Market reaction has been mixed since it was confirmed that second-quarter GDP contracted at a much slower pace than the in the prior quarter. The data suggests the recession is coming to an end, but the view ahead is far from clear and rosy.

Although stock indexes look ready to end the week up more than 1%, following a huge 11% gain in the prior two weeks, the weekly gain is based on the advance seen yesterday, as stocks are roughly flat two hours into Friday’s session. …(read more)

Department of Housing and Urban Development (HUD) Secretary Shaun Donovan released new guidelines on Thursday for FHA's Affordable Modification Program to bring it into compliance with The Helping Families Save Their Homes Act of 2009 signed by President Obama in May.

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Mortgages rates rose across the board during the most recent week according to data released by both Fannie Mae and Freddie Mac. Freddie Mac's vice president says that bond Rates and more rosy economic news helped to fuel the increases.

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After a two-day pause on Tuesday and Wednesday, markets are continuing the rally that began three weeks ago. Midway through Thursday, markets are up close to 2%, with the Nasdaq crossing the 2,000 mark for the first time since October….(read more)

Are mortgage rates going up? Are mortgage rates going down? I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week’s survey may point you in the right direction.

It’s adding up to be a pretty bad day for markets as new orders for durable goods tumbled, demand for mortgage applications shrunk, the Chinese stock market dropped precipitously, crude oil continues to weaken, and earnings were soft all around….(read more)

For the 4th consecutive month, the Case-Shiller Index showed a softening in year-over-year home price declines. But, even more relevant than the annual Case-Shiller numbers, are the monthly ones. According to the data, 18 of the 20 tracked real estate markets improved between April to May. It’s the Case-Shiller Index’s strongest showing in nearly 3 years.

Mortgage rates climbed for the second straight week, pulling down demand for mortgage applications, particularly for refinancing, according to a weekly industry survey.

The Mortgage Bankers Association said average rates for a 30-year mortgage moved up 0.05 percentage points to 5.36% in the week ending July 24, which follows a rebound from 5.05% to 5.31% in the prior week. The jump in rates caused demand to shrink for the first time in four weeks….(read more)

In Arizona, the real estate market is heating up on the low end and showing signs of life on the higher end. As the higher end luxury home market shows signs of life, more people are starting to ask about what jumbo loan products are available and under what terms. You can still get jumbo financing, but the terms of today’s jumbo loan market are much different than they were just a couple of years ago.  Here are some general guidelines for lenders who will actually lend under the Arizona jumbo mortgage programs available.

Arizona Jumbo Mortgage Loan LTV Requirements:

A few years ago, you could easily borrow up to 100% on almost any jumbo loan, but today there are definately LTV restrictions and they usually get tougher as the loan amounts get higher.

• For loans up to $900,000 expect the loan to value ratio to be around 75%.
• For loans up to $1,200,000 expect the loan to value ratio to be around 60%.
• For loans up to $1,500,000 expect the loan to value ratio to be around 50%.

Arizona Jumbo Loans: Credit Score Requirements

Generally speaking, people who are considering a jumbo loan have pretty good credit. If your credit is above 750, you should be fine. If your credit score is above 680, but less than 750 be sure to double/triple check with your loan office about specific program guidelines. If your credit score is less than 680, it will be tough to find jumbo financing.

Arizona Jumbo Loans: Income Requirements

For a jumbo loan program, the general income debt-to-income guideline is 35% – meaning no more than 35% of your monthly income should go toward your monthly mortgage payment.

Arizona Jumbo Loans: Jumbo Mortgage Rates

So what kind of rates are there currently for Jumbo loans? Generally speaking, the mortgage rates for Jumbo loans in Arizona are in the 5%’s for any adjustable rate (3/1, 5/1 ,7/1) and in the 6%’s for any fixed rate Jumbo loan.

So generally speaking – yes, lenders are lending money in the jumbo loan market… it is just much different than it was 2 years ago.

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Housing data was positive this morning but markets are reeling from mixed earnings reports and weak consumer confidence. Ninety minutes into the session, all three major indexes are trading lower, following 11 days of rapid gains.

As of 11:00, the S&P 500 is the worst of the bunch, down 0.52% at 977, while the Dow is trading 0.28% lower at 9083, and the Nasdaq has fallen 0.29% to 1962….(read more)