Buying a House in Raleigh NC

Raleigh NC Real Estate Market Update

Friday, August 26th, 2011

Despite a volatile back-drop, mortgage rates continue to hover near all-time lows.
Monday’s offerings are little changed from Friday (in some cases, not at all), with BestExecution Mortgage Rates remaining at the same levels and only minor differences seen in Home Loan Borrowing Costs. Given the chart we posted on Friday, you can see why we say that it continues to be a fantastic time to refinance. Take a look at Friday’s chart HERE.
CURRENT MARKET*: The Best Execution 30-year fixed mortgage rate is 4.125%. Several lenders are willing to offer 4.000% and even 3.875% is possible for those interested in buying down their rate. 4.250% is widely-available. On FHA/VA 30 year fixed Best Execution is 4.000%, but 3.875% and even 3.750% are available with additional closing costs. 15 year fixed conventional loans are best priced at 3.625% but we’re seeing aggressive quotes as low as 3.375%. Five year ARMs are still best priced at 3.25. ARMs seem to have bottomed out.
GUIDANCE: If you missed the boat on record low mortgage rates last November/October, the opportunity is still out there for the taking. And we think you should jump on it as soon as possible. The risks involved in floating have greatly expanded to include (1) lenders taking it upon themselves to negatively adjust rate sheets (to slow loan production) and (2) interest rates finding a bottom and moving higher on their own. The frustration of missing out on “high 3′s” and instead getting “low 4′s” seems nowhere near as bad as the frustration of missing out on a refi opportunity (moving from 5% to 4.25% for instance) altogether.
MORE GUIDANCE: Refi Roadmap: A Locked Rate Isn’t a Closed Loan<http://www.mortgagenewsdaily.com/consumer_rates/224712.aspx> <– must read
—————————-
*Best Execution is the most cost efficient combination of note rate offered and points paid at closing. This note rate is determined based on the time it takes to recover the points you paid at closing (discount) vs. the monthly savings of permanently buying down your mortgage rate by 0.125%. When deciding on whether or not to pay points, the borrower must have an idea of how long they intend to keep their mortgage. For more info, ask you originator to explain the findings of their “breakeven analysis” on your permanent rate buy down costs.
*Important Mortgage Rate Disclaimer: The Best Execution loan pricing quotes shared above are generally seen as the more aggressive side of the primary mortgage market. Loan originators will only be able to offer these rates on conforming loan amounts to very well-qualified borrowers who have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the “perfect borrower” category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive.”No point” loan doesn’t mean “no cost” loan. The best 30year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recording. Don’t forget the fiscal frisking that comes along with the underwriting process
CAUTION: MND guidance is speculative in nature. We don’t have a crystal ball, we can’t predict the future, we can only share our outlook. Making the following considerations extra important……………………

What MUST be considered BEFORE one thinks about capitalizing on a rates rally?

1. WHAT DO YOU NEED? Rates might not rally as much as you want/need.
2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you want/need.
3. HOW DO YOU HANDLE STRESS? Are you ready to make tough decisions?
View Article:http://www.mortgagenewsdaily.com/consumer_rates/225777.aspx<http://www.mortgagenewsdaily.com/consumer_rates/225777.aspx#%7Buname=hpage%7D>
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Economic Development May Recap in Raleigh, NC

Monday, June 20th, 2011

Holy Cow Branding | Other | Expanding
After expanding its ranks and clientele base in late 2010 and early 2011, Holy Cow Branding has implemented plans to continue growth by creating a data division through a merger with Rg-Analytics. The merger of the two companies, which occurred on April 1, will allow Holy Cow Branding to bolster its unique brand strategy offerings with enhanced data analytics. Because of the merger and the recent addition of new personnel, Holy Cow Branding has outgrown its former offices in Cary and has moved its base of operations to a new, larger office space on Glenwood Avenue.

Lenovo | Software/IT | Expanding
Lenovo is adding 300 people to its Triangle workforce in order to support its growing global customer base. The company plans to add 50 jobs at the multi-building campus in Morrisville and has signed a deal with Affiliated Computer Services to provide 250 customer support representatives.

