Be on the look out for them because they are back.Â FHA requires 3 years to have past if you had a short sale or foreclosure. If you are getting a Conventional loan it is possible to get a loan after 2 years putting 20% down and in some cases with extenuating circumstances as little as 10% down.Â
As for interest rates, we have seen a huge increase but I still feel it is overexaggerated.Â I don't say this because I want lower rates.Â I actually want higher rates because that means our economy is improving.Â TheÂ problem is that it hasn't improved enough for the housing market to be able to afford higher rates.Â
Bernanke spokeÂ on July 10Â in Cambridge, MA in front of the National Bureau of Economic Research saying rates will stay low for the foreseeable future.Â He went on to say that the unemployment rate is still too high and inflation too low.Â Â
Rates took a hitÂ on July 5Â due to what many felt was a good jobs report and that the Fed would taper in Sept.Â If you take a look at the numbers
it showed that part-time jobs soared by 360,000 to 28,059,000, all-time record high. Full-time jobs were down 240,000.Â That is not good.
Lastly, when the Fed does start to taper it isn't pulling out completely.Â It will go from purchasing $85 billion a month in mortgage-backed securities to around $60 million.Â
With all of that said, now is the time to get off the fence if someone is to buy because rates will go up and stay high at some point.Â We just don't know when.Â
Have a great day!!
David Silverman, DeBianchi Real Estate, 954-536-1561
Justin Miller, Primary Residential Mortgage, 754-214-7449