Rates
Well another week and another roller coaster ride for rates, typically we do see quite a bit of volatility in rates the first week of each month, mainly because of employment numbers. And this week was no exception.
Throughout this week rates worsened, hitting some new high that we have not seen since early January.
This was mainly due to pretty good economic reports and the lack of Russia invading the Ukraine.
Chicago PMI (economic expansion) was above 50 so show positive growth.
ISM Manufacturing, 53.7, again positive, showing growth.
Construction Spending, up 0.1%, positive growth.
ADP private payroll, up 191,000, more people working.
Factory Orders up 1.6%, really good number.
Jobless claims 326,000, slowly making it to that <300K mark.
ISM Services (this is what we do, service) up to 53.1, really strong showing.
So technically rates worsened over this week.
But today, we have seen a rally in bonds, thus removing all of the rate increases for the week.
Unemployment came in at 6.7% on an estimate of 6.6%, and jobs created 192,000 vs est. of 200,000. And typically this would of caused rates to go up further, but the devil is in the details; Average hourly earnings was flat and average work week was only up 0.1 hours. And a lot of the jobs were part time jobs.
So overall not too bad, but not enough good jobs to really sustain the economy and not enough job to combat the 300,000 new unemployed people we are seeing each week.
Looks like traders were really expecting a blockbuster number, thinking that last couple of months numbers were weather related, but this number just shows that last couple of months low numbers really can’t be attributed to the weather in whole.
Got a break on rates today, but overall we are still in a upward trend on rates, in March, the bond gained 112 bps, which equates to about .125 to .25 rate increase. This follow February pretty much flat and rates improving in January.
Trend is showing rates continue to worsen, although not as much as once predicted, I still feel we will see 5%, more so mid summer now rather than late spring. And I suspect we will see the end of 4.50% rates sooner.
IHA changes
HOLY COW, Idaho Housing and Finance is going through some changed, since my last blog post, talking about IHA extension for rates costs fees, IHA has really brought out a fantastic improvement on one of their most popular programs.
IHA will now allow over premium pricing to pay for Downpayment Assistance and Closing costs Assistance.
AND they will allow it down to a 620 FICO score!!
And IHA Closing costs are only $514.00 that is all (if you lender is charging and origination fee shame on them, tell them to drop it and quit being greedy, or better yet use ME!)
Homeowner’s Exemption
Remember at the closing table, when you as a Realtor, and the Title Officer and the Lender are sitting there, and at the end you re-enforce that the clients NEED to File for their Home Owner’s exemption, and make sure they keep a copy of the exemption.
Well here is why, had a past client refer me their neighbor to refinance their home. So in doing my initial research on the home and pulling taxes, I noticed that the borrower’s home was assessed at $154,000 but their tax bill for 2013 was $3900. Now you don’t have to be a math wizard to realize something was wrong.
So the 1st think I asked them was if they filed their Homeowner’s Exemption, she said yes, and I asked her if she had a copy, and she did.
So then I had her call Canyon County Assessor, and sure enough, they didn’t have any record of it being filed, even though the borrower had a signed copy.
Borrower is going down on Monday to have a few “Words” with the county, but lets do the math.
Bought the home in 2009, has been paying over $3000/ year in taxes, so double the amount, or $1500 x 6 years = $9000.00.
Have you followed up with your clients???
This borrower has never received any follow up from her Realtor or Loan Officer, thus asking her neighbor, who does receive something from me, monthly, for a loan officer referral.
Lead Generator
Name tags, yes those little items that attach to your breast pocket and says who you are and what you do.
Now you may think this is old school, but have you ever been in Wal-Mart and someone see your name tag and asks you a question, YEP happens to me!
Also, next time you get shirts, get them embroidered with your logo and name. Cheap to do, and could be potentially tax deductible.