Dennis' Mortgage Blog

June 24th, 2016 11:12 AM


It’s that time of year, our 5th Annual Flag Collection and Retirement will take place on Friday July1st!


Question of the week: What impact does the Brexit vote have on mortgages?

Answer: Kicking myself a bit as I should have had this question ready to go with a reply and save some time this Friday morning, however I was lazy and didn’t want to pre-write an answer assuming the outcome would be what it was on the Brexit vote.

First, for those not following the international news that closely, what is “Brexit?” Following the modern tradition of mash-ups of couples names, think Brangelina, Bennifer, etc (thought to self, will Leslie go along with Denslie or Lesnis….), Brexit is a mash-up of British Exit.

Exit what? The European Union, which consists of 28 countries, soon to be 27, who operate as a single market allowing free movement of goods, services and people between member nations. Britain joined the pre-cursor to the EU, the European Community, in 1967. In 1991 a new treaty was signed creating the European Union which created the Euro currency—the Prime Minister of Great Britain was able to get an opt out clause for Britain. The new European Union went on-line so to speak in 1993 and the Euro introduced in January 2002.

Yesterday a referendum was held in Great Britain (England, Wales, Scotland and North Ireland) for the people to vote to remain in or exit from the European Union. The final tally was 52% in favor of leaving and 48% for remaining (for numbers folks, differential was 1.3 million for roughly 33.5 million votes cast). Prior to the vote polls were going back and forth as to which side was leading, creating a surprise in the final tally and the substantial win for those punching “Leave” on their ballot.

Britain leaving the EU will obviously impact their economy and that of nations remaining in the association, but will it impact the United States economically and to the question above our mortgage rates—and therefore housing markets?

Yes there will be an impact and it is already occurring. On news of the Leave victory investors began reacting quickly and in large ways selling off European investments, currencies, bonds, stocks. Spilling other markets around the globe we saw equity (stock) markets down around the world, with American stock exchanges currently down from 2-3% (as of 1:00 pm Eastern), having opened down and holding steady on initial losses.

Where does the money go? As I have discussed before in the Weekly Rate & Market Update, when there is turmoil, danger or disaster investors engage in what is known as “flight to quality.” This means they sell volatile investments, like stocks, and purchase safe investments, such as bonds and mortgages for their fixed, and if U.S. Treasury bills and bonds and mortgages practically guaranteed, returns.

This morning our Mortgage Backed Securities (MBS) markets opened with the biggest gap up from the prior day close that I can remember. (Sidebar for those not familiar with MBS. When prices go up, rates go down; prices go down, rates go up. When we open with a large gap up or down then rates will be lower or higher correspondingly.) Why? Money flowing in overnight from the sale of other assets into the safety of the U.S. fixed income markets.

Interestingly is the reaction of lenders to the sudden drop in rates is a hold back on much of the drop for two reasons: first, caution that there is not a reversal when the initial panic of “what now” subsides and calm and rational analysis of the timing of the British exit and impact on markets is better understood. Second, lenders need to control their volume of applications they can realistically process and close within the periods of the rate locks they are accepting. Let’s say you make bicycles and your company can fill an order in 30 days, guaranteed, and your capacity for filling bicycles on the 30 day guarantee is to take in 10 orders per day. You want to have a sale and lower your prices to increase business. How low can you lower your prices to guarantee the 30 day delivery even if everyone works 2-3 hours overtime every day and weekends? Can you handle 15 orders per day, an increase of 50%, 12 orders, 17?

That is the reality of our market the next few days while everything sorts out, a balance between rates and ability to handle the volume of rate locks that will come in as homeowners who were on the cusp of refinancing last week are now seeing it makes more sense.

The initial reaction is usually an over-reaction to any significant event, remember when Golden State blew out Cleveland in the first two games of the NBA and the consensus was the Warriors would coast to another championship? Over-reaction to immediate events.

Moving forward what impact will Brexit have on our industry? It will provide more support for lower rates further into the future. There may be economic ramifications on an already ailing European economy that could exacerbate a recession. Our economy has not exactly been running at high speed growing 1-2% since the end of the recession in June 2009, so any further drop in Europe could pull us down further.

