Danny Salas

Archive for the 'Interest Rates' Category

Chico, CA Interest Rates Market Report – Economic Influences – March 22, 2010

The Big Room At Sierra Nevada Brewing Company

YOU DON’T WANT TO MISS THIS EVENT!!!

Scott St. John will be speaking at The Big Room At Sierra NevadaThe , Friday, March 26, 2010.  Scott is a 3rd-Term Governing Board Member of Freddie Mac.  You’ll have an opportunity to inquire into expected economic future of the United States, Real Estate and its REO future, and what’s happening behind the scenes that is making closing loans to more timely and difficult, these days.   REGISTER AT THE CHICO OR PARADISE BOARD OFFICES.  $10 includes appetizers.  $15.00 AT THE DOOR!

Rates Are Still Smokin'

Happy Spring!

Spring is in the air, and that what mortgage-backed securities have managed to do, this morning; spring off the 50-Day Moving Average and remain, so far, just above the 25-Day and 40-Day Moving Averages.  This has managed to help interest rates move slightly down.

$1.25 Trillion

So, over the course of the next two weeks, there are only $14 Billion left in the arsenal of funds that the Fed had set aside to purchase Mortgage-Backed Securities.  Also, this week, alone, the Fed is auctioning $44 Billion of 2-Year Notes, $42 Billion of 5-Year Notes, and $32 Billion of 7-Year Notes, to help pay for the ever expanding deficit.

A Difference of Opinion

Some say that rates will spike severely, after the Fed’s $1.25 Trillion is used up.  Others say it will not have too much of an effect, as there is an adequate amount of cash, on the sidelines, to sort of, pick up the pieces.  I believe that the average rate will be effected by approximately .25% in rate.  Without a major buyer, in the market, I feel like there has to be a negative result.

Short For Time Periods...May As Well Lock

Locking Advice

Again, I advise that if you’re looking at a long escrow, take advantage of the fact that you don’t have to lock.  If you’re in a shorter one…than now is about as good as it gets!

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Chico, CA Interest Rates Market Report – Economic Influences – March 19, 2010

YOU DON’T WANT TO MISS THIS EVENT!!!

Scott St. John will be speaking at The Big Room At Sierra Nevada The , Friday, March 26, 2010.  Scott is a 3rd-Term Governing Board Member of Freddie Mac.  You’ll have an opportunity to inquire into expected economic future of the United States, Real Estate and its REO future, and what’s happening behind the scenes that is making closing loans to more timely and difficult, these days.   REGISTER AT THE CHICO OR PARADISE BOARD OFFICES.  $10 includes appetizers.  $15.00 AT THE DOOR!

JUST ANNOUNCED!!!!

Joining us on Friday, March 26th is Private Mortgage Insurance Company’s (PMI) own Nancy Early.

Nancy has been with PMI for 8 years and in the Mortgage Industry for 25 years. She supports  Northern and Central California, Northwest Nevada and Hawaii and lives in Roseville, California.  Come learn about some of the structured transactions that MI companies are using to lower buyer’s monthly obligations.  We’re excited to add her to the venue.

We Were Down 19, To Be Par Already Today

Rates Taking Direction From Stocks

There are no market mover announcements effecting interest rates, today, so technical factors will influence Mortgage-Backed Securities’ direction.  And that they have done!  Typical to common markets, Stocks shot off this morning, causing rates to increase, relatively substantially, until, yet another credit rating company announced their concern over the AAA rating of large economies, including the United States.  Fitch Ratings mentioned that the United States has some difficult decisions to make regarding spending.  Thanks for that enlightening information, Fitch.  With that announcement, rates came plummeting back down, and Stocks did, too.

Short For Time Periods...May As Well Lock

Locking Advice

Read yesterday’s advice.  It still stands!

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Chico, CA Interest Rates Market Report – Economic Influences – March 18, 2010

The Big Room At Sierra Nevada Brewing Company

YOU DON’T WANT TO MISS THIS EVENT!!!

Scott St. John will be speaking at The Big Room At Sierra NevadaThe , Friday, March 26, 2010.  Scott is a 3rd-Term Governing Board Member of Freddie Mac.  You’ll have an opportunity to inquire into expected economic future of the United States, Real Estate and its REO future, and what’s happening behind the scenes that is making closing loans to more timely and difficult, these days.   REGISTER AT THE CHICO OR PARADISE BOARD OFFICES.  $10 includes appetizers.  $15.00 AT THE DOOR!

CPI Reads Low Inflation

The Consumer Price Index was reported at a 0.0% level.  It’s a testimony to the Fed’s Decision to keep rates low for “an extended period” of time.

Labor Market Numbers

So, Emergency Unemployment Compensation (EUC) numbers are going through the roof!  An additional 360,000 people are requesting these claims and those numbers aren’t even a part of the Initial Jobless Claims Numbers.  Until we have jobs numbers changing, the real estate market will not benefit or substantially grow.  That’s the secret!  More than low rates!

Short For Time Periods...May As Well Lock

Locking Advice

Same story as the last few days.  If you float, prices can’t get much better, so you may as well lock.  The benefit of this scenario is that if you have a 60 day escrow, as opposed to a 30 day escrow, the cost to hold your interest rate is greater for that greater period of time.  So, if we continue to be in a “float, ’til the market changes,” mode, than you have an opportunity to NOT lock into a rate, until the market changes…saving the cost for a longer lock period.

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Chico, CA Interest Rates Market Report – Economic Influences – March 17, 2010

Happy St. Patrick’s Day

YOU DON’T WANT TO MISS THIS EVENT!!!

Scott St. John will be speaking at The Big Room At Sierra NevadaThe , Friday, March 26, 2010.  Scott is a 3rd-Term Governing Board Member of Freddie Mac.  You’ll have an opportunity to inquire into expected economic future of the United States, Real Estate and its REO future, and what’s happening behind the scenes that is making closing loans to more timely and difficult, these days.   REGISTER AT THE CHICO OR PARADISE BOARD OFFICES.  $10 includes appetizers.  $15.00 AT THE DOOR!

Lowest Rates In Three Months

The Mortgage Bankers Association reported that mortage applications fell by 1.9%, last week, even though we’ve experienced the lowest interest rates in three months.  That’s right!  Rates have not been this low since last December.

Producer Price Index

The low inflationary reading was shrugged by investors, as anticipation that over the course of the next few months, that the price of gasoline will have a negative effect on the Producer Price Index.

Floating Would Be Fine...

Locking Advice

I’d be taking advantage of these incredibly low interest rates.  We have quite a strong layer of support, however, why take chances, on such beautiful interest rates.  See our interest rate tracker on the front page of www.accessloans.net

Related Must Reads

What’s The Big Room, at Sierra Nevada?
Knowledge is Power…Ask Freddie Mac Your Own Personal Question

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