End of Year Memo

Dear Colleagues, Clients, and Friends,

Once again, we find ourselves at the end of another year, looking toward the future in anticipation of the year to come. As we plan for 2012, we can’t help but notice that despite recent downward trends, the interest rate forecast has predicted a rise in interest rates. When asked his opinion about interest rate movement at a National Mortgage Banking Conference this past October, our chief economist looked at his audience and said “We’ll see.” Intended to be light-humored, our economist’s outlook illustrates the unpredictability of the market. The fact of that matter is that if we want to pin down any piece of the financial market, we need job growth. Looking at the Global Market, the Euro’s decline shows that America is not alone in this financial quandary.

On a more personal note, with Washington’s extension of the HARP refinance program, I encourage you to take a look at your own mortgage. If you are current on your payments but have negative equity in your home, you may qualify under the HARP initiative. With interest rates in the high threes and low fours, you could land a significantly lower monthly payment (not to mention the peace of mind that comes along with it). It’s true that Washington still has its hands full with the struggling housing market, but hang in there – we are nearing the bottom of the value decline (if we haven’t hit it already). As always, we are happy to assist you in any way possible. Feel free to give us a call to discuss your options.

You may be pleased to learn that the home affordability index is better now than it was before 1990. We anticipate that as more jobs become available, home buyers will return. If you are in the position to do so, now is the time to consider buying. With prices at the bottom of the value range, you may be surprised to find how affordable a new home can be.

Pacific Funding Mortgage Division has enjoyed a solid year of positive growth and development. Looking back at 2011, we owe our success in large part to the continued support we have received from all of you. Thank you! We appreciate your business and look forward to helping with your finance needs as we move into 2012.

We hope you enjoy your Holiday Season!

Best Wishes,

Michael Moeller
President
Pacific Funding Mortgage Division