Archive for the 'Mortgage Update' Category
Mortgage Rates Rise Slowly as Food and Energy Prices Increase
June 23rd, 2008 Categories: Mortgage Update
Driven upward by food and energy price increases, the Producer Price Index (PPI) climbed by 1.4% and mortgage rates continued a slow move upward. Removing those two variables decreases the PPI to a more modest 0.2% but the annualized core reading is still sitting at 3.0% - well above nearly every expert’s comfort range.
The Federal Open Market Committee will meet later this summer and while nearly every expert is predicting that the Fed will stand pat on interest rates, the odds are increasing for a rate hike in August.
Stay tuned next time for the Gross Domestic Product (GDP) final 1st quarter numbers. Rob Clark, Preferred Mortgage, warns that if the GDP is revised from 0.09% to higher than 1.2%, we could see additional pressure to move mortgage rates upward.
The good news?
The declining market approach is being eliminated by a number of lenders. In our area that means loans up to $417,000 with 5% down and up to $727,750 with a 10% down payment.
If you or anyone you know is considering a move please give me a call. I’ll help you find you the best house and the best financing possible.
Michael
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Largest Unemployment Rate in 33 Years Skews Mortgage Rates
June 9th, 2008 Categories: Mortgage Update, Real Estate News
This weeks mortgage news:
- Long term mortgage rates experienced some minor upward pressure last week while short term rates dipped a bit.
- Unemployment rose to 5.5% - a jump of 0.5%. Mitigating factors include an unprecedented number of entry level workers, teens and college graduates all hitting the market at the same time.
- On a positive note, the economy was projected to lose 70,000 jobs but the actual number was 49,000.
- 30 year conforming rates have increased to 6.375% with 0 points - the highest we have seen in 4 months.
- The House of Representatives is proposing a $7500 credit for first time home buyers or those who have not owned a home in three years - but the credit must be paid back over a 15 year period.
- The Senate is proposing a credit of $7000 but it would apply only to foreclosed homes or homes that meet a very strict criteria.
As always, thanks to Rob Clark for sharing his up to the minute expertise.
Michael
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Continued Up Swing in GDP - However Slight - Helps Balance Economic Worries
June 2nd, 2008 Categories: Mortgage Update, Real Estate News
The Gross Domestic Product (GPD) numbers came in this last week at 0.9%. While well below what economists would call healthy, it was enough to start the reverse some recession-leaning positions.
As quarterly reports with the GDP above zero continue, the probability of recession becomes even less likely.
Overall this is good economic news but the downside is that any acceleration in the economy is likely to lead to increased inflationary pressure and mortgage rates MAY creep upward.
Two important economic reports will come out this week - the ISM Manufacturing Index and monthly unemployment data. I will have more on those next Monday and their impact on the market.
In the meantime, remember that in today’s market the right price - not the number of bathrooms or the state of the kitchen - makes all the difference.
As always, thanks to Rob Clark at Preferred Mortgage for his insight.
Michael
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