Allwin Capital

Another great review for Chi Mak - Loan Officer. As a Broker Owner of franchise office one must create synergies with top in in their filed. One such loan agen...t that I like to recommend is Chi Mak from Allwin Capital. Chi's professionalism, integrity, and knowledge speaks for itself when it comes to loan. He is at top of his game, staying ahead of closing files, deadlines, and complications. He addresses concerns head on and does not display any sort of hesitation. Chi does not just close files for the sake of numbers, he creates long lasting relationship. His approach is to provide clients with all options before locking them in for any particular type of loan. Chi has been involved with our office for number of months and on thing in particular that I admire is that he is reachable any time of the day. He keeps clients in the loop during their purchases process. He doesn't stop even when complications arise. - Parm Chi Mak (Fluent in Cantonese & Mandarin) CA BRE 01372415 / NMLS 307411 Cell: (650) 799-9592 Email: [email protected]

Stop paying rent and buy a home

Mortgage applications decrease Mortgage applications dropped 0.8% on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association's weekly mortgage applications survey. On an unadjusted basis, the MBA’s Market Composite Index decreased by 0.4% compared with the previous week; the refinance index dipped 3% from last week and the seasonally adjusted purchase index rose by 1% from a week ago.The unadjusted purchase index rose 2% from the week... prior and year-over-year was 4% higher. Refi activity also decreased to 44% of total mortgage applications the lowest since October 2008 from 45.1% a week ago; adjustable-rate mortgage also dipped to 8.5% of total applications. Meanwhile, FHA applications declined to 10.8% from the prior week’s 10.9%; VA applications rose, with 11% from the prior week’s 10.1%; and USDA applications increased to 1% from the prior week’s 0.9%. http://www.mpamag.com//mortgage-applications-decrease-6428

Mortgage rates drop for second consecutive week Mortgage rates dropped for the second week in a row last week, according to Freddie Mac but they’re still far higher than last year at this time. The bad news is that mortgage rates are still far higher than they were last year at this time. The good news is that the continual back-and-forth of mortgage rates don’t seem to be hurting home sales, according to Sean Becketti, Freddie Mac chief economist.... Despite recent mortgage rate fluctuation, new home sales far exceeded expectations in February and jumped 6.1% to an annualized rate of 592,000, Becketti said. The 30-year fixed-rate mortgage fell to 4.14% from 4.23% the week prior. Last year at this time, the average rate for the 30-year FRM was 3.71%. The 15-year fixed-rate mortgage dropped to 3.39% from 3.44% from the week before. Last year at the same time, the average rate for the 15-year FRM was 2.98%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage fell to 3.18% from 3.24% from the week before. Last year at this time, it averaged 2.90%. http://www.mpamag.com//mortgage-rates-drop-for-second-cons

Another great review for Chi Mak - Loan Officer. As a Broker Owner of franchise office one must create synergies with top in in their filed. One such loan agen...t that I like to recommend is Chi Mak from Allwin Capital. Chi's professionalism, integrity, and knowledge speaks for itself when it comes to loan. He is at top of his game, staying ahead of closing files, deadlines, and complications. He addresses concerns head on and does not display any sort of hesitation. Chi does not just close files for the sake of numbers, he creates long lasting relationship. His approach is to provide clients with all options before locking them in for any particular type of loan. Chi has been involved with our office for number of months and on thing in particular that I admire is that he is reachable any time of the day. He keeps clients in the loop during their purchases process. He doesn't stop even when complications arise. - Parm Chi Mak (Fluent in Cantonese & Mandarin) CA BRE 01372415 / NMLS 307411 Cell: (650) 799-9592 Email: [email protected]

