Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Thursday’s bond market has opened relatively flat with no important economic data on the schedule for today. The stock markets are showing minor losses with the Dow down 15 points and the Nasdaq down 11 points. The bond market is currently nearly unchanged from yesterday’s close, but we will still see an increase in this morning’s mortgage rates of approximately .125 - .250 of a discount point due to weakness in bonds late yesterday.
Today’s only semi-relevant data was weekly unemployment claims from the Labor Department. They reported that 550,000 new claims for benefits were filed last week. This was much lower than the 580,000 that was expected, but since this data basically tracks only a week’s worth of claims it usually has a minimal impact on mortgage rates.
Tomorrow morning brings us the almighty monthly Employment report. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading for July. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. This report is considered to be one of the single most important releases that we see each month, therefore, can heavily influence the markets and mortgage rates.
Current forecasts are calling for the unemployment rate to have risen 0.1% to 9.6% while approximately 328,000 jobs were lost. The unemployment rate probably will not be much of a factor unless it moved much more than the 0.1% that is expected. However, due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing tomorrow morning if they vary from forecasts. If the data shows stronger readings such as fewer jobs lost in the month or a lower than expected unemployment rate, expect to see mortgage rates move higher tomorrow. Weaker than expected readings should push mortgage rates lower.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com
Thursday, August 6, 2009
Massachusetts Refinance Savings analysis
Is now the right time to refinance your Massachusetts Mortgage and take advantage of today's low mortgage rates? Let me prepare a no cost or obligation refinance savings analysis for you. If now is not the best time we can quickly determine your target rate and I will notify you once it becomes available.
See below for example:
See below for example:
Wednesday, August 5, 2009
What Every Massachusetts Homeowner Should Know About FHA Streamline Refinance Mortgages
What Every Massachusetts Homeowner Should Know About FHA Streamline Refinance Mortgages
Few Massachusetts mortgage borrowers know this, but the Federal Housing Administration (FHA) allows streamline refinances on FHA mortgages and has been since the early 1980s.
The word “streamline” refers to the fact that this particular form of home loan refinance involves a significantly smaller amount of red tape and paperwork than the more typical refinances.
Basic requirements of the FHA streamline refinance are:
• The mortgage to be refinanced should be an FHA insured loan.
• The mortgage to be refinanced should be current.
• The refinance must benefit the borrower by lessening the borrower’s interest payments and monthly principal.
• No money can be taken out of the existing equity on refinanced mortgages through a streamline refinance.
Benefits of an FHA Streamline Refinance
• Appraisal may not be required
• Reduced Documentation
• No income verification, credit check, underwriting fee or employment verification
• Easily decrease or increase the period of the term of the existing mortgage loan
• Benefit from low interest rates
• Very little, even zero, other expenses involved
Massachusetts home owners who elected to go with FHA Streamline Refinance did so because the refinance is also available with zero out-of-pocket expenses.
The zero-out-of-pocket option takes place in one of the following two ways:
1. The expenses, if any, can be covered by the lender in return for a slightly higher interest rate.
2. As an alternative, the expenses may be added to the new loan, provided the property has enough equity to cover the additional amount.
Lenders handle FHA Streamline Refinance mortgages in different ways…
Out-of-Pocket Mortgage Costs Covered by Increasing the Interest Rate
Few lenders give “no cost” refinances i.e. zero out-of-pocket costs to borrowers. This is done by increasing the interest rate slightly on the loan. With this premium, your mortgage lender will typically cover any closing costs required as part of the transaction.
All out-of-Pocket Mortgage Costs Covered by Increasing the FHA Mortgage Amount
Lenders may allow borrowers to pass on paying out-of-pocket expenses by folding the closing expenses into the next mortgage value. This is done only if there is enough equity in your property, as determined by the FHA appraisal.
Please note, FHA Streamline Refinances may be done without an appraisal, but in these cases – the new loan value must be the same as the original loan value. (No increase to existing loan amount)
Note: Investment properties (properties where the borrower no longer occupies as his or her full-time primary residence) can be refinanced via the straight FHA Streamline Refinance process only. In these cases, out-of-pocket expenses must be paid by the borrower.
Interested in an FHA Streamline Refinance? Call me at 800-941-5616 or apply online, and I will review your scenario with you. Ask for or mention Jeff Drew.
Few Massachusetts mortgage borrowers know this, but the Federal Housing Administration (FHA) allows streamline refinances on FHA mortgages and has been since the early 1980s.
