Dennis' Mortgage Blog

September 21st, 2007 1:58 PM
Don't forget to send your clients to my Mortgage Blog for articles on the market and mortgages, check it out yourself as well! Today I wrote on the lack of news/commentary against any Fed bailout scenario for homeowners facing foreclosure, you may find it interesting and thought provoking.
 
No real surprise that immediately following the Fed rate drop on Tuesday we saw very positive gains in bonds on Wednesday, also not much of a surprise that after a day of commentary and digestion the market took it all back and more yesterday.  Why?  Bond investors do not really care about the details, they care about the long term trends and possibilities.  The consensus on Wednesday was along the lines of my "Fed Cut" (posted on blog) email to you on Tuesday.  The rate cut will do little for the housing markets, it was not necessary economically and was psycologically based.  Because of this economists and analysts see the rate cut as inflationary and that after a short time the Fed will need to reverse the cut and raise the rates back to where they were.  Get 'em while ther' hot.  Between the big run up in prices (and corresponding downturn in rates) on Wednesday traders were able to sell off big today and make a profit for most of the day.  Result: higher rates.
 
The move by Congress to increase FHA limits and eliminate the down payment requirement as well as bonding for brokers/lenders will also have minimal impact on the intended target market: sub-prime borrowers in foreclosure; however it could free up more qualified buyers in areas such as Southern California with high median housing rates.  The borrowers must still qualify however and that is increasingly difficult with the lending criteria changing daily. 
 
With no solutions forthcoming for Jumbo and non-conforming mortgage products, and attractive investments in both equities and bonds, Jumbo rates have taken it on the chin this week and conforming rates are up slightly.
 
30 Yr. Fixed Conforming with 10% or more down: 6.125% at 1.00 point
30 Yr. Fixed Jumbo with 10% or more down: 7.25% at 1.00 point  **
 
Note these are for 30 day locks, purchase transactions with 10% or more down and strong FICO's. 
 
***PLEASE NOTE*** "Jumbo" for this rate graph is for mortgages identical to those mortgages that fit Fannie Mae and/or Freddie Mac guidelines with the exception of loan amount greater than $417,000.  "Non-conforming" mortgages may be below the $417,000 loan amount and are so designated depending on may factors, including but not limited to FICO scores, income and/or asset verification, etc.
 
This market requires constant communication between all parties: borrower, agent, broker, lender, seller... do not assume anything will happen or will stay the same.  Encourage all parties to act with expediency and diligence to close as soon as all parties are able.  And above and beyond all else, remember home ownership is a wonderful thing.  While it may not seem like it in some markets, we have the greatest opportunity for families to become homeowners than any country in the world...in fact 68% of Americans live in their own home.  This is something those of us in the industry need to be proud of, knowing regardless of the market conditions we are still helping families achieve the American Dream.
 
Let me know how I can assist you and your clients.   Be sure to send them to www.DennisCSmith.com for rates, to apply for mortgages, and a lot of great information on loans and mortgages.
 
 
Dennis
Friday, September 21, 2007
Posted by Dennis C. Smith on September 21st, 2007 1:58 PMPost a Comment (0)
Recent Posts:
Archive:
My Favorite Blogs:
Sites That Link to This Blog:

LICENSING:

Dennis C. Smith,  California Dept. of Real Estate Broker #00966315; NMLS #296660

Stratis Financial Corporation, California Dept. of Real Estate Broker #01269597; NMLS #238166


Stratis Financial Corporation 5772 Bolsa Ave #250 Huntington Beach, CA 92649
Phone: Fax:

Contact Us | Dennis' Bio | Testimonials | Truth-In-Lending Disclosure Explained | New Good Faith Estimate | Social Media | Tell a Friend | Home | Loan App Checklist | Site Map | Loan Application | Mortgage Calculators | Customer Login | Are You Pre-Approved? | Daily Rate Lock Advisory | My Blog

Copyright © 2013 Stratis Financial Corporation
Portions Copyright © 2013 a la mode, inc.
Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map