Charleston and Mt Pleasant Homes for Sale & Real Estate Info

Last Week

Marshall Walker — Thu, 03 Jul 2008 11:32:11 GMT

Last Week

Last week, as expected, the Federal Reserve left rates unchanged at 2% after seven consecutive cuts that started in September and ended at the April 30th FOMC meeting. The forward looking statement read "in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high." This phrase along with some others highlighted the Fed's tough talk on inflation, but their lack of action initially pressured the Bond Market lower, before prices rebounded to finish the day just slightly lower. We feel strongly that the Fed has to step in and hike rates in order to strengthen the US Dollar and combat high Oil prices. With high Oil prices and inflation threats looming, it is very tough to see Mortgage Bonds moving much higher from here.

The final Gross Domestic Product (GDP) was released showing a 1.0% increase for the first quarter and was inline line with estimates. Initial Jobless Claims were 384,000, slightly higher than expectations of 375,000. The four-week average of those claims rose to 378,250, the highest since October 2005. Both figures are above levels signal continued weakness in the labor market.

Existing Home Sales for May were reported at 4.9 Million units, which was inline with expectations. The inventory of unsold existing homes dropped slightly to a 10.9 month supply. The report tells us the housing market is weak but stable.

This Week

The Federal Jobless Report is due tomorrow, July 3rd. The ADP Employment report

was released this morning, showing a dismal reading of 79,000 jobs lost last month, the biggest loss since November 2002. Job gains reported for May were also revised lower. After adding in an estimated 20,000 government jobs created in a typical month but not included in ADP's read, their report suggests that about 60,000 jobs were lost in June...inline with estimates for tomorrow's official Jobs Report from the Department of Labor. If the news is bad, as expected, mortgage rates should perhaps fall a bit.

Have a happy and safe Independence Day this 4^{th of July!}

Weekly Mortgage Update

Marshall Walker — Thu, 26 Jun 2008 10:25:27 GMT

Weekly Mortgage Review

June 25, 2008

Last Week

Last week we confirmed that rates had climbed dramatically in early June. Nothing has happened to push them back down. On a nationwide average, they are about 6.5% on a 30 year fixed, still far below the 10 year average.

Initial jobless claims were released last week, showing the number of Americans filing first-time claims for unemployment benefits fell last week, signaling an improvement in the labor market. Continuing jobless claims fell to 3.6 million, the lowest since April, but still well above the year ago level of 2.52 million. Adding to more inflation fears was a report from the Agricultural Department saying the price of cereals, baked goods, sweets and poultry will rise this year by more than expected a month ago because of accelerating costs for grain and fuel.

Job Losses – Since peaking on 10-31-07, the number of workers on US payrolls has declined by 608,000 over the last 7 months through 5/31/2008. During the last official US recession, the number of workers peaked on 3/31/01 and over the subsequent 7 months fell by 872,000.

This Week

Caught between inflationary pressures and a weakening economy, the Federal Reserve’s policy makers voted on Wednesday to deal primarily with the weakening economy by keeping interest rates at their present level.

The Fed did not hike rates today. There is a possibility of a hike in August but it is not likely. The Fed is in a tough spot - the economy stinks, housing is struggling, confidence is low and costs are rising. You need only look at your last receipt from the grocery store or gas station to see how quickly things have changed. And a walk through your local shopping Mall tells another story of individuals who are less able to spend. That is the Fed's problem...the smart move is clearly to hike. Inflation is rapidly eating away the value of money. And while food price increases hurt, oil is the real story. So why has oil risen so wildly? The answer...The Fed. The evidence is too clear to ignore.

Let's take a look at where we were before the first Fed cut on September 18th. The Fed Funds Rate was at 5.25%, Oil was at $73 per barrel and the Euro was $1.35. Not great, but not bad. Fearing a recession, the Fed did the right thing to stimulate the economy - they cut. But cutting rates in the US makes higher rates in Europe appear much more attractive. So the Dollar began to tank against the Euro and just got worse as the Fed continued to cut. Now it takes $1.56 to equal one Euro. That is a huge swing. And here is where it gets interesting...Oil is priced in Dollars, so as Dollars decline, Oil price per barrel must rise. Oil has gone from $73 a barrel before the Fed cuts to yesterday's close of $137 a barrel.

And the European Central Bank President, Jean - Claude Trichet, has been talking about a rate hike in Europe, even though they are headed for a recession. Remember there is a big difference between the US Fed and the ECB - the US has a dual mandate, fight inflation and promote growth. The ECB just fights inflation. And just the talk of a hike from the ECB has sent oil even higher.

Again, oil prices are surging mainly because of the Dollar weakness and the Fed cuts. Think about it - has demand for oil suddenly skyrocketed in the past 8 or 9 months? Sure it has gone up, but oil had already doubled in price when it was at $70. And higher prices for oil hurts everything. Sure at the pump and for heating, which allows less to spend, but travel, manufacturing, shipping...the list goes on and on.

Next Week

Now that the Fed has met and released its Policy Statement, the market will move its focus to next week’s job data that will be released by the Labor Department on July 3^rd.

Mortgage Update 6/16/2008

Marshall Walker — Mon, 16 Jun 2008 12:59:19 GMT

Last Week in the News

--------------------------------------------------------------------------------

Reflecting the stimulus from government rebate checks, retail sales rose a full percentage point in May, double what economists were anticipating, the Commerce Department reported June 12. Not including the higher prices consumers paid for gasoline, retail sales still rose a strong 0.8%, the biggest increase in a year.

Sales of existing homes in April also caught economists off guard, climbing 6.3% instead of the negative 0.4% drop they were predicting. The new reading, issued June 9 by the National Association of REALTORS®, indicates that the drop in property values has started attracting more buyers and bargain hunters.