Lower rates should support the housing recovery that has been on-going for many years (median prices in Southern California near the all-time 2007 highs), which has been a major factor in our positive economic growth. With housing inventory currently very low and prices rising lower rates make those higher prices more affordable to more people.

As we watch the unfolding of the aftermath of Brexit the same fundamentals will apply in regards to mortgage rates: when rates are at or near all-time lows do not try to beat the current market and see if you can gain a little bit more. The savings will be incrementally smaller and the risk of a bounce up will show a larger rise in rates than any potential drop. In other words: Lock when you can.

If you want your current mortgage situation analyzed please give me a call and we can run your numbers. When you do so please have ready your current mortgage balance, interest rate and payment (if you have mortgage insurance, taxes and/or insurance included in your payment have that broken down). Or just email me your mortgage statement and I will punch the calculator.

I have many opinions on why the referendum in Great Britain to leave the European Union passed, will not bore those who do not care in this communication, but if you would like to discuss feel free to contact me—I always enjoy engaging with others and their opinions on economic and political issues!

Have a question? Ask me!

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

Rates for Friday June 24, 2016: There was not a lot of other economic news this week impacting mortgage rates—and if there were it would not have the impact of Brexit. Today’s move in MBS markets mitigated drop yesterday as investors hedged against a “Remain” vote, however momentum is for lower rates. For now we are flat from last Friday, and for the third week in a row.


FIXED RATE MORTGAGES AT COST OF 1.25 POINTS
30 year conforming 3.375% Flat
30 year high-balance conforming 3.50% Flat
30 year FHA 3.25% *** Flat
30 year FHA high-balance 3.25% *** Flat

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs, recent rate change reduces credits



I have the annual reminder banner across the top of this communication but know many people read this section of the Weekly Rate & Market Update so want to repeat. Next Friday will be our 7th Annual Flag Collection and Retirement Ceremony. We will be located in the parking lot of Georgie’s Place on the southeast corner of Atlantic and Roosevelt in the Bixby Knolls section of Long Beach. We will be set up and ready to accept you old flag that needs to be retired around 5:30 (if you have a cloth flag that has meaning to you and needs retiring let me know and we may use it in our ceremony). Around 7:30 the scouts from Boy Scout Troop 29 will conduct a flag retirement ceremony, if you have never observed one it is pretty neat to observe—if you have kids this is a great show for them to see how the flag is respected and treated. The ceremony lasts about 15-20 minutes.

Have a great week,


Dennis

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Posted by Dennis C. Smith on June 24th, 2016 11:12 AMLeave a Comment

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June 17th, 2016 12:14 PM

It’s that time of year, our 5th Annual Flag Collection and Retirement will take place on Friday July1st!


Question of the week: We are thinking about putting in solar panels and a contractor is pressuring us to use the HERO program, what do you think?

Answer: I think putting in solar panels could be a really good idea. If you do I suggest purchasing the solar system instead of leasing, as I have discussed here.

One way of financing the solar system is to use the HERO program (Home Energy Renovation Opportunity) offered to home owners who wish to make energy efficient renovations to their home. The HERO program is a financing program but instead of paying a lender for the loan you make payments through your property taxes. The amount financed is placed as a lien on your property and when you receive your annual tax bill there is a line item for HERO to include principal and interest payments.

If you and your contractor meet the criteria you could be eligible for financing through the HERO program and funding is provided through local municipal entity by private sources who manage the program.

Sounds easy, and it appears that it is pretty easy. Get your renovation approved, get your money, make your payment twice a year when you pay your property taxes.

But is it a good way to finance your energy efficient renovations? Perhaps.

Some major factors to consider before using HERO are cost and the lien.

There is a 4.99% fee added to your assessment for administrative costs (so if your financing $20,000 for solar system your assessment becomes $20,998. Currently the rate on the program has an APR of 7.99%. You may choose an amortization period of 5, 10, 15 or 20 years.

Because the financing lien is part of your property taxes and not a trust deed against the property, like your mortgage, it presents different options—or problems—when it comes time to sell or refinance the property. You and your buyer may agree for the buyer to assume the balance of the HERO assessment, or you may need to pay it off as part of the sale. If refinancing the lender will include the payment as part of qualifying and also ensure the lien will not be called due sooner than in the agreement.

