Your Pensacola Mortgage Authority
Archive for The Mortgage Market
December 9, 2008 at 4:38 pm · Filed under The Mortgage Market
If you are not in the real estate business or you are not watching the news regularly, you are missing out on a great opportunity to refinance your mortgage to the lowest rates available in years. As of today (December 9th, 2008) 30 year fixed rates are quoted as low as 4.875%. That is not a mis-print.
That puts mortgage rates within .25% of the all time 40 year lows reached in June of 2003. No one should refinance just because it is the popular thing to do. But, rates are so good that depending on what your current rate is, you might be able to refinance to a 15 year fixed rate and end up with the same or similar payment. That is powerful!
Knocking 10 or 15 years off of your term will save 10′s of thousands of dollars over the life of the loan, and that savings could be going to fund your retirement instead of lining the mortgage companies pockets.
At the very least, you owe it to yourself to get a consultation to see if it is justifiable to refinance. As a rule, you want to refi if you are saving at least 1% on your rate. But, there is more to it than that. If you can lower your term and keep the same payment, or if the monthly savings offsets the cost of the refinance in 15 months or less, it is worth looking at.
If you would like to check under the hood of your mortgage, call me at 850-221-8334 or and I would be happy to discuss your options.
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November 26, 2008 at 3:46 pm · Filed under The Mortgage Market
Rates have dropped significantly for long term mortgage loans over the last 2 days. This was fueled by the announcement by the Treasury Department that they will buy $600 billion in mortgage backed securities. This news means that buyers of mortgage bonds have more security in their investment. That drives up the price of bonds, and drives down the mortgage rates.
At the same time, the durable goods report came out today much worse than expected which feeds into the recessionary environment and causing investors to buy bonds to protect capital. Also, personal incomes rose in October by .3% vs. the expected .1% which is an indication that even though some workers are being laid off, the remaining are working overtime. This could be an indication that the recession will not be as long as expected, although one indicator for one month is hardly a barometer for any long term prediction.
For current rates or to apply online, go to www.SteveRussellOnline.com.
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November 14, 2008 at 11:24 am · Filed under Affordable Housing, Gulf Coast Housing, Pensacola, Perdido Key Condo Deals, Residential, The Mortgage Market
This weeks financial news wrap up.
It is interesting the times that we live in right now. The 500 point intraday swings in the stock market have become so commonplace that no one even gets excited about it anymore. Even yesterday, there was an intraday low of -331 only to rally in the afternoon to +552, a nearly 900 point intraday swing. What is even more curious is a buying rally after incredibly bad economic reports.
All of this leads to the conclusion that the markets are trading almost entirely on emotion. Fundamentals appear to have no affect, and that uncertainty bleeds over to the bond market as well.
Mortgage bonds started the week on a downward slide, then recovered Wednesday and Thursday morning with a nice rally. That rally began losing steam yesterday afternoon and continues to show weakness this morning. Daily volatility aside, mortgage rates long term are better than they have been in about a month and continue to trade in a near sideways channel.
Conventional wisdom would lead us to believe that as poor economic data comes out, investors would pull money out of stocks, invest in bonds, driving up the yield and driving down mortgage rates. But, as previously discuss, conventional wisdom does not appear to have a place in this market.
All in all, if you have a mortgage loan in process that you have not yet locked, my bias would be towards locking to protect against uncertainty.
For today’s mortgage rates, or to apply for a mortgage loan, go to SteveRussellOnline.com. Or call 888-257-8383 for a free consultation.
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