Soaring gasoline prices helped push consumer inflation up 0.6% in May, the fastest pace in six months, the Labor Department said June 12. But core inflation, which strips out volatile gas and food prices, edged up a modest 0.2%, easing concerns that big jumps in energy and food costs were breaking through to more widespread inflation.

The nation’s trade deficit — what we import versus what we export — rose 7.8% to $60.9 billion, the largest imbalance since March 2007, the Commerce Department said June 10. Driving the deficit was a $4.3 billion increase in crude oil imports, which jumped to a record $29.3 billion in April.

New claims for unemployment benefits rose to 384,000, an increase of 25,000 from the previous week, the Labor Department reported June 12.

More upbeat economic news came from the Mortgage Bankers Association, which said that mortgage loan applications rose 10.9% from the previous week. Purchase applications increased 12.1% while refi volume was up 8.4% from the previous week.

Economic news due this week includes reports on the Producer Price Index and housing starts on June 17.

Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.

Mortgage News

Marshall Walker — Mon, 16 Jun 2008 12:59:25 GMT

Affluent See Buying Opportunities

One bright spot in the housing market is affluent investors. They see bargains and are ready to buy.

According to a recent survey, 77% of the wealthiest Americans — those with annual discretionary incomes in excess of $500,000 — see a “real opportunity” in the housing market, according to a recent study published jointly by American Express Publishing Corporation and the Harrison Group, a market research and consulting firm.

It’s not just the wealthy who are bullish on real estate. Among those defined as upper middle class, with incomes between $100,000 and $150,000, 67% agreed the U.S. real estate market represents a buying opportunity. Among the affluent with incomes between $150,000 and $249,000 and the super affluent with incomes between $250,000 and $499,000, 72% see a buying opportunity.

The wealthiest are committed to buying soon, with 40% saying they are in the market to purchase real estate this year. Among the upper middle class, that number dropped to 17%, whereas 24% of the affluent and 26% of the super affluent were planning to purchase this year.

The bulk of these purchases will be second homes. Among the wealthiest survey participants, 33% said they were currently in the market for a second home and 25% said they were looking for a third home.

A separate survey found that wealthy Americans purchasing multi-million dollar homes typically put a down payment of 20% to 30%, and 25% put down 30% to 50% of the sale price.

by Zach Larachuito
Senior Loan Officer

Indy Mac Bank

Mortgage News

Marshall Walker — Fri, 13 Jun 2008 14:26:22 GMT

Weekly Mortgage Review
June 11, 2008

Last Week

On Friday, June 6, the Labor Department reported that the Unemployment Rate jumped to 5.5% from last month's reading of 5%. The 1/2 point rise was the biggest increase since February of 1986, while the unemployment rate is the highest since October of 2004. Estimates were looking for a 5% rate. Although the jump in the unemployment rate is getting a lot of attention, remember that the rate was at 5.2% a month earlier. So while the change is negative, it is not as dramatic as the media is portraying.

The US lost jobs in May for a fifth month in a row as payrolls fell by 49,000 versus estimates of -60,000 after a revised upwards 28,000 decline in April. The economy has lost 324,000 jobs so far this year. The total revisions subtracted 15,000 Jobs previously reported for March and April. Overall, the job creations were better than forecast , but the big jump in the unemployment rate pushed Stocks much lower and pushed mortgage rates down a bit.

MLS Data for the Charleston Tri County area reports that monthly sales in May rose 5.5% from 756 units in April to 798 in May. The average sales price increased as did the average days on the market.

This Week

Federal Reserve Chairman Ben Bernanke said "the latest round of increases in energy prices has added to the upside risks to inflation and inflation expectations". Bernanke's speech also suggested that the Fed is in no hurry to hike rates because of "slack" in the economy which can lower inflation.

The Mortgage Market Guide could not disagree more with Mr. Bernanke. While there are risks to continued weakness in the economy, the answer is clearly not more rate cuts...it is rate hikes. The Fed should be in a BIG hurry to hike rates. They feel that the current 2% Fed Funds Rate is about 1% to 1.5% too low. Oil prices have skyrocketed since the Fed began the latest rate cutting cycle. This is because lower rates in the US weaken the Dollar. Oil is priced in Dollars, so as the Dollar weakens, oil prices climb. Last Friday, talks of rate hikes in the Eurozone sent the Euro higher and Dollar weaker, and oil spiked $5 quickly.

Should the Fed finally figure things out and hike rates, the Dollar will strengthen, oil prices will drop back towards $100, inflation will ease, and as a result...mortgage rates will decline. Let's see how long it takes the Fed to understand this.

Coming up

The next Fed Open Market Meeting is scheduled for June 24th – 25th . All eyes will be looking at what the Fed will do with rates.

Michael Chase - Weekly Report

Marshall Walker — Mon, 02 Jun 2008 10:33:39 GMT

"INFLATION IS AS VIOLENT AS A MUGGER, AS FRIGHTENING AS AN ARMED ROBBER, AND AS DEADLY AS A HIT MAN." ~ Ronald Reagan. And although you might not describe the effects of inflation in such strong terms yourself...rest assured that the effects of inflation have crept into your home, your gas tank and your wallet. And inflation is also the nemesis of Bonds and therefore home loan rates, because just like inflation erodes the value of the dollars you spend, inflation erodes the value of the fixed return a Bond provides. And last week, Bond pricing worsened on news of inflation, causing home loan rates to move higher by about .25% across the board and reaching the highest levels seen in weeks.