Before signing up for the HERO program to finance home improvements or renovation check with other financing sources, such as an equity line from your bank or credit union, or if depending on your current mortgage rate perhaps we can help with a new mortgage.

The HERO program has some positives but it is expensive and could be cumbersome to obtain depending on the application and approval process with your local HERO provider.

Here is website with more information on HERO

Have a question? Ask me!

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

We are borrowing more. That is the news from the Federal Reserve which released data on first quarter household debt in the U.S. Total household debt on April 1st was 1.1% higher than it was at the end of the fourth quarter and totaled $12.25 trillion (point of reference, U.S. Treasury debt is currently $19.29 trillion, California’s debt is $430 billion). Mortgages and home equity lines of credit about 72% of the debt total. The balance is primarily student loans (11%), auto loans (9%) and credit cards (6%). The news is somewhat negative for mortgage rates as it shows a growing demand for household debt, which spurs real estate sales, which boosts the economy and strong economic growth leads to higher rates.

Plenty of data this week for fellow econ geeks like myself. Retail sales for May had some good growth, up 0.5% from April, following April’s very strong 1.3% increase. Since consumer spending is 65-70% of our economy strong retail sales can push rates higher.

How much is being paid for goods and services? Data released this week indicates prices are rising for wholesalers, with the Producer Price Index up 0.4% in May, and consumers, with Consumer Prices up 0.2%. The news is somewhat good, but the year over year CPI increase of only 1% is positive for low rates as it signifies relatively stagnant prices, and is well below the Federal Reserve target inflation rate of 2%.

Speaking of the Fed….Wednesday was Fed day as it open market committee meeting finished up with the result being no change by the Fed for its key interest rate. The Fed may have held steady to its discount rate but did not hold steady to its economic outlook. Indicating that it anticipated two more rate hikes this year, the announcement indicated rate increases would be slower in the future as economic and price increases are expected to be less than 2% looking forward. This is positive news for mortgage rates.

Rates for Friday June 17, 2016: Rates held firm this week from last, we are now three weeks into matching our lowest rates of the past several years. Take advantage of these rates! If your rate is 4% or higher contact me to see if we can lower your rate, payments or term of your mortgage.


FIXED RATE MORTGAGES AT COST OF 1.25 POINTS
30 year conforming 3.375% Flat
30 year high-balance conforming 3.50% Flat
30 year FHA 3.25% *** Flat
30 year FHA high-balance 3.25% *** Flat

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs, recent rate change reduces credits



We are officially a Long Beach Poly only house as our 8th grader completed middle school yesterday and is looking forward to joining her sister next year at the home of the Jackrabbits. Summer stretches endlessly before them this morning, to celebrate we will be hosting a dozen or more new freshman this afternoon and evening for pool and barbecue party…presume it may be a bit quieter at your home!

Have a great week,


Dennis

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Posted by Dennis C. Smith on June 17th, 2016 12:14 PMLeave a Comment

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June 10th, 2016 3:41 PM


It’s that time of year, our 5th Annual Flag Collection and Retirement will take place on Friday July1st!




Question of the week: Can rates get any lower?

Answer: Maybe.

Rates are currently near their all-time lows seen in 2012. Can the conforming rate hit the 3.125% we experienced for eight straight weeks and thirteen of the final fourteen weeks of 2012?

Here are reasons why rates may go lower and reasons why they may not:

Rates may go lower because the economy is still not growing with any strength.

Rates may go lower because the latest employment reports show a slowing in job growth which could be predecessor to a contraction in employment.

Rates may go lower because of the global economy and markets, for instance the German Bund, their ten year bond, has reached zero percent interest, and Japan’s central bank has had negative interests rates for several months.

Rates may go lower because corporate profits, while up slightly in the first quarter after declining in 2015 for the first time since the Great Depression, are not growing.

Rates may not go lower because some segments of the economy, like housing, are doing well and may pull the rest of the economy’s growth upward.

Rates may go up because if the economy does begin the more robust growth many anticipate then employment will grow.

Rates may go up because perhaps the zero to negative rates in Japan and Europe may result in economic growth.

