While our Economy is in a recession and struggling, it sure is nice to see that the Oil companies are keeping their head above water! We have company after company posting enormous losses and slashing jobs. Consumers are cutting back and shopping at more discount stores. All while BIG OIL is swimming in their record profits! More earnings came out today and they were astonishing.
BP earned $7.62 BILLION for the quarter. Royal Dutch Shell earned $9.08 BILLION for the same quarter! Yes that is Billion with a capital "B"! While this is nothing new (they have posted successive billion dollar quarters for quite some time) it is still extremely frustrating. I am all for companies prospering and doing well, but this is a bit extreme when the American public is struggling to pay for gas! (let alone their mortgage)
What is really interesting is that their production either stalled or was down. Even with this being down they had record profits! Hmmm?
This may be because BP sold its gas for 52% more than it did a year earlier, while Shell received 66% more.
This is a very complex issue and it isn't as simple as lowering gas prices, but something needs to be done. There are some very smart people working on Wall Street, the Government, BIG OIL, etc. I think they can put their heads together to try and regulate all of this a bit more efficiently!
Now we have all the stimulus money coming our way. I wonder how much of this money will make its way back to BIG OIL. It is safe to say quite a bit of it will!
You comments are welcomed!
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Professional Mortgage Group, Inc.
Tuesday, April 29, 2008
Monday, April 28, 2008
What Will The Fed Do?
The Federal Reserve Board will meet again tomorrow morning. Ben Bernanke and his staff of professionals will weigh all options on both the current economic conditions and future "forecast" market conditions and whether or not to leave rates unchanged or perhaps a .25-.50% cut. Currently the market has a cut of .25% "baked in" to the current market; however there are many "seasoned" professionals that are suggesting no rate cut is needed. In fact a couple of Mr. Bernanke's colleague's were veryblunt that no further rate cuts were either needed or warranted given the current state of inflation, mostly linked to the escalation of commodity prices such as fuel and food costs; both of which have increased dramatically in recent months.
Most recently the Fed had hinted that it would take a more conservative approach to monetary policy however stated that it will do what it must to make sure financial markets function on a normal level going forward. Keep in mind should the Fed decide to cut rates these cuts do not directly impact mortgage rates! More over it's the role in these particular cuts on the overall macro economic economy that will determine the future of mortgage rates and more specifically the "flight to quality" for MBS (Mortgage Backed Security) traders that WILL determine the future of mortgage rates.
We have yet to see a significant refinancing boom in quite some time especially given the current economic climate. I believe this is due to the tightening of lending guidelines and the huge volatility in mortgage rates right now.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Most recently the Fed had hinted that it would take a more conservative approach to monetary policy however stated that it will do what it must to make sure financial markets function on a normal level going forward. Keep in mind should the Fed decide to cut rates these cuts do not directly impact mortgage rates! More over it's the role in these particular cuts on the overall macro economic economy that will determine the future of mortgage rates and more specifically the "flight to quality" for MBS (Mortgage Backed Security) traders that WILL determine the future of mortgage rates.
We have yet to see a significant refinancing boom in quite some time especially given the current economic climate. I believe this is due to the tightening of lending guidelines and the huge volatility in mortgage rates right now.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Friday, April 25, 2008
New Home Sales
A report came out yesterday that New Home Sales plunged 8.5% to a 17 year low in March. (nationally) This comes at a time where home builders have slashed their average price by a record amount (13.3% in the last year)! Some other stats to mention are as follows. New home sales are down 36.6% compared to a year ago. This month's supply is the highest in 27 years!
Doesn't sound too hot does it? While it is obvious that the economy is struggling and real estate markets in certain regions of the country are hurting, Boone County is holding pretty steady! We haven't experienced the crazy appreciation that many parts of the county have, therefore we aren't experiencing the rapid depreciation! Yes, some pullback has occurred and this is only a natural correction that must happen every now and then. If you have been reading our blog and following the Columbia market, you know we have been talking about how things have been picking up! Builders and lenders have pulled back on new projects, but the good ones are still doing business and producing quality homes and developments.
