Last Week in the News
The nation's service economy expanded at a faster-than-expected pace in June, as the Institute for Supply Management (ISM) said on July 5 that its index of business activity in the non-manufacturing sector registered 60.7, topping May's reading of 59.7 and Wall Street's forecast of 58.1. A reading above 50 indicates expansion, while one below 50 signals contraction. The June reading was the highest since April 2006, when it hit 61.1.
Output at U.S. factories, plants and utilities also expanded in June, the ISM reported July 2. The ISM's manufacturing index rose to 56 in June, above the May reading of 55, and higher than the market expectation of 55.4. The reading marked the fifth consecutive month of growth for the manufacturing sector.
Late payments on home equity loans -- payments that are 30 days or more past due -- rose to 2.15% in the first quarter of this year, up sharply from 1.92% in the final quarter of 2006, the American Bankers Association (ABA) reported July 3. On a brighter note, the ABA also reported that late payments on credit card bills dropped to 4.41% in the first quarter, down from 4.56% in the fourth quarter of 2006, the best showing in nearly a year.
The average rate for a 30-year, fixed-rate mortgage fell to a one-month low, Freddie Mac said July 5. Rates have ebbed in recent weeks as investors' fears concerning inflation have eased.
This week look for updates on the trade balance on July 12 and retail sales on July 13.
Showing posts with label mortgage loans. Show all posts
Showing posts with label mortgage loans. Show all posts
Tuesday, July 10, 2007
Monday, May 21, 2007
Economic Update for 5/21/2007
Last Week in the News
The Consumer Price Index (CPI), which measures inflation at the retail level, rose 0.4% in April, compared with a 0.5% rise in March, the Commerce Department reported May 15. Economists had forecast a 0.6% increase. The more closely watched core CPI, which strips out volatile food and energy prices, rose 0.2%, after a 0.1% gain in March. While core CPI edged up in April, the 12-month core CPI average declined to a 2.3% rise, the lowest rate since April 2006.
Industrial production jumped a bigger-than-expected 0.7% in April, the Federal Reserve said May 16. Analysts expected production to rise only 0.3%. April's rise, paced by gains in auto and high-tech manufacturing, was only the third increase in the last eight months.
The Conference Board's Index of Leading Indicators -- a key gauge of future economic growth -- slipped 0.5% in April, greater than the 0.1% decline analysts had predicted. Of the 10 indicators, only stock prices and the money supply (the total amount of currency and checkable deposits in circulation, which influences interest rates) moved in a positive direction.
Housing starts unexpectedly rose 2.5% in April, confounding analysts who had forecast a 2.2% drop, the Commerce Department reported May 16. But applications for building permits plunged 8.9% in April, the sharpest fall in 17 years.
Americans filed 5,000 fewer jobless claims for the week ended May 12, the Labor Department said May 17. Economists expected a slight rise. Meanwhile, mortgage rates for the week ended May 16 nudged up on lingering Federal Reserve concerns about inflation.
This week look for updates on new home sales on May 24 and existing home sales on May 25.
The Consumer Price Index (CPI), which measures inflation at the retail level, rose 0.4% in April, compared with a 0.5% rise in March, the Commerce Department reported May 15. Economists had forecast a 0.6% increase. The more closely watched core CPI, which strips out volatile food and energy prices, rose 0.2%, after a 0.1% gain in March. While core CPI edged up in April, the 12-month core CPI average declined to a 2.3% rise, the lowest rate since April 2006.
Industrial production jumped a bigger-than-expected 0.7% in April, the Federal Reserve said May 16. Analysts expected production to rise only 0.3%. April's rise, paced by gains in auto and high-tech manufacturing, was only the third increase in the last eight months.
The Conference Board's Index of Leading Indicators -- a key gauge of future economic growth -- slipped 0.5% in April, greater than the 0.1% decline analysts had predicted. Of the 10 indicators, only stock prices and the money supply (the total amount of currency and checkable deposits in circulation, which influences interest rates) moved in a positive direction.
Housing starts unexpectedly rose 2.5% in April, confounding analysts who had forecast a 2.2% drop, the Commerce Department reported May 16. But applications for building permits plunged 8.9% in April, the sharpest fall in 17 years.
Americans filed 5,000 fewer jobless claims for the week ended May 12, the Labor Department said May 17. Economists expected a slight rise. Meanwhile, mortgage rates for the week ended May 16 nudged up on lingering Federal Reserve concerns about inflation.
This week look for updates on new home sales on May 24 and existing home sales on May 25.
Tuesday, May 15, 2007
Economic Update for 5/15/2007
The Producer Price Index (PPI), which measures the price of goods at the wholesale level, rose 0.7% last month, down from a 1% gain in March, the Labor Department reported May 11. But the more closely watched core PPI, which strips out volatile food and energy prices, showed no rise after also remaining unchanged in March. Economists had forecast a 0.2% percent rise in core PPI.
