Action Lending - Mortgage News

Gene Tidgewell from Action Lending and Moonstone Real Estate here.

The jobs report came out Friday and it was pretty good with 261,000 new jobs created. However wage rate inflation was 2 %. The Unemployment Rate dropped to 4.1 % but that was not due to job creation. It was due to the Job Participation Rate dropping from 63.1 % to 62.7 %.

Thursday the House Ways and Means Committee released the PROPOSED NEW TAX PLAN. We shall see how much it changes before it passes. There are several items that will affect homeowners:

  1. The property tax deduction is limited to $10,000 That will greatly affect people in high property tax states such as New Your, New Jersey and Illinois as well as homeowners in California
  2. The mortgage interest deduction on loans in place now will stay the same
  3. The mortgage interest deduction on new mortgages will be on mortgage debt up to $500,000. In states with high cost real estate such as areas of California that could have some effect on sales going forward. We shall see.
Enjoyed a big weekend in College Football and another one coming up

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Posted in:General
Posted by Gene Tidgewell on November 6th, 2017 4:32 PM
Gene Tidgewell from Action Lending and Moonstone Real Estate here.

Just a quick note to remind you that California’s gas tax goes up $0.12 a gallon Wednesday November 1, 2017 so fill up your gas tank before then. In addition on January 1, 2018 there is an additional vehicle fee added to registration that will range from $25.00 to $175.00 per vehicle depending on value of car. Also there will also be a $100.00 fee on all electric vehicles.

I DO NOT OWN STOCK IN ANY GAS OR OIL COMPANIES!

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Posted in:General
Posted by Gene Tidgewell on October 30th, 2017 3:48 PM
Gene Tidgewell from Action Lending and Moonstone Real Estate, instead of a bunch of real estate & financial news today here are some funny college football quotes.


"Gentlemen, it is better to have died a small boy than to fumble the football" - John Heisman   
 
"I make my practices real hard because if a player is a quitter, I want him to quit in practice, not in a game." – Bear Bryant / Alabama 
 
"It isn't necessary to see a good tackle, you can hear it!" - Knute Rockne / Notre Dame   
 
"At Georgia Southern, we don't cheat. That costs money, and we don't have any." – Erik Russell / Georgia Southern 
 
"The man who complains about the way the ball bounces is likely to be the one who dropped it." -  Lou Holtz / Arkansas - Notre Dame 
 
"When you win, nothing hurts."  -  Joe Namath / Alabama 
 
"A school without football is in danger of deteriorating into a medieval study hall."  -  Frank Leahy / Notre Dame 
 
"There's nothing that cleanses your soul like getting the hell kicked out of you."  -  Woody Hayes / Ohio State 
 
"I don't expect to win enough games to be put on NCAA probation.  I just want to win enough to warrant an investigation." -  Bob Devaney / Nebraska   

"In Alabama , an atheist is someone who doesn't believe in Bear Bryant."  -  Wally Butts / Georgia
 
"I never graduated from Iowa.  But I was only there for two terms - Truman's and Eisenhower's."  –  Alex Karras / Iowa 
 
"My advice to defensive players is to take the shortest route to the ball, and arrive in a bad humor."  -  Bowden Wyatt / Tennessee 
 
"I could have been a Rhodes Scholar except for my grades."  - Duffy Daugherty / Michigan State
 
"Always remember Goliath was a 40 point favorite over David."  -  Shug Jordan / Auburn     
"I asked Darrell Royal, the coach of the Texas Longhorns, why he didn't recruit me ."   He said, "Well, Walt, we took a look at you, and you weren't any good."  -  Walt Garrison / Oklahoma State 

"Son, you've got a good engine, but your hands aren't on the steering wheel."  -  Bobby Bowden / Florida State 

"Football is NOT a contact sport, it is a collision sport.  Dancing IS a contact sport." -  Duffy Daugherty / Michigan State 
 
After USC lost 51-0 to Notre Dame, his post-game message to his team was, "All those who need showers, take them."  -  John McKay / USC 

"If lessons are learned in defeat, our team is getting a great education."  -  Murray Warmath / Minnesota 
 
"The only qualifications for a lineman are to be big and dumb.  To be a back, you only have to be dumb."   -  Knute Rockne / Notre Dame
 
"We live one day at a time and scratch where it itches."   -  Darrell Royal / Texas    
 
"We didn't tackle well today, but we made up for it by not  blocking." -  John McKay / USC 
 
"I've found that prayers work best when you have big players."   -  Knute Rockne / Notre Dame
 
Ohio State 's Urban Meyer on one of his players: "He doesn't know the meaning of the word fear. In fact, I just saw his grades and he doesn't know the meaning of a lot of words."

