"THE FUTURE INFLUENCES THE PRESENT JUST AS MUCH AS THE PAST."
"THE FUTURE INFLUENCES THE PRESENT JUST AS MUCH AS THE PAST." While getting your mind around that brain-bender from philosopher Friedrich Nietzsche might be a bit of labor...the point of influence is very well-taken. And while the present health of the housing market is certainly influenced by the present health of the labor market - last week brought a bit of welcome good news on the housing front.
The Pending Home Sales number came in with a surprising 8.2% boost in February. Although the report is only a prediction of sales that will close in a month or two, it's a good sign for the housing market...not to mention that it's very good news for those homebuyers who are now under contract in time to take advantage of the Homebuyer Tax Credit before the deadline! Remember, contracts must be in place by the end of this month - April 30th - in order to qualify for the tax credit.
But indeed, the health of housing will be influenced by the labor market - and a lot of work remains to be done in that area of the economy. As you can see in the chart below, the national Unemployment Rate remains at 9.7%, but has moved below the 10.1% rate seen in October.
Chart: U.S. Unemployment Rate (By Month)
Although the employment picture overall still needs to see some real improvement, there's still good reason to believe that housing will continue to stabilize over the next year, and then begin to move modestly higher. With home loan rates having improved this past week - buyers still have a chance to get into a great home loan rate...and get the Homebuyers Tax Credit before the deadline of April 30th.
SPEAKING OF DEADLINES - DON'T FORGET THAT APRIL 15TH IS THIS THURSDAY.
Josh Jelsing
Comments
HUD to allow electronic signatures on FHA transactions...
HUD came out with a new Mortgagee Letter, stating that the FHA will accept electronic signatures on third party documents "included in the case binder for mortgage insurance endorsement in accordance with Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA), as applicable." It is good for regular mortgages as well as HECM's, and applies to documents that are originated and signed outside of the mortgagee's control, such as a sales contract. Remember that the origination case binder must be maintained in either hard copy or electronic format for two years from the date of endorsement [HUD Handbook 4000.2 REV-3]. Lastly, just because HUD allows it doesn't mean the lenders will. The lenders still have the right to attach their own "overlays" or guidelines to go above and beyond what HUD will allow to appease their investors.
Josh Jelsing