Product
Alert:
FHA
will now allow financing for borrowers who experienced a short sale,
bankruptcy, foreclosure or deed in lieu 12 months after the incident,
instead of the 2-3 yrs set in the current guidelines. ***However, the incident must have been
triggered by an “Economic Event”. An “Economic Event” is either a loss of
employment or loss of income by more than 20%.
Financial
Markets
The rise in mortgage rates over the past 90 days is
well documented by now. Mortgage rates
reached near historic lows towards the beginning of May. Mortgage-backed securities launched into a
free-fall, dropping nearly 1,000 basis points in just 45 days. 400 basis points were lost in just 4 days of
trading in the middle of June, the equivalent of nearly .75% in rate. The sell-off in mortgage backed securities
was historic, never in the history of the instruments’ existence had it ever
sold off so dramatically in such a short period of time. Lost in all this is that while rates moved
significantly off its low, the 30 yr fixed is still nearly ½ what the average
30 yr fixed rate is over the past 40 yrs.
The average 30 yr fixed rate
mortgage since 1971 is 8.6%. (according
to Freddie Mac analysts quoted in USA Today June 28th, 2013)
Southern
Nevada Real Estate Related Data
I noticed an interesting statistic reviewing the UNLV
Lied Institute for Real Estate Studies, Report on Nevada’s Housing Market for
the month of July. In 2002, non-owner
occupied home buyers represented 40% of the home purchases. By 2009, this class peaked to roughly
90%. In 2013, year-to-date,
non-occupying home buyers represent 60% of the market. I believe this class includes home buyers
purchasing vacation homes with the intent to eventually move to the area.
Have
a great week! BACK TO SCHOOL BABY!!!
For
more real estate financing information, please visit my website:
http://www.matthewtmaltese.com/home.html
