This week in Mortgage Rates

The Week of December 31st; starts with more negotiations in Washington on the debt talks and tax increases. Over the weekend there were many meetings but as has been the case, nothing of substance that can get any agreement. The stock and bond markets are starting quietly this morning with the Senate scheduled to convene at 11:00 am. There is still the potential something may get accomplished at the last minute, based on talks so far though, we wouldn’t bet on it. Going over the Cliff isn’t as significant has media has made out tax increases that are due to kick in tomorrow can easily be negated in a retroactive bill. Neither side wants taxes higher except the President on high income earners.

The week has a number of key economic reports but not until Wednesday. This is employment week; early estimates are non-farm jobs increasing by 150K, non-farm private jobs +145K, the unemployment rate unchanged at 7.7%. Various economic reports over the last few weeks have had less direct market impact with all focus on the Cliff talks. Also this week both Dec ISM indexes, manufacturing and services, Nov construction spending, weekly claims, and Nov factory orders. Technically the 10 yr note and MBS markets are essentially neutral awaiting the results from Washington.

This could be a volatile week depending on the outcome of the Fiscal Cliff, once Washington settles on the terms we will be able to see the markets adjust.  For the moment, we ended last week on a positive note in the Mortgage Back Securities with mortgage rates improving a little.  We will watch carefully as the days unfold.

For more information on mortgage rates and how they adjust, feel free to email me anytime at Bill@billnickerson.com. 

Bill Nickerson

Vice President Mortgage Network

179 Great Road Suite 214, Acton MA 01720

978-399-1313

Bill's BLOG

Providing Mortgages Since 1991

NMLS # 4194

Commercial   Residential     Reverse FHA/VA

Posted via email from Bill's Mortgage News

Rates and The Fiscal Cliff

This Week; of course it’s the Fiscal Cliff in the headlines. This week the FOMC meeting concludes on Wednesday with expectations the Fed will announce it will continue to buy US long dated treasuries when Operation Twist expires at the end of this month. The key economic data isn’t out until later this week with November retail sales, PPI, CPI, industrial production and factory use. Treasury will auction $66B of notes and bonds starting Tuesday through Thursday, 3 year, 10 year and 30 year issues will be sold.

 

There has been no outward progress on the stand-off between President Obama and Republicans in the House. Last week a number of Republicans were leaning toward compromise with Obama on tax increases for the wealthy but the leadership has not bent, at least as far as public comments indicated. The President is unwilling to move off his position while the Cliff is coming quickly. Whether or not the country goes over, based on comments and forecasts from pundits, is now about 50/50. Whatever comes of this intransigence it is unlikely the this issue will be solved. The likely end game as it appears now is both parties will agree to extend the Bush tax cuts for a short time through the beginning of next year, allowing more time to look incompetent. Washington politicians haven’t been able to accomplish much over the last two years; so far the Cliff negations are no different.

 

The bond and mortgage markets haven’t moved much over the last three weeks. Until something significant occurs the rate markets are not likely to change much. No decline in rates and no increases of significance. The same is also expected in the equity markets.

If you have any questions in regards to the markets or new mortgages, feel free to call me anytime.

Bill

Sincerely,

Bill Nickerson

Loan Officer NMLS# 4194

Mortgage Network, Inc.

179 Great Road

Acton MA 01720

978-399-1313  office

877-367-4416 fax

978-273-3227 cell

Massachusetts Licensed Lender & Broker MC2668

WEBSITE   EMAIL    BLOG        

Posted via email from Bill's Mortgage News

Another Volatile Week

This Week; one of the busiest in months with most attention on Central Banks in the US and Europe. The FOMC meets on Tuesday and Wednesday with the policy statement Wednesday afternoon. It is widely believed in markets that the Fed will start another QE the question at the moment isn’t will they but when. Some believe the Fed will announce an easing move on Wednesday while others are saying at the Sept FOMC meeting. The European Central Bank will meet on Thursday, an even more important event than the FOMC meeting. Last week interest rate markets were rocked when the President of the ECB said in a speech the bank will do whatever it takes to save the euro. Since then Germany and Italy in talks over the weekend sounded upbeat. Last week on the Draghi comments the 10 yr note and mortgage rates jumped; the 10 yr yield up 14 basis point since Wednesday and mortgage rates up 7 to 9 basis points in rates.

