today is the day for you to entertain buying. With good credit, in line debt to income, and assets and reserves in the bank, you are truly in the best position to buy your dream home. Don't delay, call your loan officer today.
Here is an interesting take that Dave Stevens, COO of the Long and Foster Companies posted a few weeks ago. It outlines some remarks from folks you might know. Enjoy!
The decision to buy has may factors related to it. Let's take a look at 2005 versus now, 2008-into early 2009. In 2005 there was a shortage of inventory (homes). There were historic low interest rates (a great thing). It was extremely difficult to find what you would like to call your dream home and as a buyer, you had absolutely no negotiating power. All of this equalled a fantastic sellers market and a not so good buyers market. Sellers were able to command the price they wanted for their home and buyers bought.....they bought a lot. In 2005, the average interest rate for the year was a mind boggling 5.84%. Imagine that, 5.84%, and REALTORS could not keep inventory in stock.
Now, let's fast forward to 2008-2009. There is a very large and diverse supply of homes on the market today. Inventory is plentiful. Rates, well they are again and remain at historic lows. The average through 2008 was 6.03%. Currently, for 2009, the average is at 5.09%. Today, you are looking at 4.875% for a 30 year fixed loan. The dream home, not as hard to find. With rates lower today than in 2005, and inventory a plenty, well, trouble is settling on one dream home. You as a buyer, the pendulum has swung from no negotiation power in 2005 to practically all the negotiation power in 2009.
This is more evidence of why today is the day for you to entertain buying. With good credit, in line debt to income, and assets and reserves in the bank, you are truly in the best position to buy your dream home. Don't delay, call your loan officer today.
Here is an interesting take that Dave Stevens, COO of the Long and Foster Companies posted a few weeks ago. It outlines some remarks from folks you might know. Enjoy!
Data for this morning, March 18, 2009
Mortgage bond prices are near unchanged mid-morning holding mortgage rates steady from pricing yesterday. Rates opened under pressure from stronger than expected inflation data only to recover when stocks opened lower.
In news released this morning consumer prices rose 0.4% in February while the core rate, which excludes the volatile food and energy costs rose 0.2%. Analysts’ estimates were for CPI to increase 0.3% and 0.1% respectively. Both the PPI and CPI data released for February were higher than expected.
Traders across the globe are concerned the massive amount of debt being issued by central banks here and abroad will ultimately lead to runaway inflation. The Federal Reserve ends their two-day meeting today with an announcement set for 2:15 pm ET.
The governing body is out of conventional policy ammo, however traders around the globe will be looking for signs of how they will continue to battle the financial crisis that is griping the world. One method widely discussed is the Fed purchase of long-term Treasury debt, similar to the MBS purchase plan currently in place. In terms of mortgage rates, thank goodness for the Fed. They are a major player in the purchase of MBS debt and have helped to keep mortgage rates low.
The Fed has purchased nearly 217B in MBS's since the program began, nearing the half way mark. With no more data set for release, traders will watch stocks while they wait for the outcome of the Fed meeting this afternoon. We expect the market to be thinly traded today adding to the volatility. Stay alert.
In news released this morning consumer prices rose 0.4% in February while the core rate, which excludes the volatile food and energy costs rose 0.2%. Analysts’ estimates were for CPI to increase 0.3% and 0.1% respectively. Both the PPI and CPI data released for February were higher than expected.
Traders across the globe are concerned the massive amount of debt being issued by central banks here and abroad will ultimately lead to runaway inflation. The Federal Reserve ends their two-day meeting today with an announcement set for 2:15 pm ET.
The governing body is out of conventional policy ammo, however traders around the globe will be looking for signs of how they will continue to battle the financial crisis that is griping the world. One method widely discussed is the Fed purchase of long-term Treasury debt, similar to the MBS purchase plan currently in place. In terms of mortgage rates, thank goodness for the Fed. They are a major player in the purchase of MBS debt and have helped to keep mortgage rates low.
The Fed has purchased nearly 217B in MBS's since the program began, nearing the half way mark. With no more data set for release, traders will watch stocks while they wait for the outcome of the Fed meeting this afternoon. We expect the market to be thinly traded today adding to the volatility. Stay alert.
Tuesday, March 17, 2009
Why buy a home in the New River Valley
Ok, we all watch the news and hear that our economy is not in the best of shape. Real Estate transactions are down, no one can credit to buy, the stock market is tanking blah, blah blah blah blah. Here is the thing, think about it like a sale. No one wants to buy something at full price. Of course, we would all like to buy things at the bare bottom price. But think about this. Rates are at 30 year lows. Today, a person can borrower money at 4.750% to buy a home. Home prices, while we in the New River Valley have been insulated to a degree, are at very attractive prices. Better than those prices per square foot that we were looking at three years ago. Yes, there is an expense to buy a house. Yes, you do pay alot of interest over the life of the loan. However, you OWN it. You also may receive a TAX DEDUCTION from your mortgage interest that you pay the bank. If you have private mortgage insurance as part of your loan, that to is Tax DEDUCTIBLE from your taxable income presently. Oh, and the biggy......you may qualify for a tax credit of up to $8,000.00 if you purchase before November 30, 2009. Can we say CHA-CHING?
