Mortgage Pros, Inc.

The Month In Review
Preliminary October 2009 Data:
Units for Sale: (compared to October 2008)
New listings are down 7.39%.
Pendings are up 37.78%.
Solds increased by 29.37%

As for Average Prices:
The “New Listings” average list price is down 15.68% to $276,975. In October 2008 the average list price was $328,479.
Sold average sales prices decreased 2.04% to $234,521. For October 2008 it was $239,401.

Did You Know…?
That we had 11,529 active listings during the same week in 2008? Today there is 10,347 active listings! That is 10.25% decrease from last year.

So how does this affect your listing? Check out our “Months of Inventory” chart on our website to get the details for your MLS area and price range. The report is available in two formats, just in case you need to print it out for your listing presentation.

Posted in LOCAL NEWS | No Comments »

Fed Said to Ask Stress-Tested Banks to Submit Plans on TARP
2009-11-24 05:00:03.1 GMT
By Scott Lanman and Craig Torres

Nov. 24 (Bloomberg) — The Federal Reserve asked nine of the U.S. banks that were part of this year’s stress tests to submit plans for repaying the government’s capital injections, a person familiar with the situation said.
The central bank this month asked Bank of America Corp. and eight other banks to give plans including a timetable, said the person, speaking on condition of anonymity. The firms may have the option to repay Troubled Asset Relief Program funds soon if they’ve been able to raise common equity and would continue to exceed capital buffers set in the stress tests, the person said.
“It would send a terrific message to the market if there was a plan and a timetable for at least the top banks in TARP to pay the money back,” said Joel Conn, president of Lakeshore Capital Inc. in Birmingham, Alabama, which owns stock in PNC Financial Services Group Inc. “It would signify they are good enough to stand on their own.”
The Fed’s request may turn up the pressure for banks accustomed to more flexibility on the timing and process of TARP repayment. Together the nine banks have received about $142 billion in bailout funds, out of the $700 billion Congress authorized in 2008 for the financial rescue.
The banks in the stress test that have yet to repay TARP are Bank of America, PNC, Citigroup Inc., Fifth Third Bancorp, GMAC Inc., KeyCorp, Regions Financial Corp., SunTrust Banks Inc. and Wells Fargo & Co.
To contact the reporters on this story:
Scott Lanman in Washington at +1-202-624-1934 or slanman@bloomberg.net
Craig Torres in Washington at +1-202-654-1220 or ctorres3@bloomberg.net
To contact the editor responsible for this story:
Christopher Wellisz at +1-202-624-1862 or cwellisz@bloomberg.net

Treasuries Little Changed as Stocks Fall, U.S. May Trim Growth
2009-11-24 12:30:04.638 GMT
By Anna Rascouet and Wes Goodman

Nov. 24 (Bloomberg) — Treasuries were little changed as stocks fell around the world and investors speculated a report will show U.S. growth is slow enough to keep the Federal Reserve from raising interest rates.
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., increased government-related securities to 63 percent of assets in October, the most since July 2004. The U.S. is scheduled to sell a record $42 billion of five-year notes today, after yesterday’s two-year auction drew the lowest yield ever. The Fed will publish minutes from its November meeting, when it specified rates will stay unchanged as long as inflation expectations are stable.
“Today’s U.S. data could underpin speculation that the Fed will not reverse monetary policy until later next year,” Ulrich Wortberg, a fixed-income strategist at Helaba Landesbank Hessen- Thueringen in Frankfurt wrote in a note today. “Rate hike speculation will be suppressed.”
The 10-year note yield traded at 3.35 percent at 7:20 a.m. in New York, according to BGCantor Market Data. The 3.375 percent security maturing in November 2019 was at 100 7/32.
The MSCI World Index of shares fell 0.2 percent.
The U.S. economy expanded at an annual rate of 2.8 percent in the third quarter, versus the 3.5 percent pace reported Oct.
29, according to the median forecast in a Bloomberg News survey.
The Commerce Department report releases the data today. A separate report today may show consumer confidence slipped this month.
To contact the reporter on this story:
Anna Rascouet in London at +44-20-7073-3844 or arascouet@bloomberg.net
Wes Goodman in Singapore at +65-6212-1568 or wgoodman@bloomberg.net
To contact the editor responsible for this story:
Daniel Tilles at +44-20-7673-2649 or dtilles@bloomberg.net