The Federal Reserve kept the federal funds rate, an overnight bank lending rate that affects credit card, home equity and other loan rates, at 5.25%. In its statement, May 9, the Fed noted that "the predominant policy concern remains the risk that inflation will fail to moderate as expected."
Retail sales unexpectedly fell 0.2% in April, hurt by rising gasoline prices and a sluggish housing market. Economists had forecast a 0.4% increase.
The U.S. trade deficit widened more than expected in March to $63.9 billion, as higher oil prices helped push total imports to the second highest level on record, the Commerce Department reported May 10. The trade gap swelled 10.4% from February, surprising Wall Street economists who had pegged the trade gap at $60 billion.
The Mortgage Bankers Association's index of mortgage applications increased 3.6% for the week ended May 4, the third consecutive week the MBA's applications index has risen. Meanwhile, Freddie Mac reported that mortgage rates on 30-year terms eased slightly for the week ended May 11.
This week look for updates on the Consumer Price Index on May 15 and housing starts on May 16.
The Federal Reserve kept the federal funds rate, an overnight bank lending rate that affects credit card, home equity and other loan rates, at 5.25%. In its statement, May 9, the Fed noted that "the predominant policy concern remains the risk that inflation will fail to moderate as expected."
Retail sales unexpectedly fell 0.2% in April, hurt by rising gasoline prices and a sluggish housing market. Economists had forecast a 0.4% increase.
The U.S. trade deficit widened more than expected in March to $63.9 billion, as higher oil prices helped push total imports to the second highest level on record, the Commerce Department reported May 10. The trade gap swelled 10.4% from February, surprising Wall Street economists who had pegged the trade gap at $60 billion.
The Mortgage Bankers Association's index of mortgage applications increased 3.6% for the week ended May 4, the third consecutive week the MBA's applications index has risen. Meanwhile, Freddie Mac reported that mortgage rates on 30-year terms eased slightly for the week ended May 11.
This week look for updates on the Consumer Price Index on May 15 and housing starts on May 16.
Monday, April 23, 2007
Economic Update for 4/23/2007
Last Week in the News
Fueled by surging energy prices, the closely watched Consumer Price Index (CPI) shot up 0.6% in March, the biggest increase since a similar rise in April 2006. However, core inflation -- which excludes volatile energy and food prices -- rose 0.1% in March, the smallest increase in three months, and better than the 0.2% rise Wall Street had expected. Inflation for the first quarter of 2007 was 4.7%, far above the 2.5% increase for all of 2006.
The Conference Board said its Index of Leading Economic Indicators climbed a tepid 0.1% to 137.4 in March, as analysts had expected. The latest reading reverses two straight months of declines. The index is designed to forecast economic activity over the next three to six months.
Retail sales rose 0.7% in March, up from a 0.5% gain in February. It was the best showing since a 1.1% rise in December, the Commerce Department reported April 16. Analysts had predicted a 0.8% increase.
Construction of new homes edged up 0.8% in March, the second straight monthly rise, the Commerce Department reported April 17. Applications for new building permits also rose by 0.8% in March, the first advance in three months, providing a glimmer of hope that the worst of the housing downturn might be over.
For the week ending April 19, interest rates on 30-year and 15-year fixed-rate mortgages declined, remaining well below year-ago levels, Freddie Mac said April 19.
This week look for updates on existing and new home sales on April 25.
Fueled by surging energy prices, the closely watched Consumer Price Index (CPI) shot up 0.6% in March, the biggest increase since a similar rise in April 2006. However, core inflation -- which excludes volatile energy and food prices -- rose 0.1% in March, the smallest increase in three months, and better than the 0.2% rise Wall Street had expected. Inflation for the first quarter of 2007 was 4.7%, far above the 2.5% increase for all of 2006.
The Conference Board said its Index of Leading Economic Indicators climbed a tepid 0.1% to 137.4 in March, as analysts had expected. The latest reading reverses two straight months of declines. The index is designed to forecast economic activity over the next three to six months.
Retail sales rose 0.7% in March, up from a 0.5% gain in February. It was the best showing since a 1.1% rise in December, the Commerce Department reported April 16. Analysts had predicted a 0.8% increase.
Construction of new homes edged up 0.8% in March, the second straight monthly rise, the Commerce Department reported April 17. Applications for new building permits also rose by 0.8% in March, the first advance in three months, providing a glimmer of hope that the worst of the housing downturn might be over.
For the week ending April 19, interest rates on 30-year and 15-year fixed-rate mortgages declined, remaining well below year-ago levels, Freddie Mac said April 19.
This week look for updates on existing and new home sales on April 25.
Sunday, January 28, 2007
Beware...
After being in the loan business for almost five years now, I've decided to start this blog because of something that really rattle my cages (as they say). Let me start out by saying that I didn't wake up one day and say, I want to be a loan officer. Nor did I say I want to be a loan officer because of the notoriety. No, I said I want to be a loan officer because I needed a job at the time. Since then I've really come to enjoy helping people not only obtain their dreams in homeownership but to also be a lender who will care about your needs.