In summary, feel free to read the headlines to stay informed about what is going on nationally. It is always a good idea to know these things and this is why we blog about them. However, do your homework about the market you are in. If you are in Columbia, there is no need to panic about these headlines. We are not in the same shape the other regions are in and it is a great time to snatch up a good deal on a home! We look for Columbia to have a very solid buying season!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
Doesn't sound too hot does it? While it is obvious that the economy is struggling and real estate markets in certain regions of the country are hurting, Boone County is holding pretty steady! We haven't experienced the crazy appreciation that many parts of the county have, therefore we aren't experiencing the rapid depreciation! Yes, some pullback has occurred and this is only a natural correction that must happen every now and then. If you have been reading our blog and following the Columbia market, you know we have been talking about how things have been picking up! Builders and lenders have pulled back on new projects, but the good ones are still doing business and producing quality homes and developments.
In summary, feel free to read the headlines to stay informed about what is going on nationally. It is always a good idea to know these things and this is why we blog about them. However, do your homework about the market you are in. If you are in Columbia, there is no need to panic about these headlines. We are not in the same shape the other regions are in and it is a great time to snatch up a good deal on a home! We look for Columbia to have a very solid buying season!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
Thursday, April 24, 2008
Boone County Housing Picking Up?
Well as you can imagine we are almost a month in to the spring buying season and I must say I am fairly impressed with the real estate activity I am seeing. Given the negative media attention the housing sector has received, the increased scrutiny of lending guidelines, the volatility in mortgage rates and the notion of declining home values Boone County Missouri has fought through the battlefield and I believe finds itself in a very good position to take advantage of the last 2 years of under performance.
Through all my conversations with realtor's, title companies, our business activity and appraisers I can honestly say we have gotten off to a better start to the home buying season than I had originally planned. It seems the buyers are crawling out of the wood work and are less apt to "low balling" sellers who at times are desperate but those are far and few between given the inventory currently on the market. In fact I have heard that of Boone Counties home inventory approximately 22% are currently under contract and pending; that's very good in my opinion!
We have spoken before about how impressed we were with the resiliency of the Columbia market and these types of conversations, statistics and activity are a prime example of it. Great job to our realtor base for overcoming a ton of adversity in this market and I would also like to applaud the lending community for it's roll in "not panicking" in this extremely volatile and tough lending environment.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Through all my conversations with realtor's, title companies, our business activity and appraisers I can honestly say we have gotten off to a better start to the home buying season than I had originally planned. It seems the buyers are crawling out of the wood work and are less apt to "low balling" sellers who at times are desperate but those are far and few between given the inventory currently on the market. In fact I have heard that of Boone Counties home inventory approximately 22% are currently under contract and pending; that's very good in my opinion!
We have spoken before about how impressed we were with the resiliency of the Columbia market and these types of conversations, statistics and activity are a prime example of it. Great job to our realtor base for overcoming a ton of adversity in this market and I would also like to applaud the lending community for it's roll in "not panicking" in this extremely volatile and tough lending environment.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Tuesday, April 22, 2008
$4.00 Gas? It's Sooner Than you Think!
A barrel of oil closed today up $1.89 at $119.37 after reaching a new high of $119.90! That's right folks we are looking at over $120 for one barrel of oil. It seems with every passing day we hit new outlandish highs for the price of crude and yet the Federal Government continues to turn a deaf ear as consumers pay more for gas in a month than they do on their ailing house payment. Most of the price hikes have to do with a reduction in inventory reserves, the weakening dollar and supply disruptions having to do with Nigerian pipeline explosions.