The week was shortened by the Memorial Day holiday, but right out of the gates, inflation concerns abounded. The Consumer Confidence Report indicated that consumer inflation expectations are at an all-time high...meaning that consumers are seeing inflation as a real threat to their own financial situation. Rising energy costs and worldwide inflation fears continued to pummel Bonds lower - in fact, so low that they moved below a tough technical floor of support at the 200-Day Moving Average. This is important because Bonds have made a decisive cross over the 200-day Moving Average on only three separate occasions within the past three years. This means that barring a timely reversal, we are likely seeing a shift in the market towards higher home loan rates.

Friday brought a little good news on inflation, as the Core Personal Consumption Expenditure (PCE) Index showed that inflation does remain within the Fed's comfort zone. While Bonds and home loan rates improved somewhat on the news, the trend for the week was definitely worse overall, as the big picture on inflation cost Bonds and home loan rates some hard earned ground.

LOOKING FORWARD TO YOUR STIMULUS CHECK...AND WISHING THE SIZE OF IT COULD BE "INFLATED?" RETAILERS HAVE COOKED UP SOME INTERESTING SPECIALS TO DO JUST THAT, SHOULD YOU DECIDE TO SPEND YOUR CHECK ON THEIR GOODS OR SERVICES. TAKE A LOOK AT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME EXAMPLES OF WHAT CREATIVE RETAILERS HAVE IN STORE FOR YOU.

Forecast for the Week

This coming week, one economic report in particular bears inflated significance...Friday's release of the infamous monthly Jobs Report. It will reveal, among many other things, the number of jobs lost or gained during the month of May. Last month's Jobs Report indicated that 20,000 jobs were lost in April, and while this was better than the expected job losses of 75,000, it is possible that the reported number understated the actual number of jobs lost, due to how the Department of Labor averages their count. And part of each month's report is "revisions" to the several prior months' numbers...which this could be quite a wild card for Bonds and home loan rates.

Last month's Jobs Report, which was indeed more positive than expected, caused Bonds to fall a whopping 134bp in a matter of minutes, and home loan rates worsened quickly. Why? Because even though the news wasn't great, it sure was better than anticipated...and this caused money to flow out of Bonds, and into Stocks...which caused Bond prices and home loan rates to worsen. This week's Jobs Report could sure be another mover, and if the report or revisions indicate positive news on the jobs front, home loan rates will likely worsen in response.

Remember when Bond prices move higher, home loan rates move lower...and vice versa. And as you can see in the chart below, Bonds moved lower for most of the week, and actually closed below an important technical level at the 200-day Moving Average. This is a very important level, as it can act as either a very strong floor of support helping Bond prices not to fall below it...or as an equally strong ceiling of resistance, preventing Bonds and home loan rates from improving above it. And with Bonds currently having fallen beneath it, I'll be watching closely this week to see if Bonds have indeed fallen and can't get up...or if they can break above that tough level later this week and help home loan rates improve.

Chart: Fannie Mae 5.5% Mortgage Bond (Friday May 30, 2008)

The Mortgage Market View...

Retailers Looking For Some "Stimulus"...

According to a recent poll on how consumers intend to spend their stimulus checks, 19% of consumers plan on using their economic stimulus check for a special purchase, and 23% plan to use their check for everyday expenses. The rest...well, 36% say they will pay down debt and 22% say they will put it into savings. But will the check burn a hole through their pockets?

Maybe so, particularly with the "stimulus check" specials that many retailers have come up with, offering bonuses and incentives for people who spend their "stimulus" dollars with them. Here are some examples, in case you want to take advantage of any offers:

Sears. If you use your stimulus check to purchase a gift card, you receive an additional gift card worth 10% of your check's value. This offer is also good at Kmart and Lands' End.

Kroger. Between now and July 31, 2008, you can exchange your tax refund or economic stimulus check for a Kroger gift card with an extra $30.00 (for $300.00 checks), $60.00 (for $600.00 checks) or $120.00 (for $1,200.00 checks) added to it. The program is available throughout Kroger stores nationwide - including Kroger, Baker's, City Market, Dillons, Fred Meyer, Fry's, Gerbes, Hilander, Jay C, King Soopers, Owen's, Pay Less, Ralphs, Smith's and QFC stores.

Home Depot. To encourage consumers to invest their stimulus check in their homes through energy efficient products and services, the retailer is offering special values on energy-efficient products such as light bulbs and home appliances through the summer.

Radio Shack. The retailer will cash your check and give you 10% off on any purchase above $50, and then give you the difference as a prepaid MasterCard that can be used anywhere that takes MasterCard.

Domino's Pizza. Although you don't need to use your stimulus check for purchase, Domino's is getting into the spirit of economic stimulus, offering a "recession-busting" special of three pizzas for $12.00. According to the company's press release, "While you're feeding the economy with your special refund check, let it feed you back."

These are just some of the promotions that retailers are currently offering, and more deals are likely on the way. If there's something you want to use part of your stimulus check for, do your homework and take advantage of the specials that are out there. And if you do intend to pay down debt with the check, feel free to give me a call to discuss which debt would make most sense to reduce!

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of June 02 June 06
Date ET Economic Report For Estimate Actual Prior Impact
Mon. June 02 10:00 ISM Index May 48.0   48.6 HIGH
Wed. June 04 08:15 ADP National Employment Report May -30K   10K HIGH
Wed. June 04 08:30 Productivity Q1 2.5%   2.2% Moderate
Wed. June 04 10:00 ISM Services Index May 51.0   52.0 Moderate
Wed. June 04 10:30 Crude Inventories 5/31 NA   -8883K Moderate
Thu. June 05 08:30 Jobless Claims (Initial) 5/31 370K   372K Moderate
Fri. June 06 08:30 Average Work Week May 33.7   33.7 HIGH
Fri. June 06 08:30 Hourly Earnings May 0.2%   0.1% HIGH
Fri. June 06 08:30 Non-farm Payrolls May -52K   -20K HIGH
Fri. June 06 08:30 Unemployment Rate May 5.1%   5.0% HIGH

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.
As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: MICHAELCHASE@synovus.com
If you prefer to send your removal request by mail the address is:

Michael Chase, CMPS
Synovus Mortgage
230 Seven Farms Drive
Suite 101
Charleston, SC 29492

Economic Update - June 2, 2008

Marshall Walker — Mon, 02 Jun 2008 10:11:04 GMT

New home sales unexpectedly rose 3.3% in April, the first increase in six months, the Commerce Department said May 27. As a result, the inventory of unsold new homes fell slightly to a 10.6 months’ supply versus the 11.1 months’ backlog recorded in March.

