MARKET UPDATE - APRIL 2010

HOMEBUYER TAX CREDIT ENDS THIS MONTH

To take advantage of the homebuyer tax credit, buyers must be under contract by April, 30th, 2010. The home must also close by June 30th, 2010 to qualify.
“There is little sentiment for continuing this program, especially because many consider the latest results to be disappointing. Even the Senate's biggest proponent of the homebuyer tax credit, Johnny Isakson, R-Ga., is ready to let it end. "He has no plans to introduce legislation to extend the credit," said Isakson's spokeswoman. "Part of the benefit of the tax credit was the urgency its sun-setting generated." – CNNMoney.com

FED HOLDS SHORT TERM RATES STEADY, BUT FOR HOW LONG

The Fed’s aggressive purchasing of mortgage backed securities to the tune of $1.25 trillion ended March 31st. Long term interest rates have remained stable with the 30 year fixed rates hovering around 5.0%. Long term rates will not drastically rise as long as investors step in to buy mortgage back securities.
“Fixed mortgage rates likely will rise less than a quarter of a percentage point in the next three months, the smallest increase for the second quarter since a drop in 2005, according to estimates by Fannie Mae and Freddie Mac.” - Bloomberg
The Fed also kept short term rates at historic lows; but for how long? The Fed held short-term interest rates unchanged in the range of 0.00 to 0.25 percent. The central bank stated that "economic activity has continued to strengthen and that the labor market is stabilizing." – CNNMoney.com
Short term rates will not likely begin to rise until there is solid signs of recovery in the economy; most notably the job market. Expect to see short term rates climb in the late third or forth quarter of 2010.

INTEREST RATE UPDATE

Mortgage Type Interest Rate APR
30 Year Fixed 4.875% 5.011%
15 Year Fixed 4.250% 4.480%

Call today for your individual scenario rate quote.
Interest rates as of 04/02/10. Conforming interest rates. Not applicable for FHA and VA loans. Interest rates and APR based on loan amounts not to exceed $417,000. Loan to values not to exceed 80%. 720+ credit score. Owner occupied only. Purchase and rate in term refinances. Not all applicants will qualify.

SALES DECLINE BUT PRICES STABILIZE

“Sales of existing U.S. homes fell in February for a third month and the number of properties on the market climbed by the most in almost two years, according to the National Association of Realtors. Purchases dropped 0.6 percent to a 5.02 million annual rate, the lowest level in eight months, and there were 3.59 million houses for sale, the biggest gain since April 2008.”
“At the same time, the S&P/Case-Shiller home-price index covering 20 U.S. cities showed signs that real estate values may be stabilizing. Home prices dropped 0.7 percent in January from a year earlier, the smallest annual decrease in three years, according to a report issued today. Measured monthly, the gauge rose 0.3 percent from December.” - Bloomberg

FASTEST APPRECIATING U.S. CITIES

CNN just reported the 25 U.S. cities with the highest estimated appreciation over the next year. It is not big percentage, but at least it is going the right direction.

Those cities in green are serviced by Geneva Financial, LLC and Geneva Real Estate & Investments, LLC.

Rank City Annual Increase

#1 Santa Rosa, CA 6.0%
#2 Cheyenne, WY 4.7%
#3 Kennewick, WA 4.6%
#4 Merced, CA 4.4%
#5 Fairbanks, AK 4.2%
#5 Bremerton, WA 4.2%
#7 Corvallis, OR 4.1%
#8 Tacoma, WA 3.9%
#9 Anchorage, AK 3.8%
#10 Bend, OR 3.3%
#11 Modesto, CA 3.2%
#12 Pueblo, CO 3.0%
#13 Bellingham, WA 2.9%
#14 Yakima, WA 2.8%
#14 Spokane, WA 2.8%
#16 Billings, MT 2.7%
#17 Olympia, WA 2.3%
#17 Napa, CA 2.3%
#19 Mount Vernon, WA 2.2%
#20 Glen Falls, NY 2.0%
#20 Great Falls, MT 2.0%
#22 Charleston, SC 1.5%
#23 Casper, WY 1.8%
#24 Medford, OR 1.7%
#25 Eugene, OR 1.6%

NEW UNDERWRITING GUIDELINES

In a bold attempt to reduce mortgage delinquencies and fraud, the following underwriting guidelines take effect immediately.

• All Borrowers’ Birth Certificates will be required with Pictures taken in the hospital with medical staff. Birth certificate with a live home delivery will not be eligible for first time home buyers.
• Marriage certificate with bridal dress will be required if both husband and wife are required to qualify for the loan
• GFE will not require signature but will require blood sampling from a recognized institution within three days of application
• DNA test will be performed at closing to avoid any non-arms length transactions. Loan funding will be contingent upon satisfactory receipt of DNA results.
• Verification of deposit will be acceptable only if Bank representative is present at the closing.
• Copy of Pay stubs and W2 will only be acceptable through IRS and only with a wax sealed envelope mailed directly to the lender.
• 7 Witnesses from neighborhood will be required as proof of primary residence in case Borrower owns more then 1 property.
• All appraisers will be required to use masks and ear plugs at the time of inspection to avoid any personal influence by the borrower for the appraised value.
• In order to correctly calculate DTI and true housing ratio a list of grocery items, monthly usage and brand names will be required with receipts and projected 12 month consumption chart.
• Closing will not occur without loan officer presence at settlement and loan officer picture will be taken at the closing in a mug shot format with loan number. Picture should meet standard guideline of 2 X 2 inch in color format with one facing and one side view.
• Loan officer picture will be attached to the deed and note and will be made available for general public and security agencies in case borrower defaults on the loan.

It would be funnier if it wasn’t so true. -Author unknown.

HOME OWNERS SEEKING HELP

If you owe more than your home is worth and do not know what to do, please give us a call. Geneva Financial, LLC offers federally funded mortgage options that may allow you to refinance your current mortgage into a lower monthly payment. We do not do loan modifications.
Need help with a short sale. Geneva Real Estate & Investments, LLC has many seasoned short sale real estate specialists that will help sell your home at no cost to you.

Our two companies are working hard to help distressed homeowners. Contact us at anytime with any questions.