What is AMI and how does HUD use it?
What is AMI? It stands for "area median income". In the old days, HUD issued the median income estimates, but now the Federal Housing Finance Agency does them. What good are they? Well, for starters, anyone who specializes in low and moderate income borrowers uses them, especially for Freddie Mac's Home Possible Mortgage. Although they kick in after November 1, you may want to check them out: Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-22
For more information please visit [http://www.californiadirectlender.com] or to get updates on Mortgage Rates visit Ascent Home Loans / California Direct Lender
"Dog Days of Summer". Speaking of that, and Philadelphia, where "Hold your beagle, Vick's an Eagle!" was a darned clever headline, the Philly Fed Survey was stronger than expected at 4.2. This is the highest it has been since November 2007. (I love these numbers like "4.2" - what the heck does that mean?) We also had Leading Economic Indicators +.6% for July, which is the first time since 2004 that LEI has gone up 4 straight months!
Sugar prices are the highest they've been since the Carter Administration. I'd heard a report that our government, in order to protect US sugar producers, requires that 85% of sugar be from US sources. I couldn't find anything to substantiate it, but doing the research turns up some mildly interesting websites.
Regardless, the market took sugar prices, the Philly Fed, and LEI in stride, and in fact mortgage prices traded in a very narrow range for most of the day. Volumes, both in locks and mortgage-backed security trading, are light. And we still have another week or two until Labor Day!
A cloud on the horizon is the auction next week. The Treasury will be selling $109 billion: $30 billion in 6-month bills, $39 billion in 5-yr notes, $27 billion in 1-yr T-bills, $42 billion in 2-yr notes, $31 billion in 3-month T-bills, and $28 billion in 7-yr notes. Holy smokes! This, by anyone's measure, is a lot of supply, but given that originations are a little slow, mortgage prices might do well relative to Treasury prices. Earlier this month the 10-yr Treasury hit 3.89%, but it got down to 3.40% Wednesday, but really, how much lower can rates go unless there is a big meltdown in stocks? Currently mortgages are about unchanged from Thursday afternoon, and the 10-yr is at 3.44%.
For more information please visit http://www.californiadirectlender.com or to get updates on Mortgage Rates visit Ascent Home Loans / California Direct Lender
As always I am trying to provide the up to date information about anything that could affect the Mortgage Industry including the direct Consumer and Industry professionals. Thank you for taking the time to read my daily notes and I hope it is helpful!!
For more information please visit [http://www.californiadirectlender.com] or to get updates on Mortgage Rates visit Ascent Home Loans / California Direct Lender
"Dog Days of Summer". Speaking of that, and Philadelphia, where "Hold your beagle, Vick's an Eagle!" was a darned clever headline, the Philly Fed Survey was stronger than expected at 4.2. This is the highest it has been since November 2007. (I love these numbers like "4.2" - what the heck does that mean?) We also had Leading Economic Indicators +.6% for July, which is the first time since 2004 that LEI has gone up 4 straight months!
Sugar prices are the highest they've been since the Carter Administration. I'd heard a report that our government, in order to protect US sugar producers, requires that 85% of sugar be from US sources. I couldn't find anything to substantiate it, but doing the research turns up some mildly interesting websites.
Regardless, the market took sugar prices, the Philly Fed, and LEI in stride, and in fact mortgage prices traded in a very narrow range for most of the day. Volumes, both in locks and mortgage-backed security trading, are light. And we still have another week or two until Labor Day!
A cloud on the horizon is the auction next week. The Treasury will be selling $109 billion: $30 billion in 6-month bills, $39 billion in 5-yr notes, $27 billion in 1-yr T-bills, $42 billion in 2-yr notes, $31 billion in 3-month T-bills, and $28 billion in 7-yr notes. Holy smokes! This, by anyone's measure, is a lot of supply, but given that originations are a little slow, mortgage prices might do well relative to Treasury prices. Earlier this month the 10-yr Treasury hit 3.89%, but it got down to 3.40% Wednesday, but really, how much lower can rates go unless there is a big meltdown in stocks? Currently mortgages are about unchanged from Thursday afternoon, and the 10-yr is at 3.44%.
For more information please visit http://www.californiadirectlender.com or to get updates on Mortgage Rates visit Ascent Home Loans / California Direct Lender
As always I am trying to provide the up to date information about anything that could affect the Mortgage Industry including the direct Consumer and Industry professionals. Thank you for taking the time to read my daily notes and I hope it is helpful!!
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