Shelter Six:  Don’t Count the Mortgage Payment for Home Buyer is Selling

Conventional guidelines now allow Shelter to not count a mortgage payment for a Buyer’s current home if the home is under contract and financing contingencies have been cleared.

Shelter’s SmartEdge program allows self-employed borrowers to qualify using only one year of tax returns if the business is two or more years old.

Now that proposed tariffs with Mexico have been averted, focus has shifted to negotiations with China with talks expected to resume on June 28 at the G20 Summit.

May Retail Sales were very strong and up .5% from April.  Despite the strength in consumer spending, inflation continues to be lame and rose less than expected in May.

One of the main reasons housing has struggled recently is that home prices have risen twice as fast as inflation.  In the last 12 months, the S&P Corelogic Case-Shiller National Index is up 3.7%, double the 1.9% inflation rate.

Measured in real, inflation-adjusted terms, home prices today are rising at a 1.8% annual rate compared to a 1.2% rate since 1975.

Rate Update

Despite the volatility in the markets over the last week, the net effect was minimal for mortgage rates, which ended up just slightly higher and still near two-year lows.

This Week

Housing Starts will be released on Tuesday and Existing Home Sales on Friday.  The Federal Reserve will also meet on Wednesday with no change in rates expected.

June 17, 2019 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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