Look folks, let's do a little basic math. Lets say you are a school teacher making $38,000.00 a year. You currently pay $1,000.00 a month in rent to the landlord who owns your house (and has a mortgage, and oh, by the way, is not paying the mortgage because YOU are). Anyway, that is another story. So, you have saved up $2,000.00 for a down payment on a new car. Your current car is ok, and only costing you $200.00 a month. You have another credit card that runs you around $50.00 a month. So, let's get to calculating.
USDA has a loan program that offers people 100% financing with no down payment and the seller can pay most if not all of the buyers closing costs. Hold off on buying that car for a moment.
You earn $38,000.00 a year. That equals around $3,166.66 per month. You have a car loan of $200.00 per month plus the credit card of $50.00 a month, and shoot, we'll throw in another incidental revolving debt around $100.00 per month. So, all told, your installment and revolving debts are about $350.00 a month.
We use up to 43% of your income to cover all of your debts, to include your new housing expense. Housing expense consists of principal repayment of the loan (P), interest payment on the loan (I), real estate taxes each month (T), and insurance collected each month (I)=PITI.
Your estimated new loan monthly payments on $150,000.00 would be around $782.47. This is the P and the I. Add taxes in the monthly amount of around $140.00 plus homeowners insurance in the amount of around $35.00 per month and you have a total housing expense of $957.47. Of course, this is based on a 30 year fixed rate loan with an interest rate of 4.750%/APR 5.148%.
You get the same payment and you own the house. You can paint the walls, mow the grass, add a room, whatever you want to do because it is yours. Oh, and the little discussed thing about making money. Here in the New River Valley, the appreciation of property over the past 5 years has been around 8.00%. The appreciation within the last 12 months has been around 2.00%. Not the declining market that you hear so much about in the media. If you plan on living in the area for 5 years or more, it absolutely makes sense to buy.
Why are you paying rent again?
Note: Dave Shelor is a Private Mortgage Banker with Prosperity Mortgage Company, a joint venture with Long and Foster Real Estate and Wells Fargo Home Mortgage, NA. There are multiple loan programs available for all types of situations. This program may not be the perfect fit for you, but another program may suit better. All representations made in this blog are for informational purposes only. You may or may not qualify for the loan scenario discussed here. To determine the loan program that you are best qualified for, please contact Dave directly. Prosperity Mortgage is an Equal Housing Lender.
Look folks, let's do a little basic math. Lets say you are a school teacher making $38,000.00 a year. You currently pay $1,000.00 a month in rent to the landlord who owns your house (and has a mortgage, and oh, by the way, is not paying the mortgage because YOU are). Anyway, that is another story. So, you have saved up $2,000.00 for a down payment on a new car. Your current car is ok, and only costing you $200.00 a month. You have another credit card that runs you around $50.00 a month. So, let's get to calculating.
USDA has a loan program that offers people 100% financing with no down payment and the seller can pay most if not all of the buyers closing costs. Hold off on buying that car for a moment.
You earn $38,000.00 a year. That equals around $3,166.66 per month. You have a car loan of $200.00 per month plus the credit card of $50.00 a month, and shoot, we'll throw in another incidental revolving debt around $100.00 per month. So, all told, your installment and revolving debts are about $350.00 a month.
We use up to 43% of your income to cover all of your debts, to include your new housing expense. Housing expense consists of principal repayment of the loan (P), interest payment on the loan (I), real estate taxes each month (T), and insurance collected each month (I)=PITI.
Your estimated new loan monthly payments on $150,000.00 would be around $782.47. This is the P and the I. Add taxes in the monthly amount of around $140.00 plus homeowners insurance in the amount of around $35.00 per month and you have a total housing expense of $957.47. Of course, this is based on a 30 year fixed rate loan with an interest rate of 4.750%/APR 5.148%.
You get the same payment and you own the house. You can paint the walls, mow the grass, add a room, whatever you want to do because it is yours. Oh, and the little discussed thing about making money. Here in the New River Valley, the appreciation of property over the past 5 years has been around 8.00%. The appreciation within the last 12 months has been around 2.00%. Not the declining market that you hear so much about in the media. If you plan on living in the area for 5 years or more, it absolutely makes sense to buy.
Why are you paying rent again?
Note: Dave Shelor is a Private Mortgage Banker with Prosperity Mortgage Company, a joint venture with Long and Foster Real Estate and Wells Fargo Home Mortgage, NA. There are multiple loan programs available for all types of situations. This program may not be the perfect fit for you, but another program may suit better. All representations made in this blog are for informational purposes only. You may or may not qualify for the loan scenario discussed here. To determine the loan program that you are best qualified for, please contact Dave directly. Prosperity Mortgage is an Equal Housing Lender.
