This week brings us the release of only three pieces of economic data that are likely to affect mortgage rates. However, the biggest event of the week will be the Federal Open Market Committee (FOMC) meeting Tuesday. We may see some pressure in bonds tomorrow as investors prepare for the meeting, but most traders will likely make their moves post-meeting Tuesday.

The first important release is June's Personal Income and Outlays data tomorrow morning. The Income & Spending report helps us measure consumer ability to spend and current spending habits. If it shows sizable increases, bond selling could lead to higher mortgage rates. Current forecasts are calling for a decline of 0.1% in income and an increase of 0.5% in spending.

Also scheduled for release tomorrow is June's Factory Orders data. This report helps us measure manufacturing sector strength by tracking orders for both durable and non-durable goods during the month of June. It is similar to last week's Durable Goods Orders report that tracks only orders for big-ticket items. Since a significant portion of the data was released last week, this report may not have as big of an impact on the markets as you may think. Analysts' are expecting to see an increase of approximately 0.7% in new orders.





The FOMC meeting will adjourn at 2:15 PM Tuesday. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed's next move may be.

Bond traders will be watching the post meeting statement very carefully. Generally speaking, a hint of rate hikes in the future will be construed as an indication that inflation is still a concern and would likely lead to bond selling and increases to mortga ge rates. If the statement gives an indication that the Fed is not as concerned with inflation as previously noted, the bond market should rally, leading to lower mortgage rates.





Employee Productivity and Costs data for the second quarter will be released Friday morning. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don't see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly. Analysts are currently expecting to see an increase in productivity of 2.7%. A higher than expected reading could help improve bonds, leading to lower mortgage rates.

Also worth noting are two important Treasury auctions this week. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms pa rticipating prepare for them. However, as long as they are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lower after the results are posted. Those results will be announced at 1:00 PM each sale day. If there will be revisions to mortgage rates because of the results, look for them to be made during afternoon trading Wednesday and/or Thursday.

Overall, I am expecting to see a choppy week in trading and mortgage rates. We will likely see the most movement in rates Tuesday with the FOMC meeting. Wednesday's Treasury auction may also affect rates during afternoon trading. I suspect that the rest of the week will be driven by stock market gains or losses.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008 ____________________________________________________   Bank Owned Properties (REO) Today, Monday August 4, 2008, there are over 70 Bank Owned homes on the market in Mission Viejo ranging in price from $164,900 to $819,800. For a list of these homes in Mission Viejo or a list of Bank Owned homes in any other city contact Gail McClendon 949 422-4343 or gail@viphousesearch.com Visit my website at www.viphousesearch.com

Friday's bond market has opened down slightly following the release of this morning's economic news that had mixed results but leaned more towards unfavorable to bonds. The stock markets are also in negative ground with the Dow down 74 points and the Nasdaq down 30 points. The bond market is currently down 3/32, which will likely have little impact on this morning's mortgage rates. However, if bonds fall any further we likely will see mortgage rates revise higher later today.

The Labor Department gave us this morning's big news with the release of July's Employment figures. They said that the unemployment rate moved higher by 0.2% to a four year high of 5.7%. Analysts were expecting an increase but only to 5.6%. This was the part of the report that was favorable to bonds.

The negative portion came in the number of payrolls added or lost during the month. Analysts were expecting to see a loss of 75,000 jobs last month, but today's report showe d a loss of 51,000 payrolls. It also revised June's loss upward by 11,000 jobs. However, this was the seventh consecutive monthly decline in payrolls, which indicates that the employment sector remains soft. Generally speaking, that is good news for bonds even though its not as good as we had hoped for.

Today's second release was the Institute for Supply Management's (ISM) Manufacturing Index for July. It showed a stronger than expected reading of 50.0. Analysts were expecting to see a larger decline to a reading of 49.2. This means that more surveyed manufacturers felt business had improved during the month than was expected. That is also considered to be a negative for bonds, but was not enough to create much concern in the market.

Next week brings us a handful of relevant economic reports for the markets to digest, beginning with July's Personal Income and Outlays early Monday morning. This report is considered to be moderate-to-high in import ance and can influence bond trading and mortgage rates. However, I would not expect to see a significant move in rates solely as a result of this report.

The rest of the week includes data on manufacturing and worker productivity along with another Federal Open Market Committee (FOMC) meeting. Look for more details on this meeting and next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008 gail@viphousesearch.com www.viphousesearch.com

Tuesday's bond market has opened in negative territory following stronger than expected economic news and sizable stock gains. The stock markets are showing strength with the Dow up 122 points and the Nasdaq up 46 points. The bond market is currently down 16/32, which will likely push this morning's mortgage rates higher by approximately .125 - .250 of a discount point.

