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Real Estate Lending News

  • Let’s consider ways to save money on your home loan

    Understanding options for your mortgage can be the key to saving thousands during the time you own your home.

     

    Here’s an easy-to-use tool to help you compare up to four loan options. Simply adjust the variables, then with the click of a button or a tap on your phone, we’ll show you what to expect for a monthly payment and
    your total cost over 10 years.

     

     

    I hope you enjoy experimenting to see where you might save. Please remember that any actual loan terms are subject to approval. If you’d like to explore your options further, please reach out. I’ll be happy to help.

    Sincerely,

    Fred Kreger, CMC
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

     

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  • Who’s blowing their budgets? Find out in this week’s Markets in a Minute!

     

     

    For the Week Ending April 6, 2018

     

    The Stock Market:

    If you have been reading this newsletter for a while, you will recall my mentioning in past editions how it is amazing what we can get used to. Well…this week the stock market has had some of the largest swings from negative to positive territory in a single session ever recorded. A more than 700 point swing from being down over 500 points, to rallying up over 200 points, all in the same day. The amazing part is that unless you were actually trading yourself, you probably just looked at the headline and moved on. I will say it again,,,”it is amazing what we get used to”.

     

    Construction Spending:

    Construction spending has not been as robust as it was late last year. The most recent data for February showed only a minimal 0.1 percent increase. This small movement comes after the prior month showed no increase at all. The good news in the report is that single-family homes rose 0.9 percent for a second straight month. This now places year-on-year spending up by a very strong 9.5 percent. Multi-family homes is where the majority of weakness exists. However, even this month, spending increased in this sector by 1.2 percent making the annual increase 0.9 percent.

     

    The drag on construction spending comes from the home improvement sector. This area declined by 1.5 percent. It is too early to determine, but some analysts believe that homeowners unwillingness to either tap an existing home equity line of credit, or even apply for one, may be playing a role. With interest rates rising, HELOC’s move immediately with Fed rate increases. Couple that with the fact that the interest is no longer tax deductible, this could very well have homeowners holding off on major improvements or renovations.

     

    Mortgage Activity:

    Once again, we are experiencing just how sensitive borrowers are to even the slightest movement in interest rates. For the week ending March 30th, the Mortgage Bankers Association of American reported that applications for refinances declined 5.0 percent. The share of refinances is now down to 38.5 percent of total mortgage volume. This is the lowest since September 2008.

    Purchase applications were also down, but only by a modest 2.0 percent. This seems to be more caused by the lack of housing inventory nationally, than interest rate movements. As we head into what is considered the selling season, it still seems that homeowners are not budging.

     

    Next week’s potential market moving reports are:

    • Tuesday April 10th – Producer Price Index
    • Wednesday April 11th – MBA Mortgage Applications, Consumer Price Index
    • Thursday April 12th – First Time Jobless Claims
    • Friday April 13th – Consumer Sentiment, JOLTS Report

     

    As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

     

    Please enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    Factory activity slowed in March, but growth in the manufacturing sector is still going strong. More companies showed signs of expanding than shrinking.
    Tariffs on goods from China continued to dominate the headlines this week. Trade war concerns have helped keep mortgage rates from rising.
    Jobless claims were up on the week, but jobless rolls fell to the lowest level since 1973. A tightening labor market could boost wage growth, leading to inflation.

     

    Construction spending was up in February after being unchanged in January. Spending on private residential projects increased 0.7%, after falling in January.
    Home buyers are blowing their budgets to snag their dream houses as prices rise. A third of buyers spent an average of $16k more than they planned.
    Rising home prices may keep some out of the market. A recent Freddie Mac survey finds 67% of current renters view renting as more affordable than owning.

    Optimist: The glass is half full.

    Pessimist: The glass is half empty.

    Mother: Why didn’t you use a coaster?

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

     

    Sincerely,
    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

     

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  • If that interest rate sounds too good to be true…

     

     

    Have you ever seen an advertised mortgage interest rate that seemed too good to be true?

    Those rates are often based on factors that aren’t likely to occur in a real-world scenario.

    Try plugging some numbers into our fun rate factors machine to see how a little bit of reality can impact advertised rates.

    Remember, your scenario may produce different results than what you see here—maybe even better.

