Archive for the 'Uncategorized' Category

Latest Housing Scorecard shows continued affordability in U.S. market

July 21st, 2010

Written by Frost Mortgage

The U.S. Department of Housing & Urban Development (HUD) and the U.S. Department of the Treasury have jointly released the second edition of the Administration’s Housing Scorecard showing that, thanks in part to interest rates continuing at all-time lows, home affordability in the U.S. remains near the most attractive levels in 10 years. In addition, for the first time, the report now tracks the impact of HUD’s Neighborhood Stabilization Program (NSP), which has spurred local investment and is beginning to make affordably-priced homes available to consumers. The Housing Scorecard is the Administration’s comprehensive report on the nation’s housing market.

http://nationalmortgageprofessional.com

Discussion: No Comments »

Money Market Recap and Forecast for week of July 19th

July 19th, 2010

Written by Greg Frost Jr.

Last week began on the downside for U.S. Treasuries.  Monday was almost a non-day, but then came Tuesday.  Stocks went wild on better-than-expected profits from Alcoa and the rally was on.  Investors regained confidence and safe-haven buying dried up.

The yield on the 10-year note zoomed to 3.11% from Monday’s 3.05%.  Yields and prices move in opposite directions.

Weak retail sales in June ignited strong buying in bonds on Wednesday.  Sales fell for the second straight month — down 0.5%.  That afternoon the minutes of the Fed’s June 22-23 meeting showed the Committee lowered its GDP forecast for 2010 to 3% -3.5% from 3.2% – 3.7%, raising further concerns about the economy.

Treasuries continued their rise on Thursday, with four of the five reports supporting the theory of a slow economic recovery.  The day began on an up note with first-time unemployment claims dropping by 29,000 to 429,000 — a two-year low.  The four-week average also fell to 455,250.  This had some economists thinking this may be the first in a series of declines.

The rest of the reports, however, were bond-friendly.  The producer price index, which looks for signs of wholesale inflation, fell 0.5% in June, while the core index, which eliminates volatile food and energy prices, rose by an expected 0.1%.  Traders had nothing to fear on the inflation front.

Manufacturing was also hard hit.  The Philly Fed index of July manufacturing conditions fell to 5.1 from 8 in June.  The May index hit 21.4.  The July NY Empire State manufacturing index plunged to 5.1 from 19.6 in June.

Separately, nationwide industrial production rose 0.1% — weaker than May’s 1.3% increase.  Capacity utilization was unchanged at 74.1%.

These reports renewed concerns about economic growth — pushing the specter of a rebound further into the future.  Money headed back to the safe haven of bonds, and the yield on the 10-year fell below 3.0% again, closing at 2.98%.

Friday began with the consumer price index showing no signs of inflation in retail prices.  The index itself rose 0.1%, while the more closely watched core rate rose 0.2% — slightly more than the predicted 0.1% increase.  Bond prices remained flat.

The week’s final report showed consumer sentiment hitting its lowest level since August.  The University of Michigan said that its preliminary July survey slid to 66.5, down from the June reading of 76.  Buying in bonds picked up, driving the 10-year note yield down to 2.95%.

Mortgage applications continue to decline, according to the Mortgage Bankers Association.  For the week ended July 9, the refinance index fell 2.9%, while the purchase index dropped 12.7%.

The recent trend of slow week/busy week continues, with only four economic reports on this week’s docket.

With earnings season heating up, Wall Street might influence trading in the bond markets as much or more than the reports would.  Better-than-expected quarterlies from influential corporations can ignite buying in equities, and bonds will sell.  But disappointing reports would likely have the opposite effect.

On Tuesday housing starts and building permits for June are due.  Both categories came in far below estimates in May.

Starts are expected to fall to an annual rate of 563,000 from 593,000.  Building permits, which shine a light on future starts, are predicted to fall to an annual rate of 555,000 from 574,000 in May.  These two reports, however, are subject to huge revisions.

More housing data come out Thursday with the release of existing home sales in June.  They are expected to drop to an annual rate of 5.10 million units versus a May rate of 5.66 million units.

First-time jobless claims for the week ended July 17 could be watched more closely than usual.  Were analysts correct in thinking last week’s big decline in claims was the beginning of the long-awaited turn around in employment?  Another big decline would no doubt bring about selling in bonds, but an increase would usher in a sigh of relief.

The final report, the index of leading economic indicators for June, is expected to fall 0.5%.  It had been heading upward for months indicating good economic times ahead.  This would be a setback.  Although bonds would like it, this report isn’t a big mover.

Discussion: No Comments »

Frost Mortgage continues to give back and kicks off great summer with a cook-off

June 23rd, 2010

Written by Frost Mortgage

Frost Competing in the 3^rd Annual Grillin N Chillin In New Mexico BBQ & Chili Cook-Off State Championship to Benefit Local Charitable Initiatives

Frost Mortgage Banking Group (Frost) is excited to kick-off a great summer by participating in the 3^rd Annual Grillin N Chillin in New Mexico BBQ & Chili Cook-Off State Championship this weekend. Proceeds from the event will go towards feeding the homeless and providing outreach ministries to those in need.

The event, sanctioned by the International Barbecue Cookers Association (IBCA) and sponsored by Faith Temple Church Of God In Christ (C.O.G.I.C.), will also feature salsa and chili contests, food vendors, entertainment, prizes and more.

