Mortgage, Home Loan, Refinance, and Other Lending Services from PHH Home Loans

.MORTGAGE UPDATE for SEPTEMBER 3RD, 2010

After falling for several weeks, stronger than expected economic data caused mortgage rates to turn higher late this week. The much anticipated Jobs Report arrived with a surprise, showing 54,000 jobs lost during August, quite a bit better than the consensus estimates of 120,000 jobs lost. While the number still shows jobs lost, let's remember that a big part of this decline was from the elimination of 114,000 temporary census worker positions. There was a lot of anticipation about the jobs created in the private sector - and this number also surprised to the upside with 67,000 job creations, far better than the 44,000 originally forecast. Hourly earnings were also somewhat upbeat, rising by 0.3%. While this report was not great, it was a lot better than what we've seen and has to be viewed as encouraging. This report contradicts the arguments for deflation and a double dip recession.

After several months of housing data which has failed to meet expectations, this week's data contained relatively good news. Investors were expecting July Pending Home Sales to remain at June's record low levels, but instead they rose 5% from June. Pending sales are a leading indicator for the housing market, so home sales may pick up a little in coming months. The chief economist of the National Association of Realtors (NAR) expects "improved affordability conditions" to boost home sales, but warned that a housing market recovery will be a "long process."

Rates for the new program will average approx .75% above current market rates but there is no monthly mortgage insurance. Call us to find out more.

Monday August 16^th Minnesota Housing will start offering their new 100% financing which will be a boost for our local housing market. To qualify you need to be a First Time Buyer or someone who has not owned a home for at least 3 years. Rates for the new program will average approx .75% above current market rates but there is no mortgage insurance monthly. Call us to find out more.

It's the time to pick up that phone and discuss your financial situation. Whether you are considering a purchase or a refinance we can help you make the right choices and offer advice that can save you money. Need help finding a Realtor? Ask us, and we will refer you to a seasoned Professional in your area!

Shelly Hanson, Senior Mortgage Consultant