Well let's start out with rates.

Over the last 3 weeks, rates have remained pretty stable, only ticking down about .125%.  At least until today.

Mainly it has been the PIIGS in the news, this time Spain, where as they are needing massive bailouts of their banks, causing the traders to once again flee to US Debts.

This has caused the 10 year bond to bottom out around 1.43%, and there is huge resistance there, so that puts 30 mortgage rates in the low 3's.

And although we did see 3.25% about a week ago, it bounced right off that, and now we are hanging around the 3.375%.  Although IHA is advertising 3.24% today.  I don't think that will last.

Government rates are still hanging around the 3.25%, and look pretty stable there.

But today we saw unemployment numbers jump to 167,000 newly employed.  The stock market, which was pretty oversold, jumped all over this news with the NYSE currently up 237 points.

I think this is a blip, and for the rest of the month, people will still focus on Europe and that mess.

My overall advice, lock them, don't gamble with these rates, sure they could go down, but any good info will cause them to jump higher with knee jerk reactions.

RD Changes.

Some major changes coming for RD.

1st and most important, KUNA will lose its status as a RD eligible area on 10/1/2012.  This means you better submit your files TODAY, and I mean TODAY.  Because if you don't get a RD Commitment before 10/1/12 you are hosed.

Also, RD monthly Mortgage Insurance Fee will increase from .30% to .40% on 10/1/12.  Not a huge increase but still an increase.

Congress could step in and stall these changes, but really, we are talking Congress.

VA Changes

Nothing too major, VA max loan amount will increase to around $729,000 ish.

A widow of a VA Vet can now purchase a home, using the VA eligibility of the deceased spouse, pretty much with out any restrictions.

No changed in fees or requirements, so that is good!