Pasadena CA Real Estate

Featured Neighborhoods

Archive for the 'Mortgage Information' Category

No Comments »

Pasadena Mortgage Rates Report: September 16, 2008

Pasadena Mortgage Rates Report: September 16, 2008

By Brian Brady

Had you taken my advice this weekend, and immediately locked your Pasadena mortgage rate, yesterday you would have lost out.  The par rate for a 30-year fixed rate conforming loan was 5.625% yesterday- today that par rate is 5.5%.  My advice would have cost you .125% in rate.  Alas, my mortgage rates report is not about “catching the bottom” as much as it is about “avoiding the top”; it’s about mitigating market risk.  From my explanation on the Zillow Mortgage Blog:

My approach is with an aversion to risk so I’m biased towards locking rather than floating a rate.  What I do try to find is overreactions in the MBS market so that you won’t lock your mortgage rate at the top nor float your mortgage rate when higher rates are imminent.  My customers RARELY catch the “bottom” but they miss out on many “tops” when locking their rate.

I look for irrational exuberance or irrational fear.  If I think markets are being too optimistic, like this week, I advise customers to lock.  The whipsaw reaction to irrational exuberance is irrational fear; a steep rise in mortgage rates.  THAT is what I want to avoid.

Long-term, I feel that the government bailouts of financial institutions will result in a hefty price tag to the taxpayer, which is inflationary in nature.  I look for markets to start reacting to this sooner rather than later.

 

If you have a definitive closing date for the purchase of your Pasadena home, lock-in your Pasadena mortgage rate today.  If you’re shopping for a new home locking your mortgage rate at contract acceptance is advisable.  If you are one of the fortunate few with equity, good income, and good credit, and want to refinance your home loan, today looks better than next year.

I’d love to discuss your options with you.

 

PS:  In my last report, a Florida mortgage broker suggested that my risk mitigation strategy is inferior to a “lock and pray “approach:

Bottomline, none of us knows what is going to happen, so the smartest course is to lock with a lender that will renegotiate your rate when we experience one of these rapid drops that occur with little advance notice.

I’ll agree that prescience is a virtue best reserved for the Divine.  My faith in the predictability of mortgage lenders’ actions has been shaken over the last year.  I’ve seen lenders flip programs to make an extra buck and back off approvals.  While this gentleman’s strategy has proved superior to mine, this month, I still rely on my charts and research to execute low rates for my customers.

 

Originally posted on MIllionaireRealEstateLender.com

Posted on September 16th, 2008
Posted by: Irina Netchaev

No Comments »

Pasadena Mortgage Rates Report: September 12, 2008

Pasadena Mortgage Rates Report: September 12, 2008

by Brian Brady

The MBS market has improved dramatically since the new FHFA seized Fannie Mae and Freddie Mac.  An implicit government backing of mortgage bonds became explicit with that single event.  The rate difference, or spread as we call it, between govʼt bonds and mortgage bonds, has narrowed from abnormally high margins.  This means that mortgage rates dropped as much as .375% since the govʼt takeover.  Alas, I think that party is a bit short-lived.  The exuberance appears to be a bit irrational and the reality of impending bank failures has worried the MBS market again.  Short-term, Iʼm advising clients to lock-in these low rates and be done with it.


For Pasadena home buyers who are in escrow with a 30 day time period until closing, Iʼm advising that they lock as well.  Rates may spike up and come back down ,to these below 6% levels, but I donʼt see a great opportunity for the medium-term to improve upon todayʼs already low rates.

Longer-term, mortgage applicants may find mortgage rates higher than they are today.  The realization that SOMEONE has to pay for this bailout will hit everyone, after the election, and treasury bond yields should rise, pushing the MBS yields, and mortgage rates, higher as well.  Not a rosy picture.

So, lock those loans at application. While the current 30-year fixed rate loan offering, with 1% origination fee, is 5.75%, for a conforming loan (6.02% apr),  the risk of those rates popping up to the 6% level far outweighs the reward of holding out for 5.625%.

