Rates
WOW what a note so good week for the US economy, and thus the stock market tanked and mortgage rates for Idaho are at their BEST levels since May 8th of this year.
So what the heck happened, well 1st of all nothing from overseas, it was all about US numbers this week:
- August Pending Home Sales -1.4% vs est. 0.5%
- Consumer Confidence 103.0 vs est. 96.0, huge positive number, but not enough.
- ADP private payroll 200,000 vs est. of 190,000, good number.
- Chicago PMI 48.7 vs est. of 53.6, below 50 = BAD
- Unemployment 277,000 vs est. 272,000 higher, but still below 280,000
- ISM manufacturing 50.2 vs est. 50.6, closing to that 50 mark and has fallen for the 3rd time in a row.
And the biggy for the month, Non-Farm Payroll 142,000 vs est. of 203,000 AND August was revised down 37,000 and July revised down 22,000.
Traders were really shocked by the payroll coming in so loan and the revisions down of the past 2 months.
This caused stocks to sell off early and bonds (mortgage rates) to go down.
These is some concern now that the economy may be heading for a slow down in the coming months. This week we have seen interest rates improve each day with a bid one today. Although we have seen a little pull back in late trading with the stock market now up and the bond market giving back gains.
We have some more economic news out next week for everyone to digest, but the consensus is that the Fed, with these new round of numbers, may not hike interest rates this year.
Floating your rate for now, for the gambler.
Homeowners Exemption for 2015
In case you missed it, Idaho has deemed 2015 Home Owners exemption to be $94,745, quite a jump from 2014.
This means anyone's home who assesses for over $191,490, will get the full $94,745 Idaho Excemption, anyone less than $191,490, will receive the 50% calculaton.
Might be a good opportunity to call all of your clients which you sold a home to in 2015 and make sure they filed for their Home Owner’s Exemption!!!
Slowing Down
Yep, you heard me right, slowing down in the Treasure Valley (Boise, Kuna, Meridian, Eagle, Nampa, Caldwell), well I don’t know how this can be, because the stats I looked at show a shortage of homes, but it seems that the Builders are slowing down. I can’t read a web article or pick up a newspaper without seeing builders paying closing costs or giving some sort of discounts to entice new buyers.
I decided to start asking around and found out hte reason, well from my conservations with industry leaders, buyers are frustrated with the long build times and Builders are raised prices too high, too fast. Very interesting.
We are also starting to see home prices plateau on certain price categories, not saying we are seeing a price dip, but maybe just less and less of increases.
TRID is HERE
And finally, don’t forget, the New Truth in Lending Integrated Disclosure in released Saturday night at Midnight!
Communications between lender and Realtor is going to be KEY in keeping your transaction on track.
The Loan Estimator needs to be to the borrower with in 3 days of getting the Magic 6 items.
The Closing Disclosure has to be in the borrowers hands 3 days before consummation.
Also, don’t forget to know your Idaho Realtor License numbers, you will need to know these so title company can put them on the Closing Disclosure, required by the CFPB.
TRID and Title Insurance
Well it seems that the CFPB didn’t get title insurance correct for the new Loan Estimator and Closing Disclosures. Have been pounding my head against the wall all week trying how to property disclose Owner’s Policy and Lender’s Policy, and as of today we still don’t know. Here is an article that explains it in little more detail:
http://www.housingwire.com/articles/35023-alta-this-is-where-the-cfpb-got-title-insurance-wrong-with-trid?eid=311700059&bid=1193364
But this is going to be a HUGE headache!!!!