Adding to the importance of the week; the July employment report on Friday, early estimates call for private job growth of 105K with unemployment rate unchanged at 8.2%. The two key ISM reports also out this week, manufacturing index expected about unchanged at 49.9 and the services sector at 52.2 from 52.1 in June. Easing from the Fed and the ECB meeting are the dominant focus this week but the data also important. We expect an increase in market volatility this week; technically the US interest rate markets are trading at critical levels

Watch for mortgage rates to rise a little this week on just based on the uncertainty and volatility of the markets.

Sincerely,

Bill Nickerson

Loan Officer NMLS# 4194

Mortgage Network, Inc.

179 Great Road

Acton MA 01720

978-399-1313  office

877-367-4416 fax

978-273-3227 cell

Massachusetts Licensed Lender & Broker MC2668

WEBSITE   EMAIL    BLOG        

Posted via email from Bill's Mortgage News

Lot's going on in Mortgage Rates

This Week; Treasury will auction $99 Billion of notes beginning Tuesday through Thursday. The 10 yr note yield fell to 1.70% last week, a key resistance level and matching the lowest yield on the 10 year set last September. April existing and new home sales along with April durable goods orders are the key reports this week. Stocks should rebound from their worst week since September and U.S. futures rise as China signaled it would support the economy and German and French officials prepared to meet before a summit. Commodities snapped a three-day drop while Treasuries and the yen declined. The Bank of Japan, which starts a two-day meeting tomorrow, expanded its asset-purchase program in February and April. Last week, two bond-buying operations failed to attract the central bank’s target for sell offers. The European Union summit starts Wednesday. Concern Greece will exit the euro erased about $4 trillion from global stock markets this month. Europe’s debt problems continue to dominate US bond market as money from around the world is piling in to safety in treasuries

Bill Nickerson

Vice President Mortgage Network

179 Great Road Suite 214, Acton MA 01720

978-399-1313

Bill's BLOG

Providing Mortgages Since 1991

NMLS # 4194

Commercial   Residential     Reverse FHA/VA

Posted via email from Bill's Mortgage News

PMC Fundraiser at the OUTLOOK

5 days left! 5 days till all your dreams of margaritas, and salsa, and piñatas come to life in a congregation of mariachi music, sombreros, and tortilla chips.  5 days till Cinco de Mayo and here is an update!

Golf at the International, Quail Ridge, Concord Country Club, a Red Sox themed bike, auto detailing, skis, ski passes, Red Sox tickets, cigars, babysitting, a Band!  Yes, a Band and the opportunity to rent the Team Lick bus chauffeured by our very own Captain Apgar.  The band could play in the bus.  Imagine the possibilities. 

We have raffle items including gift certificates for food, beverages, oil changes, Pedal Power gift bags, Nashoba Valley shwag, and it is still coming. If you can't come, you can buy raffle tickets or bid on Silent Auction items and still win stuff.

It is really shaping up to be a fun night and we'd love to see you.  If you need a babysitter, Esme Wessel is auction off some babysitting that you could bid on and win before we even get started!  It is like we are traveling back in time!  That is how good this party is going to be!

To review -

When:          Saturday, May 5^th 2012 - 6:00pm to 11:00pm

Where:        The Outlook Restaurant at the Nashoba Valley Ski Area

                          79 Powers Road, Westford, MA 01886

What:          Dinner, Music, Raffles, Silent Auction items, Piñatas, and a whole bunch of Margaritas

Cost:            $50 per person gets you dinner and a drink

So get you and your friends and family and favorite gringos with their checkbooks to the Outlook Restaurant on May 5^th!

Go!

Sincerely,

Bill Nickerson

Loan Officer NMLS# 4194

Mortgage Network, Inc.

