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2015 House Trends, Retirement visas, iPhone carrier pricing and Household cleaning tips
If you had asked someone in the 1960s what the home of 2015 would look like, chances are they imagined something akin to The Jetsons’ home complete with Rosie the Robot and other space-age appliances that dressed and fed the family. But, rather than space-age technology, the biggest thing that is expected to change in future single-family homes is the size.
Florida’s property professionals believe that passing a retirement visa programme for overseas real estate buyers could generate 300,000 new jobs as well as bring new money into the Sunshine state’s housing market.
A builder in Montana is constructing a home made entirely of American products – nails, wood, bathtub, the works. It’s been challenging, but not as expensive as you might imagine.
Confused about iPhone plans from the various carriers? Who’s cheapest? It’s not as easy as that, of course. CNN Money tries to untangle the options in iPhone carrier pricing.
Cleaning the home is certainly a chore. Yahoo has guidance on how to keep it under control. The take away: incorporate daily cleaning tasks into your routine to make those big every-so-often major sweeps less major. Yahoo has another article this week on simple solutions to modern problems. How do you get stains out of tupperware? remove white rings from tables? clean a smelly coffeemaker?
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Home loan borrowing costs had reached their best levels of the week as of
yesterday afternoon, but were unable to improve further today. That leaves the Best-Execution rate decidedly
unchanged and bumps costs back up closer to their mid-point of the week, increasing the level of risk heading into tomorrow when several economic reports will be released.
CURRENT MARKET*: The “Best Execution” conventional 30-year
fixed mortgage rate is 4.625%. While this was the case last week, few lenders
were readily quoting it. More lenders were instead offering 4.75% (extra
margin in rate sheets). When taking into account loan pricing improvements
awarded over the past four sessions, a greater number of lenders are now actively quoting 4.625%. Some are even offering 4.50% again. On FHA/VA 30
year fixed “Best Execution” is 4.375% and in some cases 4.25%
is on the table. FHA quotes at 4.50% are widespread. 15 year fixed
conventional loans are best priced at 3.75%. Five year ARMs are still best
priced at 3.25% but the ARM market is more stratified and there is more
variation in what will be “Best-Execution” depending on your
individual scenario.
PREVIOUS GUIDANCE: With four consecutive days of rallying
behind us, lenders are now teetering on a shift lower in Best Execution
mortgage rates. We’re now more open to the idea of short-term floating than we
have been over the past three weeks. One important factor that will play a role
in Best Execution quotes moving lower is a continued “flight to
safety” into the bond market.
A “flight to safety” happens when investors are nervous
about owning risky assets like stocks, but do not want to miss out on earning a
return on their funds, so they allocate their money into risk-free government
guaranteed U.S Treasury debt to provide a safe-haven AND an investment return.
As benchmark Treasury yields fall on “flight to safety” buyer demand,
prices of mortgage-backed securities move higher in unison. This allows lenders
to reprice their rate sheets for the better and gives originators an
opportunity to offer fence-sitting borrowers lower mortgage rates or more
competitive closing costs.
CURRENT GUIDANCE: With the week’s major auctions over, bond
markets have turned out to be heavily predisposed to the sideways movements
that have been responsible for closing costs merely shifting around while
Best-Execution remains unchanged. With
those costs having been about as low as they were going to get before reaching
the next notch lower in Best-Ex, floating made better sense last night than it
does today when closing costs have risen back toward the middle of the week’s
range. Floating here is a crapshoot that
is probably based on tomorrow’s economic data, although there are other factors
in play which don’t adhere to a set release schedule including the debt ceiling
debate and ongoing potential of headlines out of the EU. Those two things present some uncertainty
against the “scheduled surprises” offered by economic data. Bottom line, there’s still room for personal
preference regarding floating/locking, but if borrowing costs rise tomorrow, we’d be a step closer to the next notch HIGHER in Best-Ex to more
certainly advise locking up short-term floats.
