Mortgage interest rates have never -- seriously never -- been lower than they were this year. Right around the second week of November, interest rates on a 30-year-fixed rate loan dropped to 4.17%, according to Fannie Mae -- by all accounts, the lowest they've ever been in the 40 years or so that industry organizations have been keeping track. That was the 5th consecutive week of record low rates -- rates that were so low, people with "good" rates started refinancing because that week's 3.57% on 15-year loans meant the payment was barely higher than the payment they'd had on their 6%, 30-year fixed mortgage.
But I digress. That November rate-drop to end all rate drops was so extreme, no one really expected it to be sustainable over the long term. Rates had puttered up and down from around 4.2% to around 4.45% for months. The job market was lagging, and the housing market had never sobered all the way up from its post-tax credit hangover, so the Fed said it would do what it could to keep rates low for the foreseeable future, so the banks would pass those low rates on to consumers.
Then, the Obama administration cut a deal to extend the Bush era tax cuts. That adds a projected $900 billion to the deficit over those two years. And that toppled the first domino: T-bill rates, many of which back federally-insured mortgages, were pushed up. As the deficit increases, so does the risk associated with investing in Treasury bills, so they need higher rates for people to buy them. When the rates on T-bills go up, so do mortgage interest rates.
And, after that uber-low week in November, mortgage rates went up faster than the numbers on my scale over the last six weeks: well over a half point since the second week of November, hitting their highest point in six months. The last Fannie Mae data reports rates at over 4.8%, which Bankrate's overnight report pegs them at 4.97%. And it's been a spiky ride, with rates jumping around from 5% to 5.19% at one point, overnight, the second week of December, before cooling to just below 5% Christmas week. Infinity Home Mortgage manager Jeffrey Belonger told Bankrate that rates are "getting worse for two days, getting better for one day, getting worse the next day." Belonger says that mortgage rates right now are on a "daily yo-yo."
The knee-jerk reaction so many homeowners have is that even 5% is still so low, relative to the rates of years past, that the difference between 4.17% and 5% should not stop anyone from buying a home, and it probably won't. But it will put a new, lower cap on how much they can spend, which will likely translate into greater price pressures on sellers. Even a half-point increase from 4.5% to 5% on a 30-year fixed rate loan adds an additional $120 per month to the mortgage payment on a $400,000 home. Today's lenders impose very firm, clear budget constraints on buyers as to how much they can afford to spend for housing, so the extra interest cost will force many buyers to downsize their home price budget.
A spiky, upward trajectory is in the cards for 2011, too -- until the deficit truly gets under control, Treasury rates will likely continue to be volatile; the Fed just bought a bunch of T-bills in November to do its part at keeping rates low, so it's unlikely it will do more in the very near future. If the deficit keeps growing and, counterintuitively, consumer spending and confidence keep on their upward paths, mortgage rates will continue to rise.
So, what's a homebuyer or owner to do? Well, homebuyers who are in contract and looking for the time to lock their rates should consult with their mortgage professionals about doing it during the holiday lull in rates, before the volatility returns as expected after New Year's Day.
Fifteen-year loans are still offering below 4% rates, as another alternative for both buyers and homeowners looking to refinance at the lowest possible rates; and the daily interest rate yo-yo means that those looking to lock loan rates should be in touch with their mortgage brokers every day to catch them when they're relatively low.
Those still house-hunting should consider negotiating for the seller to pay a discount point and reduce their interest rates, especially if they are in a situation where they have stronger bargaining power vis-a-vis the seller. The slow holiday season for home sales puts wanna-be buyers in good position to do this, particularly for homes located in cold weather states, where very few buyers are active this time of this already-slow year.
Article written by Tara-Nicholle Nelson, click here for articles by Tara.
Tuesday, December 28, 2010
Friday, December 3, 2010
Hold on Tight!!
