Mortgage Rates are in FREEFALL!

Just time for a quick update - because this is news I think many of you are waiting to hear.

Mortgage rates are in freefall mode today. The stock market closed pretty flat today, very slightly in positive territory, but the bond market is being very kind to mortgages.

The yield on the 10 year bond is currently at 3.3% - down approximately 20 basis points from the close yesterday. Apparently our 10 year bond auction was very well received today.

The 30 year fixed rate mortgage has finally dropped below 5% again, for the first time in over 6 weeks. Adjustable rate mortgages are down in the mid 4% range, especially if your loan has already been approved and is ready to get docs out for signing. FHA loans are again in the low 5% range.

There is no way to know how long rates will remain this low. But, we'll take the good news anytime.

If you are one of those people who has been thinking this is a great time to buy, but you can't sell your current home, There has been one big change fairly recently that might help some of you.

Many lenders are now allowing you to offset the amount of the mortgage payment on your current house if:

1. You have 6 months reserves (PITI = principal, interest, taxes and insurance) in the bank that you can document for 60 days or more

2. You have at least a 1 year lease signed for your current house

3. You are allowed 75% of the lease payment amount to offset your current mortgage payment.

If all this is confusing, please call me. I'll be able to work if you qualify and for how much you can qualify. I know there are some of you out there looking to buy to take advantage of the low prices, but unable to sell your current homes.

Make it a great afternoon today.

Warm regards,


Shelby Bateson

Town & Country Mortgage

Portland, OR 97219

503-819-6545 phone

Lic # ML-3604

http://www.shelbytncmortgage.com


* Best rates apply to borrowers with Loan to Value at or below 90% and credit scores of 740+. ** Best FHA rates apply to credit scores of 660 and up. There are upward rate adjustments for lower credit scores on all loan programs. All rates are subject to change without notice. These rates are NOT APRs - do not include closing costs.

Mortgage Rates are dropping AND Wine is Cheaper than Water?

Good Afternoon! I hope you all had a fabulous 4th of July holiday weekend. We are now into the part of the year where we won't see another holiday until Labor Day, so the short work weeks have ended for the summer again.

On a happier note, it has cooled off today, for those of us who dread those 90+ degree days.

The stock markets took a major hammering on Friday with the higher than expected unemployment numbers. In addition, China was again talking about a "universal reserve currency, rather than the U.S. dollar, so the markets jumped into sell mode for fear that China would start dumping the $1.9 trillion dollars they are currently holding. Today, Russia indicated that a universal reserve currency should be something to be discussed, but for now the US dollar is still that currency and trading up today. So far, the 2nd quarter has not been kind to the rest of the markets.

The stock market opened down all the way around this morning, but is now trading up around 40 points for the DOW, and down approximately 10 points for the NASDAQ. Remember that 2nd quarter business earnings reports begin soon, so the market is skittish ahead of those earnings, though most analysts don't expect much. Also, potential market and rate movers are the big treasury auctions again this week.

Gas and oil prices are way down to levels we haven't seen in almost 6 weeks. Oil is down to around $64/barrel. Hopefully we'll see gas prices at the pumps follow shortly. In fact almost all commodities are trading way down today. Metals of all types, both precious, like gold and silver, and unprecious, like aluminum and steel, are way off recent high prices. Even fertilizers and seed are way down. Does this mean food prices might drop?

Australian wine makers are complaining that wine is getting cheaper than bottled water. Wine in Australia is currently selling for less than half the price it was 10years ago. And in Cape Cod, the price of lobster is about equal to the price of lunch meat? Really? So, this recession means that we can all eat and drink like kings, as long as we eat at home? Works for me. Personally I've been enjoying some of the more costly types of fish, as fishermen are also being hit hard by this recession.

