With weekly updates on Mortgage Interest Rates and other information in my blog there is something for everyone. So please feel free to follow me on this blog or any number of social media sites that I have available for my clients. Bill Yarnall Realty is all about staying connected and up-to-date on the latest trends, market statistics, and the information that is actually useful when buying or selling your home.
Interested in buying, selling, investing in Real Estate talk to me first at 727-209-7994 or check out my website at http://wyarnall.kwrealty.com/.
With that being said here is the information I promised you:
What Happened Last Week??
Last week was quite a rollercoaster for rates and gave a lot of concern to those of us in Home Lending with so much uncertainty as to when or how the Feds will “taper” their QE.
We also had a mixed bag of news from the existing homes sales being stronger than expected and new home sales weaker. In the end the Fed made a comment that they can “afford to be deliberate” about the timing of when they reduce their monthly bond purchases which caused a small rally that actually produced slightly lower rates on Friday.
What Will Happen This Week??
There is a lot of Financial news to come this week. We have some big-time economic reports. There will be Treasury Auctions and more Press Talk from the Fed. Durable Goods Orders were much weaker than expected this morning which is positive for MBS (Mortgage Backed Securities). So keep an eye on the news throughout the week. Of particular interest to Realtors will be the Pending Homes Sales Report due to be released on Wednesday at 10am EST.
Bottom Line??
This week could see another choppy ride in some muddy waters. If the signs of economic improvements continue during the next few days we could spur more concerns and talk about this whole tapering malarkey and see another hike. If that is likely it makes sense for buyers to lock now. As the week progresses and we see bad economic news and signs growth is faltering we might see a slight drop. Just remember rates go up a heck of a lot quicker than they ever come down. Ever seen a child lose a helium filled balloon?
As always, have your buyers talk to a Mortgage Professional to see if it makes any sense to risk waiting based on their own unique situation.
Meanwhile – as most of you will know I have been saying it is only a matter of time before we see a return of Subprime Lending. Last week we saw some news that HUD might actually be heading down that road. In fact quite a few Realtors asked me about the new FHA guidelines so I thought I would share them with you.
The FHA has recently released information that they have now shortened the waiting period after a foreclosure, short sale, or bankruptcy for a prospective buyer to qualify for an FHA insured home loan. The waiting period used to be 2 years for bankruptcy and 3 years for either a foreclosure or a short sale. Now, if your buyer can show evidence that they had experienced an "Economic Event" (any occurrence beyond the borrower's control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower's Household Income of 20% or more for a period of at least 6 months) they may be eligible earlier to re-enter the home buying market.
This change isn't going to help everyone who had a bankruptcy, short sale, or foreclosure - but it certainly does help increase the buyer pool. However, please note that not all Lenders will offer this help to Buyers. In fact most lenders will find the appetite for these loans very scarce on the Secondary Market until results can be gauged. That means that each Lender will likely have overlays on their guidelines and your buyers may still have to wait.
Information courtesy of Craig Inglis | Senior Loan Officer with Van Dyke Mortgage Corporation.
No comments:
Post a Comment