Improving Housing Market May Boost U.S. Credit, IMF Reports

According to the International Monetary Fund, small- and medium-sized businesses stand to benefit from improvements in the U.S. housing market, as they can use housing as collateral to obtain more loans. Large corporations are more likely to benefit from relaxed financial conditions and expanding corporate markets than smaller enterprises. Read the full story

Mortgage Updates

Interest Rate Update


Interest rates have eased down a tiny bit over the last few weeks. Some "experts" say rates

could dip down again for a short period of time as Congress and the Senate continue to fight

and bicker over the budget and debt ceiling.

30 Year Fixed up to $417,000 3.99% to 4.25%

30 Year Fixed "Agency" up to $625,500 4.125% to 4.625%

30 Year Fixed FHA up to $417,000 3.75% to 4.0%

30 Year Fixed FHA "Jumbo" up to $729,500 3.75% to 4.125%





　

How Does This Affect You ?
It appears that the inventory of homes for sale has picked up a little bit which is a good thing.

We need the market to cool a bit so the first time buyers can get back in the game. Seems most

of the listings are being bought by all cash offers or buyers with large down payments. I have

several FHA or 5% down payment buyers who have been unable to get any offers accepted. I

still believe the next several years will be excellent for all people in our industry.

What features do buyers value in a home?

What does one TRILLION dollars look like?

All this talk about "stimulus packages" and "bailouts"...

A billion dollars...

A hundred billion dollars...

Eight hundred billion dollars...

One TRILLION dollars...

What does that look like? I mean, these various numbers are tossed around like so many doggie treats, so I thought I'd take Google Sketchup out for a test drive and try to get a sense of what exactly a trillion dollars looks like.

We'll start with a $100 dollar bill. Currently the largest U.S. denomination in general circulation. Most everyone has seen them, slighty fewer have owned them. Guaranteed to make friends wherever they go.

A packet of one hundred $100 bills is less than 1/2" thick and contains $10,000. Fits in your pocket easily and is more than enough for week or two of shamefully decadent fun.

Believe it or not, this next little pile is $1 million dollars (100 packets of $10,000). You could stuff that into a grocery bag and walk around with it.

While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet...

And $1 BILLION dollars... now we're really getting somewhere...

Next we'll look at ONE TRILLION dollars. This is that number we've been hearing so much about. What is a trillion dollars? Well, it's a million million. It's a thousand billion. It's a one followed by 12 zeros.

You ready for this?

It's pretty surprising.

Go ahead...

Scroll down...

Ladies and gentlemen... I give you $1 trillion dollars...

Notice those pallets are double stacked.
...and remember those are $100 bills.

So the next time you hear someone toss around the phrase "trillion dollars"... that's what they're talking about.

Americans in Poll Doubt Economy Rebound in Defiance of Forecasts

Source: Bloomberg
Despite the fact forecasters expect growth to accelerate, a new Bloomberg National Poll reveals that
Americans have their doubts about the strength of the nation’s economic recovery over the next year.
Close to half of poll respondents said they expect the economy to remain about the same and nearly 30 percent said it would weaken.

Read the full story
http://www.bloomberg.com/news/2013-09-25/americans-in-poll-doubt-economy-rebound-in-defiance-offorecasts.html

FHFA encouraging use of federal refinancing program

Source: The Hill
The Federal Housing Finance Agency (FHFA) is trying to spread the word about a federal refinancing program, the Home Affordable Refinance Program (HARP), as a way to encourage homeowners who are up to date on their payments but who owe more than their home is worth to contact a lender. At least 2.8 million homeowners have refinanced already through HARP.
Read the full story
http://thehill.com/blogs/on-the-money/1091-housing/323951-fhfa-encouraging-use-of-federalrefinancing-program

What would you pay first: your mortgage or credit card bill?

Source: The LA Times
A new study on consumer behavior found that financially-strapped Americans are now about as likely to fall behind on their credit cards as they are on their mortgage. During the recession, troubled borrowers were more likely to pay just credit card bills, but as a sign of an improving housing market, rising home prices create more equity in a home, which creates an incentive to keep making house payments.

Read the full story
http://www.latimes.com/business/money/la-fi-mo-credit-card-mortgages-20130918,0,479553.story