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San Jose Weekly Mortgage Market Commentary 9/13/2009

The week that was This week didn't have much in the way of economic data; weekly claims declined 26K. U. of Michigan consumer sentiment index jumped to a stronger read than expected but somewhat ignored as recently it has become more volatile. In my view the most significant data this week was the July consumer credit data on Tuesday; credit was expected to have shrunk by $4.1B, it crashed $21.6B and June consumer credit was revised lower, from -$10.3B to -$15.5B. Consumer credit has been declining now for five months and we expect it to continue; markets however, took a look and ignored the potential impact for economic growth. Mortgage markets as reported by the MBA had a very good week last week; the overall applications index jumped 17.0% as mortgage rates worked lower. Freddie Mac weekly Primary Mortgage Market Survey® for 30-year fixed-rate mortgage (FRM) averaged 5.07 percent with an average 0.7 point for the week ending September 10, 2009, down from last week when it averaged 5.08 percent. Last year at this time, the 30-year FRM averaged 5.93 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.51 percent this week, with an average 0.5 point, down from last week when it averaged 4.59 percent. A year ago, the 5-year ARM averaged 5.87 percent. Note that these rates are for loan amounts under $417,000. Higher loan amounts typically have higher interest rates. (more…)

San Jose Weekly Mortgage Market Commentary 9/7/2009

The week that was This week markets were bolstered by generally better economic data; the manufacturing sector based on the August ISM report on Tuesday showed much more strength that was expected, July factory orders were up, and the minutes of the 8/12 FOMC meeting continued to see a small light at the end of what would be defined as a very long tunnel. Seven of the top eight most affordable months occurred during this year, according to the National Association of Realtors® (NAR) Housing Affordability Index, which dates back to 1971. As a result, pending sales of existing homes rose for the sixth straight month in July, a trend not seen since the NAR began reporting data in 2001. Moreover, July sales were the strongest since June 2007. However, in August unemployment rate jumped 0.3% to 9.7%. Also, for the month of August the government insured share of purchase mortgage application was 40.4% - up from 38.3% in Jul & 31.7% in Aug 08. Share was the highest since Feb 91, further documenting growing clout of FHA loans. Mortgage rates for the week ended marginally better than last week. (more…)

Weekly Mortgage Market Commentary 8/30/2009

The week that was A little better in the rate markets; the 10 yr note yield fell 12 BPs and mortgages down about 8 BPs. Choppy trade once again characterized the action last week. Treasury had little trouble selling $109B of notes while new home sales increased 9.6 % in July. July durable goods orders increased 4.9%, the biggest monthly increase since July 2007, consumer confidence increased, and weekly jobless claims declined. Nice week but the stock market barley held on. Freddie Mac weekly results of its Primary Mortgage Market Survey® reported 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.7 point for the week ending August 27, 2009, up from last week when it averaged 5.12 percent. Last year at this time, the 30-year FRM averaged 6.40 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.67 percent this week, with an average 0.6 point, down from last week when it averaged 4.57 percent. A year ago, the 5-year ARM averaged 6.03 percent. (more…)

3% CHDAP DownPayment Assistance for San Jose First Time HomeBuyers

This post will help you find all the details on 3% down payment assistance program (CHDAP) for San Jose and rest of the Bay Area First Time Home Buyers. I have earlier blogged about CalHFA 5% downpayment program & $8000 First Time Home Buyer Credit in my earlier posts. The California Homebuyers Downpayment Assistance Program (CHDAP) is a deferred payment, simple interest rate junior loan not to exceed 3% of the sales price or appraised value, whichever is less. The junior loan may be combined with a CalHFA first mortgage loan that is…continue reading →

China to buy US Mortgages and what it means for you

CNN Money reported that China's $200 billion sovereign wealth fund, which suffered big paper losses on stakes in Morgan Stanley and Blackstone, is set to invest up to $2 billion in U.S. mortgages as it eyes a property market recovery. Under the Public-Private Investment Plan (PPIP) launched earlier this year, the U.S. government plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy as much as $40 billion in toxic securities from banks. Compared with TALF, the new and smaller PPIP program focuses on…continue reading →

San Jose Weekly Mortgage Market Commentary 8/23/2009

The week that was Mortgage loan delinquency, borrowers 60 or more days past due, increased for the tenth straight quarter, hitting an all-time national average high of 5.81% for the second quarter of 2009, according to the latest data from TransUnion.com. This statistic is up 11.3% from the first quarter's 5.22% average. Sales of existing homes in July jumped at the fastest rate in 10 years. Sales of single-family homes increased 7.2% in July from a month earlier to a seasonally adjusted annual rate of 5.24 million units, the National Association of Realtors…continue reading →

July 09 Home Sales Trend in Bay Area

Sales hit 4 year high, Median price up Data Quick reported that Bay Area home sales rose last month to the highest level for a July in four years as deals above $500,000 continued to accelerate. The median sale price climbed above the prior month for the fourth consecutive month. San Jose Mercury News reported The median price of houses sold in Santa Clara County in July shot to $540,000 in July, the first time home prices have topped the half-million-dollar mark since this past fall, in a sign that buyers are purchasing…continue reading →

San Jose Weekly Mortgage Market Commentary 8/16/2009

The week that was Continued market volatility; the mortgage market regained some losses from the week before as interest rate markets swung wildly from one economic report to the next. Freddie Mac Primary Mortgage Market Survey® for 30-year fixed-rate mortgage (FRM) averaged 5.29 percent with an average 0.7 point for the week ending August 13, 2009, up from last week when it averaged 5.22 percent. Last year at this time, the 30-year FRM averaged 6.52 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.75 percent this week, with an average 0.6 point, up…continue reading →

CalHFA 5% Down Payment for San Jose First Time Home Buyers

California Housing Finance Agency (CalHFA) recently launched it's new program called Cal 30 - Conventional for First Time Home Buyers in San Jose, the San Francisco Bay Area and the rest of the state. This conventional first mortgage features a fixed interest rate, fully amortized loan over a 30-year term. It has a maximum Loan-to-Value (LTV) of 95%. Below are some of the other highlights of the program: Maximum Loan Amount -The loan amount is limited to the maximum Fannie Mae conforming loan limits. Currently, this is $417,000. Fannie Mae high balance loan…continue reading →

San Jose Weekly Mortgage Market Commentary 08/09/2009

The week that was Job losses were a lot less than expected; still 247K jobs lost with no real insight as the when it will finally flatten. The unemployment rate, expected to be up to. 9.7% fell to 9.4%, down 0.1% from June. Weekly jobless claims on Thursday fell by 38K to 550K filings for unemployment. Both series were double blows to the gut for the rate markets, and manna for the stock market. The week that will be The stock market is seen as a gorge that has to have some digestion,…continue reading →

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