This morning's economic news came from the Conference Board who posted their Consumer Confidence Index (CCI) for July. It showed a reading of 51.9 and also revised last month's final reading higher by 0.6. This means that consumer confidence was higher the past two months than many had thought. This is considered bad news for bonds and mortgage rates because consumer spending is tied to consumer confidence.

There is no relevant economic news scheduled for release tomorrow that is relevant to mortgage rates. Look for the stock markets to influence bonds and mortgage rates. If s tocks rise again, bonds will likely fall and mortgage rates inch higher. If stocks give back today gains, we should see mortgage rates improve tomorrow.

There are two reports scheduled for release Thursday. The first is the quarterly Gross Domestic Product (GDP), which is considered to be the best indicator of economic growth. It is the sum of all goods and services produced in the U.S. and usually has a great deal of influence on the financial markets. Current forecasts are estimating a 2.3% pace. A larger increase will probably hurt bond prices, leading to higher mortgage rates. But a smaller increase would likely fuel a bond market rally.

The second report of the day is the 2nd Quarter Employment Cost Index (ECI) that measures employers' costs for wages and benefits. It is considered to be an important measurement of wage inflation and can have a pretty big impact on the bond market and mortgage rates. If it shows a rapid increase, raising inflatio n concerns, the bond market may drop and mortgage rates rise. It is expected to reveal an increase of 0.7%.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008 gail@viphousesearch.com www.viphousesearch.com

Monday's bond market has opened in positive territory following early stock weakness. The stock markets are showing losses with the Dow down 68 points and the Nasdaq down 7 points. The bond market is currently up 16/32, which should improve this morning's mortgage rates by approximately .125 of a discount point.

There is no relevant news scheduled for release today, but there are several important reports due this week that are likely to affect mortgage pricing. The first piece of news comes late tomorrow morning when the Conference Board posts their Consumer Confidence Index (CCI) for July. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, we may see bond prices rise and mortgage rates drop tomorrow. Current forecasts are calling for a reading of 50.0, which would be a lightly lower readin g than June's reading.

There is no relevant economic news scheduled for release Wednesday that is relevant to mortgage rates. However, there are two on the schedule for Thursday. The first is the quarterly Gross Domestic Product (GDP), which is considered to be the best indicator of economic growth. It is the sum of all goods and services produced in the U.S. and usually has a great deal of influence on the financial markets. Current forecasts are estimating a 1.8% pace. A larger increase will probably hurt bond prices, leading to higher mortgage rates. But a smaller increase would likely fuel a bond market rally.

The second report of the day is the 2nd Quarter Employment Cost Index (ECI) that measures employers' costs for wages and benefits. It is considered to be an important measurement of wage inflation and can have a pretty big impact on the bond market and mortgage rates. If it shows a rapid increase, raising inflation concerns, the bond market may drop and mortgage rates rise. It is expected to reveal an increase of 0.7%.

Overall, it likely will be a fairly active week in the mortgage market. With several important economic reports on tap, we will likely see noticeable movement in mortgage rates more than one day. The most important day of the week is Friday with the Employment and ISM reports being released, but Thursday's GDP release is highly important to the markets and could heavily influence mortgage pricing also.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008 gail@viphousesearch.com www.viphousesearch.com   Condo for Sale On Lake Mission Viejo or ONLY $349,900

Call Gail @ 949 422-4343 to see this great home

Wow this is probably one of the best locations in Finisterra. Walk in level. No stairs. This floor plan flows nicely. All new plush carpets are in. The kitchen has a good size nook area as well as new appliances. Formal dining room looks out to the view and living room. The patio deck can be entered from the Huge Master or Living room. The assoc. pays for the water and trash. The amenities to this project includes Boat Docks (paid by homeowner upon request) boat storage area, Fishing dock, Beach and sand area for swimming, BBQ and tables for the whole family. Watch Fireworks from the balcony or Beach area. MV has activities all year long for the whole family. Low taxes and no Mello roos. Close to shopping and Lake MV park and beach area.

Friday's bond market has opened in well in negative territory as traders erase a sizable rally in bonds yesterday. The stock markets are in positive territory after their large sell-off yesterday helped fuel the bond rally. The Dow is currently up 51 points while the Nasdaq has gained 17 points. The bond market is currently down 16/32, which will erase yesterday's late rally and prevent much of an improvement in this morning's mortgage rates.

