Reside Boston News Blog

Mortgage Rates:  Since the last Mortgage Market update, mortgage pricing has rocked back and forth with little to no change in rates.  Given some of the soft economic data and continued demand for US Treasuries, we still expect rates to stay flat over the near term.  Below is a sample of some of our key rates for a 740 FICO and 80LTV borrower w/ no points with the month over month changes in red:

 

 

Home Sales Data:  Existing Home Sales were 0.6 percent lower in February led by a 4.8 percent decline in condo sales. Median home price fell 1.8 percent and total existing inventory rose 9.8 percent (yikes). While these stats are discouraging, they do not imply significant weakness as much as they imply continued stagnation after a busy summer buying season and the dreadful weather in the Northeast recently.   On the bright side, this sentiment should help keep mortgage rates low from a historical perspective but the road ahead will be bumpy at best.      

Program Updates:   Effective April 1, 2010, MassHousing will be lowering the maximum Loan to Value from 100% to 97% on one unit and condo properties. All applications with Loan to Values greater than 97% must be dated before March 31^st, 2010 and be closed and funded by May 31^st, 2010.  I am current on my MassHousing preapprovals but please be aware that many borrowers may have an outdated preapproval which will undoubtedly cause problems during the loan process. 

 

Underwriting Updates:   The rate of litigation against condo associations has been increasing which can potentially cause problems during the loan process.  Although most of the litigation is minor in the amount of damages sought and an exception can be granted, there is still a few pieces of documentation that needs to be collected that can cause delays. Specifically, there may be additional information needed by the attorney representing the association and/or court papers.  It is advised to ask the following questions

• Owner occupancy? (ideally 50% or more)
• Year Association was established? (ideally 3 years for limited review)
• If one investor owns more than 10% of the units?
• If there is any pending litigation AGAINST the association?

All of these questions are included on the attached questionnaire which is attached for your review. However, it may save time to ask these 4 questions before a showing or making any offer. 

As always, please let me know if you have any questions or need any additional information. I look forward to a very strong spring season where we close many deals together.  If there is anything I can do to help please let me know.

 

Jason Deeb
Senior Loan Officer 

Direct:   781.486.7143
Fax:       781.245.7373

Mobile:  617.901.8405

Email:   jdeeb@msamortgage.com

 

 

 

 

 

The Good news for first time home buyers is tax credit extended for sure. Congressman Maurice Hinchey helped secure legislation that will extend the $8,000 federal tax credit for first time home-buyers, and create a new $6,500 tax credit for people who have bought a home in the last five years. Hinchey says it was important to extend this legislation through April 30th of 2010, because it’s been a successful law so far.”It provides opportunities for people to buy homes who wouldn’t have the opportunity, because the $8,000 provides them with the incentive they need, and the additional financial help they need to actually buy that house,” said Rep. Maurice Hinchey, (D) 22nd District. Hinchey says he doesn’t know if there will be another extension, because it all depends on the program’s success.

 

We checked in with our lending specialist Jason Deeb at MSA Mortgage and here is what he sent us to help understand the process.  Jason Deeb says with the recent extension of the First Time Homebuyer Tax Credit, after consulting with many MSA clients who purchased a home for the first time and had difficulty visualizing the process. Many of our clients have found our flow chart extremely helpful so I wanted to pass it along to you to forward to your clients. Please let me know if I can send it to you or if you have any questions. Contact Jason Deeb Senior Loan Officer Direct: 781.486.7143 Cell: 917.721.2111 Fax: 781.245.7373 Email: jdeeb@msamortgage.com

Rates for 30-year home loans jumped to the highest level in seven months this week, leading to a slowdown in refinancing activity, Freddie Mac said yesterday.

The average rate for a 30-year fixed mortgage was 5.59 percent this week, up from 5.29 percent last week, Freddie Mac said. The last time the average 30-year fixed-rate mortgage was higher was the week ended Nov. 26 of last year, when it averaged 5.97 percent.