Media Two Interactive | Software/IT | Expanding
Media Two Interactive, an advertising agency, expanded its offices in downtown Raleigh to include the entire second floor of the current office space on Martin Street. In addition, four members have joined the existing management team as Media Two Interactive continues to grow. Media Two Interactive has added 3,500 square feet, which now brings the total leased square footage to just more than 13,000 square feet.

SciQuest Inc. | Software/IT | Expanding
SciQuest Inc., a Cary company, is hiring in the Triangle area, now employing about 240 people and expecting to hire more in coming months. SciQuest Inc. sells e-procurement technology that allows drug makers, universities, government agencies, and others to buy products and services more cheaply online. The company now has more than 300 customers.

Trade Shows & Recruitment:

* More than 220 people attended Wake County Economic Development’s annual Economic Development Forum at the Raleigh Marriott City Center on May 10. The 2011 forum focused on the global and local economic climate. Jacob Oubina, a senior U.S. economist with RBC Capital Markets in New York, provided attendees with a vibrant outlook on the rest of 2011. After Oubina’s presentation local panelists from a variety of markets analyzed his remarks and related them specifically to the Triangle area.

* Wayne Watkins, project manager for Wake County Economic Development, attended the LOGIN conference May 16 – 18 in Seattle, Wash. LOGIN brings together a mix of industry leaders to discuss, collaborate, and share advancements about technology, design, business, community, and legal areas of online game development. While in Seattle, Watkins held 13 one-on-one meetings with quality contacts from game development industry. This was a fantastic opportunity to learn more about what is happening in a national hot-bed of game development, as well as promote the good things going on in the Triangle and North Carolina.

* Raleigh Economic Development Director James Sauls attended the 2011 National Solar Conference at the Raleigh Convention Center May 17 – 21. The National Solar Conference is the longest-running educational event for solar energy professionals in the U.S. Sauls exhibited at the conference promoting the developments that Raleigh and Wake County have made in the industry.

Marketing Initiatives:

* Delta Sky Magazine will focus on why companies and people should visit and move to Raleigh-Durham in its July 2011 issue. The magazine will reach more than 14 million people through Delta Air Lines’ 13,000 daily flights, the Delta website, and in select bookstores throughout the United States and Canada.

* Business North Carolina Magazine will feature Wake County in the August 2011 issue. Wake County will be part of a special county report that highlights economic development activity taking place across the state of North Carolina. Wake County Economic Development is leveraging the opportunity to talk about some of the emerging technology clusters such as interactive digital media, defense technologies and smart grid.

* Area Development Magazine named Raleigh as one of the 100 leading locations. Raleigh earned this recognition due to the number of highly ranked accolades awarded over the past year. North Carolina was also awarded the Silver Shovel Award that recognizes states for achievements in attracting high-value investment projects that will create a significant number of new jobs in their communities. The EMC Project in Wake County contributed to North Carolina winning this award.

Recent Accolades:

For a full list of accolades please visit www.raleigh-wake.org.
* #1 Metro for IT Labor Force (Raleigh-Durham, NC) KLG Advisors
* #4 Metro for IT Grad Output (Raleigh-Durham, NC) KLG Advisors
* #10 State for Long Term Economic Growth (North Carolina) American City Business Journals
* #7 Best Place to Buy a Home Right Now (Raleigh, NC) Zillow.com
* #2 Business Climate (North Carolina) Chief Executive Magazine
* #4 Economic Development Success in 2010 (North Carolina) Site Selection Magazine

Activity Comparison:

[May]

Labor Market Statistics:

Wake County

April
2010

April
2011

Year to Date Change

Labor Force

458,459

454,226

-4,223

Employed

418,860

420,288

+1,428

Unemployed

39,599

33,938

- 5,661

Rate

8.6%

7.5%

- 1.1%

Source: North Carolina Employment Security Commission

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FALLS OFFICE MORTGAGE CENTER MARKET UPDATE

Monday, June 13th, 2011

After taking a brief breather early in the week, home loan borrowing costs have resumed their rally. With today’s loan pricing improvements, conventional 30-year fixed mortgage rates are teetering on another shift lower in “Best Execution”. CURRENT MARKET: The “Best Execution” conventional 30-year fixed mortgage rate is 4.50%. Aggressive 4.375% quotes have been reported but may involve increased closing costs in the form of origination fees. This could be worth it to applicants who plan to keep their new mortgage outstanding for long enough to breakeven on the extra upfront costs. On FHA/VA 30 year fixed “Best Execution” is 4.25%. 15 year fixed conventional loans are best priced at 3.75%. Five year ARMs are best priced at 3.125% but the ARM market is more stratified and there is more variation in what will be “Best-Execution” depending on your individual scenario. GUIDANCE: With “The Wall”http://www.mortgagenewsdaily.com/consumer_rates/214432.aspx now torn down a path has been paved for mortgage rates to continue on the path toward more improvements. An extended rally will not come without setbacks though. Short-term corrections are to be expected along the way. That means borrowers working on a shorter lock/float timeline should remain defensive. Your main goal is to protect new, lower rate quotes from short-term market fluctuations. The overall bullish trend is still very much intact though. Intermediate to longer-term scenarios are more than justified in floating. What MUST be considered BEFORE one thinks about capitalizing on a rates rally? 1. WHAT DO YOU NEED? Rates might not rally as much as you want/need. 2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you want/need. 3. HOW DO YOU HANDLE STRESS? Are you ready to make tough decisions? —————————- “Best Execution” is the most cost efficient combination of note rate offered and points paid at closing. This note rate is determined based on the time it takes to recover the points you paid at closing (discount) vs. the monthly savings of permanently buying down your mortgage rate by 0.125%. When deciding on whether or not to pay points, the borrower must have an idea of how long they intend to keep their mortgage. For more info, ask you originator to explain the findings of their “breakeven analysis” on your permanent rate buy down costs. Important Mortgage Rate Disclaimer: The “Best Execution” loan pricing quotes shared above are generally seen as the more aggressive side of the primary mortgage market. Loan originators will only be able to offer these rates on conforming loan amounts to very well-qualified borrowers who have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the “perfect borrower” category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. “No point” loan doesn’t mean “no cost” loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recording. Don’t forget the fiscal frisking that comes along with the underwriting process. View Article: http://www.mortgagenewsdaily.com/consumer_rates/215053.aspxhttp://www.mortgagenewsdaily.com/consumer_rates/215053.aspx#{uname=hpage} ________________________________ If you would like to opt-out of receiving email forwards from this person please click here to remove your email addresshttp://www.mortgagenewsdaily.com/channels/unsubscribeforward.aspx. Forward this email: Send a copy of this storyhttp://www.mortgagenewsdaily.com/channels/215053/2/forward.aspx to someone you know that may want to read it. [Fm Lending_web.jpg] Hugh W. Page, M.B.A.http://www.mortgagenewsdaily.com/members/hpage/default.aspx Senior Mortgage Consultant, NMLS# 93420http://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/93420 (919) 874-7557 Direct (919) 595-9707 eFax hpage@fmlending.com www.fallsofficeloans.com

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Falls Office Mortgage Center Market Update

Friday, June 3rd, 2011

Employment Situation Disappoints. Mortgages Rally

Friday, June 03, 2011 9:02 AM
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You can exhale. Jobs data was even weaker than recently downgraded forecasts. Bonds are rallying, recovering almost all of yesterday’s sell-off already….