The Commerce Department further reported that the median price of a new home sold in April rose to $246,100, up 1.5% from April 2007. In a separate report, however, the Standard & Poor’s/Case-Shiller Index showed existing home prices falling 14.1% in the first quarter of 2008, compared with a year earlier, the biggest year-over-year decline since the index began in 1988.

For the week ending May 29, interest rates on 30-year fixed-rate mortgages rose to an 11-week high, Freddie Mac said.

More mixed economic news came from the industrial sector. Orders to U.S. factories for durable goods — those expected to last three or more years — dropped 0.5%, dragged down by big declines in demand for commercial aircraft and autos. However, excluding transportation, orders rose 2.5% in April, the biggest gain in nine months. Orders for electrical equipment and appliances surged 27.8%, the biggest increase on record.

Another boost for the economy came on May 29 when the Commerce Department upwardly revised first-quarter gross domestic product or GDP — the total tally of the nation’s goods and services — from its previous estimate of 0.6% to an annual rate of 0.9%.

Finally, despite the government’s sending out billions of dollars in stimulus checks, consumer spending nudged up a small 0.2% in April, half of March’s increase, the Commerce Department said May 30. Personal income also edged up 0.2% in April, again half of March’s 0.4% increase.

This week, watch for the May unemployment report due out on June 6.

Economic data compiled from government reports and news services Bloomberg.com, msnbc.com,

The Week in Review - Justin Whitney

Marshall Walker — Mon, 28 Apr 2008 13:38:01 GMT

The Week in Review:

The Bond market started the week on a positive note as National City received a $7 Billion cash infusion from investors. This was perceived as positive and an indicator that perhaps the "Credit Crisis" has hit bottom and money may start coming back in to the financial markets. The week then unraveled as the existing and new home starts came out. Existing home numbers came in as expected and there is a glimmer of hope that that segment has hit bottom. New homes, on the other hand, fell short of expectations only to confirm that the bottom is still below. Finally, on Friday the bond market rallied as global inflation numbers were reported and the outlook is not good…hurting our bond pricing.

In the end, after a week of volatility, we ended up with mortgage rates at roughly the same levels as when we started the week.

The Week Ahead:

This week is packed with economic news and will prove to be very volatile. On Wednesday the Fed will announce its interest rate decision and the market is anticipating only a .25% reduction. The current logic is that the Fed will slow down the pace of rate reductions for a few periods and try to ascertain what impact the past rate cuts and other economic stimulus programs have had. It’stime to watch the inflation meter!

On Thursday the Personal Consumption Expenditure Index will be released followed by the jobless numbers on Friday. Labor is a leading indicator and the trend has been negative for the last 3 periods.

Recommendations are to lock early in the week ahead of the midweek volatility. Have a great week!

Interest Rates:

Conforming ($417,000 or below)

30yr 6%

3yr ARM 5.375%

5yr ARM 5.375%

7yr ARM 5.875%

10yr ARM 6.375%

Jumbo (Greater than $417,000)

30yr 7.625%

3yr ARM 5.25%

5yr ARM 5.25%

7yr ARM 5.75%

10yr ARM 7%

Justin Whitney

Mortgage Consultant

Remember that you can visit Marshall Walker to view all available properties.

The week in Review- Zach Larichuito

Marshall Walker — Mon, 28 Apr 2008 13:34:15 GMT

Last Week in the News

Consumer confidence fell to a 25-year low, according to the Reuters/University of Michigan consumer sentiment index, dropping from 69.5 in March to 62.6 in April. The reading is troubling because it’s regarded as an indicator of future consumer spending, which accounts for about 70% of U.S. economic activity.

Sales of existing homes dropped 2% in March to an annual rate of 4.93 million units, the National Association of REALTORS® reported April 22. The median price of an existing home tumbled 7.7% from a year ago to $200,700, the second biggest decline since a record 8.4% drop in February.

Sales of new homes plunged 8.5% in March to an annual rate of 526,000 units, the slowest sales pace since October 1991, the Commerce Department said April 24. The median price of a new home dropped 13.3% from a year ago to $227,600, the biggest year-over-year price decline since a 14.6% plunge 38 years ago. At the current sales pace, it would take 11 months to deplete the national inventory of new homes.

Homebuyers didn’t get much mortgage rate relief as 30-year and 15-year fixed-rate loans edged up for the week ending April 24, Freddie Mac said in its weekly survey of mortgage lenders.

The demand for durable goods — big-ticket items expected to last three or more years — dipped 0.3% in March, a worse-than-expected showing, the Commerce Department said April 24. The last time orders fell for three consecutive months was from February to April of 2001, when the nation was sliding into the last recession.

The job front was a bit rosier, however, as new claims for unemployment benefits fell by 33,000 last week to 342,000, the Labor Department reported April 24. Economists had expected a rise of 3,000.

Economic news due this week includes another consumer confidence report on April 29 and a preliminary report on the nation’s first-quarter gross domestic product on April 30.

Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.

Remeber to visit Marshall Walker to view all currently available properties!

