Are Mortgage Points Tax Deductible?

Dona DeZube answers that question for us in this article post – http://members.houselogic.com/articles/mortgage-points-deduction/preview/

Pending Home Sales Inch Up From Year Ago

http://realtormag.realtor.org/daily-news/2014/12/01/pending-home-sales-inch-up-from-year-ago#.VHy5DLYCt21.twitter

FHFA Allows Ex-Owners to Buy Back Homes

http://realtormag.realtor.org/daily-news/2014/11/26/fhfa-allows-ex-owners-buy-back-homes#.VHYg1fFr3Os.twitter

What are credit inquiries on credit reports and how do they affect my credit score?

http://www.myfico.com/CreditEducation/CreditChecks/Inquiries.aspx

Good info for those shopping for a mortgage.

not always early, but ALWAYS on time….MORTGAGE TIME!

MORTGAGE TIME Mortgage Market News for the week of March 7, 2014

Compliments of: Patrick Gardner Mortgage Loan Officer NMLS ID: 378888 415-423-1424 Email me Visit my website   JOBS DATA AND UKRAINE It was a volatile week in mortgage markets. Early in the week, rapidly changing conditions in Ukraine caused a great deal of movement in mortgage rates, but there was little net impact. Later in the week, stronger than expected labor market data was negative for mortgage rates, and rates ended the week higher. Against a consensus forecast of 140K, the economy added 175K jobs in February, and the figures for the prior two months were revised a little higher. This took place, according to the Bureau of Labor Statistics, despite the largest weather related disruption since 1996. The Unemployment Rate unexpectedly rose from 6.6% to 6.7%, but this was due to an increase in the number of people that entered the labor force. The solid jobs report exceeded expectations nearly across the board. Since stronger economic growth raises future inflationary pressures, this was unfavorable news for mortgage rates. After Russia moved troops into Ukraine, the threat of an escalating conflict caused a “flight to safety” in financial markets on Monday. This involved a shift by investors to relatively safer assets, resulting in a large decline in stocks and significant improvement in bonds, including mortgage-backed securities (MBS). A complete reversal took place on Tuesday, however, after the Russian President said that Russia would not use military force in Ukraine. ALSO NOTABLE • ISM Services declined to the lowest level since February 2010 • The Treasury will auction $64 billion in securities next week • The European Central Bank (ECB) made no change in rates • Chinese manufacturing data fell to the lowest level in 8 months WEEK AHEAD The most significant economic report next week will be the Retail Sales data on Thursday. Retail Sales account for about 70% of economic activity. Before that, the JOLTS report, measuring job openings and labor turnover, will come out on Tuesday. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Friday. Import Prices and Consumer Sentiment will round out the schedule. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. Changes in the situation in Ukraine also could have an impact on mortgage rates.

it’s a little late…yet still on time! MORTGAGE TIME

MORTGAGE TIME Mortgage Market News for the week of Feb. 21, 2014

Compliments of:   Patrick Gardner Mortgage Loan Officer NMLS ID: 378888 415-423-1424 Email me Visit my website   RATES HIGHER AFTER FED MINUTES The positive momentum in mortgage rates shifted direction after the release of the Fed Minutes on Wednesday. Investors viewed the Minutes as somewhat positive for stocks and negative for bonds. As a result, mortgage rates ended the week a little higher. The Minutes from the January 29 Fed Meeting revealed that Fed officials remained very divided as to the appropriate path for future policy. Overall, though, the perception of investors was that the position of the hawks remained solid, while the views of the doves may have weakened a little. As a reminder, “hawks” tend to favor less stimulus to help keep inflation low, while “doves” prefer more stimulus to boost economic growth. The Minutes stated that “a few participants” considered the possibility that it “might be appropriate” to raise the fed funds rate sooner than many expect. The Minutes also reinforced Fed Chair Yellen’s recent comments that there is a high hurdle for the Fed to pause in reducing its bond purchase program. The Fed’s bond purchases have helped keep mortgage rates low, and the Minutes reduced the likelihood that the program could be stretched out for a longer period of time. The economic data released this week continued to be affected by the unusually severe weather this winter. In particular, the housing reports all fell short of expectations. January Existing Home Sales declined 5% from December to the lowest level since July 2012. They were 15% below the peak levels seen last summer. On the plus side, total housing inventory available for sale increased. The results for January Housing Starts fell even farther below expectations with a decline of 16% from December. Building Permits declined as well. Finally, the February NAHB/ Wells Fargo Housing Market index showed that builder confidence dropped sharply. Both the National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) attributed the weakness in recent data to a combination of bad weather, limited supply, and tight credit conditions. ALSO NOTABLE • Core CPI inflation was just 1.6% higher than one year ago • The Philly Fed index dropped to the lowest level since February 2013 • The Treasury will auction $96 billion in securities next week • Chinese PMI manufacturing data was weaker than expected   WEEK AHEAD Next week, New Home Sales will be released on Wednesday. Durable Orders, an important indicator of economic activity, will come out on Thursday. Pending Home Sales, Chicago PMI Manufacturing, and revisions to fourth quarter GDP will be released on Friday. Consumer Confidence and Consumer Sentiment will round out the schedule. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

it’s that time again….MORTGAGE TIME! (Happy V-day!)