(Reuters) -Employment growth brakes sharply in May:http://www.reuters.com/article/2011/06/03/us-usa-economy-idUSTRE7492P720110603 Employment rose far less than expected in May to record its weakest reading since September, while the jobless rate rose to 9.1 percent as high energy prices and the effects of Japan’s earthquake bogged down the economy. Nonfarm payrolls increased 54,000 last month, the Labor Department said on Friday, with private employment rising 83,000, the least amount since June. Government payrolls dropped 29,000. Economists polled by Reuters had expected payrolls to rise 150,000 and private hiring to increase 175,000 in May. The government revised employment figures for March and April to show 39,000 fewer jobs created than previously estimated. The job creation slowdown confirmed the economic weakness already flagged by other data from consumer spending to manufacturing. It could stoke fears about the depth and duration of a slowdown that started early in the year. The Labor Department said severe weather last month, including tornadoes and flooding, in the Midwest and the South did not materially affect data collection. It also said that while some workers in those regions may have been temporarily displaced from their jobs, it found “no clear impact of the disasters on the national employment and unemployment data for May.” Economists still believe the lull in activity will be temporary. They cite high gasoline prices, bad weather and disruptions to motor vehicle production because of a shortage of parts from Japan as factors weighing on growth.

[http://i.mortgagenewsdaily.com/cfs-file.ashx/__key/CommunityServer.Components.UserFiles/00.00.03.44.60/6_5F00_3-NONFARM-PAYROLLS.PNG]

Plain and Simple: Payroll growth in May was way-weaker than expected at +54,000 jobs. April was revised worse by 12,000 jobs and March was reduced by 27,000 positions. The unemployment rate rose to 9.1% as the labor participation rate was unchanged and the number of people who said they were now “employed” was less than the number of people who said they were “unemployed” in the household survey (BETTER EXPLANATION).http://www.mortgagenewsdaily.com/mortgage_rates/blog/193300.aspx Here is the ugliest stat of all: The number of people who’ve been jobless for longer than 27 weeks increased by 361,000 to 6.2 million, which equates to 45.1% of the unemployed. That said, it’s easy to see why economists are slashing their 1st and 2nd quarter GDP projections. We needed at least 200,000 jobs created every month just to reach 3% GDP projections, five months into 2011 the economy is only averaging 156,600. There were a few bright spots though. Folks who have jobs in private industry saw their hourly earnings rise by 0.3% and the work-week extended by 0.1 hours. More hours at a higher wage = better weekly earnings to offset rising food and energy costs. Last but not least, the labor force grew by 272,000. This implies people are re-entering the jobs market because they believe they might have a better chance at finding work. Could just be college kids coming home from school though.

Market Reaction..

Loan pricing will improve today after bond markets reacted favorably to weak labor market data this morning.”Rate sheet influential” MBS coupons are +11/32 at 101-05, recovering a big chunk of the price declines experienced yesterday. The move in mortgages is being led by a flattening yield curve, benchmark TSYs have broken back into the 2.00% handle. 10s are currently +18/32 at 101-12 yielding 2.966% (-6.6bps). Stocks are getting punished in the process. S&P futures are -1.00% at 1299.50. S&Ps haven’t been this low since April 18th.

Based on this reaction loan pricing should improve by 25 to 35 bps.

[http://i.mortgagenewsdaily.com/cfs-file.ashx/__key/CommunityServer.Components.UserFiles/00.00.03.44.60/6_5F00_3-FNCL40-MORNING.PNG]

THE BOND MARKET IS REPEATING HISTORY!http://www.mortgagenewsdaily.com/mortgage_rates/blog/214035.aspx <—MUST READ

View Article:http://www.mortgagenewsdaily.com/mortgage_rates/blog/214354.aspxhttp://www.mortgagenewsdaily.com/mortgage_rates/blog/214354.aspx#{uname=hpage}

Tags: Buying a Home in Raleigh NC, Buying a House in Raleigh NC, Homes for Sale in Raleigh NC, Mortgage Rates in Raleigh NC, Raleigh Mortgage Rates, Raleigh Mortgages, Raleigh Real Estate Market, Selling a House in Raleigh NC
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Mortgage Market Update

Wednesday, May 25th, 2011

Please forward my contact information to anyone you know with a need for real estate financing!

The price of mortgage bonds rose last week pushing mortgage rates a little lower. Rates now sit at levels not seen since November of last year. It’s nice that this dip is coinciding with an increase in local real estate activity. My sources report that showings have increased and buyers have begun “pulling the trigger.”

