Last week saw the the Bureau of Labor Statistics release the Non-Farm Payrolls report (otherwise known as the “jobs report”) with numbers that significantly disappointed the market. This helped exert downward pressure on mortgage rates, enabling them to make up much of the lost ground of the previous week.

Additionally, more European solvency doubts crept into the picture providing one more “what if” for market watchers to ponder while providing some additional downward pressure on mortgage rates.

The weak jobs report showed market watchers that previously strong employment numbers may actually be seasonal in nature, which would indicate that the economy may not be as healthy as previously thought. If this is the case and we continue to see under-performing data related to the economy released, this should exert downward pressure on mortgage rates.

Mortgage Rates, Europe and the Week Ahead

We will see Consumer Price Index and the Producer Price index data being released later in the week. Both of these reports have the potential to move mortgage rates. Since these reports help measure inflation, if they show that inflation is strong, then this reduces the chances of future QE3 or a third round of quantitive easing. Expect upward pressure on mortgage rates if the market thinks that QE3 has become less likely.

Ben Bernanke is also speaking on Monday and Friday. He has the potential to move the market if any of his comments catch market watchers off guard, but this is very unlikely.

Finally, any new news out of Europe could move mortgage rates. Bad news will likely exert downward pressure on mortgage rates, with good news exerting upward pressure on rates.

Economic Calendar for Week of April 9, 2012

• Monday - Ben Bernanke Speaks
• Tuesday - n/a
• Wednesday - Import and Export Prices, Beige Book
• Thursday - Producer Price Index, Jobless Claims, International Trade,
• Friday - Consumer Price Index, Consumer Sentiment, Ben Bernanke Speaks

The Bureau of Labor Statistics released the Non-Farm Payrolls report (otherwise known as the “jobs report”) this morning. The numbers significantly disappointed the market, which is driving mortgage rates down. There is a possibility that mortgage rates could make up any ground they lost last week as they move downward.

Non-Farm Payrolls Data Disappoints

The jobs report showed that the United States economy only added 120,000 jobs in March, down from 240,000 in February. The unemployment rate decreased from 8.3% from 8.2%. The market expected around 200,000 jobs to be added, which is why the market has reacted with the stock market losing ground. This is good for mortgage rates since bad news typically drives MBS (mortgage backed securities) pricing up, which has an inverse effect of making mortgage rates go down.

Argument for Further FOMC Easing Strengthened

The FOMC (Federal Open Market Committee) released its minutes on Wednesday and announced that QE3 (third round of quantitative easing) was of the table for the short term. Since this jobs data may indicate that previous gains were seasonal, this data in addition to any future data that disappoints may pave the way for QE3 to come to fruition. This could pave the way for help mortgage rates stay at lower levels.

Where Are Mortgage Rates Now?

Rates can change often, especially on days like today. To get an up to the minute mortgage rate quote and lock in a rate at near all time historical lows, request a free rate quote using the form above or call us directly. We can also help answer any mortgage related questions you might have and discuss which loan programs make the most sense for your needs.

Yesterday the Federal Open Market Committee, otherwise known as the FOMC or FED released its minutes for the March 13, 2012 FOMC meeting.

These minutes outline the meeting and are typically released 3 weeks post meeting. During FOMC meetings, member discuss the state of the economy based on their most recent available data and vote on forward moving measures.

FOMC Minutes Summary

The FOMC minutes revealed that the members are watching the market with a wait and see attitude before making changes to its current policy stance. This means that any future easing by the FOMC is on hold for now.

You may here market watchers refer to market easing as QE3, which is short for the third round of quantitative easing or “quantitative easing 3″. Quantitative easing refers to certain monetary policy actions the FOMC can use to help stimulate the economy.

The FOMC also indicated that they are not fully confident that the employment growth the market has seen thus far will continue.

Mortgage Rate Reaction to the FOMC

The markets reacted strongly to the FOMC minutes with a fast rise in mortgage rates. The FOMC statements were a bit of a surprise to the markets since the statements about no further easing in the short term seemed for some to conflict with past statements made by the FOMC.

Where Are Mortgage Rates Now?

