Rate Update May 14, 2009

Fixed Mortgage Rates are even with yesterday.

Mortgage Backed Bonds are trading even on the morning after getting a bit of unfavorable news.  This morning, it was announced that the Initial Jobless claims numbers came in higher than expectations.  This is disappointing being that just last week, the Jobless figures showed a bit of hope while beating expectations.

Some good news for first-time homebuyers was announced yesterday from The Department of Housing and Urban development’s Federal Housing Administration.  It has been reported that HUD will allow for first-time homebuyers to use the federal tax credit of up to $8,000 towards the down payment of the home.  FHA will allow approved lenders, non-profits, and state government agencies to issue short-term bridge loans to buyers for down payments.  The buyers would then pay the loan back after receiving their tax refund.  This is the first news I have heard of this development (because it just came out yesterday) but it will likely take some time to filter down to the lenders and have a plan set up for use.  Once the program details are fully released and are being accepted by lenders I will have more on this topic.

Current Outlook: Locking on short term transactions