Many leading economists predict $4.00 gas at the pump as early as late May while parts of the country (San Francisco California) have already had the pleasure of opening their pocket books to this outrageous price! Meanwhile companies like Chevron and Shell continue to make billions a quarter (yes that's right!) billions a quarter in profits and can you believe this was below analyst expectations. So what do these companies do, they take this time of rising prices and further add fuel to the fire by shutting down pipelines for maintenance adding to the reduction in capacity utilization which is approaching below 80%. Basically this means that these companies COULD produce larger quantities of crude per day but refuse to do so. What happens when demand is high and supply is low? High, high and higher prices. What a mess!!!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Many leading economists predict $4.00 gas at the pump as early as late May while parts of the country (San Francisco California) have already had the pleasure of opening their pocket books to this outrageous price! Meanwhile companies like Chevron and Shell continue to make billions a quarter (yes that's right!) billions a quarter in profits and can you believe this was below analyst expectations. So what do these companies do, they take this time of rising prices and further add fuel to the fire by shutting down pipelines for maintenance adding to the reduction in capacity utilization which is approaching below 80%. Basically this means that these companies COULD produce larger quantities of crude per day but refuse to do so. What happens when demand is high and supply is low? High, high and higher prices. What a mess!!!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Monday, April 21, 2008
A Big Thank You!
Instead of my normal Monday posts, in which I depict the market and in particular what is happening in the real estate environment and mortgage rates, I thought I would take the time to thank the individuals; in particular realtors who have and continue to keep us very busy. I cannot state enough how much I appreciate your support and friendship! The below list of individuals are absolutely great to work with and are a true credit to their profession and in particular their clients.
1) Karl Starmer & Mikki Starmer: ReMax Fulton
2) Tim & Nikki Kuchta: 3D Realty
3) Mike Hill: Weichert Realtors - First Tier
4) Jason Thornhill: Weichert Realtors - First Tier
5) Michelle Curry: ReMax Boone Realty
6) Joy Keith: Century 21 Peak Dye & Associates
7) Evelyn Nachreiner: Century 21 Peak Dye & Associates
8) Jay Wilson: Weichert Realtors - First Tier
9) Amanda Lee: Weichert Realtors - First Tier
10) Brett & Ronda Benton: Benton Homes, Inc.
11) Hayes Murray: Plaza Real Estate
12) Dennis Jordan: Weichert Realtors - First Tier
13) Brian Asbury: House of Brokers
Thank you and continue the good work!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
1) Karl Starmer & Mikki Starmer: ReMax Fulton
2) Tim & Nikki Kuchta: 3D Realty
3) Mike Hill: Weichert Realtors - First Tier
4) Jason Thornhill: Weichert Realtors - First Tier
5) Michelle Curry: ReMax Boone Realty
6) Joy Keith: Century 21 Peak Dye & Associates
7) Evelyn Nachreiner: Century 21 Peak Dye & Associates
8) Jay Wilson: Weichert Realtors - First Tier
9) Amanda Lee: Weichert Realtors - First Tier
10) Brett & Ronda Benton: Benton Homes, Inc.
11) Hayes Murray: Plaza Real Estate
12) Dennis Jordan: Weichert Realtors - First Tier
13) Brian Asbury: House of Brokers
Thank you and continue the good work!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Friday, April 18, 2008
Rain, Rain, Go Away!
Today caps off another strong week in which we have seen the momentum build in terms of how many buyers are out shopping for homes. We have received numerous calls and referrals of people looking to get pre-approved. This is a great sign that shows the Columbia market is not down and out like many say it is. Now we just need the weather to break and start cooperating. It is no secret that when the weather is favorable over a weekend, activity picks up!
We really appreciate all the referrals we have received from our past clients and current realtor partners. We couldn't do it without you!
Referrals are the core of Professional Mortgage Group's business!
To Buyer's, we wish you luck in finding that perfect home! It is a great time to buy and we know the right home is out there for you.
To Realtor's, we wish you the best in your business as the buying season ramps up! The hard work you have been putting in during these tough times will no doubt pay off!
We have all been giving our respective professions 110% and we will all be better off in the long run!
So one last time, RAIN, RAIN, GO AWAY! We are all ready for Mother Nature to cooperate so we can get out and about, enjoy Spring, and get things rolling!
Brought to you by:
Professional Mortgage Group,Inc.
"Your Columbia, MO Mortgage Broker"
We really appreciate all the referrals we have received from our past clients and current realtor partners. We couldn't do it without you!
Referrals are the core of Professional Mortgage Group's business!
To Buyer's, we wish you luck in finding that perfect home! It is a great time to buy and we know the right home is out there for you.
To Realtor's, we wish you the best in your business as the buying season ramps up! The hard work you have been putting in during these tough times will no doubt pay off!
