Mortgage Rates
Rates have settled in a pretty nice trading pattern as trader’s digest all of the positive and negative news. The US economy is roaring with all economic numbers showing signs of growth. But on the negative front, we do have the Trade War that is boiling over, thus could cause some stalling in certain sectors of the economy.
Typically trades wars are very negative for economic growth, but in this case, it is being a fought on a specific level, steel and aluminum vs Maple Syrup and Whiskey. The European and Chinese are focused on tariffs on specific products, which they feel will influence the re-election of Trump. So, while it sucks to be Vermont Maple Syrup producer and Jack Daniels, a majority of the economy is not being affected. BUT this could change, and if China went after the Auto Producers, Ford/GM, this would then affect a lot more of the economy, thus it is anticipated that Mortgage rates would improve.
What is causing rates to go up, well 1st, North Korea is off the table, major keeper of low rates. Then Italy, for now, has a government willing to do something about their financial crisis, thus the EU is ok, for this week.
The Tariff battle vs the Economy growing has caused rates to stay in a pretty good channel, but darker clouds are on the horizon.
The Federal Reserve, since 2009, has bought TRILLIONS of dollars of Mortgage Backed Securities (MBS). In 2012, they indicated there were not going to buy anymore, but still reinvest in MBS. Last year, they indicated that they are not going to reinvest and start selling. We say this starting in January of 2018, again in March. Each time we say a step down in MBS, which increased mortgage rates. So be on the lookout for July and October, these are the next two times which the Federal Reserve will sell more and more MBS, thus the anticipation of mortgage rate taking those next steps towards higher interest rates.
Realtor need Soliciting License?
Did you know, that if you, as a Realtor, are going door to door, soliciting listing, you may need a license? Yep! In the City of Boise, Meridian, and Nampa, (and maybe others) you may need a Solicitor License in order to go door to door. And what happens if you don’t, you could get a ticket and a fine.
For Nampa, link here: http://www.sterlingcodifiers.com/codebook/index.php?book_id=597
Then it is Title 5, chapter 5,
For Meridian, Link here: http://www.sterlingcodifiers.com/codebook/index.php?book_id=306
Then it is Title 3, chapter 4
For Boise, link here: https://cityclerk.cityofboise.org/licensing/other/vendor/
Moral of this story is, get with your Broker and research if you need a license, from my reading, IMO, everyone does.
USDA / Rural Development income limits go up.
USDA / Rural Development increased income limits by roughly $4000 across their RD programs this week, which is allowing quite a bit more people to take advantage of the USDA RD 100% financing home loans. Find more information here, with updated income and map of eligible RD USDA cities.
Link to web page here: https://www.375loan.com/loan_products/usda_rural_development_home_loan/