Written By — Chad Emerson
More of the same this week. Not enough positive economic data to push rates higher, even though the first-time unemployment benefits dropped to it’s lowest level in two years. Economists were quick to note that these numbers were most likely “skewed” by a lower than normal shutdown of season factory jobs. It is my opinion, take that for what’s it’s worth, that mortgage rates have hit the floor, and it may take a jack hammer to go lower, but the boys on Wall Street are starting to itch for some profit-taking gains on their bonds and mortgage-backed securities.
It is more likely that the mortgage rates, for the time being, will be determined by the purchase and sale of stocks. There are a lot of discounted stocks out there that have been hammered as of late, and if there is an opportunity to buy low, you know what that means. I’m not a pessimist, I’m a realist.
Finally, investors are starting to see some light at the end of the tunnel. I have seen some loosening of the noose as of late. A couple of MI companies have been showing coverage again up to 90% on investment properties and second homes. Keep in mind that this is only for single-family detached properties. Although this is great news, I currently have only seen a couple of investors allowing 85% LTV on investment purchase. This isn’t across the board, before you assume that 85% LTV is back for investors, best to have me check it out first. I am cautiously optimistic that this could be the start of the investment guidelines being loosened up for the future and hopefully it will get even better. It looks like our ranting is finally being heard by those that matter. Stay tuned…
Investor Rates still at 5.25% 30-year fixed with 20% down on SFR
5.25% on duplex with 25% down
BawldGuy Here: A reminder for readers — Chad can help you with loans in all states — no exceptions. Just thought you might wanna know. Have a good weekend. Wanna talk with me? 619 889-7100
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About Chad Emerson
If the government entities want to establish the market clearing prices and move the inventory, they are going to have to drop their prejudice against the 10 plus property investor. I will go shopping again if and when I can obtain financing. Finance me and 30,000 other investors out of our cash purchases and provide mortgage capital for new purchases and you will see the needle on the inventory gauge start moving again.
Yeah, Jeff, I know, don’t hold my breath.
Ironically, there have been a couple things I’ve seen in the last 48 hours that lead me to be more optimistic than I’ve been on the subject. But I’m glad you’re not holdin’ your breath.