Rates
Well for the 3rd week in a row we have seen rate improvements, with mortgage rates now as low as they were in 2014!
Once again, it was all about world economic news along with oil, causing rates to make nice improvements, but we do seem to have a bottom forming.
The US economic news was all pretty good with 4th quarter GDP hitting 0.7%, Consumer Sentiment at a 92, and not a lick of inflation anywhere with Core inflation coming in last month a 0.0%.
We also saw ADP private payroll adding 195,000 new jobs, while weekly jobless claims, new one came in at 285,000, both of these reports were pretty much in line with expectations.
And the granddaddy of the month, each and every month, government unemployment numbers, last month the US economy created 151,000 new jobs on expectation of 191,000. Now some are calling this a miss, but keep in mind, it will be adjusted, just like December was adjusted from 262,000 to 292,000.
With the US economy chugging along at a nice clip, we are hearing about potential recession lurking around the corner, and some economist are in agreement, based on past US recessions.
Recent history of recessions:
1960-1961
1969-1970
1973-1975
1981-1982
1990-1991
2001-2001
2007-2009
So 6-7 years for a recession, and that number would be 2016, how are you preparing for it?
As you can see at the chart, we have hit a bottoming effect for rates, as it will take some major economic news to move rates into the next channel, so right now I am thinking locking is the best course, take advantage of these excellent rates!
Texas closes down a Title Company
Kind of makes you think, how could someone get away with this, but a good article:
http://www.housingwire.com/articles/36196-texas-seizes-title-company-after-millions-in-customer-money-allegedly-disappears?eid=311700059&bid=1303421
Water Quality
And you think it is rough in Idaho when your well test comes back negative, just think about all those people in Flint, Michigan, yep the WHOLE TOWN. Try to get a loan there, most of my lenders have come out with memos, stating that if someone is doing a loan in Flint, Michigan, the water has to be tested, and if it comes back bad, and suitable water supply needs to be provided for the new borrowers, and that isn’t from a bottle either!!!
eClosings are coming
And if there wasn’t enough chaos in the world from TRID, the CFPB wants to roll out eClosing in some form in the coming year(s). Which mean the day and age of having the borrowers hand sign 50-60 documents will finally be over. The CFPB has been working with title companies for the last 1+ years to work on a method that will allow someone to eSign all of their closing documents, and the documents would them be electronically sent back to the lender, no more waiting for Fed Ex deliveries now! So something to be watching out for.