Sterling, MA

Rates Have Hit All-Time Low Levels Again! In case you haven't caught the news, home loan rates have done it again, dropping to their lowest level...ever. Not only has the 30 Year Fixed rate returned to its lowest all time level, rates across the board are at their lowest levels. Yes, that means, go ahead and choose your flavor – 30 Fixed, 15 Fixed, 5/1 ARM or 1/1 ARM – all loan types hit their lowest levels of the year! For the weekly Freddie Mac survey of all lenders, this is the first time that all have been at their lowest level. You must understand, though, that rates are artificially low! Last November, Ben Bernanke and the Fed put into place a program to lower rates. That program though is nearing its end, as the Federal Reserve has purchased over $1 Trillion of mortgage backed securities this year and with less than 20% of allocated funds left in the program, rates are sure to increase. The only questions remaining are by how much and when. The chart below shows the 30 Year Fixed Rate over the last 11 months. The first red arrow shows what took place when interest rates shot up in May, rising nearly 0.75% in a matter of days. And just as when the holidays come and go this month, the rates that are available today are likely to take off as well, only this time for good. Interest rates that were in effect prior to the implementation of the announcement of the Fed's program last year were well above 6.00% and a return to those levels cannot be ruled out. If you are looking to refinance or currently shopping for a loan, lock your loan quickly to take advantage of the lowest rates we are likely to ever see in the future. Remember, the reason I wanted you to see where rates have been this year is also to see how quickly they can rise. If you would like to know how I can help you, call me today. Waiting could cost you an opportunity to have an even bigger smile on your face when you say "Happy Holidays!" this month. Dana Bain President Premiere Mortgage Services Inc. www.BainMortgage.com 978-422-2311 ·

http://www.bainmortgage.com/MortgageMarketWeekInReview Newsletter-November 16th, 2009 Provided by Dana & Robin Bain Dana Bain Premiere Mortgage Services www.BainMortgage.com 11 Malvern Hill Road Sterling, MA 01564 Phone: (978) 422-2311 Fax: (978) 422-2313 E-Mail: dana@bainmortgage.com Market Comment Mortgage bond prices rose last week pushing mortgage interest rates lower. The Fed spent another $45 billion buying mortgage bonds between November 5th and the 11th. For all the criticism the Fed receives for the handling of the economy, they do deserve credit for keeping mortgage interest rates low throughout this year. How it all plays out in the long term is uncertain. The record Treasury auctions continued to be absorbed in trading without any major problems. For the week, interest rates improved by about 7/8ths of a discount point. The consumer price index data Wednesday will be the most important release this week. Producer price index data along with retail sales data will set the tone for the start of the week. Inflation indications would likely hurt mortgage interest rates but signs of tame inflation could help rates improve. LOOKING AHEAD Economic Indicator Release Date & Time Consensus Estimate Analysis Retail Sales Monday, Nov. 16, 8:30 am, et Up 0.9% Important. A measure of consumer demand. A smaller than expected increase may lead to lower rates. Business Inventories Monday, Nov. 16, 10:00 am, et Down 0.6% Low importance. An indication of stored-up capacity. A significantly large increase may lead to lower rates. Producer Price Index Tuesday, Nov. 17, 8:30 am, et Up 0.5%, Core up 0.1% Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates. Industrial Production Tuesday, Nov. 17, 9:15 am, et Up 0.3% Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates. Capacity Utilization Tuesday, Nov. 17, 9:15 am, et 70.8% Important. A figure above 85% is viewed as inflationary. Weakness may lead to lower rates. Housing Starts Wednesday, Nov. 18, 8:30 am, et Up 1.5% Important. A measure of housing sector strength. Weakness may lead to lower rates. Consumer Price Index Wednesday, Nov. 18, 8:30 am, et Up 0.2%, Core up 0.1% Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates. Leading Economic Indicators Thursday, Nov. 19, 10:00 am, et Up 0.4% Important. An indication of future economic activity. A smaller increase may lead to lower rates. Philadelphia Fed Survey Thursday, Nov. 19, 10:00 am, et None Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates. Tax Credit Extension The housing market received some good news when Congress recently acted on the pleas of housing sector professionals and extended the $8000 first time homebuyer tax credit. In addition, the program was expanded to include move-up buyers with a $6500 tax credit. The program now runs through April of next year. Prior to the extension the program was set to eclipse at the end of November. Even with the positive measure there is still some criticism the program does nothing to address the foreclosure problems that continue to plague the housing market. Unfortunately the cost to extend the credit is around $1 billion per month. This has politicians from both sides of the isle concerned. The new and move-up buyer incentives coupled with historically low interest rates make now a great time to purchase a home. Low rates also make it favorable for many current homeowners to refinance. MORTGAGE MARKET IN REVIEW

