The Mortgage Man

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Archive for Pensacola Mortgage

Twitter Me This…

For months now I have heard the “buzz” about and its ability to micro blog whatever you are doing at any given time.  I of course didn’t see the point.  But,  since it is free, I went ahead and signed up for an account about 9 months ago, and proceeded to do absolutely nothing with it.

Now, after getting asked repeatedly about twitter, and after getting my first confirmed real estate lead from there, I have had my light bulb moment.  If someone is following me on twitter, they know that I am a mortgage banker.  And, they will also get to see everytime I update something on my profile such as a new blog post, or today’s mortgage rates, or what the neighbor’s cat is doing in my yard.

The concept of Twitter is so simple, that I truly didn’t get why you would even bother, until recently.  I am by no means a “twitter-holic”, but I an trying to more frequently update what is going on with me for those interested in me or mortgages or real estate or all of the above.

You can follow me on Twitter by clicking the Twitter icon on the right side of this screen.

For your daily mortgage rates, go to, or call me at 850-221-8334.


Tuesday October 21, 2008

World’s largest bond fund increases stake in mortgage backed securities.

Mortgage bonds moved higher yesterday on the news that Pimco, the world’s largest bond fund, has increased it’s stake in mortgage backed securities to an all time high.  This led investors to believe that the risk is worth the price in mortgage bonds, and prices soared.

As a home buyer, this means that rates got a lot more aggressive yesterday, and if you are actively seeking a home, it might be a good time to lock your rate.  The drastic increase in rates last week have been almost completely erased, and on a technical level, mortgage bonds have moved back above the 25, 50, 100 and 200 day moving averages.  Pushing through those levels of resistance is a positive sign long term for mortgage rates.

For the latest rates, check

Mortgage Rates Attempt A Recovery

Mortgage Bonds have been slaughtered lately, but may be correcting.

If you checked rates last week, and then looked again this week, you may have noticed that they are about .5% worse.  Mortgage rates are based on the trades that happen with mortgage bonds and mortgage backed securities.  When traders and investors are buying them, the price goes up, and mortgage rates come down.  When the market is scared of them, the demand decreases which drives up the yield curve for mortgage bonds and therefore causes interest rates to rise to a point where investors are comfortable buying the paper.

If you were looking at a mortgage bond trading chart last week, it looked similar to rolling a marble off the kitchen table…not good.  This week, bonds have been recognized as over-sold, and have recovered almost 50% of the losses.  For answers to your mortgage and real estate questions, check back here often.

If you are currently interested in taking advantage of this incredible real estate market, call me at 888-257-8383, or apply online at

Thinking About Refinancing? Now May Be The Time.

Interest rates are trending better, and it could be the time for you to take advantage.

Yesterday, mortgage bonds were trading at prices that were tipping towards the resistance level of the 200 day moving average.  Then today….wow!  The trading day is not over yet, but if bonds close at current levels, they will have decidely crushed through the important 200 day moving average, and this is very positive for the trend on interest rates going forward.

As you are aware (if you read this blog regularly), mortgage rates are determined by the bond market and they fluctuate daily with the market.  This is the reason that we have “rate locks” so that you can take advantage of a good day in the market to lock in your mortgage rate before closing.  This means that the rat you have been waiting to see before refinancing may be close.  If you think it may be time to refinance, give me a call, and I can tell you fairly quickly whether it is in your best interest or not.

You can also check out the latest rates at

Pensacola Real Estate Is Making A Comeback!

New housing report shows the best quarter of the last 5 consecutive.

The post below is cut and pasted from a report that I received from Emerald Coast Appraisal Services.  I have been saying for a while that the market appears to be picking up, and here is the proof of it.  Not only did housing sales increase, but of the 19 metropolitan markets studied in Florida, Pensacola came up with the largest increase.  A special thanks to Roger Kinnard for making this information available.

Emerald Coast Appraisal Services

409 S. Navy Blvd.

Pensacola, Florida 32507

Phone: 850-455-3333 Fax: 850-456-0192


The State of the Pensacola Housing Market – 06/2008

(Roger Kinnard, St. Cert. Res. REA #2782, RAA)

As spring transitions into summer, our real estate market appears to be gaining some momentum and the traditional sales season is underway. Many indicators of activity are up and the message that this is a buyers market and a good time to buy appears to be sinking in. While all of the positives are tempered by the remaining overabundance of active listings and declining values in many segments of the market, they are undeniable.

The Office of Federal Housing Enterprise Oversight issues a housing price index every quarter that measures housing price trends in numerous metropolitan statistical areas throughout the country. The Pensacola market has posted 5 negative quarters in a row, until now. The latest housing price index shows Pensacola gaining .76% in the first quarter of 2008. While less than 1% many not sound impressive, it is the highest number posted by any market in the state of Florida. Out of 19 markets studied in Florida only 3 posted a positive number and Pensacola had the highest increase.

The latest statistics issued by our own Pensacola Association of Realtors show that the median price for May 2008 ($170,900) is higher than the median price for May 2007 ($170,500). While the volume of sales continues to lag behind last year by around 24%, the number of sales has increased every month since January. Supply has remained stable at around 6,400-6,500 units for sale throughout the year to date.

The significance of these signs of stabilization is twofold. Not only are they positive indicators for the future of this market, but they could also affect the number of potential buyers who can qualify for loans. On the basis of previous OFHEO reports, association of Realtors information, and other sources of data, FNMA and many individual lenders have designated the Pensacola market to be a declining market. A loan originated in a designated declining market has different underwriting and qualifying standards. While FNMA has recently announced changes to their policy of requiring higher down payments in declining markets, many lenders remain tentative about making loans in declining markets. If these positive indicators hold true, it is possible that Pensacola may be taken off the list of declining markets.

As mentioned previously, FNMA has recently (starting 06/01/2008) made changes to their loan-to-value policies. A mortgage originated through desktop underwriting can qualify for up to a 97% loan, even in areas that are designated as declining markets. This will allow borrowers who need these types of loans to have another option, besides FHA.

With these positive indications, the first we have seen in a long time and the possibility of more open, available financing, the prospects for the market are much brighter than they were just a few months ago.

Our market remains segmented. Some areas are showing signs of stability, while some areas remain in decline. Even varying price ranges within a specific area are performing differently.

The following charts and tables show how different two segments of the same market can be. While Z2Y1 and Z7Y2 are only separated by 3 or 4 miles, the difference in performance between the two areas over the past year is notable.