Good Morning on this fantastic Wednesday and best day of the week, from your Hometown Lender,
Bonds are pulling back a little on some bleh news.
Topline Durable goods came in hot but ex transportation which tends to be the volatile component, it actually was weaker. We are seeing a bit of selling, but I think that is mostly positioning for the rest of the week, which brings Unemployment Claims, GDP, and PCE. Things could go very right or very wrong for bonds over the next two days. The question to ask yourself is if you want to gamble or sit on the sidelines and watch. That’s the float/lock equation.
I know I shared this last week but thought it was worth sharing again…
COMMISSIONS PAID TO REAL ESTATE AGENTS
As buyer agent fees have customarily been paid by the property seller, or property seller’s real estate agent, Fannie Mae, Freddie Mac and FHA have provided notices clarifying that these costs may be excluded from interested party contribution limits, provided all other requirements are met. As a reminder commissions and fees must be a reasonable amount in alignment with state and local law or custom. The Agencies will continue to monitor and assess the impact of the proposed NAR settlement, other real estate agent commission lawsuits, or the continued customary nature of seller’s paying these fees to determine if any updates to our requirements are necessary in the future. At this time neither VA nor USDA have released notifications and follow their standard policies and practices. Currently VA does not allow the veteran to pay any commissions within their current policy. This communication will be updated in the future if further guidance is received.
Homes keep getting more expensive in the U.S.
A survey report by Redfin says 38% of homeowners don’t believe they could afford to buy their own home if they were purchasing it today. The median U.S. home-sale price has doubled in the last 10 years and has shot up nearly 50% in the last five years alone. Honestly, I am surprised the number isn’t higher.
Next Wednesday we get the FOMC policy statement.
Right now, there is no chance the Fed will cut rates but there is hope they will discuss reducing QT (quantitative tightening where they continue to sell bonds into the marketplace which has increased spreads about 100bps). That’s what I am hopeful to see.
Stay safe and make today great!
