PRODUCT ALERT!
Fannie Mae recently released the notes for its August DU release (when Fannie Mae makes changes to its automated underwriting system, DU, it announces the changes in advance). It appears that Fannie Mae will require 4 years to pass before someone with a short sale can qualify for a conventional loan. Currently the wait time is 2 yrs for a borrower with 20% down. It is scheduled to take place on August 16th, so all borrowers under contract by August 15th will still be able to close with just 2 years after a short sale. First Cal is still waiting for the official announcement from the VP of underwriting.
Financial Markets
The Dow continued to lurch forward in recent weeks, this past Friday closing at 16,943. The markets have been relatively stable, the Dow’s high point (nearly 17,100) and low point (above 16,800) over the past month is less than 300 points or less than 2% in fluctuation in either direction. The Dow is up roughly 1,000 points from 1 yr ago, or up nearly 6%.
The bond market, and in particular, the Fannie Mae 3.5 coupon (The instrument that consumer’s mortgage rates are most directly tied to) has been equally stable. The instrument hasn’t traded higher than 102.8 or lower that 101.7 in the past month. A little more than 100 basis points separated the high and low, which is equivalent to about .25% in interest rate to the consumer.
In short, both stocks and mortgage rates have been very stable and
we have enjoyed very calm waters so far this summer. Earning season for 2nd quarter has
begun and we can expect some volatility in the next several weeks as a
result.
Southern Nevada Real Estate Related Data
June home sales for Southern Nevada highlight two continuing
trends. The median home price of
$199,900 is up 2.5% from May 2014 and up 14% from the same month last
year. Cash buyers are down to under
35%! In February of 2013, nearly 60% of
the home buyers were paying cash. Simply
put this means less investors are scooping up homes and renting them out. This is a much more healthy number as home
owners that occupy the home will typically spend more in home improvement
projects, which stimulates the local economy significantly more than an
investor would. http://www.vegasinc.com/business/real-estate/2014/jul/08/investor-impact-wanes-las-vegas-home-prices-climb-/
According to a recent poll, Nevada jumped over 18 states for “Best
states for business”, that’s the good news.
Bad news is we are still ranked in the lower half, 29th. According to the poll and scoring system,
Nevada’s Achilles’ heel is education.
The state ranked dead last in education in 2013 and inched up to 49th this year. http://www.reviewjournal.com/business/economic-development/nevada-moves-18-places-ranking-best-states-business
As many of you have already heard, a new ubber-luxury development
is zoned for Southern Summerlin. One
word…Holy Smokes! http://shar.es/MgTVr
For
more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html