None of today's economic news did anything to help bond prices or mortgage rates. The first was June's Durable Goods Orders that showed an increase in orders for big-ticket items of 0.8%. This was much larger than the small decline that forecasted, indicating that the manufacturing sector may be stabilizing.

The second report was the revision to July's University of Michigan Index of Consumer Sentiment. It showed a reading of 61.2 that was well above the earlier reading of 56.6. This means that consumers w ere much confident about their own financial situations than many had thought. That is considered bad news for bonds because higher levels of confidence usually means that consumers are more willing to make large purchases, helping to fuel consumer spending.

The third was June's New Home Sales report, but it was the least important of the three. It showed a much higher level of sales than was expected and revealed an upward revision to May's sales numbers. Fortunately, this data is not considered to be of high importance or we may have seen bonds even lower than current levels.

With exception to Monday, next week is packed with relevant economic reports. Included in the long list of reports scheduled for release is the single most important quarterly report and the arguably the most important month report. In addition, there are several other pieces of data that may influence the markets and mortgage rates next week. Look for more details on next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008 gail@viphousesearch.com www.viphousesearch.com

Gail McClendon

Residential

Wed, Jul 23, 2008 02:18 PM

Ref: 1

Condominium

Attached

RES

Active

202 Cinnamon Teal

Aliso Viejo (AV)

Price $265,000 - $299,999

Aerial Map

	Aliso Viejo (AV)		Zip 92656-1832		TGNO 921B2
	Orange County (OR)		XSTS El Toro/Calle Corta
	S541297	Media: 14	Builder Tract Seagate Colony - Audubon (ASC)
	Bed 2		Model Whippoorwill (E)
	Baths 2	Style Contemporary/Modern	Stories One Level		Floor 2 of 2
	View Park or Green Belt View				HOA Dues $  285 + $ 55	Land Lse/Yr $
	ASqFt 1,011   Assessor		YrBlt 1990  Estimated		Land Fee
	ALotSize 2,226		Assessor	Dim	Acres 0.05
	Prkng Assigned Parking, Garage Detached, Guest Parking
	Garage 1 D	Rem	# Uncovered Spaces	Cprt	RV Acc	Range $: Yes
	Range Price Listing: Yes

Gorgeous Upper End Unit! Lots of Upgrades: Granite kitchen Countertops, Stainless Steel Sink, Plantation Shutters, Crown Moulding, Custom Baseboards,Travertine Entry. Two Master Suites Each with its own Full Bath, Dual Vanity, & Walk-in Closet. Cathedral Ceilings Throughout. One Car Garage and One Parking Space. Two Community Pools, two Spas, Club House, Washer/Dryer/Refrig. included. Don't miss this one.

Directions El Toro, Calle Corta, Puffin, Jaeger becomes Cinnamon Teal.

Rooms

Bedrooms 2 Master Bedrooms, Walk-In Closet			Living Rm Living Rm Entrance
Kitchen Gourmet Kitchen, Granite Counters, Remodeled			Dining Dining Ell
Total Baths 2 Full Baths 2 3/4 Baths 0 1/2 Baths 0 1/4 Baths 0
Baths Desc
Other 2 Master Baths, Individual Laundry Room

Amenities

Pool Assoc Pool		Spa Assoc Spa	TV Cable TV	Firepl Living Room / Gas Log Fireplace / Gas Starter
Appliances Built-In Gas Range, Dishwasher, Dryer, Garbage Disposal, Microwave, Refrigerator, Washer			Water Heater	Other
High or Mid-Rise Amenities			Security

Interior

Heating Forced Air	Cooling Central	Floors Carpet - Partial, Ceramic Tile
Interior Misc Cathedral-Vaulted Ceilings
Disability Access None

Exterior/Structural

	Entry Location Top Level	Common Walls 1 common wall
Roof Spanish Clay Tile	Plumbing	Patio Balcony(s)
Cond	Sprinklers	Doors/Windows
Structures, Other
Exterior Construction Stucco

Lot Description

APNO 937-99-423		Zoning	Lot/Block/Tract 4//13613
Lot		Legal
Sewer In Street Paid	Water District/Public	Water District	Yard

Community/Association

HS Dist Laguna Beach Unified School District		Elemen	Junior		High Sch
Amenities
Units 1		HOA Dues $ 285  + $ 55				Mello Roos Yes
Land  Fee		Land Lse/Yr $
City Inspection Required No	Builder's Name

Contact Information

 

This Report was created by:
Agent: Gail McClendon	Phone: 949-422-4343	Mobile Ph:	Pager: 000-0000
Office: Century 21 Beachside MV	Fax: 949-597-4015	Email: viphousesearch@yahoo.com	Website: www.viphousesearch.com

Wednesday's bond market has opened in negative territory since there is no relevant economic data to offset early stock gains. The stock markets are in positive territory with the Dow up 24 points and the Nasdaq up 18 points. The bond market is currently down 13/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.

