Newsletter
Questions?
Contact one of our
Loan Officers
 Providing Texans
Residential and Commercial Lending statewide. |
|
|
Home Underwater Mortgages
Decline:
An "underwater mortgage" is when
a homeowner owes more on their
current mortgage(s) than what
the home is currently worth and
obviously is a big concern for
the housing market.
According to Zillow.com, the
rate of underwater mortgages
fell last quarter. The
percentage of single-family
homes with negative equity
fell to 21.5 percent in the
second quarter. Many see this as
an indicator that default and
foreclosure rates could slow
from current levels and is
reflective of some stability in
home values and stronger demand
for housing with all-time low
mortgage rates still driving up
demand.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) gained
+50 basis points last week which
caused 30 year fixed rates
to decrease for both government
and conventional loans. The
gains in mortgage backed
securities (the only thing 30
year conventional mortgage rates
are based on) were the result of
a weaker than expected
Unemployment report. The
Unemployment Rate remained
unchanged at 9.5% but market
participants were very
disappointed with the growth
levels of the Non-Farm Payrolls
in the private sector.
What to Watch Out For This Week:
The following are the major
economic reports that will hit
the market this week. They each
have the ability to affect the
pricing of Mortgage Backed
Securities and therefore,
interest rates for Government
and Conventional mortgages. I
will be watching these reports
closely for you and let you know
if there are any big surprises:
|
Date |
ET |
Release |
For |
|
10-Aug |
8:30 |
Productivity-Prel |
Q2 |
|
10-Aug |
8:30 |
Unit Labor Costs |
Q2 |
|
10-Aug |
10:00 |
Wholesale Inventories |
Jun |
|
10-Aug |
14:15 |
FOMC Rate Decision |
10-Aug |
|
11-Aug |
8:30 |
Trade Balance |
Jun |
|
11-Aug |
10:30 |
Crude Inventories |
7-Aug |
|
11-Aug |
14:00 |
Treasury Budget |
Jul |
|
12-Aug |
8:30 |
Initial Claims |
7-Aug |
|
12-Aug |
8:30 |
Continuing Claims |
31-Jul |
|
12-Aug |
8:30 |
Export Prices ex-ag. |
Jul |
|
12-Aug |
8:30 |
Import Prices ex-oil |
Jul |
|
13-Aug |
8:30 |
CPI |
Jul |
|
13-Aug |
8:30 |
Core CPI |
Jul |
|
13-Aug |
8:30 |
Retail Sales |
Jul |
|
13-Aug |
8:30 |
Retail Sales ex-auto |
Jul |
|
13-Aug |
9:55 |
Mich Sentiment |
Aug |
|
13-Aug |
10:00 |
Business Inventories |
Jun |
It
is virtually impossible for you to
keep track of what is going on with
the economy and other events that
can impact the housing and mortgage
markets. Just leave it to me, I
monitor the live trading of Mortgage
Backed Securities which are the only
thing government and conventional
mortgage rates are based upon.
|
|
