Phil Grossfield's Blog

A LITTLE EXTRA…

LTV IMPROVEMENTS! Bonds Suffering – DON’T LET YOUR LOCKS EXPIRE!

My Schedule…and A Little Extra:  DON’T LET YOUR LOCKS EXPIRE WITHOUT CONSULTING ME FIRST!  Read My Market Watch below

California LTV restrictions are gone!  CA is now grouped with most of the other approved states meaning LTV restrictions have been lifted.  Matrices on the portal have been updated.  Here are some common highlights:

  • Purchases now 90% (previously 80%)
  • Condos now 80%/90% (previously 70%)
  • NOO now 70% (previously 60%)
  • Cashout now 80% (previously 70%)
  • No restrictions on max DTI (same as before) 

My Market Watch:  Rates are worse again and prices have dropped about 0.500 in two days.  DON’T LET YOUR LOCKS EXPIRE WITHOUT CONSULTING ME FIRST!  Pricing dropped below an moving average indicator and as such continues to drop.  Let me explain.  Traders look for signals in the marketplace to anticipate what pricing will do in the future.  Accordingly, they trade trying to capitalize on the information.  That certainly makes sense, right?  Well, one of the indicators traders look at Day Moving Averages (DMA) of bond prices over time.  Based on trends in the past and present, they try to predict what will happen if bonds fall below “floors of support” or go above “ceilings of resistance”.  Why is this significant right now?  Because the 30-year bond is trading below a previously established DMA.  So, most traders will not start buying bonds until some news or report gives them reason to buy bonds or the bond hits a lower floor.  This is a bit technical but it is logical and for those of you that are interested, I’m happy to discuss more…just reach out to me….  Disclaimer

My Schedule: I am working from home all morning and then out this afternoon but available….

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