A Gross Domestic Product

Last Week in Review: The Fe d met and a Gross Domestic Product was reported. Forecast for the Week:A busy week is ahead, with important news on inflation, manufacturing, and the job market. View: Ever wondered what the world was really like when you were born? Theres a fun way to find out.           Last Week in Review           If at first you don't succeed, try, try again. Last week, that popular idiom could have applied to the Gross Domestic Product (GDP) Report. Read on to learn why...and how all the week's news impacted Bonds and home loan rates. The Advanced GDP reading - or first of three readings - for the 4 th Quarter of 2011 came in at 2.8%, a bit below expectations of 3.2%. This number will be revised two more times, but if the final GDP remains at 2.8%...then the overall GDP for 2011 would be a scanty 1.57%. That is certainly a "Gross" Domestic Product, when you consider that the government has underwritten more than half of that economic growth with the Payroll Tax benefit. Also in the news last week, the Fed's Policy Statement after its regularly scheduled Federal Open Market Committee meeting was pretty much the same story as recent Statements, including stable long-term inflation expectations, a tepid economic recovery, and fragile job market. But there was one big exception to their norm. The Policy Statement said there will be "exceptionally low levels for the Federal Funds Rate at least through late 2014." This is a huge change from the previous statements of "low rates until mid-2013." On the surface, extending the zero interest policy until 2015 tells us the Fed thinks the economy will just be slogging along, and accommodative monetary policy will be required to keep the economy growing at least at a modest pace. One could argue that recent economic data is better of late and that all this loose monetary policy is unnecessary. But the Fed has spoken, and as the old adage goes: "Don't fight the Fed." In news out of Europe, yields in European Bonds have come downand by quite a bit. This sparked some optimism that Europe's Long-term Refinance Operation (LTRO) has helped alleviate some pressure in the peripheral countries in the Eurozone, like Spain and Italy. So what's the takeaway? In honor of the upcoming Super Bowl, here's a football analogy: think of the LTRO as a super punt or "kick of the can" down the road. Europe needs to play a serious offensive line by creating a tighter fiscal union, implementing au sterity measures, and developing growth strategies to help pay down the enormous debt. Refinance numbers are expected to increase dramatically over the next numbers of months due to the new HARP Refinance Programs kick off. Arizona Harp Lenders are expected to see the greatest share of these loan requests as the market there has witnessed it’s home values drop extensively. The bottom line is that Bonds and home loan rates remain at historic best levels, which means now is still a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.           Forecast for the Week           Economic reports will be plentiful - and important - this week: The week kicks off Monday with the Core Personal Consumption Expenditure (PCE), which is the Fed's favored gauge of inflation. This report will be closely watched, since any hint of an uptick in inflation could push Bond prices lower and, in turn, move home loan rates higher. Manufacturing will also be in the spotlight with the Chicago PMI on Tuesday, followed by the ISM Index on Wednesday. Consumer Confidence will also be delivered on Tuesday. The ADP Private Employment Report will be released on Wednesday and comes before the government's total job's report on Friday. As usual, Initial Jobless Claims will be released on Thursday. This week's report comes after an uptick of 21,000 last week. Finally, on Friday the government's monthly Employment Report will be released. The Employment Report consists of Non-farm Payrolls, the Unemployment Rate, Average Workweek and Hourly Earnings. This is an important report that can have a big impact on the markets. So I'll be watching it closely. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates remain near their historic bests. I'll be watching closely to see which way they move next. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Jan 27, 2012)