U.S. Economy Expanded at a 2.8% Annual Rate in Third Quarter
2009-11-24 13:30:01.538 GMT
By Timothy R. Homan

Nov. 24 (Bloomberg) — The U.S. economy expanded at a 2.8 percent annual rate in the third quarter, less than the government reported last month, reflecting a smaller gain in consumer spending and a bigger trade deficit.
The increase in gross domestic product from July through September reported today by the Commerce Department in Washington compares with a 3.5 percent gain previously estimated. Corporate profits climbed by the most in five years.
Smaller increases in spending show the U.S. was dependent on government stimulus programs to help dig the world’s largest economy out of its worst recession since the 1930s. Growing profits lifted purchases of equipment and software, indicating investment by companies such as Verizon Communications Inc. will help make up for smaller gains in household purchases as unemployment mounts.
“We expect profits to continue climbing this quarter as GDP rises further,” Joseph Brusuelas, a director at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “This will add momentum to the recovery by motivating firms to expand and hire again early next year.”
The pace of growth matched the median forecast of 78 economists in a Bloomberg survey. Estimates ranged from gains of
2.4 percent to 3.5 percent.
The economy shrank 3.8 percent in the 12 months to June, the worst performance in seven decades. The four consecutive decreases through the second quarter marks the longest stretch of declines since quarterly records began in 1947.
To contact the reporter on this story:
Timothy R. Homan in Washington at +1-202-624-1961 or thoman1@bloomberg.net
To contact the editor responsible for this story:
Christopher Wellisz in Washington at +1-202-624-1862 or cwellisz@bloomberg.net

Home Prices in 20 U.S. Cities Rise for Fourth Straight Month
2009-11-24 14:00:29.766 GMT
By Courtney Schlisserman

Nov. 24 (Bloomberg) — Home prices in 20 U.S. cities rose for a fourth straight month in September, pointing to improvement in real estate that’s helping the economy emerge from recession.
The S&P/Case-Shiller home-price index increased 0.27 percent from the prior month on a seasonally adjusted basis, after a 1.13 percent rise in August, the group said today in New York. The gauge fell 9.36 percent from September 2008, more than forecast, yet the smallest year-over-year decline since the end of 2007.
Rising home sales, aided by government programs and a decline in mortgage rates this year, have helped stem the slump in property values that precipitated the worst recession since the 1930s. Home buying and consumer spending may still be hampered by higher unemployment, which may prompt more foreclosures.
“The worst of the rate of home price declines has passed but a strong recovery is not expected,” Steven Wood, president of Insight Economics LLC in Danville, California, said before the report.
Economists forecast the 20-city home-price index would decline 9.1 percent from September 2008, after a previously reported 11.32 percent drop in the 12 months ended in August, according to the median forecast of 30 economists in a Bloomberg News survey. Estimates ranged from decreases of 8.3 percent to 10.3 percent. Year-over-year records began in 2001.
Nineteen of the 20 cities in the S&P/Case-Shiller index showed a smaller year-over-year decline than in August.
Compared with the prior month, nine of the 20 areas covered showed an increase while 10 had a decline. The biggest month-to- month gain was in Detroit and Minneapolis, which both increased 1.8 percent.
To contact the reporter on this story:
Courtney Schlisserman in Washington at +1-202-624-1943 or cschlisserma@bloomberg.net
To contact the editor responsible for this story:
Christohper Wellisz at +1-202-624-1862 or cwellisz@bloomberg.net

Consumer Confidence in U.S. Unexpectedly Increased (Update2)
2009-11-24 15:25:36.931 GMT
By Bob Willis

Nov. 24 (Bloomberg) — Confidence among U.S. consumers unexpectedly rose in November as a brightening outlook masked growing concern over joblessness.
The Conference Board’s confidence index increased to 49.5 from 48.7 the prior month. The New York-based Conference Board’s index, which focuses on the labor market and purchase plans, averaged 58 in 2008 and 103.4 in 2007.
The report showed Americans fretted over jobs, signaling the highest unemployment rate in 26 years may restrain spending and limit the recovery from the worst recession since the 1930s.
Target Corp. last week said it remains cautious about sales this quarter and expects to offer incentives spur holiday shopping.
“Labor market perceptions are very weak,” said David Sloan, chief U.S. economist at 4Cast Inc. in New York, who forecast an increase in confidence. “What did drive is up was expectations, optimism that things will get better, not that things have gotten better.”
Other reports today showed home prices rose and the economy grew at a slower pace last quarter as consumer spending climbed less than the government previously estimated.
To contact the reporter on this story:
Bob Willis in Washington +1-202-624-1837 or bwillis@bloomberg.net
To contact the editor responsible for this story:
Christopher Wellisz +1-202-624-1862 or cwellisz@bloomberg.net

