Premier Mortgage Group

Mortgage interest rates were mostly flat on the week on mixed economic data.  Economic data stronger than expected included January Pending Home Sales, the February Consumer Confidence Index, the second look at Q4 GDP, the February Chicago Purchasing Managers Index, and weekly jobless claims.  Pending Home Sales reached its highest level since April of 2010.  Consumer Confidence jumped to its highest level since last February but the index was measured prior to the increase in oil prices.  Economic data weaker than expected included January Durable Goods Orders, January Personal Income, January Personal Spending, January Construction Spending, and the February ISM Manufacturing Index.  Durable Goods Orders had its largest decline in over three years.  Also of note, Fed Chairman Ben Bernanke did not indicate that there would be another round of quantitative easing in testimony before the House Financial Services Committee.  The European Central Bank provided more cash to lenders than anticipated.

The Dow Jones Industrial Average is currently at 12,967, down slightly on the week.  Crude oil spot prices are currently just over $108 per barrel, down over $1 per barrel on the week.  The Dollar strengthened versus the Yen and Euro on the week.

Next week look toward Thursday’s jobless claims and Friday’s February employment report and international trade repot as potential market moving events.

Mortgage interest rates improved slightly despite limited new economic data.  Economic data of note included January Existing Home Sales, which were slightly weaker than expected.  January New Home Sales, though, were slightly stronger than expected.  The University of Michigan Consumer Sentiment Index increased to 75.3, its highest level since February of 2011.  The Treasury auctioned $99 billion in 2 Year Notes, 5 Year Notes, and 7 Year Notes, which were met with reasonably strong demand.  In Europe, the EU forecast that EU GDP would fall by 0.3% versus the previous forecast of 0.5% growth.  The United Kingdom reported that Q4 GDP fell 0.2% from the third quarter and German GDP fell 0.2% in the fourth quarter as well.  It appears that Greece will receive its bailout funds to avoid default next month but markets are concerned that Greece will be able to fulfill its austerity measures.

The Dow Jones Industrial Average is currently at 12,977, up almost 30 points on the week.  Crude oil spot prices are currently over $108 per barrel, up almost $5 per barrel on the week.  The Dollar weakened versus the Euro and strengthened versus the Yen on the week.

Next week look toward Tuesday’s Durable Goods Orders, Wednesday’s second look at Q4 GDP, and Thursday’s Jobless Claims, Personal Income and Outlays, and ISM Manufacturing Index as potential market moving events.

Mortgage interest rates increased slightly as economic data was generally positive.  December Business Inventories, January Capacity Utilization, January Housing Starts, the February Philadelphia Fed Business Index, and January Leading Economic Indicators were all in line with expectations.  Economic data better than expected included January Retail Sales excluding automobiles, the New York Empire State Manufacturing Index, the NAHB Housing Index for February, January Building Permits, and weekly jobless claims.  Weekly jobless claims fell 13k to 348k claims, its lowest level in four years.  Reports weaker than expected included January Retail Sales and January Industrial Production.  Also of note, the Consumer Price Index for January increased 0.2% on expectations that it would increase by 0.3%.  Excluding the food and energy components, core CPI increased by 0.2%, in line with expectations.  Also, markets increasingly believe that Greece and European officials will agree to a bailout deal on Monday.

The Dow Jones Industrial Average is currently at 12,928, up almost 130 points on the week.  Crude oil spot prices are currently at just over $103 per barrel, up over $4 per barrel on the week.  The Dollar strengthened versus both the Yen and Euro on the week.

Next week look toward Wednesday’s Existing Home Sales, Thursday’s weekly jobless claims, and Friday’s New Home Sales as potential market moving events.  U.S. markets are closed Monday in observance of Presidents’ Day.

