Rates
Well once again, rate have ticked up, ever so slightly, we thought at the beginning of the week, as rates started to pull down, that maybe we would get a reprieve of the last 6 weeks of rates going up, but nope.
Monday, we say some news coming out of the EU again, about banking scandals, which caused the bonds to retreat and thus rates go lower, but looks like that was short lived, as traders began to focus again on the US economy.
ISM numbers, expected at 55.0 came in at 55.2, anything above 50 is good.
Jobless claims were down another 5,000 to 371,000, still above the 350,000 mark, but the average is hanging around the 350,000.
4th Q productivity was expected to be -3.1% actually only came in at -2.0%.
So nothing really affected the markets, except for Stock Market, and with it on a huge rise, people are pulling their money out of Bonds and into stocks.
Based on the cart above, we are seeing a lot of RED this week, indicating rates going up. What is more concerning is it doesn't look like we have set a floor, although 103.25 might be it.
As long as this is happening, we are still recommending locking at this time.
Rural Development Changes!
Well after FHA released all of their changes, it was RD turn this week, so let’s go over some of them.
-As of March 27, 2013 Kuna will NOT be a RD community, unless Congress intervenes.
-RD is not increasing their upfront fee or their monthly fee, well for now that is.
-They did update their income guidelines, see flyer to the left for updates.
-RD did release a new streamline refinance program for Idaho and only 11 other states. Will definitely help get more people refinanced.
Find out more information of Rural Development Loans by CLICKING HERE!
Taxes
Many clients have been calling me, and RE agents, asking why their mortgage payment is going up.
And the only reason they are going up, atleast with my loans because I don’t do ARMS, is because of Property Taxes and here is why.
-Home values are rising, Assessor is assessing homes for higher amounts than last year.
-Homeowner’s exemption went down, so last year you could deduct $92,040 from you value, for 2012 the exemption was reduce to $83,924.
-Levy codes have increased, due to bond elections.
-Assessors have increased levy codes to make up for losses.
All of this has caused considerable jump in property taxes, and expect them to go up next year.
Buyers to Seller’s Market.
In previous blogs I have indicated that I believe March 2012 we switched from a buyer’s market to a sellers’ market.
Buyers’ market where buyers can negotiate the price down.
Seller’s market where home prices are being bided up.
So the below chart is showing that point,
March 2012, was the day!