Rate Comparison vs. Wells Fargo and Bank of America

Professional Mortgage Source LLC - 4.125% with 0 Origination and Closing Costs of $0
Wells Fargo - 4.25%  with 1% Origination and Closing Costs of $2,000.00
Bank of America - 4.125% with 1.25% Origination and Closing Costs of $1100

Assumptions: 30 Year Fixed, Value=$400K, Loan Amount=$300K, Fico=740

Why spend the extra thousands of dollars in points and closing costs when we can do your loan and it will end up with Wells or B of A anyway and can close in less than 30 days.

Mortgage Market News for the week ending August 26, 2011

No Surprises from Bernanke

It was another volatile week for mortgage rates. The primary factors influencing rates roughly offset each other, though, and mortgage rates ended the week just a little higher.

A wide range of economic news caused investors to either add or reduce risk at a rapid pace this week. News which generally encouraged increased exposure to risky assets helped stocks and hurt mortgage rates early in the week, while the opposite took place later in the week. Mixed US economic data, continued concerns about European debt, a highly anticipated speech from Fed Chief Bernanke, and uncertainty about the impact of Hurricane Irene all contributed to the daily volatility.

In Friday's speech, Fed Chief Bernanke gave no hint of any change in Fed policy, disappointing some investors hoping for looser monetary conditions. He stated that at its September meeting the Fed will consider whether additional monetary stimulus measures are called for, but that fiscal policy changes by lawmakers are needed to help the economy and the labor market. Following the speech, the consensus view is that the Fed is unlikely to make significant policy changes for a while.

Also Notable:
• Second quarter GDP was revised lower from 1.3% to 1.0%
• Continuing Jobless Claims fell to the lowest level since September 2008
• Moody's downgraded the credit rating of Japan's government debt
• The Fed's Hoenig said that he doesn't expect a double-dip recession in the US

Week Ahead The biggest economic report next week will be the important Employment data on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before the employment data, Pending Home Sales, Core PCE inflation, and Personal Income will be released on Monday. Chicago PMI Manufacturing and ADP Employment will come out on Wednesday. ISM Manufacturing, Construction Spending, and Productivity are scheduled for Thursday. Factory Orders and Consumer Confidence will round out a busy week.

Rate Comparison vs. Wells Fargo and Bank of America

Professional Mortgage Source LLC - 4.00% with 0 Origination and Closing Costs of $0
Wells Fargo - 4.00%  with 1% Origination and Closing Costs of $2,000.00
Bank of America - 4.25% with 1.25% Origination and Closing Costs of $1100

Assumptions: 30 Year Fixed, Value=$400K, Loan Amount=$300K, Fico=740

Why spend the extra thousands of dollars in points and closing costs when we can do your loan and it will end up with Wells or B of A anyway and can close in less than 30 days.

Mortgage Market News for the week ending August 19, 2011

Inflation Climbs

Concerns about the pace of global economic growth continued to drive financial markets, causing investors to shift to less risky assets. This trend was favorable for mortgage rates, which ended the week lower.

Debt troubles in Europe, worries about the health of European banks, and weaker than expected economic data in the US have contributed to an outlook for slower global economic growth. The reaction from investors has been to shift from riskier assets such as stocks to relatively safer assets such as gold and bonds. Despite the S&P downgrade of US debt, US government-guaranteed bonds, including mortgage-backed securities (MBS), have been a primary safe haven for investors. During the week, 10-yr Treasury yields reached a low below 2.00% for the first time since 1945, and MBS prices climbed to new highs. At these levels, though, it may be difficult for yields to move much lower.

Adding to the concerns of investors, the economic data released this week showed that inflation rose faster than expected in July. The July Consumer Price Index (CPI) increased 0.5% from June, above the consensus forecast of 0.2%, and was 3.6% higher than one year ago. Core CPI, which excludes food and energy, rose 1.8% from one year ago, which was also higher than expected. Core CPI was at a level of 0.8% at the end of 2010. The July Producer Price Index also increased at a faster than expected pace. Rising inflation makes the Fed more reluctant to provide additional monetary stimulus. The inflation data may have prevented mortgage rates from dropping even further this week.

Also Notable:

July Existing Home Sales fell 3.5% from June

The Philly Fed index declined to the lowest level since March 2009

Unlike S&P, Fitch Ratings affirmed the triple-A credit rating of the US

Gold prices reached a record high above $1,880 per ounce

Week Ahead Next week, New Home Sales will be released on Tuesday. Durable Orders, an important indicator of economic growth, will come out on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will be released on Friday, along with Consumer Sentiment. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Rate Comparison vs. Wells Fargo and Bank of America

Professional Mortgage Source LLC - 4.125% with 0 Origination and Closing Costs of $0
Wells Fargo - 4.125%  with 1% Origination and Closing Costs of $2,000.00
Bank of America - 4.25% with .75% Origination and Closing Costs of $1100

Assumptions: Value=$400K Loan Amount=$300K Fico=740

Why spend the extra thousands of dollars in points and closing costs when we can do your loan and it will end up with Wells or B of A anyway and can close in less than 30 days.

