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ARM Indexes: A 10-Year Comparison |
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The Rosenbaum Lending Group - Serving Northern Virginia, Suburban Maryland, and DC.
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ARM Indexes: A 10-Year Comparison |
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Forwarded exclusively
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Bob Rosenbaum
The Rosenbaum Lending Group
Office: (703) 879-5200
Email: Bob@MyTalentedLender.com
website: www.MyTalentedLender.com
NMLS#: 649782
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Monday, December 09, 2013
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What happened last week?
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Forwarded exclusively
by:
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Bob Rosenbaum
The Rosenbaum Lending Group
Office: (703) 879-5200
Email: Bob@MyTalentedLender.com
website: www.MyTalentedLender.com
NMLS#: 649782
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Monday, October 21, 2013
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What happens to rates now that the
government shutdown is over and the debt crisis has been averted?
Now that Washington D.C. has gotten our government up and
running again, and the fear of defaulting on our debt has been pushed off
until after the new year, where does that leave mortgage interest rates?
1) Talk of tapering has all but disappeared
In September, the markets were driven on
speculation of Fed tapering back the purchases of Treasuries and MBS that are
part of QE3. The fear of tapering helped to drive interest rates up,
with concern that actual tapering would lead to even further mortgage rate
increases. However, the government shutdown is expected to have a
strong slowdown effect on our economic recovery, which has pushed back all
talk of tapering. Added to that is the transition next year of Fed
Chairman from Ben Bernanke to Janet Yellen, which will also
delay talk of tapering. This is good for mortgage interest rates.
2) There will be a flood of
economic data releases
Expect intraday volatility as many missed
economic reports will be released now that the respective government
departments are back to work. Although September data points are
not likely to be seen as affected by the shutdown, the data isn't likely
to garner as much credibility as usual with traders as the markets try to
assess how serious the shutdown's impact was on consumers and future job
growth. This could cause volatility with mortgage interest rates.
3) The government shutdown is
expected to stunt the economy
Many economists feel that
the government shutdown was bad for the economic
recovery. Just how bad though has not been calculated yet.
Regardless, when the economy stumbles, that always bodes well for MBS
(Mortgage Backed Securities) and the bond market in general. Until we
see that the economic recovery is back on track, it relieves pressure
from mortgage rates. This is good for mortgage interest rates.
Last Week's Mortgage Rate Recap
Mortgage Rates Currently
Trending: LOWER
Last week saw rates improve an average of .250%, depending
on the lender, as MBS (Mortgage Backed Securities) pricing improved
on news of the government shutdown being lifted and the debt crisis being
averted. They did run out of steam however as they approached the
102.00 Resistance Level, meaning that our march to lower rates may have run
out of steam. We have been trading within the same very tight trading
channel since the Fed announcement not to taper on September
18th.
This Week's Mortgage Rate Forecast
Mortgage Rates Forecast:
NEUTRAL, but high threat of volatility
This week we will be dealing with MBS pressing up
against the 102.00 Resistance Level, as well as the release of economic data
that was not released due to the government shutdown. There is no
reason for us to see a large increase in rates, but we may see an increase of
.125% to .250% this week if the 102.00 Resistance Level holds. However,
if we can convincingly break above this level, we may find better interest
rates on the other side.
BOTTOM LINE:
There is risk to floating right now, but also potential reward. The best
course of action is to stay in contact with your Mortgage Loan Professional
to watch the market in real time to stay a step ahead of lender reprices and
market trends to protect your mortgage rate.
RateAlert’s Most Trusted Mortgage Lending Professionals:
This commentary has been sent to you by the Mortgage Loan Originator (MLO) above because they thought you may find it interesting or helpful. The views and opinions offered do not necessarily represent the views of your MLO. Please contact them with any questions or to find out more about the information listed herein and how to work with them |
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To unsubscribe from TBWS Rate Alert e-mails, please click here. Please do not reply directly to this e-mail. TBWS Rate Alert will not receive any reply message. For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com. |
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Forwarded exclusively
by:
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Bob Rosenbaum
The Rosenbaum Lending Group
Office: (703) 879-5200
Email: Bob@MyTalentedLender.com
website: www.MyTalentedLender.com
NMLS#: 649782
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Monday, September 23, 2013
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What Happened to Rates Last Week?
Mortgage
backed securities (MBS) gained +130 basis points from last Friday's
close which caused 30 year fixed rates to move to their lowest levels in the
past 30 days.
And they shocked bond
traders by electing not to taper at that meeting. While, our own
internal survey showed that only 20% of over 4,000 originators polled
expected a taper announcement, over 80% of bond traders and hedging operators
did expect a taper announcement. Mortgage backed securities were trading in a very narrow range until Wednesday's Federal Reserve Open Market Committee Meeting (FOMC). So, the fact that they made no taper announcement was unexpected by traders and a shock to the system. As a result - MBS shot up just over +80 BPS just after the FOMC statement was released and then another +25BPS after Bernanke's press conference. Keep in mind that the Fed does not have to wait until their next meeting in December to take action. The made it very clear that it is already part of their program - that they can change the size and nature of their asset purchase program ANY time that they want. This has traders focused in on any economic news that would give the Fed enough ammunition to adjust their monthly bond purchases this year. And this week we have some very big economic reports such as GDP, Durable Goods Orders and Consumer Confidence. All of which will be very closely watched by traders. |
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Big enough to compete, small
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To unsubscribe from TBWS Rate Alert e-mails, please click here. Please do not reply directly to this e-mail. TBWS Rate Alert will not receive any reply message. For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com. |
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Forwarded exclusively by:
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Bob Rosenbaum
The Rosenbaum Lending Group
Office: (703) 879-5200
Email: Bob@MyTalentedLender.com
website: www.MyTalentedLender.com
NMLS#: 649782
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Friday, September 20, 2013 |
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What happened yesterday?Mortgage backed securities (MBS) lost -11 basis points from Wednesday's close which caused 30 year fixed rates to move slightly higher.Initial Jobless Claims were much lighter than expected and the prior period was not revised upward as much as the market expected. But traders largely ignored this report because the numbers are still tainted by the potential under reporting by two states. Existing Home Sales surprised to the upside coming in at 5.48 million units vs. market expectations of 5.25 million units. Manufacturing in the Philly district was stronger than expected and the Leading Economic Indicators beat expectations. The combined impact of these three reports was to pressure MBS lower. The stock market (DOW -40.39) and the MBS market (FNMA 4.0 -11BPS) once again moved in the same direction as they both sold off. |
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Sales of existing homes rose in July to their highest level in three years, with year-over-year prices again showing double-digit increases.
