WASHINGTON (October 20, 2017) — After three straight monthly declines, existing-home sales slightly reversed course in September, but ongoing supply shortages and recent hurricanes muted overall activity and caused sales to fall back on an annual basis, according to the National Association of Realtors®.

September existing-home sales in the Northeast were at an annual rate of 720,000 (unchanged from August), and are now 1.4 percent below a year ago. The median price in the Northeast was $274,100, which is 4.8 percent above September 2016.

In the Midwest, existing-home sales rose 1.6 percent to an annual rate of 1.30 million in September, but are 1.5 percent below a year ago. The median price in the Midwest was $195,800, up 5.4 percent from a year ago.

Existing-home sales in the South slipped 0.9 percent to an annual rate of 2.13 million in September, and are now 2.3 percent lower than a year ago. The median price in the South was $215,100, up 4.6 percent from a year ago.

Existing-home sales in the West increased 3.3 percent to an annual rate of 1.24 million in September (unchanged from a year ago). The median price in the West was $362,700, up 5.0 percent from September 2016. For the full story

Buying or Refinancing a home doesn’t have to be Stressful

With rates so low many have refinanced at least once, even twice.  But there are still many who have not, due to either not wanting to deal with the stress of gathering documents and not sure of qualifying for a loan.  At North Atlantic you receive attentive personalized service
(see what our clients say).

Believe me, it’s a great deal easier with our help and expertise.

The average time to close a loan is about 30 days.  We monitor real time interest rates, which is why our clients are able to access some of the lowest rates available.  We understand the guidelines and know what different lenders can do, which incresaes your opportunities for a fast easy loan with a great rate.

Don’t put it off any longer and start saving with a lower mortgage payment. There are no salesman to speak with only qualified mortgage experts.

For a free consultation,

Call or Email:
John Sauro 
Ph: 877-794-5363 
Email: JohnSauro@Gmail.com

Mortgage Rate Survey

Mortgage applications decreased 4.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 20, 2017. The previous week’s results included an adjustment for the Columbus Day holiday.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.18 percent from 4.14 percent, with points decreasing to 0.42 from 0.44 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to 4.11 percent from 4.13 percent, with points decreasing to 0.24 from 0.32 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.04 percent from 4.00 percent, with points increasing to 0.41 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.48 percent from 3.45 percent, with points decreasing to 0.40 from 0.43 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.29 percent from 3.31 percent, with points increasing to 0.54 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.

Sources: MBA, NAR

The Bond markets soared today while Stocks plunged due to an ugly jobs report and concerns over the Euro debt crisis.  The 3.5% coupon surged 31bp to end at 105.31, an all-time closing high price while the Dow lost 274.88 points or -2.22%.

The 30 Year Conforming Fixed Rate stands at 3.478%- No Points and the 15 Year Conforming Fixed Rate is 2.984%- No Points as I write this.

Technically, Bonds can move higher but prices are overbought. It wont take much to cause Bonds to reverse from these frothy levels, so for short-term transactions, you may want to lock. Longer-term floating.

Bloomberg Interview

Earlier this week John Sauro was on Bloomberg radio with Kathleen Hays discussing the state of the lending markets. Click here for interview http://tinyurl.com/6vjcfxr

Housing News

The Case Shiller Home Price Index sees a modest 0.1% rise in March for the 20-major cities surveyed, down 2.6% for the year. The -2.6% drop year-over-year ending in March is up from the -3.5 decline in February.

The Spring Home Buying season traditionally the busiest time for home sales is shaping up to be the strongest since the crash, as per Reuters report.

Economic News

Consumer Confidence falls to 64.9 in May from the 68.7 reading in April and was the lowest reading since January.

Q1 GDP falls to 1.9% from the initial reading of 2.2%.

Initial Jobless Claims rise 10K to 383K and above the 368K expected.

ADP reports that the private sector added 133K jobs in May, below the 157K expected.

The 10-yr T note Yield falls to 1.44%.

Jobs Report – The US Economy Created 69,000 Jobs in May, Far Less Than the 150,000 Expected; Jobless Rate Rises to 8.2% From 8.1%

Lenders to Re-Price Mortgage Rates higher, as the Mortgage Bond Market was unable to sustain

their lofty prices. The Mortgage Bond is unable to stay above $104.25 level.

Remember, Mortgage rates move in the reverse direction of Bond prices.

I am recommending Locking/Not Floating Rates for the short term.

Mortgage Bonds Closed higher, matching the best closing price ever for the 3.5% coupon.  While the drama in Europe and the weak U.S. Economy could mean more support for Bond prices and lower Mortgage Rates, we cannot ignore that the Bonds are at very lofty levels.  Technically, if Bonds can break above the current ceiling of resistance, we could be looking at a 3.50% 30 year mortgage.  I recommend floating, not locking mortgage rates at this time.  But be ready to pull the trigger, as a reversal can get very ugly.

As reported by the May 4th Kiplinger letter. Expect to see inflation and interest rates above where they are now.  They anticipate inflation to go to 4% from 2% and Mortgage rates for a 30-year fixed to be around 8% by 2020.

Economic News

The Unemployment Rate falls to 8.1% as April Nonfarm payrolls were reported at 115K and February and March numbers were revised higher by 53K.

The Europeon Central Bank leaves rates on hold at 1%.

Core Personal Consumption Expenditure (PCE) inflation data was a tame 0.2% in March, meeting expectations.

Personal Income rose 0.4% above the 0.2% expected.

Personal Spendng rose by 0.3% a bit slower than the 0.5% expected.

With yet another week of volatility, Mortgage Bonds are trying to stabilize above the 50-day Moving Average. Giving Bonds a boost was China reporting their lowest growth in three years and worse than expected quarterly earnings from J.P. Morgan Chase.

Bonds also were helped with news of tame inflation as the Consumer Price Index (CPI) report was in line with estimates.  This mornings  3.50% coupon is currently at $103.38.

I am recommending floating, not locking interest rates at this time.  But be prepared to lock, as any positive economic news can move rates higher.

Economic News

Initial jobless claims increased 13,000 to 380,000 for the week ending April 7. This is the highest level since January, and the second highest for 2012.