Napa Mortgage News

Opt Out Pre-screen & Volatile Week for Mortgage Rates

February 16th, 2017 6:46 PM by Dale DiGennaro

Dear Gena,

At this time of the year we use our cards more than ever and it seems as though the more we use them, online and off, the more that is recorded about us, which in turn increases our chance of fraud or identity theft as information about us is shared without

our even knowing of it.

According to "Fraud Guides"...a company that reports on investment schemes, internet scams and consumer fraud..."identity theft and credit card fraud are two of the worst threats facing consumers"...especially heightened during the holidays.

More information HERE on the danger of those pre-approved credit cards that show up in your mailbox and using "OptOutPrescreen.com" to opt out of these prescreened offers and keepbanks, credit card companies and others from gaining access to your credit information.

If you have any

questions regarding this information or need some direction...please feel free to call our office, visit our website or simply send me an email!

VISIT OUR WEBSITE

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THINKING OF SELLING OR EVEN DOING A REFINANCE...
Our "Home Price Index" will take into consideration your original purchase price & date of home purchase to determine...

according to the appreciation rate for the region you live in...whether it is a good time for you to refinance now or....if you are getting ready to list your home...what a reasonable value for your area would be. You can also sign up to receive a quarterly report of your homes value based on the up to date analysis of your region.

Just a couple of ways that Custom Lending keeps you informed of our changing market place so you can make the best financial decisions for you and your family!

Volatile Week

It was a volatile week for mortgage rates. A wide range of factors, including Italian politics, OPEC, and U.S. economic data, caused significant reactions. The net effect was small, however, and mortgage rates ended the week with little change.

On Sunday, Italians will vote on a referendum presented by Prime Minister Matteo Renzi. If successful, the referendum would simplify the process in Italy for passing laws. The most recent polls suggest that it may be a very close vote. If the referendum fails to pass, critical reforms for the Italian banking sector likely would be postponed. This would put some banks in Italy and in other European countries at risk of failing. In addition, Renzi has said that he will step down if the referendum fails. This would likely lead to a period of political uncertainty in Italy. Early in the week, investors began to noticeably react to the uncertainty by shifting to safer assets, including U.S. mortgage-backed securities (MBS), which was good for mortgage rates.

On Wednesday, however, OPEC representatives announced an agreement to cut oil production. This caused oil prices to surge over 9%. Since higher oil prices raise the outlook for future inflation, this was negative for mortgage rates. The increase in rates on Wednesday more than offset the improvement seen earlier in the week.

In contrast to the OPEC news, a shortfall on wage

gains in Friday's key Employment report reduced

inflationary pressures, which was positive for mortgage rates.

In November, average hourly earnings were far below

the consensus with a small decline from October.

They were 2.5% higher than a year ago,

down from the multi-year high of 2.8% last month.

Job growth was right on target. Against a consensus forecast of 170K, the economy added 178K jobs in November. The unemployment rate declined from 4.9% to 4.6%, well below the consensus for a flat reading, and the lowest level since August 2007. The unexpected decline in the unemployment rate was mostly due to workers leaving the labor force, however, which is not positive news for the economy.

Looking ahead, the Italian vote will take place on Sunday, and the results likely will affect U.S. mortgage rates on Monday. After that, the next big event will be the European Central Bank (ECB) meeting on Thursday. Investors are divided about what the ECB will decide. In the U.S., the most significant economic report will be ISM Services on Monday. The next U.S. Fed meeting will take place on December 14.

On Thanksgiving Day...our Greater Napa Kiwanis Chapter spent the morning carving turkeys and pies to assist the Salvation Army in their efforts in providing the many families in Napa...who didn't have the means.....a wonderful Thanksgiving together!

We then traveled up to Yountville to help prepare and serve the Thanksgiving Feast at The Yountville Community Center. It was a very nice day to remember how blessed we really are and how important it is to share those blessings with others.

"Thank you for always trusting in us to do the best for you and your family and please feel free to call me anytime with your questions. I will be happy to share with you whatever information you may need!"