With the introduction of jumbo mortgages being available at an 80% loan-to-value up to $2 Million, we are feeling that the mortgage lenders are getting ready to ramp up their other offerings as well again. Lenders are being cautious, however, while offering this jumbo product. They are requiring 720+ credit scores, substantial after-close cash reserves, and strong proof of continuing income. But, it’s still a product we can use, and welcome its return.
The economy is strengthening, the stock market is at its high in 18 months, and 160K-plus non-farm jobs were created last month. Also, NAR announced that its “Pending Sales Index”, a metric based on contracts signed in Feb 2010, rose 8.2%, marking its second largest gain on record, and the largest since October 2001. NAR attributed that gain largely to buyers scrambling to get their hands on the soon-to-expire federal tax credits. But good news, nevertheless, is welcome news. Understand, however, that as the economy begins to heat up, rates will begin to rise, as well.
Ginger Sullivan, Ansazi Mortgage