Interesting real estate finance and economic points to consider today. We'll try them in bullet point format:
Mortgage Rate Info
- 30-yr fixed up slightly to 4.875% for the price of an origination and normal closing costs, both conventional and FHA
- 10-yr T up to 3.78% yield after hovering near 3.6% in January
- FOMC targeted Fed Funds rate remains at 0 to 0.25% and Prime Rate at 3.25% with expectation of staying there for "an extended period", interpreted as ~6 months. FF is the rate paid when banks borrow from each other, very common.
- Fed's discount rate (emergency borrowing direct from Fed) was increased from 0.25% to 0.75%. Move had been telegraphed but came earlier than expected. Some initial volatility that has since settled.
Rate-impacting Milestones in View
- Fed purchase of MBS trickling now and ending by 3/31 - impact to rates expected by mid-March.
- FTHB Credit ending for contract dates after April 30
- FHA upfront mortgage insurance increasing from 1.75% to 2.25% (spring), FHA seller concession max dropping to 3% (summer)
- FHA loans available on "flipped houses" now.
Economy Watch for this Week
- Fed-speak every day this week with BIG days Tues (Ben B before House committee speaking on growth) and Weds/Thurs (Ben B before House committee gives semi-annual report of the Fed - Q&A Thurs)
- Treasury auctions every day adding up to $118B of T Notes plus $8B of unusual 30-yr TIPS. Could be a big impact on MBS/rates.
- Housing: Schiller Tues, new homes Weds, and existing homes Friday. Expecting some increase from December
- GDP data Friday
Beyond Conventional, FHA, and Jumbo available at Signet
- 203k renovation loans - enable construction funds to make it their dream home
- HomePath loans to 97% with no appraisal on eligible FNMA homes
- Investors may use HomePath loans with up to 90 LTV on rental purchases
- Investors with 5-10 properties are welcomed at Signet
These days, more than ever, experience counts! We look forward to working with you. Make it a great week!
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