Rates
Well it is all about Europe and Rates and their influence.
This week we still had some influence on Russia and what they are doing, but the real headline is the European Central Bank and them proposing their own Qualitative Easing.
The US did a QE 1, 2 & 3, purchasing bonds to keep rates low and trying to prop up the US economy. With QE 3 being about mortgage rates.
Well the ECB suggested last week that they will look into a bond buying program. And do you think they will buy Greece Bonds, or Italian bonds, NOPE. More than likely they will purchase German and US bonds!
So US bonds this week rallied and wiped out all negative rates increases last week, and now we are seeing the best rates since OCTOBER!!!!
Not going to go much into US numbers today, although we did see 1st time unemployment dip to 297,000, and all other economic news was pretty good.
Right now it is all about Europe.
So I am back to a neutral standpoint on locking, typically I would say float, but bonds are WAY over bought right now and could dump anytime, and when they do what out, I suspect we will/could see a .25 to .50 rate increase in a matter of days.
FHA News
FHA is going to release a pretty cool program in the coming months called HAWK, or Homeowners Armed With Knowledge.
So this will be for 1st Time Home Buyers, and if they take approved counseling they will receive a .50 reduction on their Up Front Mortgage Insurance and a .10 reduction on their Monthly Mortgage insurance.
And then after making on time payment for 24 months they will receive another .15 reduction on their Monthly MI payment.
More news coming out and of course the devil will be in the details, but some positive trends.
Lenders Loosening Guidelines
If you have clients in the past that didn’t qualify, you may want to re-contact them, lenders are loosening guidelines, almost each day, as the number of credit application for home loans is declining.
Lots of 100% financing available.
FICO score down to 550, yep you heard me right, have money down, FHA may take your score down to a 550.
Closing costs assistance and downpayment assistance.
Mortgage Insurance.
Called client up this week, it has been 24 months since I did their home loan, to ask them if they needed help removing their Mortgage Insurance.
Of course they did, but I also asked them if they had any friend or family that needed help as well.
Well come to find out that their Mother is moving to Idaho and needs a Realtor and a Lender.
So looked back in my file, found the Realtor who help them originally and they get that lead and I got the loan.
But I also told the Realtor that they should of followed up with their clients sooner, they could of lost this deal.
Time to call your clients!!!!!!