A LOT OF GLOBAL TURMOIL = LOW RATES, see note at bottom

So, today being Tuesday, here's what's new in the mortgage world.  For the past few weeks, mortgage rates have pretty much been governed by movement in the stock market.  When stocks go up, interest rates go up (stocks up, bonds down, bond price down means the bond yield increases causing rates to go up as well).  Put simply, people move their investments from bonds to stocks with commensurate rate increases.

Thus, recently rates have been around 5% for a 30 and 4.375% for a 15.

It seems that the constant discontent with the appraisal AMC's (appraisal management companies) has caused some good effect in that they seem to be trying to use more local appraisers rather than"out of towners" who don't know our market.

Great jumbo rates are starting to reappear as the banks get back into the jumbo market.  I'm seeing rates in the high 5's for a 30 with jumbo ARMS much lower.

What a time to buy!

EXTRA, EXTRA, this just in, Greek/Goldman Sachs situation has made the stock market tumble.  Interest rates have come down nicely due to this, now UNDER 5% !

Rates Hold Steady Despite Lack of Fed. Support

Since the Fed. stopped buying mortgage backed securities, interest rates have not taken much of a hit.

Their support ended the March 31 and many, including myself, were apprehensive about a huge rate increase.  It appears that independent investors have taken up the slack in buying up the securities and rates remain terrific!

I saw 4.875% on a 30 year and 4.25% on a 15 year on today's sheets.

Stop (or modify) HVCC!!

I have a real gripe with the new HVCC act which came out of Washington and was supposed to help and protect the public when it came to appraisals.  It has spawned the use of AMC's (appraisal management companies) which all too frequently produce unusable appraisals done by appraisers who might come from other counties and have little or no general knowledge or experience in doing an appriasal for a property in Santa Fe!  All too often we see rediculously low values and or shoddy work due partly to the fact that the AMC keeps the full fee and pays the appraiser a portion of it often to the lowest bidder. This doesn't pass the stink test.

This is a bad law which has the real estate industry, buyers, sellers, banks and realtors up in arms as transactions are being torpedoed left and right.  It needs to be "put on hold", sunsetted or repealed.  There is a limit to regulation beyond which it becomes cumbersome and anti-productive.  Appraisers, to be licensed must adhere to a strict code of ethics.

In looking at rates today I saw 30 year fixed under 5% with 15 years at 4.25%.

We May Have Reached A Turning Point!

Here's how I see it.  I think home prices have bottomed out and are stable. I also think we could expect a very slight improvement in prices over this summer.

What I do know is that interest rates are creeping up, about 5.125% today, due to the Fed. pulling out of the mortgage backed security market. Will they continue to creep...I don't know.

If you are a first time buyer or a current buyer, those tax credits are available if you are under contract by the end of this month and close by the end of June.

I guess what I'm saying is now might be the time to buy or refinance before this historic moment fades.

Guy.