FED CUTS RATES .5%

The federal reserve went to work for the consumer, or should I say the borrower. They say this won't make that much of a difference in the Economy, I disagree. Lower interest rates increase buyer's purchase power with homes. They also feed the consumer, now credit cards, Lines of Credit payments and car payments are lower. This will give the consumer more discretionary spending to help revive the economy.

Fed Cuts Rates Half Point To Lowest Level in 4 Years
AP 29 Oct 2008 04:28 PM ET
The Federal Reserve slashed a key interest rate by half a percentage point as it seeks to revive an economy hit by a long list of maladies stemming from the most severe financial crisis in decades. AP
The central bank on Wednesday reduced its target for the federal funds rate, the interest banks charge on overnight loans, to 1 percent, a low last seen in 2003-2004.
read the rest of the story: http://www.cnbc.com/id/27436237

Interest Rates Back Down!

30 Year Conventional Fixed Rate Loan is at 5.75% today! Please call or email me for more information.

Staci McCarville
Prospect Mortgage
480-778-2614
staci.mccarville@prospectmtg.com

Mortgage Interest Rates depend on credit score, loan amount, loan to value ratio, and more. Please call to get a personalized rate quote.

Contrywide Loans to be Modified

I read this article in the republic and wanted to share with everyone. If you have a Countrywide loan, call your lender and see if you can get a loan modification. You don't have to be in foreclosure of trouble to get the modification...Jeff Cameron

Countrywide loans to be modified

13,000 mortgage holders on Ariz. Eligible for program

By J. Craig Anderson
THE ARIZONA REPUBLIC

Thousands of formers Countrywide Financial customers on the brink of foreclosure will be eligible for lower mortgage payments in the coming months, thanks to a settlement agreement.
Borrowers with subprime and other adjustable-rate loans will be eligible for significant loan modifications beginning in December, Arizona Attorney General Terry Goddard’s office said Monday.
The deal requires Bank of America to modify the loans of struggling borrowers to make their homes.
About 13,000 Arizona mortgage holders are eligible for loan modifications under the agreement, said Susan Segal, Goddard’s public-advocacy division chief.

BofA agrees to modify Countrywide mortgages

The modifications would be based on what each borrower can afford, Segal said, and most borrowers would end up with fixed–rate loans. Some also would get a reduction in the loan’s principal, she said.
In cases where foreclosure already has occurred or cannot be prevented, Segal said the borrowers would be eligible for relocation assistance from Bank of America.
A group of attorneys general representing Arizona, Texas, Ohio, Iowa and Washington state, agreed not to pursue any legal action against the former Countrywide based on its “alleged use of deceptive practices in their mortgage lending business.”
“There is no admission of guilt.” Segal said about the agreement.
Still, it could take weeks or months for every eligible borrower to get a loan modification, she said.
Countrywide is supposed to launch the program Dec. 1 but has said it will need about 60 days to prepare.
Segal said the bank has committed to a staff of 3,200 loss mitigation specialist to provide service to all of the affected customers nationwide.
Six other states, including California, have worked out their own loan-modification deals with Countrywide, formerly the nation’s No. 1 sub-prime lender and overall largest mortgage lender, in exchange for dropping consumer-protection lawsuits.
Segal said similar deals with other subprime and “alternative” mortgage lenders should be forthcoming.

How to get help

The Arizona Attorney General’s office suggests that customers of the former Countrywide Financial open all letters pertaining to their mortgage in coming weeks for further information about loan modifications.

They can also call:

Bank of America
(Acquired Countrywide in June)
800-669-6607

Arizona Attorney General Office
602-542-5763

Arizona Foreclosure Help line
877-448-121

NOT WHAT THE REAL ESTATE DOCTOR ORDERED, HIGHER INTEREST RATES

As high oil prices are sending inflation into every aspect of our economy, interest rates tick up. The entry level buyer is driving the recovery efforts in our real estate market and higher rates take away their purchasing power. The reality is that until our market is fully recovered we are going to be dependent on lower rates to bring in first time home buyers and investors. Rates are then tied to inflation which is all about oil.
It is time for the US government to do something about oil prices. These high prices are driven by speculators with no place to make a profit today, so they buy oil. Let's hit on both the supply and demand side. Increase drilling, open markets, but drill smart and keep the environment in mind. Increase incentives for research to lower our dependence on oil. I would love to see a candidate for the President of the United States come out with a 10 year plan to cure our addiction!

Just my opinion,

Jeff Cameron

article on interest rates:
Mortgage Applications Plunge on Soaring Rates
By Reuters 18 Jun 2008 07:04 AM ET
Applications for U.S. home mortgages dropped for the fourth week in the last five as soaring rates on standard, fixed-rate mortgages choked off refinancing opportunities, an industry group said on Wednesday. CNBC.com
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity fell 8.7 percent to 508.4 in the week ended June 13.
The MBA's seasonally adjusted index of refinancing applications tumbled last week by 15 percent to 1,378.6 -- its lowest since July 2006.
The gauge of loan requests for home purchases declined 4.3 percent to 360.2.
Fixed 30-year mortgage rates averaged 6.57 percent in the week, up 33 basis points from the prior week and the highest since July 2007.http://www.cnbc.com/id/25237087

Rates

30 year fixed 6.125%
15 year fixed 5.5%
5 year ARM 5.125%

FHA 30 year fixed 6.25%

Jumbo 30 year fixed 7.625%

Rates change often. Please call to get your personalized rate quote.

