Rates
Well as expected rates ticked up this week, as there was pretty much no bad economic news and all good economic news this week.
June Housing States 1.189M vs est. of 1.170M
Building permits 1.153M vs est. of 1.150M
Weekly Jobless Claims 253,000 vs est. of 265,000
June existing home sales 5.57M vs est. of 5.48M
This caused rates to trade in a very narrow band, but still ticked up a little, we are seeing Conventonal rates in the Mid 3’s and Government still in the low 3’s.
Next week, we will have GDP, Consumer Confidence, and ISM, which should all move rates, it is anticipated higher.
Locking rates would be a good idea, there is nothing on the calendar that would suggest rates will dip again, we do need to watch Oil, some concern it could run below $40/barrel, which would be good for mortgage rates.
HomeReady mortgage from Fannie Mae
Fannie updated their HomeReady mortgage on 7/16/2016. This is a pretty good program for first & 2nd time home buyers who don’t want to put along of money down.
Some of the points of interest:
-3% down payment required
-Income restricted
-Homeownership education required.
-Non-Occupying borrower’s income allowed.
-Non-borrower, occupying income allowed:
This is pretty cool, say Husband has good credit, but wife has horrible credit, in this program we CAN use the wife’s income to qualify, not have her on the loan, and we don’t have to worry about her credit!!!
-Border income, say borrower is going to rent out a room to friend, we can utilize that rent income and qualifying income.
-Mortgage insurance is reduced for this loan as well.
This program is great for the 1st time home buyer, who doesn’t want to pay the higher costs of a FHA mortgage.
Link to Flyer HERE