Rates
For the last couple of weeks, we have seen rates go down significantly at the 1st part of the week, rally back in the middle and then soften again at the end of the week.
So this week was almost identical. The 10 year bond traded below 3.14% for a good portion, then LinkedIn did their IPO offering, causing a ralley on Thrusday. Then today, with some economic news and PIIGS raising their heads again, rates sank back down.
Let's look at some of the numbers:
1-Philly Fed Index, which is one of the more important indexes on economic growth we follow was expected to to increase from 18.4 to 20 (anything above a zero is expansion). But instead it fell from 18.5 to 5.4, can we say OUCH.
2-PIIGS, for you who don't regualar follow my blogs, PIIGS stand for: Portagual, Italy, Ireland, Greece and Spain. These countries are getting close to defaulting on their national debt. But recently the EU has bailed them out with Billions of Euros. In the case of Greece, it was about 116B in Euros.
Well today, Finch, a bond rating agency, pretty much said Greece is Junk or a B+ rating, i.e. USA, for now, is a AAA rating.
This is causing people to sell or not to invest in these countries and buy the good'ol US Bonds.
So this week, we have seen just slightly less than .125% improvements in our 30 year rates. With FHA firmly entrenched.
If we continue to see the PIIGS come up in the news, along with not so good economic news, rates will cotinue to fall!
Foreclosure and SS news:
Thought I would bring a litte good economic news that affect us:
-Loans that are 90+ days deliquent have fallen for 5 straight quaters, lowest level since beginning of 2009 @ 3.62%!
-Foreclosure starts is now at 1.08%, lowest level since the end of 2008.
-% of loans somewhere in foreclosures dropped by the largest amount, ever to 4.52%
-IMLS reports active homes on the market was 4384, down from 4420 on 5/5, down from 4459 on 4/29, down from 4480 on 4/4
-% of distress active properties accourding to IMLS 43.2% on 5/20, 44.6% on 4/29, 45.15% on 4/15, 47.7% on 4/8, GREAT NEWS
Homesteps
Freddie Mac, on Monday announced new programs for people buying their homes:
1-3.5% in Closing Costs.
2-2 year home warranty.
3-$1200 BONUS to the selling RE Agent, so you get, well your broker gets, 3% + $1200
Get all the details and dates at: www.homesteps.com
CALL TO ACTION:
As if it isn't hard enough to get a loan now, the Government under the Frank Dodd bill has set up the QRM program or Qualified Residential Mortgage, which means that in order for a bank to sell a loan and keep it off the book, bank either needs the loan to have 20% down or keep 5% of them on their books.
So the fear is most of the lenders are going to require 20% down.
Please go to this link and read more!
This could derail any type of recovery we are in!
Sales Tip
So how many of you followed my advice and gave out 7 business cards per day for 7 days. It is working, comment below and give us your success story