Up...The sequel

Financial Markets

The bond market (where mortgage backed securities are traded) rallied ever so slightly Friday, as investors once again deemed US debt safer than European bond instruments.  The Dow Jones also ended higher which bucked the typical trend where the bond market and stock market trade in opposite directions.  Over the past month however, the stock market is up over 600 points, and mortgage backed securities are worse by 100 bps, which loosely translates into 1/4 % in rate or $2,000 in closing costs on a $200,000 loan. 

Southern Nevada Real Estate Related Data

Nevada ranked 2^nd in the nation for home value appreciation in December, experiencing a 15.3% increase in median priced home from December 2011….Nationwide, housing is up 8.3%.  The construction sector has added 98,000 jobs over the past 4 months, and the economy as a whole is starting to feel the positive effects of a recovering housing market.  Another article below discusses January 2013 numbers and points towards a 27% increase in the median priced home from January 2012….As the funny looking great Yankee catcher once said…”It’s Déjà vu all over again”….

http://www.lvrj.com/business/nevada-leads-u-s-in-spiking-home-prices-189970081.html

http://www.lvrj.com/business/las-vegas-home-prices-jump-27-percent-in-january-190365191.html

Wet and Wild is a few months away from opening!  To my knowledge, this has nothing to do with Southern Nevada’s real estate market or local economy, aside from maybe the few hundred part time jobs it brings, but pretty awesome nonetheless!

http://wetnwildlasvegas.com/

Have a great week!  For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

Latest Debate in DC and its affect on Mortgage Rates

“The ultimate measure of a man is not where he stands in moments of comfort and convenience but where he stands at times of challenge and controversy”.  –Martin Luther King

Financial Markets

Earnings Season is among us and is the driving force behind the recent bull market trend in the stock market.  The Dow ended the day at 13,649 as many of the blue-chip companies reported earnings that met or exceeded forecaster expectations.  Applying additional pressure on mortgage back securities is the debate on whether or not to raise the debt ceiling.  The most-simple explanation, an indication of elevated risk that the U.S. could default on its debt would have an adverse impact on mortgage-backed securities, which sends mortgage rates to the consumer upward.  With that, the price of mortgage rates worsened by about 25 bps over the past week.  This means that if you were paying say 1 percent of the loan amount to get an interest rate of say 3.5%, today you would pay 1.25% of the loan amount for the same interest rate. 

Southern Nevada Real Estate Related Data

“Shadow Inventory” is a key phrase that we all struggle to wrap our arms around for 2013, in terms of defining it and in terms of how much of it truly exists.  The Shadow Inventory has a direct and significant impact on business plans for the entire real estate community yet industry experts seem to have a difficult time agreeing on what the future holds for Southern Nevada.  Below is an article from the RJ with helpful data as it relates to Shadow Inventory in Southern Nevada.  A potential catalyst to the level at which shadow inventory would be released to the market is the anticipated modification of Assembly B ill 284, which would enable banks to foreclose on delinquent home owners quicker and easier. 

http://www.lvrj.com/business/valley-s-shadow-inventory-smaller-than-forecast-187646321.html

Below, a great article about the ripple effect benefits of what a newly built home provides to the local economy.  Statistics that caught my eye…”For every 3,700 single-family homes built creates 6,384 temporary jobs…which go on to create an additional 3,860 permanent jobs”.  The revenue a new home brings in to local governments is also a noticeable benefit, particularly when in the midst of significant budgeting challenges. 

http://www.lvrj.com/business/analyst-housing-recovery-to-continue-unless-government-screws-it-up-187218551.html

Have a great week!  For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

What does avoiding the Fiscal Cliff mean for me?

I want to wish you a Happy New Year’s and looking forward to working with you in 2013! 

Financial Markets

The latest and greatest played out economic term, “Financial Cliff”, for the most part came to a conclusion this past week and had a dramatic affect on the markets.  The Dow Jones skyrocketed 400 points on the news that President Obama signed the bill to raise taxes and cut spending. (401k’s win!).  As is often the case when stocks rally, the bond market had a miserable day, and selling pressure sent the FNMA 3.0 coupon (bond most directly related to 30 yr fixed mortgage) down 100 bps.  This essentially equates to a .125% to .25% move in interest rates for 30 yr fixed mortgages. (borrowers lose!)