Richmond Fed Manufacturing Survey for November (Text)
2009-11-24 15:12:10.562 GMT
By Chris Middleton

Nov. 24 (Bloomberg) — The following is the text of the Richmond Federal Reserve Bank’s manufacturing sector activity survey for November.
Manufacturing activity in the central Atlantic region expanded for the seventh straight month but was virtually flat on balance this month, according to the Richmond Fed’s latest survey. Looking at the main components of activity, growth in shipments and new orders tapered off, while employment returned to negative territory after being positive for the last two months. Other indicators were generally in line with a month ago. Capacity utilization continued to grow more slowly, while backlogs edged slightly lower than a month ago.
Vendor delivery times were virtually unchanged, while manufacturers reported slower growth in inventories.
Looking forward, assessments of business prospects for the next six months were generally on par with last month’s readings. Firms looked for steady growth in shipments, new orders, capacity utilization and capital expenditures in the months ahead, while they expected employment to stabilize and reverse its negative reading that was seen last month.
Survey measures of prices revealed that growth in raw materials and finished goods increased at a quicker pace in November. Respondents indicated that over the next six months they expected slightly slower growth in both raw materials and finished goods prices from what they had anticipated last month.
To contact the reporter on this story:
Chris Middleton in Washington at +1-202-624-1993 or cmiddleton2@bloomberg.net
To contact the editor responsible for this story:
Marco Babic at +65 6212-1886 or mbabic@bloomberg.net

Home Prices Declined 3.8% in Third Quarter on Foreclosures
2009-11-24 15:12:51.350 GMT
By Kathleen M. Howley

Nov. 24 (Bloomberg) — U.S. home prices fell 3.8 percent in the third quarter from a year earlier, the smallest decline since the first quarter of 2008, as a tax credit for first-time homebuyers boosted demand and slowed foreclosure-driven price drops.
Prices were little changed in September from August, according to a report today from the Federal Housing Finance Agency in Washington. Prices were 0.2 percent higher in the third quarter than in the second quarter.
Prices fell in all nine U.S. regions in the three months ended in September from a year earlier as banks seized real estate from delinquent borrowers. Even as the $8,000 tax credit fueled housing demand among first-time buyers, a 26-year high in unemployment boosted defaults by prime borrowers, according to a Nov. 19 report from the Mortgage Bankers Association in Washington.
“Any recovery in housing won’t be on firm ground until the job market comes back,” said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts.
There are increasing signs that the real estate market is improving after a three-year slump. Home prices in 20 U.S.
cities rose for a fourth straight month in September, according to the S&P/Case-Shiller home-price index.
The index increased 0.27 percent from the prior month on a seasonally adjusted basis, after a 1.13 percent rise in August, the group said today in New York. The gauge fell 9.36 percent from September 2008, more than forecast, yet the smallest year- over-year decline since the end of 2007

Posted in THE FED | 1 Comment »

U.S. Treasuries Decline Before Two-Year Auction, Home Purchases
2009-11-23 13:12:53.212 GMT
By Anna Rascouet

Nov. 23 (Bloomberg) — Treasuries fell as stocks gained before a report that may show existing home sales rose to the highest level in more than two years in October and as the U.S. prepared to sell a record $118 billion of notes this week.
A rally last week pushed two-year yields to the lowest level this year after Federal Reserve policy makers indicated they may keep the target interest rate on hold for longer. This week’s three sales begin today with a $44 billion auction of two-year notes. A National Association of Realtors’ report may show purchases of existing homes grew 2.3 percent in October, according to the median in a Bloomberg News survey.
Treasuries “should remain well bid this week, especially at the front end,” a team of analysts at Unicredit SpA, including Luca Cazzulani in Milan, wrote in a research note today. “Growth data should fuel some volatility, but they are unlikely to change current expectations of central banks remaining on hold in the coming months.”
The yield on the 10-year note climbed two basis points to 3.40 percent at 8:08 a.m. in New York, according to BGCantor Market Data. The 3.375 percent security maturing in November
2019 fell 5/32, or $1.56 per $1,000 face amount, to 99 28/32.
The two-year yield climbed two basis points to 0.74 percent.
Today’s two-year offering will match the record set last month. The Treasury is scheduled to sell $42 billion of five- year securities tomorrow and $32 billion of debt maturing in seven years on Nov. 25, both the largest amounts ever.
U.S. stock-index futures advanced, indicating the Standard & Poor’s 500 Index will rebound from its first weekly decline this month.
Fed Bank of St. Louis President James Bullard said yesterday the central should retain the flexibility to respond to any weakening in the economy by extending beyond March its authority to buy mortgage-backed securities and agency bonds.
To contact the reporter on this story:
Anna Rascouet in London at +44-20-7073-3844 or arascouet@bloomberg.net
To contact the editor responsible for this story:
Daniel Tilles at +44-20-7673-2649 or dtilles@bloomberg.net

