We had a very informative Roundtable yesterday.  Thank you to those who attended.  This was our first one on YouTube live and we are still working out the kinks.  If you missed the broadcast and would like to see it, click here:  https://youtube.com/live/2evBKXJiamQ

 Here are the highlights:

1. Market Update – the Freddie Mac Primary Mortgage Market Survey shows the 30-year fixed mortgage rate at 6.58%.  This is a little better than last month.  Where will rates go?  We looked at economic factors.  The Fed Funds rate is just one factor.  When the Fed decreased the Fed Funds rate by 0.50% last September, mortgage rates actually went up.  Unemployment remains at  4.2%, and has stayed steady around this rate for about the last year.  The Consumer Price Index (CPI) is at 2.7% and remained unchanged since last month.  The Producer Price Index (PPI) went up 0.9% to 3.3%.  The PPI measures the average change over time in selling prices received by producers.  It can be a leading indicator as to when prices will increase to consumers.  If prices increase, then the mortgage rates will likely not go down.  We’ll be watching. 
2. Creative ways to get a lower rate – we talked about different ways to get a lower rate.  There are temporary buydowns which will reduce the rate annually, such as a 3/2/1, 2/1, or 1/0 buydown.  The temporary buydown is paid by the seller.  We also talked about whether a permanent buydown would be a better use of seller funds.  You can also use a temporary buydown on rate/term refinances.  Another way to get a lower rate is an adjustable-rate mortgage.  ARM rates are coming in lower than 30-year fixed mortgages.  Also, there are shorter term loans with lower rates, such as a 15-year fixed mortgage.
3. Blended rate – we went over the calculation of the blended rate.  When a customer has a first and second mortgage, the blended rate is the effective rate paid when considering both mortgages.  When determining whether someone should refinance, you should compare it to the blended rate.
4. Trigger Leads – the trigger leads bill, which prevents the practice of credit companies selling your information when your credit is pulled, passed the House and Senate and is on the President’s desk for signature.  In the meantime, we are advising clients to go to www.optoutprescreen.com to opt out of solicitations they may receive as a result of their credit pull.
5. Freezing your credit – this is a great way to help prevent identity theft.  By freezing your credit, your authorization must be obtained before someone can pull your credit.  So, if your identity is stolen, this could stop someone from applying for credit under your name. 
6. Condos – a good tip is for the Realtor to look to see if financing was obtained for sales in the condominium association in the last 3-6 months.  If there was financing, then there is a good chance the condo will be approved.  However, if there have only been cash sales, then it could be an indication that there could be difficulty getting financing.
7. Occupancy Fraud – The Trump Administration asked for the firing of a Fed Governor who is alleged to have committed occupancy fraud in her mortgage applications as she applied for primary residence financing in 2 different states within 14 days.  We went over the Deed of Trust language which provides that you must occupy the premises within 60 days of closing, and must live in the property as your primary residence for one year.