My New Blog

 Housing to Hit Bottom This Year as Building Stalls, Case Says

 http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=a1DM1bsxBQBw

• Limited Review condo guidelines are no longer available for all condo transactions in the state of Florida.
• Presale requirement for new projects has been increased from 51% to 70%.  The definition of pre-sold is 70% of the total units in the project must have been conveyed or be under a bona fide contract for purchase to principal residence or second home purchases.
• No more than 15% of the condominium/association dues can be more than one month delinquent.
• 10% of the HOA budget should be allocated towards reserves.
• Buyers are no required to obtain a "walls in" insurance coverage policy.
• No single entity may own more than 10% of the condo units.
• No more than 20% of the total space may be used for non-residential purposes.

For up to date information on all condo projects, please call our office.

Unbelievable yields in the treasury markets today, resulting in the lowest yields we've seen in 50 years.   30 year fixed mortgage rates closing in on 5.250% today w/no points, 5.00% for a 15 year fixed.  Everyone on CNBC talking about a second allocation of the government TARP assets to be geared towards buying mortgage backed bonds this coming Monday.

While the talk on TV is centered around the rumor that the government will force mortgage rates down to 4.5% this coming Monday, we have to look at the possibility that it's really just a rumor.   If Monday comes around, and the Treasury doesn't buy the expected allotment of mortgage backed securities, we'll see a quick sell off in the bond market, and higher mortgage rates.   We recommend our clients take advantage of today's current mortgage rates by locking in before the weekend, to avoid any potential increases in mortgage rates next week.

Both stock & bond markets rallied on November 4th, perhaps as a sign of confidence that the national election is finally upon us.   Another explanation is the significant drop in LIBOR rates that we've seen over the past week.   The LIBOR is the interbank offering rate (rate in which banks are willing to lend money to each other).   The 1 month LIBOR shot up as high as 4.9% after the Lehman Brothers bankruptcy, and has slowly crept back to to it's current level just over 2%.  The lower that the LIBOR rate falls, the more confidence banks have to lend to each other, and the credit markets will improve.

30 year fixed rates still offer some of the best financing terms available for all borrowers.   We do have access to a couple of portfolio ARM lenders that are offering 5 year interest only loans to qualified borrowers at less than 6%.   Check out our daily rate sheets updated on this site, or call us today for a current rate quote.

The credit markets have improved significantly this past week, most notably the dramatic drop in the interbank offering rates (LIBOR).  The improved outlook was also accompanied by more action from the Federal Reserve, who increased the interest rate they pay banks for excess reserves by 10 bps.   What does this mean for you?   The Fed is acting in the best interests of the banks to encourage them to borrow short term, and lend long term, the crux of our credit markets.   We've seen a good drop in mortgage rates this past week, most notably on the 30 year fixed product.   Call us today for a custom quote for your mortgage.

Chris

(310) 612-9691 cell

chris@sturdivantcapital.com

Checking with a few sources today on trading desks, but it looks like the bailout is both a blessing and a curse for mortgage rates.   The banks needed the bailout to be saved, however the expected excess supply of mortgage bonds to be put out on the open market will reduce their prices, leading to higher rates.   The low interest rates that we experienced shortly after Fannie & Freddie were put into conservatorship have quickly spiked since the passage of the government bailout.   More updates to follow soon on market chatter.