What a ride! we talked about market volatility yesterday remaining extreme over the next week or so; today's November employment report set it up. A huge miss on estimates from analysts and economists; as we always note, trying to predict employment is difficult if not impossible. The November unemployment rates was widely expected to be unchanged, it jumped 0.2% to 9.8% the highest in months. Mortgage back securities have already been down 41 basis points…then up 62 basis points and now have retracted to only being up 32 basis points. We lost well over 100 basis points in the mortgage markets…which is a ton!!! You will see the Stock market suffer with these reports as well.
No matter how its sliced, the employment report has thrown a wet blanket over all the recent more positive economic data that had sent equity markets exploding this week and interest rates up. With job markets still soft the US economy isn't likely to sustain any substantial growth. Looking for anything positive from the data this morning, the upward revisions in October and September is about it.
Hold on tight! If you are in the market for a new mortgage, be patient, we will get a little improvement over the coming weeks, but do not get greedy as this will hurt you in the end.
If you have any questions, feel free to email me anytime, click on my name to contact me.
Thank you very much and have a great day!!!!!
Vice President
Mortgage Network
Acton MA 01720
Thursday, December 2, 2010
Do you know where rates are headed?
Mortgage rates moved more this week then they have the entire year, and of course they moved the wrong way…UP. Signs of the economy are improving, China is having a banner year, October housing numbers were far better than expected are just some of the reasons. Tomorrow the Bureau of Labor Statistics will release the Employment Situation Report. This is the single most influential monthly dataset shared with the market. It carries the potential to shift investment perspectives and realign outlooks.
It could be way better than expected and 30 year fixed mortgage rates could go into the 5's by the end of the day. It could be way worse than expected and rates might take reasonable steps back toward 4.25%. It could do either of those things and rates could be relatively unchanged. Or it could do either of those things and paradoxical opposite reactions could occur. The point here is that tomorrow is definitely NOT about how NFP prints compared to how economists expect it to print. It is all about how the market receives it and whether or not there are any other major news events being digested at the time (Europe is a continuing theme that comes to mind). What does all this mean?? It means, we will wait to see if all the economists out there speculated correctly and then we see how Wall Streets deciphers the news. Be prepared for a VOLITILE day in the markets, whether you are watching mortgage rates, the stock markets or even to see the Unemployment number of 9.6% changes one way or the other.
Remember, Good news in the economy…mortgage rates go up! Bad news in the economy, mortgage rates go down!
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Friday, November 5, 2010
Drama and The Economy
Here we go again…In the US, we tend to be a little dramatic. Whether you get you news from the morning gossip shows on NBC, CBS or ABC or you go to the other extreme to WSJ or Bloomberg. None the less, they all say the same thing. After today’s employment figures showed the US finding 151,000 new jobs, we are back on track to a big and healthy economy..Right? Unemployment still remains at 9.6% which it has been for over a year now. Over 80 economists that were surveyed about the jobs report, were wrong! That’s right, they were wrong, it’s like being a meteorologist in New England, I think we will have a 50% chance of Sun or Rain today. Today we will see a short lived rally in the Stock Markets and we will see securities suffer (bonds, treasuries and mortgage rates). This will be a false rally today we will see on Wall Street, and yet the news media will run with this and again, the real consumers on Main Street will be affected!
The piece we tend to overlook is that 14.8 million people are still out of work today. It’s almost if ALL news media is not allowed to print or say the economy is bad or still suffering. Here is the number to think about…It will take over 6 years at a rate of 200,000 new jobs per month (which is aggressive) for the unemployment numbers to back to down to a place where we can sustain positive growth.
The most important part of the economy is the housing market, it is also one of the largest parts of the economy that creates employment, without it, we cannot move forward. Until consumers start buying homes or the banking guidelines relax enough to allow those to refinance their current mortgage, we will not be able to create new jobs or free up cash. With house prices at an all time low, mortgages rates at a level we have not seen since the 1950’s…It’s time to buy a home. Come on America, you can do it. Go buy house today!!!
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Friday, September 3, 2010
How Facebook Changes Marketing And Sales
How Facebook Changes Marketing And Sales
Author of ''The Facebook Era'' on the glories of hypertargeting customers.