Originally posted at www.MillionaireRealEstateLender.com

PS- Please check out Brian’s references on LinkedIn

»crosslinked«

Posted on September 13th, 2008
Posted by: Irina Netchaev

No Comments »

Pasadena Mortgage Rates Report: August 29, 2008

Pasadena Mortgage Rates Report: August 29, 2008

by Brian Brady

 

Weird things are happening in the mortgage-backed securities market.  Strong
buying, in the 30 year-fixed rate loans, has dropped rates .25% since my last
report,  The ARM rates, however, have RISEN.  A weird phenomenon, indeed.  I’m
only quoting two loan programs (the others make no sense):

 

Pasadena Mortgage rates  for August 29, 2008.  Loan amounts up to
$417,000:


5/1 ARM              5.750%

30 Year Fixed      6.125%

All rates offered to the borrower with 1 point cost.  Rate quotes assume
a purchase transaction with a 20% down payment, 720 credit score, and full
income qualification.  Rates are subject to fluctuation.  Custom rate quotes and
rate lock advice are available by calling (858)-777-9751.


Short-term, this is about as good as it gets.  I think we’ll see some higher
rates, in the next 7-10 days, with rates coming back down to this level by the
end of September.  I’m befuddled for the 3 month trend so I’ll stay neutral.

 

PASADENA MORTGAGE RATE TREND:

Next 7 days:      Higher 

Next 30 days:     Neutral

Next 3 months:    Lower? (I’m
stumped)

 

Originally
posted on MillionaireRealEstateLender.com

Posted on August 29th, 2008
Posted by: Irina Netchaev

No Comments »

Pasadena Mortgage Rates Report: August 15, 2008

Pasadena Mortgage Rates Report: August 15, 2008

Pasadena Mortgage rates were stable this week. ARM rates went up and the fixed rate mortgage rates are the same as they were Monday. I mentioned that traders felt “stuck in the middle” of conflicting data. Core inflation is rising but oil prices are falling like a rock off a cliff. I’m as confused as the mortgage bond traders so I’m taking this opportunity to lock rates for loans closing within 30 days.

 

READ: Why Oil Prices Will Drop BELOW $100/ Barrel in 2009


Why? I think the rising ARM rates suggest that traders believe, in their hearts, that the Fed will tighten before Thanksgiving. I’m more about mitigating risk rather than pouncing on opportunity so when I’m confused, I lock mortgage rates. Maybe the descent in oil prices will continue and mortgage rates decline further but “I ain’t seeing it” from my ivory tower.

 

Pasadena Mortgage rates for August 15, 2008. Loan amounts up to $417,000:

 

3/1 ARM 5.750%

5/1 ARM 5.750%

7/1 ARM 6.000%

10/1 ARM 6.250%

30 Yr Fixed 6.375%

 

All rates offered to the borrower with 1 point cost. Rate quotes assume a purchase transaction with a 20% down payment, 720 credit score, and full income qualification. Rates are subject to fluctuation. Custom rate quotes and rate lock advice are available by calling (858)-777-9751.

 

MORTGAGE RATE TREND:


Next 7 days: Neutral

Next 30 days: Neutral

Next 3 months: Neutral

 

Originally posted on MillionaireRealEstateLender.com

Posted on August 15th, 2008
Posted by: Irina Netchaev

No Comments »

Pasadena Mortgage Rates Report: August 11, 2008

Pasadena Mortgage Rates Report: August 11, 2008

Pasadena Mortgage rates for August 1, 2008. Loan amounts up to $417,000:

 

3/1 ARM 5.500%

5/1 ARM 5.750%

7/1 ARM 5.875%

10/1 ARM 6.250%

30 Yr Fixed 6.375%

 

All rates offered to the borrower with 1 point cost. Rate quotes assume a purchase transaction with a 20% down payment, 720 credit score, and full income qualification. Rates are subject to fluctuation. Custom rate quotes and rate lock advice are available by calling (858)-777-9751.

