Caroline's Weekly Market Review

Present Market Conditions
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac. "With the onset of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week. Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan. Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer."

Expectations
This week will be relatively quiet if the government shutdown is not resolved. Most of the economic reports scheduled for this week will be postponed, including the Retail Sales and Producer Price index originally schedule to come out on Friday. Investors will continue to follow the budget and debt ceiling discussions. The Minutes from the September 18 Fed Meeting will still be released on Wednesday and will provide additional insight into the debate between the Fed officials. On Tuesday, Wednesday, and Thursday there will be also be Treasury auctions

Guidance
Rates are still at low levels. Now is the best time to meet to discuss a mortgage solution to meet your financial goals.

Caroline's Weekly Market Review & Kwest Mortgage News

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.Mortgage rates drifted downwards this week amid signs of a weakening economic recovery. Retail sales rose 0.2 percent in August which was nearly half of July's 0.4 percent increase. In addition, industrial production in August grew 0.4 percent, less than the market consensus forecast. And lastly, consumer sentiment fell for the second consecutive month in September to the lowest reading since April. This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program at its September 12th and 13th monetary policy committee meeting. It also cited the tightening of financial conditions observed in recent months, which in the case of the housing market means the rise in mortgage rates since May."

 

This week will bring fewer and less impactful reports when compared to last week. The German elections being held on Sunday could have an effect on the global financial markets. The outcome will determine Germany’s position on critical EU issues like, bailouts, banking system reform, and austerity measures, which will influence the pace of economic growth for the EU. Here at home, Durable Orders and New Home Sales will be released on Wednesday. On Thursday, Pending Home Sales and the final revisions to the second quarter GDP will be released. Personal Income and Core PCE inflation (the Fed’s preferred inflation indicator) will come out on Friday. Consumer Sentiment and Consumer Confidence will round out the week. Also, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

 

Rates are still at low levels. Now is the best time to meet with your mortgage professional to discuss a mortgage solution to meet your financial goals.

 

On Another Note:

Kwest Mortgage is looking for an employee!!

Great things, Small businesses like ours creating jobs. We need help though. Please share the word. We are good, but have a need for an additional Kwest team member with the same drive and passion we have for helping consumers. We know they are out there. Just have to find the right one.

Click on the link below for a full job description and details for the position!

 

http://kwestmortgage.com/about_us/career-opportunities/

 

 

Caroline's Weekly Market Review

Ahead of this week's highly important Fed meeting, there was little significant news last week. The US plans for Syria will take some time to decide, so it had little influence on mortgage rates. The majority of the economic data released last week fell short of expectations, which helped mortgage rates end the week a little lower.

The last major economic growth data before Wednesday's Fed meeting, the Retail Sales report, showed a modest pace of growth. As was the case with last week's Employment data, it is fortunate to have steady growth, but expectations were for greater strength. Consumer Sentiment, which measures consumer expectations for future economic growth, dropped from recent multi-year highs. Investors have been closely watching the Jobless Claims reports in recent weeks for hints about the performance of the labor market, but this week's data was rendered inaccurate by a very unusual issue. Labor Department officials announced that two states were upgrading their computer systems and were unable to collect all the claims during the week.

The Retail Sales report was essentially the last data which could significantly influence the Fed's decision this week. Investors have now set their expectations. Despite the modest pace of economic growth, investors anticipate that the Fed will begin to taper its bond purchases, but now by a relatively small amount. The consensus is that the Fed will scale back from its current pace of $85 billion per month of combined Treasury and mortgage-backed securities (MBS) purchases to $70 or $75 billion per month. Some investors expect the Fed to reduce only Treasury purchases, while others think it will be split. Investors also will be interested in hearing how the Fed will determine future changes in the bond purchase program.

The long awaited, highly anticipated Fed statement will come out on Wednesday around 2:00 et. A press conference with Fed Chief Bernanke will follow at 2:30 et. There almost certainly will be a large reaction in the mortgage market to the statement. The other economic events next week will struggle to compete for attention. Industrial Production will be released on Monday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Tuesday. CPI looks at the price change for those finished goods which are sold to consumers. Housing Starts will be released on Wednesday, and the Existing Home Sales report is scheduled for Thursday. Philly Fed and Empire State will round out the Economic Calendar.

Kwest Home Spotlight 9/13/13

Caroline's Weekly Market Review

A lack of US military action in Syria caused investors to reverse last week's safety trade, while mixed economic data was roughly neutral. As a result, mortgage rates ended the week higher.

Since Fed officials have tied future policy changes to the performance of the economy, investors have reacted strongly to incoming economic data. Nearly all of the data released ahead of Friday's Employment report was strong. The ISM Manufacturing and ISM Services data rose to multi-year highs. Construction Spending posted solid gains. Jobless Claims remained close to five-year lows. The Fed's Beige Book reported that economic growth remained healthy. In short, all signs pointed to a clear path for the Fed to begin to slow the pace of its bond purchases.

The final, and biggest, piece of the puzzle broke the pattern, however. Friday's highly anticipated Employment report fell short of expectations in nearly every area. This was bad news for the economy, but it was favorable for mortgage rates. Against a consensus forecast of 175K, the economy added 169K jobs in August, but the figures from prior months were revised lower by 74K. The Unemployment Rate unexpectedly declined from 7.4% to 7.3%, the lowest level since December 2008. Digging deeper, though, the details revealed that the decline was entirely due to people dropping out of the labor force rather than job gains. The labor force participation rate (the percentage of people able to work who are working or are looking for work) dropped to the lowest level since 1978. The Employment report caused investors to question whether the Fed will begin to taper its bond purchase program at its next meeting.

