Rates
Well once again, the rates have continues their march towards th 5% mark last week. Economic news out of the US and now more good economic news out of the EU is causing rates to climb.
This week we say the EU officially come out of their recession, alghough we did get some news from the PIIGS, specifically Greece, indicating that Greece is needing to cut more government jobs in order to get more of the EU's bail out money.
Last week for the US, pretty much all the numbers were very good.
-1st Time unemployment numbers came in sub 320,000, lowest in 6 years, and each week the report is coming out with a smaller and smaller number. Watch out when we break into the 200K level!
-Consumer inflation and producer inflation came in tame again, good news for the economy.
-Retail sales came in close to expectations 0.2% vs 0.3%, but last months were revised from 0.4% to 0.6%
So all of this good news sent people out of bonds this last week, pushing interest rates to their highest levels of 2013.
Once again, don't try to float this market, lock them when you can!
ARM's
Lots of local and national news regarding ARM loans from lenders, and the main reason is to hook line and sinker a person it a low interest rate, making them feel good about their loan...well for today. But lenders like ARM's because they make more money in the future. Don't get them wrong, lenders are not looking out for the borrower, they are looking out for their bottom line.
I also recently say a lender tout that ARM loans are safe because the chance of them going up was little. So let me get on my soap box:
ARM have their place in lender, for the Investory that is going to flip the house and for the banks to make profits.
ARM for primary residences are NOT a wise choice.
And to the lender out there stating that interest rates are not rising or are rising slowly, what crack are you on...look at the above chart, fact don't lie.
And to all those people that were told, hey you can always refinace out of the ARM later, you might want to speak with those MILLIONS of people that got ARM loans back in 2004-2007 that are now foreclosed upon.
My recommendation, DO NOT DO ARM LOANS.
Rural Development
Don't tell me I didn't warn you, RD is tenative going to kick KUNA and RIGBY out of the program, September 30th. That is unless Congress intervenes, again for the 3rd time...????
Personal Property
Please ensure that when writing a purchase contract, and that there are personal items listed, such as a above ground pool, hot tub, riding lawn mower, that you indicate that these items have no value.
UW can/may/probably will intreprete these items as a seller concessions if that language is not put in the contract. Which means you could have to get a value set for the property.
High value items can be looked upon as an enticement, and enticements can be bad