March 2009

To view the video click here

Mortgage rates took a dip to historical lows this week for a temporary period. Many people advertised 4.5% for a 30 year fixed and it was highly advertised. The key question is, points and lock terms. Most quotes were based on 15 day or 30 day locks but the process is actually taking 45 – 60 days on the conservative side. Lenders are behind from the last refi rush.

Bernanke announced that more money will be injected to support the mortgage market and stabilize lower interest rates for the long run. That will allow millions of homeowners to secure low rates with the Home Affordable Refi Program. More details are scheduled for release this coming week.

Thank you for your continued support and our growing network!
The Mortgage Reel

{ 0 comments }

The week began with the change in the uptick ruling on shorting stocks which had a short lived rally in the stock market.  As the week progressed there were press announcements from Chase, Bank of America and closing out the week CitiBank.  Each re-stating their positions and viability as a sound financial institution.  CitiBank stating that they will not need the TARP funds to sustain.  Wall Street reacted positively with three consecutive days of positive gains.  These gains would normally come at the cost of Mortgage Backed Securities, on the contrary, they held strong at loosing ground in the A.M. trading session to close back in positive territories.  How this translates to the home owner, rates remained through the week between 4.875 – 5.00%.  What we really have our eyes focused on is the next three weeks and the outcome of the modification to the Mark to Market accounting rule.  This could be a huge boost to the U.S. Financial system including Banks!  With change comes uncertainty as to how mortgage rates will be impacted, but the positive side to look at is the liquidity crisis possibly coming to an end.  If banks are able to shift their balance sheets positively due to the change in the Mark to Market accounting rule they will once again to have liquidity and the ability to lend.  With lending brings the ability for business to once again revolve and restore cash flow.  As companies become stronger they will begin to slowly hire easing pressure on unemployment, in turn slowly restoring consumer confidence.  This our optimistic outlook but it much better to think about compared to where we were six months ago.  For more information please visit us at SeattleMortgageReel.com. 

{ 0 comments }

The unemployment rate catches the attention of the nation as the national average tops 8.1%.  Mortgage interest rates fell below 5.00% to 4.75% in the Seattle markets.  But the question will rates go lower remains?  With the Dow Jones industrial average down 55% since 2007 and the worst unemployment rate in 25 years how much more bad news can still come?  Many opinions say that more is still to come, which could be true, BUT we have to take a look at rates, there is clearly a floor of resistance and also a ceiling of resistance.  We encourage all of our readers to view another posting to explain why rates continue have this range of trading.

Also announced today is the new loan opportunity which will allow home owners to refinance up to 105% loan to value.  There are many details still to be released as this is fresh off of the press.  This comes in relief to many who have adjustable rate mortgages who are not able to refinance currently due to declining home values.  We will be posting more information next week to bring home owners up to speed and gear them with the information necessary to take action.

Find out even more valued information here.

{ 0 comments }

In the recent Seattle PI article the chief economist for the National Association of Realtors  discusses how the house prices put mortgages in reach, which in turn makes the payments in line with  current wages.

Click here to read article

{ 0 comments }