Tuesday 5PM 01/26/10 Today’s Current Mortgage Rates Update News

I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates moved back “down” to Friday’s level, after concerns resurfaced about a potential slowdown in U.S. growth exacerbated by additional moves on Tuesday by China to cool down its surging economy. But there was also caution ahead of Wednesday’s Federal Reserve monetary policy decision, even though no change in rates is expected.

The national-average 30-year fixed-rate mortgage is now at four-and-seven-eighths percent with one and five-eighths points, down a quarter of a point from Monday, for a savings of $250 on a one-hundred thousand dollar loan..

The five-and-one-eighth percent rate fell an eighth of a point to three-eighths of one point.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average 15-year fixed-rate mortgage was “lower” as well, with the four-and-a-quarter percent rate now at one-and-A-half points, down an eighth of a point from Monday. The four-and-a-half percent rate fell to an eighth of one point.

In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system with immediate news on changes in current rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage originator by phone to lock your rate +before+ the mortgage company becomes aware of what’s going on, and changes its rates. The cost of my service is less than one dollar a day.

News from the consumer sector showed “confidence” was higher than expected this month, with a more than two-point increase.

On Wednesday, we-will-see the latest figures on New Home Sales. The estimate is that they rose “mildly” last month.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here on Wednesday morning for my next *free* mortgage rate update.

Tuesday 8AM 01/26/10 Today’s Current Mortgage Rates Update News

I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates rose on Monday after the stock market found its “footing” and held a narrow gain. There was talk that Fed Chairman “Ben Bernanke” might be granted a “second” four-year term as “Fed Head” after all. But the speculation will not end until the vote is in, and the “exact date” of the “U.S. Senate” showdown has “yet” to be determined.

The national-average 30-year fixed-rate mortgage rose to four-and-seven-eighths percent with one and seven-eighths points, up a quarter of a point from Friday, for an extra cost of $250 on a one-hundred thousand dollar loan..

The five-and-one-eighth percent rate rose an eighth of a point to “half” of one point.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average 15-year fixed-rate mortgage was “up” as well, with the four-and-a-quarter percent rate at one-and-five-eighths points, up an eighth of a point from Friday. The four-and-a-half percent rate rose to a “quarter” of one point.

In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system with immediate news on changes in current rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage originator by phone to lock your rate +before+ the mortgage company becomes aware of what’s going on, and changes its rates. The cost of my service is less than one dollar a day.

The bond market “benefited” from a report on Monday morning, saying existing home sales plunged 16.7 percent last month, after many people thought the $8000 federal income tax credit (for first-time buyers) would not be renewed. It eventually was extended, but too late to cause an improvement in the December data.

Today, we will find out how Consumer Confidence “fared” this month. The expectation is for a “sideways” trend.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here later today for my next *free* mortgage rate update.

Monday 5PM 01/25/10 Today’s Current Mortgage Rates Update News

I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates rose on Monday after the stock market found its “footing” and held a narrow gain. There was talk that Fed Chairman “Ben Bernanke” might be granted a “second” four-year term as “Fed Head” after all. But the speculation will not end until the vote is in, and the “exact date” of the “U.S. Senate” showdown has “yet” to be determined.

The national-average 30-year fixed-rate mortgage rose to four-and-seven-eighths percent with one and seven-eighths points, up a quarter of a point from Friday, for an extra cost of $250 on a one-hundred thousand dollar loan..

The five-and-one-eighth percent rate rose an eighth of a point to “half” of one point.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average 15-year fixed-rate mortgage was “up” as well, with the four-and-a-quarter percent rate at one-and-five-eighths points, up an eighth of a point from Friday. The four-and-a-half percent rate rose to a “quarter” of one point.

In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system with immediate news on changes in current rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage originator by phone to lock your rate +before+ the mortgage company becomes aware of what’s going on, and changes its rates. The cost of my service is less than one dollar a day.

The bond market “benefited” from a report on Monday morning, saying existing home sales plunged 16.7 percent last month, after many people thought the $8000 federal income tax credit (for first-time buyers) would not be renewed. It eventually was extended, but too late to cause an improvement in the December data.

On Tuesday, we will find out how Consumer Confidence “fared” this month. The expectation is for a “sideways” trend.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here on Tuesday morning for my next *free* mortgage rate update.

Sunday 3PM 01/24/10 Today’s Current Mortgage Rates Update News

I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates moved lower again this past week, because of increasingly “aggressive” verbal attacks on Wall Street, emanating from the White House. When there is uncertainty in the air, investors often turn to the perceived safety of U.S. Treasury and mortgage-backed securities to “protect” their cash. As a result, home loan rates typically decline.

The national-average thirty-year fixed-rate mortgage is now at four and seven-eighths percent with one-and-five-eighths points, down a “quarter” point from a week earlier, for a savings of $250 on a one-hundred-thousand dollar loan.

The five-and-one-eighth percent rate is now at three-eighths of one point, also down a “quarter” of a point from January 15th.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred-thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average fifteen-year fixed-rate mortgage was also down a quarter of one point, with the four-and-A-quarter percent rate now at one-and-A-half points. The four-and-A-half percent rate is now at just one-eighth of one point.

In order for you to know “when” to lock your “floating” fixed-rate mortgage, you have to have “an Early Warning” system with immediate news on changes in current rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage originator by phone to lock your rate before the mortgage company becomes aware of what’s going on, and changes its rates. The cost of my service is less than one dollar a day.

