No Bull Agent
President Obama is expected to sign an extension, approved by the House and Senate, to the June 30 first-time home buyer tax credit deadline. Why is this extension important and is it necessary? The simple answer is “yes” to both questions.
The original timeline for the first-time home buyer tax credit, as detailed in our previous post, stated that a home buyer must be in contract by April 30, 2010 and close by June 30, 2010 to be eligible for the credit. Many first-time buyers positioned themselves to take advantage of this credit which is evident by the increase in sales during the month of April. The current challenge is getting some of these transactions done in the 60 days previously given between the two deadlines. This timeline can be especially short considering short sales are still taking, on average, from four to six months to process.
There are many opinions as to why short sales take so long. The general consensus is that lenders are playing “catch-up” to the mass influx of these transactions, are short staffed and are reworking their processing procedures on the fly. This extension is important and necessary for these buyers who need the additional time, for no fault of their own, to complete their transactions. Read the rest of this entry »
Information in this post is provided by Greg Wickstrand, Home Loan Consultant for HomeServices Lending. He is a guest blogger who provides us information from a lender’s perspective. For additional posts by Greg, please visit his BLOG.
What’s Ahead for Mortgage Rates this Week: June 28, 2010
By: Greg Wickstrand
Mortgage markets improved last week in response to mostly negative data about the U.S. economy, and the Federal Reserve’s acknowledgement that Eurozone financial ills could cross the Atlantic.
Conforming and FHA mortgage rates fell last week, extending a rate rally that dates to early-April. Mortgage rates have fallen to several, new, all-time lows during this period and last week was no different.
The best rates of last week hit Thursday morning.
This week, mortgage rates should be volatile, and may rise, too. There’s a bevy of data due for release, and market volume will be light with the long weekend looming.
Monday, the Personal Consumptions Expenditures Price Index is published. More commonly known as “PCE”, the index is the Federal Reserve’s preferred inflation gauge. When inflation is running higher than expected, mortgage rates tend to rise.
Conversely, when inflation is running lower than expected, mortgage rates tend to fall.
Tuesday, the Case-Shiller Index will be released for April’s home prices, along with two consumer confidence reports. As with PCE, strength tends to lead mortgage rates higher and weakness draws them lower. Read the rest of this entry »
Downtown San Diego’s goal of providing a little less noise for its visitors, residents and businesses is now a reality. In our December 22, 2009 post we discussed the proposed “Quiet Zone.” However, the desire to create this zone began much earlier…try a decade earlier. On Tuesday, June 22 the San Diego City Council voted 6 to 2 in favor of the $20.9 million plan to make improvements to 13 rail crossings that run north to south through the districts of Little Italy, Columbia, Marina, Gaslamp and the west edge of East Village. Specifically, these intersections start at Laurel Street and end at Park Boulevard. According to an article posted by Craig Gustafson on SignOnSanDiego.com, this “Quiet Zone” is slated to be the largest of its kind in the United States.
In our opinion, this approval will be a wonderful improvement for those who spend time in downtown whether it be to live, work or play. Those who enjoy being downtown know that there is a constant “buzz” that goes along with the downtown experience. Read the rest of this entry »