Boston Real Estate 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  I am current on my MassHousing preapprovals but please be aware that many borrowers may have an outdated preapproval which will undoubtedly cause problems during the loan process.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