reverse mortgage

Making A Choice Of Mortgage Products Is Easier Today Than Most Days

October 11, 2007

In another sign that mortgage markets are a bit unpredictable lately, this morning’s mortgage rates are virtually identical for conforming fixed rate mortgages and conforming adjustable rate mortgages. This is an extremely uncommon market condition; usually, adjustable rate mortgages carry lower rates over their initial fixed rate period (i.e. 3 years, 5 years, 7 years) […]

Read the full article →

How Today’s Employment Data Is Hurting Mortgage Rates

October 5, 2007

On the first Friday of each month, the Bureau of Labor Statistics releases its employment report for the United States. Last month, the jobs report showed that the economy actually lost jobs for the first time since 2003.  The total loss of jobs equaled 4,000 and contributed to the Federal Reserve’s decision to lower the […]

Read the full article →

Have You Ever Wondered Where The Money Goes?

October 4, 2007

Where does your money go?  If you’re like most Americans, more than half of it goes towards housing and transportation alone. This is according to the Consumer Expenditure Survey performed by the Bureau of Labor Statistics. The most recent study shows American household spending habits from 2005, but the percentages change little from one year […]

Read the full article →

FHA Bans Seller-Financed Downpayment Assistance Programs

October 3, 2007

Effective November 7, 2007, the Federal Housing Administration is expected to ban home buyers’ use of seller-financed Downpayment Assistance programs. DPAs are (were?) very popular in FHA mortgage circles as a way to help buyers finance their new homes. FHA loans currently require a downpayment of at least three percent on a home purchase.  That three […]

Read the full article →

How Much Does A 2,200 Square Foot Home Cost?

October 2, 2007

So, what does it cost to buy a 2,200 square foot home with 4 bedrooms, 2.5 bathrooms and a 2-car garage? It depends on where you live. In a study of 317 U.S. markets, Coldwell Banker concluded that the average price for such a home is $422,343. Beverly Hills, CA ($2,206,883) sits on one end […]

Read the full article →

Americans Will Spend $179 Million More On Gasoline Today Than One Year Ago

September 27, 2007

Economists worry about rising oil prices because it tends to generate higher pump prices for Americans.  With more money spent on gasoline, there’s (theoretically) less money available to spend on goods and services. Today, GasBuddy.com says that the average price for a gallon of unleaded gasoline is $2.792, up from $2.344 last year at this […]

Read the full article →

What Happens On The National Real Estate Scene Doesn’t Matter To You

September 26, 2007

The National Association of Realtors® released its monthly Existing Home Sales report for August 2006 and, as usual, you should be ignoring it. The report discusses real estate on a national level and we all know that real estate is a local phenomenon. It’s not that the report isn’t helpful — it is.  The Existing […]

Read the full article →

Can’t Find Your Cash? You Probably Ate It Or Drank It.

September 25, 2007

In a study of 2,036 U.S. adults commissioned by Visa USA, nearly half of all Americans are losing track of their money. An average of $45 in cash is “lost” each week in what Visa dubs “mystery spending”, Visa’s version of “I know I had this money in my wallet but I can’t figure out […]

Read the full article →

Want More Proof That The Fed Doesn’t Control Mortgage Rates?

September 21, 2007

For more proof that the Fed does not control mortgage rates, consider this: In the immediate aftermath of the Fed’s decision to lower the Fed Funds Rate by 0.50%, mortgage rates improved by about 0.125% on average. But, in the two days since, mortgage rates have not only given back those gains, but have approached […]

Read the full article →

How Prime Rate Relates To The Fed Funds Rate

September 20, 2007

Prime Rate is currently 7.750%. Prime Rate is the “shorthand” name for the Wall Street Journal Prime Rate, a variable interest rate that is used in pricing many types of consumer loans. These loans include: Home equity lines of credit Credit card loans Auto loans Prime Rate’s variable nature is tied to the Fed Funds […]