Friday, March 13, 2009
Good Data turns Bad in a Heartbeat
Mortgage bond prices opened significantly lower this morning erasing the gains from yesterday afternoon and pushing rates higher. China's Premier expressed concerns about the US debt holdings they have. "We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at a news conference following the closing of China's annual legislative session. "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets."
The bottom line is these remarks were not what we needed and are terribly timed. When the largest holder of US debt is publicly expressing worries there are major concerns about the performance of all US debt instruments including mortgage bonds.
The trade deficit came in at $36.03 billion, not as high as the expected $38 billion deficit. Consumer sentiment data will be released later this morning.
Today is going to be rough based on China's remarks. If you have loans out there that are floating, and the risk is yours, I would suggest locking.
The bottom line is these remarks were not what we needed and are terribly timed. When the largest holder of US debt is publicly expressing worries there are major concerns about the performance of all US debt instruments including mortgage bonds.
The trade deficit came in at $36.03 billion, not as high as the expected $38 billion deficit. Consumer sentiment data will be released later this morning.
Today is going to be rough based on China's remarks. If you have loans out there that are floating, and the risk is yours, I would suggest locking.
Mortgage Rates Hold
Mortgage bond prices stayed positive yesterday afternoon following a positive 30 year auction and despite significant stock strength. The DOW closed up 240 points. The data yesterday morning was mixed. Positive MBS movement was mostly relief following the auction.
The 30-year auction bid to cover ratio was 2.40 stronger than the previous of only 2.02. Solid 46.2% indirect bid.
Retail sales fell 0.1%, not as weak as the expected 0.5% decrease. This didn't initially sit well with bonds.
Weekly jobless claims rose 654,000, higher than the expected 645,000 increase. Trade data and consumer sentiment data will be released this morning.
The 30-year auction bid to cover ratio was 2.40 stronger than the previous of only 2.02. Solid 46.2% indirect bid.
Retail sales fell 0.1%, not as weak as the expected 0.5% decrease. This didn't initially sit well with bonds.
Weekly jobless claims rose 654,000, higher than the expected 645,000 increase. Trade data and consumer sentiment data will be released this morning.
Wednesday, March 11, 2009
Free Credit Reports
I found the following information from the Federal Trade Commissions website. You can visit their site to read about more important information regarding your credit, identity protection and many other items at http://www.ftc.gov/
I hope this information is beneficial.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA with respect to consumer reporting companies.
A credit report includes information on where you live, how you pay your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.
Here are the details about your rights under the FCRA and the Fair and Accurate Credit Transactions (FACT) Act, which established the free annual credit report program.
Q: How do I order my free report?
A: The three nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.
To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on the back of this brochure; or you can print it from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months.
A Warning About “Imposter” Websites
Only one website is authorized to fill orders for the free annual credit report you are entitled to under law — annualcreditreport.com. Other websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.
Some “imposter” sites use terms like “free report” in their names; others have URLs that purposely misspell annualcreditreport.com in the hope that you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information.
Annualcreditreport.com and the nationwide consumer reporting companies will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message. It’s probably a scam. Forward any such email to the FTC at spam@uce.gov.
Q: What information do I need to provide to get my free report?
A: You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide consumer reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.
Q: Why do I want a copy of my credit report?
A: Your credit report has information that affects whether you can get a loan — and how much you will have to pay to borrow money. You want a copy of your credit report to:
make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.
help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud.
Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.
Q: How long does it take to get my report after I order it?
A: If you request your report online at annualcreditreport.com, you should be able to access it immediately. If you order your report by calling toll-free 1-877-322-8228, your report will be processed and mailed to you within 15 days. If you order your report by mail using the Annual Credit Report Request Form, your request will be processed and mailed to you within 15 days of receipt.
Whether you order your report online, by phone, or by mail, it may take longer to receive your report if the nationwide consumer reporting company needs more information to verify your identity.
There also may be times when the nationwide consumer reporting companies receive a high volume of requests for credit reports. If that happens, you may be asked to re-submit your request. Or, you may be told that your report will be mailed to you sometime after 15 days from your request. If either of these events occurs, the nationwide consumer reporting companies will let you know.
Q: Are there any other situations where I might be eligible for a free report?
A: Under federal law, you’re entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft. Otherwise, a consumer reporting company may charge you up to $10.50 for another copy of your report within a 12-month period.
To buy a copy of your report, contact:
Equifax:1-800-685-1111; equifax.com
Experian: 1-888-397-3742; experian.com
TransUnion: 1-800-916-8800; transunion.com
Under state law, consumers in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have free access to their credit reports.
Q: Should I order a report from each of the three nationwide consumer reporting companies?
A: It’s up to you. Because nationwide consumer reporting companies get their information from different sources, the information in your report from one company may not reflect all, or the same, information in your reports from the other two companies. That’s not to say that the information in any of your reports is necessarily inaccurate; it just may be different.
Q: Should I order my reports from all three of the nationwide consumer reporting companies at the same time?
A: You may order one, two, or all three reports at the same time, or you may stagger your requests. It’s your choice. Some financial advisors say staggering your requests during a 12-month period may be a good way to keep an eye on the accuracy and completeness of the information in your reports.