Mortgage Market News for the week ending August 12, 2011

Wild Week

In one of the most volatile weeks ever seen, important economic news came out every day and produced major reactions in financial markets. Investor uncertainty is extremely high, amplifying the price movements. As stock prices fluctuated wildly, so did mortgage rates, which reached new lows for the year.

Into this highly charged environment, a steady flow of significant economic news added fuel to the flames. It began late last Friday with the announcement that S&P downgraded the credit rating of US debt. Then the Fed shocked investors with its statement (see below). A scare ran through financial markets that European banks, particularly in France, were at risk of failing, but these fears abated quickly. Investors were comforted by very strong demand for the 3-year and 10-year Treasury auctions, and then were taken aback by extremely poor results for the 30-year auction. It is not surprising that many financial markets set volatility records this week.

The biggest surprise in Tuesday's FOMC statement was that the Fed currently anticipates that economic conditions will call for the fed funds rate to remain exceptionally low through at least the middle of 2013. The Fed also downgraded its forecast for economic growth, saying that it will be "considerably slower" than previously expected at the last FOMC meeting on June 22. Slower economic growth with few signs of higher inflation will make it more difficult for the labor market to recover, but it is a favorable environment for mortgage rates.

Also Notable:
• Consumer Sentiment fell to the lowest level since May 1980
• Weekly Jobless Claims declined to 395K, the lowest level since April
• Gold prices touched a record high above $1,800 per ounce
• The European Central Bank began to purchase Italian and Spanish bonds

Week Ahead The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production, an important indicator of economic growth, will come out on Tuesday, along with Housing Starts. Existing Home Sales will be released on Thursday. Empire State, Import Prices, Leading Indicators, and Philly Fed will round out the schedule.

Rate Comparison vs. Wells Fargo and Bank of America

Professional Mortgage Source LLC - 4.25% with 0 Origination and Closing Costs of $0
Wells Fargo - 4.375%  with 1% Origination and Closing Costs of $2,000.00
Bank of America - 4.25% with 1.125% Origination and Closing Costs of $1100

Assumptions: Value=$400K Loan Amount=$300K Fico=740

Why spend the extra thousands of dollars in points and closing costs when we can do your loan and it will end up with Wells or B of A anyway and can close in less than 30 days.

Mortgage Market News for the week ending August 5, 2011

Lowest Rates of the Year

Early in the week, an agreement to raise the US debt ceiling was reached, avoiding a default on government debt, but investors found little time for relief. Concerns about debt problems in Europe and the slow pace of global economic growth sparked a large rally in US bond markets and a large decline in the stock market. Mortgage rates improved significantly during the week, ending at the lowest levels of the year.

This week's bond market rally dropped mortgage rates back to levels last seen in November, which is not too surprising since the economic environment is now similar to that time period. The economic outlook is for below average economic growth with low inflation. Slower economic growth reduces inflationary pressures, which is favorable for bonds. In addition, the possibility that the debt problems in Europe will spread to larger countries such as Spain and Italy is causing some investors to shift out of riskier assets and into relatively safer assets such as US government bonds.

Mortgage rates would have improved even more this week if Friday's Employment report had not exceeded expectations. Against a consensus forecast of 85K, the economy added 117K jobs in July, and the data for May and June was revised higher by 56K. The Unemployment Rate unexpectedly declined to 9.1% from 9.2% in June. Average Hourly Earnings, a proxy for wage growth, increased at a 2.3% annual rate, which was higher than the consensus forecast. In short, the data solidly surpassed investor expectations in nearly every area.

Also Notable:

The June Core PCE inflation index was a tame 1.3% higher than one year ago

The Bank of Japan intervened to weaken the Japanese Yen

The Dow stock index dropped to the lowest level since March

Oil prices fell to $85 per barrel, the lowest level since February

Week Ahead The biggest economic event next week will be Tuesday's Fed meeting. Given the large stock market decline this week and the uncertainty about the economy, investors will be looking for indications on whether the Fed will provide additional monetary stimulus. The most significant economic data will be Friday's Retail Sales report, as Retail Sales account for about 70% of economic activity. Beyond that, Productivity, the Trade Balance, and Consumer Sentiment will be released. In addition, the Treasury will auction $72 billion in 3-yr, 10-yr, and 30-yr securities on Tuesday, Wednesday, and Thursday.