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Mortgage Update

Last Week in Review: There was more negative news out of Europe and some positive economic news here in the US. But how did home loan rates fare and what affect may it have on the new HARP Loan Program? Forecast for the Week: There will be plenty of news to gobble up before the Thanksgiving holiday, with reports on the housing market, the state of the economy, inflation, consumer sentiment, and more. View: Planning to do some shopping on Black Friday? Be sure to check out these tips first.           Last Week in Review           They say it takes two to tango.... And Stocks and Bonds continue to battle for investing dollars and trade in seesaw fashion. What's causing this dance in the markets? Read on for details. First, there was more pessimistic news out of Europe last week, as German leader Angela Merkel said that Europe is going through its toughest times since World War II, plagued by political unrest and a severe debt crisis. Reports showed there was a slowing in manufacturing to the point where recession fears have now gripped Europe. Here lies another enormous problem for Europe: One way--and probably the biggest way--to lower government deficits, is to grow your way out and elevate Gross Domestic Product (GDP). However, many of the Southern Europe economies are on the brink of recession, which will make lowering the deficit through economic growth impossible. So what does all of this mean for home loan rates here in the United States? The problems in Europe should continue to support the US Dollar and US Bonds (including Mortgage Bonds, on which home loan rates are based) to some degree, as investors will view our Bonds as a safe haven for their money. Yet, if we continue to see better-than-expected economic data here like we did last week, this will offset the continued uncertainty surrounding the European crisis. And this is part of the reason that the Bond markets and home loan rates saw limited gains last week. Some of the good news last week included tamer than expected wholesale inflation in the form of the Producer Price Index (PPI) and improved New York Manufacturing. Also, as you can see from the chart, the year-over-year headline Consumer Price Index (CPI) was down from the previous reading, which is good news for people concerned about inflation. However, the closely watched Core CPI rose by 0.1%, and though this was inline with estimates, it did push the year-over-year rate to 2.1% from 2%...a touch above the Fed's comfort zone. The bottom line is that home loan rates are still near historic lows, which means now remains a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.           Forecast for the Week           This Thursday, all capital markets will be closed in observance of Thanksgiving, and Friday will be a shortened session. But we'll still see a cornucopia of economic indicators reported in just three days: Existing Home Sales will be released on Monday. The report comes after last week's positive reports on Housing Starts and Building Permits, which signaled a glimmer of hope to the battered housing sector. The second read on Gross Domestic Product (GDP) for the 3rd Quarter will be delivered on Tuesday. The initial reading showed a somewhat healthy 2.5% increase. Also, look for the Durable Goods Report on Wednesday, which gives us a read on big-ticket items and a sense of how the economy is doing. The Consumer Sentiment Index will be released on Wednesday just in time for traders to square up positions ahead of the long holiday weekend. Also released on Wednesday will be the Fed's favorite gauge on inflation, the Core Personal Consumption Expenditure, as well as Personal Incomes and Spending. Finally, this week Initial Jobless Claims will be delivered on Wednesday rather than Thursday due to the Thanksgiving holiday. Claims have been below 400,000 for the previous three weeks, signaling that there may be a light at the end of the tunnel in the Labor markets. HARP Refinance activity has began to pick up as inquiries to lenders and HARP Loan Program information sites have seen a quick rise in requests for information.   In addition to those reports, the Fed's Federal Open Market Committee meeting minutes from November 2nd could have some surprises when released at 2 pm ET on Tuesday. Last week, the New York Fed leader William Dudley said that it would make sense for the Fed to begin purchasing Mortgage Backed Securities. The minutes could reveal if the members discussed the topic. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, the problems in Europe tempered the impact that strong economic news in the US had on Bonds and home loan rates. This dynamic will be something to watch closely in the weeks ahead. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Nov 18, 2011)           The Mortgage Market Guide View...                   For more information on the Mortgage market and the HARP refinance loan program look for next week’s issue. Economic Calendar for the Week of November 21 - November 25 Date ET Economic Report For Estimate Actual Prior Impact Mon. November 21 10:00 Existing Home Sales Oct 4.85M   4.91M Moderate

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What is HARP Conventional Streamline Refinance and Market Info

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 602-492-8393 Phil@JensenTeam.com Best Arizona Home Search Arizona Home Loans HARP Program

