Financial Update by Maurice Soussé

Happy Fourth of July!!

Interest rates are up a touch during this tough week for treasuries. The 10 year yield has pushed up quite a bit hovering at 3.21 this morning driving rates up by about a .25% from last week. As the FED ends their QE2 purchases this coming Thursday, rates should boost modestly.

We have some great news for cash buyers. FNMA will now allow a loan to be placed on a property that has been purchased with all cash during the last 6 months. Previously, FNMA would not allow a loan for 6 months from the time of „transfer of title‰ on a property. Their new guideline will allow an all cash buyer to immediately place a loan on the property. For example, if a buyer pays all cash for a $350,000 home today, we can finance 80% (owner occupied) of that property right away giving them back $280,000 less closing costs. Great stuff!