The U.S. service industries (home builders, retailers) contracted at a slower pace last quarter than prior quarters which most commentators are jumping on as an indication that we are starting to see the economy turning slightly. Most businesses however, are saying that when they see housing stabilize, then they will start increasing their output. Again, it's that Catch 22 (Housing won't stabilize until employment stabilizes. Employment won't stabilize until businesses increase output, and round and round we go.) Which came first, the chicken or the egg? Hmmm.

In the meantime, monetary policy makers are again urging and criticizing banks for sitting on all the funding they have been receiving from central banks, rather than lending out those funds to stimulate businesses and world economies.

Lastly, another bright note is that mortgage rates are down a bit today. We are definitely nearing that **5% mark for the 30 year fixed rate loan. The 5/1 ARM is dropping more dramatically and more quickly than the 30 year fixed and is solidly below that 5% mark today with almost all the lenders that are offering the product.**

From what we're hearing, there is no cause to rush to top off your gas tanks today. Oil prices have broken through a resistance level, and are expected to continue to drop to closer to $60/barrel for the rest of this month.

Low rates!! Low gas prices!! It's sounding better to me!

Enjoy the rest of your day today.

Best regards,


Shelby Bateson

Town & Country Mortgage

10228 SW Capitol Highway

Portland, OR97219

503-819-6545 phone

Lic # ML-3604

http://www.shelbytncmortgage.com


** Best rates apply to borrowers with Loan to Value at or below 90% and credit scores of 740+. ** Best FHA rates apply to credit scores of 660 and up. There are upward rate adjustments for lower credit scores on all loan programs. All rates are subject to change without notice. These rates are NOT APRs - do not include closing costs.

125% HARP Financing - Clarification

Good morning and Happy Holiday.

I received a lot of response to my post yesterday about the new HARP loan limits as high as 125%. It is always gratifying to me to see that a lot of you read my emails. However, it was apparent that many of you are confused about the email, so I'd like to clarify.

As a reminder, the HARP program was initiated to make it possible for those of you who currently have mortgages owned by either Fannie or Freddie, to refinance your loans at the lower rates, in spite of the fact that you owe more than your house is currently worth. With HARP refinances, you are not permitted to get cash back. You are permitted to refi for the purpose of lowering your rate, and therefore lowering your monthly payments to help you through this economic crisis.

When HARP was rolled out in February, housing values had not fallen as much as they have now. The lending limit was set at a loan amount of up to 105% of the appraised value of your home. Since home values have continued to drop, the lending limit has been raised to 125% of the appraised value. This has been done to allow more of you to take advantage of this program. If you have not checked in the past, or if you checked in the past and got a NO response, please click on the links below to find out if your current mortgage is owned by either Fannie or Freddie now. Some mortgages were reporting incorrectly, and Fannie and Freddie have purchased more existing mortgages.

https://ww3.freddiemac.com/corporate/

http://loanlookup.fanniemae.com/loanlookup/

For those of you whose mortgages included mortgage insurance payments, technically you do qualify for a HARP refinance transaction. BUT, Fannie and Freddie are requiring that in order to get this refinance, you must still carry mortgage insurance on your loan. The problem is that there are no insurers willing to insure this loan, so the reality is that you still cannot refinance your loan. In my less than humble opinion, this is not fair. Many borrowers who DO qualify for HARP funding, have a 1st and 2nd mortgage, rather than mortgage insurance, and never had more equity than you.

We in the lending industry, are campaigning on your behalf, with Congress and with Fannie and Freddie, to have this mortgage insurance requirement deleted. In our opinion, you are being unfairly discriminated against because you perhaps bought your house later in the game, or you didn't have the 20% down payment when you purchased or refinanced, or you didn't get a 1st/2nd mortgage combo loan when you purchased. If you have good credit, a good payment history, and a steady source of income, why should some people have an opportunity you are being denied?