This week, the big day will be Friday when Retail Sales, PPI, and Consumer Sentiment will be released. Retail Sales account for about 70% of economic activity. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products. Import Prices will be released on Thursday. There will be Treasury auctions on Tuesday, Wednesday, and Thursday. The highly anticipated Fed announcement will come out on September 18.

Caroline's Weekly Market Review

Increased concerns about the conflict in Syria caused investors to shift to safer assets this past week. Mixed economic data was roughly neutral. As a result, mortgage rates ended the week a little lower.

Concerns about the reported use of chemical weapons by the Syrian government and the possibility of increased US involvement has resulted in greater uncertainty in financial markets. Investors reacted by shifting from riskier assets such as stocks to safer assets such as bonds, which helped mortgage rates. It also resulted in higher oil prices. When energy costs rise, economic growth slows, and this also benefits mortgage rates.

The other major focus for investors remains the timing for the Fed to begin to taper its bond purchase program. The economic data released last week was split between positive and negative surprises, however, which provided little reason for investors to change their expectations for Fed policy. The big upside news this week was that second quarter GDP was revised higher from 1.7% to 2.5%. On the downside, the Durable Orders data showed a large decline. Consumer Confidence and Consumer Sentiment increased, while Pending Home Sales fell. All in all, this week's mixed bag of data created volatility for mortgage rates, but it had little net impact.

The big story next this will be Friday's Employment report. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, and it will carry even more weight than normal due to how it will influence Fed policy. Earlier in the week, ISM Manufacturing and Construction Spending will be released on Tuesday. The Fed's Beige Book and the Trade Balance are scheduled for Wednesday. ISM Services, ADP Employment, Productivity, and Factory Orders will come out on Thursday.

 

On A Side Note: I hoe you and your family had a very happy Labor Day!!

 

Caroline's Weekly Market Review

It was a volatile week for mortgage rates. The FOMC Minutes suggested that the Fed will begin to taper its bond purchases in the near future as expected, but a surprising decline in the New Home Sales data made that outcome less certain. After the offsetting influences, mortgage rates ended the week with little change.

The FOMC Minutes from the July 31 Fed meeting were released on Wednesday, but they did little to remove the uncertainty about when the Fed will begin to scale back its bond purchase program. The main takeaway from the Minutes is that Fed officials were split at the meeting about the timing for the taper to begin. Fed officials agree that the decision should be based on the performance of the economy, but they diverge on what constitutes sufficient strength. Bottom line, though, is that there was nothing in the Minutes to contradict investor expectations that the Fed will begin to taper in September or October, and mortgage rates rose after the release of the Minutes.

Friday's New Home Sales report caught investors by surprise. Data released earlier in the week showed that July Existing Home Sales increased 7% from June and were 17% higher than one year. This lead investors to believe that the solid improvement seen in the housing sector this year would continue. However, July New Home Sales showed a decline of 13% from June. Existing Home Sales, which cover roughly 90% of home sales, are based on closings, while New Home Sales measure signed contracts. As such, New Home Sales reflect more current economic conditions than Existing Home Sales. Several Fed officials have expressed concerns that rising rates would slow the pace of economic growth. The decline in New Home Sales provides clear support that these concerns are justified. The question is whether the data will be enough to cause the Fed to hold off longer before tapering its bond purchases. The reaction from investors reflected the belief that tapering may be farther away, as mortgage rates improved after the release of the report.

This week, Durable Orders will be released on Monday. Pending Home Sales will come out on Wednesday. Revisions to second quarter GDP will be released on Thursday. Friday will be the big day with Core PCE inflation, Personal Income, and Chicago PMI. Consumer Confidence and Consumer Sentiment will round out the schedule. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Kwest Mortgage Spotlight

I am so excited to be putting together the Kwest Home Spotlight each week! This was my first week, and although video recording myself is super awkward, I am loving being able to promote our favorite realtor's homes! Each week, we will have a new listing to present to our fans/followers/clients.

Be sure to check out this week's Kwest Home Spotlight:

http://www.youtube.com/watch?v=5avyTQIz9po&feature=youtu.be

I HOPE EVERYONE HAS A GREAT WEEKEND

Caroline's Weekly Market Review

Last week, a broader consensus formed that the Fed will begin to taper its bond purchase program in September or October, and investors reacted by selling US stocks and bonds. The US economic data released this week provided little reason for the Fed to wait, and the European data showed unexpected strength. As a result, mortgage rates ended the week higher.

The Fed's massive bond purchase program powered stocks to record highs and helped push mortgage rates to historic lows. The Fed has indicated that it is almost time to begin to scale back the program, and the only reason to wait would be unexpected weakness in economic growth. This week's labor market and Retail Sales data was stronger than expected, though, causing more investors to anticipate that the Fed will taper in the next month or two. Both stocks and bonds were negatively affected by the growing expectations.

Mortgage rates received additional upward pressure from the economic news out of Europe. After eighteen months in a recession, second quarter GDP in the euro zone increased modestly, exceeding the consensus. In particular, Germany and France performed well. The recovery in Europe caused global interest rates to rise this week, including US mortgage rates.

