Rates:

Well rates have start to fall again, slipping for the 3rd week in a row, but this week more agressively.

We have seen the 10 year bond start to trade, with some consistancy in the 3.30's range for much of the week.

 So what has caused this shift, well a few items.

1st on Wednesday we have the Federal Reserve completing their meeting, and although, as expected they didn't raise their Fed Funds Rate, it was the lack of any positive news in their statements that caused investor to be concern.

Then, after the statement was released, the Fed Chairman gave a very unusual news conference, although it was much anticipated, the overall feeling of the news conference was the Fed was way too vague.

This caused some worry in the markets that the recovery out of the "Great Recession" is going to be slower than once thought.  Especially since the Fed really had a not so positive view of the Labor Market.

Then today we had GDP come out, last quater we saw a 3% growth, which was pretty positive.  But this last quater the US only saw a 1.8% GDP grown, the lowest in over a year.

The GDP "lack of" growth was attributed to 2 main factors, weather and high gas/oil prices.   And with the weather not being too much of a factor for the start of this quater, a lot of economist are looking at gas prices to contineu to weigh on the US economy.

Also this week, weekly unemployment numbers came out and the US saw a rise in 1st time unemployment applications, once again pushing that number over the 400,000 mark.

Another not so good sign.

So due to all the news this week, we have seen rates take a dip anywhere from .10 to .125 in rate decline.

With the 10 Year trading in this range, it should make a run for the 3.25% mark,  and with some consistancy in that range, we should see rates return to the 4.50% for Conventional rates.

HUD Condo

With Condo prices so inexpensive out there, many people are trying to purchase them.  BUT you will need ot check HUD's approved condo list if you want financing!!

Yes, HUD has to approve Condo projects in order for them to get pretty much any type of financing out there.

It is the responsibility of the Condo Association to file the proper paperwork BEFORE it expires.   

Check you condo association LINK HERE.

And also check it if you are listing the condo also.

Lenders raising "Junk" fees;

Well we are almost 1 month into the new Lender Compensation Rule and lenders are scambling to raise thier "Junk" fees.

I recently noticed on a HUD-1 that the lender charged a:  Underwriting Fee, and Processing Fee, and Doc Prep Fee and a Funding Fee.

Holy Cow bat may, the fees added up to almost 2% of the loan amount.

So watch you fees!!!!

Remember ALWAYS ask you lender if they are doing:

Borrower Paid Compensation, which means the borrower is getting the BEST possible interest rate.

OR

Lender Paid Compensation, which means the interest rate is HIGHER to pay the lender.

And when it comes down to it, it is ALWAYS about the rate!

Sales tip:

McDonalds hired 49 people locally this week, on their hiring spree.  Most of those people will be full time employees...

I smell a home owner!

So I have a challenge for you this week, go out and hand out 50 business cards to:
      Checker in the grocery line.
      Who ever you order food from.
     The cashier when you get gas.

That is only 7 cards per day.  And tell me about the results!

And if you think they can't own a home, think about this.

There are Townhomes going for $50,000 out there, that is a roughly $350 per month payment, complete PITI payment.

OH don't have a down payment, well how about a "Up To" $8,000 1st time home buyer's grant.

Just ask!!!!