I am Realtor. I'm not a lender-- so I am constantly learning more and more about the mortgage industry. I will continue to share weekly updates from WR Starkey. I want to make sure you can get all of the information out of it that they offer. Here are the basics:
So what does all of it mean?
Mortgage Bond: A bond secured by a mortgage on a property. Mortgage bonds are backed by real estate or physical equipment that can be liquidated. These are usually considered high-grade safe investments.
Treasuries: Negotiable U.S. Government debt obligation backed by its full faith and credit. Treasuries are issued by the U.S. government in order to pay for gonvernment projects. The money paid out for a Treasury Bond is essentially a loan to the government. As with any loan, repayment of pricipal is accommanied by a specified interest rate. These bonds are guaranteed by the "full faith and credit" of the U.S. government, meaning that they are extremely low risk (since the government can simply print money to pay back the loan).
Consensus Estimate: When you hear that a company has "missed estimates" or "beaten estimates", these are references to consensus estimates. Based on projections, models, sentiments and research, analysts strive to come up with an estimate of what the company will do in the future. Obviously, consensus estimates are not an exact science. This leads some market pundits to believe that the market is not as efficient as often purported, and that the efficiency is driven by estimates about a multitude of future events that may not be accurate. This might help to explain why a company's stock quickly adjusts to the new information provided by quarterly earnings and revenue numbers when these figures diverge from the consensus estimate.
Consumer Confidence: Consumer confidence, measured by the Consumer Confidence Index (CCI), is defined as the degree of optimism on the state of the economy that consumers (like you and me) are expressing through their activities of savings and spending. The CCI is prepared by the Conference Board, and was first calculated in 1985. In that year the result of the index was arbitrarily set to 100, representing the index'sbenchmark. This value is adjusted monthly on the basis of a household survey of consumers' opinions on current conditions and future expectations of the economy. Opinions on current conditions make up 40% of the index, with expectations of future conditions comprising the remaining 60%. In the glossary on its website, the Conference Board defines the Consumer Confidence Survey as "a monthly report detailing consumer attitudes and buying intentions, with data available by age, income and region". In the most simplistic terms, when their confidence is trending up, consumers spend money, indicating a healthy economy. When confidence is trending down, consumers are saving more than they are spending, indicating the economy is in trouble. The idea is that the more confident people feel about the stability of their incomes, the more likely they are to make purchases.
Durable Goods Orders: A category of consumer goods, durables are products that do not have to be purchased frequently. Some examples of durables are appliances, home and office furnishings, lawn and garden equipment, consumer electronics, toy makers, small tool manufacturers, sporting goods, photographic equipment, and jewelry. Also known as "durable goods".
Consumer goods are often classified as durables or non-durables. Durables are the stuff you buy to last, like a TV or a freezer
(Info found on Investopedia.com and InvestorWords.com)
Thursday, October 30, 2008
Monday, October 27, 2008
Lending Update from WR Starkey
Market Comment - Week of October 26th, 2008
Mortgage bond prices rose last week pushing mortgage interest rates lower. Trading remained extremely volatile. Most of the improvements in mortgage interest rates came the beginning of the week as stocks struggled amid continued global economic uncertainty and oil prices continued to fall. Unfortunately a lot of the gains were wiped out Thursday and Friday as fear continued to grip the financial markets and many investors pushed funds into Treasuries or returned to cash positions on the sidelines. For the week, interest rates on government and conventional loans fell by about 1/8 of a discount point.The Fed announcement Wednesday will be the most important event this week. The gross domestic product and employment cost index data will also be very important. Expect extreme market volatility again this week.
Here are the Economic Factors this week:
New Home Sales
10/27/08
Consensus Estimate: Down 0.4%
New Home Sales
10/27/08
Consensus Estimate: Down 0.4%
Analysis: Important. An indication of economic strength and credit demand. A decrease may lead to lower rates.
Consumer Confidence
10/28/08
Consesus Estimate: 54.0
Analysis: Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.
Durable Goods Orders
10/29/08
Consensus Estimate: Down 0.5%
Analysis: Important. An indication of the demand for "big ticket" items. A larger than expected decrease may lead to lower rates.
Analysis: Important. An indication of the demand for "big ticket" items. A larger than expected decrease may lead to lower rates.
Fed Meeting Adjourns
10/29/08
Consensus Estimate: 50 basis point rate cut
10/29/08
Consensus Estimate: 50 basis point rate cut
Analysis: Very Important. Most expect the Fed to cut rates. Volatility is likely to surround this meeting.
Q3 Advance GDP
10/30/08
Consensus Estimate: Down 0.1%
Analysis: Very important. The aggregate measure of US economic production. A decrease may lead to lower rates.
Q3 Employment Cost Index
10/31/08
Consensus Estimate: Up 0.7%
Analysis: Very important. A measure of wage inflation. Weakness may lead to lower rates.
Personal Income and Outlays
10/31/08
10/31/08
Consensis Estimate: Income up 0.1%, Outlays down 0.1%
Analysis: Important. A measure of consumers' ability to spend. Weakness may lead to lower mortgage rates.
