Mortgage Rates Very Slightly Improved Ahead Of Employment Report

Provided By: MortgageNewsDaily.com

Mortgage rates were very slightly lower in most cases, making for marginal improvements in borrowing costs within the confines of recently higher interest rates. In other words, today's quoted rate is likely the same as yesterday's, depending on the scenario, with a token reduction in closing costs (or increase in lender credit). In many cases, there was no improvement to costs, and a few lenders were slightly higher in cost. 30yr Fixed, Best-Execution remains at 3.625%, though lower rates are still available.


Treasury and MBS trading was EXTREMELY quiet today as if to suggest a certain calmness before a potential storm (MBS are the mortgage-backed-securities that most directly influence mortgage rates, and they tend to trade in the same direction as Treasuries). The storm in question is the mighty Employment Situation Report that will be released at 8:30am tomorrow morning. This is the single most important piece of scheduled economic data each month and tomorrow's has the potential to be hugely important in light of the abrupt changes we've been experiencing in interest rates. If it shows much better-than-expected job creation, rates could be significantly higher tomorrow. Conversely, a downbeat report would likely have a substantially positive effect on rates, and also stands the chance to get the recent trend moving back in the other direction. That sounds enticing, but risks of floating continue to outweigh rewards for now.


Loan Originator Perspectives
"Few if any lender reprices today, a refreshing change of pace from recent days. Tomorrow's NFP report has the potential to move rates, but it would take a remarkably poor number of new jobs created to move MBS much. Seeing a lot of momentum selling now, and when that snowball starts rolling, it's tough to stop." -Ted Rood, Senior Originator, Wintrust Mortgage.
"Floating through tomorrow's data is highly risky, so float at your own risk. My personal view is we would have to see a number greater than 225k for it to hurt mortgage rates. Anything under we either hold here or rally. My belief is we see a lower number. " -Victor Burek, Open Mortgage.
"We're taking the rate improvement between yesterday's mid-day Fed announcement and today as an opportunity to lock clients at the best levels since this MBS selloff picked up steam a week ago (rates rise in a selloff and drop in a rally). MBS technicals are still too foreboding and upside rate risks outweigh benefits of "holding for better" ... especially for clients on short time horizons, like those in contract to buy homes that need to close in the next 20-30 days. " -Julian Hebron, Branch Manager, RPM Mortgage.
Today's Best-Execution Rates

• 30YR FIXED - 3.625%
• FHA/VA - 3.25% - 3.5% (varies more between lenders than conventional 30yr Fixed)
• 15 YEAR FIXED - 2.875%- 3.00%
• 5 YEAR ARMS - 2.625-3.25% depending on the lender

Ongoing Lock/Float Considerations

• Rates have risen moderately from their all-time lows, making for relatively increased reward for floating at the expense of greater risks of loss.
• Rates could easily move higher or lower, and unscheduled, unexpected events can ultimately have the most say in the direction.
• Near term risks in 2013 include the upcoming debt-ceiling debate in Washington as well as the Fed's policy outlook regarding securities purchases.
• Prospects For Extending The Debt Ceiling Deadline currently seem to be preventing a move back down in rate. Passage of such legislation could further support a rising rate environment.
• (As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario. There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you're following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

8.6 Million Mortgage Originations in 2012, Highest Since 2007

Provided by MortgageNewsDaily.com

The December Mortgage Monitor report released by Lender Processing Services and covering performance data for the full 2012 calendar year, found that while mortgage delinquency rates remained at elevated levels, they have shown steady improvement, ending the year 32 percent lower than the January 2010 peak. Additionally, following a year of regional improvement in foreclosure inventories (marked by stark contrasts between judicial and non-judicial foreclosure states), the national foreclosure inventory rate began to decline toward the end of 2012 from historic highs experienced during the crisis.


In addition to presenting statistics on December delinquency rates and foreclosures, much of which was previewed earlier this month, The Lender Processing Services (LPS) Mortgage Monitor looked at several other key issues including new Qualified Mortgage Rules and changes to servicing regulations.
LPS said that had the Consumer Finance Protection Bureau's (CFBP) QM rules that were released last week existed in 2005 at the height of the housing boom they would have restricted at least 23 percent of loans originated in 2005. If those rules were in effect in 2012 they would have affected only 2 percent of mortgage originations.

The "refinancible" loan population continues to grow, even as new originations rise. Leveraging data from the LPS Home Price index, LPS found that 2012's appreciation in home prices has helped to improve the U.S. equity situation and create even more refinance opportunities. Negative equity is down 35 percent since the beginning of the year and nearly 4 million loans that were below conforming loan-to-value (LTV) thresholds for refinancing last year would meet those standards today. An additional 3.4 million loans that are on the cusp of conforming loan-to-value thresholds stand to benefit, if the home price situation continues to improve.


