Archive for October, 2013

This Week’s Interest Rates, Mortgage Updates & Real Estate News

posted on October 18th, 2013 | filed under: Uncategorized

Interest Rates

With the U.S. debt limit default date approaching this Thursday,  there is much uncertainty about the future outlook for our economy. One certainty is that a default will have a significant negative impact on those in the market for a new home. Interest rates on traditional 30-year fixed mirror the yield for the 10-year Treasury note as shown in the graphic below. A default could increase Treasury yields sharply because of the increased perceived risk, thus causing a increase in mortgage interest rates as well. Borrowers who have adjustable-rate mortgages that are tied to Treasury indexes would also feel a hit in the form of increased payments.  READ MORE

Article Courtesy of Samuel Scott Financial

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Market Update: Government Shutdown to Put Brakes on Market

posted on October 16th, 2013 | filed under: Uncategorized

Many, but not all, government agencies involved in the real estate market have either closed or curtailed their activities since congress failed to approve funding.Treds 10.13.146

The IRS is closed and has suspended the processing of all forms. Some of these forms, particularly tax return transcripts, are required for many kinds of loans, including FHA and VA.

SSA is also closed and will not be verifying social security numbers, a further complication for mortgage processing.

The FHA will continue to endorse new loans for the Single Family Mortgage Loan Program, but will not make new commitments to the Multi-family program.

Lenders will continue to process and guaranty mortgages through the VA Loan Guaranty program. Expect some delays.


The median price for single-family, re-sale homes rose 20.5% year-over-year. That’s the thirteenth month in a row the median price has been higher than the year before by double-digits. It’s seventeen months in a row of year-over-year increases.

Read the rest of this entry »

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Emerging markets thrive amid U.S. shutdown but will the U.S. default on its debt?

posted on October 7th, 2013 | filed under: Uncategorized

ClosedLet’s start with Global Emerging Markets (GEMs) to start off the Friday economics commentary. The cyclical business conditions in GEM-10 economies edged higher in September as activity continued to improve from a 4.3% quarter-over-quarter SAAR rate in Q1. China has been growing the fastest on the Economic Condition Index (ECI) as the U.S. is pushing EM down ECI improvements in Brazil and India in light of the recent shutdown. The full impact to GEMs from the current U.S. government shutdown will depend on its duration while the subsequent debt ceiling negotiations are another potential flashpoint in the near future.


Article Courtesy of Samuel Scott Financial Group


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Jeff DeChamplain