Mortgage interest rates were mostly flat on the week as there was limited new economic data for markets to digest.  Of note, December Consumer Credit increased more than expected.  Weekly jobless claims fell by 15k to 358k claims on expectations that claims would increase by 3k.  December Wholesale Inventories increased more than expected and the University of Michigan Consumer Sentiment Index fell more than expected.  The December Trade Balance was in line with expectations but the trade deficit increased to a six month high.  The Treasury auctioned $72 billion in 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with mixed demand from markets.  Also of note, Greece politicians proposed an austerity plan that cuts 150k jobs, cuts the minimum wage by 20% and cuts medical spending.  It remains to be seen whether the plan is passed into law and whether the European Central Bank and IMF endorse the plan to provide more financial aid to help Greece avoid default.

The Dow Jones Industrial Average is currently at 12,757, down over 100 points on the week.  Crude oil prices are currently at $98.46 per barrel, up slightly on the week.  The Dollar weakened versus the Euro and strengthened versus the Yen on the week.

Next week look toward Tuesday’s Retail Sales, Wednesday’s Industrial production and Capacity Utilization, Thursday’s Housing Starts, weekly jobless claims, Producer Price Index, and Philadelphia Fed Survey, and Friday’s Consumer Price Index as potential market moving events.

Mortgage interest rates were mostly flat week over week despite today’s stronger than expected employment report for January.  The unemployment rate fell to 8.3% on expectations that it would remain unchanged at 8.5%.  Non-farm payrolls increased by 243k on expectations that they would increase by 163k.  Private non-farm payrolls increased by 257k on expectations that they would increase by 170k.  Other economic data stronger than expected included the January ISM Services Sector Index, weekly jobless claims, December Personal Income, and December Construction Spending.  Economic data weaker than expected included December Personal Spending, the January Chicago Purchasing Managers Survey, January Consumer Confidence, and the January ISM Manufacturing Index.  Other news of note included continued negotiations betweenGreeceand creditors regarding its debt curtailment.  Also,Chinareported an unexpected increase in manufacturing.

The Dow Jones Industrial Average is currently at 12,852, up almost 200 points on the week.  Crude oil spot prices are currently just under $97 per barrel, down about $3 per barrel on the week.  The Dollar strengthened versus the Euro and weakened versus the Yen on the week.

Next week look toward Thursday’s weekly jobless claims and Friday’s International Trade report as potential market moving events.

Total U.S. foreclosure activity and the U.S. foreclosure rate in 2011 were both at their lowest annual level since 2007, according to RealtyTrac®, an online marketplace for foreclosure properties. The company recently released its Year-End 2011 U.S. Foreclosure Market Report™, which shows a total of 2,698,967 foreclosure filings-default notices, scheduled auctions and bank repossessions-were reported on 1,887,777 U.S. properties in 2011, a decrease of 34 percent in total properties from 2010. Foreclosure activity in 2011 was 33 percent below the 2009 total and 19 percent below the 2008 total.

The report also shows that 1.45 percent of U.S. housing units (one in 69) had at least one foreclosure filing during the year, down from 2.23 percent in 2010, 2.21 percent in 2009, and 1.84 percent in 2008.

“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” says Brandon Moore, chief executive officer of RealtyTrac. “The lack of clarity regarding many of the documentation and legal issues plaguing the foreclosure industry means that we are continuing to see a highly dysfunctional foreclosure process that is inefficiently dealing with delinquent mortgages-particularly in states with a judicial foreclosure process.

“There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011, though still below the peak of 2010.”

December activity hits 49-month low, scheduled auctions up in fourth quarter

Foreclosure filings were reported on 205,024 U.S. properties in December, a decrease of 9 percent from the previous month and down 20 percent from December 2010. December’s total was the lowest monthly total since November 2007-a 49-month low.

December Default notices (NOD, LIS) decreased 19 percent from the previous month and were down 23 percent from December 2010; Scheduled foreclosure auctions (NTS, NFS) decreased 12 percent from the previous month and were down 24 percent from December 2010; and bank repossessions (REO) increased 10 percent from the previous month but were still down 12 percent from December 2010.

