Mortgage Market Minute: Back on the upswing this morning - - the 4.5% MBS up +.19 to 100.66, and the 5.0% MBS up +.16 to 101.20, and the 5.5% MBS up +.19 to 102.34. The low end of the market saw the 4.5% open much more strongly, but we have backed off a bit to the current levels.4th Quarter GDP shrinks by -3.8%, revised figure will likely approach -5%. The economy shrank at a -3.8% percent pace at the end of 2008, the worst pace since 1982 (-6.4%), the Government reported this morning. The result, which marked a huge slowdown versus the -0.5% decline posted in the third quarter, was better than the -5% that many economists had expected. However, the number stands a good chance of being revised lower in coming months. A build-up in business inventories—which inflates the GDP calculation — masked the fourth-quarter's true weakness. When inventories are stripped out, the economy would have contracted at a -5.1% percent pace in the fourth quarter, in line with expectations. Many economists see the 1st quarter as the worst quarter for the recession, as consumers and business cut back on all fronts, and as domestic and overseas sales of goods and services plummet. In the fourth quarter of 2008, big-ticket "durable" goods, including cars, appliances and furniture plunged at rate of -22.4%, the most since 1987. A -7.1% annualized cutback in spending on "nondurables," such as food and clothing was the deepest since the end of 1950. "The downturn is intensifying. The fourth quarter is worse than it looks," said Mark Zandi, chief economist at Moody's Economy.com. A new trend toward frugality among consumers and businesses is causing analysts to predict a very weak economy for the duration of 2009. For all of 2008, the economy grew by just +1.3%, marking the slowest growth since the last recession in 2001.“Bad Bank” plan currently in limboTreasury Department and FDIC officials are holding around the clock meetings with senior Wall Street execs on how to a new government bank to buy bad assets from major financial firms. However, insiders are indicating that there is no consensus on how the plan would work or whether it will ever take shape. Stocks reacted negatively to the news on Friday morning, with the major indices all trading off. The “bad bank” would theoretically buy up toxic mortgage assets from banks to attempt to shore up balance sheets and get lending to resume. Similar to a Bush Administration plan, the new idea has hit a similar bump in the road: how to value the assets. Too low, and the banks selling the assets would be declared insolvent after the ensuing write-downs. Too high, and taxpayers would end up overpaying for Wall Street’s blunders. Talks have bogged down over lack of agreement on how to move forward from there. The banking system holds more than $1 trillion in illiquid assets, and there is no consensus on how to approach a problem that large and complex. Another issue is that Timothy Geithner, the new Treasury Secretary is still assembling his staff, which would then need time to develop a proposal to take to Congress. Treasury yields jump on protectionist rhetoric.Treasuries sold off for the eighth time in nine sessions on Thursday, amidst rising concerns of protectionism. U.S. two-year yields were up 5.6 bps to 0.95%, with five-year yields up 14.4 bps to 1.84%, 10-year yields up 19.7 bps to 2.86% and 30-year yields up 18.9 bps to 3.61%. The past 2 sessions saw bond yield jumping 36 basis points overall, the largest two-day rise in over a year. A total of $2 trillion in debt is expected to be issued this year, and it may be more difficult to place than expected. Worries about the growing supply of long-term debt have led to a dramatic sell-off in the past two sessions. Worse, growing protectionist rhetoric -- Treasury Secretary Timothy Geithner said the new administration believes that China is manipulating its currency -- could be worrying debt holders, leading to the sharp drop in bond prices. "Geithner sort of got the ball rolling," said Carl Lantz, interest rate strategist at Credit Suisse First Boston. "We're so reliant on foreign appetite for U.S. debt...an obvious reaction from countries if they want to retaliate is to sell Treasuries." Evidence of protectionism is growing. A provision in a stimulus bill being considered by U.S. lawmakers requires infrastructure projects to use U.S. steel exclusively. Canadian Prime Minister Stephen Harper reacted strongly to the proposed legislation on Thursday. He said he expects the U.S. to respect international obligations and that the proposal is a "serious matter." "The protectionist trend is gaining strength much faster than we thought even just a few weeks ago," says Merrill Lynch chief investment strategist Richard Bernstein.
On today’s date: January 30…1774: Capt Cook reaches 71 degrees 10' S, 1820 km from S pole (record)1847: Yerba Buena renamed San Francisco 1972: Bloody Sunday: British soldiers shoot on Catholics in Londonderry, 13 die1973: 1st Kiss concert (Queens New York)1989: 5 pharaoh sculptures from 1470BC found at temple of Luxor
LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, CONFORMING JUMBO, FHA, SUPER JUMBO LOANS
Conforming Limits: $100,000 to $417,000 January 30, 2009
Rates
4.625% 10-Year Fixed
5.25% 30-Year Fixed
NEW CONFORMING
Conforming Jumbo: $417,001-$625,500
Rate: 5.75% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $625,5001 -$10,000,000
5/1 Year Fixed 5.125 %
10/1 Year Fixed 6.125%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 625,500
5.5%
Rates are based on a 1 point origination and are subject to change without notice and are for.
