Mortgage Rates

MBS prices are now up on the session (FNMA 3.50 +9/32), after an early dip lower. US data had bonds selling off (rates up) in early trade, but remaining doubts about the EU’s ability to control the current debt crisis drove investors back into dollar-denominated bonds (rates down). Initial Jobless Claims (381k vs. 395k est.) and Wholesale Inventories (1.6% vs. 0.2% est.) came in better than expected, driving the early drop in bond prices. Then, comments from European Central Bank President Mario Graghi disappointed investors who expected stronger intervention (more quantitative easing, bond buying) by the mammoth Fed-like entity. The EU drama continues to be the focal point of trade for most investors, as we await the conclusion of yet another summit in the Euro zone. So far, the outcome of these brainstorms have been essentially meaningless, but the markets seem optimistic once again, that the union will come up with something tomorrow. It seems like we are being set up for yet another disappointment, but that would be good for interest rates, so it’s not all bad for the mortgage industry.



Tomorrow, Friday, 12/9, as indicated above, will bring the final day of an EU Finance Ministry Summit, whose primary goal is to decide how the union is to proceed in dealing with the debt crisis. As we have discussed, there is definitely a difference of opinion amongst the members. The problem is that many of these differences seem rooted deep in the ideologies of each country. On one hand you have a fiscally conservative Germany, and on the other, a socialist-type like France. There are 17 of these different countries, and each is different, other than sharing a currency. Time will tell whether or not an understanding can be reached, but expectations are now quite low for anything to be resolved tomorrow. It is hard to tell for sure, but it is likely that a complete failure tomorrow may send US rates lower, as money flows back into US safety plays, while an ground-breaking agreement may send rates higher. If the summit passes with a so-so outcome, like so many others before it, we may see little marker reaction after all of this week’s chatter. US data tomorrow will likely be ignored, but we do have the Consumer Sentiment number (est. 65.1) and the Trade Balance (est. -44B).

Happy Thanksgiving

Happy Thanksgiving to all my friends. May you heart be filled with joy and your holiday be blessed with family and friends

PMI files BK

Mortgage Insurer PMI Files Bankruptcy
The PMI Group, Inc. says it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. According to PMI, the move is a direct result of the seizure of its subsidiaries PMI Mortgage Insurance Co. and PMI Insurance Co. by the Arizona Department of Insurance on October 20, 2011. PMI sought to overturn the regulator’s seizure of its mortgage insurance operations, but that motion was denied on Friday.

November 2011 : FHA Loan Limits Raised To $729,750; Conventional To Remain At $625,500. Call me if you need to refinance your home! Rates are very competitive today! 702-370-2016 Greg

Updated Bond Information

MBS prices are down a bit on the session (FNMA 3.50 -4.5/32) on decent data, as we still have no clear picture of resolution in the EU financial crisis. Initial Jobless Claims came in a bit better than expected (390k vs. 400k est.), the Trade Balance was more narrow than anticipate (-43.1B vs. -46B est.), and Import Prices were tame (-0.6%). Stocks are in positive territory today (Dow +66.15, S&P +4.90), after an awful day yesterday, which saw the down plummet almost 400 points, which was the worst single-session loss in two months. Ongoing issues in the EU really pushed the markets around yesterday, but news is light this morning. Expect any news out of Europe to spark movement. Absent a bombshell from the EU, we may see today’s auction garner some attention. Today, we have a $16B 30yr auction (11am MT). As we know, the Fed is trying to lower long-term interest rates though their Operation Twist, so this auction may tell us a bit about how well that plan is going. So far, the operation has failed to do much to lower mortgage rates.

