Primary Residential Mortgage now allows buyers who paid cash for their home to pull cash out without a waiting period. This can be a useful tool for you if your clients are interested in leveraging against homes they recently purchased, to purchase more. As a reminder, we also allow up to 10 financed properties.
Financial Markets
The Dow Jones lost roughly 250 points for the week, primarily due to fears of the stability of Greece within the European Union. Greece faces a vote that could eliminate the nation from membership of the EU, which could lead to higher concerns that the country would default on its debt. On the domestic economic front, the October employment report was released, showing 80,000 jobs created in October, slightly less than the 95,000 jobs expected by analysts. Both the stock market and bond market are expected to be very choppy this coming week and we can expect mortgage rates to be active in its movements.
Southern Nevada Real Estate and Economy
Below is an article in the RJ about Bill 284, which essentially requires banks to provide documentation demonstrating that they have the legal right to exercise the power of sale. The affect from the bill passing has been astounding. The article goes on to say that in the first 3 weeks of October, there had only been 116 notices filed as opposed to the over 3600 filings in September of 2011. It is probably too early to speculate what the long-term effects of the bill will be, but simple economics would have to suggest that there could be fewer transactions per month as a result of the lack of inventory. On a positive note, with less inventory available, and a growing pool of buyers ready to buy, it would pushes prices up.
