Treasuries are down this morning on more Fed Policy speculation that they leave be raising rates sooner than expected. In terms of economic news, the major release today will be the existing home sales figure. It is expected that home sales rose by almost 5% in September!
Have a great weekend and stay tuned in favor of next week’s updates on mortgage and economic news!
Tags: Capital Markets, Capital Markets Update, Expected, Markets UpdateIf you’ve been following the mortgage news lately, you might get the imprinting that it’s all but impossible to get anything but a standard these days. But while it’s trustworthy that many of the so-called “exotic” mortgages that were popular a few years ago have pretty much disappeared, consumers still have other options besides a “plain vanilla” type mortgage, including ARMs ( mortgages) and interest-only loans, to name a couple.
In fact, there’s still a considerable amount of activity in ARMs in particular, which currently make up about 10-15 percent of the current mortgage market, according to Bob Walters, chief economist for Quicken Loans.
Home mortgage loan rates have possibly hit a bottom in the last few weeks and current sit at 4.86%. Mortgage interest rates are still below 5% but the 4.82% level has held as support for the last few days and it looks like the 10 year treasury rate yield has found support as well. If the 10 year yield finds support and the Fed sticks to its plan to stop buying US Treasuries by the end of October we can almost guarantee that mortgage rates will move up.
Please vote on the First Time Home Buyers Tax Credit Extension here at Subprime Blogger. First Time Home Buyers Tax Credit Extension Poll.
With this being the case if you have been considering that first time home purchase or refinancing your existing home now is as good of a time as ever.
This week’s economic calendar is not as full as last week’s, but will be kicked off with the release of the ISM non-manufacturing index this morning. The ISM is expected to increase by 1.6 month over month — adding to the gain already seen for the month of September.
Any interpretation very 50 is a signal of expansion in the sector, while any reading under 50 is an indication of contraction.
Treasuries are little change this morning in front of the $78 billion in treasury auctions scheduled for this week. The elementary auction this afternoon will be of $7 billion 10-year TIPS, which are inflation protected notes.
According to mortgages news today, mortgage lender HSBC has allocated a fund of extra pledge loans for first-time buyers, which could help thousands get onto the property ladder for the first time. The Bank of England recently revealed a fall in mortgage approvals during the August, the first in some 10 months, since the bottom of the market.
The 500 million pounds of extra lending budget will be placed atop the 1 billion pounds already lent by HSBC to those borrowers who can only raise a 10% mortgage hoard . The bank has been the most active lender during the first half of this year, and the next stage in their funding may help to consolidate this position. Full Article
Treasuries are moving lower this morning about the Case Shiller Home Price index showed an improvement for the sixth month in a broil in July. The index, which measures home prices in 20 major cities, is still down 13.3% on a year-over-year basis, but values declined less than previous months.
At 10 AM we have September Consumer Confidence, which is expected to increase from the previous month on improving economic conditions.
Many people opt to refinance home mortgage loans. This endeavor can prove to help gain entry to quick cash, pay off debts and lower interest rates in many cases.
However, there are some pitfalls that consumers may experience if they are not well prepared.
Deciding on whether or not to refinance home mortgage accounts should not be done on the spur of the moment. Refinancing is a process that requires a lot of forethought and preparation in order to avoid making mistakes.
An oversight can be quite expensive in the long run.
Consumers simply can not afford to make mistakes when it comes to their decision to refinance home mortgage loans. It helps to develop a strong rapport with your financial institution.
VA home loan mortgage rates for September 26th, 2009 have changed very little as circulating conventional mortgage rates stabilize. Current VA home loan rates in favor of the 30 year fixed are around 3.95%. As many of you know, VA loan rates are generally one full percentage point lower than conventional mortgage rates. Last week was a very volatile week for mortgage rates but with all the movement they ended up very close to where they started.
Conventional 30 year fixed mortgage rates were as low as 4.91% and went in the same manner with high as 5.05% but ended the week right around 4.99%. This is still very low when looking at mortgage rates in a historical context. For anyone who has been thinking well-nigh refinancing or buying their in the beginning home now is because good of a time as ever as mortgage rates are likely to go up after Halloween.
The Federal Reserve Bank has made it very apparent that the are going to stop buying US Treasuries by the end of October. This is likely going to put treasury yields in an up trend which will also push mortgage interest rates higher. If you continue to wait for mortgage rates to drop you might find yourself looking at mortgage rates that are heading to 6% rather than staying below 5%.
Make sure to check out Subprime Blogger on a daily basis for your VA home loan rates. We wil
October 21st, 2009 
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