IMPORTANT LENDING INFO

We thought you would want to read this from a local Maui lender:
 

The current Government purchases of mortgage backed securities are likely to end soon; this is because the perception among economists is that the economy and the housing market are starting to improve.
As many of you know, the Government has been purchasing mortgage backed securities since the beginning of January.  Interest rates went down in December in anticipation of this taking place.  At that time, we discussed that these rates were unlikely to last because of the upward pressure on interest rates as the economy begins to stabilize.  Interest rates have increased about 1% over the past month.  If the Government wasn’t purchasing mortgages, it is estimated that rates would be at least 1% higher than they are now.
According to all our sources (which are many and we track them daily), the Government is unlikely to continue to purchase mortgages after December of this year.  The purchase program could also end abruptly (before December) if the economy stabilizes further, the housing market shows more signs of recovery or if there are any signs of inflation. 
Even if the Government purchases mortgages through December, loans would have to be closed by November 15th.   For a December Government purchase given the current 60-90 day escrows, properties would need to be in escrow by August to meet these windows.
As we have been telling our clients, NOW is the time to purchase and take advantage of the low rates, large selection and low purchase prices.  People who buy now will be considered geniuses in the years to come!
Hawaii’s Premiere Mortgage is both a banker & a broker with offices in Kihei, Wailea, Kahana & on Kauai to assist you and your clients.  Some realtors have found that providing rate flyers specific to a property, can help with marketing efforts for Open House Events; Please let us know if we can assist you by providing Flyers for your events or if we can assist you in any other way!
Mahalo & Aloha,
Tricia & the Premiere Mortgage Team
Tricia & the Premiere Mortgage Team