Oregon Mortgage News: January 2008

Wow, what a difference a day, or for that matter, a few hours make! Yesterday, shortly after my post the stock market rallied and we lost about .75 basis points on the mortgage backed securities, and so far today another .31 basis points. This means that while we were looking at a 5% rate on a 30 year fixed rate loan yesterday, today that same loan will is at 5.5%. Those who locked in yesterday, good job!!

On another note, part of the new economic stimulus bill being worked on in Washington DC includes a temporary provision to allow the conforming loan amount to be lifted. The amount will vary based on the average home price in an area. Of course, California will see the largest increase. For those of you with loans above $417,000 and below $500,000, this could present a great opportunity to refinance, or purchase at a very attractive rate. As an example, a Jumbo 30 year fixed loan with one of my lenders comes in at 6.75% today. So, that could result in more then a 1% rate reduction. On a $450,000 loan, this is a monthly savings of around $300!!

Call me if you, your friends or clients have any questions.

Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in helping clients maximize their equity position through proper debt structure and financing for Senior Citizens He is a Board Member of the Sherwood Chamber of Commerce. He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com .

This material is copy protected 2008 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

FitPregnancy Magazine has listed Portland, OR as the top city in the nation for having a baby. Just another reason to live or move here. Portland, and the surrounding cities are considered some of the best places to live for many reasons, and according to a number of different sources.

In this study, Portland ranked high on low maternal and infant mortality, health of baby, breastfeeding, use of midwives, doulas and lactation consultants. The availability of high-risk pediatricians was also stated as well as the number of parks and state laws allowing breast feeding in public.

So, if you live here, CONGRATULATIONS!! If not, pack up and move here. Home values are relatively stable and I've got a loan program with your name on it.

Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations, helping clients maximize their equity position through proper debt structure, as well as financing for Senior Citizens. He is a Board Member of the Sherwood Chamber of Commerce. He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com .

This material is copy protected 2008by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

What was looking like a ho-hum week has turned into a block buster. While our markets took Monday off to celebrate Martin Luther King Jr's birthday, the European and Asian markets tanked in fear of a US/Worldwide recession. In reaction to that, our Fed cut the Prime rate by .75% in fear of a major Wall Street sell off. Well, we still saw a major sell off, in part because of what happened overseas, and probably in part due to the unexpected move by the Fed. Wall Street doesn't like surprises.

Today started out with more of the same, but stocks are starting to bounce back.

So, what does this have to do with mortgage rates? Two things.

1) While a Bear market is bad for stocks, it is great for bonds. Long term mortgage rates are essentially bonds and when investors pulled money out of stocks they had to put it somewhere, and one of the places was long term mortgage backed securities. We are at or below 5% now on a 30 year fixed rate loan!! This is good for those who can qualify.

2) The Fed reducing the Prime Rate lowers the interest rate on most Home Equity Loans. So watch your next statement, you should see a nice reduction in the rate that you are paying. This is money in your pocket.

My Advice: The pendulum always swings back. We've seen a major swing away from stocks to bonds, and it's just a matter of time for it to swing back. Bond traders will at some point take some of the money off the table to make a profit. We have a window of opportunity here to lock in to a great rate. If you are paying more then 6% you should really be looking at refinancing, especially if you have an ARM over 5%.

Call me at 1+888-660-2842 or email me at mailto:larry.morris@equipoint.comt to discuss your situation.

The markets are closed today in celebration of MLK Jr's Birthday. Mortgages rates improved last week due to weak economic news and the uncertainty of the future. This week we see 3 economic reports with a moderate impact on mortgage rates: Initial Jobless Claims, Existing Home Sales and Crude Inventories. These are all on Thursday, so watch for potential rate changes due to investors reactions on Wednesday and Thursday.

Par today on a 30 year fixed rate loan is 5.375% and 4.875% on a 5/1 ARM for the best borrowers.

These are interesting times. Mortgage rates are back to historic lows, but underwriting guidelines have tightened enough to where many will not be able to enjoy these rates. However, that said, there are some incredible programs available that can help many borrowers to refinance or get into a new home. These include FHA, USDA Guaranteed Rural Home loans and the PITI Abatement program.

As the Fed, Congress and our President work to providing an economic recovery plan, it will be interesting to see how this effects rates. Remember, a booming economy is usually bad for mortgage rates as is inflation. Time will also tell if much of the bad news is from lenders and investors writing off all of the bad debt now, rather then stretching it out over time.

In Oregon, we're seeing an interesting statistic, either we're still showing an increase of property values or a decrease, depending on how you read the figures. PMI has a new report on the nations Economic Real Estate Trends. Page 6 gives a breakdown of how the major markets are doing in comparison to 3 rd quarter 06 and 07, along with their Market Risk Index. Portland shows a decrease of 10.57% in rate of appreciation, but a 6.06% actual appreciation. So, while the trend is property values losing ground, we're still seeing realistic property appreciation. The only major markets with greater appreciation are Austin, San Antonio, Charlotte, Seattle and Nashville. Only time will tell if we are just getting back to normal or if this is a nasty downward trend.

Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in Senior Citizen financing and Rural properties. He is a Board Member of the Sherwood Chamber of Commerce. He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com .

This material is copy protected 2008by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

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