Rates
Well rates keep their trend down, with FHA now a Solid 3.75% (4.125 APR) and Conventional Rates now in the High 3's, and investor rates in the LOW 4's we can that Europe.
Why, because if rates were basing their numbers on the US economy, rates would DEFINATELY start raising. For the last 2 weeks, all US economic news that has been coming out has been Good to GREAT.
Which means 2012 is looking like a pretty solid year!
That was helped today by the all important unemployment numbers which showed unemployment rate falling to a 8.5%, lowest since September of 2009. And the US economy added 200,000 jobs.
ISM service sector up to 52.6, above 50 is expansion.
Factory order up 1.8%
All of these items should of sent rate up, but it is the PIIGS that we can be thankful for!
PIIGS
Well this week Greece, who was thought to kind of being out of the wood, indicated that they will miss their projections for income, and once again told the EU that they will go belly up if they don't get help by March. Keep in mind, the EU has bailed them out 2x already.
Italy, same mess.
And now Spain is groaning.
I suspect that Greece is going to eventually go belly up.
So with all of this news out of the EU, the investors are flocking to US Treasuries, thus keeping rates low.
This year Prediction: As long as the EU is in play, US rates will continue to remain low, so I for see rates about where they are until April/May at least.
BUT.....
If the EU figures it out, there will then be nothing to keep US rates this low, and that will probably put rates somewhere in the mid to high 4's. Still spectacular, but not the 3's we have right now!!
US Tax on homeowners
Well the government extended the payroll tax for another year, and they had to pay for it. So...let's see...cut defense, nope, cut foreign aid, nada, cut subsidies, heck no. How about cut Congress pay...no way, so lets tax home owners!
H.R. 3630 was signed into law, which basically put .10 of a point on to the cost of the loan. This will go into affect on April 1st. And this means that rates will go up on all loans by about .125 to .25 of a point. For the life of the loan!!!
Another National Tax on homeowners, and by the way, if you didn't know. The housing market is still in the dumps, maybe someone should tell Congress???
FHA flip rule
FHA was nice and gave us a Christmas Present, that waived the 90 day flip rule. Finally something positive. It originally expired 1/1/12, but now expires 12/31/12.
Now there are some very specific guidelines for the flip rule to be waived:
SEE LINK HERE FOR ALL THE DETAILS
Weekly Video
You will notice to the right, in the green box, I have quite a bit of info for you, and now I have added a pretty good video that you! Yes YOU can watch and then send out to your clients!!!! All you have to do is copy the link in your email or your Blog, you do blog, right? Or you can refer them to my web site and view it there. I will be posting a new, informative video each week!