Rates
Well ouch!
Rates pushed up again this week, with the standard 30 year mortgage going from the low 4’s to the mid 4’s this week.
FHA loans will probably get into the 4’s in the next 2 week as thing are starting to focus more and more on the US economy and less and less on the Russian issues.
This week economic news was all pretty dang good:
-Philly Fed MFG 27.54 vs est. of 16
-Inflation still extremely tame, PPI 0.0% and CPI at 0.0% vs est. of 0.2%
-Homebuilder Sentiment 59 vs est. 56
-Weekly jobless claims 280K vs est. 305K, which is lowest number in 7 years, as I have been saying for quite a long time, watch rates when jobless claims go under 300K.
-Building permits 998K vs est. of 1.045M, but winter is coming.
-Housing starts 956K vs est. of 1.040M, rates going up and higher home prices having an impact.
And then we had the Fed Speak this week, still keeping rates on the Fed Fund at ZERO, but 2 people voted for rate increases and 7 voted against it, we are starting to see economic news push Fed Governors to considering making changes.
Also, October the Federal Reserve will no longer be purchasing Mortgage Back Securities, which means the Government artificially pushing down Mortgage Rates will end, we do anticipate rate to go up next month.
So as I stressed a few months ago, repeat after me “6% is not a bad rate”
Rural Development
Don’t forget RD will change their monthly mortgage insurance from .40% to .50% on October 1st.
And the RD maps are changing, won’t know exact changes until October 1st, so watch out, we don’t anticipate any major changes in the Treasure Valley, but there could be in other parts of the state.
RD is still 100% financing, Will go down to a 580 FICO score, and seller can pay up to 6% towards down payment and closing costs, and even rate buy downs! Rates currently in the high 3’s
Also Don’t Forget:
-Fannie Mae is discontinuing HomePath Financing as of 10/16/2014, but don’t fret, Idaho Housing’s HFA Preferred Loan is SIGNIFICANTLY better and Idaho Housing has Down Payment Assistance.
-<10 months before the New Good Faith Estimate rolls out, Biggest Change, no more same day closings, Borrowers HAVE TO WAIT 3 business days after receiving the docs before they can fund!
-Fannie Mae Conventional will no longer allow for purchase of a new home <2 years out of short sale, you now have to wait 4 years, but FHA will allow for 3 years.
-New Products Coming out:
-FHA One Time Close Construction Loans
-VA One Time Close Construction Loans.