Why do Tennessee fans wear orange? So they can dress that way for the game on Saturday, go hunting on Sunday, and pick up trash on Monday.

What does the average Alabama player get on his SATs? Drool.

How many Michigan State freshmen football players does it take to change a light bulb? None. That's a sophomore course.

How did the Auburn football player die from drinking milk? The cow fell on him.

Two Texas A&M football players were walking in the woods. One of them said, "Look, a dead bird." The other looked up in the sky and said," Where?"

What do you say to a Florida State University football player dressed in a three-piece suit? "Will the defendant please rise."

If three Rutgers football players are in the same car, who is driving? The police officer.

How can you tell if a Clemson football player has a girlfriend? There's tobacco juice on both sides of the pickup truck.
 
What do you get when you put 32 Georgia cheerleaders in one room? A full set of teeth.

University of Michigan Coach Jim Harbaugh is only going to dress half of his players for the game this week; the other half will have to dress themselves.
 
How is the Kansas football team like an opossum? They play dead at home and get killed on the road.

Why did the Tennessee linebacker steal a police car? He saw "911" on the side and thought it was a Porsche.

How do you get a former Illinois football player off your porch? Pay him for the pizza.

Posted in:General
Posted by Gene Tidgewell on October 27th, 2017 4:57 PM
Gene Tidgewell from Action Lending and Moonstone Real Estate here with a new blog post.
The jobs report was issued today but most of the data is skewed due to the effect on employment of Hurricanes Harvey and Irma. The jobs participation rate did not decrease though so the decrease in unemployment rate to 4.2% may be real.

Good news in wage inflation as wages are up 2.9 % over the last 12 months. 

A rate hike in December appears likely as the Fed tries to get where they should have been last year. As the Fed increases rates the likelihood of banks’ lending improves which will help grow the economy.

Let's see what happens in the next couple of months with all the geo political issues out there.

Enjoy the video attached




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Posted in:General
Posted by Gene Tidgewell on October 6th, 2017 5:22 PM

     June retail sales were released today were rather weak at an increase of 0.1 % versus expectations of an increase of .3 %. It appears people are still reluctant to spend money being unsure about health care and its costs, taxes and wage growth. There are too many balls in the air.

     Consumer Price Index (CPI) for June came in at year over year increase of 1.6 % versus expectations of 1.7 %. This is pretty anemic growth and shows the economy is still growing but very slowly. Washington needs to start to resolve the health care issue. It will not be corrected in one bill I do not think. After that if they are going to give the worker bees a chance to thrive they need to ease the tax burden on us. Maybe their pay should be tied to performance. If the Congress passes a bill they get paid. Higher pay for more important bills and $ 5 for the easy ones. Would that motivate them? LET ME KNOW.

     Rates were pretty much unchanged. Mortgage backed securities improved 9 basis points for the week. Yield on 10 year Treasuries dropped 5 basis points for the week.

     A light week for economic data next week so we will be at the mercy of the technical, talking Feds and geo political events.

     Remember if you have a HELOC that has started to amortize ACTION LENDING can help you combine the 2 loans into one loan at a good rate to ease the sticker shock of that increased payment on the HELOC.

We are Realtors also, as Moonstone Real Estate.

REMEMBER COLLEGE FOOTBALL STARTS ON 8/25/17. FOR YOUR VIEWING PLEASURE TODAY WE HAVE A LINK TO THE TOP TEN COLLEGE MARCHING BANDS. LET ME KNOW IF YOU AGREE OR WHO ELSE SHOLD BE CONSIDERED!

Top Ten College Marching Bands

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Posted in:General
Posted by Gene Tidgewell on July 14th, 2017 4:51 PM

      The jobs report came out today and was pretty good. New jobs increased by 222,000 and May was adjusted upward by another 14,000. Unemployment climbed to 4.4 % which is good because the growth was caused partially by an increase in the job participation rate to 62.8%. Average hourly wages increased 0.2 % which is considered good.

     The Fed minutes came out Wednesday and it appears the data supports that the Fed will raise rates one more time this year in December. They are concerned that inflation is not growing as fast as they want so the likelihood of 2 increases between now and January are pretty slim. The minutes also indicated that they plan to start downsizing their balance sheet most likely in September. As I stated in my last blog the plan is to do it gradually so as to not cause a spike in rates.

     Rates increased about an eight of a point this week due predominately to technicals. Nothing on the horizon to spark a big move up or down right now but wait until Monday, it could all change.

Saw this quote today “If you try to fail and succeed, which one have you done?”

Remember Action Lending now does REVERSE Mortgages as well as traditional Forward Mortgages

We are Realtors also, as Moonstone Real Estate.