The word “streamline” refers to the fact that this particular form of home loan refinance involves a significantly smaller amount of red tape and paperwork than the more typical refinances.
Basic requirements of the FHA streamline refinance are:
• The mortgage to be refinanced should be an FHA insured loan.
• The mortgage to be refinanced should be current.
• The refinance must benefit the borrower by lessening the borrower’s interest payments and monthly principal.
• No money can be taken out of the existing equity on refinanced mortgages through a streamline refinance.
Benefits of an FHA Streamline Refinance
• Appraisal may not be required
• Reduced Documentation
• No income verification, credit check, underwriting fee or employment verification
• Easily decrease or increase the period of the term of the existing mortgage loan
• Benefit from low interest rates
• Very little, even zero, other expenses involved
Massachusetts home owners who elected to go with FHA Streamline Refinance did so because the refinance is also available with zero out-of-pocket expenses.
The zero-out-of-pocket option takes place in one of the following two ways:
1. The expenses, if any, can be covered by the lender in return for a slightly higher interest rate.
2. As an alternative, the expenses may be added to the new loan, provided the property has enough equity to cover the additional amount.
Lenders handle FHA Streamline Refinance mortgages in different ways…
Out-of-Pocket Mortgage Costs Covered by Increasing the Interest Rate
Few lenders give “no cost” refinances i.e. zero out-of-pocket costs to borrowers. This is done by increasing the interest rate slightly on the loan. With this premium, your mortgage lender will typically cover any closing costs required as part of the transaction.
All out-of-Pocket Mortgage Costs Covered by Increasing the FHA Mortgage Amount
Lenders may allow borrowers to pass on paying out-of-pocket expenses by folding the closing expenses into the next mortgage value. This is done only if there is enough equity in your property, as determined by the FHA appraisal.
Please note, FHA Streamline Refinances may be done without an appraisal, but in these cases – the new loan value must be the same as the original loan value. (No increase to existing loan amount)
Note: Investment properties (properties where the borrower no longer occupies as his or her full-time primary residence) can be refinanced via the straight FHA Streamline Refinance process only. In these cases, out-of-pocket expenses must be paid by the borrower.
Interested in an FHA Streamline Refinance? Call me at 800-941-5616 or apply online, and I will review your scenario with you. Ask for or mention Jeff Drew.
Mortgage Rate Commentary 08/05/2009
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Wednesday’s bond market has opened in negative territory as yesterday’s selling carries into today. The stock markets are showing losses with the Dow down 76 points and the Nasdaq down 20 points. The bond market is currently down 5/32, which with yesterday’s weakness should push this morning’s mortgage rates higher by approximately .375 of a discount point.
The Commerce Department said this morning that June’s Factory Orders data rose 0.4%. This was a little stronger than revised forecasts had called for, but has had little impact on today’s trading. The data is not considered to be highly important and traders are looking towards Friday’s release for major news on the economy.
There is no relevant monthly or quarterly economic news scheduled for release tomorrow. The Labor Department will give us last week’s unemployment figures early tomorrow morning, but this data is considered to be of low importance to the markets. It will not impact bond trading or mortgage rates unless we see a significant variance from the 580,000 new claims for benefits that analysts are expecting to see.
The most important piece of data this week and arguably each month is the monthly Employment report that will be posted Friday morning. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading for July. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. This report is considered to be one of the single most important releases that we see each month, therefore, can heavily influence the markets and mortgage rates.
While the GDP is arguably the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Friday’s report is expected to show that the unemployment rate rose to 9.6% last month while approximately 328,000 jobs were lost. The unemployment rate probably will not be much of a factor unless it moved much more than the 0.1% that is expected. However, due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing Friday morning if they vary from forecasts.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com
Wednesday’s bond market has opened in negative territory as yesterday’s selling carries into today. The stock markets are showing losses with the Dow down 76 points and the Nasdaq down 20 points. The bond market is currently down 5/32, which with yesterday’s weakness should push this morning’s mortgage rates higher by approximately .375 of a discount point.
The Commerce Department said this morning that June’s Factory Orders data rose 0.4%. This was a little stronger than revised forecasts had called for, but has had little impact on today’s trading. The data is not considered to be highly important and traders are looking towards Friday’s release for major news on the economy.
There is no relevant monthly or quarterly economic news scheduled for release tomorrow. The Labor Department will give us last week’s unemployment figures early tomorrow morning, but this data is considered to be of low importance to the markets. It will not impact bond trading or mortgage rates unless we see a significant variance from the 580,000 new claims for benefits that analysts are expecting to see.
