http://www.professionalmortgage.com/blog/index.php Copyright 2008, No Author No Author en-US SPHPBLOG 0.4.8 http://www.professionalmortgage.com/blog/index.php?entry=entry080625-121651
Following this scenario, mortgage rates would also drop due to the anti-inflation stance. The downside to this rosy picture is that a stronger dollar would make foreign investors less likely to buy US Treasuries and Mortgage Bonds, because their home currency would be worth less than it was.

I still think the FOMC stands pat and tries to move the markets with its words, rather than with a rate move. Stay tuned.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry080625-121651 No Author Wed, 25 Jun 2008 16:16:51 GMT http://www.professionalmortgage.com/blog/comments.php?y=08&m=06&entry=entry080625-121651 http://www.professionalmortgage.com/blog/index.php?entry=entry080624-110826
The FOMC is walking a very narrow line, with raging food and energy prices on one side and the need for accomododative borrowing and liquidity on the other. Hopefully the FOMC will get it right.

Mu guess is that they will not change rates, but make a strong statement in the meeting minutes that they are at the ready with a rate hike if inflation can't be controlled.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry080624-110826 No Author Tue, 24 Jun 2008 15:08:26 GMT http://www.professionalmortgage.com/blog/comments.php?y=08&m=06&entry=entry080624-110826 http://www.professionalmortgage.com/blog/index.php?entry=entry080104-203929
I am returning from a family vacation and will be in the office on Monday the 7th. I will continue with regular blog entries then.

Have a great weekend.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry080104-203929 No Author Sat, 05 Jan 2008 01:39:29 GMT http://www.professionalmortgage.com/blog/comments.php?y=08&m=01&entry=entry080104-203929 http://www.professionalmortgage.com/blog/index.php?entry=entry071221-070235
Morgan released a statement announcing they have a 4th quarter loss of $3.6 billion, due mostly to a $9.4 billion write-down form their investments in mortge backed securities. Now that is a lot of money. They addressed their problem by selling the Chinese Government a 9.9% share of the company for $5 billion. The new CEO, John Mack, blamed the loss on a "small team" of employees that have been fired. Always easy to blame someone that is no longer around.

I find the size of the amounts amazing. Also, Morgan's stock price rose $2 on the news of the cash infusion from China. Interesting as well. The main impact of this news on Main Street is the sames as it has been. Certain high risk mortgage loans have ben drastically changed or eliminated.

The good news is also a recurring theme. There are still many, many programs available and rates are great.

Have a wonderful day.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry071221-070235 No Author Fri, 21 Dec 2007 12:02:35 GMT http://www.professionalmortgage.com/blog/comments.php?y=07&m=12&entry=entry071221-070235 http://www.professionalmortgage.com/blog/index.php?entry=entry071220-065100
As I mentioned yesterday, the mortgage market has been changing daily, but one of the most important things associated with mortgage loans has remained very positive. Interest rates have been wonderful. Thirty year fixed rates have been between 6.00% and 6.25% (with 0.00 points) for an extended period of time, and recent activity in the mortgage market suggests that rates will remain very attractive. A borrower can even get a rate of 5.50% by paying an upfront fee (points). Fifteen year fixed rates have been 5.875% for quite some time.

Have a great day.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry071220-065100 No Author Thu, 20 Dec 2007 11:51:00 GMT http://www.professionalmortgage.com/blog/comments.php?y=07&m=12&entry=entry071220-065100 http://www.professionalmortgage.com/blog/index.php?entry=entry071219-061739
We all remember the "Liquidity Crisis" that happened this summer, and some people believe we still have the same problem. My opinion is that there is plenty of liquidity, read money, on Wall Street available to purchase mortgage loans. I think the institutions that would normally buy mortgage backed securities still have the cash, they just don't want to buy them.