Foreclosure filings were reported on 586,133 U.S. properties in the fourth quarter, a 4 percent decrease from the previous quarter and down 27 percent from the fourth quarter of 2010. Fourth quarter default notices were down 6 percent from the previous quarter and down 22 percent from the fourth quarter of 2010; scheduled foreclosure auctions increased 4 percent from the previous quarter but were still down 32 percent from the fourth quarter of 2010; and REOs decreased 11 percent from the previous quarter and were down 24 percent from the fourth quarter of 2010.

Nevada, Arizona, California post top state foreclosure rates for year

More than 6 percent of Nevada housing units (one in 16) had at least one foreclosure filing in 2011, giving it the nation’s highest state foreclosure rate for the fifth consecutive year despite a 31 percent decrease in foreclosure activity from 2010. Nevada foreclosure activity dropped 35 percent from the third quarter to the fourth quarter, driven primarily by a 70 percent decrease in default notices -the result of a new law (AB 284) that took effect in October requiring lenders to file an additional affidavit before starting the foreclosure process. The new law also increases the penalties for the use of fraudulent documents in foreclosure.

Despite a 28 percent drop in foreclosure activity from November to December- caused largely by a 41 percent drop in scheduled foreclosure auctions-Arizona registered the nation’s second highest state foreclosure rate for the third year in a row, with 4.14 percent of its housing units (one in 24) with at least one foreclosure filing in 2011.

California also experienced a substantial month-over-month drop in initial foreclosure notices in December-default notices there were down 38 percent from the previous month-but the state still registered the nation’s third highest foreclosure rate for all of 2011. One in every 31 California housing units (3.19 percent) had at least one foreclosure filing during the year, down from 4.08 percent in 2010 and 4.75 percent in 2009.

Georgia posted the nation’s fourth highest state foreclosure rate, with 2.71 percent of housing units (one in 37) with at least one foreclosure filing in 2011, and Utah posted the nation’s fifth highest state foreclosure rate, with 2.32 percent of its housing units (one in 43) with a foreclosure filing during the year.

Other states with 2011 foreclosure rates ranking among the nation’s 10 highest were Michigan (2.21 percent), Florida (2.06 percent), Illinois (1.95 percent), Colorado (1.78 percent), and Idaho (1.77 percent).

Foreclosure processing timelines continue to increase

U.S. properties foreclosed in the fourth quarter took an average of 348 days to complete the foreclosure process, up from 336 days in the third quarter and up from 305 days in the fourth quarter of 2010. The length of the average foreclosure process has increased 24 percent from 281 days in the third quarter of 2010, when lenders began to re-evaluate foreclosure procedures in earnest as the result of the so-called robo-signing controversy.

The average foreclosure process in New York has increased 37 percent during the same time period, and New York properties foreclosed in the fourth quarter took an average of 1,019 days to complete the foreclosure process-the longest of any state.

New Jersey documented the nation’s second longest average foreclosure process, at 964 days, and Florida documented the nation’s third longest average foreclosure process, at 806 days. Foreclosure activity in both these states dropped more than 60 percent from 2010 to 2011. All three states with the longest foreclosure timelines employ the judicial foreclosure process.

Texas continued to register the shortest average foreclosure process of any state, at 90 days-still an increase from 86 days in the third quarter and from 81 days in the fourth quarter of 2010. Other states with average foreclosure process among the nation’s shortest in the fourth quarter were Delaware (106 days), Kentucky (108 days), Virginia (132 days), and Louisiana (134 days).

Top metro foreclosure rates

With 7.38 percent of its housing units (one in 14) with at least one foreclosure filing in 2011, Las Vegas posted the nation’s top foreclosure rate for the year among metropolitan statistical areas with a population of 200,000 or more.

Ten out of the top 20 metro foreclosure rates in 2011 were in California cities, led by Stockton at No. 2, with 5.43 percent of housing units (one in 18) with at least one foreclosure filing during the year. Other California cities in the top 10 were Modesto at No. 3 (5.29 percent), Vallejo-Fairfield at No. 4 (5.20 percent), Riverside-San Bernardino at No. 5 (5.16 percent), Merced at No. 7 (4.40 percent), Bakersfield at No. 9 (4.31 percent), Sacramento at No. 10 (4.17 percent), Fresno at No. 11 (3.82 percent), Visalia at No. 13 (3.67 percent), and Ventura at No. 16 (3.27 percent).