By David F. Carr
Tuesday, August 24, 2010
Home Sales in Record Plunge
Aug. 24 (Bloomberg.com) -- Sales of existing houses plunged by a record 27 percent in July as the effects of a government tax credit waned, showing a lack of jobs threatens to undermine the U.S. economic recovery. Stocks tumbled and Treasury securities rallied, sending yields on 10-year notes to the lowest in 17 months, on concern the industry at the heart of the financial crisis will lead the nation back into a recession. Recent reports on jobless claims and manufacturing point to a slowdown in growth that may prompt the Federal Reserve to consider additional moves to boost the economy.
The Standard & Poor’s 500 Index fell 1.2 percent to 1,054.54 at 1:10 p.m. p.m. in New York. The yield on the benchmark 10-year Treasury note dropped to 2.51 percent and those on two-year notes touched a record-low 0.4542 percent.
What Does This Mean To You?
Mortgage rates will stay low and could possibly drop even more. Is it the right time to buy? YES, there has not been a better time to purchase a home, mortgage rates are at a 40 plus year low and home prices have stabilized to the point that there are deals everywhere. GO BUY A HOME!
Have any questions, feel free to email me anytime. Bill@billnickerson.com
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Saturday, August 21, 2010
Mortgage Rates Rebound~Stocks Plummet
U.S. jobless benefits jumped to the highest level since November and Philadelphia-area manufacturing shrank for the first time in a year, indicating the economy may be slowing faster than forecasted. The number of unemployment claims unexpectedly shot up by 12,000 to 500,000 in the week ended Aug. 14, Labor Department figures showed today in Washington. Because of this news, the Stock Market dropped, led by declines in the largest U.S. companies including 3M Co., General Electric Co. and Boeing Co. that would be hurt by a slowdown in the recovery from the worst recession since the 1930s. A lack of jobs will raise the risk that consumer spending will weaken further than it already has. Investors traded in stocks for bonds today from this news causing Mortgage Rates to improve by the close of business today. Mortgage rates were on the rise this week due to the heavy volume in mortgage refinances…banks has artificially raised rates this week to control the markets.
For more information on the economy and the effects of the markets, feel free to email me anytime.
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Thursday, August 19, 2010
Why Are Rates Going Up???
Because mortgage rates are at all-time lows, more and more consumers (not as many as last year) are coming down off their fences and applying for a refinance. This week the Refinance Index hit its highest mark since the week ending May 15, 2009. Refinance demand is driving activity in the mortgage market and lenders are operating near full-capacity. When this happens, lenders generally let loan pricing worsen to control the pace of new loan production and protect their pipeline from fallout risk. This is playing out right now in the primary mortgage market AT THE LARGE RETAIL LENDERS SPECIFICALLY. Besides potentially higher borrowing costs, consumers and loan officers should also notice longer "turn times" at lenders, which is basically the amount of time it takes to go from application to closing.
What does this mean to you, you need to apply with a Correspondent Lender. This is a Lender that offers many different banks. So if one bank is “Busy” and they artificially raise rates, we can place you with another lender so that you can obtain that low mortgage rate.
For more information on market conditions and where rates are going, feel free to email me anytime.
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Friday, August 13, 2010
Mortgage markets took a real hit
Based on the uncertainty over what politicians are doing to help underwater mortgagors. The government is adding another plan to lend money to those that are underwater but still are current. Treasury markets had become technically overbought after the sizeable decline in rates over the previous few days; yesterday the 10 yr rate increased 6 basis points on profit-taking as traders worked on overbought momentum oscillators. This morning the bond market started better with weaker equity market outlook, mortgage prices a little better but still look vulnerable in the short run but the longer look remains positive for mortgage rates.
Want more information, email me at Bill@billnickerson.com If you are getting your mortgage information from the nightly news, you are too late.