The most important piece of data this week and arguably each month is the monthly Employment report that will be posted Friday morning. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading for July. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. This report is considered to be one of the single most important releases that we see each month, therefore, can heavily influence the markets and mortgage rates.
While the GDP is arguably the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Friday’s report is expected to show that the unemployment rate rose to 9.6% last month while approximately 328,000 jobs were lost. The unemployment rate probably will not be much of a factor unless it moved much more than the 0.1% that is expected. However, due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing Friday morning if they vary from forecasts.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com
Tuesday, August 4, 2009
MA Mortgage Rate Commentary 08-04-2009
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Tuesday’s bond market opened relatively flat but has since fallen into negative territory following an uneventful open in stocks and no major surprises in this morning’s economic data. The stock markets are showing modest gains with both the Dow and Nasdaq up a couple of points. The bond market is nearly currently down 10/32 from yesterday’s close, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
This morning’s only relevant economic data was June’s Personal Income and Outlays data. It showed a 1.3% drop in income and a 0.4% rise in spending last month. The income reading was weaker than expected, but a sizable decline was forecasted anyhow. The spending reading exceeded the 0.3% increase that was expected, meaning consumers spent a little more last month than thought. The drop in income can be considered positive for bonds, but the higher than expected spending figure offsets the positive news in the income reading. In other words, this morning’s data had little influence on this morning’s mortgage rates.
Tomorrow morning brings us the release of June’s Factory Orders data. This report helps us measure manufacturing sector strength by tracking orders for both durable and non-durable goods during the month of June. It is similar to last week’s Durable Goods Orders report that tracks only orders for big-ticket items. Since a significant portion of the data was released last week, this report may not have as big of an impact on the markets as you may think. Analysts are expecting to see an increase of approximately 0.5% in new orders. A smaller than expected increase would be considered good news for bonds and mortgage pricing.
There is no relevant monthly or quarterly economic news scheduled for release Thursday, but Friday’s data is a different story. That is when we will see the almighty monthly Employment report. It has the potential to erase a week’s worth of gains or recover a week’s worth of losses in mortgage rates. With no data scheduled for release Thursday, I would not be surprised to see pressure in bonds as investors prepare for that release.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com
Tuesday’s bond market opened relatively flat but has since fallen into negative territory following an uneventful open in stocks and no major surprises in this morning’s economic data. The stock markets are showing modest gains with both the Dow and Nasdaq up a couple of points. The bond market is nearly currently down 10/32 from yesterday’s close, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
This morning’s only relevant economic data was June’s Personal Income and Outlays data. It showed a 1.3% drop in income and a 0.4% rise in spending last month. The income reading was weaker than expected, but a sizable decline was forecasted anyhow. The spending reading exceeded the 0.3% increase that was expected, meaning consumers spent a little more last month than thought. The drop in income can be considered positive for bonds, but the higher than expected spending figure offsets the positive news in the income reading. In other words, this morning’s data had little influence on this morning’s mortgage rates.
Tomorrow morning brings us the release of June’s Factory Orders data. This report helps us measure manufacturing sector strength by tracking orders for both durable and non-durable goods during the month of June. It is similar to last week’s Durable Goods Orders report that tracks only orders for big-ticket items. Since a significant portion of the data was released last week, this report may not have as big of an impact on the markets as you may think. Analysts are expecting to see an increase of approximately 0.5% in new orders. A smaller than expected increase would be considered good news for bonds and mortgage pricing.
There is no relevant monthly or quarterly economic news scheduled for release Thursday, but Friday’s data is a different story. That is when we will see the almighty monthly Employment report. It has the potential to erase a week’s worth of gains or recover a week’s worth of losses in mortgage rates. With no data scheduled for release Thursday, I would not be surprised to see pressure in bonds as investors prepare for that release.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com
Monday, August 3, 2009
Mortgage Rate Advisory 08/03/2009
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Monday’s bond market has opened down sharply following early stock gains and a stronger than expected economic release. The stock markets are starting the week in positive territory with the Dow up 109 points and the Nasdaq up 20 points. The bond market is currently down 38/32, which should push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point compared to Friday’s morning rates. Preventing a much larger increase in this morning’s rates was strength in bonds late Friday, meaning this morning’s losses more or less erase Friday’s late gains. However, if bond prices continue to fall, we can expect to see further increases to mortgage rates later today.