The total U.S. foreclosure pre-sale inventory rate in December was 3.44% of all mortgaged homes in the U.S. The month-over-month change in foreclosure pre-sale inventory rate was -2.00 %


According to LPS Applied Analytics Senior Vice President Herb Blecher, 2012 also saw a return to relatively high levels of mortgage origination activity.

"Though still a long way off from the historic level of originations that preceded the mortgage crisis, 2012 was the strongest full year of originationswe've seen since 2007," Blecher said. "Volumes were up approximately 34 percent year over year, with about 8.6 million new loans originated. And, while the majority of these new loans were government-backed - 84 percent in 2012 as compared to just over 50 percent at the peak - the trend over the last four years does suggest a slowly resurgent non-agency lending market."

Home Improvement

Provided By: Better Homes.com

It's never too late to fall in love with your home again. Whether you want to customize a basic builder design or renovate an old home, you can convert the existing space into your dream home with smart updates, careful planning, and the right professionals. Create a home that is as functional as it is livable with updates that help it reach its fullest potential. Browse these ideas to restore beauty in your home, and maximize space with projects that fit your time frame, budget, and style. We'll share our best home improvement updates, budget ideas, material recommendations, and remodeling advice to get your project started on the right foot. Learn how to budget for home remodeling costs, how to plan a home addition, how to update your home's exterior, how to add architecture to your home, and more. Try new interior and exterior paint colors for free with our virtual Color Finder tool, and take our countertop and floor finder quizzes to discover your perfect material matches. Find inspiration to create bathrooms, kitchens, garages, home offices, decks, patios, and entryways you'll love. We also have weekend project ideas, home plans, kitchen and bath planning guides, and storage solutions.

Home Decorating Tips

Provided by HowStuffWorks.com


Every house should be a warm haven, a place where we throw off the cares of the world and relax with family and friends. From the kitchen where we launch our busy days to the bedrooms where we close our eyes at night and dream, we want each space to reflect our personal tastes and sensibilities. But we desire that our rooms be comfortable and practical. Pulling all the components together is a tall order, and yet it's also wonderfully rewarding. Use the home decorating tips we've provided here as inspiration, and create the kinds of rooms your loved ones will want to hurry home to enjoy.
Formulate a Decorating Plan

Before you get to work tearing down walls or throwing the paint up on the walls, there are a few steps to take first. Take the time to formulate a decorating plan; it'll save you time and money.
Decorating Tips for New Homes

If your home is being newly constructed, now is the time to get involved in decorating before the home is completed! Use these decorating tips for new homes, and learn how to make an imprint on your home before the contractors finish their job.

Integrating New Decorating Ideas

Decorating a room in a new style can clash with the old style in adjoining rooms. Learn how to integrate new decorating ideas throughout your home so that the style feels unified, not disjointed.

Form and Function in Decorating
Everyone wants their home to be pretty, but to make it inviting as well, it must live up to its function. Is there ample seating in the TV room for big families? Is there enough space in the entertainment room around the pool table to shoot? Learn how to combine form and function to create an ideal living space.

Tips for Starting a Decorating Project
Before your start decorating a room, it's best to assess what you have to work with. Is the dry wall caving in? Is the plumbing leaking? Fix these things first, and then you're ready to start your decorating project.

Tips for Decorating on a Budget
Most people can't afford to undertake a huge endeavor, like decorating a room, without looking at the final price tag. If you're decorating on a budget, these tips will help you achieve the look you want without the exorbitant cost.

Organizing a Decorating Project
These tips on organizing a decorating project will not only help you track your current undertaking but future ones as well. Plus, good organization can help you save money in the long run.

DIY Decorating vs. Using a Professional
Although do-it-yourself projects can be fun and rewarding, they aren't always feasible. Unless you're an expert at removing asbestos or wiring electricity, it's best left to the professionals. Use these tips to determine what you can handle and what you should hire out to contractors.

Achieving Balance with Decorating
Love that oversized chair but feel like it swallows up all the space in the room? Want to display your tiny trinkets but afraid they're too delicate for a large space? Learn how to achieve balance with decorating and make any space -- no matter its size -- visually pleasing.

Decorating with Color
Adding a splash of color to any room livens up a space. But before you select a color, consider the function of the room and how the color makes you feel. If you're a morning person, painting your bedroom a bright magenta may help you start the day with energy, but if you can't face the morning without a strong cup of coffee, a soothing shade of blue may be best. Learn more about choosing a color scheme.

Tips for Decorating with Texture and Patterns
Color isn't the only way to infuse a room with personality; texture and patterns are a great way to add a unique touch. From velvet fabric on a sofa to mosaic tile-covered end tables, texture and patterns draw the eye to interesting details. Use these tips to decorate with texture and patterns.