We have all been giving our respective professions 110% and we will all be better off in the long run!
So one last time, RAIN, RAIN, GO AWAY! We are all ready for Mother Nature to cooperate so we can get out and about, enjoy Spring, and get things rolling!
Brought to you by:
Professional Mortgage Group,Inc.
"Your Columbia, MO Mortgage Broker"
Thursday, April 17, 2008
Mortgage Rates Up!
If you are an avid follower of mortgage rates you will have noticed that we have taken quite a hit since last Friday rising from 5.875% to 6.25% on a 30 year fixed rate mortgage. This has continued the theme of VOLATILE mortgage rates and in particular consumer perceptions on what rate they should or should not expect to get. Why have the rates increased so much in just 3 days? The most simplistic answer I can give has to do with company earnings coming in better than analysts forecasted. Why does this matter? When analysts forecast company profits it is always in a "per share" basis. For instance when Wells Fargo is trading at $29.00 a share and analysts have "priced in" a revenue decrease of $30M for the first quarter and the actual number was only a $15M loss traders will then "price in" the added value of there shares based on the new data thus putting more money in the stock market, which normally translates into less money in the avenues that affect mortgage rates (i.e. Mortgage Backed Securities).
As I stated on my Monday post this was going to be a very volatile week as there was a ton of economic data being released, Regional Fed Presidents were speaking and it is earnings season for most companies. All of this added up means a frustrating week for mortgage rates. If you are a really keen individual you will have noticed that the ARM rates have also become less attractive. We have gone from 5.5% to 6.25% in just 3 days! Why? Well, the "spreads" between the short term treasuries; in particular the 10 year treasury and MBS have widened to the point where there no advantages between short term and long term money at the moment.
As usual continue to check back to this site for updates and should you have any questions, comments or concerns please do not hesitate in contacting us.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
As I stated on my Monday post this was going to be a very volatile week as there was a ton of economic data being released, Regional Fed Presidents were speaking and it is earnings season for most companies. All of this added up means a frustrating week for mortgage rates. If you are a really keen individual you will have noticed that the ARM rates have also become less attractive. We have gone from 5.5% to 6.25% in just 3 days! Why? Well, the "spreads" between the short term treasuries; in particular the 10 year treasury and MBS have widened to the point where there no advantages between short term and long term money at the moment.
As usual continue to check back to this site for updates and should you have any questions, comments or concerns please do not hesitate in contacting us.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Tuesday, April 15, 2008
A Surprising Rate Quote!
We recently encountered a client who was shopping around for the best loan. She called in and applied and we promptly quoted a rate for her loan scenario. At the time it was 5.875%. She then checked around with a few other lenders and one of them completely surprised her! They said they had some credit issues and anybody would be lying to her if they told her she could do any better than 6.5%!!!! WOW, that is quite a difference! She of course ended that call and contacted us again. "Is this true?" she asked. She had no idea what "problems" they could be talking about. After going over her credit report, we could not either! There were simply no issues that would hinder then from getting the loan and rate we quoted!
This is the difference between a transaction broker and a relationship broker. The transaction broker takes a client and squeezes as much out of them as possible and moves on to the next one, never to do business with them again. A relationship broker nurtures the relationship with each client, resulting in repeat business over time. The only way a client will use your services again is if you do a great job and treat them appropriately!
Lenders that quote rates and conduct business like the one mentioned above, is why our industry has a tarnished image! They take away from the majority of professionals that conduct business that way it was meant to be conducted!
Today's market is extremely difficult to navigate for lenders, realtors, appraisers, etc..
However, one good thing that will come from this tough market will be that it will weed out some of these bad apples!
Brought to you by:
Professional Mortgage Group, Inc.
This is the difference between a transaction broker and a relationship broker. The transaction broker takes a client and squeezes as much out of them as possible and moves on to the next one, never to do business with them again. A relationship broker nurtures the relationship with each client, resulting in repeat business over time. The only way a client will use your services again is if you do a great job and treat them appropriately!
Lenders that quote rates and conduct business like the one mentioned above, is why our industry has a tarnished image! They take away from the majority of professionals that conduct business that way it was meant to be conducted!
