Marinduque Mainland from Tres Reyes Islands

Marinduque Mainland from Tres Reyes Islands
View of Marinduque Mainland from Tres Reyes Islands-Click on photo to link to Chateau Du Mer


If this is your first time in this site, welcome. It has been my dream that my province, Marinduque, Philippines becomes a world tourist destination not only during Easter Week but also whole year round. You can help me achieve my dream by telling your friends about this site. The photo above is your own private beach at The Chateau Du Mer Beach Resort. The sand is not as white as Boracay, but it is only a few steps from your front yard and away from the mayhem and crowds of Boracay. Please do not forget to read the latest national, international, and technology news in this site . I have posted some of my favorite Filipino and American dishes and recipes on this site also. Some of the photos and videos on this site, I do not own. However, I have no intention on infringement of your copyrights. Cheers!

Thursday, June 16, 2011

Mortgage Rates tumble to 7-month Low

The following is an article published recently by written by Polyana da Costa dated June 9, 2011 • I found it very informative specially if you are currently house or condo hunting. My question however is
" Are the banks lending mortgage money?" If you are in the mortgage business, I will appreciate an answer.

"Mortgage rates fell again this week as investors grew more concerned about slow economic growth.
The benchmark 30-year fixed-rate mortgage fell 4 basis points this week, to 4.65 percent, according to the national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.39 discount and origination points. One year ago, the mortgage index was 4.88 percent; four weeks ago, it was 4.82 percent.

The benchmark 15-year fixed-rate mortgage fell 9 basis points, to 3.79 percent. The benchmark 5/1 adjustable-rate mortgage fell 4 basis points, to 3.35 percent.

The 30-year fixed rate has declined for nine weeks in a row and has not been this low since November, according to Bankrate's survey.

Weekly national mortgage survey
Results of's June 8, 2011, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:

30-year fixed 15-year fixed 5-year ARM
This week's rate: 4.65% 3.79% 3.35%
Change from last week: -0.04 -0.09 -0.04
Monthly payment: $850.80 $1,203.19 $727.18
Change from last week: -$3.96 -$7.40 -$3.65

Some mortgage experts had not expected another dip in rates this week, but their expectations quickly changed after Federal Reserve Chairman Ben Bernanke offered a gloomy assessment of the U.S. economy during a speech Tuesday.

Bernanke's speech
Bernanke acknowledged that U.S. economic growth is "frustratingly slow," adding the "jobs situation remains far from normal."

Most people already knew that based on recent economic reports. Still, Bernanke's speech immediately affected the mortgage market, causing stocks to fall as some investors pulled out of the stock market and sought safety by investing in U.S. bonds, says Michael Becker of Happy Mortgage in Lutherville, Md.

Early in the week, "it looked like rates were going to rise or stay the same," Becker says. "It's funny how much his words can move the market more than any type of report can."

"Low home prices and mortgage rates imply that housing is quite affordable by historical standards," he says. "Yet, with underwriting standards for home mortgages having tightened considerably, many potential homebuyers are unable to qualify for loans. Uncertainties about job prospects and the future course of house prices have also deterred potential buyers."

Volatile market

These gloomy economic outlooks, coupled with global economic uncertainty surrounding the debt issues in Europe, have caused mortgage rates to change more often than usual this week, says Dan Green of Waterstone Mortgage in Cincinnati.

"It's been a really bizarre week," he says. "On average, last month, rates changed every four hours and 19 minutes," Green says. "So far this month they are changing every three hours."

Unlike some mortgage experts who say rates will start rising again soon, Green expects rates will continue to decline "until there is explicit reason" to stop the fall. But he advises borrowers to take advantage of the low rates while they are available.

Holloway also says borrowers should lock.

"When they start shooting up they go up very quickly," Holloway says.

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