Frog Says NEVER Give Up!
Here is some good news , some no so good news, and the falling stock market is the ugly news.
THE GOOD NEWS FIRST:
Not often do we report on the water level at Lake Mead, but this is really good news for Las Vegas. Over the past 10 years the water level has dropped. The Colorado River supplies Lake Mead with water. Colorado River is having is 3rd wettest year in the last 50 years. That will raise the Lake Mead Water Level as we will get our biggest boost in 15 years.
Check out the article in the Las Vegas Review Journal: http://www.lvrj.com/news/snowfall-giving-lake-mead-a-lift-127085668.html .
THE NOT SO GOOD NEWS:
FHA loan limits will drop from $400,000 to $287,500 on October (possible date extension in the works.)
While any drop is not good, the drop may not hurt our housing market that badly. In this past year only 278 homes were purchased with FHA loans that were over $287,500 out of the 2,398 sales over $287,500. 50% of the 278 would have been able to get a conventional loan with 5% down. So 10 sales a month out of roughly 4000 sales per month would be affected by the loan limits lowered to $287,500. Another way to say it: 1/4 of a percent of the sales were affected.
There are mortgage companies that offer the most aggressive conventional financing. Some offer 95% financing with 660 FICO scores. (We have the list for you.)
THE UGLY NEWS: The Stock Market has dropped over 8% in the past with S and P downgrading us from AAA to AA+.
My suggestion would be to not take a peek at your IRA or 401k statements…
The Dow Jones dropped over 1000 points for the past 8 days over dropping 8%.
A typical 401k account with $100,000 drops roughly $8,000 in value.
We are watching the effect that the downgrade will have on our credit and mortgage rates.
Our Job Recession numbers posted 154,000 new jobs for July.
We will keep you posted. Let’s have a nice week. We are alive and well. Hope you are too.