In This Issue           Last Week in Review: Historic news out of Europe, plus Stocks make history. Forecast for the Week: The Fed meets, and Friday brings big Job news-will the numbers give the markets a scare? View: Changes are coming to the Home Affordable Refinance Program. Find out what this means for homeowners.   Last Week in Review           Trick or treat? Last week, there was big news out of Europe, as an agreement was reached to help keep Greece from going into default. But will this deal mean a frightful time is ahead for Bonds and home loan rates? Read on for more details. On Thursday, the world was cheering on the news that a deal in Europe was reached, with private banks and other holders of Greek debt accepting a 50% haircut on their principal investment. Once the write down takes place, Banks who are holding Greek debt will have to recapitalize themselves by year-end, and government support will be available to fill voids that private money won't fill. In addition, the Economic Financial Stability Facility (EFSF) rescue fund, which currently has $443 Billion in holdings, will be expanded and leveraged to $1 Trillion Euros or $1.4 Trillion US Dollars. So the agreement is together…but like any effective plan, it now has to be put into action. And as this rolls out, the financial markets will be watching every step. When the sentiment is positive, like it was the day the plan was announced, Stock markets could benefit as investors would seek to take advantage of gains. In fact, the Stock markets are set to have their biggest monthly gains on record as October comes to an end. The closely watched S&P 500 Index is up 13.5% for the largest increase since October of 1974, while the Dow Jones advance of 12% is the biggest gain since January of 1987. Optimism surrounding the European crisis, positive economic data and better than expected earnings reports have fueled the rally. So what does all of this mean for Bonds and Phoenix home loan rates? The deal that was reached in Europe is historic, and good news for the world's economies overall. However, the plan has yet to be put into action-and then it has to work. And if there are hiccups or issues along the way, Bonds and home loan rates could benefit with some renewed safe haven trading. We saw a little of that late last week, when Friday's less than stellar Italian Bond auction reminded the world that the European debt crisis is not yet entirely resolved. The most important thing to keep in mind is that now remains a great time to purchase or refinance a home, as home loan rates are still near historic lows. Let me know if I can answer any questions at all for you or your clients.   Forecast for the Week           Major economic data is set to impact trading behavior this week…with manufacturing and employment leading the way: Manufacturing headlines will be in the spotlight this week with the Chicago PMI on Monday, followed by the ISM Index on Tuesday. Worker Productivity is also set for release on Thursday. The ADP Employment Report will be the first of two key releases to gauge the labor markets. Watch for ADP to be released on Wednesday. As usual, Weekly Jobless Claims will be delivered on Thursday. Last week's report showed that people filing for first-time benefits still remain above the 400,000 level. Friday's Jobs Report data will garner the most attention as the Labor Department reveals how many new jobs were created in October. Last month's gain of 103,000 new workers was positive. In addition to the reports above, the Fed Meeting begins on Tuesday and ends Wednesday with the Fed's monetary policy statement. The housing markets will be scrutinizing that statement for any rhetoric that involves possible new purchases of Mortgage Backed Securities to keep home loan rates near record lows. Recently, several Fed members have stated that the Fed needs to support the housing markets and not to see elevated borrowing costs. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates worsened in October as Stocks had one of their best months on record. But rates remain near historic levels, and I'll be watching closely to see what happens as we move into November. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 28, 2011)         The President's New Plan for Homeowners ( HARP Refinance Program ) You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you've been hearing questions about this program or are just curious about what the plan involves, here are some of the major highlights: So, what is HARP ? What's Really New? First, it's important to realize that the president's proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there are some big changes that you can let people know if they ask you. Refinance…No Matter How Underwater

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What is HARP Conventional Streamline Refinance and Market Review

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 602-492-8393 Phil@JensenTeam.com Best Arizona Home Search Arizona Home Loans HARP Program