179 Great Road

Acton MA 01720

978-399-1313  office

877-367-4416 fax

978-273-3227 cell

Massachusetts Licensed Lender & Broker MC2668

WEBSITE   EMAIL    BLOG        

Posted via email from Bill's Mortgage News

Mortgage Markets this week

This Week; the big data is on Friday with the February employment data. Early estimates are for the unemployment rate to remain at 8.3%, non-farm jobs up 207K and non-farm private jobs up 220K. Monday the Feb ISM services sector report will draw attention, estimates call for the index to decline slightly to 56.0 from 56.8 in Jan; a weaker index reading will aid the bond market somewhat. Interest rates were literally unchanged last week with the key 10 year note very comfortable in its four month long range between 2.10% and 1.90%. Europe’s debt crisis is still out there but has settled a little with Greece getting the funds necessary to avoid defaulting later this month. Attention in Europe will now increasingly focus on Spain as it refuses to adopt the stringent austerity programs forced on Greece.

The bond and markets are in narrow trading ranges, they will likely continue there until another new fresh fundamental comes along. We continue to believe interest rates have seen their lows, however we are not expecting any significant increase in rates in the near future. Last week Bernanke made it clear the Fed was not thinking about another easing move at the moment, that kind of roiled the equity markets momentarily. The differences of opinion remain between the Fed and private forecasters. The Fed remains concerned the economy is not on solid footing, while private investors continue to bid up equity prices on belief the US economy is slow but solid.

In all, mortgages will be trading around 4.00% plus or minus an 1/8^th on any given day based on these forecasts.

For more information, feel to call or email me anytime.

Have a Wonderful Day!

Bill Nickerson

Vice President    Mortgage Network Inc

179 Great Road, Acton MA 01720

www.billnickerson.net      bill@billnickerson.com

978.273.3227

Posted via email from Bill's Mortgage News

No Mortgage Insurance Program

New Mass Housing Program

Features

No Mortgage Insurance

MassHousing recently launched a new mortgage program that features Low Down Payments, as little as 3% down with No Mortgage Insurance!  This product provides financing (purchase or refinance) up to 97% of the appraised value of the home without the hefty mortgage insurance payments that are typically associated with low down payment programs.

 

This special program is available for owner occupied; one to four family properties including condominiums on both purchase and refinance transactions. With a low fixed rate, down payment can be a gift on single family homes.  The MassHousing Mortgage with No Mortgage Insurance is a great choice for low and moderate income homebuyers.

 

Call me to learn why this innovative program is an attractive alternative to an FHA mortgage!  Remember, this program allows for the same low down payment options as FHA with no mortgage insurance and in-house condo approvals!!

 

Features

 

o   As little as 3% down on single-family homes and condos

o   As little as 5% down on 2, 3 and 4-family homes

o   No mortgage insurance required

o   Income limits as high as $123,660 in many cities and towns

o   Fannie Mae loan limits apply, borrower up to $417,000

o   Approved community second mortgages allowed

 

Advantages

 

o   Gift funds can be the source of the down payment on single family homes

o   The interest rate will never increase

o   Competitive fixed rates

o   Safe, fixed-rate limited cash-out refinance option

 

Call me anytime with questions about this new program or for a consultation with your clients regarding this innovative financing option! 

Sincerely,

Bill Nickerson

Loan Officer NMLS# 4194

Mortgage Network, Inc.

179 Great Road

Acton MA 01720

978-399-1313  office

978-268-5023 fax

978-273-3227 cell

Massachusetts Licensed Lender & Broker MC2668

WEBSITE   EMAIL    BLOG        

Posted via email from Bill's Mortgage News

Mortgage Rates Rise After Extended Period of Stability

For the first time in over a month, the Best-Execution rate for 30yr fixed mortgages rose from a rounded average of 3.875% to 4.00% today.  The underlying borrowing costs associated with 3.875% didn't rise by a significantly painful amount, but the small increases across the board, combined with one huge move by a huge lender, was enough to bring the average rate closer to 4.0% than 3.875%.   

You may well wonder what the heck this all means.  So we'll go into more detail tonight for enquiring minds.  Our methodology for determining daily Mortgage Rates is somewhat complex, and involves an objective component based on lenders raw prices as well as subjective impression from our network of originators.  We look at the rate sheet offerings from most major lenders and calculate the buy-ups and buy-downs between each rate (incidentally, rates tend to be offered in .125% increments, which is why we're always conveying best-execution in .125% increments whereas the actual daily average is reflected on the Mortgage Rates page). 