Today's market is extremely difficult to navigate for lenders, realtors, appraisers, etc..
However, one good thing that will come from this tough market will be that it will weed out some of these bad apples!
Brought to you by:
Professional Mortgage Group, Inc.
Monday, April 14, 2008
A Huge Economic Week!
With such a big week of economic data being released I thought this blog would be best served by just detailing out the releases and letting you form your own opinion.
Monday 4/14: Mar Retail Sales: Forecast: -.1%
Monday 4/14: Feb Business Invent: Forecast: .6%
Tuesday 4/15: Mar PPI: Forecast: .4%
Tuesday 4/15: Apr. Empire Index: Forecast: -16.0%
Wednesday 4/16: Mar CPI: Forecast: .3%
Wednesday 4/16: Mar Housing Starts : Forecast: 980K
Wednesday 4/16: Mar Industrial Prod: Forecast: -.1%
Wednesday 4/16: Mar Capacity Utiliz: Forecast: 80.4
Thursday 4/17: Weekly Jobless Claims: Forecast: 385K
Thursday 4/17: Apr Philadelphia Surv: Forecast: -14.0%
Thursday 4/17: Mar Leading Econ Ind: Forecast: -.2%
For those of you who desire an explanation of these terms or how they affect the market and in particular mortgage rates, please feel free to contact me directly at shawnvt@pmg-inc.net
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Monday 4/14: Mar Retail Sales: Forecast: -.1%
Monday 4/14: Feb Business Invent: Forecast: .6%
Tuesday 4/15: Mar PPI: Forecast: .4%
Tuesday 4/15: Apr. Empire Index: Forecast: -16.0%
Wednesday 4/16: Mar CPI: Forecast: .3%
Wednesday 4/16: Mar Housing Starts : Forecast: 980K
Wednesday 4/16: Mar Industrial Prod: Forecast: -.1%
Wednesday 4/16: Mar Capacity Utiliz: Forecast: 80.4
Thursday 4/17: Weekly Jobless Claims: Forecast: 385K
Thursday 4/17: Apr Philadelphia Surv: Forecast: -14.0%
Thursday 4/17: Mar Leading Econ Ind: Forecast: -.2%
For those of you who desire an explanation of these terms or how they affect the market and in particular mortgage rates, please feel free to contact me directly at shawnvt@pmg-inc.net
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Thursday, April 10, 2008
Credit Crisis Hits Our High Education Funding
It seems the credit crisis is really eroding individual's ability to access funding for student loans, especially in Missouri. So far 45 state agencies have pulled out of the U.S. subsidized Federal Family Education Loan Program since December. This funding avenue accounts for about 60% of the $78 billion loans made to students and their parents in an effort to help fund higher education. Without this ability to finance pools of loans authorities in Missouri, New Hampshire, Texas, Pennsylvania and Iowa have all but suspended or limited their origination of loans according to a report filed on April 1st!
What happened? It seems Wall Street firms stopped using their own funds to buy these auction-rate bonds when they went unsold because of concerns about creditworthiness of the guarantors of the debt. For the first time in almost 40 years NO municipal bonds backed by student loans were sold in the first quarter! NorthStar (a provider of student loans out of Minnesota) stated last week that it would no longer process applications for federally backed and ever popular Stafford, PLUS and Grad PLUS loans.
Student loan providers were enticed by auction rate securities because it allowed them to borrow long term debt (40 years) at short-term rates (4.83% in January). However, the market for these types of bonds has all but vanished and if you are able to secure or sell auction-rate money the Wall Street firms are requiring a much higher rate of return. With margins already very slim for these companies they simply cannot afford to pay the required prices established by today's market in light of the liquidity and credit crisis.
