Rates
A good week for rates, as the US is trying to bomb Syria which has caused some traders to put in a “War” trade, thus pulling out of stocks and into safe havens of the bond markets.
Most of the economic news was pretty good this week, except for pending home sales, that one kind of hit home a little hard with the consensus of a +.02% increase actually came in at -1.3%.
This was really looked upon by the talking heads because it is one of the 1st real numbers of housing after the large jump in interest rates.
Another concern this week was durable goods, supposed to be -3.0%, but came in -7.3%, big miss, and a sign of a potential slowing economy.
There is now talk about a double dip in housing, due to:
1-increase of interest rates are pushing people out of the market
2-home prices increasing so fast that it is pushing people out of the market as well.
As I explained before, I don’t know about a double dip recession in housing, but I do foresee some slowing in home prices as more and more homes are coming on the market.
With regards to interest rates, it is a very mental thing for people seeing rates jump up so fast.
But keep in mind the September 18th Federal Reserve meeting, it is expected that the Fed will announce the end to QE3, and we could get a HUGE jump in rates.
Syria will also play a wild card this week.
Don't think the risk is worth the reward, lock them if you can.
Flood Insurance
Well Congress is at it again, increasing costs to a home, this time it is Flood Insurance, it is believe that they will increase premiums again, AND also increase flood zones.
Now some of you may think that this only affects areas around the Boise River, but nooo it also affects Indian Creek, 10 Mile Creek and 5 Mile Creek.
So watch for more flood zones and increase in premiums coming to a flood zone near you!
We just caught an MLS listing that had a home close to Indian Creek, in Nampa, that had their flood map redraw in 2010 and is now in a flood zone. And the agent didn’t disclose that on the MLS listing. That would have been an expensive E and O claim.
FHA Back to Work Program.
Looks like we will have a few lenders jumping on board with FHA new Back to Work program.
FHA will allow a person who did a BK, Foreclosures, or Short sale to forgo the 3 year waiting period IF:
-The BK, FC or SS was beyond their control some samples they gave us:
Loss of job due to recession
Reduce wages due to recession
Major illness of borrower or child
Forced relocation due to recession
There will be lots of paperwork to justify the circumstances.
Re-establishment of credit and proof that circumstances won’t happen again, if with in their control.
But 96.5% financing.
We will be seeing the lenders layers being released in the next 2-3 weeks, once they do I will have a flyer for you to utilize!