Today’s only relevant economic data came from the Institute for Supply Management (ISM) who reported that their manufacturing index for July rose to 48.9. This was an increase from June’s 44.8 and higher than the 46.5 that was expected. A reading below 50 means that more surveyed executives said business worsened than those who said it had improved. But fewer felt conditions had worsened than last month and than was expected this month. Therefore, today’s report was bad news for bonds and mortgage rates because manufacturer sentiment was stronger than expected, indicating stabilization in the manufacturing sector. A strengthening manufacturing sector would be key to the overall economic recovery that bond traders fear.
Tomorrow morning gives us the release of June’s Personal Income and Outlays data. This report helps us measure consumer ability to spend and current spending habits. If it shows sizable increases, bond selling could lead to higher mortgage rates. Current forecasts are calling for a decline of 1.0% in income and an increase of 0.3% in spending. The sizable decline in June’s income that is expected is simply a result of the unusual spike in May’s income and not a sign of declining wages.
Overall, I am expecting to see another active week for mortgage rates. The most important day is Friday due to the data being released, but today’s movement in bonds showed that this morning’s data was extremely relevant to the markets also. The rest of the week is likely to be a little calmer than today and what could take place Friday. But day-to-day movement in rates should be expected every day this week. Accordingly, this is a good week to maintain contact with your mortgage professional.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com
Monday’s bond market has opened down sharply following early stock gains and a stronger than expected economic release. The stock markets are starting the week in positive territory with the Dow up 109 points and the Nasdaq up 20 points. The bond market is currently down 38/32, which should push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point compared to Friday’s morning rates. Preventing a much larger increase in this morning’s rates was strength in bonds late Friday, meaning this morning’s losses more or less erase Friday’s late gains. However, if bond prices continue to fall, we can expect to see further increases to mortgage rates later today.
Today’s only relevant economic data came from the Institute for Supply Management (ISM) who reported that their manufacturing index for July rose to 48.9. This was an increase from June’s 44.8 and higher than the 46.5 that was expected. A reading below 50 means that more surveyed executives said business worsened than those who said it had improved. But fewer felt conditions had worsened than last month and than was expected this month. Therefore, today’s report was bad news for bonds and mortgage rates because manufacturer sentiment was stronger than expected, indicating stabilization in the manufacturing sector. A strengthening manufacturing sector would be key to the overall economic recovery that bond traders fear.
Tomorrow morning gives us the release of June’s Personal Income and Outlays data. This report helps us measure consumer ability to spend and current spending habits. If it shows sizable increases, bond selling could lead to higher mortgage rates. Current forecasts are calling for a decline of 1.0% in income and an increase of 0.3% in spending. The sizable decline in June’s income that is expected is simply a result of the unusual spike in May’s income and not a sign of declining wages.
Overall, I am expecting to see another active week for mortgage rates. The most important day is Friday due to the data being released, but today’s movement in bonds showed that this morning’s data was extremely relevant to the markets also. The rest of the week is likely to be a little calmer than today and what could take place Friday. But day-to-day movement in rates should be expected every day this week. Accordingly, this is a good week to maintain contact with your mortgage professional.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com
The week ahead in the mortgage market week of 08.02.2009
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
There are four relevant reports scheduled for release this week that are likely to affect mortgage pricing. The first important release scheduled for the week is the Institute for Supply Management’s (ISM) manufacturing index for July late tomorrow morning. This index measures manufacturer sentiment by surveying trade executives about business conditions during the month and is considered to be of fairly high importance to the markets. A reading below 50.0 means that more surveyed executives felt that business worsened last month than those who said it had improved. Tomorrow’s release is expected to show a reading of 46.5, up from last month’s 44.8, indicating manufacturer sentiment improved from June. A smaller than expected reading would be good news for the bond market and would likely improve mortgage rates tomorrow. However, a stronger than expected reading could lead to higher mortgage rates.
To read the rest of the story click here: Massachusetts Mortgage
There are four relevant reports scheduled for release this week that are likely to affect mortgage pricing. The first important release scheduled for the week is the Institute for Supply Management’s (ISM) manufacturing index for July late tomorrow morning. This index measures manufacturer sentiment by surveying trade executives about business conditions during the month and is considered to be of fairly high importance to the markets. A reading below 50.0 means that more surveyed executives felt that business worsened last month than those who said it had improved. Tomorrow’s release is expected to show a reading of 46.5, up from last month’s 44.8, indicating manufacturer sentiment improved from June. A smaller than expected reading would be good news for the bond market and would likely improve mortgage rates tomorrow. However, a stronger than expected reading could lead to higher mortgage rates.
To read the rest of the story click here: Massachusetts Mortgage
Subscribe to:
Posts (Atom)