Lighting Design Tips
Do you have a gorgeous painting hidden in the shadows? Do the overhead lights in your cozy bedroom make it feel more like a hospital room? Learn how to design a lighting scheme that bathes each room in your home in the perfect glow.

To learn more about interior design and get tips and information on decorating your home, visit:

• Interior Decorating: Get tips on how to decorate your home and read about organizing a project and selecting an interior design that fits your lifestyle.
• Decorating a Room: Find out how to decorate a room from floor-to-ceiling.
• Decorating Styles: Are you traditional or eclectic? Learn about decorating styles for your home.
• How to Design a Kitchen: Create a kitchen that works for you and get tips on how to choose and place appliances and create a decorating scheme.
• Kids Rooms: Get tips on decorating your child's room, with information on colors, smart strategies, and money-saving tips.

'Normal' Housing Market May Not Be What It Used To Be

Provided by Realty Times.com

The housing recovery is underway, most agree. But that assumes residential real estate is on a path to some level of normalcy that will be more sustainable than the last boom-bust housing cycle – the boom-bust cycle that took the economy down with it.

Fannie Mae recently swirled the tea leaves, gazed into the crystal ball and honed in on some hunches to describe what housing's move to "normal" will entail.

Fannie Mae is a government-sponsored enterprise (GSE), created to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities.

So, the GSE really went a lot further than soothsaying. It took stock of economic trends, the new regulatory protections, federal fiscal policy, the global economy and other indicators in an attempt to get a handle on what could be in store for housing and the economy in general.

But the GSE's recent white paper "Transition to 'Normal'?" comes with a question mark because clouds of uncertainty continue to hover over both the economy in general and real estate more specifically.
Both recoveries remain in a stage of infancy and are still too week to sustain the kinds of major "What ifs?" or "Oh, nos!" that always loom.

Fannie Mae says, given how long it's taken the nation to reach this point, don't expect skyrocketing home prices and a Wall Street gone wild.

'Below-potential growth'
"Our forecast is that 2013 and 2014 will exhibit below-potential economic growth. This is despite the fact that we expect the housing rebound will continue and that the economy will benefit from the gradual increased growth of U.S.-based manufacturing, as well as the expansion of domestic energy production," Fannie Mae sums it up.

More specifically, the report points to some positive trends that bode well for housing.

• If Washington can get it's act together, the move on Capital Hill is toward tighter fiscal policy – the government will write fewer checks it can't cash. That legislators are more focused on a sensible fiscal policy is a start.
• While there have been some rumblings the Federal Reserve's Federal Open Market Committee (FOMC) won't hold the economy's hand as long as originally planned, the Fed isn't likely to leave the economy twisting in the wind.
Rather than peg benchmark rate increases to some date on the calendar, say in 2015, the Fed plans to keep rates low until the unemployment rate is sustained at 6.5 percent. That more close ties the Fed's move to the economy.
• Thus far, Fed moves have helped keep mortgage rates low long enough to help support the recovering housing market with affordable financing. The Fed's recent Senior Loan Officer Opinion survey even revealed lenders are letting go of the purse strings, if only a bit.
Fannie Mae expects mortgage rates to remain relatively low and affordable "over the next few years," rising to no more than 4.2 percent by the end of 2014.
There could be greater costs assigned to Federal Housing Administration loans, as the FHA struggles to remain solvent.
And 2012 could have been the last year for the refinance boom.
"We expect 2012 to be seen as the high watermark for refinances and 2013 as the first of several transition years as the housing finance market transitions back to a more normal balance between purchase and refinance activity."
• Understandably, given the uncertainty, economic growth is low and slow, but sustainable. December revealed some resiliency in the job market and income growth reflected greater job security. Fannie Mae says to expect annualized growth of around 2 percent for the year.
• Autos are almost selling like hotcakes and housing isn't just blowing smoke. Both contribute to manufacturing, a major economic driver. Manufacturing should get a boost if business can count on more sensible fiscal policy from Washington, D.C. to help make hiring a growth industry.

Sticky housing recovery hopes
So long as those factors continue to converge and congeal, the housing recovery should stick.
Every month, reports reveal the recovery is picking up steam and holding it's own even through the traditional seasonal downturn of a "normal" market.

Foreclosures are declining from their peaks, foreclosure alternatives are more common and new household formation is on the rise.

Home builders can't build homes fast enough to offset shrinking inventories in both the new and existing homes market and that's pushing up prices, hopefully not faster than interest rates will rise.
Fannie Mae says housing starts should rise 23 percent in 2013, 60 percent more than the record low in 2010. Starts won't reach sustainable levels until 2016.

"Given our expectations of continued improvement in housing starts, home sales, and home prices in 2013, we project that purchase mortgage originations will rise to $642 billion from a forecast of $518 billion in 2012."
It's a start toward normalcy.