The most highly anticipated economic release this week will take place on Wednesday when the FOMC Minutes from the July 31 Fed meeting are revealed. These detailed Minutes provide additional insight into the debate between Fed officials. The biggest economic data will be Existing Home Sales on Wednesday and New Home Sales on Friday. The only other report will be Leading Indicators on Thursday. Investors also will be eager to hear comments from Fed officials.

Caroline's Weekly Market Review

Following the roller coaster ride the week before last, this past was one of the quietest weeks for mortgage rates in a very long time. While last week contained a Fed meeting, Employment report, and GDP data, there was very little significant economic news this week, and mortgage rates barely changed.

In addition to a lack of major economic data, another reason for the limited volatility last week was that the message conveyed from the Fed was very consistent. The largest influence on mortgage rates in recent months has been shifting expectations for future Fed policy. According to the Fed officials that spoke this week, the Fed expects to begin to taper its bond buying program later this year. The exact timing will depend on future economic data. Investors currently expect that the tapering will begin in September or October. This means that the reaction to major economic data likely will continue to be exaggerated, as we saw on several occasions last week.

Last week President Obama laid out his plan for restructuring Fannie Mae and Freddie Mac. It is very similar to what is being proposed in the Senate, so there were no big surprises. The primary component of the plan is to shift credit risk on mortgages from the government to the private sector. There was no timetable provided, but any changes are expected to take years. The announcement created a lot of headlines, but did not have an immediate impact on mortgage rates and is not likely to affect rates anytime soon.

 

The most significant economic data this week will be the Retail Sales data and the monthly inflation reports. Retail Sales account for about 70% of economic activity and will be released on Tuesday. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production will come out on Thursday, and Housing Starts will be released on Friday. Empire State, Philly Fed, Consumer Sentiment, Productivity and Import Prices will round out the schedule.

Caroline's Weekly Market Review

This past week was packed with major economic reports and a Fed meeting. With investors looking for hints about when the Fed will begin to taper its bond purchases, the data caused a great deal of volatility. Because the economic news was roughly neutral overall, though, mortgage rates ended the week just slightly higher.

The economic data released on Wednesday, Thursday, and Friday caused large swings in mortgage rates. Positive news on economic growth was bad for mortgage rates and vice versa. Second quarter GDP increased 1.7%, above the consensus of 1.1%, and mortgage rates jumped. Then, ISM Manufacturing unexpectedly increased to the highest level since June 2011, pushing mortgage rates even higher. When Friday's highly anticipated Employment data was a little weaker than expected, though, mortgage rates reversed nearly the entire increase seen earlier in the week.

The reaction to these reports was exaggerated. A big reason for the volatility is that the Fed has indicated that future policy changes will depend on the performance of the economy. Investors had hoped that the Fed would provide more concrete guidance this week on its plans to begin to taper, but Wednesday's Fed statement provided no additional clarity. The consensus view is still that the Fed will begin to scale back its bond purchases in September, unless economic growth weakens significantly. As long as a high level of uncertainty remains about when the Fed will taper, volatility is likely to stay elevated.

This coming week will be a light one for economic events. ISM Services will be released on Monday. The Trade Balance will come out on Tuesday. There will be Treasury auctions on Tuesday, Wednesday, and Thursday. Speeches from Fed officials also will receive attention from investors next week.

Caroline's Weekly Market Review

Ahead of major economic news this week, it was a relatively quiet week for mortgage rates. Mixed economic data and average Treasury auction results provided little direction. As a result, mortgage rates ended the week just slightly higher.

The big economic reports this week, New and Existing Home Sales, contained mixed news relative to the consensus forecasts. While investors were expecting even better results in some areas, the performance of the housing sector remained encouraging. June Existing Home Sales held steady, close to multi-year highs, and they were 15% above the levels seen one year ago. June New Home Sales jumped 8% from May to the highest level since May 2008. This is significant because New Home Sales reflect signed contracts (Existing Home Sales measure closings), meaning that the improvement seen in June took place despite the recent rise in mortgage rates.

The reaction to recent Fed announcements has been large, and investors are attempting to anticipate what the Fed will say at its next meeting on July 31. The big question is when the Fed will begin to taper its bond purchases. The Fed is currently using two primary tools to stimulate the economy. The Fed's traditional tool is to adjust the fed funds rate, but they reached the limit for this approach when they lowered the fed funds rate to near zero in 2008. To loosen monetary policy even further, the Fed initiated its bond buying program. Recently, Fed officials have indicated that it soon may be time to scale back the program, which has caused long-term interest rates to rise. The reaction to Wednesday's Fed statement will depend primarily on whether investors expect the Fed to taper sooner versus later. Fed officials may attempt to contain any rise in long-term rates by providing firmer guidance toward a low fed funds rate for a very long time.  

This week will be packed with major economic events! The next Fed meeting will take place on Wednesday. Investors are hoping to get a clearer idea about when the Fed will begin to taper its bond purchases. The biggest economic report next week will be Friday's Employment report. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, and it will carry even more weight than normal due to how it will influence Fed policy. A close second in importance will be Wednesday's release of second quarter Gross Domestic Product (GDP), the broadest measure of economic growth. Also on the Economic Calendar, Pending Home Sales will come out on Monday. ISM Manufacturing will be released on Thursday. Core PCE inflation and Personal Income will come out on Friday. Productivity, Chicago PMI, Construction Spending, and Consumer Confidence will round out a busy week.

