Global markets remain volatile as Egypt turmoil continues
January 30, 2011 by admin
In the United States the Dow dipped by almost two percent, shaving off over 160 points on Friday as the world reacted to turmoil and political unrest in Egypt. As global markets begin the day in trading early Monday morning the stock markets in Japan and Hong Kong were both continuing a rapid decline as investors are becoming increasingly worried that the situation in Egypt could further spiral out of control. What is evident, as the markets continue to demonstrate is nothing will ruin a equity market rally faster than political or credit problems that involve global nations. The market’s reaction on Friday closely resembles the reaction demonstrated in 2010 when concerns of debt levels in Greece and Portugal sent markets around the globe spirally downward. Many financial experts have been predicting that the U.S. Dow and Stock Market was due for a correction, following its rapid ascent back above the 12,000 point level. What remains to be seen is whether the markets continue losing ground or if this will be a short lived selling cycle. The dip with stocks, helped bring bond rates lower, providing some relief to fixed mortgage rates, but again all indications are pointing to an increase with interest rates in 2011. This could be a very pivotal week for the equity markets with two key payroll reports due out this week, these reports could easily turn the market around and drive equities higher or further cement the profit taking witnessed on Friday. With the increase in volatility that is impacting the markets this week, the potential for large swings in the Dow are certainly likely, moves that could lead to quick swings in bond rates and loan rates as well. As Egypt continues to be in the spotlight, they could have a quick or prolonged impact on the Dow and must be taken into consideration when making financial decisions this week.
January 25, 2011
January 25, 2011 by admin
The stock market rallied in late trading to finish the day relatively flat. Corporate earnings continue to steer the direction that equities are moving and the DOW appears poised to cross over the 12,000 point level in the upcoming weeks. consumers following the yields on the Ten Year Treasury Bond (3.31% on Tuesday) have seen almost a twenty basis point improvement off of the high marks. The dip in yields has helped to offset pricing adjustments that mortgage lenders are beginning to push through the marketplace as they adjust loan fees and closing costs in conjunction with the secondary marketplace Fannie Mae/Freddie Mac who have announced changes to loan level pricing adjustments, triggered by FICO scores and LTV (loan to value). The additional increase in fees is aimed at borrowers who may have credit scores below 740 or lack a down payment/home equity equal to or greater than twenty five percent of the homes value. The additional charges are likely going to be felt in the lenders closing fees, although certain lenders may try to offset these fees by raising the loan rates of the new mortgage.
fannie mae price adjustments, bolded numbers are price adjustments 2011
The national average for a thirty year mortgage remains below five percent (4.82) with many national lenders. The adjustments to the mortgage market are not welcome news to the real estate industry which remains stagnant. Home prices continue to decline and are projected to dip further this year as a wave of foreclosures is likely to begin in early Spring following the lender moratorium from last year.
Proven techniques to lock in a low rate on your auto insurance policy
January 23, 2011 by admin
Shopping For the Best Auto Insurance Rates Follow These Proven Techniques
It is always a good idea to shop for auto insurance online because you can stand to bag fantastic deals and discounts if you buy them from the Internet. It is better to go to an aggregator site that compares various auto insurance quotes from different vendors at one place so that you can take a better decision on which kind of auto insurance that suits you the best. Here are some tips that can help you while shopping for the best auto insurance:
1. Review your insurance needs: It is advisable to do an insurance coverage checkup every six months to find out if your insurance coverage is the best you can avail of, at a given time. Insurance rates have a tendency to change often and so do your requirements. For instance, if you go to a new zip code or buy an additional car, your insurance needs or coverage may also change. At the same time, you can remove paying for the coverage that you no longer need.
2. Having a good record helps: Safe drivers are always known to get auto insurance at low prices compared to high risk drivers. Also people who are in the age group of 18 and 25 are perceived as ‘high’ risk by insurance companies as are ones who runs sports cars. If you have no traffic violations, fines or accident cases against your name, you can benefit from a cheap auto insurance offer.
3. Make sure that you have a good credit record: Insurance companies go through the credit reports before deciding on the premium amount. If your credit score is good, you will definitely be in a position to get better terms for insurance compared to the one who does not have a good score.
