RATES
Well another very volatile week in rates, with rates worsening over the week, only calming down on Friday, after one heck of a ride on Thursday.
So what happened this week, well it was all about the numbers, and most of the numbers came in pretty good.
-Pending home sales were down -0.4%, but expectations were -1.0%, so that was good.
-GDP up 1.7% on a 1.0% expectation, nice number
-FMOC minutes came out, not much change in statement, still says Fed is going to buy Mortgage Back Securities.
-Chicago PMI was good.
-ADP payroll came in higher than expected.
-Unemployment/Jobless claims came in lowest in 5 years.
So over the last week we saw rates tick up just a little, but everyone was waiting for the BLS unemployment report on Friday, and it didn’t disappoint too much.
Unemployment fell to 7.4% from 7.6%, but only created 162,000 job on an estimate of 184,000.
So after a HUGE sell of yesterday in the bond market, we got it all back today, so rates were basically where they started yesterday, and overall up for the week.
It will take a day or so to digest, so next week should be pretty bland, but we can expect rates to continue to rise, especially since unemployment did creep down to 7.4% and the Fed indicates that 6.5% is their threshold.
Still telling people to lock them as soon as they are able to, there is a greater likely hood that rates will go up, and right now a very slim to ZERO chance they will drop. We might get a quick 1 day small drop, but most traders are feeling that will continue to go up.
Home Prices
Have read a pretty good article on Home prices, link here.
Basically it is stating that home prices will start to soften (the will still go up) just not as much as they have been.
So another reason for people to purchase homes, buying a home right now you will get a higher appreciating before the home prices start to flatten out.
Equifax
Equifax was handed a HUGE judgment in court this week, for not correcting a borrower credit report.
Although I do believe in appeal the punitive damages will be reduce, but it is still going to send shock wave through the industry. $18 million hurts!
Link to story here, well worth the view
And heck, might be a new revenue stream for Ambulance Chasing Attorneys, and a good source of income if your credit report is bad.
Deed of Trust, kind of Scam.
Recently some of my borrowers have been solicited in the mail, for $80, this company will provide a copy of their Deed of Trust.
In speaking with some people in the industry, they are providing a service, and charging $80, but really…..
A borrower is provided a Deed of Trust when they sign for the loan, although it does not have the Recorded stamp at the top.
But all title companies will get them a copy of the Recorded Deed of Trust for FREE, and I can even get them it for FREE. Or they can go down to the recorder’s office and get one for FREE.
So I am not the legal authority to say if this is a scam or not, you be the judge.
If you would like a copy of the letter give me a ring.
So warn you borrowers about these letters!!!!!!