Refis are up; so are bidding wars…
In September, 11% of offers written by Redfin, a national real estate brokerage, faced a bidding war.
That is down dramatically from 41% a year ago, but up from the 10% reading in August. It might not seem like a big deal, but in the past four years, the bidding war rate has dropped from August to September, not increased.
San Francisco continues to be the most competitive market with a 28% bidding war rate. Las Vegas and Phoenix tied for second with 21% of offers facing a bidding war.
Some disabled vets were incorrectly charged, review showed
Disabled veterans are exempt from the VA funding fee, which typically costs between 0.5 percent and 3.3 percent of the loan’s balance.
An inspector general report released earlier this year found that at least 53,000 disabled veterans had been charged the funding fees in recent years.
Gavin Newsom signed a statewide law that controls how much landlords can charge for rent. Starting in 2020, the law caps annual rent increases to 5% plus inflation.
The governor called Assembly Bill 1482 the “nation’s strongest statewide renter protections.”
With Newsom’s signature, California became the second state in the nation to pass a rent cap. Oregon passed a similar law in March.
Regulators raise appraisal threshold for first time since 1994
Now, it’s important to note that the new rules DO NOT apply to loans wholly or partially insured or guaranteed by, or eligible for sale to, a government agency or government-sponsored agency.
What that means is that loans sold to or guaranteed by the Federal Housing Administration, Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, or Freddie Mac will still require an appraisal, per each agency or companies’ rules.
Put simply, the loans that are affected by this rule are either held in portfolio by lenders or sold to secondary market investors via the private-label securitization market.
Ease of access to jumbo mortgage loans drove the Mortgage Bankers Association’s (MBA’s) Mortgage Credit Availability Index higher in September. The Index rose 0.9 percent to 183.4. An increase in the Index indicates that lending standards are easing.
Changing demographics should drive homeownership
-The average rate on the popular 30-year fixed mortgage was at 3.75% last Friday. By Thursday, it had dropped to 3.62%, according to Mortgage News Daily.
-Rates are now about 1.25 percentage point lower than they were at this time last year.
-For the average borrower taking out a $300,000 mortgage, that is a savings of about $225 on the monthly payment, or $2,700 per year.
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