4. The value of the car: The value of the car also has a telling effect on the auto insurance you take. For instance, a car that is costly or a luxury brand may entail a high premium compared to the usual rates.
5. Proper safety features in the car: If you can prove that your car has good amount of safety features like traction control, electronic stability control, anti-lock braking system; the risk of accident is reduced which makes the prospect less risky from the insurance point of view.
6. Keep searching for discounts: Do not assume that the first discount offer that you come across is the best one, or that the ‘golden’ offer would pass away. Offers keep coming, you should give yourself a time frame to look for as many discount offers on auto insurance and then make an educated decision. Also, though cheap rates are always welcome, it should not be at the cost of coverage.
7. Check user reviews on blogs and forum sites: Look out for user experiences of people on various blogs, review sites and forum sites about their experiences with a particular auto insurance company. They will throw light on what they like or hate in a particular insurance company which can form part and parcel of your decision to take up coverage for your car from a particular car.
First time buyers still have financing options in todays mortgage market
January 20, 2011 by admin
Despite a major shift in the perception of real estate as a financial investment, their is certainly a strong incentive for consumers to purchase homes. Record low mortgage rates help provide affordable low payments and their are several programs offered by both conventional and FHA mortgage lenders providing borrowers the opportunity to purchase with as little as 3 to 5% down and credit scores into the 620 range.
First-time home buyers are quite eager but cautious to buy a house that they dream of. The recent trends in the housing market have definitely opened a can of questions. So how can one plan to buy a home as a first-time endeavor in the present times?
1. Buy now: There is no good time or bad time to buy a house, whatever the so-called experts may say. Realty is a sector that has to go up, today or tomorrow. In the holiday season, particularly, you can expect more leverage and more bargaining as the housing market moves sluggishly.
2. Qualifying for a loan: In today’s tight credit scenario, it may not be so easy to qualify for a loan and get good interest rate. You can however, improve your chances, by qualifying for the best interest by having a squeaking clean credit record. So, go ahead and pay your credit card bills and other debts so that your credit report is good. Make sure that your carry a document that is an apt snapshot of your income and assets to prove to the lender that you are not a big risk to them.
3. Keep monthly mortgage payments low: Make sure that you have saved enough money to factor in 20 percent down-payment. This means, you will be able to get a loan at a lowered interest rate. The lender knows that you are also pooling in money from your side; and the more you are able to pay upfront towards the home, the lesser is the mortgage money, and lesser is the interest payment.
4. Gauging the cost of your home: Understand that the cost of your home ownership is more than the monthly principal and interest payment. There are many other things to pay for, like the homeowners’ insurance, the property taxes and also possibly, the private mortgage insurance. So, you end up paying more than say, $250,000 for a home. Of course, you can get some of the interest back when you file your taxes.
5. Comparison shopping: Do not say ‘yes’ to the first deal that comes across your way. Speak to various lenders, check online for various mortgage deals and find out which have better terms and conditions that can suit you. You can also invest in a mortgage broker who will not only shop for a good deal on your behalf, but also help you with various formalities.
From the above points, one can make out that it is never too late to get a home. But one cannot guarantee what will be the condition of the market, a few months from now. So, if you have the finances in place or at least, know various channels to raise money, go for your dream house; after all; it is your most important investment
January 19, 2011
January 19, 2011 by admin
The market is trading mostly sideways in early action on Wednesday, bond prices are showing some signs of recovery despite a major uptick in the stock market over the past thirty days. The heavily monitored ten year Treasury bond has dropped from 3.5% down into the 3.3% range, helping ease the upward pressure to fixed mortgage rates. Most national mortgage lenders were offering home loans for thirty year loan terms under five percent (4.82%) this week. The improvement in rates will help the real estate market which is struggling to regain traction. New home building in 2010 was off over seventy percent, compared to levels in 2006-2007. The improvement with mortgage rates may be short lived if the market continues to see upward inflationary pressure from rising energy and oil prices. The equity market improvement could also work to pull investors out of the bond market and into stocks, further pressuring yields to rise, driving long term rates higher.