If we posted the current mortgage rates at the time of this writing, there is a very high likelihood they would be out of date by the time you read this since mortgage rates can change many times each day. Please request a free mortgage rate quote using the form above or call us directly to get up to the minute mortgage rate updates.

For the second time in the last two years, the Federal Housing Administration (FHA), a U.S. financing agency,  will raise the premiums that it charges borrowers on April 9, 2012.

This deadline is revised from the previous deadline of April 1, 2012.

Beginning on April 9, 2012, the FHA will raise by 0.75 percentage points to 1.75%, the upfront insurance premiums that borrowers must pay when they take out an FHA backed mortgage. This means that borrowers with a $250,000 mortgage will be paying an additional $1875 in upfront loan costs.

Borrowers also pay annual insurance premiums when they have an FHA backed mortgage and those fees will also increase by .10 percentage points. This equates to a $250 annual increase in mortgage insurance premiums paid for a loan size of $250,000.

These changes will not affect FHA mortgages obtained before the deadline of April 9, 2012.

Is an FHA Loan Right For Me?

That’s a great question. The truth is that it depends. Since your financial and mortgage situation is unique, it’s hard to say without knowing the details of your situation and what your long and short term goals are.

For a free consultation or rate quote, please call us or request a fast rate quote. We can help you understand if an FHA loan will fit your needs and we can put together a customized mortgage strategy based on your needs and goals.

Last week is saw mortgage rates decrease a bit after a rise over the past few weeks. Last week also saw a handful good but not great economic reports come out. That data was a bit of a disappointment to the markets, which helped exert downward pressure on mortgage rates.

Economic Data that May Move Mortgage Rates

This week will see some important economic reports being released including the FOMC Minutes from the last Fed meeting and a few reports related to employment that have the potential to move mortgage rates.

Expect great news from these reports to exert upward pressure on mortgage rates, while any negative or less than stellar news may exert downward pressure on mortgage rates.

Europe in the Spotlight

This week new attention is being focused on Europe, once again. While the debt debacle in Greece has been resolved for the time being; now Spain, Italy and other Euro countries are showing signs of unease as they attempt to deal with their own debt issues. Any new or negative information coming from the region could provide more evidence that a recession in Europe may be in the cards.

Negative news from Europe is good for mortgage rates in the United States, however. Expect mortgage rates to tick lower should any significant Euro debt situations arise or escalate, especially with regards to Italy and Spain.

Economic Calendar for Week of April 2, 2012

• Monday - ISM Mfg Index, Construction Spending
• Tuesday - Factory Orders, Motor Vehicle Sales, FOMC Minutes
• Wednesday - ADP Employment Report
• Thursday - Jobless Claims
• Friday - Employment Situation

This week is seeing mortgage rates decrease a bit after a rise over the past few weeks. The overall theme this week is that the economic data that was released was good, but not great, which was a bit of a disappointment to the markets. This means that the lackluster data helped exert downward pressure on mortgage rates.

Weekly Economic Data Summary

Personal Income & Outlays Data: This week saw February’s Personal Income & Outlays report show a 0.2% increase in spending (lower than expectations) with a rise in spending of 0.8% (higher than expectations). These numbers indicate that American consumers spent more money while bringing home less money.

Consumer Sentiment Data: This morning saw the University of Michigan post their revised Consumer Sentiment Index for the month of March. The updated reading of 76.2 showed a significant increase from the preliminary reading of 74.3. This number is higher than the markets were expecting.

Jobless Claims: Unemployment claims fell this week to 359,000, a decrease of 5000 claims.

GDP / Gross Domestic Product: There were no surprises for Gross Domestic Product for the fourth quarter as it came in at 3.0%, as market watchers forecasted. This is the best GDP growth data that has been released in the last couple of years.

Where Are Mortgage Rates Now?

Mortgage rates can change multiple times per day based on what is occurring in the markets. Not only can we help you get a fast mortgage quote so you can get an up to the minute update, but we can also help you lock in a mortgage rate if that makes the most sense for your your specific mortgage needs. Additionally, we can help answer any questions you might have about which loan programs are available and might fit your mortgage needs and goals the best.

It is easy to get swept up in the excitement of shopping for a new home, especially when it is your first. It is fun to tour open houses and get a feel for what is on the market that might feel like home. That being said, beginning to house hunt before you have gotten pre-approved with a mortgage lender may lead to disappointment.

