Seller's Market Ahead?

When you work for the nation’s largest private real estate organization, you learn a lot about today’s marketplace. We speak from hands-on experience, not from a press releases or surveys of a cross-section of individuals scattered here and there. We speak from one-on-one client expectations, client behavior and client requirements…in short, with authority. Frequently, our information arrives months ahead of the market as well.

We may actually be heading into a Seller’s Market. Our absorption-rate report points to his happening in the months ahead here in Stamford. No one is talking about this anywhere.
It might seem like a smart move to wait to buy on the theory that there may be a future $15,000 tax credit, much higher than today’s $8,000 one for first-time homebuyers making less than $90,000. However, interest rates are at historic lows and home prices remain low and dropping, though at lower rates recently. It can take 2-3 months to close, so buyers waiting until November will out of luck either way. Property must close before Dec. 1 in order to qualify. Mr. Jim Weichert still describes to his thousands of agents across the country that today’s market for buyers as the “best buying opportunity in years,” by the way.

Our mortgage folks report there is good news on the horizon. The temporary mortgage limits for Fannie Mae, Freddie Mac & FHA have been extended to September 2010. Those are:
1 Unit: $ 708,850
2 Units: $ 907,350
3 Units: $1,096,750
4 Units: $1,363,000 (Owner occupied)

Also: The benchmark 10 year Treasury yield has climbed notably over the past week causing rates to begin to increase again.

4. July 31st marks the date of the new RESPA laws going into effect (RESPA Reform, Mortgage Disclosure Improvement Act and Truth in Lending). All lenders must comply. This will result in the following:
· More transparent, level and fair regulation of our industry & consistent lending practices among all lenders
· Additional controls to prevent deceptive lending practices
· Even more consumer protection
· Consumers that are better infirmed and more confident about the mortgage process

Basically, the Truth in Lending (TIL) disclosure must be done immediately upon receipt of a mortgage application, and now will be completed by the mortgage broker. If an application is taken in person, standard fees can be collected. If application is taken on the phone, three business days must pass before collecting fees. If there is any change in the application, or if the APR (Annual Percentage Rate) changes more that .125% up or down, another TIL must be done and another three days must pass before the closing.

Why would anyone need a new Truth in Lending disclosure?
· The loan amount changes
· The loan program changes
· Frees are higher that initially disclosed
· Additional fees not originally disclosed must be charges (as in buying down the rate at the last minute)

How do these changes affect you?
· When determining closing dates, allow appropriate time for disclosures

All for now. I hope this information is of use to you. Please feel free to ask me any real estate questions you may have.