This week is relatively quite in terms of economic reports that will move the market. Most investors will be focused on earnings reports which have been relatively upbeat from most DOW components as they gauge the direction of consumer spending and sentiment. The major focus for most investors will remain on job creation, real estate and earnings outlook into 2011 as they gauge the market.
Huge spike in foreclosed homes expected in 2011
January 16, 2011 by admin
The last few years has seen a lot of economic hardship and a lot of heartache because of it. The worst thing is that many people have lost their homes as well as their livelihoods. Foreclosures have increased dramatically over the last couple of years and there seems to be no end in sight. Most analysts are predicting that 2011 could see the largest spike with foreclosures, surpassing the records of 2010. With one in five homeowners presently over sixty days behind on their mortgage payment, home foreclosure are certain to begin increasing at a rapid pace. Most major lenders have moved past their short moratorium on foreclosures despite the continued legal battles that lie ahead with state attorney generals over fraudulent signed documents. The growing foreclosure problem will have a negative impacts of the struggling economy, and something nobody likes to see.
Foreclosed homes arriving on the market are also pushing down prices across the board; as much as by a quarter of what they were previously. This has led to a huge increase in the number of people buying homes that came onto the market as a result of foreclosure. In fact it is now believed that one third of all housing sales in the US are as a result of these foreclosures. The signs are that there are a lot of other people who are struggling to satisfy lenders and we are due to see many more foreclosed homes come on the market. This should further decrease property values.
We are all looking forward to the day when the US economy once again gets back on its feet. There have been some positive signs recently but the biggest stumbling block remains the housing market. Most successful economies rely on this part of the economy being healthy and the US is no exception to this. This is why the government has recently provided so stimulus packages in the form of tax credit for those looking for a new home. Many people have taken advantage of this incentive and some have been able to get really great deals on foreclosed homes. This stimulus package has no ended so we can expect further bad news in the housing market in the near future.
The fact that house prices are falling is good news if it stimulates more purchases. These foreclosed homes allow people to get some great deals, and they are encouraging people to buy. While the sale of new homes might be the worst it has been since we began taking records the opposite is true for foreclosed homes. In fact it may be the effect that they are having on the housing market that ends up being its savior. As people buy more houses it sends positive effects throughout the whole economy.
January 12, 2011
January 12, 2011 by admin
Market Highlights
Stock market up 90 points on January 12
Ten Year Bond Yield moves from 3.3 to 3.5%
Thirty year mortgage rates average 4.88% with national lenders
The upward direction the economy/stock market appear to be heading could finally provide a needed boost to the job market, a much needed shot it the arm of the economy that would provide a catalyst to real estate stabilization. This is of course assuming that things continue on a positive course following last weeks non farm payroll and adp jobs report, both of which were well received by the market and have been key reasons fueling the surge in equity trading. The continued upward move in stock prices will push bond yields higher, lifting up fixed rates along the way. While this may be counter to a recover in the real estate market, the FOMC appears to remain committed towards trying to keep fixed mortgage rates lower and assist with keeping all lending rates attractive through the first six months of 2011.
If the Dow passes the 12,000 mark level it will have returned to pre 2008 trading, prior to the collapse of the credit markets. The one big obstacle hanging over the market is the energy market and surging price of oil and gas. Should gas prices eclipse $4 per gallon, there could be a large impact in both the auto markets and consumer spending patterns, which could slow down or stunt economic growth.
Finding Good Deals on Homeowners Insurance
January 9, 2011 by admin
Home insurance packages are expensive but you can actually find good deals if you just gather enough tips and ideas. Because the Internet is now the ultimate means of accessing information, this tool should be your first stop. You will be amazed to find that almost all insurance providers have their own websites showcasing their products and services along with the insurance policy rates.
It is utterly important to protect your investments and the way to do it is to insure them. Whether you are planning to purchase a house or you now have a housing property under your title, insuring it will keep your property secured during unexpected situations. Basically, the main reason is to save you from incurring expenses on damages, renovations, and other instances relating to the property.