Mortgage Rates Back at 2-Week Lows May 16 2017, 2:50PM Compared to yesterday, mortgage rates are either a little bit higher or lower depending on the lender at ...the moment. On average, they've inched just past last Friday's levels, meaning they're the lowest in 2 weeks. As nice as that sounds, it's worth noting that we're really splitting hairs here. Most anyone pricing out a mortgage right now won't see any difference in their rate quote over the past few days. The biggest drop occurred last Friday and we haven't seen appreciable movement since then. Most lenders continue to quote conventional 30yr fixed rates in a range of 4.0-4.25% for top tier scenarios, with 4.125% being the most prevalent. 4.0% is the runner-up and the laggards are still up at 4.25%. In the bigger picture, we've been looking for confirmation that the recent trend toward higher rates, which began in mid-April, had run its course. While today's improvement doesn't resoundingly offer that confirmation, it's good enough to consider the previous trend defeated for now. Risk-averse borrowers can view this as a cue to lock. Risk-tolerant borrowers can view it as license to keep floating and hoping for more improvement (as long as they're prepared to lock if things take a turn for the worse). Loan Originator Perspective Another sideways day in the range. No change to my lock float stance, recommending float if we’re under 2.42 in the hope of revisiting 2.1. On sideways days I like to keep in mind that floating can have two benefits. Both time and market improvements can help improve rates for borrowers. A 45 day lock can be more attractive than a 60 day lock in most instances. -Jason Anker - Sr. Loan Officer Stocks swooned, and bonds posted marginal gains today. My pricing improved slightly from Monday's. It's still too early to know whether we've snapped rates' recent upward trend or just paused it. Borrowers within 30 days of closing should have a detailed risk/reward lock discussion with their loan officer. Guess I'm conservative, but sure tempting to grab these gains. -Ted Rood, Senior Originator Today's Best-Execution Rates 30YR FIXED - 4.125% FHA/VA - 3.75 - 4.0% 15 YEAR FIXED - 3.375%-3.5% 5 YEAR ARMS - 2.75 - 3.25% depending on the lender Ongoing Lock/Float Considerations Investors were relatively convinced that the decades-long trend toward lower rates had been permanently reversed after Trump became president, but such a conclusion would require YEARS to truly confirm Instead of continuing higher in 2017, rates instead formed a narrow, sideways range, and held inside until April. Investor perceptions are shifting such that fiscal reforms and other policy developments will need to live up to expectations in order to push rates higher. Geopolitical risks would also need to avoid flaring up (more than they already have) For the first time since the election, we're in a rate environment where you wouldn't be crazy not to lock at every little opportunity/improvement. Until/unless it's broken, the highest rates of early-2017 mark the ceiling, and we're now waiting to see how much lower we can go from here. Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders. The rates generally assume little-to-no origination or discount except as noted when applicable. Rates appearing on this page are "effective rates" that take day-to-day changes in upfront costs into consideration.

Stop paying rent and buy a home

Owning beats renting in new households for the first time in a decade More new US households chose to buy than rent in the first quarter, marking the first time in a decade that new households have favored buying over renting, according to a Wall Street Journal report. According to Census Bureau data, 854,000 new-owner households were formed in the first quarter of 2017, handily beating the 365,000 new-renter households formed in the same quarter.... The Q1 numbers mark the first time since the third quarter of 2006 that new-owner households exceeded the number of new-renter households, Trulia Chief Economist Ralph McLaughlin told the Journal. The fact that many new owner-occupied households are forming is really our first sign that the homeownership rate is on the rise, McLaughlin said. The homeownership rate fell from 63.7% in Q4 2016 to 63.6% in Q1 2017, but was still a significant increase from the 50-year low homeownership rate of 62.9% in Q2 2016. The rise in new-owner households is also a good sign for consumer confidence in the wider economy, Deutsche Bank economist Joseph LaVorgna told the Journal. People are looking at housing as being a bit more attractive as memories of the financial crisis fade, LaVorgna said. Another indication of the increase in the demand for homeownership is the boom in existing-home sales. Existing-home sales reached a decade-high peak in March, rising by 4.4% to a seasonally adjusted annual rate of 5.71 million homes, according to the National Association of Realtors (NAR). NAR also reported a boost in the interest of first-time buyers, who made up 32% of the market in March, up from 30% in the same month last year. http://www.mpamag.com//owning-beats-renting-in-new-househo

Is renting really cheaper than owning a home? The responsibility of owning a home can be intimidating for people who’ve only rented in the past, but new data from Zillow suggests renting can actually cost more. Zillow’s analysis found out that sans increasing monthly housing costs, a typical renter can buy a home almost 50% more expensive than the median valued home and still get to keep the same amount of monthly housing budget.... The median US home value is $196,500, while the median rent in the country is $1,416 per month an amount enough to pay for monthly housing expenses needed to own a $289,505 home. The decision between buying and renting is a financial trade-off between saving more each month on a mortgage payment versus spending more on rent but taking advantage of the location and lifestyle amenities urban renting often offers, said Zillow Chief Economist Dr. Svenja Gudell. Recent slowdowns in rent growth may take some of the edge off for renters saving to become homeowners. This is good news, since saving a down payment, qualifying for a loan and finding a home available at a manageable price remain hurdles for millions of aspiring buyers." Renters in Cleveland can afford a $174,194 home while retaining monthly housing costs, which is representative of more than 80% of homes on the market now, according to Zillow. On the other hand, San Francisco is one of the only cities where monthly rental payment does not cost more than owning a median valued home. Here are 15 cities and their rent-versus-owning ratio from Zillow: http://www.mpamag.com//is-renting-really-cheaper-than-owni

