Daily update from Clark County Lender and Mortgage Rates

Hello,

Business is booming- I swear all we need here in the NW is a little sunshine and it makes people want to buy property! I have worked on We have maintained a diversification with our lending options for investors, first time home buyers and Jumbo loans and have seen a mix of all the last couple weeks. The moratorium on foreclosure was in place from January- March so we will see more homes being foreclosed which will increase the supply of affordable homes. The last couple weeks I have seen multiple offers on housing making an assumption that the bottom has hit…. I do not feel we are there yet but for some they are picking up once in a lifetime deals. Recent borrower just had an offer accepted at $720,000 for an 8200 Sq. ft. home that sold for 1.6M 2 years ago!

It is a time to educate the buyers and have them prepared to buy as well as having the sellers qualified for their next purchase in advance. I received a phone call yesterday from a Realtor that was looking for a “Stated Income” loan for her listings owner.

Seems that a year ago the sellers mortgage broker told him they had a loan for him so he assumed nothing has changed…now an offer is on his house, appraisal completed, earnest money in play and ready to close in 15-20 days so the seller FINALLY goes to get his loan for a downsized condo and found out his brokers office is shut down and just realized his 2008 income taxes show a MUCH greater loss then in 2007 and his preferred Stated Income loan does not exist! He can sell and lease a place but losing the opportunity of the bottom of the market is not going over good with him…

After a year of the Realtor marketing this place we finally have a buyer and most likely a sell fail is not going over good with her either…. The seller is even blaming her for not communicating this with him- I feel for you Realtors as I hear all the issues from buyers and they seem to always want to blame the Realtors! What a mess!

If you have a listing and your seller has not been pre-approved I would strongly encourage them to begin that procedure. If it has been more then 3 months I would have them follow up to get an updated approval.

Market Update:

Mortgage bonds are still at highest level of the day after the Fed’s minutes released showing risk of deflation and risk were rising that the economy would worsen more then forecasted. The staff economists at the Fed lowered their forecast for economic growth this year and next, raised their forecast for unemployment, and lowered their inflation forecast.

Rates are doing well this morning. Mortgage bond prices opened slightly weaker only to turn positive extending the gains from yesterday afternoon. There is no data today. The 3 year Treasury note this afternoon received a B grade for sales. The additional debt supply hitting the market has the potential to move mortgage interest rates.

Once again expect stocks to take remain a focus. Stocks have been negative so far this week but are currently up 30 points. This will be a short trading week with the bond market closing early Thursday and the entire day Friday. Trading conditions will likely be thin as we head towards the extended holiday weekend.

As always, with so much uncertainty caution is the key. We remain positive right now which is great news. Take advantage of gains when they come your way.