There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
Friday, January 30, 2009
Thursday, January 29, 2009
Mortgage rate sheet for Jan 29th 2009
LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
http://www.youtube.com/watch?v=s0iiiSoGbZ4&feature=channel_page
CONFORMING, CONFORMING JUMBO, FHA, SUPER JUMBO LOANS
Conforming Limits: $100,000 to $417,000 January 29, 2009
Rates
5.125% 30-Year Fixed
NEW CONFORMING
Conforming Jumbo: $417,001-$625,500
Rate: 5.5% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $625,5001 -$10,000,000
5/1 Year Fixed 5.125 %
10/1 Year Fixed 6.125%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 625,500
5.5%
Rates are based on a 1 point origination and are subject to change without notice and are for.
There are a lot of changes taking place every day and lots of questions so please do not hesitate to call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
http://www.youtube.com/watch?v=s0iiiSoGbZ4&feature=channel_page
CONFORMING, CONFORMING JUMBO, FHA, SUPER JUMBO LOANS
Conforming Limits: $100,000 to $417,000 January 29, 2009
Rates
5.125% 30-Year Fixed
NEW CONFORMING
Conforming Jumbo: $417,001-$625,500
Rate: 5.5% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $625,5001 -$10,000,000
5/1 Year Fixed 5.125 %
10/1 Year Fixed 6.125%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 625,500
5.5%
Rates are based on a 1 point origination and are subject to change without notice and are for.
There are a lot of changes taking place every day and lots of questions so please do not hesitate to call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
News for January 29th 2008
For current rates http://www.youtube.com/watch?v=s0iiiSoGbZ4&feature=channel_page
Mortgage Market Minute: We are backing off a bit this morning with the FNMA 4.0% MBS down -.19 to 99.75, and the 4.5% MBS down -.16 to 101.03. The 5.0% MBS is also down, -0.125 to 101.875. Later we should get a recap of this week’s Fed buying activity. Friday we get an advance look at GDP (expect -5%), the Chicago Manufacturing Index (expect 33.0), and Consumer Sentiment (expect 62.0).House passes Obama’s $819B stimulus plan – now goes to the Senate. The House of Representatives passed Barack Obama's $819B stimulus plan Wednesday night, at the urging of the new President. Before the vote, Obama spoke to leaders, calling the crisis a “perilous moment” and saying "We don't have a moment to spare." Billions will go towards welfare, food stamps, unemployment benefits, infrastructure, healthcare, schools, energy projects, and research. The two-year spending plan includes some tax cuts, though less than Republicans wanted. Republicans spoke out against aspects of Obama's plan today, calling it "wasteful spending" and proposed a plan that would cost half as much and create 6.2 million jobs - more than double the job creation in Obama's proposal. Many of them feel that Obama’s team used inflated and untested multipliers when computing the number of jobs expected from an unprecedented level of government spending. Along similar lines, Goldman Sachs economists said the stimulus bill "is a major step in the right direction," but that the package is too small to be sufficient, inferring that a larger amount of spending would be needed to actually accomplish the stated objectives. The White house wants to spend 75% of the money in the first 18 months, however the CBO (Congressional Budget Office) believes that it will take much longer. The plan’s tax cuts would have a more near-term effect than long-term infrastructure spending. The government wouldn't be able to spend at least one-fourth plan until after 2010, according to a preliminary report by the Congressional Business Office that suggests it may take longer than expected to boost the economy.
Mortgage rates remain stable (nice and low).This morning, Freddie Mac in it’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage averaged 5.10% and 0.7 point during the week ended January 29. A week earlier the average was 5.12%, also and 0.7 point. The 15-year fixed remained unchanged from the average of 4.80% and 0.7 point during the week ended on January 22. Five-year Treasury-indexed hybrid ARMs averaged 5.27% and 0.6 point during the week, up slightly from 5.24% and 0.6 point the week before. The one-year Treasury-indexed ARM was down two basis points to 4.90%. "Mortgage rates held steady this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "The index of leading indicators rose 0.3 percent in December, the first increase in 6 months, fueled by an expansion in the money supply.” New home sales fall more than expected, hit record lows.New home sales volume fell to an annualized pace of 331,000, representing a -14.7% decline from November, and more than expected, to their slowest pace on record, the Commerce Department reported Tuesday. The previous month's reading of 407,000 units was revised down to 388,000. Economists were expecting a 2.5% drop to 437,000. The median sale price fell to $206,500 down from $220,400 in November. Annually, prices have fallen -9.3%. Inventories rose to a pace of 12.9 months, up from an 11.5-month supply in November. In the West, the pace of sales fell to 71,000 in December from 89,000 in November, while sales in the Midwest fell to 51,000 from 54,000. Prior to the release, Mike Englund, chief U.S. economist from Action Economics, said it's still too early for markets to be looking for a bottom in housing sales. "Falling rates should have a beneficial effect as we approach the Spring housing season, and the period just prior to this, such as January or February, would be a more likely timing for a bottom than December."