Analysis: Important. A measure of consumers' ability to spend. Weakness may lead to lower mortgage rates.
U of Michigan Consumer Sentiment
10/31/08
Consensus Estimate: 67.0
Analysis: Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.
Gross Domestic Product
The Gross Domestic Product (GDP) is one of the most important reports during any given quarter. GDP is a measure of US economic output and spending. The report is significant in that it provides investors, analysts, traders, and economists with a comprehensive report of the direction of the economy. In addition, it also influences the decisions of Federal Reserve policy makers, Congressional budget employees, and corporate financial planners. GDP is the sum total of goods and services produced by the United States. The initial report is often based on incomplete data. Therefore, additional revisions are released over the following two months. There are often substantial differences between the initial release and the revisions. The mortgage-backed security market generally responds favorably to weaker GDP growth. The advance third quarter gross domestic product data this week has the potential to move mortgage interest rates. A cautious approach is necessary to protect against market volatility.
The Gross Domestic Product (GDP) is one of the most important reports during any given quarter. GDP is a measure of US economic output and spending. The report is significant in that it provides investors, analysts, traders, and economists with a comprehensive report of the direction of the economy. In addition, it also influences the decisions of Federal Reserve policy makers, Congressional budget employees, and corporate financial planners. GDP is the sum total of goods and services produced by the United States. The initial report is often based on incomplete data. Therefore, additional revisions are released over the following two months. There are often substantial differences between the initial release and the revisions. The mortgage-backed security market generally responds favorably to weaker GDP growth. The advance third quarter gross domestic product data this week has the potential to move mortgage interest rates. A cautious approach is necessary to protect against market volatility.
CURRENT INTEREST RATES
Conventional 30 Year Fixed Rate 6. 125 %
FHA/VA 30 Year Fixed Rate 6. 500 %
FHA 3/1 ARM 6. 125 %
FHA/VA 30 Year Fixed Rate 6. 500 %
FHA 3/1 ARM 6. 125 %
Sunday, October 19, 2008
Friday, October 17, 2008
WE'RE PAINTING THE TOWN RED!
We refuse to listen to all the nay sayers about the market so this weekend we are Painting the Town Red! Our office is having an open house day on Sunday. We'll have 66 homes open! If you live in West Cobb you'll have a hard time missing all the red and white balloons. If you or anyone you know are searching for a new home please let them know about this event. We are all so excited to show off all the great property we have on the market.
We have an article running in the Marietta Daily Journal and a big 2 page layout with all of our homes featured. Here's a snippet of the article- "We are refusing to buy into what the media is saying about the housing market. Our agents believe that now is a great time to buy a home," said Kim Jeans, team leader of Keller Williams Signature Partners. "Loans are still available and rates are still extremely low. You can buy more house now than previously and there are fabulous deals to be had."
Here are the 2 homes Karen and I will be hosting on Sunday:
We refuse to listen to all the nay sayers about the market so this weekend we are Painting the Town Red! Our office is having an open house day on Sunday. We'll have 66 homes open! If you live in West Cobb you'll have a hard time missing all the red and white balloons. If you or anyone you know are searching for a new home please let them know about this event. We are all so excited to show off all the great property we have on the market.
We have an article running in the Marietta Daily Journal and a big 2 page layout with all of our homes featured. Here's a snippet of the article- "We are refusing to buy into what the media is saying about the housing market. Our agents believe that now is a great time to buy a home," said Kim Jeans, team leader of Keller Williams Signature Partners. "Loans are still available and rates are still extremely low. You can buy more house now than previously and there are fabulous deals to be had."
Here are the 2 homes Karen and I will be hosting on Sunday:
106 Courtland Circe ~$169,900
Immaculate raised ranch, 3 bedrooms, 2 baths with a fenced yard & finished room in basement. This home is in a great school district and it's just a short walk away.
891 Brown Store Rd. ~ $295,500
Almost 1 acre in Cobb County in the Harrison School District, Wonderful Master on Main, Courtyard, Screened Porch with an Additional Detached Garage in back perfect for an RV, In-Law Suite or Office
850 Randall Court
Hardage Farm Beauty with Kennesaw Moutain Views
This 6 bedroom, 4.5 Bath home features a large master on the main, a completely updated kitchen, large deck and completely fenced yard. The basement has a workshop, media room, rec room, 2 bedrooms and a beautiful full bath.
Monday, October 13, 2008
Incredible Pumpkin Trail
Halloween in our favorite time of year! Maybe it's the beautiful weather and the adorable decorations! I don't know-- but we love it!Last week I emailed everyone about the Incredible Pumpkin Trail in downtown Kennesaw. Here is a link to the event: http://www.kennesaw.ga.us/CurrentEvents.asp?EID=522
We went to take a look and I thought I'd share some of the photos I took. It's FUN & it's FREE!
Lending Update from WR Starkey
Market Comment - Week of October 13th, 2008
Mortgage bond prices finished last week lower pushing mortgage interest rates considerably higher. The Federal bailout plan along with an unexpected Fed rate cut dominated almost all headlines as uncertainty loomed and the liquidity crisis continued. Fear gripped the markets, which caused many investors to exit stocks and bonds to head for cash positions. Trading in the financial markets was extremely volatile. The only bright light appeared to be a precipitous decline in oil prices. For the week, interest rates on government and conventional loans rose by over a full discount point.The consumer price index Thursday will be the most important data release this week. The financial markets remain volatile as traders digest the bailout developments. Expect the up and down trading pattern to continue.