Chicago Fed National Activity Index for October (Text)
2009-11-23 13:30:00.1 GMT

Nov. 23 (Bloomberg) — Following is the text of the Chicago Fed’s National Activity Index from the Federal Reserve Bank of Chicago.

The Chicago Fed National Activity Index was -1.08 in October, down very slightly from -1.01 in September. A decline in the contribution of production and income indicators offset small improvements in the other three broad categories of indicators that make up the index.

The index’s three-month moving average, CFNAI-MA3, decreased to -0.91 in October from -0.67 in September, declining for the first time in 2009. October’s CFNAI-MA3 suggests that growth in national economic activity remained below its historical trend. With regard to inflation, the amount of economic slack reflected in the CFNAI-MA3 indicates low inflationary pressure from economic activity over the coming year.

Production-related indicators-with a contribution of -0.07 in October compared with +0.23 in September-made a negative contribution to the index for the first time since June 2009. Much of the decline in this category’s contribution can be attributed to lower manufacturing production. In particular, durable goods manufacturing declined 0.4 percent in October after rising 1.1 percent in September. Partially offsetting this was an increase in the Institute forSupply Management’s Manufacturing Purchasing Managers’ Production Index. It increased to 63.3 in October from 55.7 in the previous month.

Employment-related indicators made a contribution of -0.46 to the index in October versus -0.60 in September. Payroll employment decreased by 190,000 in October after declining by 219,000 in September. Household employment also declined at a slower pace in October. However, the unemployment rate increased to 10.2 percent in October from 9.8 percent in September.

The consumption and housing category’s contribution to the index increased to -0.52 in October, following a contribution of -0.61 in September. Small gains in a number of consumption indicators accounted for much of the increase. In contrast, housing starts were lower in October at an annual rate of 529,000 units compared with 592,000 units in September. The sales, orders, and inventories category also improved in October, contributing -0.02, compared with -0.04 in September.

Thirty-two of the 85 individual indicators made positive contributions to the index in October, while 53 made negative contributions. Forty-three indicators improved from September to October, while 42 indicators deteriorated. Of the indicators that improved, 21 made negative contributions. The index was constructed using data available as of November 19, 2009. At that time, October data for 52 of the 85 indicators had been published.
For all missing data, estimates were used in constructing the index.

The September monthly index was revised to -1.01 from an initial estimate of -0.81. Revisions to the monthly index can be attributed to two main factors: revisions in previously published data and differences between the estimates of previously unavailable data and subsequently published data. The downward revision to the September monthly index was due primarily to differences between the estimates of previously unavailable data and subsequently published data.
To contact the reporter on this story:
Alex Tanzi in Washington at +1-202-624-1959 or atanzi@bloomberg.net
To contact the editor responsible for this story:
Marco Babic at +65 6212-1886 or mbabic@bloomberg.net

Holiday Schedule

SIFMA Recommends Early Market Close on November 27 and Full Market Close on November 26 for Trading of US Dollar-Denominated Fixed-Income Securities in the US in Observance of the Thanksgiving Day Holiday

New York, N.Y., November 10, 2009 – The Securities Industry and Financial Markets Association has confirmed its previous recommendation for an early close at 2:00 p.m., EST, on Friday, November 27, and a full market close on Thursday, November 26, for the trading of US dollar-denominated fixed-income securities in the United States in observance of the Thanksgiving Day Holiday.

