Rates
Rate have found a pretty good happy place with conventional trading between 4.625% and 4.875% for the last 3 weeks. Govies have been trading in the 4.50% to 4.75% range.
The big focus have been on the 10 year bond, trading under 3.50%, and even ticked down to the 3.43%.
Lately, most of the economic news has been pretty lame to challenging, which is keeping investors out of the stock markets and firmly into the bonds.
-March Retail sales were not the greatest, matter of fact some of the lowest numbers since June 2010, and we also had Business Inventories come out this week, and once again, lowest since June 2010.
-Oil, once again, keeps above the $100 mark, with it even hitting $115/barrel this week. This does have quite a bounce of economics worried, with gas in the $4.00 range, it is starting to take a bit out of some of the consumers spending. Can't go out for a burger or buy that new Flat Screen if you have to put an extra $20/week into the tank.
So rates, against most predictions, have stayed in the high 4's, so we should have some of the best rates ever through the Spring. But watch out for that 10 year bond, if we see it trade consistently in the 3.50% range, we could see a run to 3.75%, which would add about .15 to .25 to interest rates.
MLS Data
IMLS released its March and 1st Quarter data, and I like it!
Now remember, 1st quarter last year, we had the $8,000 home buyers credit. So we are really fighting against some pretty decent numbers because of the tax credit:
Ada County
March 2010 vs 2011 Single family home saw a -12.48%, but..
512 vs 585, so a difference of 73 homes
Quarter 1 2010 vs 2011, Single family homes saw 4.36% increase.
Canyon County
March 2010 vs 2011, single family home saw a 10.45% increase
Quarter 1 2010 vs 2011, single family homes saw a 22.46% increase.
No prices are still tanking, but some nice increases, showing that the buyers are out there. And we didn't have to dangle $8,000 under their noses.
HomePath
I am sure you have seen the signes out there, most Fannie Mae homes qualify for the HomePath financing. Which means:
-Only 3% down (Although the rates on the 97% financing are quite high)
-NO Appraisal necessary!
-NO Mortgage Insurance, which is really the biggest benefit of this program.
-Promotions Through June 30th:
-Fannie will pay 3.5% of the buyers closing costs, which should cover a majority if not ALL of their closing costs.
-Fannie is giving RE agents a $500 Bonus!
Watch to the right for a Brochure on the HomePath!
Sales Tip:
I have 2 of them for you, well 1 is putting a bad rumor to bed.
1st Tip, remember back in 2007-2008, when it all collapsed, and everyone started to become a Short Sale Specialist or a Foreclosure Specialist, well that was 3-4 years ago.
Let's sell 3-4 years....hmmmm...Those people who did a short sale or a foreclosure may be eligible to purchase again!!!!!
That is right, those 8,700 people in Idaho that lost their homes in those two years, could be eligible for a home, again!!!!!!!!!!!
I for see a bill board or a mailer: Short Sale or Foreclosure in 2006-2008? Is it time to buy again? the answer is YES!
Rumor
The last week I have spoken to 2 clients that heard it was nearly impossible to get a home loan, and lending guidlies are extremely tough. WRONG, WRONG, WRONG.
Sure, we are not doing the 580 FICO score, 1 day out of bankruptcy, 100% financing anymore. But it isn't that tough out there.
VA-Still has 100% financing down to a 620 FICO score, SAME AS IT WAS IN 2006
RD-Still has 100% financing down to a 620 FICO score, SAME AS IT WAS IN 2006
FHA, Still has 96.5% financing down to a 580 FICO score, SAME AS IT WAS IN 2004
What has changed:
-well you need a JOB,
-you can't have a BK in the last 2 years,
-Foreclosures and Short sales have to be seasoned for 2 years.
-No collections or judgments on the credit reports.
-The lenders are not going over 45% Debt to income with out some REALLY good excuse.
And now we have HomePath, 97% financing, no MI down to a 660 FICO score, and you can get a GIFT for the other 3%