Mortgage Loans

Mortgage Loans

100% Financing is going to be tougher to qualify for

John Thomas September 21, 2007

Delaware First Time Home Buyers are going to have a tougher time qualifying for loans after October 20th, 2007. Fannie Mae is making changes to what it will accept for approval on all 100% financing options that are backed by Fannie Mae.

What are the changes?  Fannie Mae is no longer going to accept EA-II or EA-III approvals thru its desktop underwriting system. So if you are applying for a Delaware Home Loan thru any lender be it bank or broker, they all have to follow the same system, you will have to qualify at EA-1 or Approve-Eligible. Keep Reading...

Delaware Mortgage Loans – Market Update September 20, 2007

John Thomas September 20, 2007

Delaware Mortgage Rates are expected to climb today after falling yesterday.

Mortgage Bonds are trading lower again this morning. The euphoria has worn off from Tuesday’s rally following the interest rate cut. Traders have now assessed the long-term negative effects of the sinking Dollar and have begun selling into the market.

The US Dollar has been falling against foreign currencies. This is inflationary because it takes more Dollars to buy foreign imports, which is effectively the same thing as a price increase. Keep Reading...

Delaware Home Loan – Market Update

John Thomas September 19, 2007

The long-awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.

What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction…or even an opposite reaction in mortgage rates.

The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures. Keep Reading...

Delaware Mortgage Loans – Market Update – September 18, 2007

John Thomas September 18, 2007

Delaware Mortgage Rates and Stocks are poised to move on whatever news comes from the Federal Reserve today.

It’s all about the Fed this afternoon as both the stock and bond markets will be reacting to their words and actions. Will it be a half or quarter point cut on the fed funds rate and will the discount rate be reduced? What will they say about inflation? It all plays out this afternoon.

In the last bit of inflation news before the Fed meets to decide monetary policy, the Producer Price Index (PPI) fell off a cliff with a reading of -1.4% in August. Lower food and energy prices during the month led the unexpected decline in the Index. Keep Reading...

Delaware Mortgage Loans – Market Update – September 17, 2007

John Thomas September 17, 2007

Delaware Mortgage Rates are the same or slightly lower to start today because of the following news;

The only economic report released today was the New York Empire State Index for September, which came in less than expected and Mortgage Bonds had little reaction. All eyes and ears are now focused on tomorrow’s Federal Open Market Committee meeting.

The debate continues on how much the Fed will cut rates. Will it be 25 or 50bp? While the cut itself will be the major headline, bond prices will react to what the Fed says about inflation. If the Fed holds its view on inflation moderating, Bond prices may benefit. But if they state that inflation is worrisome, Mortgage Bonds will likely come under pressure, causing Delaware home loan rates to rise. Keep Reading...

Delaware Mortgage Loans – Market Update for September 14,2007

John Thomas September 14, 2007

Your update for Delaware Mortgage Loans as we finish the week, we see Delaware Mortgage rates repricing for the worse today.  Yesterday, I had anticipated a bounce off of technical support at the 200-Day Moving Average and a weaker than expected Retail Sales report this morning. This scenario played out exactly as predicted and it did cause Bond prices to improve upon the release of the Retail Sales report. However, bond prices have now given back the gains they made & have fallen below support at the 10-Day Moving Average. The 200-Day Moving Average may still act as a floor, but with this morning’s losses, I am recommending locking at this time because Delaware Mortgage Rates have re-priced for the worse and may reprice again at the end of the day. Keep Reading...

Delaware Mortgage Loans – Update for September 13, 2007

John Thomas September 13, 2007

Delaware Mortgage Rates are higher today because of the activity in the Mortgage Bond Market. Mortgage Bonds are under selling pressure so far today and are having a rough week overall after being pushed lower from resistance.

Sometimes things have to get a little worse before they can get better…and that’s what I expect to see from Mortgage Bonds over the next few days.

While Bond prices are currently lower on the day – I am advising a Floating position because Bonds are approaching a strong floor of support and it is unlikely that pricing will move below this level. The Mortgage Bonds should bounce up off the floor of support. This will drive Delaware Mortgage Loan Rates lower. Keep Reading...

Delaware Mortgage Loans – Update for September 12th

John Thomas September 12, 2007

Mortgage Bonds are unchanged after being pressured lower yesterday. Bond Traders took some of their recent profits following an uneventful speech by Federal Reserve Chairman Ben Bernanke, as he did not give any hints about a rate cut.Also weighing on bond prices yesterday was a strong showing in the stock market. In sessions when there has been an absence of market-moving economic news, as has happened recently, Stocks and Bonds have traded in opposite directions.

Bonds remain overbought and appear poised to follow the path of least resistance lower so Delaware home loan rates may be pressured higher. For today I recommend locking in your Delaware Mortgage Rate. Keep Reading...