LOWEST Mortgage EVER 10 year CRASHES

MBS Recap | 3:59PM CALL C G now for a savings mortgage quote (949) 784-9699 [app.mbslive.net]Watch the Video[app.mbslive.net] 10yr yields traded well into the 1.3's, surpassing previous low of 1.381 No specific motivation at home or abroad, though there are several supporting actors It's the big-picture "global growth concerns" that get us in the vicinity of all-time lows More focused considerations push us around once we're there. If you think about all-time lows in rates as a far away city, "global growth concerns" (GGC, to save space) would be like the plane that gets you there and the day-to-day economic headlines would be like the rental car you drive around town.  I bring this up because in these cases, we find ourselves talking about "all-time lows" as if they're somehow driven by the shorter-term considerations. For instance, there was weak data in China overnight, a big drop in oil, more weakness in UK currency, slumping stocks, and ultimately weak data in the US this morning.  Did these things cause today's all-time lows?  Not even remotely!  They merely pushed markets around a town they wouldn't even be in if it wasn't for the jumbo jet (aka, GGC). MBS continue to underperform the massive bond market rally, which is pretty normal when Treasuries are pushing all-time lows or even if they're just making big moves lower.  One thing to keep in mind is that MBS prices aren't even close to being back to 2012 levels.  That's a factor of the Fed's decaying MBS portfolio among other things and it's been happening very slowly, steadily, and predictably since markets worked out the initial volatility surround the 2012 QE3 announcement.   All that to say, yes, 10yr yields hit new all-time lows, but we're not even close to expecting mortgage rates to follow suit without MBS gaining about another point in Fannie 3.0s.

Today's Alerts and Updates

Find Your Garden Zone

Orange County has a couple different USDA hardiness zones
Mine is 10a
Here's a link that is interactive
to the United States Department of Agriculture Map
enter your zip code

http://planthardiness.ars.usda.gov/PHZMWeb/Default.aspx

Low Rates

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The stock market’s plunge following the Brexit vote was bad for most people’s retirement accounts but good for those looking to refinance their mortgage. Even as the market has started to recover its losses and the flight to bonds’ safety has eased, home loan rates remain down.

Despite the low rates, growing pessimism over the direction of the economy is spilling over into home-purchase sentiment. Pending home sales – those deals that are under contract but have not closed – declined in May, marking their first annual drop in nearly two years. Rates may be low, but not many people are rushing out to make a big purchase such as a home with so much economic uncertainty. The group most likely to benefit from low rates are homeowners seeking to refinance.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average plunged to 3.48 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.56 percent a week ago and 4.08 percent a year ago. Since the beginning of the year, the 30-year fixed rate has plummeted nearly 50 basis points. (A basis point is 0.01 percentage point.) It has fallen 18 basis points in the past month alone.

The 15-year fixed-rate average sank to 2.78 percent with an average 0.4 point. It was 2.83 percent a week ago and 3.24 percent a year ago.

The five-year adjustable rate average dropped to 2.70 percent with an average 0.5 point. It was 2.74 percent a week ago and 2.99 percent a year ago.

[Mortgage applicants may benefit from changes in credit-scoring system]

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Trashes Dodd Frank

Burned Kettle

Calling the Dodd-Frank Act a “negative force,” presumptive Republican presidential nominee Donald Trump says he will unveil a plan to overhaul the controversial Wall Street reform law that was passed in 2010 in response to the crisis.

While he did not disclose specific changes he would  dismantle Dodd-Frank.

“Dodd-Frank has made it impossible for bankers to function,” Trump said “It makes it very hard for bankers to loan money for people to create jobs, for people with businesses to create jobs. And that has to stop.”

The presumptive Democratic presidential nominee, Hillary Clinton, was swift to respond to Trump’s stated intention to overhaul Dodd-Frank. Wednesday morning, Clinton tweeted, “Latest reckless idea from Trump: gut rules on Wall Street, and leave middle-class families out to dry.”

I'm not sure either one knows what they are speaking about. Dodd Frank was a well meaning but stupidly executed plan. Dodd Frank made the big banks richer and the little guy not to get a mortgage. Dodd Frank did not get the crooks and liars out of mortgage banking, the tin men sales people moved to loan modifications, those who couldn't pass a knowledge test moved to sell cars or work under someone else's license. I challenge Borrowers who say they had no idea their payment might go up. I do admit that African Americans were preyed upon by some lenders, who gave them higher rate loans. Of the thousands of Option ARM loans I closed I have a tough time convincing a Borrower whose rate is now under 3% but has to make principle payments to refinance.

Republicans have been trying to roll back Dodd-Frank ever since it was passed in July 2010. Lately several bills aimed at chipping away at the law have gained traction in Congress. In mid-April, two  bills passed in the House Financial Services Committee; one to repeal Dodd-Frank’s bailout fund for large, complex financial institutions and one to put the Consumer Financial Protection Bureau’s spending on a budget in an attempt to make the Bureau more accountable to taxpayers. CFPB has become the gorilla in the day care center.

Rep. Jeb Hensarling (R-Texas), Chairman of the House Financial Services Committee, recently told DS News that “America needs a new vision—a new model for financial reform—because the Dodd Frank Act is a failure.”

Democrats have generally been fiercely protective of Dodd-Frank and highly critical of Republican efforts to undermine it. Rep. Maxine Waters (D-California), ranking member of the House Financial Services Committee, said of those two bills that passed in the Committee in mid-April, “Both of these bills, if enacted, would take our financial system back to September of 2008, when regulators did not have the tools to protect consumers or the broader economy from financial sector ruin. It would take us back to a time when we were hemorrhaging nearly 800,000 jobs a month, household wealth dropped by $13 trillion, and millions of our fellow Americans were facing foreclosure, eviction, and potential homelessness.”

Where is our country going?

Tip if your kettle gets black from propane gas not being mixed right- Fells Napha soap on the pot can help. Rather than just calling the kettle black