RATES Drop!

Today we saw the largest rate drop I have witnessed as an originator.

Unbelievable - in my head I cannot comprehend this usually banks will give back only a little at a time. Or is it just a coincidence that 30 days ago rates were at their lowest then the banks raised rates due to high volumes of loan applications then continued to raise rates to show Mr. Bernanke who wags the Dog?

One Quarter of a point down to 5.75% on a 30 year fixed Not bad. Not Bad at all. For those who are looking to get into a home the next 27 days will be one of the best windows for you to write a purchase agreement. When the Fed meets we will be faced with similar trends - and at that point the trend will not be your friend. UP UP UP - so commit now!!! I'm sure there is a drummer in West Des Moines that has heard similar voices in his head but today we talk about home buying not relationships.

It's only Thursday - chances are rates may tick up a little tomorrow as the banks hedge on the weekend but my call for next week is "Hang On".

Are we having fun yet?

sk

POLK COUNTY

Just the other day I was talking with a good friend who spoke so highly of where she lives. It hit me right in the middle of the conversation, how much she loves the Urbania of her life. She loves the schools, her friends, neighbors, just everything about it. And I thought to myself. . .what a great reflection of her as a person. Good people make good friends, make good neighbors, make good barbecue parties, make good networking agents of change. Children become friends, memories are established, time spent together is not wasted but invested for future reference maybe on a day that isn't as nice or cheerful. So to my friends across the business globe may you see yourselves as a reflection of the reason why I love Polk County. It's a great place to live, a great place to do business and a great place to chill out! Thanks for just being you!

I'm here to help 515-554-7072 just give me a call.

sk

Sea Sick in the Ocean of Finance

Up and Down - Down and Up: Some days I feel like throwing my head over the side of this ship and just loosing it all! I'm thinking that Sea Sickness was designed by the higher power to give us a real life experience to relate to emotionally when we get there.

So that is the report today Up and Down, Down and Up! After a crazy market yesterday with the interest rates changing 3 times going higher we have a little bit of a pull back in the market today. As always just like at the gas pump, you will see the big bank take a lot and give back a little at a time.

BIGGER NEWS TODAY! As big as tracking rates can get here is the latest breaking on lending guidelines. Freddie Mac is cutting back to 97% Loan to Value on loans or less. Now talk about the trend not being your friend. To all of my Realtor friends out there reading this blog- the day has come...the market is continuing to shrink the pool of available buyers. You need to understand FHA lending, how it works and what the basics are that will let you get people into homes that won't be able to through the regular lending channels. Call me and I will take 15 minutes to help you understand the power of FHA in your sales toolbox. 515-554-7072

Let me help you get comfortable in the discovery process with your clients. Learn how to ask and what to look for in this simple 3 step process. Save money for the buyer and the seller in your transactions and learn how listing agents will love the offers you present. Beat out the competition with ONE simple calculation that is a win win for everyone.

As always - I am just here to help. . .sk

Higher Rates with Rate Cuts

Interest rates: "The new conundrum when Alan Greenspan hiked short-term rates, long-term rates barely moved. Ben Bernanke is cutting interest rates but bond yields are rising." (Rates are going UP!)

To put that in perspective, bond yields rose more in one month while the Fed was cutting rates than they did during the two years that the Fed boosted rates by 4.25 percentage points.

Shopper look out the news is telling you that rates are being cut. But when you call you find rates higher today than where they were last July!

Good news or Bad news - I'm Thinkin' Johnny First Time Homebuyer is not going to like the 7% 30 yr fixed 100% loan. And remember the nasty Adjustable Rate Mortgage. . .the loan product that everyone is refinancing out of????? You know the villain of the Mortgage Products Mr. ARM he's back 5.125% on the 5/1 and 5.25% on the 7/1 ARM.

I'm just here to help others see inside this little section of the world we live in called Mortgages. That's all I'm sayin'!

sk

My Community Mortgage VS FHA

The Good ol' Days: Blogs may contain information for years to come about the good old days of a 562 credit score getting 100% financing with discounted mortgage insurance. In the summer of 2006 I originated a loan with this exact situation offering a 30 yr fixed loan at 5.875%. I was the rock star!

Reality: Today the only product that resembles that is an FHA Loan with down payment assistance. Only if it qualifies through the Automated System. Current Market Rate? At Wells you can get it for 6.5% to 7% depending on loan size. At Allied I would be able to offer 5.875% if the loan amount was over 100K. The My Community Loan product is still available but with the current changes a 562 credit score would not qualify for 100% financing or the mortgage insurance that would be necessary to help someone get into the loan. And the interest rate would be over 7%. Isn't this great?

I know you don't doubt the reality of the mortgage meltdown and the changes in lending. You really do need to work with a Mortgage professional that has researched and been educated on the current programs that are available in lending.

The Good Old Days: Gas $1.14 per gallon. Reality: $3.04

I'm just here to give you an inside look at lending.
sk

Market Looks for New Low (higher rates)

Bad News for Buyers this week as the markets continued to be unsteady. Trying to find the bottom or the top depending on how you look at it. How high will rates go? Well, as the trusted advisor once said...the crystal ball just fell off of the desk. Fridays session opened about the same after a fair improvement on Thursday.


Bottom Line for Buyer 10 Down: Rates are starting to settle having found 6% as the new ceiling for how high rates may go. There are deals to be found, but it won't be in the 30 year fixed market.


Bottom Line for Buyer 0 Down: Call me about the latest 100% financing craze that will save you a ton of money. 515-554-7072


I'm thinkin' this is going to get fun!