Rates ease:

Once again, interest rates eased, taking the 30 year Conventional below the 5.00% mark for the 2nd straight week.  The majority of the rate improvement is going to be temporary, and is mainly due to Libya.

Last week, as the Libyan government is starting to crumble, most investors around the world pulled their money out of stocks and into bonds, sending the 10 year bond below the 3.50% mark, which was a bottom resistance.

Technically it should then run to the 3.24% mark, but I feel it will be only a matter of time before Col. Kaudaffi leaves or is killed and stability will return to the region.

Technically rates should of not fallen, but risen last week.  All of the economic news was pretty good:

-Consumer confidence came in at 70.4, which is a great mark,  if you are a regular follower of the blog, and why should you be.  You will know that early last year, I felt it really would take the Consumer Confidence index to be in the 70's for us to have a decent comeback.  And now with it in the 70's, which is the highest since "the GREAT Recession", the recovery is taking hold.

-Existing home sales came in at 12% POSITIVE, and that is a great number, but the real number I liked was the amount of inventory on the market, falling from 7 months of inventory to 5.1 months of inventory.  This is a really positive sign, because as soon as we reach that 3 month level, it becomes a seller market again!!!

-The Michigan Consumer Sentiment index also was higher, expected to be 75.1 was actually 77.5.  Another positive number showing that the consumers are getting back into a more positive mood.

Home Prices

Let me hammer it once again, have you seen home prices???  Home have not been this affordable since EARLY 2000's late 1990's.

I had a Realtor do a MLS search for home, under $70,000 in Ada and Canyon, there were 697 of them.  So lets do some math.

$70,000 - 3.5% down payment = $67,550 (and yes we still have GRANTS and down payment assistance available for that 3.5%!)

At a interst rate today of 4.79% (5.30% APR) we get a PI payment of $354.00

Say $100 for taxes, $30 for insurance and $51 for MI = $181

Total Payment then is $536 per month.  FOR A HOME!

So that means someone making $9.43 per hour can afford a home.

Sales Tip

I was listening to a Retail Psychologist last week, someone who set up stores to encourage someone to purchase items, and did you know....

How many of you have signs for you listings that have the actual words "For Sale" on them, or do you just have your picture and company logo?

Did you know, a person in the market looking for a home, is more likely to stop at a home with a sign that has the words "For Sale" on it that one that just looks pretty?

As you drive down the road this week, look at signs and notice the ones that say "For Sale" and the ones that don't.

Maybe when you order your next signs, have "For Sale" on them???

FHA Pressure

FHA is putting more and more pressure on banks and lenders to lend, there is a concept.  So that is why we are seeing lenders willing to go down to 580 FICO scores for FHA loan, and I even have lenders that are willing to go down to 500 (with 10% down) for FHA loans.  

WOW, cheap home prices, FHA down to 580, Jobs on the rise, 100% financing available, looks like a GREAT spring!

AND....

So you may think or see a $50,000 home, might need a little work???  FHA 203K loan, yes!  See flyer to the left for all the details!