First time home buyers rejoice!!!!

Congress has officially extended the deadline for the $8,000 first time home buyer tax credit to April 30, 2010.   Under the extension, the deadline of April 30 refers to the contract date.  This means that the 1st time buyer must have a sales contract on a house by April 30 2010 to be eligible, but he/she has an additional 60 days to close the purchase.  This means that New Jersey first time home buyers have until June 30th, 2010 to close on their new homes to be eligible for the $8,000 first time buyer break – great news!!!

Who is eligible for the $8,000 credit?  First-time home buyers and those who have not owned a primary residence in the last three years prior to the purchase.

Do income limits apply?  Yes – and the income thresholds have increased from the last bill.  The full amount of the credit is available to married couples who make up $250,000 per year (adjusted annual gross income) and single filers who make up to $125,000.  See the official IRS website for more detail.

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Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!

I hope you have enjoyed this blog.

Until next time,

Tony
201-943-6800

P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online application or call our Edgewater, New Jersey (NJ) office in Bergen County (New Jersey Gold Coast) at 201-943-6800 with any questions you have.

P.P.S. CLICK HERE to check out our FREE Credit Repair Program.

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Posted To: MBS Commentary

What a turn around today for MBS! After being down as low as 100-30, MBS moved to close the day over half a point higher at 101-16! This is definite "striking distance" territory as far as all time high ranges are concerned which had their best weekly close at 102-07 and daily close at 102-18… The fact that the 10yr was closer to 2% than to 3% the last time that occurred should give you an idea of just how much the spreads between MBS and tsys have tightened. Performances weren't all that disconnected today if a few bps of tightening doesn't excite you. The 10yr had a decent day, dropping to 3.442 in yield. But MBS performed even better… The FN 4.0 ended the day +0-11 at 98-29 yielding 4.115% and the FN 4.5 went out the door +0-12 at 101-16 yielding 4.317%. The secondary…(read more)

Posted To: MND NewsWire

The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the four trading days between November 5 and November 11, the Federal Reserve purchased a total of $45.29 billion agency MBS. In those four days the Federal Reserve sold $31.79 billion agency MBS (dollar rolls). The Fed's weekly net purchases totaled $13.50 billion. The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers. This week's…(read more)

Posted To: MBS Commentary

A correction has indeed occurred: several lenders have repriced for the better. The FN 4.0 is trading +0-05 at 98-24 yielding 4.131% and the FN 4.5 is +0-07 at 101-12 yielding 4.333%. The secondary market current coupon is 4.232%. The CC is +78/10yr TSY and +66/10yr swap. The post auction recovery rally in benchmark rates was a function of short covering and some fast money buying. This "relief rally" (you'll note sarcasm later in the post) had led the 10yr TSY note all the way down to 3.43%. I've been hesitant to address this issue while I've watched it slowly unfold, but perhaps now is a good time to raise the red flag. Lackluster demand for the long bond can be viewed from a relatively clear cut point of view: with the economic outlook so uncertain, meaning there are…(read more)

Posted To: MND NewsWire

The Federal Housing Administration (FHA) has sustained significant losses and its capital reserve ratio has fallen below the threshold mandated by Congress, however, there is no reason to think that these reserves will fall below zero and, in fact, are already showing signs of recovery. These are the principal findings of the annual independent actuarial study of the agency released this morning at a press briefing conducted by Housing and Urban Development Secretary Shaun Donovan and FHA Commissioner David H. Stevens. The study shows that FHA's reserves have fallen to 0.53 percent of total insurance in force this year, significantly below the two percent level it is required by Congress to maintain. One year ago the ratio was 3 percent, the decrease is attributable to the difficult conditions…(read more)

Posted To: MND NewsWire

Mortgage rates continued to ease during the week ended November 12 according to information released this morning by Freddie Mac. The average rate for a 30-year fixed-rate mortgage was 4.91 percent with 0.7 point according to the results of the weekly Primary Mortgage Market Survey. Last week the average was 4.98 percent also with 0.7 point. The 30-year FRM has had an average rate below 5 percent for five out of the last seven weeks. The 15-year FRM averaged 4.36 percent with 0.6 point, down from 4.40 percent with 0.6 point during the previous week. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) dropped 6 basis points to 4.29 percent. Fees and points were unchanged at 0.6 point. One-year Treasury-indexed ARMs were down slightly to an average of 4.46 percent from last week's…(read more)

Posted To: MBS Commentary

As you're aware, immediately following the auction, MBS prices shot down to 100-30, bringing things in line with the worst levels of the week. Tsy's exhibited similar behavior with 10's moving to 3.525. The yield curve steepened further and looked to be inching toward the all time highs. As you're also aware, we were expecting a correction within the range. But as you might not be aware until just now, we got it: The volume coming into the market at this point looks to trump Tuesday's tally, especially with some afternoon data on the way (fed balance sheet, fed MBS buying etc…). Of high importance is the fact that the post-auctions sell off only explored recent limits of the trading range. This lets us know that today's auction was not the massive market event that…(read more)

Posted To: MBS Commentary

The Treasury just sold $16 billion 30 yr bonds… High yield: 4.469%. % Accepted at High Yield: 18.01% Bid to cover: 2.26 The initial reaction to the relatively weak results has not been MBS friendly. The 10yr yield has risen to 3.52% and the FN 4.5 has fallen below 101-00. While this reaction is "knee jerk" in nature, if prices dont rebound soon , lenders will reprice for the worse. I do however expect a correction…(read more)

Posted To: Mortgage Rate Watch

In honor of Veteran’s Day, the fixed income market was closed yesterday. A few lenders did issue rate sheets, most were priced conservatively, which is a common strategy on bank holidays. After a slow start to the week, we finally got some economic data to digest this morning. First out was the Mortgage Bankers’ Association’s Weekly Application Index. This data tracks the weekly change in mortgage applications at major lenders. An increasing trend is positive for stocks since the purchase of a new home leads to many other purchases. Additionally, an increasing trend in refinances should also lead to more consumer spending as home owners refinance to lower mortgage rates and lower mortgage payments giving them more cash flow. The report indicated that purchase applications…(read more)

Posted To: MBS Commentary

The "all quiet ahead of the auction" theme, which MG described in the open, continues to moderate "rate sheet influential" market flows this morning. Volume in the Treasury market is relatively muted (not too bad compared to rest of the week) as many rates trader's now sit flat, positions squared in anticipation of auction results and corresponding dealer distribution that follows. The 10yr note yield is currently yielding 3.459%…testing Monday's resistance and Tuesday's SUPPORT/pre-10yr auction level. BANG BANG on the PIVOT POINT… Here's how it looks in the futures market. I didn't want to add more noise to the chart, but I do feel it is important to discuss one aspect of our strategy. Where volume accumulates and distributes. In other words, where…(read more)