This is especially true for Jumbo Loans (loan amounts above $417,000) at the present time. This summer, jumbo rates jumped from 6.75% to 8.00%. Then as the markets calmed, they dropped to 7.00%. Now they have climbed back to roughly 7.5%

All of this information leads me to my point, which is, don't wait and take the risk that the mortgage program which best meets your needs is no longer available or the rate has worsened. If you are looking to make a real estate purchase or refinance a mortgage, NOW is the time.

Have a great day!]]> http://www.professionalmortgage.com/blog/index.php?entry=entry071219-061739 No Author Wed, 19 Dec 2007 11:17:39 GMT http://www.professionalmortgage.com/blog/comments.php?y=07&m=12&entry=entry071219-061739 http://www.professionalmortgage.com/blog/index.php?entry=entry071212-110133
The Discount Rate is the rate the Fed charges banks to borrow from the Fed. A 1/2 point decrease in the Discount Rate would have a been a more aggressive move, providing liquidity to the mortgage market and signaling that the Fed wanted to be pro-active.

I have heard some rumors that we may see something very unique from the Fed in the next few days. Stay tuned.

Have a great day.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry071212-110133 No Author Wed, 12 Dec 2007 16:01:33 GMT http://www.professionalmortgage.com/blog/comments.php?y=07&m=12&entry=entry071212-110133 http://www.professionalmortgage.com/blog/index.php?entry=entry071211-095102
WaMu has been one of the most aggressive lenders in the country, continuing to market their payment options arms. These are the programs that allow a borrower to make a very small mortgage payment, while deferred interest is being added to the balance of the mortgage. This process is known as negative amortization, and is one of the reasons that there are ao many borrowers having difficulty making their payments. When the rate adjusts, the new payment is based on the now larger mortgage balance, creating cash flow problems.

The intended layoffs will represent 22% of thier staff, or roughly 2,600 employees. They will also close over half of their home loan centers, which are retail offices, and 9 Processing Centers used in their wholesale origination business.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry071211-095102 No Author Tue, 11 Dec 2007 14:51:02 GMT http://www.professionalmortgage.com/blog/comments.php?y=07&m=12&entry=entry071211-095102 http://www.professionalmortgage.com/blog/index.php?entry=entry071210-135822
My money is on .25%. For what it's worth, I think the Non-farm Payroll Report last Friday was large enough (94,000 new jobs) to allow Big Ben (no, not Roethlisberger, Bernanke) and his band of policy makers to take the safe route. The Fed has been waffling a little bit over the past few months, trying to determine whether the risk of inflation was outweighing the necessity to stimulate the economy and avoid a recession.

And we think we have it tough with our jobs. It must be wild to have the weight of the country's economy, and people's well-being, on your shoulders.

Look for a .25% and watch your Home Equity Lines of Credit go down accordingly. It looks like we are going to save a little interest over the short term.

Have a great day.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry071210-135822 No Author Mon, 10 Dec 2007 18:58:22 GMT http://www.professionalmortgage.com/blog/comments.php?y=07&m=12&entry=entry071210-135822 http://www.professionalmortgage.com/blog/index.php?entry=entry071204-092836
Most of us are hoping for a rate cut, thinking it will stimulate the housing market and the mortgage market. Unfortunately, any rate adjustment the Fed makes typically takes 6 months to filter through the economy, so the overall effects are not felt immediately.

What we do feel immediately is a change in the Wall Steet Journal Prime Rate. Prime adjusts almost instantly once the Fed releases its decision. This is great for those of us with Home Equity Lines Of Credit, because our rates drop the corresponding amount.

This is where it can get frustrating. Some banks have a policy that allows them to wait up to 45 days before they drop your HELOC rate. The benefit to the policy is that if rates are on the rise, they typically wait 45 days then as well. The bottom line is that a rate cut always has some positives.]]> http://www.professionalmortgage.com/blog/index.php?entry=entry071204-092836 No Author Tue, 04 Dec 2007 14:28:36 GMT http://www.professionalmortgage.com/blog/comments.php?y=07&m=12&entry=entry071204-092836