MORTGAGE TIME Mortgage Market News for the week of Feb. 14, 2014

Compliments of:   Patrick Gardner Mortgage Loan Officer NMLS ID: 378888 415-423-1424 Email me Visit my website   YELLEN TESTIFIES The primary influence on mortgage rates this week was new Fed Chair Janet Yellen’s semi-annual testimony before Congress. Although there were no significant surprises, maintaining the status quo for Fed policy was taken as good news for stocks and bad news for bonds. Mortgage rates rose during her testimony and ended the week a little higher. Janet Yellen took over as Fed Chair at the beginning of the month, and Tuesday’s testimony before Congress was viewed as the first big opportunity to see her in action. Yellen made it clear that she would continue the policies seen under her predecessor, Ben Bernanke, with little change. She said that recent weak data and turmoil in emerging markets did not alter the Fed’s long-term economic outlook. Her upbeat assessment of the economy lifted stocks, but was negative for mortgage rates. Also hurting rates, she stated that the Fed will continue scaling back its bond purchase program at a steady pace, unless the performance of the economy worsens significantly. The Fed’s bond purchases have increased the demand for mortgage-backed securities (MBS), which has helped keep mortgage rates low. The economic data released this week continued the recent trend of falling short of expectations. The reaction was limited, however, because investors are uncertain to what degree the results reflect unusually bad winter weather rather than an underlying weakening of the economy. Both Retail Sales and Industrial Production revealed small declines in January. This follows shortfalls in the Employment and ISM Manufacturing reports last week. Estimates for first quarter GDP have been revised lower by most economists, and the consensus is now for 2.0% growth. The economy is expected to return to a 3.0% growth rate in the second quarter. ALSO NOTABLE • JOLTS job openings held steady around four million • The NFIB small business optimism index rose • Oil prices increased to the highest level since October • Demand was close to average for this week’s Treasury auctions   WEEK AHEAD The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for finished goods which are sold to consumers. In addition, the Minutes from the January 29 Fed Meeting will be released on Wednesday. These detailed Minutes provide additional insight into the debate between Fed officials. Housing Starts will also come out on Wednesday. Existing Home Sales will be released on Friday. Philly Fed and Empire State will round out the schedule. Mortgage markets will be closed on Monday in observance of Presidents Day.

What time is it? It’s Mortgage Time.

MORTGAGE TIME Mortgage Market News for the week of Feb. 7, 2014

Compliments of:   Patrick Gardner Mortgage Loan Officer NMLS ID: 378888 415-423-1424 Email me Visit my website   JOBS AND MANUFACTURING FALL SHORT This week’s key economic data showed that the performance of the economy in January was weaker than expected. The shortfalls caused stocks to decline and mortgage rates to improve, but the impact was surprisingly small. Both the Employment report and the ISM Manufacturing data saw big misses. Against a consensus forecast of 185K, the economy added just 113K jobs in January. Also disappointing, many investors had hoped to see a large upward revision to the weak December reading, but it was little changed. The ISM national manufacturing index declined sharply to 51.3, far below the consensus of 56.0. For perspective, the increase in jobs reflects improvement in the labor market, and readings above 50.0 indicate an expansion in the manufacturing sector. The issue is that the pace of economic growth has slowed. The relatively minor impact of this week’s data must be considered in light of the performance of the stock and mortgage markets so far this year. Entering the week, stocks had experienced significant losses, as the Dow was down roughly 5% in January. Similarly, mortgage rates have seen significant improvement since the start of the year. To some degree, investors were already positioned for weak data this week. In addition, questions about the effect of unusually severe weather caused some investors to question how accurately recent data reflects the underlying strength of the economy. ALSO NOTABLE • The Unemployment Rate fell to the lowest level since October 2008 • The 2013 Trade Deficit was the smallest since 2009 • The Treasury will auction $70 billion in securities next week • The European Central Bank (ECB) made no change in rates   WEEK AHEAD Next week, Janet Yellen, the new Fed chair, will testify before Congress on Tuesday and Thursday, and her comments could influence mortgage rates. The most significant economic report will be the Retail Sales data on Thursday. Retail Sales account for about 70% of economic activity. Before that, the JOLTS report, measuring job openings and labor turnover, will come out on Tuesday. Industrial Production, Import Prices, and Consumer Sentiment will be released on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Your Weekly Mortgage Time is Here…Late, but here Nonetheless