READ MORE: Rate Movers: Political Gamesmanship and Curve Spreads
—————————-
BEWARE: MND guidance is speculative in nature. We don’t have a crystal ball,
we can’t predict the future, we can only share our outlook. Making the
following considerations extra important……………………
What MUST be considered BEFORE one thinks about capitalizing on a rates rally?
1. WHAT DO YOU NEED? Rates might not rally as much as you
want/need.
2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you
want/need.
3. HOW DO YOU HANDLE STRESS? Are you ready to make tough
decisions?
*Best Execution is the most cost efficient combination of note rate offered
and points paid at closing. This note rate is determined based on the time it
takes to recover the points you paid at closing (discount) vs. the monthly
savings of permanently buying down your mortgage rate by 0.125%. When
deciding on whether or not to pay points, the borrower must have an idea of how
long they intend to keep their mortgage. For more info, ask you originator to
explain the findings of their “breakeven analysis” on your permanent
rate buy down costs.
*Important Mortgage Rate Disclaimer: The “Best Execution” loan
pricing quotes shared above are generally seen as the more aggressive side of
the primary mortgage market. Loan originators will only be able to offer these
rates on conforming loan amounts to very well-qualified borrowers who have a
middle FICO score over 740 and enough equity in their home to qualify for a
refinance or a large enough savings to cover their down payment and closing
costs. If the terms of your loan trigger any risk-based loan level pricing
adjustments (LLPAs), your rate quote will be higher. If you do not fall into
the “perfect borrower” category, make sure you ask your loan
originator for an explanation of the characteristics that make your loan more
expensive. “No point” loan doesn’t mean “no cost” loan. The
best 30 year fixed conventional/FHA/VA mortgage rates still include closing
costs such as: third party fees + title charges + transfer and recording. Don’t
forget the fiscal frisking that comes along with the underwriting process.
…(read more)
Category : author &Blog &home loan rates &MG &Mortgage &Mortgage Rate Outlook &mortgage rate prediction &mortgage rates
Home loan borrowing costs moved slightly lower today. This is the fourth consecutive day where borrowing costs have declined in the primary mortgage market. With this positive progress, we’re now teetering on a shift lower in Best Execution* quotes…
CURRENT MARKET*: The “Best Execution” conventional 30-year
fixed mortgage rate is 4.625%. While this was the case last week, few lenders
were readily quoting it. More lenders were instead offering 4.75% (extra
margin in rate sheets). But when taking into account loan pricing improvements
awarded over the past four sessions, a greater number of lenders are actively
quoting 4.625%. Some are even offering 4.50% again.
On FHA/VA 30 year fixed “Best Execution” is 4.375% and in some
cases 4.25% is on the table. FHA quotes at 4.50% are widespread. 15 year fixed conventional loans are
best priced at 3.75%. Five year ARMs are still best priced at 3.25% but the ARM
market is more stratified and there is more variation in what will be
“Best-Execution” depending on your individual scenario.
PREVIOUS GUIDANCE: Today was the first significant day of data
for bond markets to digest this week.
And that went over fairly well with no major changes to bond prices in
the secondary markets. If you floated
through Friday’s Jobs report or are a first time reader as of yesterday, the
chances of Best-Execution rates improving from 4.625% to 4.50% are better than
the chances they’ll rapidly evaporate to 4.75%.
Although this outlook can change very quickly, we’re more open to the idea of
floating than we have been recently. We’d
urge inclined floaters to pay careful attention to market movements for an
unfriendly turn-around, but for now, there are a wide variety of scenarios that
may be able to grab another .125% lower in rate while only risking increased
closing costs if markets move against you.
CURRENT GUIDANCE: With four consecutive days of rallying behind us, lenders are now teetering on a shift lower in Best Execution mortgage rates. We’re now more open to the idea of short-term
floating than we have been over the past three weeks. One important factor that will play a role in Best Execution quotes moving lower is a continued “flight to safety” into the bond market.