You need to take steps to try to help yourselves, because this affects a LOT of you. When we in the mortgage industry talk to our Congressional representatives, or lobby Fannie and Freddie, we are often perceived as looking after our own interests - more business. Of course we want more business, doesn't everybody? But, at the same time, we are the ones in the position of seeing, first hand, how many of you are being affected by this ruling. YOU have to speak out on your own behalf. Congress tends to "grease the squeakiest wheel," so if you make yourselves heard in huge numbers, perhaps someone will actually take notice. There is no reason why your loan, at 125% of appraised value, poses a higher risk to the lender than someone else, with the same, and potentially even less equity. Following are some speaking points I suggest you use, if you should decide to contact your Congressional representative:

1. My credit score is __________

2. I have owned my home for _______ years

3. I have NEVER been late on my mortgage payment

4. I have steady employment income and have been at my current job for _____ years.

5. So, why can't I refinance my ___% mortgage at today's lower rates, when someone else with all the same statistics can?

Be sure to start your correspondence or call with the fact that you want to qualify for a HARP loan, but have been denied because your current mortgage includes mortgage insurance.

To contact your Congressman, Senator, or Fannie Mae, click on the links below to be taken to their websites.

https://writerep.house.gov/writerep/welcome.shtml

http://www.senate.gov/general/contact_information/senators_cfm.cfm

http://www.fanniemae.com/contact/crc.jhtml;jsessionid=OKGECFH3RIXC5J2FECHSFGQ?p=Contact+Us

Please have a safe and happy holiday weekend.

Warm regards,

Shelby Bateson
Sr. Loan Officer

503-819-6545

http://www.shelbytncmortgage.com

125% Financing? HARP Lending Guidelines Just Got Better!

We have just heard that with a new cash infusion to Fannie and Freddie of $6.1 billion, AND home values continuing to fall, HARP financing rules have just been changed to allow more home owners the ability to refinance their homes.

If you'll recall, HARP financing applies to those borrowers whose current mortgages are owned by either Fannie or Freddie. The rule, prior to today, was the capability of refinancing your current mortgage up to 105% of the home value. As of today, that has been increased to 125% of the homes value.

If you have a 1st and 2nd mortgage, this refinance will apply to the 1st mortgage only, but your first mortgage can be up to 125% of the appraised value of your home. Many of you were not able to qualify for the HARP program prior to this change due to extreme loss of your home value.

If you think this applies to you, please do not hesitate to call or email me.

Lenders are working frantically to update their guidelines to handle this rule change.

Again, have a great day today.

Shelby

503-819-6545

www.shelbytncmortgage.com

Market and Mortgage News today - An Idea to Help Buy REO Property

Good afternoon and welcome to the second half of 2009.

The news is mixed today, and rates are again somewhat volatile ahead of the holiday weekend, and the beginning of second quarter earnings reports.

Treasury bond yields are rising again today as investors again become nervous about the bond auction coming up next week. While the auction is not record setting in size, it is still a big auction. Also trading on Wall Street is very light today, because of the short week, and because investors are awaiting the June employment numbers that will be reported tomorrow.

The ADP numbers were released this morning for June. (ADP reports only on the private sector employment data and are not deemed to be truly accurate). Employers announced the fewest job cuts for June that we have seen in over a year. Some analysts are taking this as a sign that perhaps more employers have finally reached a "stabilization" point where they feel they are now staffed at the numbers required to make it through the rest of the recession. Planned firings dropped 9% for the month of June. This brings the total number of people who have lost employment, since this recession began in late 2007, to more than six million people! The ADP report is considered a somewhat unreliable report because it excludes government employees, and we know that many states are also laying off employees.

California just announced that state workers will be required to take an additional 1/3 day off without pay, and some people will be paid with State of California IOUs!! Wow - that will pay the bills. Can they use those IOUs to make their mortgage payments? Other states around the country are also scrambling to pass their state budgets to see how they will manage their economies, since June 30 marks the end of the fiscal year for many states.