In This Issue           Last Week in Review: Historic news out of Europe, plus Stocks make history. Forecast for the Week: The Fed meets, and Friday brings big Job news-will the numbers give the markets a scare? View: Changes are coming to the Home Affordable Refinance Program. Find out what this means for homeowners.   Last Week in Review           Trick or treat? Last week, there was big news out of Europe, as an agreement was reached to help keep Greece from going into default. But will this deal mean a frightful time is ahead for Bonds and home loan rates? Read on for more details. On Thursday, the world was cheering on the news that a deal in Europe was reached, with private banks and other holders of Greek debt accepting a 50% haircut on their principal investment. Once the write down takes place, Banks who are holding Greek debt will have to recapitalize themselves by year-end, and government support will be available to fill voids that private money won't fill. In addition, the Economic Financial Stability Facility (EFSF) rescue fund, which currently has $443 Billion in holdings, will be expanded and leveraged to $1 Trillion Euros or $1.4 Trillion US Dollars. So the agreement is together…but like any effective plan, it now has to be put into action. And as this rolls out, the financial markets will be watching every step. When the sentiment is positive, like it was the day the plan was announced, Stock markets could benefit as investors would seek to take advantage of gains. In fact, the Stock markets are set to have their biggest monthly gains on record as October comes to an end. The closely watched S&P 500 Index is up 13.5% for the largest increase since October of 1974, while the Dow Jones advance of 12% is the biggest gain since January of 1987. Optimism surrounding the European crisis, positive economic data and better than expected earnings reports have fueled the rally. So what does all of this mean for Bonds and Phoenix home loan rates? The deal that was reached in Europe is historic, and good news for the world's economies overall. However, the plan has yet to be put into action-and then it has to work. And if there are hiccups or issues along the way, Bonds and home loan rates could benefit with some renewed safe haven trading. We saw a little of that late last week, when Friday's less than stellar Italian Bond auction reminded the world that the European debt crisis is not yet entirely resolved. The most important thing to keep in mind is that now remains a great time to purchase or refinance a home, as home loan rates are still near historic lows. Let me know if I can answer any questions at all for you or your clients.   Forecast for the Week           Major economic data is set to impact trading behavior this week…with manufacturing and employment leading the way: Manufacturing headlines will be in the spotlight this week with the Chicago PMI on Monday, followed by the ISM Index on Tuesday. Worker Productivity is also set for release on Thursday. The ADP Employment Report will be the first of two key releases to gauge the labor markets. Watch for ADP to be released on Wednesday. As usual, Weekly Jobless Claims will be delivered on Thursday. Last week's report showed that people filing for first-time benefits still remain above the 400,000 level. Friday's Jobs Report data will garner the most attention as the Labor Department reveals how many new jobs were created in October. Last month's gain of 103,000 new workers was positive. In addition to the reports above, the Fed Meeting begins on Tuesday and ends Wednesday with the Fed's monetary policy statement. The housing markets will be scrutinizing that statement for any rhetoric that involves possible new purchases of Mortgage Backed Securities to keep home loan rates near record lows. Recently, several Fed members have stated that the Fed needs to support the housing markets and not to see elevated borrowing costs. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates worsened in October as Stocks had one of their best months on record. But rates remain near historic levels, and I'll be watching closely to see what happens as we move into November. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 28, 2011)         The President's New Plan for Homeowners ( HARP Refinance Program ) You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you've been hearing questions about this program or are just curious about what the plan involves, here are some of the major highlights: So, what is HARP ? What's Really New? First, it's important to realize that the president's proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there are some big changes that you can let people know if they ask you. Refinance…No Matter How Underwater

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What is HARP Conventional Streamline Refinance and Market Review

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 602-492-8393 Phil@JensenTeam.com Best Arizona Home Search Arizona Home Loans HARP Program