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Friday, July 2, 2010
Read the Fine Print
So often the local media will spin a story for the Drama…here are the good facts about the unemployment rate. Buckle UP!
|
The headline this evening in the newspapers will be that the unemployment rate declined from 9.7% in May to 9.5% in June; the sub-text however isn't that cheery, the labor force decreased by 652K. Non-farm jobs declined 125K about what was expected, 225K jobs were cut from the census workers while private jobs increased less than estimates--up 83K against estimates of +112K. Revisions in May and June added an additional 25K non-farm jobs. Manufacturing jobs increased 9K but were expected up 25K; it has been all manufacturing that has driven earnings recently, now that sector is showing signs of weakening. Yesterday's June ISM manufacturing index declined to the lowest in months. The cuts in census workers still leaves 339K temps working on the census. Most of the increases in jobs came in education and health services, transportation and leisure and hospitality. June average hourly earnings declined 0.1%, the first decline in months implying continued weakness in the job sector. The report showed that 14.6 mil are unemployed.
"Since January, 2008, the seasonally adjusted average change in employment per firm has been negative in every month, with a seasonally adjusted loss of 0.3 workers per firm reported in June for the prior three month period. Most firms did not change employment, 5% (down 3 points from May) increased average employment by 3.4 employees, but 15% (down 5 points) reduced their workforces by an average of 3.3. “Job creation” still hasn’t crossed the 0 line in the small business sector. Government (including health care and education) and manufacturing (a large firm activity) has been providing what few jobs are created, weak given the magnitude of employment loss during the recession. And now the elimination of temporary Census jobs will make the picture look more bleak, although more accurate. A few more private sector jobs is not enough, we need 225,000 every month for 3 years to re-employ 8 million workers who lost their jobs and another 125,000 a month to keep up with population growth." frm National Federation of Independent Business June Survey
One hour after the release of the June employment data the markets were still trying to get their collective hands around it. The stock indexes and the treasury and mortgage markets were churning back and forth. The employment report overall was not good in terms of handicapping the economic recovery. Employment isn't likely to pick up to the pace necessary to expand the recovery in any significant way. The unemployment rate is not likely to decline, but to increase as the discouraged workers that left the job search to sit and collect unemployment will have to find some work with unemployment compensation ending for thousands every month.
How much of the weak employment report was already discounted in the decline in stocks and decline in interest rates? The initial reaction to the employment data rallied the bond and mortgage markets with index selling in equities; but by 9:30 when the stock market opened +10, the 10 yr note -6/32 at 2.97% +2 bp and mortgage prices -6/32 (.15 bp). The holiday weekend will influence markets today. As we have mentioned, the bond and mortgage markets are overbought technically and the stock market is oversold momentarily. The trends are well in tact but we expect a pause in both markets' direction. We call your attention that the FNMA 4.0 coupon has not closed below its 20 day moving average since April 15th; to test the average mortgage prices would have to decline .69 bp frm present levels.
|
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Wednesday, June 16, 2010
[MND NewsWire] - Homebuilder Confidence Falls. Same Problems Persists After Tax Credit Expiration
This email was sent to you by Bill Nickerson. View My Profile
Message: More Bad News for the Economy...Mortgage Rates will Improve on this news :)
Email alerts, such as this one, are a free service provided by Mortgage News Daily. If you would like to receive an alert when important news breaks please register to join our community. Register with Mortgage News Daily - Registration is free and offers many benefits.
Manage your Email Alerts - Once you're registered, you can manage all MND email alerts on one page, turning subscriptions on or off with one click. About MND:
Mortgage News Daily combines the expertise of some of the housing industry's leading minds with the power of social media to offer an always lively, constantly evolving web community. MND communicates breaking news, streams video, and provides expert opinion and commentary to a community of interested market professionals and curious consumers.
Manage your Email Alerts - Once you're registered, you can manage all MND email alerts on one page, turning subscriptions on or off with one click. About MND:
Mortgage News Daily combines the expertise of some of the housing industry's leading minds with the power of social media to offer an always lively, constantly evolving web community. MND communicates breaking news, streams video, and provides expert opinion and commentary to a community of interested market professionals and curious consumers.