Mortgage applications dropped the most last week, since February, due to higher rates. Refinance applications, which had been sustaining the mortgage industry declined 30% and accounted for less than 50% of all mortgage transactions for the month. It is feared that if rates continue to rise, and foreclosures continue to rise, this housing crisis could extend well into the latter part of 2010. But, those buyers who can still qualify for credit are out buying up the bargains. The NRA (National Realtors Assocation) is reporting that, for the most part, most sales are "distress sales (properties priced below fair market value).

The good news this morning is:

1. the Obama administration plan to jump start the economy with public sector jobs, is scheduled to begin hiring and breaking ground in the coming months this year.

2. pending sales of existing homes increased in May by 0.1%. May marks the 4th consecutive month that an increase in sales has occured. Pending sales is a statistic that is considered a "leading indicator."

3. Oil prices are again below $70/barrel today.

Are you shopping for a home now? Are you thinking of utilizing FHA financing, AND buying a bank owned (foreclosed) property? Here's a strategy that some realtors across the country are utilizing to get those offers accepted more quickly. Offer the bank as much or more than they are asking, with the knowledge that the property will NOT appraise for as much as the offer. The bank is pretty certain to accept your offer, but will HAVE to renegotiate with you for the appraised value. I'm not going to go into all the intricacies of why this works, but the bank is "stuck" with the appraised value for 6 months from the date of the appraisal, so they will either have to renegotiate with you, or sell that property to someone else at the appraised value. The one caveat here is that this will only work if you can qualify for the higher loan amount (based on your offer price) AND you are really certain that the offer price is higher than where the property will appraise.
Interesting strategy. Please contact me if you or anyone you know has utilized this strategy successfully.

Enjoy the rest of your day today.

Best regards,

Shelby Bateson

Town & Country Mortgage

503-819-6545 phone

Lic # ML-3604

www.shelbytncmortgage.com

* Best rates apply to borrowers with Loan to Value at or below 90% and credit scores of 740+. ** Best FHA rates apply to credit scores of 660 and up. There are upward rate adjustments for lower credit scores on all loan programs. All rates are subject to change without notice. These rates are NOT APRs - do not include closing costs.

Breaking News, Mortgage Markets and More

Good morning, and happy end of the first half of 2009. Tomorrow we officially begin the "second half" of 2009, which many analysts and economists have predicted will mark the beginning of the end of the worst recession to hit this country, and the world in 5 decades. Let's hope all these brilliant people are correct in their predictions.

The Case Shiller index released home valuation numbers for April (note this is 2 months behind). The news was a bit encouraging as we are seeing a decrease in the drop in home values across the country. In fact, 8 cities reported values increasing slightly. We are now well into the traditionally busiest season for home sales. While home values appear to be steadying, we do know that with the high unemployment rate, more foreclosures are upcoming. But, we also know that banks are becoming more reluctant to sell homes at below value prices, and are actually holding off on releasing their REO inventory, to help sustain home values, and of course, to save on more losses to their bottom lines.

Hang onto your pocketbooks folks. In the ongoing saga between Swiss Bank UBS and the IRS, it appears that the IRS has won the battle. If you, or anyone you know has a "hidden" bank account at UBS (for the purpose of avoiding IRS taxes), you will NOT be able to access those funds unless you close the account or move the funds to an onshore account, beginning tomorrow, July 1, 2009! In response to this announcement, many lenders have already announced this morning that prior to closing a mortgage transaction, you will be required to sign a form authorizing the lender to do an OFAC (Office of Foreign Assets Control) search prior to drawing docs or funding your loan. Some of the credit bureaus we utilize have the capacity to make this search prior to issuing the credit report. Of course, there is a nominal extra charge for this search, but the few dollars up front (my best guess is not more than $5) could save hundreds of dollars in closing delays. So, of course, we will be utilizing this service beginning immediately.

