No more white shoes, white pants or dresses, right? Although we think that idea is a bit out of date today, at the Yacht Club white pants are not de rigueur after Labor Day. Acting as the “Officers of the Deck” this week, we were asked to dress in formal yacht club attire which includes white or blue shirts, grey or khaki pants and navy jackets emblazoned with the Club Bullion.
Now, down to business:
Housing Market Correction
The experts
are all weighing in on the likelihood of a “correction” to the housing market.
Will prices come down? There is a good
deal of downward pressure on prices. We may
see a swing closer to a buyers’ market in the near future. But remember, inventory is still extremely
low. No “crash” is in sight. All the factors make it highly unlikely.
Rates
Up, down and
sideways. Last week they hit an average of 6% which is the highest since
2008. However, a graph of average interest rates over the last 50 years in the
US shows we are still quite near the low end.
It has been the sudden doubling of rates over the last 18 months that
has buyers pushing the pause button.
Affordability has decreased with the rate rise. Loan applications are down significantly
which also means there is less competition out there for willing buyers.
Refinance
activity particularly has slowed significantly, and is providing only 30% of
current total loan volume.
Conforming
Loan Limit Increases
The conforming
loan limit, which includes both Fannie Mae and Freddie Mac loans, will rise
effective January 1st but many lenders, including APM are already accepting rate
locks for conforming loans up to a $715,000 loan amount. The actual new limit
could be higher, but most agree that $715K is a safe bet. What does this mean for borrowers? Conforming loans are easier to qualify
for! Good news all the way around
Down Payment Assistance
No cash for
a down payment? No problem. We have programs to assist new homebuyers
with as little as $500 cash. With a combination of down payment assistance through various programs,
coupled with seller credits to offset closing costs, there is almost no cash
required to get into a home. Of
course there are income qualification requirements.
Don't hesitate to reach out to us with questions! Enjoy the transition to fall, we can't wait to cool off a bit.