Rates may go up if the U.S. economy grows increasing corporate profits.

You will notice there are no comments about the Federal Reserve and what decisions they may make with the discount rate. The expectation is that we will see another 0.25% rate increase from the Fed this summer. Remember though that mortgage rates move independently of the Fed. Rates are lower now than when the Fed raised its rate in December for the first time in nine years.

As you can see for every reason for a rate to go up there is a contrary reason for it to go down. So will rates go up or down? I see few reasons for rates to go up significantly in the near, or even medium, term. But will they go down? I see that as a challenge for the markets but more likely than an increase. Note if there do drop it will not be by very much, we are about as low as rates can go for mortgages.

Have a question? Ask me!

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

Rates for Friday June 10, 2016: With not a lot of domestic economic news, mortgage rates this week traded on technical factors. After Mortgage Back Securities (MBS, which determine mortgage rates) climbed early in the week they bounced off of the highs of the current trading range. As a result rates are flat from last week. Looking forward we are in a tight trading range right now and rates should remain in the range they have been in for the past three months.


FIXED RATE MORTGAGES AT COST OF 1.25 POINTS
30 year conforming 3.375% Flat
30 year high-balance conforming 3.50% Flat
30 year FHA 3.25% *** Flat
30 year FHA high-balance 3.25% *** Flat
Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs, recent rate change reduces credits



The Weekly Rate & Market Update is coming to you from Palm Desert this week as I am having a boys golf outing. Thankfully the temperatures are much lower than anticipated (staying below 100 degrees). Speaking of ranges, I’m hoping today’s score was the high of the range I will shoot for our remaining two rounds!

Have a great week,


Dennis

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Posted by Dennis C. Smith on June 10th, 2016 3:41 PMLeave a Comment

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June 3rd, 2016 11:21 AM


Question of the week: How much down payment do we need, can we borrow it?

Answer: Depends and depends.

The amount of down payment you need to purchase your new home depends on many factors, what type of loan you are using, what is the price of the home you are buying, what is the amount of loan you qualify for versus the price of the property you wish to purchase.

If you are a veteran and eligible for VA financing then you probably will not need any down payment. There is a formula used to determine the amount of down payment required for VA loans, but often we see no down payment required for very high (think over $700,000) loan amounts for qualified veterans.

Fannie Mae will finance loans up to 97% of the purchase price (i.e. 3% down payment) for loan amounts to $417,000 or up to 95% for high balance loans to the maximum loan limit in your county (for LA and Orange Counties up to $625,500.

FHA will accept down payments as low as 3.5% for mortgages up to $625,500.

If you are putting the minimum down payment into the purchase for these programs there is some form of mortgage insurance that you will need to pay. This can be avoided on conventional programs (Fannie Mae and Freddie Mac) by having your primary mortgage have a loan to value of 80% or less, it cannot be avoided on FHA or VA mortgages.

The second part of the question: can the down payment, or part of it be borrowed?

If the funds provided are secured by an asset then yes you can borrow funds for closing, if the funds are borrowed and are unsecured then the funds will not be accepted by underwriting as part of the total needed for closing.

Unsecured funds are signatory loan, promise to pay, funds from a credit card or unsecured line of credit.

Secured funds may be from real estate, securities, retirement accounts, autos—anything of value that will support a loan. Depending on the source of the borrowed funds then the payments on the loan may be counted as a liability for loan qualifying.

The most common borrowed funds that we see are loans against 401(k) accounts. Most 401(k) programs allow you to borrow up to half the amount in the account and offer very generous repayment terms since you are repaying yourself.

Before borrowing funds for down payment contact me to ensure we have the proper paper trail and meet the requirements for borrowed funds. Not infrequently we get borrowers who have put money in their accounts before checking with us to ensure proper documentation and the result is a delay in the transaction, or being able to write their offer, until the funds become seasoned and acceptable.

Before looking for your new home please contact me so we can pre-approve you for a mortgage by ensuring your income and funds for closing are acceptable and approvable.

Have a question? Ask me!