Q: What if I find errors — either inaccuracies or incomplete information — in my credit report?
A: Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take full advantage of your rights under this law, contact the consumer reporting company and the information provider.
Tell the consumer reporting company, in writing, what information you think is inaccurate.
Consumer reporting companies must investigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.
When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. (This free report does not count as your annual free report under the FACT Act.) If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.
Tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct — that is, if the information is found to be inaccurate — the information provider may not report it again.
Q: What can I do if the consumer reporting company or information provider won’t correct the information I dispute?
A: If an investigation doesn’t resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.
If you tell the information provider that you dispute an item, a notice of your dispute must be included any time the information provider reports the item to a consumer reporting company.
Q: How long can a consumer reporting company report negative information?
A: A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Q: Can anyone else can get a copy of my credit report?
A: The FCRA specifies who can access your credit report. Creditors, insurers, employers, and other businesses that use the information in your report to evaluate your applications for credit, insurance, employment, or renting a home are among those that have a legal right to access your report.
Q: Can my employer get my credit report?
A: Your employer can get a copy of your credit report only if you agree. A consumer reporting company may not provide information about you to your employer, or to a prospective employer, without your written consent.
For More Information
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To learn more about credit issues and protecting your personal information, visit ftc.gov/credit.
To file a complaint or to get free information on other consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
I hope this information is beneficial.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA with respect to consumer reporting companies.
A credit report includes information on where you live, how you pay your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.
Here are the details about your rights under the FCRA and the Fair and Accurate Credit Transactions (FACT) Act, which established the free annual credit report program.
Q: How do I order my free report?
A: The three nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.
To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on the back of this brochure; or you can print it from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months.
A Warning About “Imposter” Websites
Only one website is authorized to fill orders for the free annual credit report you are entitled to under law — annualcreditreport.com. Other websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.
Some “imposter” sites use terms like “free report” in their names; others have URLs that purposely misspell annualcreditreport.com in the hope that you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information.
Annualcreditreport.com and the nationwide consumer reporting companies will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message. It’s probably a scam. Forward any such email to the FTC at spam@uce.gov.
Q: What information do I need to provide to get my free report?
A: You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide consumer reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.
Q: Why do I want a copy of my credit report?
A: Your credit report has information that affects whether you can get a loan — and how much you will have to pay to borrow money. You want a copy of your credit report to:
make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.
help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud.
Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.
Q: How long does it take to get my report after I order it?
A: If you request your report online at annualcreditreport.com, you should be able to access it immediately. If you order your report by calling toll-free 1-877-322-8228, your report will be processed and mailed to you within 15 days. If you order your report by mail using the Annual Credit Report Request Form, your request will be processed and mailed to you within 15 days of receipt.
Whether you order your report online, by phone, or by mail, it may take longer to receive your report if the nationwide consumer reporting company needs more information to verify your identity.
There also may be times when the nationwide consumer reporting companies receive a high volume of requests for credit reports. If that happens, you may be asked to re-submit your request. Or, you may be told that your report will be mailed to you sometime after 15 days from your request. If either of these events occurs, the nationwide consumer reporting companies will let you know.
Q: Are there any other situations where I might be eligible for a free report?
A: Under federal law, you’re entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft. Otherwise, a consumer reporting company may charge you up to $10.50 for another copy of your report within a 12-month period.
To buy a copy of your report, contact:
Equifax:1-800-685-1111; equifax.com
Experian: 1-888-397-3742; experian.com
TransUnion: 1-800-916-8800; transunion.com
Under state law, consumers in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have free access to their credit reports.
Q: Should I order a report from each of the three nationwide consumer reporting companies?
A: It’s up to you. Because nationwide consumer reporting companies get their information from different sources, the information in your report from one company may not reflect all, or the same, information in your reports from the other two companies. That’s not to say that the information in any of your reports is necessarily inaccurate; it just may be different.
Q: Should I order my reports from all three of the nationwide consumer reporting companies at the same time?
A: You may order one, two, or all three reports at the same time, or you may stagger your requests. It’s your choice. Some financial advisors say staggering your requests during a 12-month period may be a good way to keep an eye on the accuracy and completeness of the information in your reports.
Q: What if I find errors — either inaccuracies or incomplete information — in my credit report?
A: Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take full advantage of your rights under this law, contact the consumer reporting company and the information provider.
Tell the consumer reporting company, in writing, what information you think is inaccurate.
Consumer reporting companies must investigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.
When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. (This free report does not count as your annual free report under the FACT Act.) If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.
Tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct — that is, if the information is found to be inaccurate — the information provider may not report it again.
Q: What can I do if the consumer reporting company or information provider won’t correct the information I dispute?
A: If an investigation doesn’t resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.
If you tell the information provider that you dispute an item, a notice of your dispute must be included any time the information provider reports the item to a consumer reporting company.
Q: How long can a consumer reporting company report negative information?
