Weekly Updates from Tom
As always, email tom@afirealestate.com to continue the discussion. We look forward to hearing from you.
Mortgage Rates are down a little bit this week BUT today and yesterday have both seen a slight trend upward (which the press hasn’t mentioned) trend mainly due to weaknesses shown in the Jobs report.
The DOW stock average managed to end at 8017 for the first time since early January. Maybe Consumer/Investor Confidence is strenghthening..
The FASB passed an improved version of the Mark-to-Market accounting rule. The previous version required/encouraged many banks to book writedowns of assets to a greater amount than logic would have required. Some logic has been put back into the system and now some of those banks will be able to reverse some/most of the overly conservative writeoffs taken earlier. Hopefully these will be truly realistic changes and profits will re-enter the picture.
The Obama Cap-and-Trade proposal collapsed in the US Senate due to the realization that this would result in ‘an enormous tax on economic output’. It was realized that additional taxes are not what is needed to get us out of this recession.
This coming week – Wednesday – the minutes from the FED meeting 3 weeks ago are released. This can be a non-event or cause market concern. And on Thursday Larry Summers, the chief architect of the Obama economic plan gives a speech to the Economic Club of Washington. If the tilt is positive then the market rally may continue..
These are interesting times …….
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If you are having clients ask you about whether they qualify for any of the Federal Mortgage Benefits I can send you an analysis I compiled from a variety of sources to help give people some guidance.
Remember that FHA loans are now available up to $729,750 with a down payment of only 3.5% (the lowest downpayment available in the market). Keep this in mind as Open House visitors ask about possibilities.
I am firmly convinced that 3 years from now we will look back and “What a Great Opportunity 2009 was. Interest rates were low and property values were very affordable.”
Please remember that I am available if you get an offer on one of your listings that you would like me to review the ‘mortgage approval’ letter that comes with it. Some lenders have closed their doors and the letters out there are truly not worth the paper they are written on. This review is another step to protect your sellers from having the property tied up in an offer that has little chance of closing.
These quoted rates are for Full Doc Purchase transactions with either no prepay penalties or a 1 year penalty and good credit. Rate ranges are shown when LTV and/or credit scores and/or loan size affects the rates offered; I hope this makes sense bacause rates at 900K are different form 700K and also from 600K:
o 30 year Jumbo fixed 6.5 to 6.875% at 1. point
o 10 year (then ARM) Jumbo- 6.0 to 6.25% at 1.0 Point
o 5 year (then ARM) Interest Only Jumbo-5.75 to 6.0% at no point
o 30 year Conforming-Jumbo fixed 5.00% at 1 point (Up to $625,500)
o 30 year Conforming fixed 4.875% at 1 point (Up to $417,000)