     

    The only way to know for sure is to reach out. I’ll be happy to help when you’re ready!

    Sincerely,

    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

    Read more
  • Inflation and rents are both on the rise in this week’s Markets in a Minute!

     

     

    For the Week Ending March 23, 2018

     

    Inflation Data:

    We can forget the regular news that most traders use to make their daily decisions. With President Trump’s announcement of tariffs against China, and with the late Thursday afternoon announcement that China will retaliate with 3 Billion Dollars (yes that is a “B”) in tariffs of their own against the planned U.S. tariffs of 50 Billion (yes another “B”), no one knows how this will play out.

     

    This is not an American – China issue. This trade war will impact the entire world and can have unknown consequences. Nothing like this has ever been done before. Even expert opinions on this matter, that have emerged immediately since the announcements, means nothing. It is all speculation on not only the outcome of these decisions between the two countries, but the global economic impact. Time will tell what the reality of these decisions will be if both countries stick to their announced plans.

     

    The Federal Open Market Committee Announcement:

    The Fed reiterated that they are sticking to their plan of a total of 3 interest rate hikes in 2018. The Fed did raise rates, as expected, by 25 basis points. One rate hike down, two more to go. Inflation continues to be described as moderate and the expectation that in the coming months it will likely increase. Needless to say, the threat of a trade war with China threatens to upend any plans the Fed has for economic policy.

     

    The Fed sees the economy as stable, however they have changed their description in describing the economy from “solid” to “moderate”.

     

    Existing Home Sales:

    Existing home sales jumped 3.0 percent in the month of February. The annualized rate of 5.540 million was higher than expected. Compared to the same time last year, sales are up 1.1 percent. Prior to this report, sales were actually negative compared to last year.

    The best part of the February sales data comes from the single-family home sector. Sales increased 4.2 percent while supply also increased 4.6 percent to 1.590 million. The increase in sales did not negatively impact home prices. The median home price rose 0.4 percent. Compared to the same time last year, prices are 5.9 percent higher.

     

    Next week’s potential market moving reports are:

    • Monday March 26th – Dallas Fed Manufacturing Survey
    • Tuesday March 27th – S&P Corelogic Home Price Index, Consumer Confidence
    • Wednesday March 28th – MBA Mortgage Applications, Pending Home Sales
    • Thursday March 29th – First Time Jobless Claims, Consumer Sentiment

     

    As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way
    I possibly can.

     

    Please enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    As expected, the Fed raised policy rates at this week’s meeting. While they alluded to only two more hikes this year, rising inflation could necessitate more. 
    The institution of tariffs, most recently against China, can contribute to rising inflation by limiting free markets. Inflation fuels rising interest and
    mortgage rates.
    After rising quickly early in the year, mortgage rates have stabilized. Nonetheless, further increases are expected through the rest of the year.

     

    Existing home sales were up 3% in February, despite a chronic shortage of inventory. That’s 1.1% higher than February 2017, showing strong demand.
    Tight inventory, especially for homes in the lower price ranges, is the new normal. Housing inventory was down 8.1% from a year ago this time.
    Along with interest rates, rents have been rising. A recent survey concluded that the largest 250 U.S. cities saw rents grow year over year by an average
    of 2.7%.

    If you make something idiot proof, someone, somewhere will make a better idiot.

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

    Sincerely,

    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

     

    Read more
  • Refreshing news in this week’s Markets in a Minute!

     

     

    For the Week Ending March 16, 2018

    Please enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    Consumer inflation was less threatening in February according to the recent CPI data. If inflation rises too quickly, mortgage rates could follow.
    Concerns over import tariffs and possible trade wars continue to plague markets and could cool the economy. This could help keep rates from rising.
    The Fed is expected to raise policy rates at next week’s meeting. The change has already been priced into mortgage rates and likely won’t have further impact.

     

    A recent survey shows Baby Boomers want high speed internet and to live near grocery stores and hospitals. Over 90% said they plan to stay in their own home. 
    Another poll found more than 70% of homeowners in their home for 10+ years aren’t moving because they like their home. Another 21% don’t want the hassle of
    a move.
    The NAR found that 40% of potential millennial home buyers would start their property search online, while 15% said they would call an agent first.

    I love pressing F5. It is so refreshing.

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

    Sincerely,

    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

    Read more
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