A: A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Q: Can anyone else can get a copy of my credit report?
A: The FCRA specifies who can access your credit report. Creditors, insurers, employers, and other businesses that use the information in your report to evaluate your applications for credit, insurance, employment, or renting a home are among those that have a legal right to access your report.
Q: Can my employer get my credit report?
A: Your employer can get a copy of your credit report only if you agree. A consumer reporting company may not provide information about you to your employer, or to a prospective employer, without your written consent.
For More Information
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To learn more about credit issues and protecting your personal information, visit ftc.gov/credit.
To file a complaint or to get free information on other consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
News and Notes for the Close-March 7, 2009
Mortgage bond prices closed near unchanged since pricing in relatively quiet trading this afternoon. The DOW surged 379 points this afternoon in the strongest showing this year. Recent headlines have Citigroup's CEO stating the company is having the best quarter since 2007. Generally stocks and bonds trade inversely, though not always the case. With the Fed continuing to funnel money into mortgage bonds as we continue to note by the billions, mortgage bonds were able to stem any additional losses today. The official stats aren't released until well after the fact. February 26 through March 4 the Fed pumped in $5.8 billion. They continue to buy mortgage bonds which is helping keep rates in check. We aren't seeing lower rates but we also have yet to see the typical spikes higher when stocks rally like they did today. So in effect, in the short term, they have been able to generally sustain rates at these levels.
The 3 year note auction this afternoon was slightly weaker than average. $34B of 3YR notes were auctioned with a 2.26 bid-to-cover and an indirect bid @ 40.3%. The long end of the market continued to slide following the auction.
A 10 year auction will take place Wednesday afternoon. A 30-year auction will take place Thursday. The additional supply, especially on the long end of the yield curve may make it a difficult week for mortgage rates. Treasury debt competes with mortgage-backed securities for available funds. Globally governments are issuing record debt to raise cash for the bailouts. One concern among traders is the amount of debt may overwhelm available investment dollars causing rates to spike to attract buyers. The more debt that gets issued both here and abroad makes this more likely.
The 3 year note auction this afternoon was slightly weaker than average. $34B of 3YR notes were auctioned with a 2.26 bid-to-cover and an indirect bid @ 40.3%. The long end of the market continued to slide following the auction.
A 10 year auction will take place Wednesday afternoon. A 30-year auction will take place Thursday. The additional supply, especially on the long end of the yield curve may make it a difficult week for mortgage rates. Treasury debt competes with mortgage-backed securities for available funds. Globally governments are issuing record debt to raise cash for the bailouts. One concern among traders is the amount of debt may overwhelm available investment dollars causing rates to spike to attract buyers. The more debt that gets issued both here and abroad makes this more likely.
Friday, March 6, 2009
30 Year Historcial Average Chart
Hello folks,
Look at the data on the graph and think about where your parents.....your grandparents rates were when they bought. Imagine if you will, having that rate with a mortgage of today. Grab the American Dream the correct way, not with Alt A or sub prime loans, but with using good sense. That is my way. That is Prosperity's way.
For more information on achieving the American Dream, please visit me at http://www.daveshelor.net/. There you will find newsletters, calculators and other information to assist you with your interests. I can also help find you a REALTOR who believes in the same principals as I. We are here to serve you.
Take a look at this chart. We have been saying for sometime that now is truly the time to buy. Today more than ever is it a great time to buy. In reviewing the attached chart from Freddie Mac, remember this is simply the average 30 year conventional fixed rate published by Freddie Mac.
The graph is better because it simply puts rates into a picture format. Lowest historical rates, prices in many markets creating opportunity, and tax credits for first time home buyers – there is a huge market to approach. I want to help you achieve the American Dream. Achieving this dream correctly, with affordability, responsibility, and accountability. Putting you into a loan program that places you into a risk of losing the home is not my business.
I don't do this kind of work to turn transactions, I do this to assist others in achieving the American Dream. Renting is not a great long term answer. It is a payment that can go up (like an adjustable rate) and gives no equity nor tax deduction. Timing the market is hard, but there is enormous opportunity for those truly thinking of buying. With rates today closing in the mid 4's, now is the time to buy.
Look at the data on the graph and think about where your parents.....your grandparents rates were when they bought. Imagine if you will, having that rate with a mortgage of today. Grab the American Dream the correct way, not with Alt A or sub prime loans, but with using good sense. That is my way. That is Prosperity's way.
For more information on achieving the American Dream, please visit me at http://www.daveshelor.net/. There you will find newsletters, calculators and other information to assist you with your interests. I can also help find you a REALTOR who believes in the same principals as I. We are here to serve you.
Hang On Tight, the Roller Coaster Ride is Back!
Mortgage bond prices are lower mid-morning erasing some of the gains seen yesterday afternoon. Rates are under pressure from positive stocks and worries about the upcoming Treasury auction next week.
In news released this morning, unemployment in February stood at 8.1% and non-farm payrolls fell 651,000. Analysts were expecting unemployment to stand at 7.9% and for the economy to have lost 650,000 jobs. Also, there were downward revisions to previous months data. The jobs market looks awful.