You may think you know what you can afford, but  factors such as your income, credit scores and credit play a role in determining how much home you can qualify for and afford. You don’t want to discover that after you have put in an offer on your “dream” home that you don’t qualify for the size of loan you need or that there are other complications related to your credit or other credit worthiness factors.

Mortgage Pre-Approval Before You Shop

When you get pre-approved for a mortgage through a mortgage lender, the lender does a complete financial review and provides you with the maximum price you can spend on your home. When you have this number in mind while house hunting, there are the following benefits:

• You can begin your house hunt with reasonable expectations based on what you can truly afford
• When submitting an offer on a home, you know exactly how much you can bid during the negotiations

Pre-Approval: Insurance When House Hunting

There are buyers that believe a pre-approval is only beneficial to make them more credible when making an offer. If the above teaches you anything it should be that getting pre-approved makes you more informed and reduces the stress of your house hunt and insures you aren’t using inaccurate figures when setting a home price that you believe you can qualify for and afford.

You have enough to focus you energy on, the last thing you need to worry about is getting your financing confirmed right before you make an offer on your home when there are other offers and your offer is time senstiive. Getting pre-approved is the first step you should take before house hunting.

Mortgage rates moved more last week than has previously been seen in the last few months, ending the week slightly higher. This week has a few economic events as shown in the calendar below which have the potential to move mortgage rates.

A handful of FOMC board members will be speaking thoughout the week. While their words do have the potential to move markets, it is unlikely that they will speak about any factors in the market that aren’t already widely known by market watchers.

Ben Bernanke Speaks

This morning FOMC Chairman Ben Bernanke spoke briefly, again assuring the markets that the Federal Reserve still intends to keep rates low into 2014. He touched on the obvious observation that the job market in the US is still weak.

Ben Bernanke, FOMC Chairman Weighs in On Future FOMC Actions

Further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported  by continued accomodative policies.

Economic Calendar for Week of March 26, 2012

• Monday - Pending Home Sales Index
• Tuesday - S&P Case-Schiller HPI, Consumer Confidence
• Wednesday - Durable Goods Orders
• Thursday - GDP, Jobless Claims, Ben Bernanke Speaks
• Friday - Personal Income and Outlays, Consumer Sentiment

Last week saw the beginning of an upward trend for mortgage rates that may very likely continue this week. The upward change is due in part to the positive US economic and housing data that has been coming out in the past few months and the Greek debt resolution that has come to fruition.

Despite the fact that the Greek resolution is not airtight, the markets are happy to see that a worst case scenario was avoided.

Mortgage Rates: The Week Ahead

Mortgage rates will likely continue to rise with unless we see new issues arise with Greek debt resolution, issues arise with other European Union members or we have bad news come out relating to the US economy.

There isn’t a lot of economic data coming out this week, but a rule of thumb is that any good news relating to the health of the US economy will exert upward pressure on mortgage rates and any bad news will help exert downward pressure on mortgage rates.

Economic Calendar for Week of March 19, 2012

• Monday - Housing Market Index
• Tuesday - Housing Starts
• Wednesday - Existing Home Sales
• Thursday - Jobless Claims
• Friday - New Home Sales

Where Are Mortgage Rates Now?

Mortgage rates can change many times throughout the day, so any rate we print here, would very likely be out of date by the time you read this. To get the latest mortgage rates simply use the fast quote form above or call us directly.

We can not only tell you where mortgage rates are, but can also answer any mortgage related questions you might have and can even put together a customized mortgage strategy built around your financial needs and goals.

The FOMC (Federal Open Market Committee) or FED concluded its one day meeting on Tuesday where it chose to leave the overnight funds rate (the rate at which banks lend money to each other) at a range of 0.00% to 0.25%, for the fourth straight month.

Key Takeaways From the Fed About Current Conditions

1. Labor market / job market conditions have improved
2. Household and business spending have improved
3. Housing remains depressed
4. Inflation has been subdued
5. Long term inflation expectations are stable

Key Takeaways From the Fed About Future Conditions

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects moderate economic growth over coming quarters and consequently anticipates that the unemployment rate will decline gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets have eased, though they continue to pose significant downside risks to the economic outlook. The recent increase in oil and gasoline prices will push up inflation temporarily, but the Committee anticipates that subsequently inflation will run at or below the rate that it judges most consistent with its dual mandate.

