Rates
Well we started off the week with rates continuing their trend lower, but that stopped on Wednesday and after all is said and done, rates will worsen this week.
Let’s look at the numbers:
-Consumer Price Index, inflation, which is bad for mortgage rates, rose just slightly, not enough to cause a scare, but enough to take notice. 0.2% vs est. of 0.1%
-February New home sales finally broke the 500K mark for first time in forever, at 539,000 vs. est of 470,000’
-Durable goods was down -0.4% vs est. of 0.3%, was a head scratcher, and some are blaming the weather again, but if this report comes in negative next month people might start being concern.
-Weekly jobless claims 282K vs est. of 290K, number keeps dropping, which is good for the economy but bad for mortgage rates.
So the economic news this week as all good, main reason why mortgage rates rose. We also had the Federal Reserve sell more US debt this week. This was in the form of a 7 year and 5 year auction, and there really wasn’t much demand, i.e. no-one wanted to buy US debt.
This caused people to also sell other debt, i.e. Mortgage Back Securities, thus causing rates to rise.
Next week is a volatile week, we have Unemployment numbers coming out, and that has REALLY tanked rates the previous 3 months.
And we have Personal income and Personal spending next week also.
I suspect a good jobs numbers, which will translate to higher mortgage rates.
Lock’em!
VA appraisal changes
VA loans/underwriters are now requiring all addendums that were signed after the appraisal has been complete, to be reviewed by the appraiser.
So if you do an addendum, say at closing, with the seller either paying for additional buyer items, or giving the buyer an additional credit. That addendum will have to be reviewed by the appraiser, and the appraisal updated.
This could take an additional 3 days and delay fundings.
Rule of thumb, don’t wait to do addendums the last week, it will cause delays.
And this will also affect the new CD and LE going into affect on 8/1/2015. If there is an addendum t that affects what the buyer may or may not be paying, it could cause a new LE to be disclosed, which would cause a MINIMUM of 6 business day delay.
Solar Panels
As solar panels become more and more main stream, it is cropping up a whole new bunch of issues.
Are the solar panels the only form of electricity being supplied to the home, if so, FHA/VA/RD will not allow for a loan on that home. Common for cabins to have the only source, but we are seeing people cut the cord from Idaho Power on in town homes as well.
Are the solar panels paid for or are they leased?
If they are leased, then the new buyer either has to take on that lease, which means a lender has to debt to income qualify the borrower for that lease.
OR that lease needs to be paid in full by the seller, do they have enough equity in the home to pay for it?
Lead Generator
Have you sponsored your HOA newsletter yet?
Contact your HOA management company, and tell them that you want to sponsor their news letter, but either having your info on the news letter or by placing a flyer in the envelope.
Tell them you will even stuff the envelopes.
Now you have a specific marketing flyer, that is guaranteed to be opened by each and every home owner in the neighborhood.
This is SIGNIFICANTLY better than a generic mail, which typically gets thrown away as junk mail.