PRODUCT ALERT!
Last week to get your clients putting 20%
and applying for a conventional loan 2 years after a short sale under contract!
Financial Markets
Stocks continued to lose ground as the Dow shed nearly 600 pts in
the past 2 weeks before rallying Friday and landing at 16,553. The Dow rallied nearly 200 points for the day
as reports of American involvement in Iraq appear to be less intrusive than
initially anticipated, and news broke that Russia has ceased military exercises
near the Ukrainian boarder.
The Fannie Mae 3.5 Coupon, as often is the case when stocks sell
off, rallied and improved by about 75 basis points over the past 2 weeks, which
loosely translates into about a .125% improvement in rate to the consumer.
A client asked me what rates were going to do and asked me if he
should lock. I gave him my standard
rhetoric: “No one can say what rates will do.
Any one that tells you they know what rates will do is a fool”. He asked me again, so I googled, for kicks,
“what will rates do”? I stumbled onto a
very informative publication released by Freddie Mac. In a nut shell, the report predicts that
mortgage rates will “rise to 5% by the middle of 2015”. Great forecasting information for the economy
and housing market on a macro level.
Take a look! http://www.freddiemac.com/finance/pdf/July_2014_public_outlook.pdf
Southern Nevada Real Estate Related Data
The median sales price of resale homes hit a 6 year high for the month of July, up .1% from June and reaching $200,000. This is up just over 11% from July of 2013 and the highest since August of 2008. The peak price of median resale homes at one point hit $315,000, in June of 2006. The abyss was realized in January of 2012, where the median price home dropped to $118,000, a measly 63% decline from peak to trough. http://vegasinc.com/business/real-estate/2014/aug/08/rising-las-vegas-home-prices-hit-nice-milestone/?_ga=1.66807850.564569733.1395507077
