Financial Update by Maurice Soussé

Happy Friday,

So, are you going to wait for rates to go up or prices to go up before you buy??? Everyone has to recognize this is the bottom. The unemployment figures came out today and the hopes of QE3 from the FED are long gone. The January jobs report showed an increase of 243,000 jobs in January with unemployment falling to 8.3%. Job numbers are the #1 indicator for the economy and I assure you Chairman Bernanke is watching and saying “why did I say I was going to keep rates down until 2014?” The 10 year treasury bill jump up to close at 1.95, up from 1.82 yesterday. Rates will rise when this happens so now is the time to buy!!!!!

Another item came to our attention this week that I wanted to share with you. Please remember when an appraiser calls you to set an appointment to ask where exactly is he coming from. Have them be specific. If an appraiser is coming from way out of area, let them know you will call them back to set a time and promptly call the lender to have the appraisal re-assigned to a “local” appraiser. Now, that doesn’t mean someone 30 minutes away isn’t qualified, but, maybe an hour away or another full county away can certainly make a difference. Try to find out what they know about the area before you set the appointment. The Appraisal Management Company (AMC) won’t always re-assign it, but, often they will if you make a justifiable case.

Rates are up a bit this week with the rise in the 10 year treasury, but, rates are still great. Remember that HARP II is just a few weeks away and FNMA and FHLMC loans may be eligible to refinance with an unlimited loan to value (meaning NO equity).

A great Chinese proverb is “Make happy those who are near, and those who are far will come”. Have a blessed weekend.