Rates
Well we saw, finally, a VERY nice improvement in rates this week, all because the Federal Reserve for stalled the inevitable.
Federal reserve came out of Wednesday, indicating that they would not raise rates This month. And that is the key, this month.
The Fed also came out and lowered economic forecast for the US economy.
These two items caused the Bond market to rally, A LOT, thus improving interest rage by atleast .25 of a point in some cased, taking conventional down to 4.50 or less and Govies are teetering on the 4.25% to 4.125%
It was a nice pop for rates, after 8+ weeks of rates driving upward. BUT….
Some key items were indicated with rates:
1-Rates did not erase all of their loss for the last 8 weeks, that tells us that traders are just thinking this is temporary.
2-The Fed did indicate that they can and will remove the QE easing at any time, it doesn’t have to happen at a meeting, i.e. their next meeting is in December, but they could decide sooner.
So most people, self-included, feel that this is a temporary dip in rates, so take advantage of them.
BUT….
Although most economic news that has been coming out has been good to pretty good, the focus will continue on Jobs, but now Congress is going to step in.
With all the bickering going on in Congress, it is pretty much a lock that the government is going to shut down on October 1st. As long as this is true, investors will continue to go towards Bonds.
But in a few more weeks, the US will be coming upon the Debt Ceiling, which last time, caused bond traders to sell off and go into commodities.
Basically right now there is WAY too much volatility in the market to sway me either way. So holding a neutral stance at this time.
New Idaho Housing Program
GREAT news, IHA has released another 100% financing program, that will allow IHA to Gift up to 2% of the borrower down payment.
That’s right GIFT, which means they DO NOT have to pay it back!!!!
Then in the case of FHA, which require 3.5% down, IHA will allow the borrower to get the remaining 1.5% from IHA Good Reward Down Payment Assistance, which mean a very small 2nd Mortgage.
AND to make it even better:
IHA has reduce the FICO score requirement for their Downpayment 2nd from a 680 FICO score down to a 620 FICO score!
AND to make it even better:
IHA will pay 0.5% of the buyers closing costs!
So to put this into perspective:
Purchase Price of $120,000.00
Required down payment for FHA = $4199.
IHA will GIFT the borrower $2400.00
IHA will do a 2nd mortgage for $1799.00
IHA will pay $600 of the buyer closing costs.
Interest rate today in the VERY low 4’s
Continuing Education for CE credit
1st Choice is proud to announce that we are IREC certified to teach Continuing Education coursed for CE credits for Realtors!
My 1st Class will be 10/10/2013 from 11:30 to 3:00 PM
Lending in 2013-Updated rule changes and their effect on agents
(Course Approval #E1044)
Register here: https://www.titleonecorp.com/productsandservices/continuinged_registration.aspx?class=68