This week, Wall Street will watch to see if current Fed Chairman Ben Bernanke will be “approved” for another four-year term in that position. A U.S. Senate confirmation vote is expected. There has been substantial opposition from both Democrats and Republicans who are angry that Bernanke created $1.5 trillion in new cash out of “thin air” last year, without “prior” approval of that sum, by Congress.

Insofar as “data” are concerned, Monday will feature December existing home sales and Tuesday will see the January Consumer Confidence Index. On Wednesday, it’s time for the “Federal” Reserve’s latest announcement on interest rates, while Thursday will be “all about” weekly jobless claims. Friday is when we learn “how well” the economy did, during the October-thru-December period, with the release of the Gross Domestic Product numbers.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here on Monday morning, for my next *free* mortgage rate update.

Yesterday, mortgage backed securities closed at their highest prices since early December which allowed lenders to offer the best mortgage rates seen in 2010. These improvements have extended over into today after some unexpected news from the Obama Administration.

But first a recap of morning economic data…

First to be released was weekly jobless claims. This report gives us several readings on the number of Americans who filed for unemployment benefits in the previous week:

1. Initial claims totals the number of first time filers.
2. Continued claims totals the number of Americans who continue to file for unemployment benefits due to an inability to find a new job.
3. Extended benefits totals the number of Americans who are receiving emergency benefits beyond the traditional time allowed to collect. Under a recent government stimulus program, benefits can be extended up to 20 additional weeks and another 13 additional weeks in states with higher levels of unemployment.

To help you better understand the flow of claims. When a American first files for benefits, they are counted in initial claims. If that American files in the following week, they are now counted in continuing claims. They will continue to be counted in this category until they find a job or they use up their traditional benefits. If they continue to file after traditional benefits are used up, they leave that category and are now counted as an extended benefits recipient. They will be counted in that category until they find a job or until those benefits run out and they are no longer counted.

The report indicated initial jobless claims rose 36,000 last week to 482,000, much worse than the 440,000 that was expected. This was the third straight week of higher claims and the highest level in two months, which doesn’t point to an improving jobs sector. Continuing claims fell 18,000 to 4.599 million. Offsetting the positive continuing claims reading was the substantial increase in the extended benefits category which posted an increase of 613,000 to 5.92million! What we see from this report is the improvement in continuing claims is simply people leaving that category and moving into extended benefits. There was an interesting debate this morning regarding seasonal adjustments. AQ EXPLAINED

The next report of the day came from the Conference Board: Leading Indicators. This is a composite index of 10 economic indicators that are expected to provide a forward looking indication of economic activity. If the month over month change is positive, it indicates the economy is improving. Most of the components of this report have already been released so this doesn’t give us much new information.

The release indicated that Leading Indicators continue to indicate that our economy is stabilizing from record low levels of output. The index increased 1.1%, beating estimates for a 0.7% rise.

The final economic release of the day and the week gives us a measure of the strength of manufacturing in the Philadelphia region. Readings above 0 indicate improving conditions while readings below 0 indicate contraction. Recent readings have shown manufacturing conditions improving with last month’s report jumping from 16.7 in November to 20.4 in December. Economists surveyed expect a slight pull back with this month’s report to 18.4.

The release indicated manufacturing conditions took a step back coming in lower than expectations at 15.2.

The most important event of the day, besides the unexpected announcement from President Obama which I will explain in a moment, was the U.S. Department of Treasury announcement on the size of next week’s debt offering. When our government does not have the cash to pay for spending, they borrow money by issuing Treasuries. The added supply of debt on the market can pressure both treasury and mortgage yields higher. Today the Treasury announced new supply totaling $118 billion. The breakdown is as follows: $44billion 2 year notes, $42billion 5 year notes, and $32billion 7 year notes.These amounts are unchanged from the previous auction cycle, the bond market did not react negatively to these terms. That is a function of President Obama’s press conference though…

This morning President Obama announced that he was planning on getting more involved in the financial markets, this time with a proposal to limit the size of banks and their risk taking/profit making strategies. While details have yet to be provided, the stock market did not react well to this news. Bank stocks sold off rapidly as market participants scrambled to make sense of the regulatory proposal. This event turned out to be very supportive of interest rates. We call this a “flight to safety” rally. This occurs when investors are nervous or in a panic and need to re-allocate their funds to safe assets. There are no safer assets than US Treasury debt, which are backed by the US government’s ability to raise money from taxpayers. This “flight to safety” rally was beneficial to the mortgage market. CAVEAT:THIS WAS FORCED BUYING AND IS NOT NECESSARILY A SIGN OF FURTHER IMPROVEMENTS TO COME…READ MORE

Reports from fellow mortgage professionals indicate lender rate sheets to be improved from yesterday. While the par 30 year conventional mortgage rate remains in the 4.75% to 5.00% range, it is less expensive to get those rates today. These rates are the most aggressive in the mortgage market, only very well qualified consumers will have access to these borrowing costs. To secure a par rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less. These quotes also assume the borrower is willing to pay all closing costs including an estimated one point loan origination/discount/broker fee. If you are seeking a 15 year term, you should expect a par rate in the 4.25% to 4.50% range with similar costs.

With lenders still offering the best rates we’ve seen in over a month and further progress unknown in the rates market, I think most should consider locking in their mortgage rate. As I said yesterday, we have picked up significant gains this week, by locking you take advantage of those gains and remove risks. At this point, without a fundamental shift in investor sentiment or the economy, it is going to be very difficult for mortgage rates to move much lower. In my opinion you do not have much to gain by floating. Also like yesterday, I am not totally against floating into tomorrow, but do feel the recent price gains warrant locking in loans. If you do decide to continue floating, you should be re-evaluating your stance on a daily basis.