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Mortgage Market Update

click for larger imageThe rate markets are under pressure again this morning. The recent spike in interest rates adds more confirmation to our forecasts that the lows in the interest rates markets are now in place and rates are unlikely to fall to new lows. The recent stampede to the safety of US treasuries became excessive; the run down in rates was mostly in treasuries but mortgage rates benefited as the outlook for the US economy hit new lows in July and August. A lot of concern the US economy would double dip and fall back into text book recession sent investors, both domestic and foreign, to the safety of bonds.  There just isn't much room left for improvement, but a lot of room for rate to go up.  I would Strongly advise capitalzing while you can.

Want to know more on how the Mortgage Market directly effects mortgage rates or need an explanation of the candlestick chart above? Send us an email and we'll gladly provide an in depth article.  Realtors, ask about a detailed presentation on the Mortgage Market at your next office meeting.

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Main | Buying a Home in 2011 ~ What You Need to Know »
Wednesday
Mar302011

Good News - Bad News ... FHA changes again!

DateWednesday, March 30, 2011 at 10:00AM

FHA is undoubtedly the most popular financing program for today’s homebuyers.  It’s the “go to” loan for first time homebuyers,  growing families and empty nesters alike.  Over the past 2 years there have been many changes to the face of FHA financing … unfortunately few of those changes have been in the favor of a potential home buyer.  Hmmmm, something’s wrong with that picture on many levels.

So, today I bring good news and bad news.

First, the bad news … FHA is changing their private mortgage insurance requirements once again.  The current FHA PMI is .9% of the loan amount.  That .9% is now increasing to 1.15%.  Please refrain from throwing rotten food my way … it wasn’t my idea folks!  (Putting that into perspective, on a purchase price of $163,000 your monthly mortgage payment will increase by $33).

Now, the good news … you have time to lock in on the lower FHA private mortgage insurance, but you have to hurry.  If a home buyer writes a purchase contract and the lender orders the FHA case number prior to April 18, 2011, then you save some moo-lahhh!  Yeah for the green!  I’m a woman and I like to put that into perspective like this … I can get approximately $6,500 more in beautiful upgrades like hard wood floors and granite counter tops in exchange for the $33 per month increase by beating the April 18th deadline.  Yeah for beautiful homes!

And because I love to be the bearer of good news (and my ability to give good news seems to be rather limited in today’s mortgage market), I’m throwing in some more good news … lock a loan with me prior to April 18th and I will provide a beautiful new wall hanging for your dining room wall as a house warming gift.  Now the ladies are ready to find a house with the perfect dining room to accommodate the wall hanging … it’s a total win-win!



AuthorPamela Crim | Comments Off |

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