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

How Did the FOMC Meeting Affect Mortgage Rates? Where Are Rates Now?

Since mortgage rates changes throughout the day, the only way to get an up to the minute update is by requesting a rate quote in the fast rate quote form above or by calling us. These two ways are the best way to insure you are getting the latest and most accurate mortgage rates.

In addition to the most current mortgage rates, we can also help you understand which loan programs best fit your needs and whether or not a rate lock makes sense for your current mortgage needs.

Last week saw mortgage rates waiver, with most movement being sideways, which was a bit of a surprise. Many market watchers expected positive positive employment data and a resolution to the Greek Debt debacle to cause mortgage rates to rise significantly, which did not occur.

Last week saw the Labor Department release the monthly Employment data for February showing an 8.3% unemployment rate that was unchanged from January. They also showed that 227,000 new jobs were added.

On Thursday of last week, the Greek debt deal was completed with somewhere around 85% of investors agreeing to a swap. This was good news for the markets, but still not a 100% guarantee of a final resolution. The markets will continue to watch the situation closely in the coming days and weeks.

Mortgage Rates and the Week Ahead

On Tuesday, the Commerce Department will be releasing February’s Retail Sales data, which consumer spending. This data is important to the market because consumer spending makes up approximately two-thirds of the U.S. economy.

Tuesday will also see the a one day meeting by the Federal Open Market Committee (FOMC) meeting take place. The market will be closely watching this meeting and any statements coming out of the meeting or made by Ben Bernanke have significant potential to move mortgage rates.

The reality is that the stage is and has been set for mortgage rates to increase for sometime. Since we’re seeing more and more evidence of a bottom in housing, increased health in the US Economy and a resolution of sorts for the Greed Debt Debacle, this will likely be sooner rather than later.

Economic Calendar for Week of March 12, 2012

• Monday - Treasury Budget
• Tuesday - Retail Sales, FOMC Meeting & Announcement, Business Inventories
• Wednesday - Import and Export Prices, Ben Bernanke Speaks
• Thursday - Jobless Claims, Producer Price Index, Philadelphia Fed Survey
• Friday - Consumer Price Index, Consumer Sentiment

The big news that the market has been waiting for all week was the final outcome of last nights Greek debt settlement talks and the employment numbers that were released earlier today.

Greek Debt Resolution Agreed Upon

Last night, the Greek debt deal was completed with somewhere around 85% of investors agreeing to a swap. This is good news for the markets, but still not a 100% guarantee of a final resolution. The markets will continue to watch the situation closely in the coming days and weeks.

Employment Numbers Released by Labor Department

This morning, the Labor Department  released the monthly Employment for February showing an 8.3% unemployment rate that was unchanged from January. They also showed that 227,000 new jobs were added. This news is not bad, but also not as good as some market watchers were expecting.

How This News Has Affected Mortgage Rates

So far the less than positive employment news and Greek default news has pushed rates up minimally. That being said, there is still talk of some fallout due to the way the Greek settlement has been structure, which could make the existing Greek debt resolution appear less than ideal to the markets. If some fallout or negative effects occur, these could discount last night’s resolution in the eyes of market watchers and affect mortgage rates.

Mortgage rates also move throughout the day, every day, so the best way to get the latest mortgage rates is to call us or to request a rate quote using the fast rate quote above. We can also help answer any other mortgage related questions you might have in relation to rate locks and loan programs.

For the second time in the last two years, the Federal Housing Administration (FHA), a U.S. financing agency, has announced that it will raise the premiums that it charges borrowers in April.

Beginning on April 1, 2012, the FHA will raise by 0.75 percentage points to 1.75%, the upfront insurance premiums that borrowers must pay when they take out an FHA backed mortgage. This means that borrowers with a $250,000 mortgage will be paying an additional $1875 in upfront loan costs.

Borrowers also pay annual insurance premiums when they have an FHA backed mortgage and those fees will also increase by .10 percentage points. This equates to a $250 annual increase in mortgage insurance premiums paid for a loan size of $250,000.

