Well another week and another rise in mortgage rates, this week we have seen pretty close to another .125% increase on mortgage rates, as more and more traders are preparing for the all but certain, rate hike in December.
We also have seen some word out of OPEC that OPEC and Russia may make agreements to cap oil, this is also affecting rates, causing them to go higher and traders take their money out of safe havens like bonds and put them into oil and oil companies.
Then today, we also had word from Janet Yellen, that there is some concern about inflation in the market, thus putting more fuel on the fire that they are going to increase rates.
The traders feel that rates are going to go up, the big question is how fast. And that is the concern. Traders do not want to be stuck with low bonds if the Fed is increasing the rates.
We are still in a locking mode as soon as you are able to. Too much volatility right now, heading upward, to gamble.
But for those gamblers, some of the talking heads are anticipating mortgage rates to dip, albeit temporarily for the few weeks following the December Fed Hike. This happened last December as well, rates dropped, when the Fed Hike rates, but only because the stock market took a dip and traders put their money into bonds for safe haven.
New Area code
Have you heard, Idaho is running out of 208 area code, and beginning really soon, we will have a new area code, 986. So who will get the new area code? Well it won’t be based on Geography, it will be based on getting a new number. Yep, anyone in Idaho, who gets a new phone number on August 5th, 2017.
But beginning November 5th, 2016, you will be able to dial using the 7 digit code OR the 10 digit code, example, to call me, you can dial 375-5626 or 208-375-5626.
But Beginning August 5th, 2017, you will HAVE TO dial 208-375-5626. This will go for ALL of Idaho.
So what the heck should you do to prepare:
-Make sure all of your business cards, web sites, brochures, lock boxes, MLS listings, Facebook pages, have your phone number with the 208 in it.
-Electronic devices, such as security systems, FAX machines, multi-line phones, should be programmed for the new 10 digit phone numbers.
New 1003 loan application
A couple of weeks ago, I indicated that Fannie & Freddie are going to roll out a new loan application, from a 4 page application for 2 borrowers, to a 8 page application PER borrower.
They indicated that it would go into affect on January 1st, 2018. Well, the government, that is the CFPB, had decided to let them roll it out sooner, as in January 1st, 2017. Which have lenders scrambling to get their software updated. Awesome, just what we need, more paperwork and delays….more news to come.
And speaking of the CFPB
Well a District Appeals Court out of Washington DC just handed down a ruling that basically says the CFPB is an illegal entity and has to be change. They have way too much power and their power violates the US Constitution. Link to a pretty good article is here. But the really good news is to a Lender called PHH, who was sued by the CFPB and fined $100+ Million. The Court said they don’t have to pay!