 

PASADENA MORTGAGE RATE TREND:


Next 7 days: Slightly Higher

Next 30 days: Neutral

Next 3 months: Neutral

 

Remember the song “Stuck in the Middle With You” by Stealer’s Wheel? It was background music for a particularly gruesome scene in the Quentin Tarantino movie, Reservoir Dogs.

Well, I don’t know why I came here tonight
I got a feelin’ that something ain’t right
I’m so scared in case I fall off my chair
And I’m wonderin’ how I’ll get down those stairs
Clowns to left of me, jokers to the right
Here am I stuck in the middle with you

Wall Street bond traders are singing that tune and it’s bouncing mortgage rates all over the place. They’re scared because they feel that “somethin’ ain’t right” with the underlying loans held by Fannie and Freddie. Still, the US Treasury Secretary has pretty much guaranteed that the government will back Fannie Mae and Freddie Mac should the dung hit the blades.

 

While the treasury securities market has been somewhat stable these past few weeks, mortgage-backed securities are bouncing all over. Some days ,they act like treasuries and the spread narrows. Other days, they act like junk bonds and the spread widens. If you listened to my “dog on a leash” analogy, imagine a rabid animal running away from a scared owner one day and a docile pet running and cuddling with him the next.

 

Like the song, says, we’re “stuck in the middle” which means, in my mind, we’ll see mortgage rates rise a bit, to the 6.5% level, then drop to the 6.0% level. We still haven’t seen the full effect of the Russian invasion to Georgia. The American response will be much more than a Bush and Putin exchange at the Olympics. Georgia is a SERIOUS U.S. ally with a major oil pipeline running through it. The Russian attack was clearly unprovoked and part of a concerted effort to weaken the US dispute with Iran.

 

We’re locking loans that are closing within 10 days with an eye towards locking late August closings some time next week (when mortgage rates come back down).

This mortgage rates report is offered courtesy of Brian Brady. Contact Brian for more information about a home loan or apply online.

Originally posted at Mortgage Rates Report on August 11, 2008

Posted on August 10th, 2008
Posted by: Irina Netchaev

No Comments »

Pasadena Mortage Rates Report: August 1, 2008

Pasadena Mortage Rates Report: August 1, 2008

Pasadena Real Estate Mortgage rates for August 1, 2008.  Loan amounts up to $417,000:

 

3/1 ARM              5.500%

5/1 ARM              5.625%

7/1 ARM              6.125%

10/1 ARM            6.250%

30 Yr Fixed          6.250%

 

All rates offered to the borrower with 1 point cost.  Rate quotes assume a purchase transaction with a 20% down payment, 720 credit score, and full income qualification.  Rates are subject to fluctuation.  Custom rate quotes and rate lock advice are available by calling  (858)-777-9751 .

 

PASADENA MORTGAGE RATE TREND:

 

Next 7 days:       Slightly Lower

Next 30 days:     Slightly Lower

Next 3 months:   Neutral

 

This mortgage rates report is offered courtesy of Brian Brady.  Contact Brian for more information about a home loan or apply online.

Posted on August 1st, 2008
Posted by: Irina Netchaev

Like what you have been reading here? Subscribe now and receive email updates of our articles.


Newsletter

Categories

Freddie Mac

twitter-pasadenaviews-128

This site is proudly
sponsored by:
Irina Netchaev
Pasadena Views
2100 Huntington Dr #2

San Marino, CA 91108
CA DRE License #00872112
Cell: 626-627-7107
Direct: 626-629-8439
Fax: 800-584-4632
irina@irina4realestate.com

Syndicate this blog


Equal Housing Logo

Copyright © 2007-2013 - Pasadena CA Real Estate | All Rights Reserved.

California Real Estate by Best Pasadena Real Estate Agents