Jul
27

Mortgage Trends July 27, 2009

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Mortgage rates ticked slightly upward last week with the Fed Chair providing some comfort to nervous markets.  Ben Bernanke was busy last week with testimony in both houses of Congress and an op-ed piece published in the Mortgage_Rate_Watcher_7-26-09Wall Street Journal.  According to the Fed Chair’s assessment, the Fed needs to stay focused on stimulating the economy and exiting this recession.  As importantly, Bernanke sought to reassure both houses of Congress and the public that the Fed has the tools at its disposal to bring rates higher and reduce the flood of money the Fed has introduced to the market.  He believes all of this can he accomplished with limited long-term inflationary consequences.Freddie_Mac_07-2609

Mortgage rates start this week with some upward pressure that could stretch into coming weeks.  The Fed’s Beige Book which combines and synthesizes regional report is due this wee. along with the first reading of the 2nd quarter’s GDP. If these show a continued moderation in the severity of this recession, mortgage rates will likely move upward, albeit at a relatively slow pace.

Top_Economic_Reports_07-26-09

Mortgage Fraud on the Other Side
When you think of mortgage fraud, images of inflated incomes, false appraisals, and undocumented assets may come to mind.  Authorities are now investigating more and more cases of fraud on the other side of the coin.  A surprising number of people are trying to hide income and assets, while trying to get their homes appraised below market value. The goal of these cases is to falsely qualify for various mortgage relief programs. How times have changed!

Data provided by Larry Weinstein and Fred Ashe, Senior Loan Officers at Preferred Empire Mortgage Company, a sister company to Prudential Douglas Elliman.

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