Aug 5, 2011 | Mortgage Rates
Mortgage rates in Massachusetts plunged to new 2011 lows this week.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the national, average 30-year fixed rate mortgage fell to 4.39% this week — the lowest 30-year fixed reading since November 18, 2010.
The 0.16 drop from last week is the largest one-week rate drop in more than 2 years, and, although the 30-year fixed remains above its all-time lows from November 2010, two other benchmark products made new records this week.
Both the 15-year fixed rate mortgage and the 5-year ARM are reporting lower than at any time in recorded history.
Freddie Mac puts those average rates at 3.54% and 3.18%, respectively.
Mortgage rates are dropping for several reasons, including : (more…)
Aug 4, 2011 | Personal Finance
Home sales have heated up, according to the National Association of REALTORS®.
More homes are going under contract this summer than went during the winter or spring seasons. Many of these homes are scheduled for late-August/early-September closings.
If your home is among them, plan ahead.
Like for the rest of the U.S. workforce, Labor Day is a popular vacation time in the real estate, title and mortgage industries. Closings come together more slowly when the parties involved are on holiday. In addition, when issues arise, they are often slower to resolve because not everyone is “present”.
Therefore, if you’re under contract to buy or sell your home, or have a refinance in-process with a lender, get proactive with your home and your loan. Finalize your approval as quickly as possible.
Here are some tips to help your loan clear faster: (more…)
Aug 3, 2011 | The Economy
At 8:30 AM ET Friday, the Bureau of Labor Statistics will release the July 2011 Non-Farm Payrolls report. Mark it in your calendar. If you’ve been watching mortgage rates fall to new all-time lows this week and fear a mortgage rate reversal, Friday could be the day.
The monthly Non-Farm Payrolls data can swing a big stick in mortgage markets.
More commonly called “the jobs report“, Non-Farm Payrolls details the U.S. workforce, providing sector-by-sector analysis of workforce, as well as the national Unemployment Rate.
The jobs report affects mortgage rates because of how important jobs are to the U.S. economy.
When there are more working Americans:
- There’s more consumer spending, a boost to businesses
- There’s more tax collection, a boost to governments
- There’s more personal savings, a boost to households
In July, analysts anticipate 85,000 new jobs created. This would be a 4-fold increase from June’s 18,000 figure.
The Unemployment Rate is expected to remain unchanged at 9.2%.
For rate shoppers and home buyers in Massachusetts , these Wall Street expectations can be as important as the actual data itself. Right now, traders placing bets, expecting 85,000 new jobs in July. If the final tally is more than 85,000, traders will load up on equities at the expense of bonds. This is because job growth is good for the economy.
When bonds sell off, rates rise.
Conversely, if jobs growth is less than 85,000, mortgage rates should drop.
Mortgage rates are near all-time lows this morning. By Friday, they could rise. The safe move is to lock your rate today. Rates may fall when the jobs report is released, but there’s much more room for rates to rise.
Aug 2, 2011 | News, Realtors, Short Sales
Short-sale disputes were designated as the most significant legal issue facing real estate professionals, according to therecent National Association of Realtors’. In addition, according to a NAR survey, REO agency issues, property condition and RESPA issues are among the the top issues facing real estate professionals today.
Read more here from DSNews.com.
Aug 2, 2011 | The Economy
The United States is projected to reach its legal $14.294 trillion debt limit today. The limit was set by Congress February 12, 2010. The U.S. Treasury may not issue new debt beyond the debt ceiling.
Since April 2011, Congress has debated ways to remain below the nation’s $14.292 trillion borrowing limit. The debate commenced with the passage of the 2011 U.S. Federal Budget which featured a $1.645 trillion deficit.
This multi-trillion dollar deficit ensured that the debt ceiling would be touched at some point during the current fiscal year.
That date was May 16. It took an intervention from the Treasury Secretary to temporarily extend the limits; an “extraordinary measure” meant to keep the U.S. government from defaulting on its debt.
With additional room to borrow, then, the U.S. Treasury’s new debt ceiling date was moved to August 2. Congress has been debating the federal budget since mid-May with the dual-goal of (1) Remaining below the federal debt limit, and (2) Creating a budgetary surplus for the future.
An agreement is expected today. (more…)
