Just wanted to get a quick note out.
FNMA 3.5% coupon is a winner today and looks like it will close the session UP today. Currently the bond is UP 62 basis points. This is after a few days of losing steam and rates coming up. Look for rates to get better in the morning but we are currently in the 4.25% range on 30 year fixed money. It is exciting to offer this kind of rate as it is INSTANT enhanced buying power to our borrowers.
The kicker now: How do you help your clients feel comfortable purchasing in this marketplace? Remember that the median home sales price has actually been holding steady and came up a little bit over the last few months. I know there are several foreclosures that have not yet hit the market and there are other reasons to perhaps feel that this may be the "eye of the storm" but the bottom line with housing: it is a HOME that people want.
People buying today are getting in on the best mortgage rates in the history of the WORLD. They are finding that they are spending thousands less than a few years ago in purchase price and payment and are purchasing to OWN. We are seeing home ownership as a long-term part of a person's strategy vs. a short-term "investment". This is healthy. Waiting only serves to prolong the inevitable for those looking to buy...each month is another month of renting.
Many criticize the $8000 tax credit (I myself doubt the cost-to-benefit ratio was worth it with all the fraud that needs to be investigated etc.) but one thing it has done: put home ownership in the minds of many.
Money is here...and we are looking for good borrowers to give it to. What does that look like? 620 credit score or higher, a job that pays money, money for a down payment or ability to qualify for down payment assistance. Do you know someone who fits this criteria? We would be happy to help.
Have a great week and be well.
Cheers!
Chad
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Chad Schauers
Montana Mortgage Lender, Bozeman, Montana
Personal Cell: 406 799 8613
Personal Email: metchad@gmail.com
