A very good article on tax deductions and interest as we begin tax preparation and filing season in earnest for 2007 taxes. My advice is always! contact and communicate with your tax preparation professional regarding any type of deductions or real estate transactions that may impact your tax obligations. Since I do not sign your tax return as the "Tax Preparer" I am not qualified to give you advice in tax matters.
I enjoyed the article about "Warring Housing Price Indexes", probably becomes it further ingrains in to look for the data and the source of the data when reading "news" articles about our markets--different sources of data will produce different results that writers, pundits and editors can use to make their positions. Often the further in a story information is buried, especially if on the continuation on page E9, the greater the chances that information does support the writer's opinion--always read or scan the full story!
I hope you have been getting my updates the past few weeks on the Fed moves. We are looking at a very volatile market and conforming rates have been pushed against very strong resistance levels several times the last week (basically 5.375% at 1 point for purchases with 10% or more down and FICO scores over 720). Almost daily economic information is being released that shows contradictory information to the prior days economic information--economic growth slowing, economy still growing at a sustainable rate, economy stalled, etc. With each piece of news investors react causing rates and stock prices to move accordingly. We are strongly advising all clients to lock in their rates on applications on purchases when they open escrow and for those looking to refinance lock when "your number is hit." Playing the market in times like this is a 50/50 proposition and I always counsel, gamble in Vegas with "fun money" not at Stratis with your mortgage payment.
Finally, it appears that as I mentioned on my Mortgage Blog earlier this week the Senate is unable to control itself and is slowly breaking down the stimulus package that quickly sailed through the House with bipartisan support. Instead of having legislation through Congress this week and on the President's desk for signature this week it appears to be delayed for an undeterminable amount of time as Senators argue over who should get what and how much. While they bicker and dicker increased loan limits on conventional and FHA mortgages languish waiting for agreement. My guess is that unless something extraordinary happens, such as the members of the Senate doing what is expedient rather than what is political, we will not see loan limit increases before April, if at all--sorry to be pessimistic about this and I hope I am wrong but the political reality is with elections in November for the Presidency, one-third of the Senate and all of the House stimulus (i.e. spending) packages are target rich environments for politicians to load up on pork.
Let me know how I can assist you, a family member, friend or co-worker with their mortgage or debt management needs please do not hesitate to contact me.
If you have a subject you would like me to opine about on my mortgage blog let me know and I will see if I can oblige your request!
As we begin the month here is a look at 30 year fixed rates for purchase transactions with at least 10% down for conforming and 15% down for Jumbos and a cost of 1 point and a FICO of 720 or greater:
Conforming has dropped to 5.375% and remain flat on Jumbos 6.75% :
RATES ON February 1, 2008
Have a great February!
Dennis
