On the rates front, Freddie Mac's latest Primary Mortgage Market Survey (PMMS) found the 30-year fixed-rate mortgage (FRM) averaged 3.85 percent with an average 0.6 point for the week ending May 14. The 15-year FRM this week averaged 3.07 percent with an average 0.6 point.
"Mortgage rates rose for the third consecutive week as 10-year Treasury yields continued to climb," said Len Kiefer, deputy chief economist for Freddie Mac. "The labor market continues to improve with U.S. economy adding 223,000 jobs in April, a solid rebound from merely 85,000 job gains in March. Also, the unemployment rate dipped to 5.4 percent in April as the participation rate ticked up to 62.8 percent and jobless claims were far less than expected."
Click here to see the full article by Phil Hall in National Mortgage Professional magazine.
Have you heard about the new Wells Fargo LIFT program??? While there is a lot of buzz about the program to generate buyers, not all clients will fit into the program. Not to mention that after the set number of families are awarded funds and there is no money left, (just like the Welcome Home program each year) buyers and agents are left asking themselves, now what??
Queen City offers many different programs that might apply based on eligibility, including but not limited to:
1. City of Cincinnati ADDI (American Dream Downpayment Incentive) Program- up to $5000 grant to be used in the Cincinnati neighborhoods (just like LIFT) and the funds can be used for your downpayment and towards closing costs/settlement charges. In many cases this might be better than LIFT because the minimum amount the borrower needs to contribute into the transaction may be less.
2. OHFA- Ohio Housing First time homebuyer program where the borrower is only responsible to bring 1% of the purchase price and the rest can be paid by the seller, AND the buyer is given a forgivable grant from the State of Ohio for 2.5% of the downpayment.
3. USDA- 100% financing available for borrowers who are looking in rural eligible areas.
4. FHA- 3.5% downpayment requirement; 100% gift funds are acceptable; seller can pay settlement charges and closing costs.
5. CAM programs for unique properties in the City- 3% down, NO MI.
6. Conventional loans- 5% down payment required but all funds can now be a gift from family member.
After the dust has settled and the buyers are identified thru the buzz of LIFT, we can help get them closed with these alternative solutions. Please have your prospects contact us as soon as possible to explore their options. We are here to help you sell more houses, and can refer your clients to a LIFT provider if that makes the most sense.
Please contact us today to let us know how we can help you.