Caroline's Weekly Market Review

Weaker than expected Retail Sales data helped mortgage rates last week. Soothing comments from Fed Chief Bernanke also were a positive influence, and mortgage rates ended the week lower.

The monthly Retail Sales report measures spending by consumers, which accounts for about 70% of economic activity. Monday's report revealed that Retail Sales were higher in June than in May, but the increase was much smaller than expected. The shortfall caused economists to lower their forecasts for second quarter GDP. When economic growth indicators are below the consensus forecast, future inflation expectations are reduced, and this is favorable for mortgage rates. As has often been the case in recent months, the reaction in mortgage rates was magnified somewhat by the importance of incoming data on future Fed policy.

On Wednesday and Thursday, Bernanke answered questions before Congress in the regularly scheduled semi-annual testimony. Overall, there were no significant surprises in Bernanke's comments, but his tone was a bit more dovish than in previous communications, which helped mortgage rates. He emphasized that the Fed's bond purchases are not on a "preset course", but rather will depend on future economic data. While his comments caused investors to push back their expectations for when the Fed will begin to taper its bond purchases, the comments also added to the uncertainty about the timing, which means that mortgage rates likely will remain very volatile in coming months.

This week, Existing Home Sales will be released on Monday. New Home Sales will come out on Wednesday. Durable Orders will be released on Thursday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. Investors also will be looking ahead to a big day on July 31 when the next Fed meeting will take place and the second quarter GDP report will be released.

Why using a Licensed Mortgage Professional is better than using a bank.

I feel like I am singing to the choir on this, but there are many potential buyers that don't know the reasons going to a mortgage broker is better than going to a bank.

These buyers don't know that:

1. Going to a mortgage broker will prevent a buyer from hours and hours of online searching for products and rates. Also, the buyer will not be subjected to multiple credit checks for multiple banks which could result in lowering their credit score.

2. Experienced licensed Loan Officers and Brokers already have the relationships established with mortgage lenders and will help their clients avoid any income or credit pitfalls.

3. Mortgage professionals offer mortgage programs from lenders with lower wholesale rates compared to the limited higher priced products that the banks offer.

4. Loan rules and lending guidelines change frequently so borrowers need plenty of guidance. No need to fumble and stumble in the dark!

5. Mortgage brokers have a true incentive to provide their clients with the loan option best suited for their particular needs, not the bank's cookie cutter product. An overworked bank employee has little or no incentive to offer advice on specific programs and often leaves the customer guessing which way to proceed.

6. Loan officers are licensed professionals who are required to complete continuing education every year to maintain their license to originate loans, unlike a bank employee. Loan officers understand the importance of offering their borrowers the best loan to meet their needs, not what the banks want.

 At Kwest Mortgage, we are here to help buyers every step along the way. We understand that buyers differ from one another. We persistently focus to first understand the buyer's needs and then proceed to exceed your expectations through the highest level of professional conduct and "high touch" customer service.

Caroline's Weekly Market Review

Last week began as a decent week for mortgage rates. Ahead of Wednesday's highly anticipated Fed meeting, mortgage rates were a little lower on a week-over-week basis, as reflected in the weekly survey from Freddie Mac. Investors, however, pushed rates significantly higher after the Fed statement and press conference.

The Fed's massive bond buying program has greatly increased the demand for mortgage-backed securities (MBS). Since mortgage rates are mostly determined by MBS prices, the added demand for MBS has been a major factor in the decline in mortgage rates to historically low levels. Wednesday's Fed statement and follow-up comments from Bernanke provided the clearest signal yet that the extra demand from the Fed will soon begin to shrink. The Fed's forecast for economic growth and the level of unemployment have improved. The statement noted that the downside risks to the economy have diminished. Bernanke even went so far as to say that if interest rates increase "for the right reasons" it is a "good thing." Any investors who had been hoping for signs that the Fed would not soon scale back its bond buying program were very disappointed. Instead, the Fed signaled that if their economic forecasts are accurate, then the tapering of bond purchases will begin later this year and conclude in the middle of next year.

One of the main sources of strength in the economy which has helped convince the Fed that it's nearly time to taper is the housing market, and the data released this week continued to show improvement. May Existing Home Sales increased 4% to the highest level since November 2009 (when the home buyer tax credit was about to expire). Total housing inventory of existing homes available for sale rose 3%. May Housing Starts increased 7% from April. Single family Building Permits rose to the highest level since May 2008. The June NAHB Homebuilder confidence index posted a large increase to the highest level since April 2006.

This week, investors will be eager to hear speeches from Fed officials throughout the week. It will also be a busy week for economic data. Durable Orders, New Home Sales, and Consumer Confidence will be released on Tuesday. The final revisions to first quarter GDP will come out on Wednesday. Core PCE inflation, Personal Income, and Pending Home Sales are scheduled for Thursday. Chicago PMI and Consumer Sentiment will be released on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Caroline's Weekly Market Review

Shifting investor expectations about the timing of Fed tightening worked in favor of mortgage rates last week. The economic data released last week had little impact. As a result, mortgage rates ended the week a little lower.

