Posts Tagged ‘ mortgage rates ’

Lock All Mortgage Rates Immediately

This is a stagflation fear we’re seeing:

The central bank can’t be “complacent about inflation,” Janet Yellen, President of the Fed Bank of San Francisco, said in a speech yesterday. Recent measures of consumers’ outlook for prices “highlight the risk that our attempts to deal with problems in the real economy could lead to higher inflation expectations and an erosion of our credibility,” she said.

Yellen also said she anticipates inflation will slow as the labor market weakens and “commodity prices level off,” echoing comments by other policy makers.
Investors project the Fed will keep the benchmark interest rate unchanged at its next meeting on June 25. That would be the first pause since the central bank started cutting rates in September.

Rising prices from overseas, reflecting the drop in the dollar, are another source of Continue reading this post

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Posted by: Brian Brady on May 14th, 2008 under Financing, Mortgage and Home Loans

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National Mortgage Rates Report: May 2, 2008

Let’s lock all mortgages rates at application, regardless of when its closing. I think this is about as good as it gets for a while. I still see 30 year fixed rates a tad under 6% (5.875%) but the good economic data, released today, could drive national mortgage rates up next week.

I recommend a 7/1 ARM today. Rates offered for a 7/1 ARM, for loans under $417,000, are OVER a half a percentage point less than the 30 year fixed (5.25%). Most borrowers will feel comfortable with a seven year time frame. This means that 5.25% rate is locked in for 7 years- that’s until 2015.

(All loans offered to the consumer at the wholesale or “par” rate. We are paid 1% by the consumer.)

To give you an idea of how long 7 years is, Disneyland’s California Adventure opened in early 2001. You probably thought it was around forever.

The bond traders won’t be merciful next week unless recessionary data are overwhelming. Jump on these low rates now. Continue reading this post

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Posted by: Brian Brady on May 2nd, 2008 under Financing, Mortgage and Home Loans

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National Mortgage Rates Report: April 29, 2008

No real change in my posture. I still believe that national mortgage rates have room to go lower in the next 30-90 days but I’m advising clients who are closing in less than 17 days to lock. All others can float.

Mortgage-backed securities traders have “baked in” a .25% rate cut from the Fed when they meet tomorrow. If Bernanke doesn’t cut, mortgage rates will jump quickly. This week is filled with economic data.

If the data are reported weaker than the estimates, we could see lower mortgage rates in the next week. The risk of that not happening, in this volatile market, is real so I’m sticking to the recommendation of locking your loans if you are closing before May 15.

Countrywide Financial reported a big loss from foreclosures while MasterCard reported huge profits. While MasterCard doesn’t actually issue the cards (they just make money from transactions), it shows that people are walking away from their mortgages and using credit cards more frequently. Continue reading this post

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Posted by: Brian Brady on April 29th, 2008 under Financing, Mortgage and Home Loans

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National Mortgage Rates Report: April 14, 2008

I’m still floating mortgage rates, unless my clients are closing within 14 days. I’m cautiously floating because of the volatility in the market. Fundamentally, mortgage rates shouldn’t have a whole lot more room to come down; the Fed cuts are probably coming to an end.

Something much more drastic than the Fed open market activities will be needed to pull us out of the recession.

Yep. I said the R word and have been since last fall. I’m not scared of the recession; I welcome it.

Here’s the trick for mortgage rates. The weak dollar has world investors believing that the Fed’s easy money policy is inflationary…

UNTIL

The recession hits them. Make no mistake about it, the economic slowdown is a global phenomenon. Canada and the UK are following suit by cutting rates. I think the world wide recession will lower oil prices and provide some much needed relief to the American consumer. Continue reading this post

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Posted by: Brian Brady on April 14th, 2008 under Financing, Mortgage and Home Loans

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Who says there is no FREE LUNCH!

I just wanted to start a random act of kindness for all of our hard working Realtors. I am going to give you all the free things I have found on the web and use all the time.

If everyone could add a service and not be afraid of sharing good secrets, we can all benefit. After all, we are all in this together. Let’s all share what we have found!

1. Lowes Site for Realtors: Lowes sends out a 10% discount coupon along with other offers in a classy postcard with your name and photo/logo to all of your clients. I love this one.

2. BDTV: Offers Realtors® free TV excerpts for their site with Designer, Moving, Recipes, Travel and more.

3. Picture Resizer: Free software to reduce the size of you photo files for use in the MLS and the web.

4. Mortgage Rates: Up-to-the-minute mortgage rate running live on your web site. Continue reading this post

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Posted by: Peggy Aldinger on March 24th, 2008 under Technology

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National Mortgage Rates Report

I had a complete meltdown on my Twitter feed, yesterday. Bernanke told the House that he was concerned about inflation but more concerned about a recession.

I initially reversed my float recommendation and subsequently changed it back to lock because I thought Wall Street would hate Ben’s remarks; I was wrong. I violated the first principle; don’t fight the Fed.

The Federal Reserve is worried about a recession. I think we can expect the Fed to cut rates next month. The anticipation of that cut gives us a chance to see mortgage rates drift lower.

You should CAUTIOUSLY FLOAT your mortgage rate

If your closing is over 7 days away; I think you’ll have some room to get a mortgage rate that is .125% to .25% lower than it is today. Continue reading this post

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Posted by: Brian Brady on February 28th, 2008 under Financing, Mortgage and Home Loans, Guest Bloggers

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