Read the full article →

How The Fed Will Disappoint No Matter WHAT It Does Today

September 19, 2007

It’s all eyes on the Fed today; the market anxiously awaits the central bank’s 2:15 P.M. ET press release. Some of the market bias towards a 0.50% rate cut has decreased in favor of a 0.25% cut.  This shift is largely psychological. Markets are trying to “get inside the head” of Fed chief Ben Bernanke, […]

Read the full article →

The Week In Review (September 17, 2007) : What To Watch For

September 17, 2007

The volatile path of mortgage rates last week followed the changing expectations for Tuesday’s Federal Open Market Committee meeting. The FOMC sets the Fed Funds Rate, a benchmark interest rate upon which Prime Rate is based. According to Federal Funds Rate futures, there is a 94 percent chance that the Fed will lower the FFR […]

Read the full article →

What Would It Take For YOU To Feel The Pinch Of Higher Gas Prices?

September 14, 2007

As crude oil crossed $80 a barrel Thursday, the Wall Street Journal ran an interactive poll with its readers. What sustained price for gasoline would cause you to cut back on other household spending? The graph above shows the on-going results of the non-scientific study.  You can chime in, too, at https://forums.wsj.com/viewtopic.php?t=805. As consumers cut […]

Read the full article →

What The Price Of Gold Says About The Economy

September 13, 2007

Headlines today read that the value of gold is nearing its all-time high (adjusted for inflation).  The lay people would ignore this story, but those in the know understand that the price of gold is usually reflective of the state of the global economy. The spot price of gold tells a lot about investor psyche […]

Read the full article →

Why Mortgage Rates Fell BEFORE The Fed Meeting September 18

September 12, 2007

Mortgage rates “come from” one place only: the prices of mortgage bonds as determined by investors. The higher the price, the lower the corresponding return, or rate. Bonds — like stocks — are traded as securities.  An investor may buy Microsoft stock if he thought the company’s future looked bright, and he may buy mortgage […]

Read the full article →

Explaining Why Per Diem Is Not A Closing Cost

September 11, 2007

Line 901 of a mortgage settlement statement is commonly confused for a closing cost.  It’s actually an “advance payment” on the mortgage. Often called a per diem by mortgage professionals, line 901 itemizes a borrower’s prepaid mortgage interest charges due at closing.  The total amount due equals the daily rate of interest multiplied by the […]

Read the full article →

The Week In Review (September 10, 2007) : What To Watch For

September 10, 2007

Weak employment data pushed mortgage rates lower last week.  Against expectations of 110,000 new jobs created in August, last Friday’s Non-Farm Payrolls report showed a loss of 4,000 jobs. The story made headlines all over the country this weekend but its connection to mortgage rates is not always clear.  Here’s how the jobs report relates […]

Read the full article →

How Today’s Jobs Report Impacts Mortgage Rates

September 7, 2007

This morning, the government reported that the U.S. economy lost 4,000 jobs in August.  Led by losses in manufacturing and in construction, this is the first time since 2003 that the economy has failed to add jobs in any given month. Markets had been expecting a job gain of roughly 110,000, but many players on […]

Read the full article →

Traders Predict The Fed Funds Rate Future Using Options

September 6, 2007

The Federal Open Market Committee meets September 18 and traders are aren’t quite sure what to expect with respect to the Fed Funds Rate. Will the FFR stay unchanged?  Will it FFR decrease?  If it decreases, by how much?  These are questions that are perplexing market participants. Luckily, we can measure how the market is […]

Read the full article →

An Appetite For Jumbo Loans Returns

September 5, 2007

Yesterday was a rather drab day in mortgage circles — not much happened and mortgage rates idled.  The bigger story was how liquidity appears to be slowly returning to some areas of the beaten-down mortgage market. Specifically, liquidity is returning to prime, fixed-rate, full documentation jumbo loans and pricing appears to be improving (slightly). The […]

Read the full article →

← Previous Entries

Next Entries →