Tomorrow, Friday, 11/11 has only Consumer Sentiment (est. 61.3), so expect the headlines and the equity markets to drive mortgage prices.
If your looking for a new loan, feel free to contact me at 702-370-2016 Greg Corpodian

Updated Bond Information

MBS prices are down a bit on the session (FNMA 3.50 -4.5/32) on decent data, as we still have no clear picture of resolution in the EU financial crisis. Initial Jobless Claims came in a bit better than expected (390k vs. 400k est.), the Trade Balance was more narrow than anticipate (-43.1B vs. -46B est.), and Import Prices were tame (-0.6%). Stocks are in positive territory today (Dow +66.15, S&P +4.90), after an awful day yesterday, which saw the down plummet almost 400 points, which was the worst single-session loss in two months. Ongoing issues in the EU really pushed the markets around yesterday, but news is light this morning. Expect any news out of Europe to spark movement. Absent a bombshell from the EU, we may see today’s auction garner some attention. Today, we have a $16B 30yr auction (11am MT). As we know, the Fed is trying to lower long-term interest rates though their Operation Twist, so this auction may tell us a bit about how well that plan is going. So far, the operation has failed to do much to lower mortgage rates.

Tomorrow, Friday, 11/11 has only Consumer Sentiment (est. 61.3), so expect the headlines and the equity markets to drive mortgage prices.
If your looking for a new loan, feel free to contact me at 702-370-2016 Greg Corpodian

Mortgage Rates

MBS prices are up slightly (FNMA 3.50 +2/32) on a day without data. Not that data much matters lately. The drama slowly unfolding in the EU is really what seems to be driving prices right now. There is a note auction today, so we may see some reaction there. The US Treasury will sell $32B in 3yr notes today at 11am MT. Expect a strong auction to potentially spur a bond rally (rates down), while a poor showing may send rates higher. Otherwise, watch the headlines. There are some Fed Presidents and EU Finance Ministers speaking today. Add this to the other news coming from Europe, and we will likely see some more volatility. In fact, expect volatility to be rampant for the rest of the year potentially.

Tomorrow, Wednesday, 11/9 has Wholesale Inventories (est. 0.5%) and the second note auction of the week, a 10yr auction, set to go off at 11am MT. Wholesale Inventories is typically not a market moving report, so we can likely ignore it, but the auction may be noteworthy. Watch today’s auction to set expectations for the new two (Wed and Thurs).

Mortgage Rates

MBS prices are up slightly (FNMA 3.50 +2/32) on a day without data. Not that data much matters lately. The drama slowly unfolding in the EU is really what seems to be driving prices right now. There is a note auction today, so we may see some reaction there. The US Treasury will sell $32B in 3yr notes today at 11am MT. Expect a strong auction to potentially spur a bond rally (rates down), while a poor showing may send rates higher. Otherwise, watch the headlines. There are some Fed Presidents and EU Finance Ministers speaking today. Add this to the other news coming from Europe, and we will likely see some more volatility. In fact, expect volatility to be rampant for the rest of the year potentially.

Tomorrow, Wednesday, 11/9 has Wholesale Inventories (est. 0.5%) and the second note auction of the week, a 10yr auction, set to go off at 11am MT. Wholesale Inventories is typically not a market moving report, so we can likely ignore it, but the auction may be noteworthy. Watch today’s auction to set expectations for the new two (Wed and Thurs).

Mortgage Rates Near All Time Lows!

Mortgage rates plunged yesterday as the financial markets reacted to a couple of pieces of bad news. The first item was that the Greek Prime Minister is going to ask the country to vote on a potential bailout package. The package is extremely unpopular in Greece, and is unlikely to be approved via referendum. The second piece of bad news was the implosion of financial firm MF Global. The firm filed for bankruptcy yesterday, the ninth largest bankruptcy of all time. It current trends continue, we could see mortgage rates test their all-time lows this week.

Are you a renter looking to take advantage of today’s low rate environment? Is the lack of money for a down payment the only thing between you and homeownership? You may want to look into an FHA mortgage. Many first time homeowners take advantage of FHA loans because they only require a minimum down payment of 3.5% of the purchase price of the house. In comparison, many traditional lenders require down payments of 20% or more, and it can take years for the average person to save that much money. Call Greg Corpodian at 702-370-2016 if you want to refinance or purchase a new home!

Radio Show at 4PM Today 970 KNUU AM in Las Vegas!

Join me today as we drill down to the direct causes of the economic recession and what you can do to climb out of and start enjoying life again! We are live from 4 to 5 PM on KNUU 970 AM so call us at 702-735-6397 and tell us what you are thinking!