In an effort to help curb the growing issue U.S. Education Secretary told lawmakers last month that the Bush administration is prepared to step in to make direct loans to compensate for loss of lenders. It should be noted that financial packages just started going out to incoming freshman so no one will know for sure how many students will be left holding the baggage. One thing is for sure some students will be scrambling for necessary funding to attain their goal of higher education and in particular this could very well hit home in Columbia and The University of Missouri!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
What happened? It seems Wall Street firms stopped using their own funds to buy these auction-rate bonds when they went unsold because of concerns about creditworthiness of the guarantors of the debt. For the first time in almost 40 years NO municipal bonds backed by student loans were sold in the first quarter! NorthStar (a provider of student loans out of Minnesota) stated last week that it would no longer process applications for federally backed and ever popular Stafford, PLUS and Grad PLUS loans.
Student loan providers were enticed by auction rate securities because it allowed them to borrow long term debt (40 years) at short-term rates (4.83% in January). However, the market for these types of bonds has all but vanished and if you are able to secure or sell auction-rate money the Wall Street firms are requiring a much higher rate of return. With margins already very slim for these companies they simply cannot afford to pay the required prices established by today's market in light of the liquidity and credit crisis.
In an effort to help curb the growing issue U.S. Education Secretary told lawmakers last month that the Bush administration is prepared to step in to make direct loans to compensate for loss of lenders. It should be noted that financial packages just started going out to incoming freshman so no one will know for sure how many students will be left holding the baggage. One thing is for sure some students will be scrambling for necessary funding to attain their goal of higher education and in particular this could very well hit home in Columbia and The University of Missouri!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Tuesday, April 8, 2008
Columbia... I am Impressed!
I have to say I am very impressed with Columbia. This community as a whole is very strong and driven! Especially in the case of the real estate community. This includes real estate agents, banks, brokers, appraisers, title companies, etc..
I say this because it is no secret the last 2 years have been a nightmare for this industry! We all know this, yet there are numerous companies and individuals leading the way in this volatile market! Several round table meetings have been held throughout town to brainstorm and get the word out about the market, changes being made, and how to adapt. We have taken part in a few of these and they have been great! It really shows that Columbia's real estate professionals are taking the bull by the horns instead of just accepting the market and waiting this downswing out! Who wants to take that approach! Every day we need to think positive and make the most out of the curve balls thrown to us! If we don't adapt, we will be out of the game! I think the real estate community in Columbia needs to be commended for the way things have been handled. Let's all keep up the good work and innovation! This community we be better for it and when the market does turn, we will all be better prepared to capitalize!
If any of our readers have any comments to add, please do!
We welcome your input!
Brought to you by"
Professional Mortgage Group, Inc.
I say this because it is no secret the last 2 years have been a nightmare for this industry! We all know this, yet there are numerous companies and individuals leading the way in this volatile market! Several round table meetings have been held throughout town to brainstorm and get the word out about the market, changes being made, and how to adapt. We have taken part in a few of these and they have been great! It really shows that Columbia's real estate professionals are taking the bull by the horns instead of just accepting the market and waiting this downswing out! Who wants to take that approach! Every day we need to think positive and make the most out of the curve balls thrown to us! If we don't adapt, we will be out of the game! I think the real estate community in Columbia needs to be commended for the way things have been handled. Let's all keep up the good work and innovation! This community we be better for it and when the market does turn, we will all be better prepared to capitalize!
If any of our readers have any comments to add, please do!
We welcome your input!
Brought to you by"
Professional Mortgage Group, Inc.
Monday, April 7, 2008
A light economic week
For the most part this is a very light week as far as economic releases are concerned. Most of the movement in mortgage rates this week will be due to "headline" news. For instance, Washington Mutual's release that it may receive a $5B injection from TPG Group for which the company is in current negotiations. Weeks like this can be extremely volatile for the market as these key releases are never forecasted and at times appear out of know where; much like the Bear Stearns "rescue" a couple of weeks ago.
However, with that being said there are two critical releases due out this week that I would like to acknowledge. The first is the Weekly Jobless Claims report which last week shocked the market with a $407K loss. This weeks report is due out Thursday April the 10th at 7:30AM CST with a consensus reading of ($386K). The second is the Consumer Sentiment Report which is scheduled for release on Friday April the 11th at 9:00AM CST. Both of these will most certainly be "market movers" in one direction or the other. Like I have stated almost every Monday in the past "hold onto your hats" because it's going to be another bumpy ride.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
However, with that being said there are two critical releases due out this week that I would like to acknowledge. The first is the Weekly Jobless Claims report which last week shocked the market with a $407K loss. This weeks report is due out Thursday April the 10th at 7:30AM CST with a consensus reading of ($386K). The second is the Consumer Sentiment Report which is scheduled for release on Friday April the 11th at 9:00AM CST. Both of these will most certainly be "market movers" in one direction or the other. Like I have stated almost every Monday in the past "hold onto your hats" because it's going to be another bumpy ride.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Friday, April 4, 2008
Another Strong Friday!