The reins on mortgage programs may be beginning to loosen as well. Several private mortgage insurance companies are removing several areas off their declining value lists and gradually reducing the price of premiums. Jumbo parameters, while still tight, are being expanded as well. Slowly but surely it seems we are improving.

This week we’ll get a report on PCE inflation. The Fed has begun taken a closer look at this number as their primary gauge of inflation instead of the CPI number. Why? PCE has a component that measures health care spending by businesses for employees and their families. We all know health care costs have been rising for a while. The two biggest detriments to the continued improvement of the housing market are inflation and foreclosures which erode the value of homes.

In addition to Friday’s PCE inflation report, we’ll see New Homes Sales on Tuesday, Durable Goods on Wednesday, Q1 Revised GDP and Weekly Jobless Claims on Thursday with Personal Income and Outlays and Michigan Consumer Sentiment finishing up the week on Friday. Also, the Treasury will auction off 2,5 and 7 year notes Tuesday, Wednesday and Thursday. Overall a pretty busy week for economic reports ahead of the Memorial Day weekend.

A mortgage pre-qualification is where a lender takes a loan application, pulls a credit report and runs the loan through an AUS system to get a computer approval. A mortgage pre-approval is all of the above PLUS obtaining the supporting documentation from the buyer AND having the loan underwritten by a human underwriter. A full pre-approval is 97% as effective as a cash offer. We are more than happy to take all these steps and issue a pre-approval letter we will stand behind.
[cid:image006.jpg@01CC1930.83732DB0][cid:image007.jpg@01CC1930.83732DB0][cid:image008.jpg@01CC1930.83732DB0][cid:image009.jpg@01CC1930.83732DB0]
These are a couple of the sunsets we saw on my recent vacation…..

Have a great week and let me know how I can be of service to you!

Join Qnanza for Free Now!http://www.jointheqclub.com/patrickwynn

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FALLS OFFICE MORTGAGE CENTER MARKET UPDATE

Monday, May 2nd, 2011

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Home loan borrowing costs ended the week near their most aggressive
levels of the year.

The chart below illustrates how borrowing costs have behaved with
respect to various mortgage note rates. If the line is moving up, the
closing costs associated with that note rate are rising, if the line is
moving down, the closing costs associated with that note rate are
falling. Notice the line has been moving lower since early April. Right
now borrowing costs are about as aggressive as they’ve been in 2011.

Best-Execution mortgage rates could be considered “in the process of” a
shift lower. This doesn’t mean all lenders are willing to quote lower
Best Execution mortgage rates, but a few are offering “below current
market” deals right now because the primary mortgage market is
highly-competitive.

CURRENT MARKET: The “Best Execution” conventional 30-year fixed mortgage
rate is 4.875%. If you are looking to move down to 4.75%, this offer
carries higher closing costs but could be worth it to applicants who
plan on keeping their new mortgage outstanding for longer than the next
10 years. Some lenders are pricing loans more aggressively because
competition is tight, so scattered sightings of 4.75% BestEx are
possible, but not on a wide-spread basis. Ask your loan officer to run a
break-even analysis on any origination points they might require to
cover permanent float down fees. On FHA/VA 30 year fixed “Best
Execution” is still 4.75%. 15 year fixed conventional loans are best
priced at 4.25%. Five year ARMs are still seen best priced at 3.50% but
the ARM market is more stratified and there is more variation in what
will be “Best-Execution” depending on your individual scenario.