On today’s date: January 29…1861: Kansas becomes 34th state1886: 1st successful gasoline-driven car patented, Karl Benz, Karlsruhe1920: Walt Disney starts 1st job as an artist; $40 week with Kansas City Slide Co.1924: Ice cream cone rolling machine patented by Carl Taylor, Cleveland1944: 285 German bombers attack London1951: Liz Taylor's 1st divorce, Conrad Hilton, Jr.1984: President Reagan formally announces he will seek a 2nd term1987: William J Casey, ends term as 13th director of CIA
The last word:“If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.”--J. Paul Getty.
All this plus commentary and opinion at
Mortgage Market Minute: We are backing off a bit this morning with the FNMA 4.0% MBS down -.19 to 99.75, and the 4.5% MBS down -.16 to 101.03. The 5.0% MBS is also down, -0.125 to 101.875. Later we should get a recap of this week’s Fed buying activity. Friday we get an advance look at GDP (expect -5%), the Chicago Manufacturing Index (expect 33.0), and Consumer Sentiment (expect 62.0).House passes Obama’s $819B stimulus plan – now goes to the Senate. The House of Representatives passed Barack Obama's $819B stimulus plan Wednesday night, at the urging of the new President. Before the vote, Obama spoke to leaders, calling the crisis a “perilous moment” and saying "We don't have a moment to spare." Billions will go towards welfare, food stamps, unemployment benefits, infrastructure, healthcare, schools, energy projects, and research. The two-year spending plan includes some tax cuts, though less than Republicans wanted. Republicans spoke out against aspects of Obama's plan today, calling it "wasteful spending" and proposed a plan that would cost half as much and create 6.2 million jobs - more than double the job creation in Obama's proposal. Many of them feel that Obama’s team used inflated and untested multipliers when computing the number of jobs expected from an unprecedented level of government spending. Along similar lines, Goldman Sachs economists said the stimulus bill "is a major step in the right direction," but that the package is too small to be sufficient, inferring that a larger amount of spending would be needed to actually accomplish the stated objectives. The White house wants to spend 75% of the money in the first 18 months, however the CBO (Congressional Budget Office) believes that it will take much longer. The plan’s tax cuts would have a more near-term effect than long-term infrastructure spending. The government wouldn't be able to spend at least one-fourth plan until after 2010, according to a preliminary report by the Congressional Business Office that suggests it may take longer than expected to boost the economy.
Mortgage rates remain stable (nice and low).This morning, Freddie Mac in it’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage averaged 5.10% and 0.7 point during the week ended January 29. A week earlier the average was 5.12%, also and 0.7 point. The 15-year fixed remained unchanged from the average of 4.80% and 0.7 point during the week ended on January 22. Five-year Treasury-indexed hybrid ARMs averaged 5.27% and 0.6 point during the week, up slightly from 5.24% and 0.6 point the week before. The one-year Treasury-indexed ARM was down two basis points to 4.90%. "Mortgage rates held steady this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "The index of leading indicators rose 0.3 percent in December, the first increase in 6 months, fueled by an expansion in the money supply.” New home sales fall more than expected, hit record lows.New home sales volume fell to an annualized pace of 331,000, representing a -14.7% decline from November, and more than expected, to their slowest pace on record, the Commerce Department reported Tuesday. The previous month's reading of 407,000 units was revised down to 388,000. Economists were expecting a 2.5% drop to 437,000. The median sale price fell to $206,500 down from $220,400 in November. Annually, prices have fallen -9.3%. Inventories rose to a pace of 12.9 months, up from an 11.5-month supply in November. In the West, the pace of sales fell to 71,000 in December from 89,000 in November, while sales in the Midwest fell to 51,000 from 54,000. Prior to the release, Mike Englund, chief U.S. economist from Action Economics, said it's still too early for markets to be looking for a bottom in housing sales. "Falling rates should have a beneficial effect as we approach the Spring housing season, and the period just prior to this, such as January or February, would be a more likely timing for a bottom than December."
On today’s date: January 29…1861: Kansas becomes 34th state1886: 1st successful gasoline-driven car patented, Karl Benz, Karlsruhe1920: Walt Disney starts 1st job as an artist; $40 week with Kansas City Slide Co.1924: Ice cream cone rolling machine patented by Carl Taylor, Cleveland1944: 285 German bombers attack London1951: Liz Taylor's 1st divorce, Conrad Hilton, Jr.1984: President Reagan formally announces he will seek a 2nd term1987: William J Casey, ends term as 13th director of CIA
The last word:“If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.”--J. Paul Getty.
All this plus commentary and opinion at
Wednesday, January 28, 2009
Mortgage Minute
Today is January 28th and what does it mean to us when the goverment is talking about buying the banks toxic mortgages? It means lower rates for home loans!For an update of todays rates go to http://www.youtube.com/watch?v=_1QlZNdAhXs.
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