Mortgage lenders optimistic for purchase market Despite the challenges of tight inventory and rising interest rates, mortgage lenders are overwhelmingly optimistic about their business this year. A survey released Wednesday by independent mortgage bankers’ alliance The Lenders One Cooperative, reveals that 94 per cent of respondents expect an increase in mortgage purchase production. A year ago, the figure was 62 per cent.... Housing inventory remains limited and interest rates have increased sharply since the election, said Bryan Binder, chief executive officer of Lenders One. To be successful in this environment, lenders need to focus on the purchase market and new innovation to replace lost refinancing volume. Lenders must also focus on tools and solutions to help them improve operating efficiencies within their businesses. The lenders are expecting more first-time buyers this year as economic improvement boosts sentiment among this group. There is also an expectation of increased business from nontraditional buyers, boomerang buyers and boomers. Jumbo loans are also flagged for growth with 91 per cent of lenders expecting a significant increase in jumbo mortgage origination volume for their organization in 2017. One group will shape US housing markets report reveals US housing markets will be shaped by the homeownership desire of immigrants according to a new report from the Urban Land Institute. This will be driven by foreign-born buyers seeking to own homes in suburban neighborhoods. The study by the institute’s Terwilliger Center for Housing looks at the impact of foreign buyers since the Great Recession and found that they have contributed significantly to recovery and stabilization of housing markets. Other key findings of the report include immigrants’ desire for single-family detached homes, often in suburbs where employment opportunities may be better. New homes are in demand for foreign buyers but the report highlights that existing homes will also benefit from increased demand, enabling boomers to downsize and therefore boosting the market for smaller homes for older buyers. "If recent shifts in immigration flows continue, an increase in higher-income immigrants including rising numbers from China and India could accelerate the demand for homeownership among the foreign-born population," the report says. "Without sustained immigration, the housing market could weaken and in many markets the impact could be dramatic." The report says that US immigration policy will be a key factor in demand for homeownership and the growth of communities. http://www.mpamag.com//morning-briefing-mortgage-lenders-o

U.S. home sales shoot up to 10-year high WASHINGTON Americans purchased homes in March at the fastest pace in over a decade, a strong start to the traditional spring buying season. Sales of existing homes climbed 4.4 percent last month to a seasonally adjusted annual rate of 5.71 million, the National Association of Realtors said Friday. This was the fastest sales rate since February 2007.... The U.S. housing market faces something of a split personality: A stable economy has intensified demand from would-be buyers, but the number of properties listed for sale has been steadily fading. The result of this trend is prices rising faster than incomes, homes staying on the market for fewer days and a limit on just how much home sales can grow. It’s a situation that rewards would-be buyers who can act quickly and decisively. The inventory shortage largely reflects the legacy of a housing bubble that began to burst a decade ago. Foreclosed properties were snapped up by investors who turned the homes into income-generating rentals, depriving the market of supply. And many owners who escaped the downturn unharmed chose to refinance their mortgages at extremely low rates, possibly making them hesitant to move to a new house that could increase their monthly costs. This mismatch between supply and demand can be seen in two simple figures tracked by the Realtors. Sales have risen 5.9 percent over the past year, but the inventory of homes for sale has fallen 6.6 percent to 1.83 million properties. This means there are essentially more buyers chasing fewer properties. The consequences can be seen in home values and days on the market. The median sales price in March climbed 6.8 percent over the past year to $236,400, significantly outpacing wage growth. And it took an average of 34 days to complete a sale, compared to 47 days a year ago. In March, sales rose in the Northeast, Midwest and South but declined in the West. Demand might increase further as mortgage rates began to dip in recent weeks. Home loan costs had been climbing after President Donald Trump won the November election, under the belief that the government would engage in forms of stimulus such as tax cuts and greater deficits that could cause higher levels of inflation. But major initiatives such as tax reform have stalled in recent weeks as the administration has yet to put forward a proposal, prompting more doubts as to when and whether any stimulus might arrive. Mortgage buyer Freddie Mac said Thursday that the average interest rate on 30-year fixed-rate home loans declined to 3.97 percent this week from 4.08 percent last week. The average is now at its lowest level in five months. http://www.mercurynews.com//u-s-home-sales-shoot-up-to-10/

