Rates continue to rise:

Just like in the past weeks, rates continue to go up, breaking the 5% mark for the first time in over 1 year.

The main reason for this is pretty simple, and should continue, the Economy is Improving.

So lets look at some of the economic numbers that are showing improvements:

Although the Fed doesn't think so, inflation is raising it's ugly head, and as more inflation continues, it will cause concern that the Fed will have to raise rates, sooner than later. 

Retail sales continue to climb, after a pretty good December, it was anticipated that January's sales would be down due to the Weather, but there actually beat expectation, and for early numbers in February, they are looking good also.

So this means that the consumer is back in the market, and this is critical to coming out of the "Great Recession".  More spending means more jobs, means more spending, means more jobs...

Another sign that the economy is improving happened this week as the US tried to sell off it's debt.  We had a $32B, 3 year note auction this week, and it was not very pretty.  It looks like investors are not looking at putting their money in a conservative Bond, but the stock market.

Weekly Jobless claims fell, AGAIN, for 5th straight week, once again below the 383K mark, which is the lowest levels since 2008.  And continuing claims fell from 3.935M to 3.888M.  Still a huge number, but it is going down!

All of this news have sent rate over the 5.00% mark, and with no end in sight, rates should continue to climb through out the year.

But don't freak out!!!!  We all soon forget that during the hey day of 2003-2006 interest rates were in the mid to HIGH 6's!!!

Good news in Boise!

I have been in contact this week with quite a few builders and Realtors who represent builders.  And believe it or not, we may, may see developed lots dry up, probably by the middle of the year.

Over the last 3 years, there has been TONS of developed lots which have gone back to the banks and sold at auctions.  But in the last week, I have been told that although there is some out there, it is getting skinny.

AND

I have been told by 1 builder, that he is unable to find any more lots in his price range and is going to start developing his existing dirt!

This is good news for 3 reasons, 1st, we are getting rid of inventory out there.

2nd, developing lots costs money, and put construction people back to work.

3rd, there are people buying!!!

And going along with that, I have 1 builder who has more homes pre-sold since the 1st of this year then he did of ALL of last year.  And he is on track to go over his 2011 home construction goal in the next 2 weeks.

Fannie/Freddie going by!

The Feds today gave a preliminary "white paper" on slowly getting ride of Fannie and Freddie and giving the banks full control of Mortgages.

Although in the preliminary stages, I do believe we will see the end of the Government Guaranteing mortgage as they do right now.

We will probably see a minimum of 10% down for loans.

More to come!!!!

Major change for mortgage loans!

The new Frank/Dodd rule will go into affect on 4/1/11 regarding compensation for ALL loan officers, brokers/lenders and BANKS.

This is socialism at it's best, the government is basically regulating our wages, and unless there is some sort of stall, this new rule will go into affect on 4/1/11.

I will have more details as they come out, but like I said, it is the government telling us how much to make.  And I feel it is just the next step in over regulating the Real Estate world.  And the government next eye is Realtors, so watch out.  If the banking industry couldn't stop this regulation, I feel the RE industry isn't going to have much more power.

Watch for updated info.  But basically it will cause a Loan Officer compensation to be decreased and a Buyer Cost to increase.