Listen to Greg Corpodian from 4 PM to 5 PM on KNUU Today!

Listen to the "Financial Strength Show" today from 4PM to 5PM on KNUU 970AM in Las Vegas, with Greg Corpdian as your host

Listen to Greg Corpodian from 4 PM to 5 PM on KNUU Today!

Listen to the "Financial Strength Show" today from 4PM to 5PM on KNUU 970AM in Las Vegas, with Greg Corpdian as your host

Today's Radio Show!

Join me today at 4PM on KNUU 970 AM when we talk to long time Vegas resident and realtor Cheryl Davis, owner of Cheryl Davis and Associates Real Estate Firm.

Radio Show at 4PM Today 970 KNUU AM in Las Vegas!

Today's guest is Steve Hawks. We are going to teach people how to make money in the real estate market today!

The "Financial Strength" Show

Todays guest are Scott Knight and Elizabeth DeFlyer from Shumway Van & Hansen who are going to assist us in navagating through BK's, Foreclosure, and other hot topics. As always we will have the ladies from First American Title with us to spice things up. Stay tuned at 4 PM 970 KNUU AM. It is going to be a hot topic!

Radio Show at 4PM Today 970 KNUU AM in Las Vegas!

Join me today with my guest Mark Coats a Regional Manager from National Credit Federation who specializes in repairing credit.

Radio Show at 4PM Today 970 KNUU AM in Las Vegas!

Tune in and listen to the Financial Strenght Show at 4PM on 970 KNUU AM. We will have a top lender from the Las Vegas area with us talking about changes in FHA, Conventional and Investor loans!

Changing Times

With loan limits set to fade in markets across the United States, Las Vegas is positioned once again to lead the pack with an FHA limit ready to recede from $400,000 to $275,000 in October with many additional cities preparing for similar reductions in FHA limits. Even with interest rates as low as they are the effect of lowering these loan amounts will expose homes above a price of $275,000 to a 20% down payment stroke which few homebuyers will be able to afford, and even fewer would want to make an investment of 20% into an asset that could see an additional erosion of 10% over the next year or two. The concern we all have is surrounding the continuance of QE3 being kicked around, and if not QE3 then who will continue to buy our bonds and without a market for our bonds will interest rates start to inflate to uncomfortable levels. The upward trending of mortgages rates would further erode the pricing model associated with real estate and add to the financial turmoil so many cities are struggling with.
This combined with the debt-limit ceiling being hit forcing legislation to decide how to increase the ceiling without decreasing job stimulation will be a delicate task, and the discussion of raising taxes could have an effect on the CORE CPI. Amongst all of these variables, business owners are standing on the sideline refraining from hiring additional manpower since the instability of tax structures are lacking immediate direction. The other issue that will be touching everyone in the U. S will be the price of oil!
With estimates being talked about for the summer of 2012 that could exceed barrel pricing of $150.00 and would push the price at the pump to over $4.50 per gallon, people are holding on to their money. While this price will not make anyone lose sleep, it will continue to chip away at the discretionary income that drives so many purchases made by Americans. The price at the pumps not paid by us, but is paid by our vendors to get groceries, products and other consumables to the stores we shop at daily.
Al l of this should prove to be interesting as political partisanship weighs more and more in the decision process of our elected officials undermining the process and the needs of the people.

Is American being sold?

In Chicago, it's the sale of parking meters to the sovereign wealth fund of Abu Dhabi. In Indiana, it's the sale of the northern toll road to a Spanish and Australian joint venture. In Wisconsin it's public health and food programs, in California it's libraries. It's water treatment plants, schools, toll roads, airports, and power plants. It's Amtrak. There are revolving doors of corrupt politicians, big banks, and rating agencies. There are conflicts of interest. It's bipartisan. It's happening daily, is it the fault of government, or has the housing bubble put everything up for sale at a discount?

Inflation?

While the Federal Reserve continues to keep interest rates low in order to avoid deflation and spur economic activity, inflation is already here. You don't need the Fed to raise rates to officially signal that inflation is here. If you make visits to the gas station or grocery store, you have felt the rise in prices. If inflation is simply defined as "too much money", then the effect is often a rise in prices.