With no more data set for release today, traders will watch stocks to help determine interest rate direction. Be very careful this afternoon.
Next week the Treasury is set to auction 3, 10 and 30-year bonds. The additional supply, especially on the long end of the yield curve may make it a difficult week for mortgage rates. Treasury debt competes with mortgage-backed securities for available funds. Globally governments are issuing record debt to raise cash for the bailouts. One concern among traders is the amount of debt may overwhelm available investment dollars causing rates to spike to attract buyers. The more debt that gets issued both here and abroad makes this more likely. The auctions occur next Tuesday, Wednesday and Thursday.
In news released this morning, unemployment in February stood at 8.1% and non-farm payrolls fell 651,000. Analysts were expecting unemployment to stand at 7.9% and for the economy to have lost 650,000 jobs. Also, there were downward revisions to previous months data. The jobs market looks awful.
With no more data set for release today, traders will watch stocks to help determine interest rate direction. Be very careful this afternoon.
Next week the Treasury is set to auction 3, 10 and 30-year bonds. The additional supply, especially on the long end of the yield curve may make it a difficult week for mortgage rates. Treasury debt competes with mortgage-backed securities for available funds. Globally governments are issuing record debt to raise cash for the bailouts. One concern among traders is the amount of debt may overwhelm available investment dollars causing rates to spike to attract buyers. The more debt that gets issued both here and abroad makes this more likely. The auctions occur next Tuesday, Wednesday and Thursday.
Thursday, March 5, 2009
Mortgage Rates are trending lower this morning
Mortgage rates appear to be trending lower this morning for purchases. If you have a credit score above 730, you can lock in a 30 year fixed rate for around 4.875%. Pay a discount point, and you are in the 4.625% range. 15 Year mortgages are trending in the 4.625% range and 4.375% with a discount point.
Below represents the rate swing for the last 30 days as it relates to 30 year fixed mortgages.
You will notice that the high for the last 30 days has topped around 6.500%, and the low is currently where we are today.
Tha market swings tremendously through the days. If you are in the market, don't get caught trying to time the bottom. Rates are at historic lows....take advantage of them today.
Below represents the rate swing for the last 30 days as it relates to 30 year fixed mortgages.
You will notice that the high for the last 30 days has topped around 6.500%, and the low is currently where we are today.
Tha market swings tremendously through the days. If you are in the market, don't get caught trying to time the bottom. Rates are at historic lows....take advantage of them today.
Market better by .250% of a discount point
Currently, mortgage rates are better by .250% of a discount point. The stock market has opened down 99 points, and trading fears are in a sell off right now, running to the security of Treasuries. If this holds till pricing is set at 11:00 am, we could see a slight improvement in long term interest rates when interest rates are released at 11:00.
As in past days, the market can swing tremendously in a matter of minutes. Rates will fluctuate until the time a rate and program is locked in.
As in past days, the market can swing tremendously in a matter of minutes. Rates will fluctuate until the time a rate and program is locked in.
Market Data for Thursday, March 5, 2009
Mortgage bonds opened higher Thursday adding to the gains seen Wednesday afternoon. Rates are finding support from global weakness in the equity markets.
In news released this morning, Q4 productivity fell 0.4%, sharply lower than expectation for an increase 1.5%. Previously productivity rose 3.4%, leaving traders wondering how accurate the decline seen today really is. Also, unit labor costs spiked 5.7% vs. the expected 3.4% increase.
Traders are now waiting for stocks to begin trade at 9:30 am ET and for the release of factory orders data set for 10:00 am ET.
Next week the Treasury is set to auction 3, 10 and 30-year bonds. They will announce the size of the auctions today. The additional supply, especially on the long end of the yield curve may make it a difficult week for mortgage rates. Treasury debt competes with mortgage-backed securities for available funds. Globally governments are issuing record debt to raise cash for the bailouts. One concern among traders is the amount of debt may overwhelm available investment dollars causing rates to spike to attract buyers. The more debt that gets issued both here and abroad makes this more likely. The auctions occur next Tuesday, Wednesday and Thursday.
Tomorrow brings the monthly employment report. It is without a doubt the 800-pound gorilla of all economic data. Traders will begin prepare for the release later this afternoon which may cause some volatility. Current expectations are for the unemployment rate to stand at 7.9% and non-farm payrolls to shed 650,000 jobs.
In news released this morning, Q4 productivity fell 0.4%, sharply lower than expectation for an increase 1.5%. Previously productivity rose 3.4%, leaving traders wondering how accurate the decline seen today really is. Also, unit labor costs spiked 5.7% vs. the expected 3.4% increase.
Traders are now waiting for stocks to begin trade at 9:30 am ET and for the release of factory orders data set for 10:00 am ET.
