Moore Mortgage Solutions

Thank you for visiting my blog.

Let me start off with I am here to help you navigate the financial waters of mortgage lending. I have been in the mortgage industry for over 10 years.

Over the years, I have bought and sold houses as well as moved across the country and back selling one house while at the same time purchasing another one. I understand the stress of purchasing a home or refinancing your present loan. My goal is to provide you with outstanding service.

I would like this to be an informative site. If you have a question, please post it or email it to me. I will be more than happy to answer it for you. If I don’t have the answer, I will either look for or direct you in the right direction for the answer. Likewise if there is a subject you would like me to discuss, also please post it or email me at betsy@mooremortgagesolutions.com.

Remember I am here to help you through this process.

Until next time...

Betsy Moore

    Today, the Fed decided to cut the Fed Fund Rate by .25%, making the Fed Fund Rate 4.5%.

    What does this mean to the consumer? Your home equity line of credit, if based on the Prime Rate (Fed Fund Rate + 3% equals Prime Rate) and short term adjustable rate loans based on LIBOR index will see an immediate reduction in the interest rate in the coming weeks.

    Mortgage loans that have fixed rates and adjustable rates with longer terms are not directly affected by this cut. These rates are tied closely to the Mortgage Backed Securities that are traded on the Bond Market.

    Tomorrow the Personal Consumption Expenditures (PCE) and Core PCE will be released.

    Until then, make everyday an inspired one!

Betsy Moore

betsy@mooremortgagesolutions.com

    Today starts the beginning of all the economic news for this week.

    The only report that came out today was the Consumer Confidence Index. This index measures how consumers feel about the economy. The greater the number, the more likely consumers feel confident about the economy and will spend more. And visa versa, if it goes the other way.

    Today the Consumer Confidence Index fell to the lowest it has been in over two years. And some economic analysts feel that it will continue to go down into 2008.

    What does this mean? Since consumer confidence is low, they are less likely to spend which translates into a slowing economy.

    Tomorrow, the FOMC meeting adjourns in the afternoon. Economic analysts are split on whether the Fed will cut the key short-term interest rates. For now, all we can do is wait-and-see what they decide.

    In the meantime, the bond market is holding its own.

    Until then, make everyday an inspired one!

Betsy Moore

betsy@mooremortgagesolutions.com

This week is loaded with highly important economic news starting on Tuesday and with multiple releases on several days. With all of this news being released, it will make for an interesting week.

• Tuesday: Of moderate importance is the Consumer Confidence Report. This measures the confidence level of 5000 consumers across the country in nine census divisions.
• Wednesday: Wednesday starts with multiple reports being released. The most important of them will be the FOMC Meeting at 2:15pm EST. It is expected that the Feds will once again cut the Fed rate. A Fed rate cut may initially help the Bond market before the Bond market will drift lower. Again, remember, when the Bond market goes down, mortgage rates go up as that means money is flowing out of the Bond market into the Stock market. In other words, less money in the Bond market to lend for mortgages.
• Thursday: Thursday, like Wednesday, brings several important economic reports being released. The most important of them will be the Personal Consumption Expenditures (PCE) and Core PCE. The Core PCE takes out the volatile food and energy components out. This report is the favorite of the Federal Reserve to measure inflation.
• Friday: Another day of several reports, all reporting on payroll (hourly earnings, average work week, non-farm payrolls) and the unemployment rate.

So in all, it should be an interesting week. As these reports come out and affect the markets, I will alert you as to what is happening.

Until then, make every day an inspired one!

Betsy Moore

betsy@mooremortgagesolutions.com

    This week there are six economic reports coming out-all Wednesday to Friday. That makes for a pretty tame beginning of the week as long as investors don’t start putting their money into stock and taking it out of bonds.

    Three of those six reports are of moderate to high importance to the markets:

• The sale of the 5-year Treasury bond will take place on Thursday which will tell us how interested investors are in bonds by either selling or buying them.
• The Durable Good Orders which is a measure of orders placed domestic manufacturers for immediate and future orders of factory products. This tells us how committed companies are on investing capital on the future growth of their companies. A durable good is one that lasts over 3 years.
• The September’s Existing Housing Sales and September’s New Home Sales will come out Wednesday and Thursday, respectively. They will give us an indication of how strong the housing sector is and what the mortgage credit demand is. If these reports vary greatly from what the analysts’ forecasted, we could see a change in mortgage pricing.

    Remember as money moves into bonds, mortgage interest rates float down. If money flows out of bonds, mortgage interest rates float up.

    If there are any major changes in the market, I will be sure to update.

    Until then, make every day an inspired day!

Betsy Moore

betsy@mooremortgagesolutions.com