Rates
HOLY COW!!!!!
Well as indicated, if UK exited the EU, we would see crash of stocks and a rally towards bonds, and this is what we are seeing today. Pretty much a world wide blood bath.
Mortgage Bonds have improved, significantly overnight and thorough out today, this will, if the trend holds true, to a major movement in mortgage rates in the coming weeks. Typically when we see huge improvements in Bonds, lenders will give it a couple of days to simmer. In this case, they are going to wait over the weekend.
We have seen mortgage rates improve today, over yesterday, but lenders are holding back to see if markets will calm down and give back some of the improvements. If we see more negative movement in Stocks and positive movement in bonds over the weekend, I suspect either Monday or Tuesday lender will start loosening up rates.
Now the big questions, could we see govie rates into the 3.00 range and conventional in the 3.25% range, or lower???
That is a great question, I believe lenders and traders will wait a little more to see if the Federal Reserve is going to step in or other Central Banks. But the odds are in favor or rates dipping into the low 3’s and do we dare say it, 2’s!!!!!
Right now we are in a floating mode for those gamblers, while some people are locking, i.e. taking their winnings off the table, depending upon what happens over the weekend could trend rates even lower.
Our next major economic news will be unemployment, which I believe will be July 8th, if we see another crappy report, like last month, then watch out, stocks will tank and bonds will rally and we could see those rates into the 2’s!
IHA and Down Payment Assistant 2nd Mortgage
IHA will no longer offer Down Payment 2nd mortgage for anyone below a 680 FICO score, so for those people who were getting the First Loan Plus, with a 620 FICO score, and getting the 30 year 2nd mortgage for down payment, life will end on 6/30/2016.
If you have clients in that boat, get the file automated underwritten and LOCKED with IHA no later than June 30th.
Flyer for new program is here: Click Here
And new YouTube Video here: https://youtu.be/haKqwolE5MY
Trending Credit Reports
Trending credit report is the new way Conventional financing is going to be underwritten, I have spoke about it in past blogs. This is where a borrowers revolving credit is going to be scrutinized for the last 24 homes, and those buyers carrying high balances and only making minimum payments are going to get denied more and more.
Well Fannie Mae is going to delay the roll out, it was suppose to roll out tomorrow 6/25, but looks like it will be delayed until September 25, so there is still time.
One negative ramification of this new credit report is they are going to cost LOTS MORE, and when I say lots, I mean we could see credit reports in the $100 range. OUCH!!!!