Rates – Not Much Here.

Microbial life can survive on the cooling rods of a nuclear reactor.

Many who know my love for all things statistical or integrated by relationship love to ask the question about rates.  Up? Down? Sideways?  Keeping it short, rates will move in a narrow band over 2017.  China’s pull back isn’t pushing rates up.   Greece’s economic problems won’t send enough money our direction to lower rates.  The Fed’s proposed rate increases are only indirect indicators; they can ramp up or down Mortgage Backed Securities (MBS) purchases for (some) movement, if needed.  Keep an eye on the 3rd week of January through 2nd week of February to get the rate direction for the year.

In 1915, scam artist Charles Hatfield convinced the town of San Diego that he could create rainfall using a secret mix of chemicals.  The city offered to pay him $10,000 if he could end their drought, and the “result,” a few days later, was the town’s worst flood of the twentieth century.

Here’s What Matters – Why Homes That “Sell” Don’t Necessarily “Close.”

  • Buyer Financing Woes – Underlying problem rarely discussed:  buying a home that is “only” $5,000 above what the buyer is qualified for.
  • Low Appraisals – With the push from the agencies (Fannie, Freddie, FHA, USDA, VA) to use comparative data against their database, even when an appraisal comes in, a “red flag” may occur when AUS (automated underwriting system) is run, requiring a desk review and/or a second appraisal.
  • Title Insurance & Home Inspection Surprises – Title insurance is just that; making sure parties are secure in their new title or, in the case the mortgage company, lien positions. Examples:  Fences crossing property lines, Land Use Division liens, easements, former spouses, all can “cloud” title.  Home inspections are specifically in the vested interest of the party ordering the inspection, usually a potential home buyer.  Unlike an appraisal inspection, which is for the benefit of the mortgage company and is generally more of a “global” inspection, the home inspection will take much longer and go much deeper in review.  That “kinda” soft floor in the bathroom…
  • Buyer Remorse – In the Seattle market, often buyers have “bid” on several homes taking the one they finally get in first position on; that emotion can change as the buying process moves forward.
  • Too Many Moving Pieces – Completion of remodel.  Sale of another home or property or business.  Pending divorce being finalized.  Clearance of IRS lien.  Re-conveyance of title position.  Change in employment or employment conditions.  Gift funds don’t happen. Co-signor decides not in best interest.  Changing mortgage companies to obtain better rate – don’t qualify for lower rate program.  Lawsuit.  HOA has more than 15% delinquencies in dues.

Buzzards are legally classified as songbirds in Ohio.

Mark Palmer

MLO# 41814 - The Mark Palmer Group is an elite Mortgage Team in Washington State. With over 30 years in the mortgage industry, my team provides a seamless mortgage experience based on transparent communication, professionalism, and a top-notch team of mortgage professionals to create an enjoyable process.