Market Update Archives

Market Update – TargetRate.com

2096

Happy New Year.

Interest rates continue to be at all time lows. Here is a sample of some loans we completed in December.

1. Rate and Term Refinance for $400,000 on a 15 year fixed. Rate was 2.25% with 0 points.
2. Cash out refinance for $600,000 on a 30 year fixed. Rate was 2.75% with 0 points.
3. Purchase 80% LTV for 1.1MM on a 30 year fixed. Rate was 2.68% with 0 points.
4. Refinance, Cash out for $150,000 on 30 year fixed. Rate was 2.72% at a cost of $350.00.
5. Stated Income refinance, rate and term for $480,000. Rate was 3.125% with 1 point fee.
6. Rate and Term refinance for 1.5MM on 30 year fixed. Rate was 2.875% with ½ point.

If you would like to see how much money you can save please schedule a confidential appointment with me today.

To discuss your confidential scenario please CLICK HERE to send an appointment or email.

Thank you,

Mitch Lichterman

Vice President-Broker

www.WallStreetFundingOfAmerica.com

Mitch@wallstreetfundingofamerica.com

310-478-4999 Direct

310-529-4944 Cell

310-893-6462 Fax

mitch.lichterman Skype

News

MARKET UPDATE

7 years agoMitch Lichterman0

1656

Fed just concluded their 2 day meeting and as expected they kept the Fed funds rate the same but in their announcement they indicated no rate hikes for the rest of 2019 and they downgraded the economy outlook from 2.2% to 2.1% GDP. Keep in mind that the White House has been saying GDP will be at 3% so there’s a huge disconnect there. Inflation is totally muted both here and abroad.

In regards to the balance sheet for the Fed they indicated that in May they will only let $15 billion in Treasuries fall off the balance sheet and reinvesting the other $15 billion into treasuries (they are currently letting around $30 billion a month fall off the balance sheet so basically as of May they will cut that in half AND by Sept or October they will stop reducing their balance sheet on both treasuries and mortgage backed securities.

$20 billion in mortgage backed securities currently being run off each month until Sept or October so no reinvestment into more MBS.

Mortgage backed securities are rallying big time right now and the 10 year treasury is down to 2.54%.

If you have a question about mortgage rates or loans in general please schedule a consultation by clicking HERE.

Mitch Lichterman – Loan Originator-TargetRate.com
Phone:310-478-4999
NMLS#:274609
DRE#:01952045
Email:Mitch@TargetRate.com <mailto:Mitch@Okolia.com>
GA #56363
WY #MBL-3140

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How can you find the right loan Program

7 years agoMitch Lichterman0

1680

Hi,

I’ve been sending you emails about the home ownership and the positive steps you can take. Maybe you are ready to look at homes or maybe you are still unsure about whether you can qualify for a mortgage.

There are so many confusing things about buying a home. The process is complex, there are too many details and there’s too much at stake if you make the wrong decision.

This causes many people to feel overwhelmed and financially unprepared. I understand how you feel and believe you shouldn’t have to go through this process alone.

Will you continue to be a renter? Check out this link and see why buying a home might make all the difference.

When you work with us, you can be confident that you will make the right decision, even if that decision means you continue to rent.

Feel free to visit my site, **http://path2buypartner.com/ashley-novak** to learn more about working with us and to download your free copy of “The 4 Things To Know Before Buying A Home.”

Whether you’re looking to buy in 5 months or 5 years, the most important thing to do first is to get a plan in place – we can help!

When the time is right for you, I can introduce you to Mitch Lichterman. He will be able to determine how close you are now to being home buyer ready and can help you set a plan to become homeownership eligible.

If you have any questions or concerns, please feel free to contact me.

Lender Partner
Mitch Lichterman – Loan Originator-TargetRate.com
Phone:310-478-4999
NMLS#: 274609
DRE#:01952045
Email:mitch@targetrate.com

News

Market Update

7 years agoMitch Lichterman0

1603

Market Update

We had over $113 billion that the Treasury auctioned yesterday and today and so those went well but that’s a lot of supply coming to the market. Next we have the Feds meeting today and tomorrow with their announcement around 11am on Wednesday. There’s almost a zero percent chance of them raising short term rates but like always it’s what they say in their announcement that can move the markets up or down. Now remember back during the mortgage meltdown when the Feds came up with “QE” (Quantitative Easing) where they couldn’t lower short term rates any less as they were already close to zero so they needed to do something to get the economy back on track so they came up with “QE”. This was the Feds buying large quantities of mortgage backed securities/bonds and treasuries which led to lower rates directly on mortgages, car loans, business loans, credit cards, etc.

So when the Feds stopped QE a few years ago they had well over a trillion dollars of these securities and if they started selling those securities then rates would have shot up so they initially just reinvested those securities that matured (principal) and then they started to gradually sell off bonds and treasuries each month which is why rates/yields have gone up the past couple of years. This part was referred to as “QT” or Quantitative tightening.Why am I bringing this up? Because there are some rumors that the Feds may announce cutting back on QT and if they did that then you would see both stock and bonds/treasuries rally with mortgage rates being one of the benefactors. Of course this is just a rumor at this point but the mere fact it is out there should be telling you that the lack of inflation is real and there is a slowdown occurring (how much is debatable). I’m not really sold at this point that the Feds would make this announcement now but if data continues to come in soft and inflation subdued then the chances increases down the road.

Wednesday is the ADP employment report (about 170k jobs created expected), Thursday is the Employment Cost Index which is an inflation report and one of the favs of the Feds and then Friday is the big as always Unemployment report where 160k new jobs are forecasted along with hourly earnings up by 0.2%, with unemployment rate staying at 3.9%. The danger in the employment report is that there is a chance that these numbers come in below what is forecasted which normally would be great for rates but the markets may dismiss because of the bad weather in most parts of the country, the government shutdown and the huge previous numbers in November.Please feel free to email or call me with your confidential scenario.

Mitch Lichterman
Lender Partner
Direct:310-478-4999
Email:Mitch@TargetRate.com
NLMS #274609