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March 2010 Peoples Mortgage, Inc.
Personal. Distinctive. Real. |
Greetings!
I don't know about you, but I am loving the 1 extra hour of cloudiness we now get! I even heard a rumor that at some point we WILL see significant amounts of sunshie.
In the meantime, here's your outlook for the rest of the month. | |
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 TAX CREDIT NEARING DEADLINE The Worker, Homeownership, and Business Assistance Act of 2009 was signed into effect on November 6, 2009. This Act extended the original 1st-time homebuyers tax credit AND created a tax credit for buyers who currently own a home.
If you intend to take advantage of this tax credit, you should make plans to act now! In contrast to last year's no deadline, there has been NO significant talk of extending the tax credit again.
In order to qualify for the credit, all contracts need to be in effect no later than April 30th 2010 and close no later than June 30th 2010. Although we are NOW closing mortgages within a 30 day time frame, you can be assured that there will be a MAD RUSH at the end of June to get purchase transactions closed!!
For more information, visit Tax Credits on our website. |
 Rate Forecast: Low rates set to rise! Mortgage rates remain historically low. In fact, we have locked in multiple clients in the past 10 days at 3.875% on 10 year fixed rate. We also had a borrower move into town with only a 3 year employment contract and chose to finance with a 5/1 ARM and received a rate of 3.25%
But all signs point to a future raise in interest rates.
St. Louis Fed President James "Raging" Bullard was on CNBC sharing some interesting thoughts this morning. He feels that the "extended period" language should be removed to allow the Fed to be more data dependent. This means that upon stronger economic reports, the Fed would be in a position to act quickly to hike if they should deem it necessary. The present language in the Policy Statement somewhat inhibits the Fed, as they always try to gently telegraph their next move.
He also indicated that there is more Fed support to remove quantitative easing than people might think. The Fed has used quantitative easing - like buying Mortgage Backed Securities - as a supplementary way to lower rates, since they've already cut the Fed Funds Rate about as much as they can. So removing quantitative easing would mean selling Mortgage Backed Securities. As you know, the Fed is ceasing their MBS buying program next week, which will adversely impact the pricing of Mortgage Bonds in and of itself...but switching from a buyer to a seller of MBS is sure to pressure rates higher still.
Additionally, we're hearing more about global inflation concerns - and last night, India hiked rates unexpectedly, in their attempts to fight inflation. |
 A Berry Good Time To Plant As this article states, growing berries is easy. Not to mention, I have found it is much easier to to get my get kids into gardening when growing strawberries as opposed to raising broccoli. | |
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We are looking forward to a great spring/summer. If you or anyone you know can use our assistance, please pass our contact information along to them.
Sincerely,
Ronnie Wilson
Peoples Mortgage, Inc. |
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