Much of the tax increases apply to those making $400,000 or $450,000 for married couples.  The tax rate increases from 35% to 39.6% and capital gains increases from 15% to 20%.  However, buried in the bill are limits on tax deductions for those making more than $250,000.  Social security withholdings goes back up to 6.2% (of the first $112,500) AND Medicare Tax goes from 1.45% to 2.35%, again, only applying to married couples making over $250,000 or $200,000 for singles…I guess it’s time to get on match.com….

As most of you I am sure have heard, included in the bill is the extension of the mortgage debt relief act. 

Southern Nevada Real Estate Related Data

Nearly 4,000 home sales transpired for the month of November, and new home builders accounted for nearly 15% of the sales. (596). Developers also pulled 478 permits for the month, nearly twice as many as November 2011.  The median priced home approached $133,000, up from $114,000 this time last year (17%). 

http://www.lasvegassun.com/news/2012/dec/26/las-vegas-housing-market-continues-upward-trend/

Have a great week!  For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

HARP 2.0 and builders flourish in Southern Nevada

HARP 2.0 Update:

First Cal is proud to announce the release of the most aggressive HARP refinance program available amongst any retail mortgage companies.  We will now approve any LTV, for any occupancy, regardless of expanded level approval types.  (Many lenders won’t lend if the loan to value is too high, if it’s not owner-occupied or if the loan receives and Expanded Level 1, 2 or 3 approval).  We will also provide financing if the loan is owned by Freddie Mac at an unlimited Loan to Value.  If a client has been turned down for a refinance recently, please have them contact me or visit my website.    

Financial Markets

The Dow Jones, and all 3 stock indices for that matter, ended the week up considerably, the Dow landing at 13,306.  Here’s a twist for you (I know, super exciting stuff)…It was a disappointing jobs report that stocks rallied around today.  A weak jobs report does two things: 1) Increases the chances that the Fed will be pressured into yet another round of stimulus or quantitative easing and 2) increases chances that we could see a change in leadership in Washington come November.  Mortgage bonds traded in the opposite direction as a result mortgage rates are up for the week by .125%.    

Southern Nevada Real Estate Related Data

No surprise home builders continue to reap the benefits of the lean and picked over supply in housing.  New home closings were up 49% in the month of July, with home builders selling 468 homes.  Prices also drifted upward, up 1.6% from July 2011.

http://www.lvrj.com/business/local-new-home-sales-gain-in-july-168737056.html

Have a great week!  For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

Unemployment rate/ Zillow study shows Las Vegas a smart buy

How are we closing purchase transactions in 15 days (Quadruple asterisk next to this one!)

Diamond Lane: When we submit a purchase file with all of the key ingredients for First Cal's underwriting department, the loan is appropriately coded, Diamond Lane.  This means that the turn time in Underwriting, Final Underwriting and Closing Department is not to exceed 24 hours under any circumstances. 

All of your clients should use Diamond Lane.  It takes some coordination and working together on everyone’s part upfront, but makes the transaction so much smoother. 

Financial Markets

The Dow Jones rallied nearly 220 points on Friday, the rally stemming from the jobs report that was released and the numbers were better than analysts forecasted.  163,000 non-farm payroll jobs were created for the month of July.  Unemployment rate actually inched up to 8.3% (up from 8.2%).  Economists predicted job growth of about 100,000 so even though UU Rate went up the report was enough to trigger a rally in stocks and a sell off in bonds, which drove mortgage rates up a tick. 

Southern Nevada Real Estate Related Data

A study from Zillow supports purchasing a home in Nevada vs. renting provided the home owner intends to stay in it or hold it for 20 months or more.  Las Vegas “break-even horizon” for rent vs. own exceeds all but 3 of the 200 metros in the study. 

http://www.lvrj.com/business/buying-vs-renting-pays-off-in-shorter-time-in-las-vegas-than-national-average-164858036.html

Have a great week!

