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)

Bill's Blog

Providing Mortgages Since 1991

Click Here to Apply Online

Commercial   Residential     Reverse FHA/VA

Posted via email from Bill's Mortgage News

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)

Bill's Blog

Providing Mortgages Since 1991

Click Here to Apply Online

Commercial   Residential     Reverse FHA/VA

Posted via email from Bill's Mortgage News

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)

Bill's Blog

Providing Mortgages Since 1991

bill@billnickerson.com

Posted via email from Bill's Mortgage News

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)

Bill's Blog

Providing Mortgages Since 1991

Click Here to Apply Online

Commercial   Residential     Reverse FHA/VA

Posted via email from Bill's Mortgage News