A “flight to safety”
happens when investors are nervous about owning risky assets like stocks, but
do not want to miss out on earning a return on their funds, so they allocate
their money into risk-free government guaranteed U.S Treasury debt to provide a
safe-haven AND an investment return. As benchmark Treasury yields fall on
“flight to safety” buyer demand, prices of mortgage-backed securities
move higher in unison. This allows lenders to reprice their rate sheets for the
better and gives originators an opportunity to offer fence-sitting borrowers
lower mortgage rates or more competitive closing costs.
—————————-
BEWARE: MND guidance is speculative in nature. We don’t have a crystal ball,
we can’t predict the future, we can only share our outlook. Making the
following considerations extra important……………………
What MUST be considered BEFORE one thinks about capitalizing on a rates rally?
1. WHAT DO YOU NEED? Rates might not rally as much as you
want/need.
2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you
want/need.
3. HOW DO YOU HANDLE STRESS? Are you ready to make tough
decisions?
*Best Execution is the most cost efficient combination of note rate offered
and points paid at closing. This note rate is determined based on the time it
takes to recover the points you paid at closing (discount) vs. the monthly
savings of permanently buying down your mortgage rate by 0.125%. When
deciding on whether or not to pay points, the borrower must have an idea of how
long they intend to keep their mortgage. For more info, ask you originator to
explain the findings of their “breakeven analysis” on your permanent
rate buy down costs.
*Important Mortgage Rate Disclaimer: The “Best Execution” loan
pricing quotes shared above are generally seen as the more aggressive side of
the primary mortgage market. Loan originators will only be able to offer these
rates on conforming loan amounts to very well-qualified borrowers who have a
middle FICO score over 740 and enough equity in their home to qualify for a
refinance or a large enough savings to cover their down payment and closing
costs. If the terms of your loan trigger any risk-based loan level pricing
adjustments (LLPAs), your rate quote will be higher. If you do not fall into
the “perfect borrower” category, make sure you ask your loan originator
for an explanation of the characteristics that make your loan more expensive.
“No point” loan doesn’t mean “no cost” loan. The best 30
year fixed conventional/FHA/VA mortgage rates still include closing costs such
as: third party fees + title charges + transfer and recording. Don’t forget the
fiscal frisking that comes along with the underwriting process.
…(read more)
Category : AQ &author &Blog &home loan rates &Mortgage &Mortgage Rate Outlook &mortgage rate prediction &mortgage rates
The primary mortgage market has been a roller coaster ride lately. Best Execution* quotes have been all over the place.
Just 10 sessions ago, after setting new year-to-date lows, home loan
borrowing costs started shifting in an unfavorable direction. Several
instances of “spiking” were seen.
Things got pretty hair there for a minute. It really looked like rates were about to erase a two-month rally.
And then came a bucket of cold water….. The June Employment Situation Report.
It was tough to find positive news in this month’s official jobs
report. Following payroll gains
averaging 215,000 per month from February through April,
employment has been essentially flat for the past 2 months. Stock
markets didn’t like this news and a “flight to safety” poured into
Treasury debt. This presented more evidence that our economic recovery
is facing
strong headwinds as we cross into the 2nd half of the
year, a view that supports our outlook for lower rates by the end of
summer. (At least
we’re still adding jobs though, not losing them, albeit at a
frustratingly
slow pace FULL RECAP)
A “flight to safety”
happens when investors are nervous about owning risky assets like stocks, but
do not want to miss out on earning a return on their funds, so they allocate
their money into risk-free government guaranteed U.S Treasury debt to provide a
safe-haven AND an investment return. As benchmark Treasury yields fall on
“flight to safety” buyer demand, prices of mortgage-backed securities
move higher in unison. This allows lenders to reprice their rate sheets for the
better and gives originators an opportunity to offer fence-sitting borrowers
lower mortgage rates or more competitive closing costs.
That was last Friday. Since then we’ve seen a significant reversal
of recent loan pricing weakness. There’s a problem though, not everyone
is keeping up with new developments. All this volatility has worn out
rate sheets. Lender offers are all over the map! While some have
adjusted to more closely reflect our current market observations, others
have barely budged since last Thursday when rates were at one-month
highs.