There is no relevant economic data scheduled for release this morning, however, the Federal Reserve will release its Beige Book report this afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. With Fed Chairman Ben Bernanke's testimony last week, I don't think we will see any significant surprises in this report, and therefore will likely not cause much movement in mortgage rates later today.
There are two housing sector related releases scheduled for this week with the first coming tomorrow morning. Neither will likely have much of an impact on the bond market or mortgage rates. June's Existing Home Sales will be posted tomorrow morning and is expected to show a decline in sales.

We also have a 5-year Treasury Note auction Thursday that may influence bond trading but will also give us an indication of investor appetite for bonds. If it is met with a strong demand from investors, bond prices may rise during afternoon trading. However, if the sale was met with a poor demand, we could see bond prices fall and mortgage rates rise late tomorrow.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from no w... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008 www.viphousesearch.com gail@viphousesearch.com

Tuesday's bond market has opened in negative territory as investors remain concerned about inflation sensitive securities. The stock markets are mixed with the Dow up 34 points and the Nasdaq down 4 points. The bond market is currently down 13/32, but due to strength in bonds late yesterday we will likely see little change in this morning's mortgage rates.

There is no relevant economic data scheduled for release today or tomorrow morning. This will leave the bond market and mortgage rates to be influenced by stock and oil prices. This could further pressure bonds in my opinion, so please proceed cautiously if still floating an interest rate. I would not be surprised to see an upward revision to mortgage pricing later today if bonds remain near current levels.

The Federal Reserve will release its Beige Book report tomorrow afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when de termining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. With Fed Chairman Ben Bernanke's testimony last week, I don't think we will see any significant surprises in this report, and therefore will likely not cause much movement in mortgage rates tomorrow afternoon.

There are two housing sector related releases scheduled for Thursday and Friday, but I don't think they will have much of an impact on the bond market or mortgage rates. June's Existing Home Sales will be posted Thursday while New Home Sales will be released Friday. I would expect that other reports or factors will drive bond trading and mortgage pricing much more than these will.

We also have a 5-year Treasury Note auction Thursday that may influence bond trading but will also give us an indication of investor appetite for bonds. Generally speaking, despite the lack of a data-packed calendar, I would still maintain con stant contact with your mortgage professional.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008 www.viphousesearch.com gail@viphousesearch.com  

Monday's bond market has opened flat after this morning's only economic news met forecasts. The stock markets are showing losses with the Dow down 46 points and the Nasdaq down 6 points. The bond market is currently unchanged form Friday's close, but we will still see an increase in this morning's mortgage rates of approximately .250 of a discount point due to weakness late Friday.

The Conference Board reported that their Leading Economic Indicators (LEI)for June fell 0.1%, as latest forecasts had called for. This index attempts to measure economic activity over the next three to six months, meaning economic activity may remain flat in the near future. This is basically good news for bonds and mortgage rates.

This week will be interesting for the bond market and mortgage rates. There are five remaining economic reports scheduled for release, but only one of them is considered to be of high importance to the markets. With data being posted all bu t one day of the week, we may see some noticeable fluctuations from day to day in mortgage pricing.

The Federal Reserve will release its Beige Book report Wednesday afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. With Fed Chairman Ben Bernanke's testimony last week, I don't think we will see any significant surprises in this report, and therefore will likely not cause much movement in mortgage rates Wednesday afternoon.

Overall, this is a moderately significant week for the bond market and mortgage rates. If we get weaker than expected economic results, we may see mortgage rates move lower for the week. However, stronger than expected results will likely lead to higher rates for the week. We also have a 5-year Treasury Note auction Thursday that may in fluence bond trading but will also give us an indication of investor appetite for bonds. Generally speaking, despite the lack of a data-packed calendar, I would still maintain constant contact with your mortgage professional.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
www.viphousesearch.com Gail McClendon 949 422-434 Real Estate for the Real World.
©Mortgage Commentary 2008