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Articles, STAT from ARMLS & Mortgage News

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Blog by Doug Ingersoll | September 22nd, 2015

The latest issue of STAT from the folks at ARMLS who manage a little database called MLS. Consumers please take note of the information regarding Zillow. You can't believe everything you read from those proclaiming to be knowledgeable.

Neighbor Sam sent me a couple of articles:

"New rules make it tougher for people with college loans to buy houses" from the Washington Post. Thanks to the Federal Housing Administration the net effect of the changes, say mortgage lenders and analysts, will be to make FHA loans, which traditionally have been the go-to financing source for young, first-time and moderate-income purchasers, less attractive. 

"Lenders are cracking down on homes with termite infestation" Termites are everywhere and homeowners need to be vigilant about eyeballing the perimeter of their homes. The termite guy quoted in the article made a good point that applies to Realtors as well. We cant see past the wall or predict something we cannot see. The best direction a Realtor can give a buyer is what type of trade person to contact for an inspection.
From Stuart Crawford at VIP Mortgage:
The most highly anticipated Fed meeting in years happened last week, and contained (short term) good news for mortgage rates.  As a result, mortgage rates ended the week slightly lower. 
Heading into Thursday's Fed announcement, investors were split about whether the Fed would raise the federal funds rate for the first time since 2006.  The Fed chose to make no change. The Fed's Statement cited concerns that weaker global economic growth could exert downward pressure on U.S. inflation rates.  Fed officials lowered their forecasts for inflation for the next several years.
Mortgage rates slightly fell following the comments from the Fed.  They fell because expected future inflation levels are a key component in setting mortgage rates.  The Fed's guidance lower made investors willing to accept lower rates. 
In addition, investors were comforted by another inflation reading which was consistent with the Fed's guidance.  The consumer price index data (CPI) released revealed that core CPI inflation, which excludes volatile food and energy prices, was again just 1.8% higher than a year ago.  Inflation has held steady at low levels all year. 

Stuart can be reached at 480.776.2954