Moore Mortgage Solutions

    Since the historic takeover of Fannie Mac and Freddie Mac, the bond market has been enjoying a nice surge. What does that mean to you, the consumer, is the lowering of the mortgage interest rates.

    Interest rates have dropped about 0.25% to 0.50% over the last two days. Though there may be a good chance of better pricing or pricing staying around these levels for awhile, the trend never goes straight down. It’s a see-saw effort as it goes up and when it goes down.

    But with that said, if you have been just listening to the news, you would have heard that the price of crude oil is trading down near the $100.00 mark and the US Dollar is slowly getting stronger against the Euro Dollar.

    This means that inflation is moderating. And like I said in my last blog, if inflation is moderate, the Federal Open Market Committee (FOMC) that Bernanke chairs won’t raise short term interest rates at their next meeting on Tuesday, September 16^th.

    How does all of this affect you, the consumer? This may be the time to review your mortgage to see if this is the time to refinance. And if you are thinking about buying your first home or moving up, this may be the time to do so.

    To find out if this the right time for you, go to my Ready, Set, Go Program and sign up. Knowledge is power and knowing whether this is the right time, gives you options. Together, we can review your options and decide if this is the right time.

    In the meantime, please feel free to contact me with your questions or concerns about mortgage market.

    And please make each day an inspired one!

Your Friend in the Business,

Betsy Moore

206-331-2749

Ready, Set, Go Program

betsy@mooremortgagesolutions.com

    Yesterday, our Government seized control of Fannie Mae and Freddie Mac. The major reason for this bailout, the largest one ever in our history, was to support the housing market as well as to ward off financial turbulence on a global scale.

    Fannie and Freddie guarantees almost half of the country’s $12 trillion in outstanding home mortgage debt.

    In Henry Paulson’s (U.S. Treasury Secretary) press conference on Sunday, he stated, “Our economy and our markets will not recover until the bulk of this housing correction is behind us.” He continued to say that Fannie and Freddie’s solvency is critical to making that happen.

    The takeover of Fannie and Freddie has been what Wall Street has been hinting at for some time now. And it is hoped that this move will help the overall housing market to start to recover.

    This news is now filtering through the financial markets and will continue to do so over the next days and most likely weeks.

    So far this morning, the markets, both the stock and bond markets, are reacting favorably to this historic takeover.

    Please remember, our own housing market is still good. If you have concerns or questions about the housing market, please feel free to contact me.

    As always I am here to talk to you about your own home mortgage needs whether it be to qualify for a mortgage, to refinance your mortgage, or to buy up. Let’s together plan for your credit financial health future and wealth.

And please make every day an inspire one!

Betsy Moore

CMPS™

206-331-2749

Home of the Ready, Set, Go Program

    This week and next week will be short weeks for the financial markets. The market will close early this Friday, 2PM ET and next Monday is Labor Day.

    With the short week and several important economic reports being released over the next several days, we may be in for a bumpy ride on several of those days.

    The first of the reports this week is the July’s Existing Sales. Those numbers released already came in a bit higher than June’s but lower than year to date. This report hasn’t affected the bond market which is trading in the positive territory at the moment.

    The next report that could affect the market is the Federal Open Market Committee (FOMC) minutes. These are the minutes from their last meeting and where we see what each member said about the economy. Depending what was said, this report could move the market. This report will be released tomorrow.

    The other two reports being released at the end of this week are the revised reading of the 2^nd Quarter Gross Domestic Product (GDP) and the Personal Consumption Expenditures and its Core.

    In the meantime, if you have any questions or would like to talk about your mortgage needs or concerns, please do not hesitate to contact me. I am here to help you work through the process.

    And make each day an inspired one!

Betsy Moore

206-331-2749

betsy@mooremortgagesolutions.com

Home of the Ready, Set, Go Program

    Ah, quiet so far this week. But will it last?

    Yesterday, the Core Producer Price Index came in much higher than expected which should have made money move out of the bond market. But the bond traders didn’t react. They felt with the Housing Stats falling by 11% in July and crude oil down for August, inflation should moderate some in August.

    In other news, investors are watching for any tidbits to come from Fannie Mae and Freddie Mac. These two companies own or guarantee roughly half of all mortgages in the United States. They have been in the news a lot especially since the Housing and Recovery Act of 2008 along with their liquidity problems.

    Tomorrow’s economic report is the Philadelphia Fed Index. This index reports regional manufacturing purchases for the present month. And it can affect the market.

