Last week, I got reeled into watching a movie called The Menu. I was told nothing about it and simply said yes to avoid a fight with the ladies in the house.
Without giving anything away, here is what I would say. For a while, I wasn’t really following it and didn’t completely understand what was going on. That is not unusual.
What was unusual were the twists and turns in this movie. Some of the craziest things I have ever seen. Absolutely nuts.
Still not entirely sure what I watched!
Condo Financing Update*
Quick reminder, particularly for Realtors who list condominiums.
There were some notable changes to condominium association reviews that took effect at the beginning of August.
The good news is that investor concentration, or the number of units that are non-owner occupied, is no longer a consideration and does not impact the warrantability of the project.
There have, however, been some notable changes to reserve and insurance requirements.
If a project cannot be warranted, commonly referred to as non-warrantable, financing options can change significantly. Regardless of the strength of the borrower, the available loan programs and terms a lender can offer may be different.
If you have a condo that you will be listing, we would be happy to help you determine whether the project may meet warrantability requirements.
Happy to help.
Market Notes
It was a bit of a challenging week for the market.
For the most part, mortgage rates ended the week roughly 0.125% higher across the board.
Nothing particularly new drove the move. There was not a lot of economic data hitting the market, so rates were influenced in part by oil prices, which also ended the week higher.
The saving grace was an announcement from the Treasury that it would at least double its long-term buyback operations. Investors reacted positively, which helped keep a lid on some of the upward pressure.
We will see where we go from here, but the story appears to be much the same as it has been since early March. Unless or until there is a resolution in the Middle East, the market will likely remain volatile and choppy.
This week could bring more volatility as the Fed holds its annual conference in Jackson Hole. Market participants will be listening closely for clues about policymakers’ thinking on short-term rates in the near term.
More to come.
Looking Ahead
Enjoy a great week. As always, don’t hesitate to reach out with any mortgage related questions or needs.
-Steve-
*All loans are subject to credit approval and program guidelines.