These recommendations apply to trading of US dollar-denominated government securities, mortgage- and asset-backed securities, over-the-counter investment-grade and high-yield corporate bonds, municipal bonds and secondary money market trading in bankers’
acceptances, commercial paper and Yankee and Euro certificates of deposit.

The early close will not affect the closing time for settlements.

SIFMA’s recommended early and full market closes are recommendations only; each member firm should decide for itself whether its fixed-income departments remain open for trading. All SIFMA recommendations are subject to change due to market conditions.

Economic Calendar

Date Time Event Survey
11/23/2009 08:30 Chicago Fed Nat Activity Index OCT – -
11/23/2009 10:00 Existing Home Sales OCT 5.70M
11/23/2009 10:00 Existing Home Sales MoM OCT 2.30%
11/24/2009 08:30 GDP QoQ (Annualized) 3Q S 2.80%
11/24/2009 08:30 Personal Consumption 3Q S 3.20%
11/24/2009 08:30 GDP Price Index 3Q S 0.80%
11/24/2009 08:30 Core PCE QoQ 3Q S 1.40%
11/24/2009 09:00 S&P/CaseShiller Home Price Ind SEP – -
11/24/2009 09:00 S&P/CS Composite-20 YoY SEP -9.05%
11/24/2009 09:00 S&P/Case-Shiller US HPI 3Q – -
11/24/2009 09:00 S&P/Case-Shiller US HPI YOY% 3Q -10.50%
11/24/2009 10:00 Consumer Confidence NOV 47.5
11/24/2009 10:00 Richmond Fed Manufact. Index NOV 8
11/24/2009 10:00 House Price Index MoM SEP 0.10%
11/24/2009 10:00 House Price Purchase Index QoQ 3Q 0.40%
11/24/2009 14:00 Minutes of Nov. 4 FOMC Meeting 25-Nov
11/24/2009 17:00 ABC Consumer Confidence 22-Nov – -
11/25/2009 07:00 MBA Mortgage Applications 20-Nov – -
11/25/2009 08:30 Personal Income OCT 0.20%
11/25/2009 08:30 Personal Spending OCT 0.50%
11/25/2009 08:30 PCE Core (MoM) OCT 0.10%
11/25/2009 08:30 PCE Core (YoY) OCT 1.40%
11/25/2009 08:30 PCE Deflator (YoY) OCT 0.10%
11/25/2009 08:30 Durable Goods Orders OCT 0.50%
11/25/2009 08:30 Durables Ex Transportation OCT 0.60%
11/25/2009 08:30 Initial Jobless Claims 21-Nov 500K
11/25/2009 08:30 Continuing Claims 14-Nov 5565K
11/25/2009 10:00 U. of Michigan Confidence NOV F 67
11/25/2009 10:00 New Home Sales OCT 405K
11/25/2009 10:00 New Home Sales MoM OCT 0.80%

U.S. Existing Home Sales Rise 10.1% in October to 6.1 Mln Rate
2009-11-23 15:00:33.287 GMT
By Shobhana Chandra

Nov. 23 (Bloomberg) — Sales of existing U.S. homes increased more than forecast in October to the highest level since February 2007, spurred in part by a tax credit that lured first-time buyers.
Purchases rose 10.1 percent to a 6.1 million annual rate from a 5.54 million pace in September, the National Association of Realtors said today in Washington. The median sales price decreased 7.1 percent from October 2008, the smallest decline in more than a year.
Cheaper homes and stimulus such as the $8,000 incentive, extended and expanded by the Obama administration this month, have revived an ailing housing market that contributed to the worst economic slump since the Great Depression. Further improvement that would aid the economy’s recovery depends on an easing in unemployment and foreclosures.
“We’ve turned the corner,” John Herrmann, president of Herrmann Forecasting in Summit, New Jersey, said before the report. “A pickup in sales is helping builders to burn through the inventory. It’ll still be a gradual recovery.”
Existing home sales were forecast to rise to a 5.7 million annual rate, according to the median forecast of 66 economists in a Bloomberg News survey. Estimates ranged from 5.2 million to 6 million, after an initially reported 5.57 million rate in September.
Sales had reached a 4.49 million pace in January, their lowest level since comparable records began in 1999.
Purchases of existing homes rose 23.5 percent in October compared with a year earlier. The median price fell 7.1 percent from a year ago to $173,100.

Posted in HEADLINE NEWS, MORTGAGE NEWS, THE FED | No Comments »