Other metro areas with foreclosure rates ranking among the top 20 were Phoenix at No. 6 (5.10 percent); Reno, Nev., at No. 8 (4.37 percent); Atlanta at No. 12 (3.69 percent); Prescott, Ariz., at No. 14 (3.50 percent); Cape Coral-Fort Myers, Fla., at No. 15 (3.29 percent); Greeley, Colo., at No. 17 (2.97 percent); Detroit at No. 18 (2.94 percent); Boise, Idaho, at No. 19 (2.85 percent); and Salt Lake City at No. 20 (2.81 percent).

There’s no better time to sort through the growing pile of papers in your home office than when you’re preparing to file year-end taxes. While organizing paperwork and personal files can seem like a daunting task, it certainly doesn’t need to be. Master Lock has provided the following tips for organizing and safely storing important documents for a smooth tax filing process and more organized year.

“Eliminating unnecessary paperwork and storing tax files in one organized, secure place is vital to a stress-free tax filing process,” said Rebecca Smith, vice president, marketing for Master Lock. “By creating and maintaining a master storage system, individuals can not only ease the tax filing process, but also enjoy a feeling of preparedness year-round.”

1. Purge the paperwork

First things first-clear the clutter. Go through all of your paperwork and eliminate anything you no longer need, shredding identifying documents to protect against identity theft. Get rid of expired warranties and year-old receipts and bank statements.

2. Safely store crucial records

Designate a specific storage space for vital documents including birth certificates, marriage licenses, passports, wills and social security cards. These items, as well as any important memorabilia, should be stored in a locked, fire retardant box. Not only will you always know where these items are, they’ll be safe from home mishaps.

3. Create a tax file

Create a separate file for all of your tax documents. Organize this file into 10 categories: income (pay stubs, W-2s, interest statements), medical (medical expenses and health insurance out-of-pocket), donations (cash and non-cash donations), real estate (interest statements from mortgage, tax assessments), child care (payment receipts), tax correspondence (important IRS or state revenue service letters), student loans (statements of payment), miscellaneous receipts (any receipts that might be needed for deductions), payments (records of advance payments) and old tax papers (old tax returns). Continue to use your tax file year-round, and you won’t have to scramble for these documents when it comes time to file next year.

4. Back up everything

Make digital copies of important documents and store them in your fireproof box on a zip or thumb drive. Use a secure online organization and security solution to store log-in and password information for bank accounts and credit cards as well as lock combinations or key numbers to your file boxes. Consider appointing a guardian as an additional security measure who knows where and how your records are stored for easy access in your absence.

5. Make it a tradition

Select a specific time of year (perhaps when tax time rolls around again) and make your review of these records an annual occurrence. This will ensure your information is streamlined and up-to-date and that finding or organizing this information is never an overwhelming process again.

Mortgage interest rates improved this past week on the Fed’s FOMC Announcement.  At the conclusion of its FOMC meeting on Wednesday, the Fed announced that they plan to leave the Fed Funds rate at current levels of 0% to 0.25% through the end of 2014, signaling concern regarding the economic recovery.  Previously, the Fed had indicated that it planned to leave the Fed Funds rate at current levels through mid-2013.  The Fed also cut its forecast for 2012 GDP to a range of +2.2% to +2.7% from its previous forecast of +2.5% to +2.9%.  Economic data was mixed.  December Pending Home Sales, December New Home Sales, December Leading Economic Indicators, and the advance report on Q4 GDP were weaker than expected.  The November FHFA Housing Price Index, December Durable Goods Orders, and the University of Michigan Consumer Sentiment Index were stronger than expected.  The Treasury auctioned $99 billion in 2 Year, 5 Year, and 7 Year Notes, which were met with reasonably strong demand.

The Dow Jones Industrial Average is currently at 12,639, down about 80 points on the week.  Crude oil spot prices are currently just under $100 per barrel, up over $1 per barrel on the week.  The Dollar weakened versus the Euro and Yen on the week.