PREVIOUS GUIDANCE: Before the Fed Announcement we said “if you have the
flexibility to wait until Thursday morning to see how rates fared,
that’s allowable if not advisable due to limited possible gains.” The
gains indeed turned out to be limited. But perhaps we saw the early
signs of a new, lower Best-Ex rate offering today. Thing is, we’re going
to be bouncing up and down a bit in the weeks between now and the end of
June, so the only way to approach is either automatically favor locking
to avoid risk, or wait around until you think rates confirm a bottom.
And if you think they’ve already bottom, today, rates are at or below
their best levels in recent months. If you floated through the
high-risk FOMC event, you’ve saved some money. If you think you can save
more, better read the rules below…

CURRENT GUIDANCE: Today’s chart should go a long way in helping short
term floaters decide whether or not rates have confirmed a bottom.
Without saying anything about the longer term possibilities, the short
term outlook becomes much more lock-biased when borrowing costs are at
or near their lowest levels and with a large gap lower to the next range
of historical costs. As good as it gets? There’s no way to know, but
in terms of probability, seeing significant improvements in closing
costs or rates is unlikely in the upcoming week. But the bottom line is
really this: a few weeks ago, after the bond market began bouncing back
from its worst recent levels, we shifted our guidance to allow for a bit
more risk. Today is the opposite, we’re decreasing our level of risk
tolerance at these levels, but with the caveat that we continue
entertain the possibility of further improvements in the longer run. If
you think you can save more, better read the rules below…

What MUST be considered BEFORE one thinks about capitalizing on a rates
rally?

READ MORE ABOUT THE BARRIER IN BEST EXECUTION
http://www.mortgagenewsdaily.com/consumer_rates/208606.aspx

FOMC RECAP
http://www.mortgagenewsdaily.com/mortgage_rates/blog/209135.aspx

—————————-

*”Best Execution” is the most efficient combination of note rate offered
and points paid at closing. This note rate is determined based on the
time it takes to recover the points you paid at closing (discount) vs.
the monthly savings of permanently buying down your mortgage rate by
0.125%. When deciding on whether or not to pay points, the borrower
must have an idea of how long they intend to keep their mortgage. For
more info, ask you originator to explain the findings of their
“breakeven analysis” on your permanent rate buy down costs.

Important Mortgage Rate Disclaimer: The “Best Execution” loan pricing
quotes shared above are generally seen as the more aggressive side of
the primary mortgage market. Loan originators will only be able to offer
these rates on conforming loan amounts to very well-qualified borrowers
who have a middle FICO score over 740 and enough equity in their home to
qualify for a refinance or a large enough savings to cover their down
payment and closing costs. If the terms of your loan trigger any
risk-based loan level pricing adjustments (LLPAs), your rate quote will
be higher. If you do not fall into the “perfect borrower” category, make
sure you ask your loan originator for an explanation of the
characteristics that make your loan more expensive. “No point” loan
doesn’t mean “no cost” loan. The best 30 year fixed conventional/FHA/VA
mortgage rates still include closing costs such as: third party fees +
title charges + transfer and recording. Don’t forget the fiscal frisking
that comes along with the underwriting process.

View Article:
http://www.mortgagenewsdaily.com/consumer_rates/209544.aspx
<http://www.mortgagenewsdaily.com/consumer_rates/209544.aspx#{uname=hpag
e}>

Tags: Buying a Home in Raleigh NC, Buying a House in Raleigh NC, First Time Home Buyers in Raleigh NC, Housing Market in Raleigh NC, Mortgage Rates in Raleigh NC, Raleigh Housing Market, Raleigh Mortgages, Raleigh Real Estate Market
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NC Bill Introduced for new Homebuyer Tax Credit!!

Tuesday, April 5th, 2011

The North Carolina Home Builders Association is pleased to announce that
a bill creating a $10,000 state tax credit to North Carolina taxpayers
who purchase a new home was introduced today in the N.C. House of
Representatives.

House Bill 485 would allow taxpayers to take a maximum credit of $2,000
per year over the next five years against tax liability owed to the
state. To achieve the maximum stimulus effect and create the maximum
number of jobs, the tax credit would be available only for a new home
constructed on or after July 1, 2011, or for a new home construction
contract entered into on or after that date. The credit would expire
June 30, 2012. A total allocation of $100 million is being sought to
provide 10,000 taxpayers with the opportunity to purchase a new home
utilizing this credit. However, the state needs only to allocate $20
million per year over the next five years to fully fund this credit.