Sometimes, the "sweet-spot" is obvious from looking at lenders raw pricing.  For example, For each .125% lower in rate, you'd have to pay more and more in terms of closing costs (which could be referred to as "discount" or "origination" or "points" among other things, but I'd greatly like to stay out of semantics debate and instead focus on the spirit of the matter.  Bottom line: it costs more money up front to pay a lower rate over time, whatever a lender wants to call that fee).  If it cost 0.4% of the loan amount to move down from 4.125% to 4.0%, another 0.5% to move to 3.875%, but a whopping 1.2% to move to 3.75%, it's clear that this lender's Best-Execution is at least 3.875%.  In some cases, some clients may opt to pay big buydowns if they understand the longer time it will take to breakeven on the extra upfront expense in terms of monthly payment savings from an .125% lower rate. 

Other times, the gaps between rates are fairly close together for several rates near Best-Execution.  This makes the process of deciding that lender's Best-Ex rate much more subjective.  In these cases, we assume scenarios with the best combination of lowest closing costs but not at the expense of monthly interest savings that could be recouped in less than 5 years.  This almost always means a loan with no origination fee.  But when the range of options are similarly viable, we involve the community to get a consensus not only of what they're quoting, but also which options their clients are choosing.  This is combined with the objective measurements taken from lenders, and each lender's best-ex rate goes into calculating the average.

All that to say that this average moved up from 3.92% to 3.98% today.  3.92 rounds down to the closest eighth whereas 3.98 rounds up, thus, the 4.0% Best-Execution today.  But keep in mind that 3.875% is still very much "out there," meaning, deals can be viably structured with 3.875% rates just as easily today as they could have been on Friday, as long as you can afford the increased closing costs.  Also keep in mind that different lenders are continuing to price in the effects of the Tax-Cut-Extension at different times and in different ways.  One large lender priced it in with today's rates and the difference in closing costs would be substantial if you didn't know where they were coming from.  But the tax cut extension calls for a 10bps increase to a fee that lenders have to pay the government on each loan.  That 10bps fee is like 0.1% interest rate increase, almost as much as the .125% increments we just discussed!  So just like moving up and down by .125% increments in rate affected the costs by .4, .5 and even 1.2% of the loan amount, you can see how a difference of 0.1% being priced in overnight could have a drastic effect on closing costs on a particular loan depending on the lender and the initial rate.

Courtesy Mortgage News Daily

Posted via email from Bill's Mortgage News

Top 10 Bathroom Remodeling Trends: Part 1

Before I talk about bathrooms, I would like to thank Bill Nickerson for this opportunity to introduce myself to you. My name is Ken Howell and I am the co-owner of Synergy Total Home, a residential contractor located in Acton. Together with my partner Julius Dunworth, we have more than two decades of experience transforming our customer’s houses into the home of their dreams. I would welcome the opportunity to speak with you about any project you have been considering. Now let's talk about bathrooms.

With the decrease in housing sales in recent years, homeowners are looking at ways to improve their current homes. One area that continues to be a popular area to remodel is bathrooms. That shouldn't be surprising, every house has at least a couple baths and some have more. At Synergy Total Home, we love doing bath remodels and our customers love the results. Let's look at some bath remodeling tends for 2012:

1.    Large, open custom showers:  Large showers made with designer tile are a big request right now. People like the rich look of tile and the custom appearance it offers. Adding to the open feeling are clear glass doors that are hinged rather than sliding. In addition, people want their baths to be a relaxing spa like retreat and one way to accomplish that is with multiple shower heads.  We do many custom showers with a fixed shower head and a handheld wand.

2.    Jacuzzi's are out, soaking tubs are in: How many of us have a jacuzzi that we never use?  The answer is most of us. And how about all the room some of them take up. Today more people are opting for simpler soaking tubs. A soaking tub is typically larger than a standard tub but still takes less space than a jacuzzi. Add a few candles and you are set for a relaxing evening.

3.    Bring in the light:  Our customers view their master baths as a sanctuary from a stressful world. They want them to bright and cheerful, even sun filled. Many of our customers are requesting more windows or even skylights were possible. Many glass options are available to ensure privacy.

4.    Big fan, little noise: Exhaust fans continue to be a popular request not to mention being required by code in most circumstances. But while people may want what the fan can do they don't really want to hear it doing it. Ultra quiet fans are what most people opt for. Properly installed these fans are almost impossible to hear. Fans are also available with lights and heat.

