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Let’s start by taking a look at the positive…

• The credit market appears to be gaining some liquidity via the government injection and banks are finally beginning to lend to each other
• Oil, commodity prices and inflation are taming while the US Dollar is strengthening
• All eyes are on the best and wealthiest US investors as they continue to invest heavily in battered and beaten stocks with good fundamentals.

Can we learn anything???

Items that are still of concern…

• Most of the economic reports released have shown economic weakness
• Real estate sales have been soft and institutional investors are still nervous about their “collateral”
• The outcome of the 2008 Presidential Election

Contact Nate Lindsey for all your mortgage needs at (714) 394-0506

Contact Sandra Carlisle at (949) 500-0482 for all your real estate needs.

Market Commentary (Tuesday, August 20th, 2008)

This week, Nate highlights the terms of the new $7,500 Buyer Tax Credit being offered by the IRS.  Detailed information can be obtained at www.federalhousingtaxcredit.com. 

• The tax credit is available to first time home buyers only (those who haven’t owned a home in the most recent 3 years)
• The tax credit is 10% of the purchase price or a maximum of $7,500
• The credit is available on homes purchased after April 9th, 2008 and before July 1st, 2009
• Single tax payers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
• The tax credit works as an interest free loan payable to the US Government over 15 years ($500 annually), but the buyer receives up to $7,500 next year in one lump sum!

For all your mortgage needs, call Nate Lindsey at (714) 394-0506.  For all your real estate needs, contact Sandra Carlisle at (949) 500-0482.

Market Commentary (Week of Monday, June 30th, 2008):

This week has several high impact reports scheduled for release.  Let’s take a look.  The Chicago PMI (known as the business barometer) was released today and indicated an index of 49.6, which was better than expectations of 48.0.  The market had little response to this figure this morning because although it was higher than expectations, when the index is below 50.00 it indicates factory contraction.  The ISM index is due for release tomorrow and this index is considered the single best index for the manufacturing factory sector.  We are expecting a number under 50.00 as well, which would indicate contraction in the manufacturing sector.  Employment data is scheduled for release on Wednesday and Thursday and these are also very high impact reports for the mortgage environment.  At this moment in time, I would suggest that clients float their interest rate lock and watch for improvement.  Of course, it is important for us to stay watchful and lock your rate should the market deteriorate.

 - Nate Lindsey

Bankers Funding

For more information on which lending program is right for you, please contact Nate at (714) 394-0506 or send an email to nathan.j.lindsey@bankersfundingcompany.com. 

For all your real estate needs, contact Sandra Carlisle at (949) 500-0482 or by email to SandraCarlisle@firstteam.com. 

Market Commentary (Friday, June 27th, 2008):

This week proved to be a very exciting week in the mortgage world.  As we suspected, the Federal Reserve Bank kept it’s benchmark rate the same and signaled that rate cuts were over.  The Fed will now keep a careful watch on controlling inflation and it is likely we will see an interest rate hike sometime in the next 6 months.  Their favorite measure of inflation was reported today (Core PCE) slightly below expectations, which has helped the market to rally today.  The stock market has been downright ugly and the DOW is poised for it’s worst June since the Great Depression.  Normally this would mean good news for mortgage rates, but inflation has kept any major rally in check.  The University of Michigan’s consumer sentiment index fell to it’s worst reading since 1980 and the third worst level since it’s inception in 1956.  Let’s carefully watch mortgage bond prices to see if they can recoup some of their losses this month and retain to a more desirable level.  For now I recommend floating with a cautious approach.  All buyers should be prepared to lock at a moment’s notice as the market is still very volatile.

 - Nate Lindsey

*** Nate can be reached at (714) 394-0506 or by email at Nathaniel.J.Lindsey@bankersfundingcompany.com. 

Market Comentary (Tuesday, June 10th, 2008):

Inflation fears continue to grip the mortgage and bond markets as rates move higher.  This week there are several important economic reports for release; for example, the retail sales report is a heavy impact report due for release on Thursday and the CPI report is a heavy impact report due for release on Friday.  Mortgage rates have worsened by .25% since last Friday and continue to look for a new level of support.  Interim fixed and pure variable financing continues to be offered at very attractive rates and fixed rate loans, although higher right now, are still at historically low levels.

Fannie Mae and Freddie Mac have injected a lot of liquidity into the mortgage market for loans at or below $729,750.  If you are buying at or below $1.5 million or so, there are terrific opportunities to pair a new conforming 5/1 ARM or 30 year fixed with a HELOC priced at PRIME minus 1.625% (or, 3.375% rate).  Also, FHA remains very attractive for clients purchasing 1-4 unit homes with little money down.  Remember, the 3% down payment can be entirely gifted or provided by the seller and FHA allows non-occupant co-signors.

Even in today’s tough real estate and mortgage environment, we are still closing deals quickly and making doors open!

 - Nate Lindsey

Nate can be reached by email at nathanial.j.lindsey@bankersfundingcompany.com or by phone at (714) 394-0506.

Thinking about buying or selling your Orange County home?  Contact Sandra Carlisle at (949) 500-0482 or by email at SandraCarlisle@firstteam.com. 

According to my favorite lender, Nate Lindsey, high limit (loans up to $729,750) conforming loans have finally had a drop in interest rates!  The rates are now very close to the current conforming loans.  Buyers, you can now save even more on your payments!

Click on the following link for examples of loan programs that are conforming, high conforming and super jumbo as well as a great testimonial from someone other than me about Nate!

Nate’s Weekend Rate & Market Review 05/08.2008

For more information on buying a home in Newport Beach and taking advantage of the current buyer’s market, contact Sandra Carlisle at (949) 500-0482.

Market Commentary (April 10th, 2008)

Mortgage rates were slightly lower last week as portions of the debt market improved from increased liquidity in the capital markets.  There still remains a fairly wide disparity between  conforming fixed rate loans and jumbo loans.  Please recall, the HR 5140 bill that raises conforming high limit loans to $729,750 in Orange and Los Angeles County and other select areas has provided some relief for otherwise jumbo borrowers.  The current high limit conforming loan rates are situated between the conforming rates and more expensive jumbo debt.  There are not many big impact reports scheduled for release this week, so we will keep our eyes on the stock market and the few economic reports being released.

CONFORMING UP TO $417,000

• 30 YR Fixed  5.500%
• 15 YR Fixed  5.000%
• 5/1 ARM I/O  5.250%
• 7/1 ARM I/O  5.375%

HIGH CONFORMING TO $729,750

• 30 YR Fixed  6.000%
• 15 YR Fixed  5.500%
• 5/1 ARM I/O 5.625%
• Pay Option  2.750%

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