Home values rise for 5th consecutive month!

June is in the books, and as stated in my previous weekly email, I am a “proof is in the pudding” kind of a guy.  My team and I closed 13 transactions this month.   The average time from application to docs out was 24.1 days.  8 had docs out in less than 22 days, 4 had docs out less than 15 days!  Of note, 2 VA loans had docs out in 14 and 21 days respectively.  I am happy to tell you, it’s not just speed we provide.  I was able to provide more aggressive financing packages than USAA (on 2 VA loans), Bank of America and I Mortgage for my clients.

Also, I am now a member of Rate Plug, a free service offered in the MLS.  If you are not linked up with a lender, please call or email me and would be happy to partner up with you so you can offer your MLS listings to your clients with important financing data. 

Financial Markets

The Dow Jones rallied nearly 280 points on Friday amid news…come on guys….you gotta know this by now……that’s right, Europe’s tentative solution to its debt crisis…I am sure this will be the last we have heard of market volatility and its relation to Europe’s credit concerns…(insert sarcastic smirk here).  Also making headlines are national increases in home prices and an uptick in new home sales and permits being pulled. 

Southern Nevada Real Estate Related Data

A 5^th straight month of rising median home prices caps off an encouraging May in home sales for Southern Nevada.  The median priced home reached $118,000, up 2.5% from last month and up 6% from May 2011.  The report states only 2,533 listings not in “contingent” status.  With nearly 5,000 transactions taking place in May, this leaves virtually a 2 week supply of homes on the market.  Builders sold 401 homes in May, and 1,617 year-to-date, up 23 percent from this time last year.  Builders continued its aggressiveness by pulling over 650 permits for the month as well. 

http://www.lvrj.com/business/local-median-home-prices-rise-in-may-160346535.html

Have a great week!

The Day the Supply of Homes Died.....

Two exciting product updates I wanted to make you all aware of:

·         97% conventional loan!  (great for flips or if non-borrowing spouse had recent foreclosure/short sale)

·         HARP 2.0.  Unlimited Loan to Value.  If the loan is owned by Fannie Mae or Freddie Mac, and the loan was taken out prior to May 31^st, 2009, we can refinance with rates in the high 3’s and low 4’s.

Financial Markets

The Dow Jones ended its best week of the year with a 93 pt gain, up over 400 pts for the week ending at 12,460.  Once again Europe’s debt crisis took center stage, the latest (and who really cares, it’s been dragging on for what seems like years) was that Eurozone leaders indicated that there would be a recapitalization of Spain’s banking system.  This came literally 1 day after Fitch downgraded Spain’s banking system 3 levels to “BBB”.  As is typically the case, mortgage rates increased by about 50 bps for the week (about .125%), as investors trade safe haven bond investments for the riches of more aggressive returns in the stock market.   Facebook ended the day at $27 per share.  (It’s IPO opened at $38 per share)

Southern Nevada Real Estate Related Data

Data we all know too well at this point (unless you have been asleep for the past 6 months).  Prices are up for the 4^th consecutive month, and up 1.6% from May 2011.  The number of single family residence sales are also up (3,413 for the month of May) nearly 10% from May 2011!  According to the article below, 17,346 homes for sale in the MLS and only 3,800 are not under contract.  My uncanny math skills tells me that we have roughly 1 month’s supply of homes available….Again, can’t underscore how encouraging it is for home builders.  There is actually a secondary benefit to the local economy, as home builders build more, it creates construction jobs and am sure you can all draw the parallel to how that helps the local economy.  The future relies heavily on how bill 284 will affect banks bringing the backlog of foreclosures to market.  If we have a tsunami of homes hit the market at once, we will most likely see a decline in prices.  If we experience a trickle or even flow, we can expect slow steady appreciation in home values. 

http://www.lvrj.com/business/sharpened-interest-bidding-wars-send-up-las-vegas-home-prices-158053095.html