Here are the Economic Factors this week:
Columbus Holiday
10/13/08
Consensus Estimate: None
Analysis:Important. Shortened trading week may lead to market volitility when trading resumes Tuesday.
Producer Price Index
10/15/08
Consensus Estimate: Down .3%, Core up .2%
Analysis:Important. A indication of inflationary pressures at the producer level. Lower figures may lead to lower rates.
Retail Sales
10/15/08
Consensus Estimate: Down .4%
Analysis: Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.
Fed "Beige Book"
10/15/08
Consensus Estimate: None
Analysis: Important. This Fed report details current economic conditions across the US. Signs of weakness may lead to lower rates.
Consumer Price Index
10/16/08
Consensus Estimate: Up .1%, Core up .2%
Analysis: Important. A measure of inflation at the consumer level. Lower level may lead to lower rates.
Industrial Production
10/16/08
Consensus Estimate: Down .8%
Analysis: Important. A measure of manufacturing sector strength. Weekness may lead to lower rates.
Capacity Utilization
10/16/08
Consensus Estimate: 78%
Analysis: Important. A figure above 85% is viewed as inflationary. Weekness may lead to lower rates.
Housing Starts
10/17/08
Consensus Estimates: Down 1.7%
Analysis: Important. A measure of housing sector strength. Larger than expected decreases may lead to lower rates.
Fundamental Week
The abundance of fundamental data this week provides a good opportunity for mortgages to improve. If the data shows weakness in the economy with little or no inflationary pressures then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases. However, the data may be completely overshadowed by general financial fears and uncertainties throughout the globe.Mortgage interest rates remain historically favorable. Now is a great time to avoid the uncertainty surrounding continued market volatility.
The abundance of fundamental data this week provides a good opportunity for mortgages to improve. If the data shows weakness in the economy with little or no inflationary pressures then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases. However, the data may be completely overshadowed by general financial fears and uncertainties throughout the globe.Mortgage interest rates remain historically favorable. Now is a great time to avoid the uncertainty surrounding continued market volatility.
This information is provided by WR Starkey Mortgage.
Loan Officers:
Sharon Lintault
David Lowrimore
Welcome to Our Blog!
Welcome to our Real Estate Blog! So call us crazy,but we love what we do. Despite the media and what everyone is saying people still have to buy and sell homes.
Karen and I both come from the hospitality industry. We are service oriented people. It's what makes our team work. We believe in putting our clients needs first. Karen is originally from the Atlanta area, but has also lived in Orlando, FL and Chicago, IL. I am originally from New Orleans and relocated here with my family. We both have a keen understanding of what it's like to relocate and find ourselves in a new city. One of our loves is working with familes who are also going through the relocation process. We take great care of our clients who are moving out of Atlanta and what a daunting task it is to have your house on the market and begin house hunting in another city. It takes a special attention to detail to ensure that our clients know that we are taking great care of their home while they are away. We also love the task of introducing someone to the Metro Atlanta area. We can appreciate how large and overwhelming this city can be to a newcomer. We too were in their shoes and we enjoy showing them all that we love about living here. Our clients are more than just clients. They feel like family and friends!
Karen and I each have 2 children and we have felt the growing pains of an expanding family and all that comes with it. It is so much fun for us to work with buyers and sellers who are needing a new home to fit their needs whether it be a shorter commute, different school district, more space, larger yard, updated kitchen-- you name and we've heard it.
We are starting this blog to share up to date information on the real estate market, financing, things going on around town and anything we find fun and amusing! We hope you enjoy it and think if us when you think of real estate!
Karen and I both come from the hospitality industry. We are service oriented people. It's what makes our team work. We believe in putting our clients needs first. Karen is originally from the Atlanta area, but has also lived in Orlando, FL and Chicago, IL. I am originally from New Orleans and relocated here with my family. We both have a keen understanding of what it's like to relocate and find ourselves in a new city. One of our loves is working with familes who are also going through the relocation process. We take great care of our clients who are moving out of Atlanta and what a daunting task it is to have your house on the market and begin house hunting in another city. It takes a special attention to detail to ensure that our clients know that we are taking great care of their home while they are away. We also love the task of introducing someone to the Metro Atlanta area. We can appreciate how large and overwhelming this city can be to a newcomer. We too were in their shoes and we enjoy showing them all that we love about living here. Our clients are more than just clients. They feel like family and friends!
Karen and I each have 2 children and we have felt the growing pains of an expanding family and all that comes with it. It is so much fun for us to work with buyers and sellers who are needing a new home to fit their needs whether it be a shorter commute, different school district, more space, larger yard, updated kitchen-- you name and we've heard it.
We are starting this blog to share up to date information on the real estate market, financing, things going on around town and anything we find fun and amusing! We hope you enjoy it and think if us when you think of real estate!
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