Mike’s Real Estate Show

Last Week in the News
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New home sales unexpectedly rose 3.3% in April, the first increase in six months, the Commerce Department said May 27. As a result, the inventory of unsold new homes fell slightly to a 10.6 months’ supply versus the 11.1 months’ backlog recorded in March. Read the rest of this entry »

FICO ’08: What You Need to Know
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Set to debut this year, FICO ’08 is the latest model for scoring lending risk from Fair Isaac, the industry‘s leading credit-rating firm. Experts are predicting that FICO ’08 could reduce default rates between 5 percent and 15 percent. Read the rest of this entry »

Last Week in the News –Consumer prices edged up only 0.2% in April, slightly lower than the 0.3% rise that economists anticipated, the Labor Department reported May 14. Core inflation, which excludes food and energy prices, increased just 0.1%, also lower than analysts’ 0.2% forecast. Helping keep a lid on inflation was the price of hotel rooms, which fell by 1.9% in April, the third straight monthly decline reflecting cutbacks in business and vacation travel. Housing posted a surprising rebound in April as the pace of new-home construction rose 8.2%, the biggest monthly increase in more than two years, the Commerce Department said May 16. Most growth came from a 36% jump in apartment construction. Read the rest of this entry »

30yr fixed to $662,250 . . . .  5.75% at 1 pt    30 yr fixed to $2,000,000 . . . . . 7.0% at 1 pt   7/1 , fixed rate for 7 years  5.375% at  1 pt to $662,250 

   FHA loans  6.0% at 1 pt  . . . .  up to 97% of the value of the home

   Appraisal fees refunded in escrow, for Mike Kelly’s Keller Williams Real Estate referrals 

 Pete Phillippe your lending advisor, at 707-535-1263 and cell at 707-481-2737

  Currently, seniors age 65 and above own more than $2 trillion in home equity. Yet less than 1% of this total has been engaged by a reverse mortgage. That’s untapped money that seniors on limited budgets could use to meet daily expenses, pay off bills, travel, remodel, fund a new property purchase or a grandchild’s college education, or use in dozens of other discretionary ways.* Read the rest of this entry »

Up to $417,000  30 yr fixed  5.75% At 1 pt cost   

7/1 program  5.5% at1 pt              FHA up to $362,790    6% at 1 pt    $417,000 to $662,500  30 yr fixed  6.25% at 1 pt
$662,500 to $1,000,000   30 yr fixed 6.875 % at 1 pt
Pete Phillippe your lending advisor, at 707-535-1263 and cell at 707-481-2737

The Commerce Department got the month off to a good start when it reported on May 1 that consumer spending in March was up 0.4%, double the increase that economists had predicted. Consumer spending, which accounts for 70% of U.S. economic activity, is vital to the nation’s long-term economic health.

Further economic stimulus came from the Federal Reserve, which announced on April 30 that it was pushing down the federal funds rate — the rate at which banks lend money to one another — to 2%, the lowest level since late 2004. The reduction marked the seventh rate cut by the central bank since it began easing credit conditions last September. On the heels of the Fed’s action, many commercial banks announced they were cutting their prime lending rate to 5%. Read the rest of this entry »