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

Interesting week of data with great and bad economic news released. The week started with a fantastic report on consumer spending in April, jumping 1% from March. Led by auto says the one month increase in spending was the largest in almost seven years. Also in the report was data showing an increase of 0.4% in personal income for the month of April. Though consumers hit savings accounts to push their buying binge in April the personal savings rate remains strong at 5.4%. The only not positive news in the report was the price index which was stagnant at 1.6% year over year, below the Fed’s target rate of 2.0% inflation. The huge jump in personal consumption puts upward pressure on mortgage rates.

The euphoria around the spending report vanished this morning when the Labor Department released the jobs report for May. Only 38,000 jobs were added to the economy last month, the lowest amount since 2010. The new job total well, well below the consensus estimate of 158,000 new jobs. Not only were new jobs scarce in May, but the prior two months estimates for new jobs were revised down by 59,000 jobs. Construction, manufacturing and mining all saw steep drops in payrolls, while government and retail both saw gains of 13,000 and 11,000 respectively. The participation rate dropped to 62.6% of eligible workers in the workforce. If you see anyone touting a drop in the unemployment rate dropping to 4.7% do not be fooled, the rate dropped not because of job gains but because of a reduction in people actively looking for employment. This report is very positive for lower rates and pretty much shuts the door on a Fed rate increase later this month.

Rates for Friday June 3, 2016: Consumers may of spent in April but the lack of hiring in May was what moved investors as they poured into the Mortgage Back Securities market today pushing down rates. This may be a short term drop as the technicals are well outside the trading ranges which may result in sell offs early next week reversing today’s rate dip.


FIXED RATE MORTGAGES AT COST OF 1.25 POINTS
30 year conforming 3.375% Down 0.125%
30 year high-balance conforming 3.50% Down 0.125%
30 year FHA 3.25% *** Flat
30 year FHA high-balance 3.25% *** Flat
Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs, recent rate change reduces credits



How is the summer fever in your house? It is at the stage in our place where kids are glad that they pretty much have no work left at school and are a bit miffed they have to go to school to perform so little work. I have to side with them, as the last few weeks of school play out every year with so little instruction going on I wonder how much savings we’d have if they just shut down early. Or they could continue to teach and have finals on the last day….back when we were kids…

Have a great week,


Dennis

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Posted by Dennis C. Smith on June 3rd, 2016 11:21 AMLeave a Comment

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May 27th, 2016 10:08 AM



Question of the week: We are looking at purchasing a property with solar panels, are there any concerns we should have?

Answer: This is a question I answered early last summer and friend and local real estate agaent Julaine suggested I cover it again. Good idea Julaine, for those who missed last summer’s review of buying a home with solar panels, or newer readers of the Weekly Rate & Market Update here is some useful information. With more and more families putting solar panels on their homes this issue is arising more frequently in home sales. Back to our answer….

Yes, there are concerns you should have, unless you are paying cash for the property.

The residential solar power industry has been prolific in marketing, seemingly every commercial break on the radio, every other piece of junk, I mean bulk, mail you receive, door to door salesmen, phone solicitors are pushing their product: solar panels that will eliminate your electric bill and pay for themselves.

What is not part of their sales pitches is that depending on how you acquire your panels, are you buying them or leasing them?

If you buy the panels then there is no issue with your mortgage. Just make sure the seller of the property can provide you proof that they own the panels and there is no separate lien on them—or if they did take out a loan to buy the panels the loan is either paid through the sale if attached to the property, or is a personal loan and the panels are in no way encumbered.

Most solar companies however are not pushing selling the panels but rather leasing them. Should there be leased panels on the home you are buying this triggers a strict set of guidelines that must be followed before your mortgage application will be approved. Here are the guidelines as paraphrased from the guidelines issued by Fannie Mae regarding leased solar panels.

The solar panels cannot be included in the value of the home for the appraisal. Some sellers have their properties with leased panels on the home priced as if the panels were part of the property, since they are leased they are not considered as part of the property and therefore no value is given—similar to an unpermitted room.

The lease must be underwritten by the lender and any part of the payment that is not part of a power purchasing agreement must be including in debt-to-income (DTI) calculations. The lease must indicate that the solar panels are removable without causing damage to the property, any damage that does occur as a result of the panels being removed is the responsibility of the equipment’s owner and the owner is obligated to repair any damages and return the property to its original condition.

