Mortgage Update for Monday June 29th 2009

Monday's bond market has opened in positive territory as investors prepare for this week's economic news. The stock markets have opened the holiday-shortened week in positive ground with the Dow up 83 points and the Nasdaq up 10 points. The bond market is currently up 13/32, which should improve this morning's mortgage rates slightly. We haven't gotten any improvements from our investors but if it stays like this it wont be long.

This week brings us the release of only four economic reports for the markets to digest, but three of them are considered to be important and one of those three is arguably the most influential report we see each month. In addition, these reports are being released over just three trading days.

There is no relevant economic data scheduled for release today. June's Consumer Confidence Index (CCI) is the first report of the week and will be posted late tomorrow morning. This index is important to the financial markets because it measures consumer willingness to spend, which is important because consumer spending makes up two-thirds of the U.S. economy. If it shows a sizable increase in confidence from last month, we can expect to see the bond market falter and mortgage rates rise slightly. Current forecasts are calling for a reading of 55.1, up slightly from last month's 54.9 reading.

Overall, tomorrow and Wednesday's data (Consumer Confidence Index and ISM index) should bring some volatility in trading and mortgage rates, but Thursday's Employment report is definitely the most important of the week. Its impact can single handily lead to an improvement or increase in mortgage rates for the week.

The financial markets will be closed Friday in observance of the Independence Day holiday, but there will be no early close for the bond market Thursday as has been the case previous years. However, it will still probably be a light afternoon in trading as traders head home for the long weekend. Oil prices will also be higher because of the holiday so that will affect the oil traders. My family is not planning on traveling for the 4th so increased fuel prices will not affect us as much as other people.

I hope AHK can get my personal production loan completed this week so the investor can buy it and the loan can be on its merry way. It closed on the 5th of June but is still stuck between the Title Co and Gold Financial getting the HUD-1 corrected. I have my fingers crossed that it will happen today, I would hate to have to tell a borrower that the house is not theirs after they have moved everything in because it closed almost a month ago :(

Well that will be all for now if you guys have any tips, hints or comments you want to post let me know and they will be put up. Thanks for reading and hope you enjoyed it.

Mortgage News for Thursday June 25th 2009

I just found out at AHK we have 3 investors who will do the IRS Down payment Assistance Program using the $8000 tax credit available to new home buyers. I will have more information on this exciting news tomorrow.
Thursday's bond market has opened up slightly despite no highly important economic data on the calendar today and a positive opening in stocks. The stock markets are showing minor gains with the Dow up 34 points and the Nasdaq up 15 points. The bond market is currently up 4/32 from yesterday's close, which should improve this morning's mortgage rates by approximately .250 of a discount point over yesterday's morning rates.

This morning's release of the final reading to the1st Quarter GDP didn't reveal any significant surprises. It showed that the economy contracted at a 5.5% annual rate during the first three months of the year. This was a small upward revision from the previous estimate of a decline of 5.7%, meaning that the economy did not shrink as much as previously thought. However, since this data is old now (second quarter initial reading comes next month), the size of the revision was not enough to influence bond trading or mortgage rates.

The Labor Department gave us last week's unemployment figures, reporting that 627,000 new claims for benefits were filed. This was an increase from the previous week's revised total of 612,000 and much higher than forecasts of 600,000. But, as with today's GDP reading, this data is not considered to be of high importance to the markets or mortgage rates.

Also worth noting is today's 7-year Treasury Note sale. Yesterday's 5-year Note sale went pretty well, but the FOMC statement took center stage during afternoon trading. If today's sale is also met with a good demand from investors, we may see bond prices rise later today and mortgage rates move lower. Results will be posted at 1:00 PM ET.

Tomorrow morning has two reports on its calendar. May's Personal Income and Outlays data will be posted early morning. This report gives us an indication of consumer ability to spend and current spending activity. Analysts are expecting to see an increase of 0.2% in income and a 0.4% rise in the spending portion of the report. Smaller than expected increases should be good news for the bond market and mortgage rates.

The second report of the day and the last relevant data of the week will come from the University of Michigan who will update their Index of Consumer Sentiment for May. An upward revision from the preliminary reading of 69.0 would be considered a negative for bonds. The earlier data is the more important of tomorrow's two releases.

New blog about the mortgage business and AHK!

Hey everyone I have finally got America Home Key Inc a blog where we can find out the latest happenings at corporate and the mortgage industry as a whole. I will also be including links to training available from AHK Corporate and through Marie Murry at Apex Training Group. We will try to get as many of our underwriters as we can to do guest blogs and tell us whats coming up as far changes they see and changes that have occurred and affect our daily lives as loan originators.

Our industry is steadily changing at a pace that hasn't been seen in many years and definitely not by the current generation of loan originators. This blog will be available to everyone at AHK to comment and respond to our posts. We will be posting new legislation that has been passed recently and what is in the pipeline for future legislation sessions that will change out industry. Most people I have talked to said the mandatory registration as a mortgage originator will be a good thing since everyone will be on the same level and we will not have Broker title versus the Loan Officer title. The only problem is everyone will have to get their 20-30 hours of Continuing Education in before the deadline.

Marie Murry with Apex Training Group has been doing her CE classes since the beginning of 2009 with America Home Key employees to get everyone ready for the change we saw coming. She has put on classes about Ethics and Morals to the most basic of How to Complete a 1003 Loan Application. These classes are open to everyone even if you do not work for AHK since everyone needs their required hours of CE.

Chas Winckel and Don Harris have really stepped up to try and fill the void that was left by Melinda Truitt who did so much for our company. Chas and Don have stressed that everyone needs to make sure they use Oasys and check your email on the system everyday to stay informed about changes. This blog will also be a place to keep up with changes but more on the public level.
Bryon Cunningham is probably one of the best DE underwriters in the FHA mortgage world and a make sense underwriter that wants to approve your loans. I know AHK is working to improve our rates and be able to bring us competitive pricing to help you close more loans.

I hope this blog is what everyone was talking about at our last meeting with Chas on Wednesday at our USDA Training and CE we had with Marie. Please comment and let me know what you guys want to see on the blog and where you want it to go from here.