Rates:

Well once again, the economy is stemming along at a OK pace, which is causing more and more people to take their money out of Bonds and put it into Stocks.

This weeks economic reports were all fair:

Durable goods were down, but not too significant, and still in the positive mode.
Government didn't have to sell more of the US to China this week.
Michigan Consumer Fell again, lowest level in a while.

These along with some stabilization in Japan, economically, except for the Reactors, and the US bombing Libya, all have seem to put rates on the upward climb.

The big Gorilla in the room is the housing market, but I will go into that in a few more paragraphs.

Oil, also has eased this week, with the major oil producers either giving billions of $ to their people or quashing the uprising like bugs on a road.  There is some turmoil in Syria and Bahrain, but being that these are not major oil players, not much should happen with out.

BUT....

Early this morning the PIIGS have raised their heads again, this time it is Portigual.  Estimate are around $99B to bail them out.  I think that out of any news out there that will affect rates, it will be this in the coming days.  If the EU bails them out, than status quo, but if the EU doesn't, we could see a minor correction in rates for the better.

ALSO...

If you look to the Right, you will notice a new little tool, which give you indication on a minute by minute basis on what rates are doing,  and based on that, and the 10 year Bond chart, almost anyone can determine what rates are doing TODAY.

Home Sales

Well it wasn't a good week for "National" home sales.

February existing home sales were expected to be down 4.5% were actually down 9.6%, with medium price down to $156,100, lowest since 4/2002 and a 8.6 month supply.

HFHA home price index fell 0.3% last month.

February new home sales, expected to be down 1.0%, was actually down 16.9%, which was a huge shock, medium price was down 8.9%, down to December 2003 levels.

Now those numbers are pretty harsh, but PLEASE keep in mind, that these are National numbers.  Here locally, we are on our 3rd month of positive sales and our 3rd month of increased home prices!!!

Both Ada and Canyon County have shown some pretty nice increases in the last 3 months, and from what I see and hear out there, March should be a pretty good month also.

FHA tax increase

Don't forget, that any files in which we order case numbers AFTER April 15, will have the new FHA mortgage insurance on it.

On the 18th, the monthly MI will increase from .90% to 1.15%, or roughly add about $30 onto a persons monthly payment for each $100,000 they borrow. 

Yeah, like that is going to help our recovery....

Investment

Don't know if you read the Idaho Statesman today, but there is a pretty good article that states the vacancy rate for rental homes is shrinking, as more and more foreclosed people are needing to rent for a minimum of 2 years.

Article link Here

I have been touting for some time that this would and is happening.

But what this article doesn't say is:

Sure, more investors are going to get into the market, which may or may not increase or decrease rents.   BUT....

What it will do is dry up the supply, which is theory will cause home prices to increase.

AND...

Lending guidelines, currently, say you will be a permentant renter for a minimum of 2 years after a short sale and minimum 3 years after a foreclosures.  BUT what they are not saying:  It is believed that in the next 2-3 years, most people will have to come in with 10%+ for down payments.  Thus extending more people in their rentals.

What a GREAT time to be an investor!  And believe me, if I had the extra money right now, I would be purchasing rentals!!!

Did you know:

There is over 1,500,000 vacant home in Florida.  Estimate 4 people per home, and that is housing for 6,000,000 people, or enough for the whole population of Idaho, PLUS Oregon, Montana, and some of Wyoming.

Foreclosure Web site:

I have been searching and searching for a good web site for people to go to for information about Foreclosure Prevention, and there are some good ones out there, but they are just no 1 resource.  So I created one.  It has TONS of links, helpful info and some GREAT videos.

http://www.375loan.com/Resources/Foreclosure_Prevention/

I hope you can utilize it for your clients as a resource.