The Week in Review

Marshall Walker — Mon, 14 Apr 2008 13:50:20 GMT

The Week in Review:

There were several pieces of news last week that painted a fairly gloomy outlook for the economy. As we enter the "earnings season" the first big companies to report both had lower than expected results. Both Alcoa and General Electric reported low earnings and gave projected earnings estimates lower than previously thought. It set a negative tone for the stock market and money moved out and over the safer bonds.

Other news last week, "Meeting Minutes" from the March 18^{th Fed Meeting revealed that there is dissention amongst the Fed Presidents over the concerns of inflation. The problem the Fed battles is that the economy is stalling/stalled and they need to take action to stimulate it. In doing so, one action is to continue to lower the Fed rate. This typically leads to inflation and a whole host of other economic issues. It is a constant issue for the Fed regardless of the market climate however, the recessionary concerns and the slow economy are in the fore front.}

At the end of the day, the poor economic news was good news for Bonds and mortgage interest rates. We are approaching levels that we experienced in 2005!

The Week ahead:

There are several economic reports due this week that will potentially move the market. Today we start with the Retail Sales Report. Wednesday we get the Consumer Price Index and the Housing and Permit reports. On Thursday the Leading Economic Indicators report will be published and it provides data on economic activity over the last 3-6 months.

Coupled with the daily reports from corporate earrings, this may prove to be an active week. Remember, bad economic news is good for mortgage rates….good news is not.

Please let me know if I may be of assistance. It’s a great refinance market!

Interest Rates:

Conforming: (Less than $417,000)

30yr Fixed 5.625%

3yr ARM 5.000%

5yr ARM 5.125%

7yr ARM 5.250%

10yr ARM 5.500%

Jumbo: (Greater than $417,000)

30yr Fixed 7.250%

3yr ARM 5.250%

5yr ARM 5.250%

7yr ARM 5.375%

10yr ARM 5.750%

Justin Whitney

Mortgage Consultant

C 843-270-8366

F 1-866-332-8270

justin.whitney@bradfordmc.com

www.justinwhitneybmc.com

474 Wando Park Blvd, Suite 106

Mt Pleasant, SC 29464

The Week in Review

Marshall Walker — Mon, 07 Apr 2008 12:47:16 GMT

The Week in Review:

The week was a little bit less volatile however Friday’s Labor Report sent the market reeling. The report was much worse than expected with 80,000 jobs lost in March. Additionally the prior two months were adjusted for an additional loss of 67,000 jobs. The bad news is that the it may actually be worse than what was reported. The jobless reports work on trailing averages so in the next couple of months the revisions may look even worse.

What does this mean for mortgages? We are anticipating that money will move out of stocks and into bonds. So mortgage rates may improve slightly. Longer term, it points to the fact that we are currently in the middle of a fairly deep recession. Economists are all rethinking their prior outlook. The Fed will probably continue to lower the federal reserve rate and that will create inflationary pressure….a bad thing for mortgage rates.

But today, interest rates are great!

The Week Ahead:

On Tuesday we will have the minutes from the last Fed meeting released. Depending on the tone and wording, it may send the market on another run. Technically, Bonds continue to trade between the 25 and 50 day moving average with Friday’s news bouncing them off the 50 day.

It is hard to predict what this week will bring….hopefully rates will continue on a more stable path the we have seen over the last month.

Have a great week.

Interest Rates:

Conforming (Less than or equal to $417,000)

30yr Fixed 5.625%

3yr ARM 5.125%

5yr ARM 5.125%

7yr ARM 5.375%

10 yr ARM 5.875

Jumbo (Greater than $417,000)

30yr Fixed 6.875%

3yr ARM 5.000%

5yr ARM 5.000%

7yr ARM 5.250%

10 yr ARM 5.750%

Justin Whitney

Mortgage Consultant

C 843-270-8366

F 1-866-332-8270

justin.whitney@bradfordmc.com

www.justinwhitneybmc.com

474 Wando Park Blvd, Suite 106

Mt Pleasant, SC 29464

The week in Review

Marshall Walker — Mon, 31 Mar 2008 09:49:14 GMT

The Week in Review:

I continue to be amazed at how consistent and sustained the volatility in the market is! Last week started with Financial Stocks getting a shot in the arm as beleaguered Bear Stearns is expecting to see $10 per share as opposed to the previously expected $2 per share. It was great news for the troubled financial sector and Mortgage Rates were hurt as money moved out of Bonds and into Stocks.

As the week progressed, the Consumer Confidence numbers came out rather dismally and money moved back into the Bond market, improving Mortgage Rates. Then on Thursday better than expected unemployment numbers sent stocks higher……hurting mortgage rates. The week ended with the year over year Core Inflation numbers coming in better than expected at 2%. This is in line with the Feds expectations and…. mortgage rates benefited again.

A week of reversals almost daily. We ended the week with rates roughly where they started.

The Week Ahead:

I would expect this to be a more quiet week due to the low importance levels of most of the economic news. Watch for activity on Wednesday as the Factory Orders report and the ADP labor report come out. If the Factory Orders report comes in significantly better than expected, we may see some positive movement in Mortgage Rates.

The biggest event of the week will be on Friday as the Labor Report is released. It’s expected that a loss of 40,000 jobs occurred in February, bringing unemployment from 4.8% to 5%. Again, if the report comes in softer/better than expectations we will see mortgage rates benefit.

Have a great week and SELL, SELL, SELL!