Newsletter-August 17th, 2009 Provided by Dana Bain Dana Bain Premiere Mortgage Services 11 Malvern Hill Road Sterling, MA 01564 Phone: (978) 422-2311 Fax: (978) 422-2313 E-Mail: dana@bainmortgage.com Market Comment Mortgage bond prices rose last week pushing mortgage interest rates lower. Relatively strong foreign demand for US debt along with tame inflation data helped rates improve. The consumer price index came in unchanged and the core, which excludes volatile food and energy prices, rose 0.1% as expected. The Fed left rates unchanged and continued to purchase billions of dollars worth of mortgage-backed securities in an effort to keep rates relatively low. For the week interest rates fell more than a full discount point. The producer price index Tuesday will be the most important release this week setting the tone for trading ahead. If signs of inflation emerge at the producer level rates will likely suffer. Housing starts and leading economic indicators data may also move the market. LOOKING AHEAD Economic Indicator Release Date & Time Consensus Estimate Analysis Producer Price Index Tuesday, Aug. 18, 8:30 am, et Down 0.2%, Core up 0.1% Important. An indication of inflationary pressures at the producer level. Lower figures may lead to lower rates. Housing Starts Tuesday, Aug. 18, 8:30 am, et Up 2.7% Important. A measure of housing sector strength. Weakness may lead to lower rates. Leading Economic Indicators Thursday, Aug. 20, 10:00 am, et Up 0.6% Important. An indication of future economic activity. A smaller increase may lead to lower rates. Philadelphia Fed Survey Thursday, Aug. 20, 10:00 am, et Down 2.0 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates. Existing Home Sales Friday, Aug. 21, 10:00 am, et Up 2.2% Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates. Market Analysis The two traditional approaches to market forecasting are fundamental and technical analysis. Fundamental analysis is an attempt to predict future price movements based on the most current economic data. It is based on the theory that economic data can provide analysts with an insight into how levels of economic activity can affect the supply of and demand for money, and thereby impact interest rates. In contrast, technical analysis is an attempt to predict future market movements based on past price movement patterns. Technical analysts typically use charts and graphs to find patterns or trends into potential future market movements. Technical analysis is based on the assumption that actual changes in economic activity precede the release of the corresponding economic data. Thus, technical analysts attempt to reveal hidden supply and demand factors by reviewing price and volume movements that are not supported by the release of the most current economic data. Another important factor of technical analysis is market sentiment. Market sentiment measures the emotions and expectations of investors in the market. Sentiment, like most emotions, changes often in a short span of time and is impossible to predict accurately. The inability of anyone to accurately predict the future makes a cautious approach necessary to protect against market volatility. The fact remains that mortgage interest rate are historically favorable. It is difficult to justify the risk in floating when the low rates currently available are a sure thing. Timing is one of the most important factors in success. Unfortunately, knowing the perfect time to lock in a loan is impossible until after the fact. While analysts constantly try to predict the future, the bottom line is they continually fall short in terms of accuracy. The good news is that the Fed has done a relatively good job of keeping rates favorable, but not without some serious spikes here and there. Without the Fed pouring billions into mortgage bonds, rates would surely be higher. MORTGAGE MARKET IN REVIEW Newsletter-August 17th, 2009