Today was another strong Friday! The bad news for the economy in the form of poor job reports was good for mortgage rates! They crept down all day and ended the day at 5.75% for a 30 year fixed. We sure hope this trend continues, but it no doubt will yo-yo around next week like it has been in the weeks preceding! Aside from interest rates we had another strong day for referrals and applications! It looks like there will be several buyer's out and about shopping for homes this weekend and in weeks to come! This is a great sign! We have enough inventory for them, so please shop away. We want to thank everyone out there who has been referring us their clients. PMG's business model is built around referrals and we couldn't do it without you!
Have a great weekend and be sure to check back to www.pmg-inc.net to get updates next week.
If you are a realtor, please remember you can send your clients to our website to apply or view their loan status! If you are buyer you can apply directly by clicking here.
These are great tools to make the process easy and smooth!
Brought to you by:
Professional Mortgage Group, Inc.
Have a great weekend and be sure to check back to www.pmg-inc.net to get updates next week.
If you are a realtor, please remember you can send your clients to our website to apply or view their loan status! If you are buyer you can apply directly by clicking here.
These are great tools to make the process easy and smooth!
Brought to you by:
Professional Mortgage Group, Inc.
Thursday, April 3, 2008
Will Things Get Better?
I have really been almost amazed by traders mentality these days especially when it comes to the economy. You've heard me talk time and again that rates are largely determined by the fluctuations in demand for MBS (Mortgage Backed Securities). It seems we are fighting an uphill battle armed with water balloons while the traders are at the top with bazookas! See my point? Well then let me explain it to you.
The bottom line is traders seem to have little faith in the performance of MBS given the billions of losses that investors and even huge companies (i.e. Bear Stearns) have taken on these fixed coupons. Even though underwriting guidelines have REALLY tightened, programs have been slashed, MI companies will not ensure anything over 97% ltv and the mortgage market in general has "trimmed the fat" so to speak. The economic data has to be SOOOOOO bad and I stress BAD that traders literally have to feel VERY unsure about the DOW in order to stash money in MBS or the safe haven treasuries!
The Fed, although their efforts have been very admirable, have failed to pass the HUGE savings that large corporations are feeling onto consumers. The bottom line mortgage rates have not followed suit with the reductions that The Federal Government has given the corps and especially; yes no matter how you slice it the "bail out" of Bear Stearns. Most people do not even realize that the Fed opened their doors to taking some of the "less liquid" assets Bear had in order to facilitate the transaction.
Where does that leave us? Well unless the Fed can instill the same faith in MBS that they seem to have tried to instill in the financial markets then mortgage rates will never reach there true "potential"? In the past given the same set of circumstances or performance of Treasuries and MBS (i.e. 2003) rates should be around 5.375-5.5% instead as posted on Bankrate the national average for mortgage rates was lightly over 6.0% last week. If the Fed and in particular the US government want to HELP the economy then they must address the housing sector vigorously! If that means the Fed buying "Agency" MBS then that's what THEY MUST DO! I can guarantee you that if buyers can get 5.375% on a 30 year fixed mortgage the inventory of homes at the national level will dwindle and at a fairly fast pace.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
The bottom line is traders seem to have little faith in the performance of MBS given the billions of losses that investors and even huge companies (i.e. Bear Stearns) have taken on these fixed coupons. Even though underwriting guidelines have REALLY tightened, programs have been slashed, MI companies will not ensure anything over 97% ltv and the mortgage market in general has "trimmed the fat" so to speak. The economic data has to be SOOOOOO bad and I stress BAD that traders literally have to feel VERY unsure about the DOW in order to stash money in MBS or the safe haven treasuries!