Mortgage Rates:

Conforming (less than or equal to $417,000)

30yr Fixed 5.625%

3yr ARM 5.250%

5yr ARM 5.250%

7yr ARM 5.625%

10yr ARM 6.000%

Jumbo (Greater than $417,000)

30yr Fixed 7.000%

3yr ARM 5.125%

5yr ARM 5.125%

7yr ARM 5.500%

10yr ARM 5.875%

Justin Whitney

Mortgage Consultant

C 843-270-8366

F 1-866-332-8270

justin.whitney@bradfordmc.com

www.justinwhitneybmc.com

474 Wando Park Blvd, Suite 106

Mt Pleasant, SC 29464

The Week in Review

Marshall Walker — Mon, 03 Mar 2008 13:56:25 GMT

The Week in Review:

Bonds had a very successful week, as they moved lower to hit the technical "bottom" at the 200-day moving average and then rebounded significantly higher throughout the week. Coupled with weak economic news, mortgage interest rate improved by .25% to .375%.

Occasionally we discuss the technical aspect of the bond market and how it impacts mortgage interest rates. In general, the markets watch the 25day, 50day, 100day and 200 day moving averages. Depending on the momentum of the market, we will see daily trading approach a moving average like the 200 day average last week. It creates and floor of support or a ceiling of resistance (depending on if the market is moving up or down) and the market "bounces" off the moving average. Traders are able to make calculated decisions based upon this technical data and many other factors.

So last week we saw the Bonds hit the 200 day moving average and they bounced up, improving things for the market and for mortgage interest rates. In fact, they broke through the 100 day moving average ( which we would consider a ceiling of resistance) and will test the 50 day moving average this week.

In addition to the technical data, it was a soft economic reporting week and the data that did present itself met expectations for the most part. Fed Chairman Bernanke also spoke and the Bond Market enjoyed his "dovish" comments about inflation and the recent aggressive rate cuts.

The Week Ahead:

This week will be action packed with the big event being Friday’s monthly official Job Report. The Job Report is a closely watched indicator because if businesses are hiring, it means their outlook is good for the future growth of their business and the economy in general. It makes sense that the more workers that are employed, the more dollars there are being earned and spent by consumers. So a strong Job Report will be good for the economy and the stock market will love it. The Bond Market, however, will not love a strong report and will probably suffer as will mortgage interest rates. The inverse will be true if it is a weak Jobs Report.

Eyes are also starting to look forward to March 18^{th when the Fed meets again. The futures markets and indicate a 65% chance that the Fed will lower rates .75%! That would be aggressive and the next couple of weeks will shape their decision of how much of a rate cut will be made.}

My recommendation for the week is to cautiously float but be prepared to lock as it is going to be another volatile week!

Interest Rates:

Conforming ($417,000 or less)

30yr Fixed 5.75%

3yr ARM 4.625%

5yr ARM 4.625%

7yr ARM 4.75%

10yr ARM 5.25%

Jumbo (Greater than $417,000)

30yr Fixed 6.625%

3yr ARM 4.875%

5yr ARM 5.00%

7yr ARM 5.25%

10yr ARM 5.75%

Justin Whitney

Mortgage Consultant

Organic Dry Cleaning?

Marshall Walker — Wed, 20 Feb 2008 07:54:26 GMT

A reader asks the Green Guide:

The other day I took a quilt to an "organic" dry cleaner in my neighborhood. When I asked the lady behind the counter what chemicals they used, she told me they didn't use any, that the process was entirely natural and chemical-free. In the interest of convenience and time, I went ahead and left my quilt with them to be cleaned, but when I got it back, it had such a strong, synthetic, floral odor that I can't imagine how the cleaner they used could have been "natural and chemical-free." Do you have any idea what they might have used?

Emily
New York, NY

The Green Guide responds:

Thanks for your question. The first thing to remember is that some green labels may not be as meaningful as others, especially when it comes to dry cleaning. The term "organic," when applied to dry cleaners, could be referring to any carbon-based chemical, like hazardous perchloroethylene. It could also mean that your dry cleaner is certified by the International Fabricare Institute as a "Certified Environmental Dry Cleaner," which means the cleaner has passed a test certifying that they have the knowledge and ability to maintain their facility in an environmentally responsible way but doesn't actually ban the use of chemicals like perc.

Basically, there's no regulation of the term "organic" when applied to dry cleaning, and you really should press the cleaner to reveal exactly what chemicals are being used. Most "organic" or "natural" dry cleaners label themselves as such simply because they've stopped using perchloroethylene (or perc), a hazardous chemical considered a probable human carcinogen by the International Agency for Research on Cancer. Perc also contributes to air pollution and has been found to contaminate water and soil. In 2006, the Environmental Protection Agency passed a law requiring any dry cleaner located in a residential building to phase out perc by 2020, and last year, the state of California approved a plan that would phase out all California dry cleaners' use of perc, which is on their list of toxic air contaminants, by January 2023.

Supplied from the National Geographic - The Green Guide to go

about MARY LOGAN BARMEYER

Mary Logan Barmeyer is a research specialist for National Geographic's Green Guide.

Remember to visit Marshallwalker.comto view all available Charleston, Mt Pleasant and summerville Homes for sale !

The Week in Review

Marshall Walker — Tue, 19 Feb 2008 11:39:59 GMT

The Week in Review:

Not a good week for the Bond Market or Mortgage Interest Rates! It started with Retail Sales for January coming better than expected. It was good news for the Stock market and money started to flow out of Bonds into Stocks. Then the Fed Chairman, Ben Bernanke, testified that the Fed would keep the door open to more rate cuts if indicators continued to show slow growth in the economy. When that happens the Bonds Market becomes concerned about inflation….so again, money left the Bonds and went into Stocks. And finally, to top the week off, Moody’s credit rating agency downgraded FGIC which is one of the very largest Bond insurers in the world. That put in question the "security" of Bonds so again, money moved out of the Bond market and into Stocks.

So, over the last two weeks we have seen mortgage interest rates worsen by .25%!

The Week Ahead:

This week we could see more negative news for Bonds and Mortgage Interest rates. A better read on inflation will come out on Wednesday with the Consumer Price Index along with the latest Housing Starts and Permits data. We will also have the "Meeting Minutes" from the last Federal Reserve Meeting. They will give more detail as it relates the Feds intentions moving forward and how aggressively they will act to ensure economic growth.

