The DeJesus Group – Florida's Most Referred Residential Mortgage Advisory Team

Week of: Monday, November 21, 2011

Present Market Conditions
Modest inflation data coupled with relatively strong economic growth reports served as offsets, with mortgage rates experiencing very little movement. According to Frank Northaft, vice president and chief economist at Freddie Mac, “Mortgage rates were little changed this week just as the economy is showing potential for further gains in the near term.” 30-year and 15-year fixed-rate mortgages averaged 4.00% and 3.31% respectively, both priced at .7 points. 5-year Treasury-indexed hybrid ARMS averaged 2.97% with .6 points, actually lower than the 2.98% on 1-Year ARMS.

Expectations
Monday Existing Home Sales will be released followed by revisions to third quarter Gross Domestic Product (GDP) on Tuesday. The majority of economic reporting comes Wednesday with Durable Orders, Personal Income, Consumer Sentiment and Core PCE Inflation. The November 3rd FOMC meeting minutes will also be reported. Treasury auctions are slated for Monday through Wednesday. MBS markets are closed on Thanksgiving Thursday, but will be open Friday.

Guidance
Mortgage rates continue to hover at historically low levels. Call your mortgage professional today to purchase your new home or refinance your existing loan. Have a Happy Thanksgiving holiday!

Week of: Monday, October 31, 2011

Present Market Conditions
The most recent economic data combined with Fed hints of additional MBS purchases was positive news for mortgage rates. However, the announcement by European leaders of a comprehensive aid package to stem European debt troubles offset early MBS gains. According to Frank Northaft, vice president and chief economist for Freddie Mac, “Fixed rate mortgages followed other long-term interest rates and showed little change…” 30-year and 15-year fixed-rate mortgages averaged 4.10% and 3.38% with .8 and .7 points, respectively. ARMs remained at or near all-time lows, with the 1-year Treasury ARM averaging 2.90% with .6 points.

Expectations
The week’s economic reporting will be headlined by Wednesday’s Fed meeting, as investors await the update on economic growth and any signs of monetary easing. As important will be Friday’s Employment data with the market focused on wage inflation, job creation and the Unemployment Rate. Chicago PMI will be reported Monday, followed by ISM Manufacturing and Construction Spending Tuesday. ISM Services, Factory Orders and Productivity are released Thursday.

Guidance
The combination of flat home prices and historically low mortgage rates provide a golden opportunity to purchase that new home! Or, is it time to refinance your existing loan? Call your local mortgage professional today for personalized advice and service

Week of: Monday, September 26, 2011

Present Market Conditions
The Fed issued a two-pronged statement, confirming “significant downside risk” to the US economy and announcing a strategy that extends the average maturity of its portfolio while reinvesting principal payments into agency mortgage-backed securities. While the mortgage markets have reacted favorably to this announcement, Frank Northhaft, Freddie Mac’s vice president and chief economist, stated, “A sluggish economy and investor concerns over the European debt markets left mortgage rates largely unchanged.” 30-Year fixed-rates average 4.09% with .7 points for the week and 15-Year fixed-rates averaged 3.29 percent with .6 points.

Expectations
The week starts off with Monday’s New Home Sales followed by Durable Orders on Wednesday. Thursday Pending Home Sales are reported along with final revisions to second quarter GDP. Friday will be a busy day with Core PCE inflation, Personal Income, Chicago PMI Manufacturing and Consumer Sentiment rounding out the week’s economic releases. Additionally, Treasury auctions will be held Tuesday through Wednesday.

Guidance
Mortgage rates remain at historic lows! Your local mortgage professional is ready to help you with the purchase of a new home or refinance of your existing mortgage.

Week of: Monday, September 19, 2011

Present Market Conditions
The Fed, in conjunction with the European Central Bank and 5 other major central banks will provide a lending facility to shore up liquidity for European banks. In spite of significant increases in the August core CPI and the Producer Price Index, mortgage rates saw slight declines. 30-year fixed-rate mortgages averaged 4.09% with an average of .7 points. 15-year fixed-rates averaged 3.30 percent with .6 points. 1-year ARM rates averaged 2.81% with .6 points. Frank Northaft, Freddie Mac’s vice president and chief economist noted, “By refinancing into today’s 30-year fixed rate mortgage, homeowners could shave almost $1,715 a year in interest payments on a $200,000 loan.”

Expectations
Housing Starts are reported Tuesday. Existing Home Sales and Leading Indicators are released Wednesday and Thursday, respectively. The week’s most significant news comes Wednesday with the Fed report. A division exists within the Federal Open Market Committee so investors are watching for signs of any monetary easing.

Guidance
Both fixed-rates and ARMS remain at historically low levels. Call your mortgage professional today to purchase a new home or refinance your existing mortgage loan!