“While enactment of this legislation remains a long shot given the
state’s record budget shortfall, our legislative team has been working
very hard for several months to provide this important stimulus for our
members and the state of North Carolina,” said Mike Carpenter, NCHBA’s
Executive Vice President and General Counsel. “We realize how critical a
housing recovery is to our state’s economy and our industry. This is our
top legislative priority for this session and, given the current
condition of our industry, perhaps it is our top priority ever. We will
continue to work each day to try to get this critical program enacted.”
HB 485, New Home Purchase Stimulus, was introduced by Former House
Speaker Harold Brubaker (R-Randolph), Principal Chair of the House
Appropriations Committee, along with his three committee co-chairs, Rep.
Mitch Gillespie (R-McDowell), Rep. Linda Johnson (R-Cabarrus) and Rep.
Jeff Barnhart (R-Cabarrus). An identical Senate bill will be introduced
later this week by Sen. Tom Apodaca (R-Henderson), Chairman of the
Senate Rules Committee.

“We are delighted that these members have stepped forward in support of
a strong stimulus for job creation in our industry,” Carpenter said. “I
am also pleased to report that we are receiving bi-partisan support in
the form of co-sponsors for this legislation.” The tax credit proposal
will create 16,199 new jobs (14,727 related to construction spending and
1,472 related to direct consumer spending), according to D. Michael
Walden, Reynolds Distinguished Professor of Economics at NC State
University. The job creation numbers are based on Dr. Walden estimate
that 2,873 new homes will be constructed and sold as a result of the
credit that would not otherwise have occurred.

Click here to learn more about HB 485, including its application and
limitations.
http://www.votervoice.net/link/clickthrough/ext/154644.aspx

NCHBA will keep you informed of additional developments regarding this
legislation and, at the appropriate time, will be asking you to contact
your legislators to support this critical bill.

Tags: Buying a Home in Raleigh NC, Buying a House in Raleigh NC, First Time Home Buyers in Raleigh NC, Housing Market in Raleigh, Raleigh First Time Home Buyers, Raleigh Mortgage Rates, Selling a House in Raleigh NC
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Mortgage Rates: Running into Resistance

Monday, March 14th, 2011

Hugh W. Page, M.B.A.
Senior Mortgage Consultant
(919) 8784-7557 Direct
(919) 595-9707 FAX
hpage@fmlending.com
www.fallsofficeloans.com http://www.fallsofficeloans.com/

Don Davidson
Senior Mortgage Consultant
(919) 747-5947 Direct
(919) 595-9727 FAX
ddavidson@fmlending.com
www.fallsofficeloans.com

FALLS OFFICE MORTGAGE CENTER MARKET UPDATE

Mortgage Rates: Running into Resistance

Friday, March 11, 2011 3:09 PM

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someone you know that may want to read it.

Consumer borrowing costs lost a very small amount of ground today.
Mortgage rates are still about aggressive as they’ve been since late
January though….

CURRENT MARKET: The “Best Execution” conventional 30 year fixed mortgage
rate is still 4.875%. For those looking to permanently buy down their
rate to 4.75%, this quote carries higher closing costs. The upfront cost
of permanently buying down your rate to 4.75% is not worth it to many
applicants, we would generally only advise the permanent floatdown if
you plan to keep your new mortgage outstanding for longer than the next
10 years. Ask your loan officer to run a breakeven analysis on any
origination points they might require to cover permanent float down
fees. On FHA/VA 30 year fixed “Best Execution” is still 4.75%. 15 year
fixed conventional loans are best priced at 4.125%. Five year ARMS are
best priced at 3.50%.

To illustrate the recent behavior of mortgage rates, we offer the chart
below. It graphs the average origination closing costs associated with
specific mortgage note rates as quoted by the five major mortgage
lenders.

If the note rate line is moving up, the closing costs associated with
that rate quote are rising. In December, closing costs rose rapidly.
Mortgage rates did improve from those levels, but then moved sideways
for 7-weeks. And then the range broke following the January Employment
Situation Report and consumer rate quotes rose back to their December
highs. As one can see, borrowing costs have steadily improved since
then but have more recently run into a wall near one-month lows. 4.75
is on the brink of being back in the game for consumers but hasn’t been
able to break below the 0.00% barrier since early December. We’ve run
into resistance! Again!!