    In other news heard, Sacramento and Las Vegas look to have hit their bottom of their housing market and are seeing moderate increases in their housing prices. The question is whether this will hold and if so, will it spread to other parts of the country.

    But please remember, the Seattle area hasn’t had the huge losses that these markets have had. Yes, we are down a bit but not to the extent of those markets. I is still a good time to buy in this market.

    Please feel free to contact me with your mortgage concerns, questions about your mortgage or the market place. I am here to help you figure out what is best for your situation.

    And please make each day an inspired one!

Betsy Moore

CMPS™

206-331-2749

Home of the Ready, Set, Go Program

betsy@mooremortgagesolutons.com

    Will this be a fairly quiet week? With only one economic report whose impact is consider most likely to affect the market, we may have a fairly quiet one. But with that said, anything can happen.

    Tomorrow is the release of the July’s Producer Price Indexes (PPI) and these give us the inflation figures at the producer level. The more important one is the Core PPI as that stripes away the more volatile food and energy prices. The market is betting on a 0.2% increase and anything more than that could move the bond market into lower levels causing the mortgage rates to go up.

    Remember, inflation is the big bad wolf of the bond market causing the bond market to go down. When the bond market goes down, interest rates go up.

    Other reports being released this week are the Housing Stats and the Leading Economic Indicator both for July could impact the market if their figures are not what the market expects.

    Stock prices could influence the market more than anything else this week. As always, I will be keeping an eye on it for you.

    In the meantime, please feel free to contact me with your questions or concerns about your mortgage, purchasing a home, or whatever else you wish to discuss concerning the market.

    And please make each day an inspired one!

Betsy Moore

206-331-2749

Home of the Resdy, Set, Go Program

betsy@mooremortgagesolutions.com

    Did you buy a home this year? After April 9, 2008? Thinking about buying a home this year or next year? Before July 1, 2009?

    These are important dates to remember for first time home buyers. A first time home buyer is classified as someone who hasn't owned in a home in the past three years.

    Why are these dates, April 9, 2008 to July 1, 2009, so important? 

    In the Housing and Recovery Act of 2008 that was signed into law this past month, you may be eligible for the new tax so-called "refundable" credit. As a first time home buyer, you may be allowed to deduct up to 10% of the purchase price of your primary home not to exceed $7,500.

    If you live in the Seattle area and have or are planning to purchase a home between these dates, that could mean a total "refundable" credit of $7,500 for you and your family.

    This so-called "refundable" credit does have some interesting guidelines to it.

    First, it is payable back to the Federal government. This is done over a 15 year period and works out to be a little over $500 per year on the full $7,500. This credit will be accelerated if the home ceases to be your primary residence or is sold.

    Second, there is an income restriction for the full credit. For a single person, it is $75,000 and for jointed returns, it is $150,000. And yes, there is a phase out for higher income levels up to $95,000/$170,000 respectively.

    Third, as always when dealing with taxes and especially new tax law, please talk to your CPA or tax person about this. This is one deduction you don't want to miss out on if you are allowed to take it. Also your CPA or tax person will be about to tell you about the new standard deduction for non-itemizers which has been increased by $500 for single/$1000 for joint returns for their property taxes.

    This is a great time to purchase a home. Don't miss out on this opportunity to receive this "refundable" credit.

    In the meantime, please feel free to contact me with your housing questions.

    And please make each day an inspired one!

Betsy Moore

206-331-2749

betsy@mooremortgagesolutions.com

    Yesterday, the Federal Open Market Committee released their minutes from their two day meeting.

    Bernanke and Company decided to hold the Fed Fund Rate at 2% though "Loose Lips" Fisher voted for a hike in the rate. Fisher has consistently over the last several meetings voted for a rate hike. He feels that inflation could be a problem in the near future.

    The press release also stated that the committee feels that the financial markets and the tight credit conditions are causing stress and stunting the overall economic growth in our country. But with the changes in the Fed policy and the different measures put into place over this past year, economic growth should slowly take hold.

    As to inflation overall, which does cause the mortgage interest rates to go up, the Fed is concerned about it but not concerned enough to indicate a Fed Fund Rate hike in the near future. This, of course, caused the stock market to surge at the end of the day and the bond market to drop. And mortgage interest rates did moved a bit higher.

    And a little bit of important news to the FOMC, Elizabeth A. Duke was sworn into the committee this week and she voted in this week's meeting. Several of the FOMC members will either be retiring or their terms will be up so filling these seats are important. It is the President who nominates these members with Congress approving them.

