Market Update + FHA 580 FICO

We are still able to close FHA Loans down to a 580!

Mortgage bond prices rose last week helping mortgage interest rates improve. Stock weakness early in the week helped bonds improve. But yesterday, Wells Fargo released first quarter earning of an estimated 3 billion dollars, exceeding expectations, which was a very positive sign. The trade deficit came in at $25.97 billion, lower than expected and the lowest level since 1999. Weekly jobless claims were not as bad as expected as well.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

For any pre-qualifications or 2nd opinions on loan scenarios over the weekend, please call my mobile at 480-225-2987