Homebuilder Confidence Falls. Same Problems Persists After Tax Credit Expiration
Posted to: MND NewsWire
Tuesday, June 15, 2010 11:08 AM
Tuesday, June 15, 2010 11:08 AM
Forward this email: Send a copy of this story to someone you know that may want to read it.
The National Association of Home Builders released the monthly Housing Market Index today.
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
After recording month over month improvements in April and May, home builder confidence declined in June. The Housing Market Index dropped five points to 17...
[Image or graph removed from email. View full article with images]
This modest move lower is small in the grand scheme of things but still the largest month over month drop since November 2009 . The NAHB Housing Market Index is only 9 points above the record low print of 8.
[Image or graph removed from email. View full article with images]
Excerpts from the release...
Each of the HMI’s component indexes recorded declines in June.
- The component gauging current sales conditions fell five points to 17.
- The component gauging sales expectations for the next six months declined four points to 23 (from a one-point downward revised index level of 27 in May)
- The component gauging traffic of prospective buyers fell two points to 14.
The HMI also posted losses in every region in June. The Northeast, which has the smallest survey sample and is therefore subject to greater month-to-month volatility, fell 17 points to 18 following a 14-point jump in May. The Midwest posted a three-point loss to 14, while the South also registered a three-point decline to 19 and the West fell four points to 15 from a revised May level of 19.
NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Michigan says:
“The home buyer tax credit did its job in stoking spring sales and we expected a temporary pull back in the builders’ outlook after the credit expired at the end of April...However, the reduction in consumer activity may have been more dramatic than some builders had anticipated, which resulted in their lower confidence levels.”NAHB Chief Economist David Crowe says:
“We expected some softening in the market following the expiration of the home buyer tax credit and this report seems to verify this assumption....In the coming months, an improving economy, rising employment, low mortgage rates and stabilizing home values should help the housing market move forward. But as today’s HMI data shows, builders still remain very cautious and are aware that several factors could impede the nascent housing recovery, including serious problems in obtaining financing for the production of housing, faulty appraisal practices and competition from short sales and foreclosed properties.”This is the same thing the NAHB was saying in January.
HERE is some content about the above mentioned appraisal issues
HERE is some content about short sales, foreclosed properties, and shadow inventory
HERE are some of the "incentives" being pushed by Realtors and homebuilders
(View More)
More from MND:
- MBS Commentary: Data Flash: Housing Starts and Producer Level Inflation Worse Than Forecast
- MND NewsWire: HUD Releases Mortgagee Letter Detailing Net Worth Requirements and Approval Process
- Voice of Housing: Gimme Shelter: Homelessness Rate Climbing. Low Income Rental Units Needed
- MND NewsWire: Homebuilder Confidence Falls. Same Problems Persists After Tax Credit Expiration
- Pipeline Press: Monoline Insurer Primer; SIFMA Study for Risk Hedgers; Fannie Mae Servicer Reimbursements; Flood Insurance Reminder From GMAC; BoA Bulletin
If you have trouble viewing this email, you can read the full post at http://www.mortgagenewsdaily.com/06152010_june_nahb_hmi.asp
If you would like to opt-out of receiving email alerts from this person please click here to remove your email address.
Forward this email: Send a copy of this story to someone you know that may want to read it.
Thursday, June 3, 2010
The Direction of Mortgage Rates.
The Direction of Mortgage Rates…
Mortgage rates are governed by several leading indicators and of course are not held to just one. The lending world generally will follow mortgage back securities for the most up to the moment price of an interest rate as well as track the bond markets. These are the 2 most important indexes to follow that allow us to watch the pattern or course of an interest rate.
In recent months, the government had a plan to invest 1.25 Trillion dollars into buying mortgage back securities in order to keep rates low over a period of 14 months. This worked, and rates were on average around 5.00% during this time. As the funds were coming to an end in March, the fear set in the rates would sky rocket. As we soon realized, it is not just these indexes that govern mortgage rates, the entire Global economy comes into play.