The Fed has used two primary approaches to stimulate the economy and to help push mortgage rates to historically low levels. Everyone has focused a lot of attention lately on the Fed's bond purchase program, which the Fed is expected to begin to scale back before too long. This program was initiated to provide additional stimulus after the Fed had cut the fed funds rate to near zero and could go no lower. Until recently, investors expected that the Fed's first hike in the fed funds rate would not take place until mid-2015. A shift forward in expectations for the first Fed rate hike has been one of the forces moving mortgage rates higher.

An article written on Thursday from a noted Fed watcher addressed the question of when the Fed will raise the fed funds rate. The article suggested that Fed officials do not agree with investors that economic conditions have pulled forward the likely timing of Fed rate hikes. Rather, Fed officials still expect that the first rate hike will take place long after the end of the QE program. This article caused mortgage rates to move lower at the end of the week.

Without a doubt, the big story this week will be Wednesday's Fed meeting. While expectations are low that it will take place Wednesday, we are at the point where the announcement that the Fed will taper its bond purchases could come at any meeting. Even hints about the timing likely would cause a large reaction. The most significant economic data will be Tuesday's CPI inflation report. The Consumer Price Index (CPI), the most closely watched monthly inflation report, looks at the price change for those finished goods which are sold to consumers. Housing Starts will also be released on Tuesday. Existing Home Sales will come out on Thursday. Philly Fed, Empire State, and Leading Indicators will round out the schedule.

Painful.

It is painful for me to lose loans to competitors. It hurts me when I don't even get a chance to give someone a quote because they have already been pre-approved by somewhere else. That is silly on the consumer's part because I have a feeling that our fees would have been much less. Luckily, the way that my manager set up the business, we really are able to offer consumers the best deal around and that is a great thing. I don't feel like a scheming sales person when I go to market myself because I can be honest in that regard.

When I find out that one of my local competitors is originating a loan, I think to myself "dang, if they would have just called over here, I could have saved them some money." When I find out that someone in my market is going through a National mortgage lender for financing - I literally feel sick to my stomach. When I hear that they are working with a Mortgage Originator through a 1-800 phone number, ouch. Don't do that to yourself or the other people involved in your transaction!!

Sure, they have more money than my company does to send you a million emails and snail mail marketing. In fact, they have people that are paid to do nothing but fill up your mailboxes with marketing pieces. Are they marketing to you because you are a valued customer? No, they are marketing to everyone that they have an email address/home address for. We don't have a marketing team, any pre-made fliers, any pre-written emails that I can push the forward button on. Nope, we have to come up with that all by ourselves in-between our regular work.

Why you should work with Kwest Mortgage Group:

1. There is value in the fact that I live and work in your community/state!! I have a lot to lose if I don't exceed your expectations throughout your loan process and a lot to gain when you leave your loan closing completely satisfied. It is so important to me to do a great job for you because your word of mouth is the most valuable business that I can receive. My reputation is everything in this business, so I will go the extra mile to make you happy with my services! If you have any questions a long the way, you can always reach me at the office and most of my borrowers have my personal cell phone.

2. Because I live in your state of South Carolina, I have a great understanding of your real estate market. I also know a lot about financing programs that will help you!!

3. Working with someone that you can get to know personally really cuts down on miscommunication and hassle. Working with us, you won't be just another number pushed through the steps. You will be a valued customer that will be guided through each milestone of your transaction.

4. Flexibility - We are not a one-stop shop with a small set menu of financing options. Lucky for me, we work with numerous lending partners which gives me the flexibility on getting you the best program, the best rate, and the best costs and overall the best experience.

5. I can't stress this enough - Personal Contact!!! What is more valuable than working with someone that you can contact anytime of the day? Even on the weekends!! It is great to work with a lender that you can go see face-to-face. I have been lucky enough to work with people in other South Carolina areas outside of Orangeburg and Calhoun county- and it is important to me that I provide them with the same service that a borrower right here in my own community receives. That is why I always return phone calls and emails promptly!!

Help me reach my goals!!

The tragedy of life doesn't lie in not reaching your goal. The tragedy lies in having no goal to reach. - Benjamin Mays

I was excited to start my career in mortgage at the beginning of this year. This has always been what I have wanted to do and I have enjoyed learning the ends and outs or the mortgage world. Things have been rocking and rolling the last couple of months! Things have taken off fast, and I am so appreciative of that. This evening, I took a look at the business plan that I made for myself back when I was finishing my Xinnix Officer School. I need your help to reach these goals that I have set for myself! Do you know anyone looking to purchase a home? If so, please let me know! I promise to provide unbeatable service. My number one priority is making sure that my borrowers get the absolute best deal. I am able to work with anyone purchasing or refinancing a loan anywhere in South Carolina!

At Kwest, I am committed to offering you safe, sound, and affordable home financing solutions. I hope to hear from you soon!!!

Survey Responses from 2 great Real Estate Agents this week: 

*Caroline Farmer was all over this sale from day one- actually she was ahead of everyone- which in the end was really great!

*As the representative of the seller in this transaction I was thrilled to have been kept in the loop and able to offer my client the assurances needed throughout the transaction.

Caroline's Weekly Market Review

Shifting expectations for the timing of the Fed's move to taper its bond purchases were the main influence on mortgage rates last week and caused extremely high levels of daily volatility. Stronger than expected economic data and comments from Fed officials caused investors to think that the Fed will begin to scale back its bond purchases sooner than previously expected. As a result, mortgage rates ended the week higher.