“At Frost Mortgage, we believe there are a few fundamental things that bring true joy to life, such as our homes and food,” said Greg Frost, President of Frost Mortgage Banking Group.  “We’re excited to once again bring out the slow cooker, provide people with great food and support the people in our community who need it most.”

This event allows Frost to share both its passion for delivering quality expertise and mortgage lending services and its passion for food and community service with people in New Mexico.

The event takes place on Friday, June 25, from 12 p.m. to 8 p.m., and Saturday, June 26, from 9 a.m. to 5 p.m. at Isleta Lakes and Recreation Area. Admission is $4 per person, while children 12 and under are free.

For more information about this event, please call Sandra Perro at (505) 554-7841.

Just in the past few months, Frost has been a part of the annual New Mexico Pork ‘n Brew and was featured in a commercial on the new show New Mexico’s Hot Chefs.

Discussion: No Comments »

More light at the end of the tunnel

June 16th, 2010

Written by Frost Mortgage

It has been a long, hard slog, but we’re seeing increased confidence that the worst may be over. This week, for instance, Reuters reported, “A strong global economic recovery is under way, and is unlikely to be thrown off course by European debt woes or the improbable event of the bursting of an asset bubble in China, a top Federal Reserve official said on Monday.” That followed earlier remarks from Federal Reserve Chairman Ben Bernanke, who said European debt would probably only impact the U.S. economy in a “modest” way.

Another report this week found that “U.S. home prices were trending up in 155 out of 384 metro areas” thanks to “optimism that a sustainable economic recovery is underway.” And as our President, Greg Frost Sr., noted recently, “Over time, home prices across all states have risen at average annual appreciation rates ranging from the high 3’s to over 7.5%.”

We never recommend trying to “time the market.” It’s just too unpredictable for that. Instead, we have to look at sound financial practices with a long-term view in mind. We’re glad to see signs that the national mood is returning to normal.

Discussion: No Comments »

Getting our BBQ game face on at Frost

June 7th, 2010

Written by Frost Mortgage

The Frost Mortgage culture is almost as serious about food as it is about loans.

Just in the past few months, Frost has been a part of the annual New Mexico Pork ‘n Brew and was featured in a commercial on the new show New Mexico’s Hot Chefs.

We’re competing in the 3rd annual Grillin & Chillin in New Mexico BBQ & Chili Cookoff at Isleta Lakes at Isleta Lakes on June 25 and 26. At the top of this post, you can see some of the pictures from our first practice session.

What’s your favorite food for summer? How about your favorite food events? We hope to see you there!

Discussion: No Comments »

A Great Combination : Too Many Homes For Sale And Low Mortgage Rates

December 24th, 2008

Written by Christopher Frost

For the first time in over a year, the sales of “used homes” fell below the 5-million unit trendline, helping to push the total home inventory higher by 0.1 percent nationwide.

Based on the rate at which homes are selling nationwide, it would take 11.2 months for the existing housing supply to be exhausted.

For home buyers, this is an opportune time for negative news on housing.

First, sellers know that between now and the Super Bowl, housing activity will be light.  The general scarcity of buyers may force a seller to accept a bid he wouldn’t have accepted otherwise.

Second, the economy is showing weakness and that, too, can concern a home seller.  Buyers are less likely to extend themselves during times of economic uncertainty, further reducing the buyer pool and, again, putting pressure on the seller to “make a deal”.

And lastly, because the government has been trying to force mortgage rates down as a way to stimulate the economy, the weak housing data is actually making it cheaper to finance a home.  This means that a well-qualified home buyer can better stay within budget.

Each 0.500 percent rate reduction saves $33 per $100,000 borrowed.

It is important to remember, though,  that the U.S. housing market is not national — it’s highly localized.  This is one reason why national real estate reports can be misleading.  Just as figures from Phoenix have little to do with statistics from St. Paul, even data from neighboring ZIP codes can vary.

The universal truth, however, is that a home that is priced fairly will sell more quickly than a home that is not.  And, until the Super Bowl passes in 45 days, expect fewer buyers to be out there competing for them.

(Image courtesy: The Wall Street Journal Online)

Discussion: No Comments »

How 78 Consecutive Days Of Falling Gas Prices Helps Sell Real Estate

December 3rd, 2008

Written by Christopher Frost

For the 78th consecutive day, gas prices fell nationwide yesterday.  At $1.81 per gallon, the average price at the pump is less than half what it was at its peak in July.

And although gas prices vary by locale, the cost of a fill-up is worthy of national news.

The main reason why national gas prices matter is because of something called the Wealth Effect — people’s tendency to spend more money when they have a perceived feeling of being worth more.

Low gas prices can amplify the Wealth Effect, leading to higher levels of consumer spending nationwide — the primary driver of the U.S. economy.

But more important than the Wealth Effect is the reverse Wealth Effect.  That’s when consumers have a perceived feeling of being worth less and their spending reflects it.  This past summer is a terrific example of it.

Soaring gas prices, Wall Street troubles, and negative campaigning constantly reminded Americans of what was wrong with the economy.  It follows, therefore, that retail sales figures plunged in September and October.  Once the election passed, however, and gas prices fell, a gentle optimism returned.

Not surprisingly, consumer confidence rose in November.

All of this matters to real estate because as Americans regain their confidence and feel more “wealthy”, they will be more likely to make “move up” purchase, buy new home appliances, and take other actions that propel the economy forward.

Oh, and mortgage rates trolling at 3-year lows certainly helps, too.

(Image courtesy: GasBuddy.com)

Discussion: No Comments »