As the economy remains flat or stable, rates have done the same. Each time we see weak economic news globally, it causes a little rally in mortgage rates, overall in the last 18 months, rates have been at 5.00% plus or minus a quarter on any given day. Once the economy takes a turn for the good and all components are moving upward, we will see mortgage rates start the climb back up. Experts and Economists alike can only guess at where they will land, but we do know it is only a matter of time before we see 6 percent. As recent as July 2008, the 30 year fixed rate was at 6.75% for a few weeks.
What is new this time around is the Global picture. As we see the employment rate slightly improve, consumer confidence on the rise, homes sales doing better than expected, these are all indicators that the US Economy is back on track or at least moving in the right direction. All of these items are great for the stock market and bad for mortgage rates and can fluctuate every day and can be very volatile. Something the news media reported on yesterday about rates, was exactly that, news from yesterday. Rates had a dip the prior week based on world news, and by the time the news media gets this, the rates have already moved again.
It’s when we see a conflict as we did a few weeks ago with North Korea and South Korea, or Greece falling apart and even the oil spill in the Gulf, these all hurt the US Stock Market, which indirectly caused mortgage rates to drop. It is not quite as simple as this, but whenever or whatever causes the stock market to drop, mortgage rates will generally improve. Investors will pull funds from the Stock Markets and shift funds to the Bond markets and Mortgage Back Securities as they are less risky and far more stable and will do this until things settle in the Stock Market. Mortgage rates will get a very quick rally and improve on these shifts in the markets.
In general, the US and World Economy will at least remain stable and continue its slow and steady improvement. This in return will start to drive mortgage rates upward over the next 12 months. Over the last 10 years, mortgage rates have settled in around 6 to 6.5% for the 30 year fixed mortgage. It will move like a roller coaster, but in this case will only continue to climb with slight dips from time to time.
If you have any questions about mortgage rates or mortgage programs, feel free to email me or call me anytime. I can be reached at 978-264-4803 or via email at bill@billnickerson.com
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Saturday, March 27, 2010
Will you help raise money for my Cancer Ride????
Dear Friends and Family,
I hope this letter finds you and your family well! As you may know, I ride in the Pan Mass Challenge every year. Can you believe this will be my 6th year? The ride takes me from Sturbridge to Provincetown on a 2 day ride for a total of 192 miles. Each year the PMC presents us with a goal to raise money for the event and this year I am looking to raise $6000. This money goes right to the Dana Farber Cancer Institute and to the Jimmy Fund, this is one of the biggest fund raisers they will have this year.
Last year the riders raised over $35,000,000. Our team, Lick Cancer, alone raised $170,000, we were interviewed by NECN at last years event. This year, we are riding for our Pedal Partner, Charlotte O’Shea of Harvard Mass. Charlotte will be 6 years old this April and has been battling a rare, aggressive brain tumor known as atypical teratoid rhabdoid tumer (AT/RT), which doctors feared had spread to her spine. Charlotte has been battling this form of cancer for the last 4 years.
I have a few links at the bottom of this page, you can check out my PMC web page, photos albums of the last few years and of course my donation page.
This ride is very important to me, as I joke about my build and how it takes 3 Lance Armstrong's to equal one of me. I am very serious about this ride. Cancer has become a common word in many of our homes and it seems all too often I learn of someone who is diagnosed with this disease.
Help me raise money for Charlotte, The Dana Farber and Jimmy Fund and together let's help find a cure for Cancer!
donate to my ride photos of the ride the pmc story
this is our team in 2008, taking our final break in wellfleet ma. nearing the end of our ride
Thank You Very Much for Your Support!
Sincerely,
Bill Nickerson
and
Team Lick Cancer http://www.pmc.org/mypmc/profiles.asp?eGiftID=BN0024
Monday, March 22, 2010
Failed Title V Inspection?