Daniel Baldwin, brother of actor Steven Baldwin, has announced that he will be moving to Portland with plans of opening a film production company here in our city. The plan is to make films in and about Oregon. His initial plans include the start of at least 3 productions within the first year. Are we ready for a Portland based reality show? Other plans include a horror flick, and a documentary on the struggling economy in Oregon. In fact, a large part of the reason for Baldwin's move to Portland is to help our economy. Did you realize that Oregon's economy is just below the poverty level? Then why are our housing prices averaging approximately $125,000 higher than the median price of homes across the nation?

The stock market is down across the board this morning, as we close out this quarter. In the meantime, the yield on the 10 year bond seems to be moving up again. It dropped slightly below 3.5% yesterday, but has reversed course today, and currently sits at 3.51%. Hang on - we're hearing the Feds are again infusing cash into the mortgage bond markets, so we just might see mortgage rates moving down again.

Best rates this morning:

30 year fixed - still above 5% - but trying to hit that mark again

5/1 ARM - this loan rate really depends on the lender. We are seeing the best rate between 4.5% - 5% for those lenders offering this product. This product is very sensitive to ALL the possible adjustments that can affect the rate you will pay.

FHA - 5.5% and up - again depending on the lender.

Speaking of lenders, please be sure to do some shopping around for rates and fees BEFORE you apply at one of the bigger banks. We are hearing that more and more big banks are requiring non-refundable application fees, and once you pay that $500-$750 fee, you will feel stuck with that bank. But, rates are so variable between lenders these days, that getting yourself stuck may not be the best option for you. There are still hundreds of lenders out there doing mortgage loans, so there is significant competition for your business.

Make it a great day everyone.

Best regards,

Shelby Bateson
Sr. Loan Officer

Town & Country Mortgage

http://www.shelbytncmortgage.com/

* Best rates apply to borrowers with Loan to Value at or below 90% and credit scores of 740+. ** Best FHA rates apply to credit scores of 660 and up. There are upward rate adjustments for lower credit scores on all loan programs. All rates are subject to change without notice. These rates are NOT APRs - do not include closing costs.

Mortgage Rates are Dropping AGAIN!

Happy Friday to everyone. We have some encouraging news almost all the way around.

> The stock market staged a bit of a rally yesterday, though the DOW is still down slightly for the week.

> The yield on the 10 year Treasury bond is down to 3.5% - this is a big drop from the almost 4% yield just a couple weeks ago, and mortgage rates have responded along with this yield drop. We're still off the lows of a few months ago, but this is encouraging news.

> Consumer spending increased in May, for the first time in 3 months, as average incomes also rose approximately 1.4%

> Individual savings have increased to a 15 year high, which ironically is what is holding the stock market down. Investors want and need to see us spending, in order to stimulate business. For those of you who are managing to save right now, congratulations!

> Disposable income increased an average of 1.6% due to wage increases

> The Michigan consumer sentiment index increased to 70.8% (do you remember when it was below 50% during the height of this economic downturn?)

> Some areas of the economy, including housing and manufacturing are finally seeing a slowdown in the pace of decline.

> While oil rose to above $71/barrel yesterday, based on news about the Nigerian turmoil around the oil fields and pipelines, much of that turmoil is abating through Nigerian government intervention. Oil is back under $70/barrel today.

We expect the national employment numbers next week. Most analysts expect that number to be 9.6% unemployment nationally, the highest level since the 1970s. Keep in mind that employment and unemployment are considered "lagging indicators." This means that businesses do not start hiring again until they see their numbers improving. So, we will see business improvement before we see the unemployment numbers begin to shrink. This is like a Catch 22. If all those unemployed went back to work, we would have more people spending, and businesses would be more profitable - but somehow this will work itself out; it always seems to anyway.

Enjoy your weekends. It is supposed to be warm and sunny.

This weekend, the Obama and other Healthcare reform supporters are holding limited health screenings around the state. In Oregon, almost all Farmers Markets will be hosting, at the very least, free blood pressure checks. Check out your local activity calendar to see what types of events are available in your area.

Best regards,

Shelby Bateson

503-819-6545

http://www.shelbytncmortgage.com/