Next week the Treasury is set to auction 3, 10 and 30-year bonds. They will announce the size of the auctions today. The additional supply, especially on the long end of the yield curve may make it a difficult week for mortgage rates. Treasury debt competes with mortgage-backed securities for available funds. Globally governments are issuing record debt to raise cash for the bailouts. One concern among traders is the amount of debt may overwhelm available investment dollars causing rates to spike to attract buyers. The more debt that gets issued both here and abroad makes this more likely. The auctions occur next Tuesday, Wednesday and Thursday.
Tomorrow brings the monthly employment report. It is without a doubt the 800-pound gorilla of all economic data. Traders will begin prepare for the release later this afternoon which may cause some volatility. Current expectations are for the unemployment rate to stand at 7.9% and non-farm payrolls to shed 650,000 jobs.
Wednesday, March 4, 2009
Data at the opening bell, March 4, 2009
Mortgage bond prices are slightly lower mid-morning Wednesday erasing a small portion of the gains seen Tuesday afternoon. Rates are under pressure from positive stocks.
In news released this morning, the ADP payroll data indicated a non-farm payroll loss of 697,000 jobs. This number is near the BLS estimate for a job loss of 675,000 when the payroll report is released Friday.
Trades will spend the day watching stocks as they await the release of Fed Beige book data. The Fed Beige book details economic conditions in the Mid-Atlantic region and will be released at 2:00 pm ET.
Next week the Treasury is set to auction 3, 10 and 30-year bonds. They will announce the size of the auctions Thursday. The additional supply, especially on the long end of the yield curve may make it a difficult week for mortgage rates. Treasury debt competes with mortgage-backed securities for available funds. Globally governments are issuing record debt to raise cash for the bailouts. One concern among traders is the amount of debt may overwhelm available investment dollars causing rates to spike to attract buyers. The more debt that gets issued both here and abroad makes this more likely. The auctions occur next Tuesday, Wednesday and Thursday.
On the data front, Friday brings the monthly employment report. It is without a doubt the 800-pound gorilla of all economic data. Traders will begin to focus on the release today, which can cause some volatility. Current expectations are for the unemployment rate to stand at 8.00% and non-farm payrolls to shed 675,000 jobs.
In news released this morning, the ADP payroll data indicated a non-farm payroll loss of 697,000 jobs. This number is near the BLS estimate for a job loss of 675,000 when the payroll report is released Friday.
Trades will spend the day watching stocks as they await the release of Fed Beige book data. The Fed Beige book details economic conditions in the Mid-Atlantic region and will be released at 2:00 pm ET.
Next week the Treasury is set to auction 3, 10 and 30-year bonds. They will announce the size of the auctions Thursday. The additional supply, especially on the long end of the yield curve may make it a difficult week for mortgage rates. Treasury debt competes with mortgage-backed securities for available funds. Globally governments are issuing record debt to raise cash for the bailouts. One concern among traders is the amount of debt may overwhelm available investment dollars causing rates to spike to attract buyers. The more debt that gets issued both here and abroad makes this more likely. The auctions occur next Tuesday, Wednesday and Thursday.
On the data front, Friday brings the monthly employment report. It is without a doubt the 800-pound gorilla of all economic data. Traders will begin to focus on the release today, which can cause some volatility. Current expectations are for the unemployment rate to stand at 8.00% and non-farm payrolls to shed 675,000 jobs.
Tuesday, March 3, 2009
To Buy or Not To Buy.....That is the Question
Seriously, if you are considering buying a home, and have been on the fence as to whether or not to deal, then you should have your head examined. Just kidding, forgo the head examination, but do give your REALTOR a call.
Here is the deal. If you have money, a good job, and have taken care of your credit profile and have a score better than say 680, now is a great time to buy. There are a plethora of properties for sale in our great New River Valley, and there are some really great deals to be had as well. Now I am not talking about refurb's, foreclosures or short sales, I am talking about good ole listings.
Real estate sales have sagged slightly over the last 18 months. Credit tightening has also frozen some abilities for buyers to purchase there home. The days of the 80/20's, no doc's, liars loans.....well, they are all gone. However, If you can buy real estate now, then this is truly a fantastic investment into your future. If you can buy a home that is undervalued, then really, how green can green get for ya?
Mortgage rates have dropped to near all time lows again. Actually, it has been a see saw of rate elevations and falls for the last 12 months. It used to be that you could set for a rate, watch, and typically get it within a four to six hour period. Those days are gone. With the volatility in the bond market today, instead of waiting for a specific rate, you need to give your person a range, say .250% range to lock you in at. Why you ask? I will use Thursday as an example. At 1:15, rates dipped to 4.500% for a 30 year purchase mortgage. It went to 5.00% in 40 minutes, and closed out the day at 5.125%. I used to call folks an let them know about the rates, have a lengthy discussion and then lock all those folks in at their desired rate. Now, you need to have everything in place with your mortgage lender ahead of time, give them a range, and then let them lock you in. While you may not get the bottom rate available, I can assure you that you will be in the range.