CURRENT MARKET*: The “Best Execution” conventional 30-year
fixed mortgage rate is 4.625%. While this was the case last week,
few lenders were readily quoting it.
More lenders were instead offering 4.75% (extra margin in rate sheets).
But when taking into account loan pricing improvements awarded on Friday and today, a greater number of lenders
are actively quoting 4.625%. Some are even offering 4.50% again (scattered reports). On
FHA/VA 30 year fixed “Best Execution” is 4.375% and in some cases 4.25% is on the table. 15 year fixed
conventional loans
are best priced at 3.75%. Five year ARMs are still best priced at 3.25%
but
the ARM market is more stratified and there is more variation in what
will be
“Best-Execution” depending on your individual scenario.
PREVIOUS GUIDANCE: We have good news and bad news. The bad
news is, the U.S. labor market isn’t producing jobs quick enough to
boost the broader economic recovery. This weighs on housing, especially
the purchase market and home prices (possible downward spiral). The
good news is, a slow economic recovery supports our outlook for lower
interest rates by the end of the summer (if they could only spark a
little more loan demand!). Still, while the case for our long-term
outlook remains intact, until we see investors display a commitment to
rally, we will be reluctant to advise floating in the short-term,
especially with unfriendly volatility only a few days behind us. We
would be willing to float into Monday though, just to give today’s poor
jobs report a chance to settle in.
CURRENT GUIDANCE: There are two decidedly different tones
between this week and last.
Whereas markets seemed fixated on mostly jobs in in the holiday
shortened work week behind, the one ahead offers many scheduled
economic releases and events to trade around. And market sentiment isn’t
looking good as a new week packed with news gets underway (not good for
stocks. good for bonds). This
implies a “flight to safety” could continue to benefit mortgage rates in
the near-term. Still, while the
case for our outlook (“lower rates by the end of the summer”) remains
intact, until we see investors
display a commitment to rally, we will be reluctant to advise floating
in the short-term, especially with unfriendly volatility only a few days
behind us. We would however be willing to float into tomorrow. Just to
see if this situation plays out in favor of lower rates right now.
—————————-
BEWARE: MND guidance is speculative in nature. We don’t
have a crystal ball, we can’t predict the future, we can only share our
outlook. Making the following considerations extra
important……………………
What MUST be considered BEFORE one thinks about capitalizing on a rates rally?
1. WHAT DO YOU NEED? Rates might not rally as much as you want/need.
2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you want/need.
3. HOW DO YOU HANDLE STRESS? Are you ready to make tough decisions?
*Best Execution is the most cost efficient combination of note rate
offered and points paid at closing. This note rate is determined based
on the time it takes to recover the points you paid at closing
(discount) vs. the monthly savings of permanently buying down your
mortgage rate by 0.125%. When deciding on whether or not to pay points,
the borrower must have an idea of how long they intend to keep their
mortgage. For more info, ask you originator to explain the findings of
their “breakeven analysis” on your permanent rate buy down costs.
*Important
Mortgage Rate Disclaimer: The “Best Execution” loan pricing quotes
shared above are generally seen as the more aggressive side of the
primary mortgage market. Loan originators will only be able to offer
these rates on conforming loan amounts to very well-qualified borrowers
who have a middle FICO score over 740 and enough equity in their home to
qualify for a refinance or a large enough savings to cover their down
payment and closing costs. If the terms of your loan trigger any
risk-based loan level pricing adjustments (LLPAs), your rate quote will
be higher. If you do not fall into the “perfect borrower” category, make
sure you ask your loan originator for an explanation of the
characteristics that make your loan more expensive. “No point” loan
doesn’t mean “no cost” loan. The best 30 year fixed conventional/FHA/VA
mortgage rates still include closing costs such as: third party fees +
title charges + transfer and recording. Don’t forget the fiscal frisking
that comes along with the underwriting process.
…(read more)
Category : AQ &author &Blog &home loan rates &Mortgage Rate Outlook &mortgage rate prediction &mortgage rates