The MBS market started the day down, but has since recovered and is not in positive territory. The stock market is down just a few points and with the upcoming Treasury auction everything could change. We see it everyday it seems like.
Greece's Prime Minister has resigned, it appears the market likes the news and that the new regime will most likely take the EU deal and try to restructure. But just when we thought we could breathe, new out of Italy... The Italian economy could be in trouble, an invitation to the Italian Prime Minister has been heard. This again could rock the EU and the global economy.
We never know what tomorrow will bring (or the next hour even). If you are looking to refinance or purchase and are ready to lock, don't hesitate, waiting may save you and 1/8, but it could cost you a 1/2. Is it worth the stress? Lock now and sleep peacefully tonight.

New Jobs Chart

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You Gotta Know When to Hold'em...Know When to Fold'em

The Equity markets will have a roller coaster of a day, boy doesn't that sound familiar. Our own economic issues aside, we are a global economy, and choices being made in the European Union, China, Japan, etc...have effects that are wide reaching. The referendum vote that PM of Greece had wanted may or may not happen. If the Greek people vote down the plan or vote to remove themselves from the EU, The EU will not give any assistance, "not one penny," to help Greece in the coming months of economic uncertainty. Who will? Will anyone? Is someone going to finally say, you made your bed, now lie in it? Only time will tell on this front.
But what does that make for the Wall Street investor, or the main street investor, or the first time home buyer trying to figure out what is best for their future with the mortgage they are choosing. Here is my advise, at least to the soon to be home owner. Rates are terrific now. Instead of waiting a day, week or month or two, take advantage of what the market is currently handing to you. The purchase transaction will be a lot less stressful, if you lock in your rate and know that it is a terrific rate, a rate that wasn't available 1 year ago, 5 years ago...ever.
Just like today, tomorrow will be volatile and another/different roller coaster. Take control and step off the coaster!

Could there be a QE3?

The MBS market has had three great days on the market gaining over 100 points. This morning it opened weaker, but since has started to pare some of its losses. The stock market has taken a beating as of late and is holding onto a modest gain right now. The Fed speaks today about the economy and its thoughts on where it is headed and what they should do about it. The rumor mill is all a buzz saying we could see a QE3. I am not sure that is a great answer, I feel that my none of my decedents, no matter how many greats you put in front of their names will be able to get out of the hole we are digging right now.
My concern is not only the hole we are digging, but I believe Greece is the tip of the iceberg in Europe and who is going to be able to save us all? China is on hold...they can't be the white knight for everyone.
There is a silver lining, home prices and mortgage rates are significantly lower than we have ever seen. Those who are working and are able to pay rent everyday, should really look at the idea of purchasing a home. There are loans available with little to no down payment if you fit the guidelines. A home is an amazing investment and for those who have the dream of one day owning their own home, now is the time to try and make that dream a reality.
If your credit isn't perfect, don't let that stop you, talk to a professional (like me) to find out what you need to do, and get yourself on the right track. Procrastinating just makes everything worse. (A friend of mine told a group that yesterday, and she was so right!)
I'll keep you posted on the QE3 announcement...

Updated HARP Plan

The federal government has made the announcement as of 10/24/2011 that the HARP program is going to have changes made and that may make it more accessible for home owner's who are current on their home, but maybe upside down. However this is the quote from the Press Release on when we will have the actual guidelines:

"The Enterprises (Fannie and Freddie) plan to issue guidance with operational details about the HARP changes to mortgage lenders and servicers by November 15. Since industry participation in HARP is not mandatory, implementation schedules will vary as individual lenders, mortgage insurers and other market participants modify their processes."

I promise to all of my current and hopefully future clients, as soon as we have the guidelines and are able to implement them, I will be working on them. Please be patient as we wait for the guidelines and shoot me an email or comment if you would like me to look at your personal situation in the coming weeks. dromero@abilitymortgage.com

Have a Great Weekend!

The Updated HARP Plan

I love to be cynical, but I think the government may have fixed the problems we were having with the refinance program. If what I am reading is true, if your mortgage is owned by Fannie or Freddie and you have been current with that mortgage, you may be able to refinance into a lower rate.

When the original program was rolled out they were hoping to help 5 million families. Values being what they are and other issues, less than 900,000 mortgages were able to be re-written.

I hope this program is what it appears to be and that we can help families lower their payments, rates, and stay in their homes. It won't solve the problem for everyone, but it may be much more successful now.

Mid-Term Week Off

The kids have a week off here in October. Of course I am very busy, but Frank and I have decided to make a softball trip into a mini vacation. We will be taking both kids to view 3 colleges, see a few different beaches, and hopefully relax a little before we have another weekend of softball games.
If you have a break this week, I hope you are able to find some time to do something "fun" with your child. Any great ideas, please let me know via comment.
Have a great week!