7/22/09 Whats up with Rates | Bay Area Event Tonight

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Good morning everyone and thanks for reading. We are in the office throughout the day today working on various real estate deals and fundings this Wednesday 7/22 so just call anytime at 925-954-7082. We would also like to invite you to our event this evening in Fremont if you would like to meet successful professional real estate investors and learn how you can get involved too. You can learn more about our event right here!

If you would like to learn more about some of the most popular inovative real estate financing programs available today check this out or give us a call and just ask. Rates are up a bit from yesterday so if you had the chance to lock great!

Check out our market commentary for the day below. Have a great day!

Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |

Market Commentary 7/22/2009

U.S. MBA Mortgage Applications Index Rose 2.8 Percent Last Week
2009-07-22 11:00:02.0 GMT
By Shobhana Chandra

July 22 (Bloomberg) -- Mortgage applications in the U.S. rose for the third consecutive week as refinancing and purchases advanced.
The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan increased 2.8 percent to
528.9 in the week ended July 17, from 514.4 in the prior week.
The group’s refinancing gauge climbed 4 percent, while the purchase index rose 1.3 percent. The worst housing slump since the Great Depression is steadying as falling prices make properties more affordable to buyers able to get financing. At the same time, record foreclosures and surging unemployment are hurting consumers, indicating any recovery in construction or economic growth will be slow to develop.

Home buying has stabilized albeit at a very low level.

Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. Recent activity has been suggestive of a broad bottoming pattern in home sales. The mortgage bankers’ purchase index rose to 262.1 last week from 258.8 the previous week, today’s report showed. The refinancing gauge increased to 2,089.7, the third straight gain, from 2,009.4.
The share of applicants seeking to refinance loans climbed to 55.5 percent of total applications last week from 54.9 percent. Construction Gain
The report reinforces other signs the real-estate market is steadying. Housing starts jumped in June to the highest level since November, and building permits, an indicator of future construction, also climbed, the Commerce Department reported last week.
Applications rose even as mortgage rates rebounded. The average rate on a
30-year fixed loan rose to 5.31 percent last week from 5.05 percent the prior week. The rate reached 4.61 percent at the end of March, the lowest level since the group’s records began in 1990.
At the current 30-year rate, monthly borrowing costs for each $100,000 of a loan would be $556, or about $81 less than a year earlier when the rate was 6.58 percent. The average rate on a 15-year fixed mortgage rose to 4.80 percent, and the rate on a one-year adjustable loan climbed to 6.50 percent.  Economist’s project prices will keep sliding as sales of distressed properties mount. Foreclosure filings reached a record in the first half of 2009, according to RealtyTrac Inc., an Irvine, California-based seller of default data. More than 1.5 million properties got a default or auction notice or were seized by banks.

Fewer Losses

Bank of America Corp., the biggest U.S. lender, reported a drop in
Second-quarter profit because of higher losses on credit cards and home loans, in part related to expenses to help homeowners modify loans. Chief Executive Officer Kenneth Lewis said the Charlotte, North Carolina-based bank sees signs that some loan losses may abate.
The Washington-based Mortgage Bankers Association’s loan survey, compiled
Every week, covers about half of all U.S retail residential mortgage originations.