Rates
Rates finally took a breather over the last 7 days, with rates sinking just a little, in some cases improving by .125%.
First reason why is the PIIGS are back in the news, Italy had parliament and a PM election last week, and the status quo was re-elected. Thus no changes in their monetary policies, so their economy is still in the pits!
Next was the US government trying to cut our economy to shreds by hacking off $85Billion in one fell swoop. Now don’t get me wrong, we definitely need to reign in spending, but all at once, ouch.
So this has caused rates to dip a little. But technically it was a really good week for Data:
-December Case/Shiller home price index was up 0.8% and +6.8% Y/Y!
-January new home sales, expected to be up 3.2% was up HUGE at 15.6%.
-NAR pending home sales for January expected +3.0% was up 4.5% and +9.5% Y/Y
-Weekly jobless claims, up slightly to 344,000, but it seems the new norm is the 340’s, rather than a few months ago it was 360’s. More good news, but we are still needing it to be in the 300’s range to start making a major dent in the unemployment rate.
Chart above show 7 days of green = good, and we have broken through the resistance of 103.25. Lender are holding rates slightly higher over the weekend, waiting to see what the Obama Admin will do. So Monday will probably have lots of volitility as the cuts start to take affect.
So right now we are optimistic regarding rates sliding a little bit more, but it is a cautious optimism. For the weak at hear, lock them, still a great likely hood of them going up than a major fall down. For those of you who like to gamble, let the games begin!
News from HUD!
Well we in the Real Estate World got GREAT news from HUD yesterday. Previous to 2/24/2013, all HUD foreclosed home purchases had to utilize just 1 title company, which was out of Washington State, and were not the easiest people to work with.
Beginning 2/25/2013, all HUD transaction, the buyer can select their own title company.
THIS IS AWESOME, we can use a local company that understands our market and works with us, not against us.
Looming Deadlines:
1-FHA major over hall of their program, effective 4/1/2013!
You will need to order your FHA case number BEFORE 3/29/2013, or feel the pain of FHA Tax increase.
2-Kuna loses Rural Development 3/27/2013!
I would say you would need to have your file into RD by next week if you are purchasing in KUNA.