The Fed, although their efforts have been very admirable, have failed to pass the HUGE savings that large corporations are feeling onto consumers. The bottom line mortgage rates have not followed suit with the reductions that The Federal Government has given the corps and especially; yes no matter how you slice it the "bail out" of Bear Stearns. Most people do not even realize that the Fed opened their doors to taking some of the "less liquid" assets Bear had in order to facilitate the transaction.
Where does that leave us? Well unless the Fed can instill the same faith in MBS that they seem to have tried to instill in the financial markets then mortgage rates will never reach there true "potential"? In the past given the same set of circumstances or performance of Treasuries and MBS (i.e. 2003) rates should be around 5.375-5.5% instead as posted on Bankrate the national average for mortgage rates was lightly over 6.0% last week. If the Fed and in particular the US government want to HELP the economy then they must address the housing sector vigorously! If that means the Fed buying "Agency" MBS then that's what THEY MUST DO! I can guarantee you that if buyers can get 5.375% on a 30 year fixed mortgage the inventory of homes at the national level will dwindle and at a fairly fast pace.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Tuesday, April 1, 2008
A Couple Positve Days!
Friday and Monday were a couple positive days in the Columbia market!
We haven't been able to say that too much lately have we? MBS prices steadily improved during this time frame resulting in mortgage rate improvements! While we don't know if this trend will continue, it is still a good sign. As soon as the MBS market stabilizes, so will mortgage rates!
At the same time we received numerous phone calls and realtor referrals the last couple days! In taking these applications and talking to the Realtors involved, it does sound like the activity is picking up! This is of course another great sign! Even as all the negativity in the news is floating out there, the Columbia market seems to be a bit more healthy than the markets being depicted in the media! It is obvious Columbia has had its struggles or ups and downs, but for once I wanted to point out the bright side!
Another pleasant surprise has been buyer's reaction to the news that 100% financing was being eliminated! While this sounds like it may scare off many first time buyers, we haven't noticed that trend yet. All the buyer's have taken the news in stride and are more than willing to put the minimum 3% down. These buyer's have just sucked it up and stated " If we don't have 3% somewhere then we shouldn't be buying a home anyway!" I have been a bit surprised by these reactions. While I think it is the correct mindset and approach, I thought I might see a little bit more bitterness. This being a reaction to all their friends getting 100% and not them due to unlucky timing!
Like I said this is all positive news and I truly hope we have turned a corner. I hope these last few days will be more of an indication of a return to normalcy, rather than a few random good days!
If you are a realtor out there that has noticed things picking up, please post a comment. We would love to hear your feedback!
Brought to you by:
Professional Mortgage Group, Inc.
We haven't been able to say that too much lately have we? MBS prices steadily improved during this time frame resulting in mortgage rate improvements! While we don't know if this trend will continue, it is still a good sign. As soon as the MBS market stabilizes, so will mortgage rates!
At the same time we received numerous phone calls and realtor referrals the last couple days! In taking these applications and talking to the Realtors involved, it does sound like the activity is picking up! This is of course another great sign! Even as all the negativity in the news is floating out there, the Columbia market seems to be a bit more healthy than the markets being depicted in the media! It is obvious Columbia has had its struggles or ups and downs, but for once I wanted to point out the bright side!
Another pleasant surprise has been buyer's reaction to the news that 100% financing was being eliminated! While this sounds like it may scare off many first time buyers, we haven't noticed that trend yet. All the buyer's have taken the news in stride and are more than willing to put the minimum 3% down. These buyer's have just sucked it up and stated " If we don't have 3% somewhere then we shouldn't be buying a home anyway!" I have been a bit surprised by these reactions. While I think it is the correct mindset and approach, I thought I might see a little bit more bitterness. This being a reaction to all their friends getting 100% and not them due to unlucky timing!
Like I said this is all positive news and I truly hope we have turned a corner. I hope these last few days will be more of an indication of a return to normalcy, rather than a few random good days!
If you are a realtor out there that has noticed things picking up, please post a comment. We would love to hear your feedback!
Brought to you by:
Professional Mortgage Group, Inc.
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