Did you know that FHA rehab loans will allow you finance in the costs of a new septic system. You can actually purchase a home that has failed the Title V report. The FHA 203k loan allows for the costs of repair or the installation of an entirely new septic system through this special rehab loan. The loan will allow you to borrow up to $35,000 above the cost of the home for repairs, renovations, new energy efficient doors and windows, siding and even a new septic system. Need more details, call or email me anytime!
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Tuesday, March 16, 2010
Fed Leaves Rates Unchanged Today... :)
The Federal Reserve kept its benchmark interest rate at a record low today, even better used the language “Likely to warrant exceptionally low levels of the Federal Funds Rate for an extended period of time”. What does this mean to you???? The Feds have now left the door open as they say for continued talks about purchasing more mortgage back securities even after the money runs out this month. Although employment seems to be recovering, the housing markets still remain weak and will take some time to recover. The government had a plan to purchase 1.25 Trillion of mortgage backs over the last 14 months, the money runs out in just a few weeks. Guess again, there goes the deficit….
Good News: Mortgage rates may stay low for several more weeks!
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Housing Starts in US Declined 5.9% in February...Mortgage Rates Improve!
Housing Starts fell in February as record snowfall in parts of the country hampered new construction; these numbers are down from the previous month. The south was hit the hardest as they are down 16 percent, New England down 9.6 percent and the West is actually up 7.9 percent. Although the numbers down, weather had a big part in the delay on the Spring Market. Foreclosures are also getting in the way of new inventory, a harsh way to put it, but until the housing market is back on track, mortgage rates should stay low.
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Monday, March 8, 2010
What if Mortgage Rates were to go UP?
If you were to hold off on that home because you thought home prices were going to drop, well consider this. If mortgage rates increase by 1 percent as predicted by economist in the next six months, what do you think that does to your buying power? A one percent increase on a $400,000 mortgage would reduce your borrowing power by $50,000. That is a drop of more than 10% of the loan amount in order to keep your mortgage payment the same. Instead of being able to afford the $400,000 loan amount, you would now only be able to afford $350,000. Today’s underwriting guidelines have tightened up even more than just a few months ago. Take away the $8,000 tax credit after April 30, this puts you at even a less advantage then someone buying today.
It is time to make some real decisions. This will be one time in our lives where it is the perfect time to purchase a home.
Helping the economy one home at a time….
Bill Nickerson
Vice President Mortgage Network, INC
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Sunday, March 7, 2010
Mortgage Rates Continue to day low
Mortgage rates remain below 5.00% this past week for the 30 year fixed rates. This is for mortgages up to $417,000 and for consumers with credit scores over 740. If this doesn’t work for you and your credit scores are below this amount, you should look at the FHA mortgages. FHA does not punish clients like that of Fannie Mae and Freddie Mac. Today’s FHA rate is at 4.875% with 0 points and your credit score can be as low as 620. The FHA mortgage has become the standard in lending and has become a very easy mortgage to work with. Have questions??? Email me anytime at bill@billnickerson.com.
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Tuesday, March 2, 2010
Money Saving Idea! Are you looking to save thousands off your mortgage without having to refinance?
Do you have a mortgage? Want to save $20,000, $30,000 or even a lot more. Here are the steps…. Take your monthly mortgage payment, divide it by 12. Now take that 12th of your payment and add into your mortgage payment each month. This will be considered extra principal that you are adding in each month and will reduce the term of your mortgage by at least 6 plus years. 6 Years off the life of your loan on a $200,000 mortgage would save you $32,000.00.
Example: Your principal and interest payment is $1200 per month, divide this by 12 and you come up with $100. Take the $100 and add this to your monthly payment and this will save you over 6 years of inertest off your loan. This will save well into the thousands of dollars for you and your family.
For money saving ideas on your mortgage, feel free to contact me anytime.