Mortgage rates drop to lowest mark of 2017 Freddie Mac The 30-year fixed-rate mortgage (FRM) rate dropped to a new 2017 low during the week ending April 13 as it lost 2 basis points to reach 4.08%, according to a survey Freddie Mac. This marked a fourth consecutive week of decline. A year ago, it averaged 3.58%. Following a weak March jobs report, the 10-year Treasury yield dropped about 5 basis points, said the government-sponsored enterprise. ... The 15-year fixed-rate mortgage dropped to 3.34 % with an average 0.5 point, compared with 3.36% the previous week. It was 2.86% at that time a year ago. The 5-year Treasury-indexed hybrid ARM dipped to 3.18% with an average 0.4 point, from last week’s 3.19%. A year ago, it averaged 2.84%. Currently, about 125 lenders are surveyed each week and the mix of lender types thrifts, credit unions, commercial banks and mortgage lending companies is roughly proportional to the level of mortgage business that each type commands nationwide, said Freddie Mac. http://www.mpamag.com//mortgage-rates-drop-to-lowest-mark-

Is California housing overvalued, or is there minimal risk of falling prices? Welcome to the quirky world of slicing and dicing housing data. Two recent reports from Fitch Rating, a Wall Street credit reviewer, and Arch MI, a seller of mortgage insurance attempt to gauge the stability of regional housing markets by tracking changes in real estate metrics vs. other economic measurements. It’s certainly a chore worth doing after the real estate debacle of a decade ago.... Using a California prism, the studies draw wildly different conclusions. Fitch concludes California housing is among the most overvalued housing markets in the nation. Yet California is not on Arch MI’s list of riskiest places to own. Let’s go deeper into how the reports measure California housing, which was appreciating at 6.7 percent annual rate in the fourth quarter vs. gains of 0.4 percent nationwide, according to one government yardstick. Fitch scored California housing at the end of 2016 as 5 percent to 9 percent overvalued. Compare that with national values seen as sustainable (somewhere between 5 percent overvalued to 5 percent undervalued). California was one of 10 states with overvalued housing by Fitch’s standards. Four states had the same pricing mismatch as California: Florida, Hawaii, Oregon and Utah. Next states on the dicier scale 10 percent to 14 percent overvalued were Arizona, North Dakota, Nevada and Texas (yeah, those guys!). Idaho was in the worst shape at 15 percent to 19 percent overvalued. But Arch MI saw California with riskiness below the norm. California’s risk of falling home prices is minimal or a 2 percent change of depreciation in the next two years. National risk by this math is 4 percent. This is not just a statistical debate about California housing. Look at Fitch’s list of 10 most overvalued states vs. Arch MI’s eight riskiest. You’ll find just one place in common: North Dakota, a state with an economy hard hit by the steep decline in energy prices. Among large metropolitan areas, the Los Angeles-Orange County market and San Francisco area were listed as 5 percent to 9 percent overvalued by Fitch but were not among Arch Mi’s riskiest regions. And of Fitch’s 11 overvalued metros, only Miami was scored riskier than most by Arch MI. How can this analytical gap be? You can sneer and recite a few jokes about economists and their varying opinions. Or you look hard to find common thinking within these two analyses and the 17 state housing markets collectively cited as riskier than the rest. http://www.mercurynews.com//is-california-housing-hot-or-/

Mortgage applications decrease Mortgage applications dropped 0.8% on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association's weekly mortgage applications survey. On an unadjusted basis, the MBA’s Market Composite Index decreased by 0.4% compared with the previous week; the refinance index dipped 3% from last week and the seasonally adjusted purchase index rose by 1% from a week ago.The unadjusted purchase index rose 2% from the week... prior and year-over-year was 4% higher. Refi activity also decreased to 44% of total mortgage applications the lowest since October 2008 from 45.1% a week ago; adjustable-rate mortgage also dipped to 8.5% of total applications. Meanwhile, FHA applications declined to 10.8% from the prior week’s 10.9%; VA applications rose, with 11% from the prior week’s 10.1%; and USDA applications increased to 1% from the prior week’s 0.9%. http://www.mpamag.com//mortgage-applications-decrease-6428

Mortgage rates drop for second consecutive week Mortgage rates dropped for the second week in a row last week, according to Freddie Mac but they’re still far higher than last year at this time. The bad news is that mortgage rates are still far higher than they were last year at this time. The good news is that the continual back-and-forth of mortgage rates don’t seem to be hurting home sales, according to Sean Becketti, Freddie Mac chief economist.... Despite recent mortgage rate fluctuation, new home sales far exceeded expectations in February and jumped 6.1% to an annualized rate of 592,000, Becketti said. The 30-year fixed-rate mortgage fell to 4.14% from 4.23% the week prior. Last year at this time, the average rate for the 30-year FRM was 3.71%. The 15-year fixed-rate mortgage dropped to 3.39% from 3.44% from the week before. Last year at the same time, the average rate for the 15-year FRM was 2.98%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage fell to 3.18% from 3.24% from the week before. Last year at this time, it averaged 2.90%. http://www.mpamag.com//mortgage-rates-drop-for-second-cons