MORTGAGE TIME Mortgage Market News for the week of Jan. 17, 2014

Compliments of: Patrick Gardner Mortgage Loan Officer NMLS ID: 378888 415-423-1424 Email me Visit my website INFLATION REMAINS TAME Mortgage rates began the week with downward momentum following last Friday’s big miss on the Employment report. That, combined with low inflation, more than offset this week’s slightly stronger than expected economic growth data, and mortgage rates ended the week a little lower. With the Fed’s recent decision to reduce its bond purchases, investors were left evaluating what they believed to be the appropriate level of mortgage rates for the current economic environment. In short, moderate economic growth and low inflation represent relatively favorable conditions for mortgage rates. This week, the December Retail Sales report revealed gains consistent with moderate growth. Since Retail Sales account for about 70% of economic activity, investors pay close attention to this data. Two of the more significant monthly inflation reports also were released this week, the Consumer Price Index (CPI) and the Producer Price Index (PPI), and both confirmed that inflation remains tame. Core CPI was just 1.7% higher than one year ago, well below the Fed’s target level of 2.0%, while Core PPI was even lower at 1.4% on an annual basis. JOLTS, another report released this week, is quickly gaining prominence with investors because it is considered to be a favorite of incoming Fed Chair Janet Yellen. The JOLTS survey measures Job Openings and Labor Turnover levels, providing another level of insight into labor market conditions. Since the Unemployment Rate has been heavily influenced recently by people leaving the labor force rather than by job gains, investors and Fed officials are eager for additional details to judge the strength of the labor market. The November JOLTS data showed that Job Openings unexpectedly rose to the highest level since March 2008. The percentage of people quitting their jobs was nearly unchanged. ALSO NOTABLE • The Empire State index rose to the highest level since May 2012 • Capacity Utilization increased to the highest level since May 2008 • The Fed’s Beige Book reported moderate economic growth • Unemployment in the euro zone remained at a record high 12.1% WEEK AHEAD The Economic Calendar will be nearly empty next week. Existing Home Sales, Leading Indicators, and Jobless Claims will be released on Thursday. Mortgage markets will be closed on Monday in Observance of MLK Day.

MORTGAGE TIME Mortgage Market News for the week of Dec. 27, 2013

Compliments of:   Patrick Gardner Mortgage Loan Officer NMLS ID: 378888 415-423-1424 Email me Visit my website     QUIET HOLIDAY WEEK The mortgage market was quiet during Christmas week. The few economic reports released this week, including Durable Orders, Jobless Claims, and New Home Sales, were mostly stronger than expected. As a result, mortgage rates ended the week a little higher. While the headline results for this week’s New Home Sales report revealed a decline from the prior month, this obscured the substantial improvement. New Home Sales dipped slightly in November, but this was from a level in October which was revised substantially higher. In fact, the revised October reading was the highest level since July 2008. November New Home Sales were 17% higher than one year ago. This was another in a string of recent housing market reports which provide reasons to be optimistic heading into 2014. On December 18, the Fed announced that it will begin to scale back its bond purchases. The added demand from the Fed for mortgage-backed securities (MBS) has been a major factor helping to keep mortgage rates low, so a reduction in bond purchases is clearly negative for mortgage rates. Considering this, it is interesting to see that mortgage rates have moved only a little higher since the Fed announcement. In other words, the taper was almost completely priced in to mortgage rates ahead of the actual announcement. By contrast, the reaction in the stock market to the Fed statement was much larger. Investors were pleased that the Fed intends to hold the fed funds rate low until much greater labor market improvement is seen, and the Dow stock index has climbed roughly 600 points to a record high. ALSO NOTABLE • The IMF raised its outlook for the US economy next year • Core PCE inflation was just 1.1% higher than one year ago • 10-yr Treasury yields crossed above the 3.0% level • The Dow stock index rose to a record high   WEEK AHEAD The important monthly Employment report will not be released until January 10, leaving a light week for economic data to begin the new year. Pending Home Sales will be released on Monday. Chicago PMI Manufacturing and Consumer Confidence will come out on Tuesday. ISM Manufacturing and Construction Spending will be released on Thursday. Mortgage markets will close early on Tuesday and will be closed on Wednesday in Observance of the New Years holiday.