Rates
Well this week it was all about the PIIGS, in this case Greece, who is a hair widths away from defaulting on their National Debt.
Although economic news this week was really bad for the US, we say numbers coming out from various areas in the US showing Recession, it was still about PIIGS.
May retail sales were down 0.2%
May Producer Price Index inflation reading came in OK, Y/Y up 2.1%, inline
May Consumer Price Index inflation reading came in OK.
NY Empire Manufacturing index, was bad expected to be 11.9 came in at a -7.79, which indicates recession.
National Home Builder's Index fell to 13, lowest point since 9/2010
Soooo, what does this mean?
Well Rates have continued to bang up against the 4.25% wall for Government and the 4.375% wall for Conventional. Each week, with more and more bad economic news, that wall is being chipped away.
BUT.....
I have a sneaky suspicion that bond traders are really waiting for the 900 pound gorellia in the room to do something, which is the US Debt Ceiling.
As we get closer and closer to 8/2/11, which is the day the US will default on it's debt, I suspect we will see more and more trading out of the stock market and into commoditys, leaving bonds right where they are at.
HomePath
Fannie mae is adding more to their HomePath homes:
Buyers get 3.5% for closing costs.
Agents get $1200 Bonus
97% Financing.
NO Mortgage insurance
NO Appraisal
Pretty Sweet program!!!! Flyer to the right------------------>>>>>>>>
AND complete details about Bonus in the previous Blog below!
New Fannie Mae guidelines
On 8/20/2011 FNMA will release update for its Desk Top Underwriting, few changes but the largest change will be:
If a client pays off a credit card to a zero balance to qualify for the loan, and they DO NOT close it out, they will still have to count it against their Debt to Income Ratios.
Pretty big change!!!!
Ada County
Well numbers came out for Ada County, and although sales were down, just slightly, in my book, the 7% increase M/M was pretty interesting.
In speaking to quite a few RE agents, most homes out there now have 3-5 offers on them and they are countering with price increases. One agent told me they are seeing homes go for $10-15K over asking price.
AND.....
Have you noticed that there has not been many new homes coming onto the market, one agent even told me that at the pace we are going, there could be a shortage by late summer...
Idaho Foreclosures
Well Idaho slipped from #5 to #7 in the nation, don't know if that is worth bragging about, but in speaking with local title officers, they have seen a fall off in the amount of notice of defaults out there. I won't hold my breath, but it is positive.
MI Companies
Well it finally looks like the MI companies are coming around, Radian announced yesterday that they will start to insure people 620 and higher, down from the 680 FICO score.
This means 5% down financing for the 620 FICO and higher is available. I have also heard that Lenders are going to start to roll out Lender Paid MI, a small sigh that some lending guidelines are getting more logical!
Sesame Street
The oldies are the goodies, and our favorite furry puppets are teaching what should of been taught already, FINANCIAL RESPONSIBILITY!
Here is a link to a GREAT Video, just substitute the word "Home" for "Stupendious Ball"
And I also highly recommend the "Elmo Save Rap" Also!