Our Weekly Real Estate update for South Orange County and Coastal, October 2014 by Amir Vahdat, 949-682-9090

In an effort to keep you informed on the latest economic trends and developments and their potential effects on the real estate and mortgage industries, we’ve compiled the latest stories making headlines for the week of October 7, 2014.OCT6 -Weekly_Report_DP_001

Job Openings in U.S. Increase to Highest Level in 13 Years.
With numbers up from July, and the highest level since January 2001, there were 4.8 million job openings on the last business day of August. The hires rate (3.3%) was down and the separations rate (3.2%) was little changed in August.

Treasury 3-Year Notes Advance Before U.S. Sells $27 Billion.
The 10 year UST is now up 12/32 in price to yield 2.37% as of 12:15 PM, and FNMA 3.0% are up 7+/32, 3.5% +7/32, and 4.0% +4+/32.

Homebuilders Offer Freebies as Booming U.S. Markets Cool.
New-home sales have been uneven nationwide, dropping in June before rising in July and August.  The federal government is reducing its share of the mortgage market to lure back private capital, and cut FHA loan sizes in 652 high-cost U.S. counties in January. “We were having a nice robust recovery and then that happened,” said Buddy Satterfield, president of the Arizona division for Shea Homes.

What Will Regulators Target Next.OCT6 -Weekly_Report_LB_001
At a mortgage conference last week, top enforcement officials from the Department of Justice, Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency said they have ramped up investigations of the mortgage space. Steven Rosenbaum, Chief of Housing and Civil Enforcement in the DOJ’s Civil Rights Division said, “We do not regulate you. We do not supervise you. We do sue you”. In addition, several attendees said they expected the agencies to focus on fair lending scrutiny of their portfolios, but were still struck by certain regulators’ sometimes aggressive tone. OCT6 -Weekly_Report_LN_001

MBS Day Ahead: Still Slow From a Calendar Standpoint; Still Waiting on Techs and Stocks.
After an exceptionally busy week last week and with very little on the calendar of scheduled events, this is an understandably slow week for bond markets. As far as market movers are concerned, all we have on the schedule are the Treasury auctions, starting with today’s 3yr, and Wednesday’s FOMC Minutes.

One reason borrowers are having an easier time obtaining mortgages is because lenders are reducing or eliminating investor overlays.


While a slowing sales pace may take other sellers by surprise, be smart about pricing your home aggressively. Buyers are still looking; they are simply showing more reservation than during the peak of the summer sales season. Show that your home is the best location, condition and price for the money, and you’ll find an eager buyer quickly.


If you’ve been turned down for a mortgage within the last two years, it may be worthwhile to re-apply. You may be surprised at how much your lender wants to loan you money now. If you have good credit, now is the time to lock in great low rates.


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