Let me tell you something. The market will turn around. As a buyer, if you act now rather than waiting, you will be taking advantage of the near bottom of this great buying opportunity. You will be poised to see some of the best returns that will be available in the future. When folks start buying, then the market begins to stimulate. When you stimulate, rest assured that 2 things are going to occur. Home values (and prices) will go up, and mortgage rates will go up as well. Don't get caught in the conundrum of pricing the bottom. By the times the news promotes the fact that all things known as the markets improve, it will be to late.
To view a 2 year history of sales in our area, please visit Marshall Anderson, Louise Baker, and Rhonda Melton at their blog, http://blog.nrvhomes.com/. Marshall has placed a comparables analysis for your review. Thank you Marshall for the information. Great Job.
Here is the deal. If you have money, a good job, and have taken care of your credit profile and have a score better than say 680, now is a great time to buy. There are a plethora of properties for sale in our great New River Valley, and there are some really great deals to be had as well. Now I am not talking about refurb's, foreclosures or short sales, I am talking about good ole listings.
Real estate sales have sagged slightly over the last 18 months. Credit tightening has also frozen some abilities for buyers to purchase there home. The days of the 80/20's, no doc's, liars loans.....well, they are all gone. However, If you can buy real estate now, then this is truly a fantastic investment into your future. If you can buy a home that is undervalued, then really, how green can green get for ya?
Mortgage rates have dropped to near all time lows again. Actually, it has been a see saw of rate elevations and falls for the last 12 months. It used to be that you could set for a rate, watch, and typically get it within a four to six hour period. Those days are gone. With the volatility in the bond market today, instead of waiting for a specific rate, you need to give your person a range, say .250% range to lock you in at. Why you ask? I will use Thursday as an example. At 1:15, rates dipped to 4.500% for a 30 year purchase mortgage. It went to 5.00% in 40 minutes, and closed out the day at 5.125%. I used to call folks an let them know about the rates, have a lengthy discussion and then lock all those folks in at their desired rate. Now, you need to have everything in place with your mortgage lender ahead of time, give them a range, and then let them lock you in. While you may not get the bottom rate available, I can assure you that you will be in the range.
Let me tell you something. The market will turn around. As a buyer, if you act now rather than waiting, you will be taking advantage of the near bottom of this great buying opportunity. You will be poised to see some of the best returns that will be available in the future. When folks start buying, then the market begins to stimulate. When you stimulate, rest assured that 2 things are going to occur. Home values (and prices) will go up, and mortgage rates will go up as well. Don't get caught in the conundrum of pricing the bottom. By the times the news promotes the fact that all things known as the markets improve, it will be to late.
To view a 2 year history of sales in our area, please visit Marshall Anderson, Louise Baker, and Rhonda Melton at their blog, http://blog.nrvhomes.com/. Marshall has placed a comparables analysis for your review. Thank you Marshall for the information. Great Job.
Monday, March 2, 2009
Market Conditions for this Snowy Monday Morning
Due to the inclement weather, our offices in the New River Valley will be closed today. I am working from home so feel free to reach me via my mobile at 540-250-6002.
Mortgage bond prices remain higher mid-morning Monday erasing the losses seen Friday and more. Rates are finding support from weak stocks where the DOW Jones index opened in the 6,000 handle.
In news released this morning, personal income rose 0.4% and outlays rose 0.6%. Traders were expecting income to fall 0.3% and outlays to rise 0.3%. Also, the Institute for Supply Management (ISM), an indication of manufacturing strength stood at 35.8, near estimates.
With no more data set for release, traders will watch stocks and headline news to help gauge interest rate direction.
Below is the weeks trading event calendar from March 2nd to March 6th.
Event Calendar:
Monday, Mar 2, 2009
Personal Income and Outlays
Monday, Mar 2, 2009
Construction Spending
Monday, Mar 2, 2009
ISM Index
Wednesday, Mar 4, 2009
ADP Employment
Wednesday, Mar 4, 2009
Fed Beige Book
Thursday, Mar 5, 2009
Revised 4Q Productivity
Thursday, Mar 5, 2009
Factory Orders
Friday, Mar 6, 2009
Employment
Mortgage bond prices remain higher mid-morning Monday erasing the losses seen Friday and more. Rates are finding support from weak stocks where the DOW Jones index opened in the 6,000 handle.
In news released this morning, personal income rose 0.4% and outlays rose 0.6%. Traders were expecting income to fall 0.3% and outlays to rise 0.3%. Also, the Institute for Supply Management (ISM), an indication of manufacturing strength stood at 35.8, near estimates.
With no more data set for release, traders will watch stocks and headline news to help gauge interest rate direction.
Below is the weeks trading event calendar from March 2nd to March 6th.
Event Calendar:
Monday, Mar 2, 2009
Personal Income and Outlays
Monday, Mar 2, 2009
Construction Spending
Monday, Mar 2, 2009
ISM Index
Wednesday, Mar 4, 2009
ADP Employment
Wednesday, Mar 4, 2009
Fed Beige Book
Thursday, Mar 5, 2009
Revised 4Q Productivity
Thursday, Mar 5, 2009
Factory Orders
Friday, Mar 6, 2009
Employment
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