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Posted in:General
Posted by Gene Tidgewell on July 7th, 2017 5:16 PM

Well the Fed raised the Fed Funds rate by 1/4 % last week as expected and they also indicated they will probably have one more increase this year either in September or in December. This also raised the prime rate for everyone and increased the rate on all HELOCS that are still in their interest only period.

The other big news is they announced that sometime this year they would start to reduce their purchases of Mortgage Backed Securities and US Treasuries to gradually reduce their Balance Sheet which now contains trillions of dollars in these items. They are currently purchasing about $30 million in mortgage backed Securities per month.

When they start they will reduce their MBS purchases by $4 million a month and increase it $4 million per quarter until they hit $20 million a month in 5 quarters. By doing this they will eventually wean themselves of MBS without causing a spike in rates. It is expected mortgage rates will increase more gradually following this plan. They will follow a similar pattern with US Treasuries until they have reduced their purchases by $30 million per month.

Remember Action Lending now does REVERSE Mortgages as well as traditional Forward Mortgages

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Posted in:General
Posted by Gene Tidgewell on June 30th, 2017 1:36 PM

The Fed meets June 13 and 14, 2017 and comes out with their interest rate decision at 11:30 AM PDT.

WILL THEY RAISE RATES?

It is expected that they will raise the Fed Funds rate another 0.250 %. Most also expect them to indicate this may be the last increase of the year. The jobs report came out last Friday and wage inflation was down. In addition the jobs participation rate was down 2/10 % which causes the unemployment rate to drop.

JOLTS (Job Opening and Labor Turnover Survey)

The JOLTS Report was issued Tues day 6/6/17 and indicated there are 6,044,000 job openings in the US. That number grew by 344,000 from the March report. Why so many? Employers cannot find properly trained or educated candidates for the jobs they have. That is a problem.

The Mortgage Backed Securities have been moving pretty much sideways the last week and rates have been relatively flat.

BORROWER ALERT

I attended a real estate class today on the process of selling properties that have to go through Probate. Going through Probate can add up to a year to the process of selling an inherited property. I AM NOT AN ATTORNEY, but I would recommend to all my clients to investigate establishing a Living Trust and putting your home in it as part of your Estate Planning process. If you do not have a Trust attorney give me a call and I can refer you to a competent Trust attorney.

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Posted in:General
Posted by Gene Tidgewell on June 9th, 2017 5:13 PM

The Fed meets June 13 and 14, 2017 and comes out with their interest rate decision at 11:30 AM PDT.

WILL THEY RAISE RATES?

Who knows? What we do know is that there decision is based, among other things, on the employment picture and on inflation.

EMPLOYMENT

Even though there may be underemployment the Fed feels we are full employment so that is no longer an issue.

INFLATION

The Fed favors Personal Consumption Expenditures (PCE) as a measure of inflation instead of the Consumer Price Index (CPI). April PCE was re\leased May 30the and came in at 1.5 % year over year down from 1.7 % in March and well below the 2.0 % inflation goal of the Fed.

Wage inflation comes out Friday with the jobs report. If it is strong then that may give the Fed the impetus to raise rates June 14. In April wage inflation was at 2.5 % year over year down from 2.7 % in March.

The Mortgage Backed Security market has not yet priced in a rate increase by the Fed on June14th. It has been trading in a narrow range for several weeks and will remain so UNLESS WAGE INFLATION IS STRONG ON FRIDAY or if North Korea keeps firing missiles.

If wage rate inflation is strong look for the Fed to raise the Fed Funds rate and for mortgage rates to move up. If not rates should stay in a tight range unless something on the Geo - political arena crops up.

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Posted in:General
Posted by Gene Tidgewell on May 31st, 2017 4:39 PM

A number of great games this weekend in both the Men’s and Women’s NCAA basketball Tournament. We have some video highlights of last night’s Sweet 16 games

A pretty quiet week as far as financial announcements this week affecting mortgage backed securities. Rates improved some this week as the market liked the fact that the Fed finally raised the Fed funds rate last week. Talking Feds this week seem to indicate no more increases until June at the earliest. Oil prices are down to 47 and change as supplies continue to be plentiful.

 

Gross Domestic Product and Personal Consumption Expenditure’s reports are due out next week. Other than that the economic calendar is pretty light next week.

 

Economic Factors that could cause mortgage rates to increase

 

  1. The Fed reducing their balance sheet by no purchasing new mortgage backed securities with the principal collected
  2. If and when the Tax Cuts are passed they are inflationary so they will cause rates to increase
  3. The Fed increasing the Fed Funds rate

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Posted in:General
Posted by Gene Tidgewell on March 24th, 2017 4:13 PM

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