    Please feel free to contact me with your concerns about your mortgage needs. I am here to help you.

    And make each day an inspired one!

Betsy Moore

206-331-2749

betsy@mooremortgagesolutions.com

    We are most likely in for another volatile week with some days more so than others.

    The most important item on the agenda this week happens on Tuesday. The Federal Open Market Committee (FOMC) or what is commonly known as the Fed Meeting with Bernanke and Company will hold their scheduled meeting.

    At the conclusion of this meeting (2:15PM EST), the FOMC will issue a statement. None of the economic pundits feel this meeting will result in a rate hike. But the bond traders and everyone else will be dissecting this statement for any indication of rate hikes and inflation or not. If the Fed indicates concerned about inflation then the bond market will act negatively. And likewise if the Fed isn’t, then the bond market should rally and mortgage rates will see a dip.

    Other reports coming out that may affect the bond market will be June’s Personal Income and Outlays comes out prior to the Fed statement. This could move the market if we see sizable increases.

    The June’s Factory Orders data and the Employee Productivity and Costs Data come out respectively on Tuesday and Friday. Unless there is significant movement in this data, neither should have an effect on the market.

    There will be two auctions this week on Treasury notes-the 10-year Note and the 30-year Note. They will be held on Wednesday and Thursday. These will move the market only if there is lackluster interest from investors.

    In the meantime, I am available to answer any questions on your mortgage, if this is a good time to buy or refinance a home. And don’t forget to check out my Ready, Set, Go program.

    And please make each day an inspired one!

Betsy Moore

206-331-2749

betsy@mooremortgagesolutions.com

www.mooremortgagesolutions.com

    This morning, President Bush signed the “Housing and Economic Recovery Act of 2008.”

    The main part of the bill to me is the new program created at FHA to help families facing foreclosures called “HOPE for Homeowners Act of 2008.”

    This program is an attempt to stem the tide of foreclosures for homeowners by refinancing loans into FHA loans while at the same time, the FHA will share in the future appreciation of the home.

    The other component of the “Housing and Economic Recovery Act of 2008” is raising the loan limit that Fannie Mac and Freddie Mac can serve to $625,000 in the high cost areas. The Seattle/Tacoma area is considered a high cost area.

    And last but not least, the bill will assist our returning soldiers if they have gone into foreclosure as well as with improvements and structural alternations to their homes for service-connected disabilities.

    To learn more about the “Housing and Economic Recovery Act of 2008”, the Senate has published a four page summary.

    As parts of this bill becomes more readily available to the public and as more banks embrace this, I will, of course, be updating you.

    In the meantime, if you should have any questions about your mortgage, the mortgage industry or would like to chat more, please feel free to contact me.

    And make each day an inspired one!

Betsy Moore

206-331-2749

www.mooremortgagesolutions.com

betsy@mooremortgagesolutions.com

    Covered bonds may soon be the new buzz word whereas mortgage backed securities have become the bad boys of the mortgage industry.

    Why the buzz?

    Yesterday, Treasury Secretary Henry Paulson announced that the Treasury along with the country’s four largest banks will attempt to jump-start covered bonds in the U.S.

    Covered bonds first appeared in Germany in 1770 and are called Pfandbriefe. Other countries followed each with their own guidelines. Then in 1988, European Union set up guidelines for these covered bonds to unify the various covered bond systems.

    Covered bonds (can be a pool of mortgages) are similar to mortgage back securities except the banks keep them on their books. They can borrow against them to free up money. And if the bank fails, the lender has preferential claim to them.

    Whereas mortgage back securities (also a pool of mortgages) are assets that a bank can sell. It is typically an off-balance sheet transaction and the risk associated with them is also eliminated to that bank. The bank sells it and gets cash for it.

    The problem has become that these mortgage back securities’ value has gone down. The banks can’t sell them for what they were worth to get them off their books. Without getting them off their books, the banks can’t lend more money for mortgages.

    What does this mean to you and me?

    Without infusing more available money into the market, banks are having a hard time finding ways to raise cash to lend money for mortgages. And without money to lend, the housing market will only get worse.

    The above is a very simplistic explanation. To learn more, go to these links: Covered Bond Can Rebuild America,and What is a Covered Bond.

    In the meantime, please feel free to contact me with your mortgage questions and needs.

    And make each day an inspired one!

Betsy Moore

206-331-2749

www.mortgagesolutions.com