Each line represents a different 30 year fixed mortgage note rate. The
numbers on the right vertical axis are the origination closing costs, as
a percentage of your loan amount, that a borrower would be required to
pay in order to close on that note rate. If the note rate graph line is
below the 0.00% marker, the consumer may potentially receive closing
cost help from their lender in the form of a lender credits. If the note
rate line is above the 0.00% marker, the consumer should expect to pay
additional points at the closing table to cover permanent buydown costs
and origination fees. PLEASE SEE OUR MORTGAGE RATE DISCLAIMER BELOW

GUIDANCE: The failure of the bond market to extend its recent rally
really serves to drive home a point we’ve been harping on for several
weeks now: WE’RE STUCK. If you’re floating, you’re doing so for
marginal improvements in UPFRONT COSTS ….not RATE. See disclaimer
below please. When it comes to the outlook for lower rates in the months
ahead, we’re still optimistic about that expectation but realize it will
require a steady drip of bond friendly (economy-unfriendly) news and
events . In the short-term, or at least until “the levy breaks” and all
hell breaks loose around the planet, we don’t expect lender rate quotes
to look much better than they do right now. The following comment hints
at the commitment required from bond market investors if we’re going to
see mortgage rates to move notably lower.

From: Mortgage Pricing Hits Wall. Loan Demand Declines…

“Lenders have moved the Best Execution 30-year fixed note rate as low as
they possibly can without drastically altering their pipeline hedging
strategies. This is a factor of what production mortgage-backed
security coupon is most liquid in the secondary mortgage market. On
conventional loans, the 4.50 percent MBS coupon is the hedging vehicle
of choice for lock desks. Home loans with note rates between 4.875 and
5.25% are generally used to fill 4.50 percent MBS coupon trades. Until
MBS investors demonstrate sustainable demand for 4.00 percent 30-year
fixed MBS coupons, lenders will not find it economically efficient to
quote 4.75 percent note rates without expensive permanent buydown costs.
From that perspective, if you are floating a conventional home loan
interest rate, you should not be expecting further improvements to your
actual rate in the short term. If the bond market recovery rally
continues, closing costs will improve, but on the whole, it will take a
sustained move higher in 4.00 percent MBS coupon prices for Best
Execution to dip below 4.875 percent.”

Plain and Simple: We’re going to need a sustained bond market rally to
see “Best Execution” break through the 4.875% barrier. Otherwise this is
as good as it gets.

“Best Execution” is the most efficient combination of note rate offered
and points paid at closing. This note rate is determined based on the
time it takes to recover the points you paid at closing (discount) vs.
the monthly savings of permanently buying down your mortgage rate by
0.125%. When deciding on whether or not to pay points, the borrower
must have an idea of how long they intend to keep their mortgage. For
more info, ask you originator to explain the findings of their
“breakeven analysis” on your permanent rate buydown costs.

Important Mortgage Rate Disclaimer: The “Best Execution” loan pricing
quotes shared above are generally seen as the more aggressive side of
the primary mortgage market. Loan originators will only be able to offer
these rates on conforming loan amounts to very well-qualified borrowers
who have a middle FICO score over 740 and enough equity in their home to
qualify for a refinance or a large enough savings to cover their down
payment and closing costs. If the terms of your loan trigger any
risk-based loan level pricing adjustments (LLPAs), your rate quote will
be higher. If you do not fall into the “perfect borrower” category, make
sure you ask your loan originator for an explanation of the
characteristics that make your loan more expensive. “No point” loan
doesn’t mean “no cost” loan. The best 30 year fixed conventional/FHA/VA
mortgage rates still include closing costs such as: third party fees +
title charges + transfer and recording. Don’t forget the intense fiscal
frisking that comes along with the underwriting process.

View Article:
http://www.mortgagenewsdaily.com/consumer_rates/202579.aspx
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