These changes will not affect FHA mortgages obtained before the deadline of March 31, 2012.

Is an FHA Loan Right For Me?

That’s a great question. The truth is that it depends. Since your financial and mortgage situation is unique, it’s hard to say without knowing the details of your situation and what your long and short term goals are.

For a free consultation or rate quote, please call us or request a fast rate quote. We can help you understand if an FHA loan will fit your needs and we can put together a customized mortgage strategy based on your needs and goals.

Last week saw more economic data showing modest economic growth in the US.

Positive economic data last week consisted of GDP numbers showing a 3% annual rate in the fourth quarter of 2011, a rise in consumer confidence and initial jobless claims falling.

Further confirmation of a possible recovery in progress came from Fed Chairman Ben Bernanke, whom spoke and also mentioned in subtle terms that he is seeing moderate growth as well in the US.

Mortgage Rates in the Week Ahead

This week the markets will have a close eye on Greece and the Non-Farms Payroll Report due at the end of the week (otherwise know as the “jobs report”). The market is looking for more confirmation to supplement previous positive or moderately positive employment / jobs data that has trickled out in the past month. More confirmation will help market watchers better understand what to expect in the future.

Very positive news from the jobs report on Friday has the potential to make mortgage rates spike upward. 

Greece? Yes, Greece AGAIN!

The markets will also have a close eye on Greece this week as Thursday is the due date for Greece’s swap-offer deadline. Keep in mind that a positive outcome in the Greece debacle exerts upward pressure on mortgage rates and an negative outcome will exert downward pressure on US mortgage rates.

This week, the existing Greek plan is looking for a yes vote from 75% of private borrowers involved for the plan to move forward. The bottom line that if voters approve the measure, mortgage rates could move rates up, even though the agreement is already somewhat priced into the existing market. A failure to approve could cause some volatility in the market, which would likely drive mortgage rates down or at least exert downward pressure on US mortgage rates.

Economic Calendar for Week of March 5, 2012

• Monday - Factory Orders, ISM Non-Mfg Index
• Tuesday - n/a
• Wednesday - ADP Employment Report, Productivity and Costs, EIA Petroleum Status Report
• Thursday - *Jobless Claims
• Friday - Employment Situation

Need Help With Your Mortgage?

We can help you lock a rate, get pre-approved or simply answer any mortgage related questions you have. The truth is that it isn’t always easy to understand whether or not a rate lock makes sense or which loan program best fits your needs. We can help you put together a mortgage strategy that makes the most sense for your needs. Please contact us at the number above or request a rate quote to see where the market is at today.

The markets continued to monitor the Greece Debt situation this week. Although Greece is working through a solution to prevent default, there is still concern about whether the existing solution will actually work. Should there be news of any issues with the Greek resolution, look for increased downward pressure on mortgage rates.

Beige Book data released by the FED this week showed very slow growth is occurring in the US Economy. This sentiment was echoed by GDP data that was released.

GDP (Gross Domestic Product) Shows Modest Growth

This week GDP (Gross Domestic Product) data was released which showed that economic growth was actually stronger than originally thought in the fourth quarter of 2011. GDP is the broadest measure of the nation’s economy and output. According to data released by the Commerce Department on Wednesday, GDP grew at a 3% annual rate in the fourth quarter of 2011. This is an improvement from the 1.8% growth in the prior quarter.

Mortgage Rates: The Week Ahead

Look for the Employment Report next week to be closely watched by the markets, with the potential to move mortgage rates. There are also many other pieces of data being released with the potential to move mortgage rates and strong potential to move rates up.

Should I Lock In a Mortgage Rate or Wait?

As the market looks for continued confirmation that housing has hit a bottom and the Economy is gaining strength, more and more pieces of data are trickling out to confirm this. Given that mortgage rates have been at or near all time historical lows for months, they are putting in a bottom or level of support, the longer they stay above this support, the hard it will be to break below that support. This means that mortgage rates have more potential to move up and the question is not whether they will move up, but when.

That being said, your financial situation and mortgage needs are unique. We can not only help you understand whether or not you should lock in your mortgage rate now, but can help you understand which mortgage program best fit your needs.