As always, these bits of news indicate what is happening in the economy and how it impacts inflation and economic growth. Bonds hate inflation and will perform poorly if inflation begins to creep in the wrong direction. Mortgage Interest Rates are directly tied to the Bonds performance so if Bonds are not doing well, we can count on Mortgage Interest Rates getting worse as well.

Interest Rates:

Conforming (less than $417,000)

30 yr Fixed 5.625%

3yr ARM 4.375%

5yr ARM 4.500%

7yr ARM 4.75%

10yr ARM 5.125%

Jumbo (greater than $417,000)

30yr Fixed 6.625%

3yr ARM 5.125%

5yr ARM 5.250%

7yr ARM 5.500%

10yr ARM 6.125%

Justin Whitney

Mortgage Consultant

C 843-270-8366

F 1-866-332-8270

justin.whitney@bradfordmc.com

www.justinwhitneybmc.com

TOP STORY: Gary Keller shares his vision for 2008

Marshall Walker — Tue, 19 Feb 2008 11:39:53 GMT

TOP STORY: Gary Keller shares his vision for 2008

Real Estate at the Crossroads: Choosing to Thrive

Recapping the shift in the real estate market at Family Reunion, Gary Keller urged attendees to seize the current market to their advantage. Keller explained that the 10-year run-up in real estate that began in the early 1990s, led to an environment in which homes were no longer affordable, lenders were willing to take unreasonable risks and inventory rose to record levels.

This chain of events led to mortgage lenders pulling back, followed by a credit squeeze, increased inventory, dropping prices, rising defaults, slipping consumer confidence and reluctant buyers.

Viewing the market from another angle, Keller observed that since 1981, household incomes have increased by an average of 3.6 percent per year. During that same time period, U.S. home prices have increased by an average of 4.6 percent per year.

"Affordability is, and always will be, the primary real estate issue," Keller emphasized. "As homes become less affordable, the number of qualified buyers declines. Rising inventories result in an eventual decrease in home prices.

Existing U.S. home sales in 2007 were down by 13 percent over the previous year, and down 20 percent from 2005, when they peaked at 7.1 million. The decrease in new home sales was even more dramatic – down 25 percent from 2006 and a two-year decrease of 37 percent.

NAR’s forecasts for 2007 were overly optimistic by an average of 9.4 percent, while the Canadian Real Estate Association (CREA) was overly pessimistic by an average of 8.8 percent in 2007.

Despite last year’s 13 percent decline in U.S. home sales, membership in the National Association of REALTORS® (NAR) dropped by only 1.4 percent. In the current market, there is approximately half the number of residential real estate sales per agent compared to 10 years ago. Noting that the correlation between home sales and NAR membership has historically been very strong, more competition for fewer available sales is expected to accelerate the trend of agents leaving the business in the near term.

Keller said that for agents who are determined to stand strong and build market share during the shift, opportunities are wide open. The key: "Become a productivity warrior and a market maker; know that there is enough available business for you to achieve your goals; and become the local economist of choice."

Let There Be (Fluorescent) Light

Marshall Walker — Sun, 17 Feb 2008 10:26:16 GMT

February 2008

Read this issue of Greentips online

A provision in the 2007 energy bill requires lightbulbs to be 30 percent more energy-efficient starting in 2012—a standard that will effectively phase out traditional incandescent bulbs. But why wait?

Today's compact fluorescent light bulbs (CFLs) already use 50 to 80 percent less energy than incandescent bulbs. If every U.S. household replaced just one incandescent bulb with a CFL, the Environmental Protection Agency estimates we would reduce global warming pollution by an amount equivalent to taking more than 800,000 cars off the road.

Most CFLs on the market today offer the same performance, versatility, and light output as incandescent bulbs. Look for the following product information to ensure you find the right bulb for your needs:

Whiteness: Like incandescent bulbs, CFLs can produce light in many shades of white. Color temperature (or the perceived "warmth" of the

light) is measured in kelvins (K); the lower the color temperature, the warmer the color. These temperatures range from about 2700 K (a "warm" yellow-white) to 5000 K (a "cool" blue-white). If the temperature is not listed, look for the terms "warm white" and "cool white" (or "daylight").

Brightness: Because CFLs use less energy (as measured in watts) to produce the same amount of light as an incandescent bulb, look for lumens (a measure of light output) on the product label to find CFLs that will match or exceed the brightness of the incandescent bulbs you have been using. For example, a 60-watt incandescent bulb and a 15-watt CFL each produce about 800 lumens. The Energy Star website (see the related links) lists the lumens produced by common incandescent wattages, and CFL packages often mention the equivalent incandescent wattage as well.

Compatibility: CFLs are available in a wide variety of shapes and sizes, for both standard and smaller (candelabra) sockets. There are even CFLs designed to accommodate three-way, dimmable, motion-sensor, and outdoor fixtures.

CFLs last up to 10 times as long as incandescent bulbs, but because frequent on/off cycles can reduce their useful life, target high-usage areas of your home first (that is, where lights stay on for long periods of time). This will ensure you get the most energy savings right away.

CFLs and Mercury

CFLs do contain a small amount of mercury, so they cannot be thrown out in the trash (see the related links for disposal information).

However, the mercury in CFLs represents a much less significant environmental hazard than incandescent bulbs because CFLs require much less electricity, and more than half of our nation's electricity is generated by coal-fired power plants—the largest U.S. source of mercury emissions.