Evaluating Your Home
Before scouting for a home insurance package, make sure to check your property in order to figure out the kind of insurance package to get. For example, if your home is prone to flooding or tropical storm damage, you can avail of a home insurance policy that primarily caters to that.
Check the Insurance Coverage
Find out the coverage of the homeowner insurance policy. It is not in all cases wherein the insurance provider will cover for the damage. A common example is mold infestation in your home. Most insurance companies do not cover that. It is best to go through the details of the coverage and have the insurance agent explain it thoroughly for a clearer understanding of the insurance to be purchased.
Check for Referrals
Referrals make a very reliable method in choosing a good deal on your homeowner insurance. Try checking with your neighborhood for any recommendations or suggestions for a good insurance provider. You can also get their experiences and encounters with their homeowner insurance companies. Online testimonies and forums also give you an idea of where and how to get good deals as well as the insurance companies that have been receiving many complaints due to poor service. Through these statements from other homeowners, you will be able to choose your home insurance provider well.
In your search for a good insurance company, look for those that offer eligibilities for discounts, exclusions, and some sort of promotions. If you seem to really have a hard time getting home insurance, check the state government programs if ever there are available for your location.
Understand the Insurance Policy Well
Lastly, you will never get the best deals unless you study and understand the details and what’s written in the fine print. So, when shopping for homeowner insurance with your insurance agent, ask questions and do not hesitate to seek for clarification especially when it comes to figures and payments. You do not want to end up paying for a really high insurance premium that does not even provide a good coverage for your home.
January 5, 2011
January 5, 2011 by admin
The stock market rallied following a much better than expected ADP payroll report which helped to lift the DOW higher despite early indication of selling pressure from foreign markets. The much better than expected payroll report showed a surge in private sector labor growth and raised the expectations for Friday’s non farm payroll report, which could catapult the market higher for the month of January and provide solid momentum for an economic recovery in 2011.
The great payroll report was not welcome news to the mortgage rate markets. Home loan rates had previously pulled back from their rapid rise back into the five percent range for thirty year loan terms as the yield on the ten year Treasury has surpassed the 3.5% mark late in December. Today’s employment report sent yields on the ten year treasury up .13% and back to 3.48%, lifting rates for fixed mortgage rates in the process over .125 percentage points. Most national mortgage lenders are now offering thirty year fixed rate loans at 4.87 percent with the option to pay points to lock in a lower rate. Interest rates have moved well off of their historical lows of 2010, but are still very affordable for home buyers and straggling homeowners who have to to refinance their mortgage loans.
January 2, 2011
January 2, 2011 by admin
A New Year brings optimism to the beginning of job creation and economic recovery. Looking back at 2010 it is miraculous that the stock market gained as much ground as it did considering the financial challenges posed by some of the world leading economies (Italy, Portugal, Greece) all faced some financial difficulties and the lack of job growth in the United States was extremely disappointing. Despite the lack of job growth the U.S. stock market managed a healthy return, led by strong gains in the DOW and sharp increase for metals. Oil prices continue to increase and this could pose a major roadblock in the recovery plans for the economy in 2011. The lack of true inflation has helped to keep prices on most goods affordable during a period of stagnant job growth and declining wages for millions of people. Rising oil and gas prices will be a major influence on driving inflation in 2011 and the path towards gasoline around $5 per gallon is becoming more evident as gas prices soar above $3 with oil prices trading around $90 per barrel.
The FOMC and Treasury have worked diligently at trying to keep fixed mortgage rates near historical low levels. It is hard to imagine a scenario where 2011 mortgage rates dip under four percent for thirty year or fifteen year loan terms as bond yields are moving higher, oil and inflation will continue to pressure the market and the FED has used every imaginable tool at its disposal to try and suppress interest rates to date. Rising interest rates will pose a challenge to the business community and real estate markets, both which face a steep climb up out of the recession. Job growth and creation have been at a much slower pace than government would have wished and the lack of new job creation could keep the recovery on a very slow track for the next 12-24 months. The new year will be filled with optimism, but the prospects of major improvements are months away by most accounts.