With a decline in the Fed's bond purchases in sight, and an improved outlook for global economic growth, investors have grown less willing to own bonds. Central bank bond buying helped bond yields decline to historically low levels. Following the financial crisis, investors accepted these low yields in order to receive the safety of government guaranteed fixed income securities. Over the course of this month, however, sentiment has shifted and investors are demanding higher yields to own mortgage-backed securities (MBS) and other bonds. Since mortgage rates are largely determined by MBS prices, mortgage rates have moved higher.

Historically, shifting inflation expectations have been the primary cause of changes in mortgage rates, but not this month. Normally, as inflation expectations rise, so do mortgage rates, and vice versa. In May, though, this relationship did not hold true. Inflation measures have been falling, yet rates have been rising. The April Core PCE price index released last week was just 1.1% higher than one year ago. Core PCE is the Fed's preferred inflation indicator, and it's far below the Fed's long-run inflation goal of 2.0%. The Core CPI inflation report released last week also showed declining levels on an annual basis. This shift from the fundamental relationship between mortgage rates and inflation shows the enormous influence the Fed has had on mortgage rates.

This week, investors will be focused on the labor market data. The ADP forecast for private sector job gains in May will come out on Wednesday. This will be followed by the weekly Jobless Claims report on Thursday. The biggest economic report this week will be the important Employment data on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, and it will carry even more weight than normal due to how it will influence Fed policy. In addition to the employment data, ISM Manufacturing will be released on Monday, and ISM Services will come out on Wednesday. The Fed's Beige Book will also be released on Wednesday. Construction Spending, the Trade Balance, Productivity, and Factory Orders will round out the busy schedule.

A personal piece

I know I have written before that I have been told numerous times that my blog needs to be more "personal." Fortunately, I have been so busy lately that I haven't had a chance to blog about all the awesome things that have been happen in my day to day life. The last few weeks have been a whirl wind and it feels awesome.

Last week, I had an awesome 'Quality of Life' day with my leadership class. Our day started out at the Elloree Museum, then we headed to the Fish-Eagle tour on Santee, ate a delicious lunch at Lone Star BBQ, enjoyed a tour around the Orangeburg Gardens, and ended the day at the golf coarse at the Orangeburg Country Club. Whew - a lot of fun things to do around Orangeburg!!

Here are some snap shots:

 

I have been licensed for mortgage loans for a little over 2 months. For the first few weeks, I worked hard on leads and securing some promising loans. Over the last few weeks, these first loans have come to a close. IT IS AWESOME!! The closings are coming fast and I couldn't be more excited for all of this hard work to pay off. A couple of weeks ago, I had my first closing. It went really well. Rodney was a total sweetheart and had this on my desk when I got back to the office:

 



He is great about making everything exciting in my career into a CELEBRATION!! I loved it. He also sent out a mass email to let everyone know that I closed my first loan. The responses were AMAZING!! I had some awesome facebook posts on my personal account. They made my day. I also received many emails congratulating me on my hard work. I wanted to share a few:

CONGRATULATION!  CAROLINE  -  KEEP UP THE STELLAR WORK- 

 

This is great!  CONGRATULATIONS Caroline!  I have shared this with my team and we couldn’t be more excited.

 

 

 

tell her way to go.  she is a worker.

Congratulations to Caroline!  Now, go get a nice photograph made while you still have hair and sanity.  Welcome to the business, it will serve you well.

 

She did a wonderful job and I will recommend her highly.

Thanks for the continued daily follow up and the perseverance.

 

 

Awesome job! Congratulations….first of many!

Those were just some of the "fun" ones.

This move into the mortgage career has been such a blessing. I was nervous about getting to know people in the industry and winning over their confidence and trust. It is like I have been adopted into some sort of industry family, full of Realtors, Appraisers, Insurance Agents, Attorneys, and even other mortgage lenders. Everyone has been so supportive and I couldn't be more grateful for that. I really look forward to getting to know everyone better.

I hope everyone reading this Blog had a wonderful Memorial Day. God Bless our military.

Caroline's Weekly Market Review

For months, investors have been focused on the question of when the Fed will begin to scale back its massive bond buying program. On Wednesday, comments from Fed Chief Bernanke and the Fed Minutes caused investors to think that the tapering may begin sooner than expected. The acknowledgment that Fed officials believe that economic growth actually could pick up quickly enough to justify a reduction in monetary stimulus was encouraging, but it was bad news for mortgage rates.

One of the primary goals of the Fed's bond buying program is to to keep mortgage rates low to stimulate the housing market and boost the economy. To this end, the Fed currently purchases the vast majority of newly issued mortgage-backed securities (MBS) each month. Since mortgage rates are mostly determined by MBS prices, this enormous demand from the Fed has helped mortgage rates decline to historically low levels. The Fed's MBS purchases will eventually end, however, and this week's Fed comments raised investor concerns that this will take place sooner than previously expected. On Wednesday, Bernanke acknowledged that there is a chance that the Fed could begin to taper its MBS purchases at one of its "next few meetings", based on economic conditions. The detailed Fed Minutes from the May 1 Fed meeting revealed that a number of Fed officials were open to scaling back the Fed's MBS purchases as early as next month, if economic growth picks up enough.

