Financial Markets
The Dow Jones posted an inevitable rally this past week, gaining 467 points in 5 days. The biggest gains came on Friday, as investors bought into stocks primarily as a result of Fed Chairman Ben Bernanke’s speech. According to analysts, he demonstrated just enough concern about the current economic conditions without showing panic. The Fed hinted towards further stimulus to keep the economy out of a double dip recession but did not specify what tactics it would take. The tactics could be released in September where the Fed will have an unprecedented 2-day meeting as opposed to the more common 1 day meeting.
Mortgage rates held steady with typical 30 year fixed mortgage rates holding in the low 4’s.
Southern Nevada Real Estate and Economy
A deeper dive into the July home sales report for Southern Nevada revealed interesting statistics. 46% of the purchases were by absentee owners, purchased as vacation homes or investment properties. Resale homes are on pace reach an all-time high. The average price per square foot for resale homes is $70.33 while the average for new construction homes is $99.47.
We will be accepting loan applications for FHA loans up to $400,000 until September 15th. We are required to have credit approval by September 30th in order to secure the financing. After September 15th, we can only accept loan applications for loan amounts up to $287,500…
With the addition to a critical fulfillment employee, we have drastically improved turn-times for our closings for the month of August. My clients on average have secured final approval in 17 days from date of application!! We are extremely proud and excited of this accomplishment. Our branch is now ranked in the top 10 in the nation for PRMI for number of loans closed year to date, all this in our first year being open for business. I want to thank you for your support and look forward to continued success working together!
