Weekly Preview 2/27/2012

Forwarded exclusively by:	Jeff Eisenberg Southern Oaks Mortgage, Inc. Office: 661-964-2600 Email: jeff@somloans.com website: www.somloans.com
When the RIGHT loan matters!
Sunday, February 26, 2012
This week; a number of economic releases that will dominate markets.  The Europe debt mess is presently dormant in the sense of nothing in the way of market-driving news, the same as last week. Greece will get  its money the will eventually default but for now markets have generally    discounted Greece and Europe’s problems. The focus now in the bond  and equity markets is the status and outlook for the US economy.  Interest rate markets are wound tight as a spring. Based on the 10  yr treasury, driver for mortgage markets, not much change in rates  last week. Technically the 10 yr is presently losing its support at these  levels but still holds well so far. This week’s economic releases are significant for the outlook on  the economy, thus the bond market. There are a number of key  releases this week, most expected to have improved from last  month.(see economic calendar). Ben Bernanke will be speaking on Wednesday, other Fed officials have been talking about potential  of another easing move from the Fed. There is little appetite for  another round of MBS purchases or any other easing moves as  long as the economic outlook continues to be strong; the Fed    doesn’t need to add more to its balance sheet as long as the  economy doesn’t roll over. Although the Friday is March 2nd the employment report won’t be released until March 9th. There is the potential for wider market movements this  week compared to last week. Interest rates are vulnerable  to selling if equity markets rally this week.

Mortgage Interest Rates - All-time Low's!

It is shocking to me how low interest rates have been going lately.  The one thing that amazes me is the fact that internet mortgage companies advertise even lower rates.  Why is that?  Well, honestly, to get you to call them......Then when they have you on the phone, for some reason or another, the interest rate goes up because, oh, you have to have a loan-to-value ratio of 60% or  below, your FICO score has to be 780 or above, and you have to have impound accounts whether you want them or not.  Oh, and also you must have a loan amount above $300K........kinda like that commercial where the lady goes into buy something from a clothing store and the clerk offers her a discount card and all of a sudden this man shows up and states all these conditions she must meet to get the discount, so she just hands back the discount offer.......typical.  Makes me sick!  Oh well, what can you do?

For the best rates on mortgages, call me, 661.964.2600
Jeff Eisenberg
Broker
Southern Oaks Mortgage, Inc.
jeff@somloans.com
http://www.somloans.com/
http://www.loanmanjeff.com/

Southern Oaks Mortgage's New Webpage (New and Improved!)

Check out our new and improved site:  http://www.somloans.com/
would love to hear your feedback.

Thanks,
Jeff Eisenberg
President
jeff@somloans.com
http://www.loanmanjeff.com/

Crazy Day of Trading

Yesterday, if you aren't aware of how volatile the market was, a big error occurred.  Someone pushed the wrong button on a sell order and the market just went haywire.  The fixed it, but boy, what a ride.  Today, we are currently down 3 basis points for the day, but were much higher this morning.  There was an alert to lock today, however, if you aren't closing escrow in the next to weeks or so, floating may prove to be the best option.

Your Eyes, Ears and Voice in Mortgage Finance,

Jeff Eisenberg
http://www.somloans.com/
http://www.loanmanjeff.com/
jeff@somloans.com
661.964.2600

Mortgage Backed Securities having a GOOD day!

We are up about 44 basis points on the MBS for the day.  We've seen two price improvements throughout the day.  Rumor has it that the government will extend the $8000 tax credit and also make it available to people who already own, but are moving up.  We'll have to see how that pans out, but at least we are moving in the right direction.

For more information, call Jeff Eisenberg  661.964.2600 x 104
http://www.southernoaksmortgage.com/
http://www.somloans.com/
http://www.loanmanjeff.com/  for my  book
www.twitter.com/loanmanjeff

Rates are at all-time lows!

The Fed announced that they will lower the Fed Funds rate down to a target range from 0 to .25%. This sparked a rally in the stock market and in the mortgage bond market. Mortgage interest rates went down to their lowest levels in years. Rates are hovering around the high 4's to low 5's. Is it possible to see rates drop even further? Only time will tell. Now is the time to refinance or purchase, so don't let this amazing opportunity slip by. Call 661.964.2600

Remember to visit our website at: www.southernoaksmortgage.com or www.somloans.com

The Changes Just Keep Coming!

Well, guess what? Another road block. FHA just came out with a new guideline regarding the rent of your current residence. The Buy & Bail policy. If you currently own your home and want to rent it out to buy another one, in the past, you'd be able to use 90% of the rent to offset the payment so you could qualify for more. The new rule basically says, you cannot do this unless you have 75% equity in your current home, proven by an appraisal within the last 6 months or you are relocating jobs or residences out of the area. So if you are in a situation where you don't have any of these conditions met, you will have to qualify for the new home provided you can qualify with both debts against you.

visit my site at www.somloans.com

The Time Has Finally Come!

Southern Oaks Mortgage, Inc. is officially approved to originate FHA loans.

visit my site at www.somloans.com

Rates!!!

Wow! The fun never stops. Rates again got better today. Now is the best time to consider a refinance or purchase! Call me for a Free quote!

visit my site at www.somloans.com

New Conforming Loan Limits for 2009!

Finally, someone has heard our prayers. The new conforming loan limit will be $625,500 in high cost areas like, Los Angeles, Orange & Ventura Counties. This is an increases from the old conforming limit of $417,000.

visit my site at www.somloans.com

Mortgage Market - moving in positive direction!

Mortgage Bonds are trading slightly higher and have made a break above the important ceiling of resistance at the 200-day Moving Average. A convincing break above this important barrier would signal a major trend shift towards lower rates. It is highly probable that the results of tomorrow's Jobs Report will be the deciding factor whether Mortgage Bonds can make the break above the 200-day MA or if they will be pushed back towards worse pricing. Our Jobs report strategy below lays out our thoughts.
Some good news on Productivity is helping Bond prices this morning, as productivity for the second quarter was revised higher to 4.3% from a previous reading of 2.2% and well above expectations of 3.5%. Higher productivity is good news for the economy and inflation as it shows employers are able to squeeze more output from hours being worked. And if employers can produce more goods from their existing workforce, without a need to hire or increase pay, it keeps wage-based inflation down. Within the Productivity Report, Unit labor costs -- a key inflation gauge - fell 0.5%, revised down from a gain of 1.3%, representing the biggest decrease since the third quarter of 2007. Lower Unit Labor Costs means less of a threat for wage-based inflation and this is good news for Bonds.
Initial Jobless Claims came in at 444,000, significantly higher than expectations of 420,000. And the ADP Report showed a loss of 33,000 private sector jobs, pretty much in line with expectations. After factoring in the usual 20,000 new government jobs added to the economy, the ADP Report suggests tomorrow's official Jobs Report will come in somewhere near -13,000. Expectations for tomorrow's Non-farm payrolls is -75,000.

--this comes directly from Barry Habib, The Mortgage Market Guide CEO.

Thursday, Sept. 4th - 1st Show

Sept. 4th at 10:30 am will be the 1st of 52 internet radio shows of the "Jeff Eisenberg's Mortgage Show". I will forward the URL once the show has been posted. Tomorrows topic will be the difference between a short pay and a foreclosure. Stay tuned...

Also, I'd love to hear any comments on the speech made by Republican Candidate for Vice President, Palin at the Republican Convention.