In addition, the Minutes from the last Fed meeting revealed that there is wide disagreement among Fed officials about what would constitute sufficient economic strength to cause the Fed to cut back its MBS purchases. Neither Bernanke's testimony nor the Minutes indicated that economic growth is currently strong enough to satisfy most Fed officials, making it unlikely that tapering will begin in the next couple of months. Bernanke warned that a "premature" tightening of monetary policy would risk slowing the economic recovery. The result of this uncertainty has been a high level of volatility around data releases and Fed speeches, and the volatility is likely to continue until the Fed actually announces a change in policy.

This week, revisions to first quarter GDP and Pending Home Sales will be released on Thursday. Core PCE inflation, Personal Income, and Chicago PMI Manufacturing will come out on Friday. Consumer Confidence and Consumer Sentiment will round out the Economic Calendar. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. Mortgage markets were closed on Monday in observance of Memorial Day.

Rose Festival Fun

A quick post about this past weekend's Rose Festival. I have been going to the Rose Festival for years. I am glad that I decided on a Saturday trip this year, because they had to shut it down on Sunday because of the weather. It was so rainy, the TandD headlined the article Water World. I did enjoy stuffing my face with Fiske Fries AND chocolate dipped cheesecake (not paleo so much).

I had a great time hanging out at the Century 21 tent. They had an awesome drawing for some plants and garden tools! I also love our new Ad this year (Thank you Chelsea Knott).

Lowest Interest Rate? Lowest Payment? Ultimate Advantage.

Not Personal Enough?

Present Market Conditions

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac. “The housing market is getting a boost with mortgage rates hovering at or near record lows. For instance, existing home sales averaged an annualized pace of 4.94 million over the first three months of this year, the most since the fourth quarter of 2009. More impressively, new home sales topped 424,000 during the first quarter, which was the strongest since the third quarter of 2008. The sales pickup is helping to support house-price gains. For instance, the Federal Housing Finance Agency reported that February marked the thirteenth consecutive month that it has recorded an annual rise in its U.S. house price index, which rose by 7.1 percent in the twelve months through February, the most since May 2006. Even with these gains, this U.S. index is still 13.6 percent below its peak set in April 2007."

Expectations

This week will be very busy with regards to major economic news. The Fed will be meeting Wednesday. From this meeting Investors will be looking for updates on the state of the economy and hints about the future bond buying program. Next on the agenda is the ECB meeting scheduled for Thursday. Many investors anticipate the ECB to announce a rate cut or a new stimulus program. The most important economic report this week will be the Employment data released on Friday. As always, this data shows the number of jobs, the Unemployment Rate, and wage inflation. This is the most highly anticipated economic data of the month. Prior to the employment data, the schedule will be packed with ISM Manufacturing, Core PCE inflation, Pending Home Sales, and many other reports throughout the week.

Guidance

With rates still at very low levels, the housing market is beginning to heat up. Now is the best time to meet with me, your mortgage professional, to discuss a mortgage solution to meet your financial goals.

 

 

My blogtastic friends tell me that no one wants to read my posts because they aren't "personal" enough. I am too "business." Well here is my personal note for this post: My Web Master friend Chelsea Knott talked me into starting a running program this week & then she tried to back out last night. BUT I made her go. It wasn't as bad as we anticipated. We are going to complete the program because we have each other for accountability. Posting online for everyone to see - how is that for accountability? This is kind of how we feel about it....

 

Maybe soon we will be running crazies like Charlotte Law (a blogtastic friend - check it out HERE)

 

 

H.A.R.P. - Don't Miss Out!!

Really, there is no better time to refinance. Please give me a call about this awesome program TODAY!

The Kwest Advantage!

Mortgage Market Direction - Act now before rates go up!!

Last week Frank Nothaft, vice president and chief economist at Freddie Mac was quoted with "Mortgage rates fell further this week following a lackluster employment report for March. The economy added just 88,000 net new jobs last month, about one-third as many as February and the fewest since June 2012. In addition, approximately 496,000 people left the workforce causing the unemployment rate to fall to 7.6 percent. Further, average hourly earnings were unchanged in March, indicating income growth remains tepid."

Tuesday is the big day this week with CPI, Housing Starts, and Industrial Production reports all being released. The Fed's Beige Book will come out on Wednesday. Philly Fed will come out on Thursday. Empire State and Leading Indicators will round out the schedule on Friday.

With rates still at very low levels, the housing market is beginning to heat up. Now is the best time to meet with your mortgage professional to discuss a mortgage solution to meet your financial goals.

Why you should buy a home in South Carolina!!

Why should you buy a home in South Carolina? Because it is the only state that I am licensed to originate your home loan.....just kidding (sort of).

One of my blogtastic (I just made that word up) friends recently told me that I needed to post more "fun" posts on my blog. Gasp, stunned look, you mean, everyone doesn't care about what goes into a mortgage payment and that I can offer you a loan program with up to 97% LTV with no MI? Well dern, those things seem pretty important. That's disappointing that no one likes to read about the stuff that can save you money and time. On that note, I am going to post something completely non-mortgage related (although it does encourage you to build your life and buy your home in SC).

