Short Sale Seminar
Are you behind on your house payments? Not sure what to do? Join me on April 19th for a short sale seminar and find out your options.
Location: W.M. Campbell @ 130 Amber Grove, Suite 120, Chico
Time: 6pm – 7pm
Weekly Market Report
MARKET COMMENT
Mortgage bond prices rose last week helping mortgage interest rates improve slightly. We started the week on a positive note with rates falling amid tame inflation readings. The producer price index fell 0.6% and the core rose 0.1%. The headline figure was the lowest since July 2009. Weekly jobless claims showed the employment situation remained poor. Unfortunately we saw the market fall a bit pushing rates higher Thursday afternoon following the announcement of the size of the upcoming Treasury auctions and amid fear of future rate hikes. Rates fell about 1/8 of a discount point for the week.
The durable goods and gross domestic product data will be the most important releases this week. Supply concerns will continue to weigh heavily upon the bond market with the continued record Treasury auctions. If foreign demand falters mortgage interest rates could be pressured higher.
LOOKING AHEAD
| Economic Indicator |
Release Date and Time |
Consensus Estimate |
Analysis |
| Existing Home Sales | Tuesday, March 23, 10:00 am, et |
Down 0.9% | Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates. |
| 2-year Treasury Note Auction | Tuesday, March 23, 1:15 pm, et |
None | Important. $44 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. |
| Durable Goods Orders | Wednesday, March 24, 8:30 am, et |
Up 0.5% | Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates. |
| New Home Sales | Wednesday, March 24, 10:00 am, et |
Up 1.5% | Important. An indication of economic strength and credit demand. Weakness may lead to lower rates. |
| 5-year Treasury Note Auction | Wednesday, March 24, 1:15 pm, et |
None | Important. $42 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. |
| 7-year Treasury Note Auction | Thursday, March 25, 1:15 pm, et |
None | Important. $32 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. |
| Q4 GDP third estimate | Friday, March 26, 8:30 am, et |
Up 5.8% | Important. The aggregate measure of US economic production. Weakness may lead to lower rates. |
| U of Michigan Consumer Sentiment | Friday, March 26, 10:00 am, et |
71 | Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates. |
GROSS DOMESTIC PRODUCT
The Gross Domestic Product (GDP) is one the most important reports during any given quarter. GDP is a measure of US economic output and spending. The report is significant in that it provides investors, analysts, traders, and economists with a comprehensive report of the direction of the economy. In addition, it also influences the decisions of Federal Reserve policy makers, Congressional budget employees, and corporate financial planners.
GDP is the sum total of goods and services produced by the United States. The initial report is often based on incomplete data. Therefore, additional revisions are released over the following two months. There are often substantial differences between the initial release and the revisions. The mortgage-backed security market generally responds favorably to weaker GDP growth.
While revisions generally don’t move the market like the original release, they still have the potential to cause market volatility if vastly different from the prior releases. Be cautious heading into the data this week.
71 Ceres Circle, Chico
This home sits on a quiet and charming mature street. Very mature landscaping. Backyard wraps around home. Rock fireplace in family room. Open floor plan. Kitchen overlooks formal dining room with sliding glass door that opens to the garden. Close to schools and freeway access. Bidwell park is located just up the street. Bring all offers.
Additional Photos:
3073 Ceanothus Ave, Chico “MUST SELL”
In Hancock Park! Wonderfully maintained home. Formal entry with very large kitchen that overlooks family room with fireplace. Kitchen has tons of counter space and gas range. Extra large laundry room with tons of storage. Wood blinds throughout the home. Master bedroom has french door to garden area. Closet has cathedral ceilings for endless amount of space. Sunken tub and dual sinks. Large open floor plan. Front and back landscape with drip systems. Centrally located and close to neighborhood park and Upper Bidwell Park! Submit all offers to jodi@jodibuda.com
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Short Sale Process
Agent lists the property and calculates that the sales price results in a short pay.
Agent or Attorney contacts the lender or lenders.
Lender requests documents (appraisal, hardship letter, etc.).
Property is marketed for sale with the contingency that the lender approval is required before close of escrow.
Buyer makes an offer that is accepted. Ofter and estimated closing statement sent to lender.
Lender will provide decision and if approved the lender may request that certain fees or costs be reduced.
Escrow closes. Lender keeps all proceeds from the sale minus closing costs.
Lender deals with the unpaid balances that is still owning.