Rates
Well every since the Federal Reserve indicated that they are going to keep the Fed Funds rate low until 2014, mortgage rates have been on a tear. And almost, I say almost, rates tempted to dip to the 3.50% mark.
As you may have read in the past, we were really waiting for the Fannie Mae to issue a 3.00 Bond. And that bond is here, now, but lenders are a little hesitant on dropping rates to that 3.50% mark.
And the reason they were hesitant was due to the Unemployment number that came out today. Even the really negative people out that couldn't say bad things about todays numbers.
Jobless dropped to 8.3%, and the US economy grew by 257,000 jobs. And November was revised from 100K to 157K.
Today we also had January ISM, which jumped to 56.8 (over 50 is expansion) from and expectation of 53.0
December factory orders increased by 1.1%.
December construction spending was up 1.5%
so based on these numbers, it is expected that interest rates will start to rise again. BUT....
There is the 800LB gorilla in the room, namely the PIIGS, each day we hear that Greece is going to make a deal and get out of their financial trouble, and each day it is put off until the next day. One of two things will come out of this.
1-Greece will settle with their bond holders, and crisis is adverted, rates will then start focusing on the US economy and increase.
2-Greece fails, Europe collapses and Rate will sink like the Costa Concordia.
My recommendation right now is LOCK THEM, there is a great risk of them going up to them going down.
Rate Locks
Did you know, you can lock rates up to 90 days, and some lenders will even allow 120 day locks!.
FHA sure to go wrong.
Well the President announce a loan program, through FHA that will allow non-FHA borrowers who are underwater to refinance, with negative equity, into FHA loans at the lower rates.
This is going to be GREAT, but one thing.....
He proposed to pay for this by Taxing Big Banks... yeah right, that is going to go over well. These are the banks that took Trillions of US dollars to bail themselves out. And now are reaping in HUGE profits, and what are they doing with all of those profits,...spending them on lobbiest!
Just one word: Flop
The Hennessey Report
This is report created by a local appraiser based on MLS data, and in my view, 2011 was definately the bottom and we have been boucing off it and starting to go up since November.
Some Highlights:
Average monthly sold price in ADA increased by .25% (not much but that is positive number)
Average monly sold price in Canyon increased by .88%, yep another increase.
Ada county monthly sold volume was up 5.1% from 2010
Canyon County monthly sold volume was up 5.4% from 2010
Ada County showed a 22% reduction in 12 months. (6.0 months vs 4.7 months)
Canyon County showed a 36% reduction in 12 months. (6.9 months vs 4.4 months)
This is a GREAT read, get the complete report by clicking the link below
The Hennessey Report