Really, why should you buy a home in South Carolina? Well, because it is an awesome state to raise your family and we have a ton of cool stuff going on around the state all the time! Just in a month's time, check out all of the awesome activities that you and your family can enjoy:

April 18 - 21 Clemson Blues Festival

ClemsonBluesFest.com

The "Year of the Harp" celebrates the beloved Southern blues instrument, the harmonica. The talent line-up for this second annual festival features Jimi Lee, Mac Arnold, and Plate Full O'Blues, and the Blues Doctors with Adam Gussow, just for starters. Gospel Sunday is an afternoon of "old-time religion" tunes to benefit the Clemson Area African American Museum. Blue Ridge Electric Cooperative is a sponsor. And really, who wouldn't want to take a trip to Clemson?

 

 

May 2-4 South Carolina Strawberry Festival (TOP PICK FOR KIDS)

 

scstrawberryfestival.com

 

Come berry hungry to this Fort Mill festival that ushers in strawberry season. Saturday starts with an all-you-can-eat strawberry pancake breakfast, then come strawberry shortcake and ice cream eating contests. Thursday night's Pick-n-Flick lets families gather their own berries, then relax with live music and an outdoor screening of the animated film "Surf's Up" at Springs Farm. Don't miss the action-packed Kid's Zone and the popular piglet races. York Electric Cooperative is a sponsor.

 

May 2 - 5 Heart of the Carolina's

 

so8ths.com

 



Southern 8ths horse park in Chesterfield welcomes beginner novice, novice and training level riders to hone their long-format skills at its third annual So8ths/Nikon Three-Day Event - an equestrian triathlon (dressage, cross-country and show jumping). The park features regulation-size arenas, a steeplechase track, manicured roads and tracks, dressing rings, cross-country courses, a derby field and more for training young riders. Volunteers and spectators are invited to watch, help, and learn - no horse experience necessary!

 

Orangeburg Festival of Roses (PERSONAL FAVORITE)

 

festivalofroses.com

 

Right in my hometown, coinciding with the blooming of thousands of roses at Edisto Memorial Gardens, this fragrant festival offers fun from land, river, and air. Gardens feature more than 100 varieties of roses, plus azaleas and other blooming plants, and visitors can stroll the boardwalk along the Edisto River. A Friday night street dance, canoe and kayak races on the water and airplane rides over Orangeburg are among the festival events. You can't miss it!!

 

May 10 - Blue Ridge Rest

blueridgefest.com

 

From the hometown of my wonderful husband, it's party by the numbers at Blue Ridge Fest: one night, four legendary bands, 600 classic cards and thousands of dollars raised for 13 charities. The "Largest Cruise-in in the Upstate" will showcase the Drifters, with Charlie Thomas. The Clovers ("Love Potion Number 9"), Maurice Williams and the Zodiacs ("Stay") and the Party Prophets, who will pay tribute to the late Billy Scott. Cars are on display starting at 2 p.m., and music and food are on tap from 6 to 10:30 p.m. at 734 West Main St. in downtown Pickens. The 16th annual event is hosted by employees of Blue Ridge Electric Cooperative and Blue Ridge Security.

 

I can't begin to elaborate on all the spring activities going on, here are a few more in May:

 

Abbeville's Spring Festival

Aiken Bluegrass Festival

Newberry's Pork in the Park

Myrtle Beach's Cinco de Mayo Festival

Riverbank's Rhythm and Blooms

 

and so many more.....

 

 

What family wouldn't enjoy all of these wonderful South Carolina activities???

 

Source of information: South Carolina Living Tri-County Electric Cooperative



Weekly Market Review

A wide range of economic news was favorable for mortgage rates this past week. The Employment data was weaker than expected, Japan expanded its bond-buying program, and tensions with North Korea increased. As a result, mortgage rates ended the week significantly lower.

Friday's Employment report was disappointing in nearly every area. Against a consensus forecast of 190K, the economy added just 88K jobs in March. Average Hourly Earnings, a proxy for wage growth, was flat from last month. Digging deeper, the small bit of good news was that the data from the prior two months was revised higher by 61K jobs. This was far outweighed, however, by the bad news in the details of the Unemployment Rate. The Unemployment Rate unexpectedly dropped from 7.7% to 7.6%, but the decline was entirely due to people exiting the labor force. It is good for the economy if the Unemployment Rate declines because more people get jobs, but not if the cause is a shrinking labor force. Weak labor market data reduces future inflation expectations, which is good for mortgage rates. In addition, it likely extends the duration of the Fed's bond-buying program, which is also good for mortgage rates.

Thursday, the Bank of Japan announced that it will sharply ramp up its bond purchases to levels which will add $1.4 trillion to its balance sheet over the next two years. Like the Fed, the BOJ is buying bonds to help boost the economy. This added demand for Japanese bonds caused their yields to decline, making US bonds relatively more attractive to global investors. This benefited US mortgage-backed securities (MBS), which helped push mortgage rates lower.

This week, the detailed Minutes from the March 20 Fed meeting will be released on Wednesday. Import Prices will come out on Thursday. Friday will be the big day with PPI, Retail Sales, and Consumer Sentiment. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products. Retail Sales account for about 70% of economic activity. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. 

 
Copyright @ 2013 MBSQuoteline

Today's Job Report is great news for Mortgage Rates!

Mortgage Bonds are sharply higher, while stocks plunge this morning in reaction to the much weaker than expected jobs report.

Before the employment report was released, Stock markets were nervous in reaction to the escalating rhetoric coming out of North Korea.

I am recommending taking advantage of the sharp rise in Bond prices and lock for the short term, while floating in the longer term seems prudent.

 

 

Have a great weekend!!