The Bridgewaters, Massachusetts

My Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days, but watch the markets carefully and lock if conditions change
• Float if my closing was taking place between 8 and 20 days, but watch the markets carefully and lock if conditions change
• Float if my closing was taking place between 21 and 60 days
• Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

HUD recently proposed again regulations that would prohibit seller-funded downpayment assistance.

Generally, under current FHA regulations and guidelines, in order for a mortgage to be eligible for FHA insurance, a borrower is required to put down at least 3% of his own money in the transaction. However, that 3% downpayment could also be gifted from relatives, from his or her employer, or from a non-profit organization.

On June 16, 2008, the HUD re-published its proposed rule concerning seller-funded downpayment assistance gifts in connection with FHA mortgages. The re-published regulation, if enacted, would prohibit a borrower from receiving certain seller-funded downpayment assistance in order to meet the 3% requirement.  Notably, the regulation would prohibit downpayment assistance that "consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale: the seller, or any other person or entity that financially benefits from the transactions; or any third party or entity that is reimbursed directly or indirectly by the seller, or any other person or entity that financially benefits from the transaction."

Comments regarding the re-published rule must be submitted to HUD on or before August 15, 2008. The Notice also states that if, after reviewing the comments, HUD issues a final regulation, it will be made effective 180 days from the date of publication with regard to all mortgages involving properties for which contracts of sale are dated on or after the effective date.

the Notice of Proposed Rulemaking (NPRM) can be seen at edocket.access.gpo.gov/2008/pdf/08-1356.pdf

Hmmm. One wonders why they're trying to end the program through seller-assist when they themselves promote it. See http://www.hud.gov/offices/hsg/sfh/np/sfhdap01.cfm

My Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days, but watch the markets carefully and lock if conditions change
• Float if my closing was taking place between 8 and 20 days, but watch the markets carefully and lock if conditions change
• Lock if my closing was taking place between 21 and 60 days
• Lock if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

My Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within 7 days
• Lock if my closing was taking place between 8 and 20 days
• Lock if my closing was taking place between 21 and 60 days
• Lock if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

My Lock Advice for Today:

If I were considering financing/refinancing a home, I would... 

• Lock if my closing was taking place within 7 days
• Lock if my closing was taking place between 8 and 20 days
• Lock if my closing was taking place between 21 and 60 days
• Lock if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

My Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within 7 days
• Lock if my closing was taking place between 8 and 20 days
• Lock if my closing was taking place between 21 and 60 days
• Lock if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

Current Rates*:

• 30 Year Fixed - 6.625% with 0 Points
• Jumbo 30 Year Fixed - 8.125% with .5 Points
• 15 Year Fixed - 6.375% with 0 Points
• FHA / VA 30 Year Fixed - 6.375% with 0 Points
  
  *Rates and fees accurate as of 6/20/08. Rates and fees subject to change without notice.  This is not an advertisement for the purposes of the Truth-in-Lending Act or Regulation-Z. Terms and conditions apply. For qualified borrowers. Not a promise to lend.

Please keep in mind that the quotes above are generalized. For specific quotes or to get quotes on a variety of other mortgage programs, please give me a call.

My Lock Advice:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within 7 days
• Lock if my closing was taking place between 8 and 20 days
• Lock if my closing was taking place between 21 and 60 days
• Lock if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

Looking Back

Interest rates recovered somewhat this past week, but not to the low levels of just two to three weeks ago.

In other news, the National Association of Builders announced US housing starts were down 3.3% in May, and down 32.1% over the previous year.  Association executives asked Congress to pass a housing stimulus legislation package to alleviate weakness in the housing sector.

Also, the FBI arrested 400+ people in the mortgage and real estate industry in a broad sweep of mortgage fraud that cost consumers over $1 billion.  Most were involved in loans using fake income numbers, and falsified appraisals.

Looking Forward

The most important financial data this week will come after the Fed Meeting.  Most analysts are forecasting that the Fed will leave rates steady this time, even as it acknowledges some troubling signs on the inflation front.  But, they are also saying that we will see some increases before the end of the year.

Other scrutinized data will Home Sales. Housing starts have plunged to the lowest level since March 1991, the tail end of the 1990-91 recession. Housing permits also dropped, to the second-lowest level since July 1991. At the same time, the Census Bureau reported the steepest increase in housing completions since September 2006.  This has helped keep the inventory of unsold new homes high - it was at 456,000 in April, a 10.6-month supply. The month's supply of homes for sale was in double digits for the second straight month for the first time since September-October 1981.

My Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days, but not through the weekend. I'd also watch the markets carefully today and lock at the first sign of pending trouble
• Float if my closing was taking place between 8 and 20 days, but not through the weekend. I'd also watch the markets carefully today and lock at the first sign of pending trouble
• Lock if my closing was taking place between 21 and 60 days
• Lock if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

My Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within 7 days
• Lock if my closing was taking place between 8 and 20 days
• Lock if my closing was taking place between 21 and 60 days
• Lock if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.