Earnings Reports

The stock market rallied this week on relatively good news from earnings from many sectors. Then Bank of America had their conference call and report. They lost $1 billion last quarter. The stock market did not like that news. I will take it for right now as that will buoy bonds today. We have seen profit taking the last few days in the bond market and that means higher interest rates for borrowers.
Advise for buyers or potential buyers on the fence, jump off!!! Rates will not stay at the 5-5.25% range forever. We have been here much longer than anticipated. I know getting a contract on a house right now is difficult, but perseverance and patience will ultimately pay off. Don't get out of the market, cast a wider net.

Dow Jones hits 10,000

It was a milestone day, as it has been a year since we saw the 10,000 mark. Better this time as we are on our way up and not on our way to 6500 like last year. It is a momentous occasion. The Mortgage Backed Securities market is trading lower, as the Fed notes did not give any good news and with the stock market up, there is money flowing out of bonds and into stocks. It feels almost like a normal market.
I hope that the Stock Market rally continues as there are so many people who will be relying on those funds for retirement in the near future.

35 Day Escrows~A compromise we can live with

In today's limited inventory housing market, having a close of escrow date in the not so distant future always makes a seller (whether a bank or an owner) feel better. But with the changing mortgage market and the disclosures and waiting periods being put into place by the government, accepting a contract with a 35 day escrow may save everyone multiple headaches. The new HERA/MDIA laws require a 4 day disclosure period before an appraisal can be ordered/paid for. If a buyer's agent writes a contract with a 35 day close of escrow, the first four days of the waiting period are no longer a detriment to closing on time. Agents make sure that you write the time frame to begin upon buyer's lender's receipt of fully executed written contract. Everyone is protected, and the 35 days should be a close date that everyone should be able to meet.

Happy Friday!

Mortgage Bonds had a great week and are now giving back some of the gains. That means that the amazing 5% rates we saw on Wednesday are starting to disappear. Now is a great time to purchase a home if you have been considering it. It is also a great time to refinance a FHA loan before the streamline refinance's rules change on Nov. 18. This is how you can take part in the stimulus package if you don't qualify for the other incentives out there. Lock your loan into a low fixed rate and save money, it is a great time to do it all!

$8000 Tax Credit

As of this very minute, the $8,000 tax credit for first time homebuyers expires Nov. 30, 2009. You have to close escrow and have your deed recorded by the 30th, to qualify for this credit. There is talk about extending it, but as of right now, that is not the case. If you are counting on these funds, make sure you are in contract by 10/25/09.

October Already

Really, where does the time go? I have been trying to stay in touch with my social media, but it is amazing how much there is out there; my blog, twitter, facebook, active rain, etc...I get lost in staying in touch. New month, another new commitment to myself and my business.

A New Month

August was a month of mixed emotions. As new laws change our daily lives at work, our kids return to school, and life keeps rolling by, the little tasks that you promise yourself you are going to do fall by the wayside as more important and pressing matters pop up. I am rededicating myself today to make sure I stay on top of my blog. My goal, and please help me stick to it, will be 3 times per week. So at the end of September, we will see how I have done.
In mortgage news, the bond market has had a neutral to positive day. I will take that any day of the week. Some of the economic news that came in today was very positive, but when we have been down for so long, we must remember that the numbers might not be as accurate as we would hope. Rates are still great, there is $8K on the table for a few more months for those first time homebuyers and homes are affordable...GET OUT THERE AND BUY!!!!!