The number of sales was 6.5% above June and 17.2% above the level in July 2012. If sales continue at the same pace, that would equal 5.39 million homes sold annually, according to figures from the National Association of Realtors.
Rising interest rates as well as rising prices are expected to tamp down both prices and the number of sales in coming months, as homes get less affordable. The shortage of homes for sale, particularly for first-time buyers, continues in many communities, too.
Post continues below
"Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines," Lawrence Yun, the NAR’s chief economist, said in a news release. "The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers."
The national median home price, including single-family and condos, was $213,500. That’s 13.7% above the national median price a year ago and only 7.3% below the peak of $230,400 in July 2006.
The number of homes for sale increased 5.6% from June, to 2.28 million, which is a 5.1-month supply at the current rate of sales. The number of homes for sale is 5% less than a year ago.
Distressed homes continued to make up a smaller percentage of sales, one of the factors that is driving up median prices, since foreclosures and short sales sell at a discount. In July, distressed homes were 15% of sales, down from 24% a year ago.
First-time buyers continued to play a smaller role in the market than they do in normal times, accounting for only 29% of sales, down from 34% a year ago. Investors made 16% of purchases, down from a peak of 22% in February.
All-cash sales continued to be a strong factor, making up 31% of the deals, up from 27% a year ago.
Looking at the numbers by region:
Northeast: Sales up 20.3% from July 2012, median price up 6.7%.
Midwest: Sales up 20.8% from July 2012, median price up 9.5%.
South: Sales up 16.6% from July 2012, median price up 13.6%.
West: Sales up 13.2% from July 2012, median price up 19.2%.
By Teresa at MSN Real Estate
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Forwarded exclusively
by:
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Bob Rosenbaum
The Rosenbaum Lending Group
Office: (703) 879-5200
Email: Bob@MyTalentedLender.com
website: www.MyTalentedLender.com
NMLS#: 649782
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Monday, August 12, 2013
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What Happened Last Week
Mortgage backed
securities (MBS) gained +0 basis points from last Friday's close which caused
30 year fixed rates to move sideways. So, for the past two weeks, MBS have
moved only +8BPS which have kept mortgage rates fairly steady.
Mortgage backed securities traded in a tight range and we avoided the major swings in pricing that we had in the prior week. We had light week in terms of the number of economic releases that hit the market and reports that were released were a mixed-bag. ISM Services came in much stronger than expected (56.0 vs est of 53.0) but Wholesale Inventories disappointed (-0.2% vs est of +0.2%). Initial Weekly Jobless Claims were very close to market expectations (333K vs est of 336K). So, the economic data didn't really drive our pricing last week. Instead it was Treasury auctions and Fed speak that were the major force in bond trades. We had three major U.S. Treasury auctions with the market focusing on the 10 year note and 30 year bond. Last week was all about the Fed and jobs. Both the 10 year and 30 year auctions came off weaker than their recent averages as measured by their bid-to-cover ratio but were still strong enough to keep MBS pricing up. Talking Feds: We had six different speeches by different Federal Reserve members, but few of them were voting members. Essentially, they all said the same thing: 1) the Fed needs to cut back their monthly bond purchases of Treasuries and mortgage backed securities, 2) it will most likely happen in 2013, 3) they need to see more economic improvement from the second half of this year before they move to taper and 4) they would not give a specific date for the first taper. The fact that there was no specific date for the Fed to begin tapering kept MBS at an elevated level which kept rates low. What's on the agenda for this week?
Mortgage Rates Currently
Trending: NEUTRAL
We have a big week for economic data...but it
won't start until tomorrow. MBS are moving upward this morning on speculation
over the German GDP data due out this week. We only have one economic report
this afternoon with our U.S. Treasury budget, and we do not have any major
U.S. Treasury auctions this week. The rest of the week is packed with data
about inflation levels (PPI and CPI) - these are most likely going to
continue to show very tame inflation levels on a month-over-month basis.
Tuesday's Retail Sales report and Friday's Consumer Sentiment Index will be
the biggest reports of the week.
Bottom Line:
There may be some benefit to floating your interest rate and watching the
market carefully. However, this is really a case by case decision and should
be discussed with your Mortgage Professional. We are testing some technical
resistance levels, and if we break above them it could benefit mortgage
rates. If we bounce off of them though it could lead to rate deterioration
very quickly. Monitor real time market data with your Mortgage Professional
to stay a step ahead of lender reprices and to cash in on market gains that
help mortgage rates.
RateAlert’s Most Trusted Mortgage Lending Professionals: |
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Big enough to compete, small
enough to care.
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