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What to Do in a Changing Real Estate and Mortgage Market

As if the shortage of homes for sale wasn't severe enough, now rising interest rates are making the spring buying season extra challenging across the nation. The latest analysis and forecasting of market information by organizations such as National Association of Realtors (NAR), the St. Louis Federal Reserve, and Realtor.com highlights the shortage in inventory. Meanwhile, the California Association of Realtors (CAR) is reporting some good news in California. Read on to get the latest data, but don't take it all as a sign that you should abandon your plans to buy or…
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Mortgage Rate Recap and Outlook For Week Ending June 8, 2018

Without any geopolitical flare-ups over the last week, the impact of economic data has been very mild with no measurable effect on the markets or mortgage rates.  The biggest job news was the filing of Jobless claims coming in slightly below predictions, but the 4-week moving average ticked up to 225,500 - amazingly low. Global economic news has also had little effect on mortgage rates, with continued talk of a timeline to end qualitative easing (QE) in the ECB the only topic of import. While the markets are quiet now, all eyes are…
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Here’s What You Need to Know About a Condo Loan

On the surface, everything looks the same when you apply for a mortgage to purchase a condominium. You get pre-approved for the mortgage before you ever make an offer on a home so you know your purchase price range and maximum mortgage amount. Once you have an accepted offer, you take all the steps to comply with your purchase agreement like making your initial deposit into escrow, locking in your interest rate and paying for the appraisal. Although you know your new home comes with a monthly Homeowners Association dues payment, that's got…
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Mortgage Rate Recap and Outlook For Week Ending June 1, 2018

The market continued to improve in the early part of the week, led by the drama coming from Italy and a sharp drop in oil prices.  These issues are no longer impacting the markets, and mid-week Mortgage Backed Securities began to move back into the red, creating a slight pressure of increasing rates to come. Year over year PCE, the key inflation indicator, came in at 1.8% - below the Feds target of 2% - and other economic data was also relatively mild. The release of the Feds Beige Book yesterday (not a…
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Mortgage Rate Recap and Outlook For Week Ending May 25, 2018

Some old influences on the long-term bond market worked to slightly lower rates this week, as fear of geopolitical events sparked a move of institutional money into the safety of the long-term bonds. Specifically - the negative talk from North Korea's leader and officials and the cancelation of the summit next month with the US brought back the fear factor that had influenced the market a couple of months ago. On top of that, the Mortgage-Backed Securities markets benefited from a more dovish stance from the Federal Reserve based on concerns about trade…
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What Interest Rate Can You Really Get For Your Mortgage?

When you set out to buy a home, one of the first things you look at is where mortgage interest rates are these days. The second thing you want to know is can you get that rate? If the answer is no and you can only get a higher interest rate, you'll want to know what gives? Understanding how they determine the interest rate you qualify for, versus what you see in a general online search, is critical. It boils down to the risk you represent to the lender, based on specific factors…
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When Is a High Credit Score Not Good Enough for Loan Approval?

It's true that having a high credit score is a benefit when applying for a mortgage. A high score is your ticket to the lowest rates available at the time you apply for a mortgage, especially if you're applying for a jumbo mortgage (above the high balance conforming loan limits in your area). But don't let this fact fill you with a false sense of confidence, because your high score won't guarantee you'll be approved for a loan. I hear this common misconception regularly from potential borrowers -- and not just first-time home…
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Mortgage Rate Recap and Outlook For Week Ending May 18, 2018

Jobs data released this week was very positive, with jobless claims at their lowest levels since 1969. On top of that, the frequently volatile Philadelphia Fed Business Outlook Survey came in at 34.4 versus the predicted 21.0. As far as geopolitical events having an impact on trading we had some uncertainty over North Korea - South Korea talks even happening, let alone the historic meeting between a US Pres and North Korean leader. However, this did little to move the markets, as has the continuing back and forth over a US-China trade war.…
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Mortgage Rate Recap and Outlook For Week Ending May 11, 2018

Most of the economic data released this week has been in line with predictions and expectations resulting in a little to no impact on the long-term bond market, which has a direct effect on mortgage rates. Mortgage Backed Securities (MBS) reacted negatively yesterday to two factors: oil moving above $71/barrel, and a slight reduction in geopolitical concerns.  It remains to be seen what will unfold with Iran, but with Wednesday's announcement, the market has moved on and to a positive reaction in the scheduling of the North Korea talks. The bigger picture for…
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The Myths About Credit Scoring That Are Hurting Your Scores Badly

Trying to sort out the facts from the myths about credit scores and credit reports is not easy. Should you open new credit card accounts or close them? Pay off all your balances every month or make regular payments to improve your score? The whole subject makes you want to throw your hands up and run far away. In this blog post, you'll find the most common credit myths explained from the lender's point of view and get clear advice that will help you keep from damaging your credit score and your chance…
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