The Big News This Week: Congress still has not come to an agreement, but they are getting closer.
Rates have stayed relatively low, but on a hint of some good news in Congress, they have inched up a little since last Friday.
Remember, good news in the markets or signs of confidence either by the public or investors is bad for fixed rates. However, dire news is good for fixed rates.
What’s next? If the debt ceiling is raised so that the United States government can meet its obligations, and avoid “looking like a deadbeat borrower,” then rates could go up a little.
Typically, October is the low point in rates for the year. But as the year unfolds we may see higher rates, that is, unless more bad news comes our way.
One of the resolutions that has been thrown out there, is to extend the debt ceiling for only 45 days. This will give lawmakers time to hash out a budget.
If they choose to do this however, we will face this debt debate again right around Thanksgiving. Do you remember the Fiscal Cliff?
Whether you believe this is just drama, emotional black mail or a real problem, it certainly will influence the markets at a time when they are volatile anyway in year-end trading.
Good News: Despite the shutdown at the IRS and Social Security Administration, the vast majority of files at Stratis Financial are not, and will not be impacted by the shutdown.
We have systems in place for all the required items. If you are being impacted and need a file to get going and get closed, please contact me.
If you have a client who is close to having an offer accepted and is nervous about rates, don’t worry because interest rates can be locked in over the weekend.
Remember we also have the float down: if rates improve more than .25% after lock-in the client gets the lower rate.
All rates are quoted at a 45 day lock in and assume a 720 credit score with 20% down except for FHA.
1 point is 1% of the loan.
Programs quoted as having 1 point also have the option of 0 points and the option of the 0 cost loan.
Jumbo loans are loans that have a loan amount of $625,501 and above on conventional programs.
Conventional is also known as Fannie Mae and Freddie Mac financing.
If you have any questions or comments, please contact me at athena@athenapaquette.com. or call 310-218-6855.