Next week look toward Monday’s Personal Income and Outlays, Wednesday’s ISM Manufacturing Index, Thursday’s weekly jobless claims, and Friday’s employment report for January as potential market moving events.

Mortgage interest rates increased slightly this past week as economic data was generally either better than expected or in line with expectations.  Economic reports stronger than expected included the New York Empire State Manufacturing Index, the NAHB housing market index, and weekly jobless claims.  Weekly jobless claims fell by 50k on expectations that they would fall by 16k.  Reports in line with expectations included December Industrial Production, December Capacity Utilization, December Building Permits, and December Existing Home Sales.  Inflation data was also in line with expectations.  The December Consumer Price Index was up 3.0% year over year and excluding the food and energy components, core CPI was up 2.2% year over year.  Also of note, borrowing costs inItalyandSpainwere better than expected which put pressure on Treasury yields.

The Dow Jones Industrial Average is currently at 12,691, up about 270 points on the week.  Crude oil spot prices are currently at $98.35 per barrel, down slightly on the week.  The Dollar weakened versus the Euro and strengthened versus the Yen on the week.

Next week look toward Thursday’s Durable Goods Orders, weekly jobless claims, and New Home Sales along with Friday’s first look at Q4 GDP as potential market moving events.  Also, the Federal Reserve’s FOMC meeting concludes on Wednesday.

You may think I’m all wet, but I’ve decided to talk about condensation, only because I receive a lot of questions about foggy windows in the winter.

Apparently, I’m not the only one.

“We often get calls from homeowners who are concerned that their windows are ‘sweating’ or leaking either inside or outside the home because they see moisture on the glass,” says Christopher Burk, technical product manager at Simonton Windows in Columbus, Ohio.

That’s simply not the case.

“While condensation may collect on the interior or exterior of energy-efficient windows, the units are really doing their job by helping serve as a barrier in the home,” Burk says.

Windows don’t cause condensation. They just prevent the moisture in the home from escaping to the outside.

“If the inside glass surface on double- or triple-glazed windows show excessive moisture, you can be reasonably sure that the moisture is also collecting on your walls and ceilings,” Burk says. “This means you should take steps to reduce the humidity level in your home by using exhaust fans and dehumidifiers.”

A lot of the water vapor is created by the inhabitants.

A family of four can add a half pint of water vapor every hour to the home just through normal breathing and perspiration. And, if you take a five-minute shower, you produce another half pint of water vapor. Even the simple act of cooking dinner on a gas stove can produce two and a half pints of water vapor.

Water vapor is part of our lives and our homes. To help control the amount of condensation in the home, experts at Simonton Windows recommend the following tips:

Use kitchen and bathroom exhaust fans.

If you have a humidifier, set it to the correct outside temperature.

If your home is overly humid, or if you have a damp basement, use a dehumidifier.

Properly vent clothes dryers, gas appliances and stoves.

Open a window in the bathroom.

Make sure your attic, basement and crawl spaces are well-ventilated and free from obstructions.

Store firewood outside. Freshly cut wood can consist of up to 45 percent water, which adds water vapor to the home. Even well-seasoned firewood generally has a 20 percent to 25 percent moisture content.

Open curtains and blinds to allow more air circulation around your windows.

Homeowners with the most cause for concern are those with older, less efficient windows.

“Windows are just like any other major part of the home,” Burk said. “They wear out over time and need to be replaced. If your windows have air leaks, don’t close properly, or are failing to act as a solid barrier to the environment, then it’s time to consider replacing them with energy-efficient windows.”

Burk also recommends knowing the difference between condensation on the glass and between the glass panes of the window.

“If you see moisture, fogging or cloudiness between the panes of glass in your window, this indicates that the seal of your window has failed and it’s time to get a new window,” Burk says.

“Failed seals lack the energy efficiency and features necessary to help you keep energy bills low and enjoy comfortable living in your home,” he said.

“While condensation on the interior or exterior of the glass is manageable, moisture between the glass needs swift attention by homeowners,” according to Burk.

By Alan J. Heavens