5.    Water closets: For those that have the space a separate water closet is a big advantage. Let's face it, we may love our spouse but we all need privacy now and then. Sometimes it requires relocating the toilet but with PVC pipes it’s not as complex as it may seem.

That's the first five; I will cover the second five in Bill's next newsletter. In the meantime, if you have any questions please contact me at

978 369 1006 or send me an email at kghowell65@msn.com. You can also check out our website at www.synergyrestorations.com

Article courtesy of:  Ken Howell, Co-owner of Synergy Total Home

Posted via email from Bill's Mortgage News

What to expect this week in the Market

This Week; of course it is still most about Europe, the saga that won’t go away, and likely not for years. Treasury rates ended last week at 1.87%. Mortgage rates continue to decline in the MBS market but lenders that buy the loans have not been pricing to the MBS market, holding prices lower than the market itself. The increased fees to finance the 2.0% social security tax cut financed by home buyers and re-financers is causing disruptions in pricing. Some lenders have used the fee increase to increase gains from originators by setting prices much lower than MBS markets trade---over and above making the price adjustments for the fee increases. Watch your lenders and compare MBS prices we report to how your lender is treating you.

This week a few key economic reports that will get traders’ attention; PPI, CPI, Philly Fed business index, Housing starts and permits as well as Dec existing home sales and weekly jobless claims all on tap (see economic calendar). US interest rate markets continue to hold well, at the same time the long end including mortgages is struggling to keep a positive bias. Europe’s travails and this week’s economic data should define whether rates will move lower. That said, with rate increases due to Congress using Fannie, Freddie and FHA to finance the social security tax cut, mortgage rates are not likely to fall much more even if US treasury markets improve somewhat. We remain skeptical on the longer term outlook for rates, rates are likely to increase a little this year with the economy improving. The wild card now is the Fed (Europe is always a wild card on a day-to-day basis); last week there were some that were floating the idea of another easing move from the Fed, still a minority view however. On the 24th and 25th the FOMC meets, likely there will be discussions on the subject.

Have a Wonderful Day!

Bill Nickerson

Vice President    Mortgage Network Inc

179 Great Road, Acton MA 01720

bill@billnickerson.com

978.273.3227

Posted via email from Bill's Mortgage News

5 Real Estate Trends to Look For in 2012

5 Real Estate Trends to Look For in 2012
by THE KCM CREW on JANUARY 3, 2012

Predicting trends during the most volatile housing market in American real estate history is no easy task. We strongly believe these are the five real estate items we should keep an eye on in 2012:

1. Buyers Will Return
In 2011, a lack of consumer confidence in the overall economy dramatically impacted the housing market. Buyers were afraid to make a purchasing decision on any big ticket item. By the end of 2011, consumer confidence began to return and sales increased. Economic conditions will continue to improve throughout 2012 and consumer sentiment will solidify. Once that happens, home buyers will realize that now is the time to buy.

2. Foreclosures Will Increase
The ‘shadow inventory’ of foreclosures which has been growing since the robo-signing challenges of late 2010 will finally be introduced to the market. Distressed properties sell at discounted prices. They will impact the housing values of the non-distressed homes in the area.

3. Prices Will Soften
As more and more foreclosures come to market, there will be greater downward pressure on the values of houses in the region. Foreclosures impact values of non-distressed properties in two ways:
· They will eat up some of the buyer demand in the market.
· They will impact the appraisal on ALL transactions in the area.
An increase in foreclosures will have a negative impact on values. This will cause more homes to be underwater.

4. Short Sales Will Increase
As mentioned above, we strongly believe that home prices will soften through at least the first half of 2012. Falling prices will force more homeowners into a position of negative equity. Negative equity is one of the triggers that cause people to strategically default on their mortgage obligations. If this happens, there could be an increase in the number of foreclosures. However, we predict that banks will take preventative measures which will help many of these homes avoid foreclosure by easing the requirements in the short sale process for both homeowners and real estate professionals.

5. Great Agents Will Be VERY Successful
Real Estate professionals who have invested the money, time and energy to truly understand what is happening and why it is happening will separate themselves from their competition and do very well this year.
Those who take that next step of learning how to simply and effectively communicate the market to their clients will be seen as industry leaders. These experts will dominate their markets.

Courtesy of the KCM BLOG