Bill Nickerson
Mortgage Lender
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Sunday, February 28, 2010
The Weekly Commentary
Last Week; wasn't a good one for the economic bulls, and particularly those that think the housing markets are making a turn. Jan existing home sales were expected to have increased about 1.0%, they tanked to a decline of 7.7% with the inventory of unsold homes increasing to 7.8 month from 7.2 months in Dec. New home sales in Jan really fell, with the forecast of an increase of 3.7% over a weak month in Dec, sales plunged 11.2%. Bernanke testified in Congress last week, it went OK and markets only took out of it that once again Bernanke reiterated interest rates would stay low for a lot longer. We are hearing that it will likely be four more meetings before the FF rate is increased, that takes to out to the latter part of this year. It all depends on the economy; we still think the foundations of the present optimism are too optimistic are too excessive, but that is that famous wall of worry it takes. Not only housing data; consumer confidence in Feb declined substantially; the Conference Board's index of confidence dropped over 10 points (20%) from Jan to Feb to a low read of 46.0; the U. of Michigan consumer index didn't slide at all and remained unchanged on the month------more to be confused about. Although the week was punctuated with very soft economic data, the equity markets held well with very little change in the key indexes. The interest rate markets improved; the 10 yr note yield fell 16 basis points to 3.62% and 30 yr mortgage rates declined about 8 to 10 basis points.
This Week; we believe will be one of the most important weeks in the last few months for the financial markets. Very key economic data this week; but none more important than Friday's Feb employment data. The key data points this week are personal income and spending for Jan, both ISM manufacturing and services reports, Feb auto and truck sales, and the Fed's Beige Book release. What will make this somewhat of a watershed week, and the relevance of the data releases, is what occurred last week with the very deep decline in consumer confidence. Markets are translating the collapse in confidence to more job losses and no improvement in wealth. We will add that many consumers that have managed to hold on, and hoped to wait the recession out, are now beginning to retreat as the end is slipping farther out for many that so far have "weathered" the economic recession. The early estimates for the Feb jobs report are for just 20K jobs lost and the unemployment rate to increase to 9.8% from 9.7% in Jan. Early this week we are not expecting any additional improvement in the bond market, and equity markets to be relatively quiet. Based on the early estimates for the non-farm jobs, we believe the decline in jobs will be more than that, and the unemployment rate will be closing back toward 10%. The decline in interest rates last week had two legs; the continued increase in sovereign debt caused by debt problems in Greece, and safe haven moves by investors into treasuries that are taking some money off the table. Look for the week to become increasingly volatile at mid-week as players make adjustments for employment data.
Thank you very much,
Vice President
Mortgage Network
978-264-4803 office
978-268-5023 fax
978-273-3227 cell
Providing Mortgages Since 1991
Thursday, February 25, 2010
Mortgages Rates Improve Again!
Today it was announced that Jobless claims were up yet again for the 6th week out of 8 in 2010. This is just confirming that the economy is not growing or expanding as they thought it would. What does this mean to you? It bring mortgage rates down just a little bit more, mortgage rates move very slowly on the way down and will usually always require negative news to do so. If you are looking to lock in your mortgage rate on your new purchase or your refinance, this may be the day to do it. Not to rush, we want to see how this plays out and we will be watching the mortgage back securities very closely for more improvement as we lead into Friday.
Any questions???? Email me anytime at bill@billnickerson.com
Bill Nickerson
Vice President Mortgage Network, INC
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Tuesday, February 23, 2010
Consumer Confidence?????
Consumer confidence suffers unexpectedly! What does this mean for mortgages??? Mortgage rates will improve today based on this news. Not that I am happy to report this, (okay, a little happy) because this means the economy is still not n full recovery mode. The stock market and several other areas of finance will suffer today. In doing so, traders will withdraw from the stock market and shift funds over the safer investments such as treasuries and mortgage back securities, in doing so, this is will bring mortgage rates down a little.
For more information, feel free to email me anytime with questions you may have about mortgage rates, buying a home or possible refinancing your current mortgage.
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Saturday, February 20, 2010
Friday, February 19, 2010
Great House for Sale!!!
Just went to this great open house that my friend Heather Plate is listing, You should check it out, it’s in Littleton and on a lake!!!!!
Click on the house for details
Bill Nickerson
Vice President Mortgage Network, INC
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
Subscribe to:
Posts (Atom)