In This Issue           Last Week in Review: Historic news out of Europe, plus Stocks make history. Forecast for the Week: The Fed meets, and Friday brings big Job news-will the numbers give the markets a scare? View: Changes are coming to the Home Affordable Refinance Program. Find out what this means for homeowners.   Last Week in Review           Trick or treat? Last week, there was big news out of Europe, as an agreement was reached to help keep Greece from going into default. But will this deal mean a frightful time is ahead for Bonds and home loan rates? Read on for more details. On Thursday, the world was cheering on the news that a deal in Europe was reached, with private banks and other holders of Greek debt accepting a 50% haircut on their principal investment. Once the write down takes place, Banks who are holding Greek debt will have to recapitalize themselves by year-end, and government support will be available to fill voids that private money won't fill. In addition, the Economic Financial Stability Facility (EFSF) rescue fund, which currently has $443 Billion in holdings, will be expanded and leveraged to $1 Trillion Euros or $1.4 Trillion US Dollars. So the agreement is together…but like any effective plan, it now has to be put into action. And as this rolls out, the financial markets will be watching every step. When the sentiment is positive, like it was the day the plan was announced, Stock markets could benefit as investors would seek to take advantage of gains. In fact, the Stock markets are set to have their biggest monthly gains on record as October comes to an end. The closely watched S&P 500 Index is up 13.5% for the largest increase since October of 1974, while the Dow Jones advance of 12% is the biggest gain since January of 1987. Optimism surrounding the European crisis, positive economic data and better than expected earnings reports have fueled the rally. So what does all of this mean for Bonds and Phoenix home loan rates? The deal that was reached in Europe is historic, and good news for the world's economies overall. However, the plan has yet to be put into action-and then it has to work. And if there are hiccups or issues along the way, Bonds and home loan rates could benefit with some renewed safe haven trading. We saw a little of that late last week, when Friday's less than stellar Italian Bond auction reminded the world that the European debt crisis is not yet entirely resolved. The most important thing to keep in mind is that now remains a great time to purchase or refinance a home, as home loan rates are still near historic lows. Let me know if I can answer any questions at all for you or your clients.   Forecast for the Week           Major economic data is set to impact trading behavior this week…with manufacturing and employment leading the way: Manufacturing headlines will be in the spotlight this week with the Chicago PMI on Monday, followed by the ISM Index on Tuesday. Worker Productivity is also set for release on Thursday. The ADP Employment Report will be the first of two key releases to gauge the labor markets. Watch for ADP to be released on Wednesday. As usual, Weekly Jobless Claims will be delivered on Thursday. Last week's report showed that people filing for first-time benefits still remain above the 400,000 level. Friday's Jobs Report data will garner the most attention as the Labor Department reveals how many new jobs were created in October. Last month's gain of 103,000 new workers was positive. In addition to the reports above, the Fed Meeting begins on Tuesday and ends Wednesday with the Fed's monetary policy statement. The housing markets will be scrutinizing that statement for any rhetoric that involves possible new purchases of Mortgage Backed Securities to keep home loan rates near record lows. Recently, several Fed members have stated that the Fed needs to support the housing markets and not to see elevated borrowing costs. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates worsened in October as Stocks had one of their best months on record. But rates remain near historic levels, and I'll be watching closely to see what happens as we move into November. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 28, 2011)    The Mortgage Market Guide View...           The President's New Plan for Homeowners ( HARP Refinance Program ) You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you've been hearing questions about this program or are just curious about what the plan involves, here are some of the major highlights: So, what is HARP ? What's Really New? First, it's important to realize that the president's proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there are some big changes that you can let people know if they ask you. Refinance…No Matter How Underwater Now homeowners can refinance no matter how underwater they are! Before homeowners could only refinance if they were 25% or less underwater, and even then many banks only let people who were 5% or less underwater refinance. No Appraisal Necessary? With the program's revision, it's possible that an appraisal won't have to be performed. That's great news because it can help people save time and money. But this is only the case if Fannie Mae or Freddie Mac can electronically estimate the value through their valuation models. But Keep in Mind… These updates to HARP apply only to people whose mortgage is currently secured by Fannie Mae or Freddie Mac...and whose loan was securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. So the chances are that people who have refinanced since May 2009 will not qualify to refinance under the HARP rev

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