Recently, I found out a relative had her home for sale. When other family members asked why she didn't come to me for assistance my only response was, "she probably didn't know I was in the business." So not only did she not know I was a loan officer but she didn't know that I work closely with Realtors. Realtors whom I trust and work hand in hand with in helping them build their business.
Here's the story, she was referred to one of those realtor/loan guys. He took over as the second agent to list her home for sale. The plan was to sell her home in time to move into her newly built home in another state. Problem was that her agent wasn't doing anything to sell her home so that she could have money to purchase the new home. As to no lose the purchase of her new home, the agent helped refinance the home she was selling. He refinanced the loan and she was able to move to her new home out of state. Meanwhile, the same agent was not doing much to sell her home. Not only did he live out of the area, but he just didn't know how to market the home. There were no ads, open house or door knocking to let people know about the home. That's when I eventually informed her that I was in the business and recommended that she use someone who knew the market and would actually lift a finger to market her home to get it sold.
I referred a business partner/friend of mine he had her home in escrow in a month. At that time, we found out the horrible news her loan that was to be paid off had a $13,000 pre-payment penalty even after the realtor/loan guy told her there was no pre-payment. His words to her were, "this loan doesn't have a pre-payment penalty." When the realtor/loan guy was confronted, of course he basically said, "Too bad, she knew what she was signing." Then he claimed that he did tell her.
You don't have to be in this business long to know what it takes to get this type of loan and how to make the pre-payment penalty go away. Her settlement statement showed that this guy made approximately $18,000 in commissions for her refinance. That's 4.5% of the loan amount. Real estate agents typically make 2.5 to 3% on the sale of the home. He made $18k just from the refinance and was due to make at least another 3% from the sale. Fortunately, he wasn't as good at selling home as he was at selling bad loans. His idea of selling her home was to put a sign in front of the house and hope that someone sees it and makes an offer. His other idea was to just keep lowering the price.
So basically, he took my relative to the cleaners with the loan refinance he got her into. He made $18k and she has to pay $13k to get out of the loan. Believe me, it just doesn't make sense and it sickens me to no end that this guy didn't care who he was hurting.
I'm now on a quest to be sure that everyone I know knows what I do for a living. I may not have years and years of experience in the mortgage industry but I have a lifetime of integrity experience. I will always say, even if you don't want to use my services for your home loan needs, at least ask my opinion so that this doesn't happen to you.
I plan on publishing tips and advice on home loans once a week to help you better understands. You may not be financing your home today but it's always a good idea to stay informed so that when you do, you have a little more armor.
Recently, I found out a relative had her home for sale. When other family members asked why she didn't come to me for assistance my only response was, "she probably didn't know I was in the business." So not only did she not know I was a loan officer but she didn't know that I work closely with Realtors. Realtors whom I trust and work hand in hand with in helping them build their business.
Here's the story, she was referred to one of those realtor/loan guys. He took over as the second agent to list her home for sale. The plan was to sell her home in time to move into her newly built home in another state. Problem was that her agent wasn't doing anything to sell her home so that she could have money to purchase the new home. As to no lose the purchase of her new home, the agent helped refinance the home she was selling. He refinanced the loan and she was able to move to her new home out of state. Meanwhile, the same agent was not doing much to sell her home. Not only did he live out of the area, but he just didn't know how to market the home. There were no ads, open house or door knocking to let people know about the home. That's when I eventually informed her that I was in the business and recommended that she use someone who knew the market and would actually lift a finger to market her home to get it sold.
I referred a business partner/friend of mine he had her home in escrow in a month. At that time, we found out the horrible news her loan that was to be paid off had a $13,000 pre-payment penalty even after the realtor/loan guy told her there was no pre-payment. His words to her were, "this loan doesn't have a pre-payment penalty." When the realtor/loan guy was confronted, of course he basically said, "Too bad, she knew what she was signing." Then he claimed that he did tell her.
You don't have to be in this business long to know what it takes to get this type of loan and how to make the pre-payment penalty go away. Her settlement statement showed that this guy made approximately $18,000 in commissions for her refinance. That's 4.5% of the loan amount. Real estate agents typically make 2.5 to 3% on the sale of the home. He made $18k just from the refinance and was due to make at least another 3% from the sale. Fortunately, he wasn't as good at selling home as he was at selling bad loans. His idea of selling her home was to put a sign in front of the house and hope that someone sees it and makes an offer. His other idea was to just keep lowering the price.
So basically, he took my relative to the cleaners with the loan refinance he got her into. He made $18k and she has to pay $13k to get out of the loan. Believe me, it just doesn't make sense and it sickens me to no end that this guy didn't care who he was hurting.
I'm now on a quest to be sure that everyone I know knows what I do for a living. I may not have years and years of experience in the mortgage industry but I have a lifetime of integrity experience. I will always say, even if you don't want to use my services for your home loan needs, at least ask my opinion so that this doesn't happen to you.
I plan on publishing tips and advice on home loans once a week to help you better understands. You may not be financing your home today but it's always a good idea to stay informed so that when you do, you have a little more armor.
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