Week of: Monday, September 12, 2011

Present Market Conditions
“Market concerns over Eurozone sovereign debt default and a weak U.S. employment report for August placed downward pressure on Treasury bond yields and allowed fixed mortgage rates to hit new lows this week,” according to Frank Northaft, vice president and chief economist for Freddie Mac. 30-year fixed-rate mortgages averaged 4.12% with .7 points, 15-year fixed rate mortgages were 3.33% with an average of .6 points, and 1-year ARMs averaged a record low of 2.84% with .6 points.

Expectations
The monthly inflation reports will headline all economic data released this week. On Wednesday, Retail Sales, which accounts for 70% of the nation’s economic activity, will be released along with the Producer Price Index (PPI). The Consumer Price Index (CPI) and Industrial Production are reported on Thursday, followed by Friday’s Consumer Sentiment, Import Prices and Philly Fed data. Treasury auctions are slated for Monday, Tuesday and Wednesday.

Guidance
Mortgage rates have hit all-time lows! NOW is the time to contact your mortgage professional regarding that new home loan or refinance!

Week of: Monday, August 22, 2011

Present Market Conditions
Frank Northaft, vice president and chief economist at Freddie Mac, stated “The Federal Reserve’s policy statement and ongoing market concerns over the European debt market carried momentum through the week allowing all mortgage products in our survey to reach all-time record lows.” 30-year fixed-rate mortgages averaged 4.15% with an average of .7 points, down significantly from last week’s average of 4.32%. 15-year fixed-rate mortgages averaged 3.36% with an average of .6 points. Adjustable rate mortgages also hit historically low levels.

Expectations
Weekly economic reporting leads off with Tuesday’s New Home Sales data. Durable Orders, a significant indicator of economic growth, will be released Wednesday and Treasury auctions will be held Tuesday through Thursday. On Friday, revisions to second quarter Gross Domestic Product (GDP) are reported, along with Consumer Sentiment.

Guidance
Mortgage rates are at their lowest levels in over 50 years! There truly has never been a better interest rate environment in which to purchase a new home or refinance your existing mortgage. Contact your mortgage professional and act now!

Week of: Monday, August 08, 2011
Present Market Conditions
This past week brought important economic news on a daily basis, producing volatile reactions in global financial markets. Tuesday’s statement by the Federal Open Market Committee was the biggest news, as the Fed stated they anticipate economic conditions will warrant maintaining the fed funds rate at “exceptionally low” levels through the middle of 2013. This was good news for bond markets and mortgage rates. 30-year fixed-rates averaged 4.32% with .7 points and 15-year fixed rates were 3.5% and .7 points. Frank Northaft, vice president and chief economist at Freddie Mac noted, “Lower mortgage rates will help to maintain the high degree of home-buyer affordability in the market.”

Expectations
Wednesday’s Producer Price Index and Thursday’s Consumer Price Index, key inflationary measures, will be the most important economic data released this week. Tuesday’s Industrial Production, a significant indicator of the economy’s growth, will come out as will Housing Starts. Friday, the Philly Fed report, Import Prices and Leading Indicators will conclude the week.

Guidance
Rates remain at historically low levels. Don’t miss this opportunity to purchase your new home or refinance! Contact your mortgage professional today.

Week of: Monday, August 01, 2011
Present Market Conditions
According to Frank Northaft, Freddie Mac’s vice president and chief economist, “macroeconomic data released this week were a mixed bag.” Some positive signs, the S&P/Case-Shiller® 20-City Composite Index and June’s index of leading indicators were offset by Friday’s 2nd quarter GDP (well below forecast) and ongoing concerns about the U.S. debt ceiling. The net result was very little change to mortgage rates. 30-year fixed-rate mortgages averaged 4.55% with .8% points and 15-year fixed-rate mortgage averaged 3.66% with an average of .7% points.

Expectations
A bi-partisan agreement on the debt ceiling will be the week’s focal point along with Friday’s Employment data. ISM Manufacturing and Construction Spending lead off on Monday, followed by Personal Income and Core PCE Inflation Tuesday. ADP Employment, Factory Orders and ISM Services will be reported Wednesday.

Guidance
Call your Mortgage Professional today for very low mortgage rates on your new home purchase or refinance!

Week of: Monday, July 18, 2011
Present Market Conditions
A weak jobs report combined with uncertainty regarding Europe’s debt problems and lack of progress on US debt limit talks all contributed to lower mortgage rates this past week. The market experienced a flight to safety as evidenced by improved mortgage-backed securities (MBS) prices, increased demand for Treasury securities and higher gold prices. 30-year fixed rate mortgages averaged 4.51% with an average of .7% points and 15-year fixed rates dropped to 3.65% with an average of .6% points.

Expectations
June’s Housing Starts report on Tuesday leads a slow week for economic reporting. Wednesday Existing Home Sales are released, followed by Leading Indicators and the Fed Philly report on Thursday. The market will continue to be focused on US debt ceiling negotiations as well as the ongoing economic situation in Europe.

Guidance
With rates moving down once again, now is the time to contact your mortgage professional to purchase that new home or refinance your existing mortgage. Consult with us today your Tampa Bay Mortgage Planning Experts.