In other words, the average coal-fired power plant emits only 3.2 milligrams of mercury for each CFL running six hours per day for five years, but emits nearly 15 milligrams of mercury for an incandescent bulb running the same amount of time, according to UCS research. The difference far exceeds the approximately five milligrams present inside a CFL. Properly disposing of CFLs ensures the mercury in them remains contained.

The Week in review 2/11/2008

Marshall Walker — Sun, 17 Feb 2008 09:58:21 GMT

The Week in Review:

Last week was a relatively calm week, as it relates to the mortgage interest rates, until Thursday when Dallas Fed President Richard Fisher’s commented negatively on inflation. Fisher was the one dissenting vote for the most recent interest rate cut. He spoke out at an engagement in Mexico City stating that he still feels that inflation is a major concern and that we are basically over stimulating the economy with the proposed stimulus package.

The result was a wild sell off in the bond market (as you know, bonds hate inflation) which translated negatively to the mortgage world. By close of business on Friday mortgage rates had worsened by .125% for the week.

The Week Ahead:

This week’s economic calendar holds mostly mid-level reports, but the Retail Sales report on Wednesday will definitely draw some attention, as we get a chance to see how consumers have been spending money out there. Additionally, Thursday’s Initial Jobless Claims and Balance of Trade reports and Friday’s Industrial Production report will be of interest.

With the aggressive interest rate reductions recently, the markets are looking for any news that might signal an increase in inflation. Remember that although the Fed’s interest rate reductions are intended to stimulate the economy, it may result in an increase in inflation. Bad news for Bonds and Mortgage interest rates.

Mortgage Rates:

Conforming Rates ($417,000 and below)

30yr Fixed 5.625%

3yr ARM 4.250%

5yr ARM 4.375%

7yr ARM 4.500%

10 yr ARM 4.625%

Jumbo Rates (Greater than $417,000)

30yr Fixed 6.375%

3yr ARM 4.625%

5yr ARM 5.000%

7yr ARM 5.125%

10 yr ARM 5.250%

Remember to Visit Marshallwalker.com to search all available homes and properties in the Charleston, mt Pleasant and Summerville SC area. Marshall dislplays all listings by all brokers!

Justin Whitney

Mortgage Consultant

C 843-270-8366

F 1-866-332-8270

justin.whitney@bradfordmc.com

Conforming Loan Limits Update - Will Impact Our Market?

Marshall Walker — Sun, 17 Feb 2008 09:56:13 GMT

Good morning. Just a quick update on this hot topic.

As I mentioned last week, there movement to increase the conforming loan limits is tied to the current stimulus package that is expected to be signed by the president this week. It isn’t as cut an dry as we would hope, and will not impact our market. Here are the high points:

· The conforming loan amount will increase to 125% of the median home price as determined by HUD, not to exceed 175% of the current conforming loan amount, or $729,750.

· There are not time restrictions on when a loan was initiated for refinance purposes. This is contrary to what we believed last week.

· This will also impact FHA loan limits.

Once the bill is signed, HUD will have 30 days to produce the median home prices and the adjusted loan limits will go into effect for those areas that are impacted. Thus far it would appear that a good portion of California and Florida will be impacted. After that, there are small metropolitan pockets in various states such as New Jersey, New York, Washington, Colorado, Maryland and a few others.

Although the HUD list will not be out for at least 30 days, I am relatively certain that it this will not impact our market.

I hope this is helpful as your clients may be asking you about this important mortgage related legislation.

Have a great day and please let me know if there is anything that I may help with.

Remember to Visit Marshallwalker.com to search all available homes and properties in the Charleston, mt Pleasant and Summerville SC area. Marshall dislplays all listings by all brokers!

Justin Whitney

Mortgage Consultant

C 843-270-8366

F 1-866-332-8270

justin.whitney@bradfordmc.com

Real Estate Outlook

Marshall Walker — Fri, 08 Feb 2008 07:56:42 GMT

Real Estate Outlook: Economy is Growing

by Kenneth R. Harney RealtyTimes.com

Despite a lot of sobering economic news for housing and real estate, there are some definite positives taking shape out there.

Pooh-pooh them -- or ignore them -- at your own peril.

First, the powerful combination of fixed 30-year mortgage rates in the mid-5's and house prices rolled back to 2003 and 2004 levels in some areas HAS to begin attracting the attention of consumers. That could happen as early as this Spring in some local markets -- or later in the year, but the buying opportunities are undeniable.

Second, despite all the grim and gloomy predictions about recession, the U.S. economy is still growing. No question that rate of growth slowed dramatically in the most recent quarter, but the fact is: The U.S economy is NOT in recession, thanks to a couple of key factors:

Total employment gains during the past 12 months exceeded one million new jobs. That measure went negative in the latest month by 17,000 jobs, but the month before job creation was UP by 82,000.

Exports-which jumped by an extraordinary 7.7 percent in the past 12 months -- are fueling some of that employment vigor.

Real after-tax household income rose last year by 1.1 percent. That may not sound like much, but in a giant economy such the United States -it's good news. In a recession, that number would have been negative.

Now to the housing market's prospects: Within the next 10 days to two weeks, the President is expected to sign legislation raising mortgage limits for the three most consumer-friendly financing programs - Fannie Mae, Freddie Mac and FHA.

Home buyers in high-cost markets will gain access to much lower-cost financing compared with the deal-killing "jumbo" rates they'd otherwise have to pay.

How big a difference could that make?

Compare payments on a jumbo loan at current rates of 7 to 7.5 percent to the 5.75 to 6.0 rates they'd potentially pay after the legislation takes effect.

Estimates vary as to how many sales and purchases this change will stimulate, but an independent economist on contract with the National Association of Realtors puts it at close to 348,000 additional home sales in the coming 12 months.

Bottom line here: It's not all gloomy out there. There are some hints of a pick-up on the horizon -- provided you're open to seeing them.

Published: February 7, 2008