Your insurance company also becomes involved as the owner of the solar panels cannot be named as a loss payee on your homeowner’s policy. If the solar company requires the panels to be insured the policy must be separate from your homeowner’s policy. As well your policy cannot exclude from coverage tort liability you may have due to the solar contract nor coverage for any losses to the property because of the panels. The solar company that owns the panels must have a general liability policy covering damage to the property as a result of faulty installation, malfunction or other defects—even if not covered by the warranty.

If the lender forecloses then the lease must be able to be terminated by the lender and the solar company remove the panels, or if the lender does not want the panels removed then the lease transfers to the lender at no cost or the lender is able to enter a new lease under the same or better terms. Any lease must also be assignable to whoever purchases the property from the lender post-foreclosure.


If you own a home with leased solar panels then I strongly advise that you read all the conditions of the lease sooner rather than later. Too often consumers build a trust with salesmen and then skip through the fine print on contracts as the salesman give his summary of the clauses—which may not be entirely accurate or entirely disclose the clauses. Even if you have no intent on selling your home in the near future, if you have leased solar panels the lease my impact your ability to sell your home when the time comes and the sooner you know all the impacts of your solar lease on any potential sale the better prepared you will be.

If you are considering purchasing a home with solar panels and there is a lease put in your offer an opportunity to review and approve the lease as one of your contingencies, similar to an appraisal or property inspection contingency. If you do not approve the lease then you can cancel the contract and have your earnest money deposit returned.

Solar power is a tremendous resource, especially here in Southern California, and something Leslie and I have considered for some time. We have not made the commitment however due to the cost to purchase the panels for our home, and we will not lease the panels in part because of the issues listed above. If you are considering putting on panels thoroughly review the lease to make sure you are going to be able the sell the home with the buyer using a mortgage in the future, otherwise you will incur expenses to either get out of the lease early, or have to take a reduced price.

Have a question? Ask me!

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

Boom! That was the sound of the new home sales in May as the market exploded with the most sales in one month since January 2008 with an annualized rate of 619,000 homes sold. For perspective the next highest month of sales was February 2015 with 545,000 sales. Quite a difference. The news is mortgage rate unfriendly as higher home sales can demonstrate a strengthening economy. However many feel that economic growth we have experienced is primarily being supported by new and existing home sales which would dampen the impact on rates.

Durable Goods Orders were mixed in April. Total orders were very strong, which is good news for the economy, however “core capital goods” which are gauge to business investment dropped for the third straight month and fifth of the last sixth—not a good omen for economic expansion or future employment growth. The news had not as much impact on rates as it should have if the growth in the headline number was supported by growth in all sectors.

The first revision to the first quarter GDP did not improve the soft growth initially reported. Real GDP was revised up from 0.5% growth to 0.8%, good that the revision was up and not down but 0.8% is no reason to celebrate. The price index was revised down 0.1% to only 0.6% growth year over year. This data does not give much support to a Fed rate increase next month.

Rates for Friday May 27, 2016: Mortgage Backed Securities (MBS), which determine our rates, had a see-saw week with big moves intraday but ending each daily mostly flat. Investors are trading to secure profits as well as following the herd ahead of the next Fed announcement. When daily trading gets volatile and day to day trading is somewhat flat it signifies a possible/probable break out one way or the other—which means if you are floating you could get caught in an uprate environment very quickly. Take the risk out of your mortgage payment and lock when you can.


FIXED RATE MORTGAGES AT COST OF 1.25 POINTS
30 year conforming 3.50% Flat
30 year high-balance conforming 3.625% Flat
30 year FHA 3.25% *** Flat
30 year FHA high-balance 3.25% *** Flat

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs, recent rate change reduces credits



Finally, Memorial Day and I can wear my white apparel again….

Enjoy the long weekend, I will be engaged in defoliating the vast Smith Estate of by removing or trimming trees, bushes and plants. However you spend your weekend take time to give thanks for those in our history who put on the uniform to protect our liberties and freedoms.

Have a great week,


Dennis

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Posted by Dennis C. Smith on May 27th, 2016 10:08 AMLeave a Comment

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