Staci McCarville
Indymac Bank
480-538-1402

Mortgage Rates

30 year fixed 6%
20 year fixed 5.875%
15 year fixed 5.5%
5 year ARM 5.25%

FHA 6.125%

Jumbo 30 year fixed 7.5%

Interest rates change many times a day and depend on many factors. Please call for a rate customized for your needs.

Staci McCarville
Indymac Bank
480-538-1402

Rates!

5.75% - 30 year fixed
5.25% - 15 year fixed
5.25% - 5 year ARM (same for Interest Only)

7.375% - Jumbo 30 year fixed (no points or origination fees)

6% FHA 30 year fixed

Rates change often. Please call or email me for a customized quote.

Happy Memorial Day!

Staci McCarville
Branch Manager
Indymac Bank
480-538-1402
staci.mccarville@imb.com

Rates

30 Year Fixed 5.75%
5 Year ARM 5.25%
FHA 6%

Rates a couple of times a day. Please call for more information.

Staci McCarville
Indymac Bank
480-538-1402

Today's Rates!

Conventional
30 Year fixed 5.5%
40 Year fixed 6.125%
15 Year fixed 5.25%
7 Year ARM 5.375% (Interest Only same rate)

Jumbo 5 Year ARM 6.25%

FHA 30 year fixed 5.5%

All of these rates are quoted with 1% origination fee and $787 in lender costs. Rates can change a few times a day.

Please call for more information on our Indymac Bank Owned Properties!
Staci McCarville 480-538-1402

MARCH JOB LOSSES TOTAL 80,000

The nation's jobs report is out and it is a negative number. But let's face it. We know we are in a recession. Therefore, losses of 80,000 jobs is not huge. Plus they restated the numbers for the first 2 months of this year and there were 33,000 less jobs lost earlier this year. Therefore, the net loss is 47,000 jobs. Don't get me wrong, if those jobs are your job, this is serious. But overall, the number was less than expected. Maybe this recession will be milder than expected. Only time will tell.

Economy Loses 80,000 Jobs, Worse Than Expected

By Reuters 04 Apr 2008 08:32 AM ET

US employers cut payrolls for a third month in a row in March, slashing 80,000 jobs for the biggest monthly job decline in five years as the economy headed into a downturn, government data on Friday showed.
CNBC.com
The Labor Department revised the first two months of the year's job losses to a total of 52,000 from a previous estimate of 85,000. The March unemployment rate jumped to 5.1 percent from 4.8 percent, the highest since a matching rate in September 2005.
The March job report was more bleak than expected.
Economists polled ahead of the report forecast a decline of 60,000 in non-farm payrolls and a rise in the unemployment rate to 5 percent.
Read the rest of the story: http://www.cnbc.com/id/23952640

FED SLASHES FED FUNDS RATE BY 3/4%

We didn't get the full point, but I will take 3/4%. Lowers my payments! Let's hope this starts to stimulate the real estate market and brings liquidity to the financial markets!


Fed Lowers Rates 3/4 Point, Fueling Huge Stock Rally
By Reuters 18 Mar 2008 02:19 PM ET

The Federal Reserve slashed a key U.S. interest rate by three-quarters of a percentage point, but Wall Street didn't seem to care that the cut was smaller than many had expected.
After initially pulling back from a morning rally, stocks resumed climbing and ended sharply higher.
CNBC.com
The Fed's action, taken on an 8-2 vote of its policy committee, took the bellwether federal funds rate down to 2.25 percent, the lowest since February 2005. Financial markets had largely priced in a full point reduction.
"Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth overthe next few quarters," the central bank said in a statement outlining its decision. (Click here to read the full statement.)
The Fed also said downside risks to economic growth remained even in the wake of the rate cut, suggesting an openness to a further lowering of borrowing costs if needed. http://www.cnbc.com/id/23691022

FEDERAL RESERVE REACTS TO CREDIT CRISIS, PUMPS $200 BILLION INTO SYSTEM

The reaction to the Margin Calls last week had put tremendous pressure on the financial markets and the Federal Reserve just stepped up to ease the pressure. So far, the stock market is happy. Stocks are up over 2%. Is this a knee jerk reaction or will the market continue up?? It is always interesting to see how the markets react over time.

Hopefully this will bring interest rates back down. However, the bond market it getting killed today. Which typically brings rates up, however, interest rates are not fully linked to the bond market. Where the 10 note was you would expect mortgage rates as low as 5%.

This often bothers me. Mortgage rates don't always follow the bond rates down, but they seem to always follow bond rates up. Let's see what happens today???

Here is the AP report:
Fed Offers More Help to Banks
By JEANNINE AVERSA,
AP
Posted: 2008-03-11 09:31:41
Filed Under: Banking
WASHINGTON (March 11) - The Federal Reserve on Tuesday announced it is ramping up efforts to provide more relief to cash-strapped financial institutions, a coordinated action with other central banks aimed at easing a global credit crises that threatens to push the U.S. economy into its first recession since 2001. The Fed said it will make up to $200 billion in cash available to cash-strapped financial institutions. "Pressures in some of these markets have recently increased again," the Fed said in a statement. "We all continue to work together and will take appropriate steps to address those liquidity pressures." The other banks involved are the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank. In addition, the Fed has authorized increases in existing programs called "swap lines" with the European Central Bank and the Swiss National Bank "These arrangements will now provide dollars in amounts of up to $30 billion and $6 billion to the ECB and the SNB respectively," the Fed said, extending the term of these swap lines through Sept. 30.
Read the full report at this link: http://money.aol.com/news/articles/_a/fed-offers-more-help-to-banks/20080311093009990001