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Weekly Jackson Hole Mortgage Update

In today’s post we though we would update you on what’s happening on a national level with the banking industry. We have been hearing from almost all media outlets that there is still a lending issue with the banks. As a matter of fact two nights ago Donald Trump was on Larry King Show and he said multiple times that banks are not lending. His suggestion to the viewers were to get owner finacing. In a future post I’ll highlight owner fiancing – how it works, when it works and who is offering owner financing in Jackson Hole.

When reading through the Federal Reserve Survey of Lenders, Winter 2009 statement it was found that 58% of lenders have upped the credit standards for consumer loans in just the past three months. That said, consumers with good credit can still borrow- Car loans is a good indicator: in October of 2008 less than 80% of consumers with good credit were qualifing for car loans. Today that has increased to over 85%. How about home loans? According to the Mortgage Bankers Association, March 2009 there was $138 billion in home loans for purchases in the first quarter of 2009 but it is estimated that about $250 billion will be loaned during the second quarter!

In local Jackson Hole mortgage news we like to ask the “mortgage expert” T.R. Pierce at the Bank of Jackson Hole. Below is the banks current rates and report:

Conforming interest rates are unchanged again this morning after Citigroup surprised Wall Street by delivering its first profit statement in more than a year. The company reported net income of $1.6 billion for the first quarter… up from a loss of $5.1 billion a year ago! General Electric also posted a first quarter profit of $2.9 billion. With businesses ranging from manufacturing to finance to media, GE is seen by many as a proxy for the broad U. S. economy and their profitability is a strong indication that the economy may be recovering!

BANK OF JACKSON HOLE
Residential Mortgage Rates for April 17, 2009

The following rates are thirty (30) day quotes for fully documented, owner-occupied and/or second home loans for borrowers with a minimum credit score of 700 which feature a one (1%) percent loan origination fee and the escrow of taxes & insurance.
PLEASE NOTE THAT CONFORMING LOAN AMOUNTS OVER $417,000 TO $625,500
ARE AVAILABLE AT HIGHER INTEREST RATES THAN INDICATED BELOW.

PROGRAM CONFORMING
(Loans to $417,000)
JUMBO
(Loans over 417,000)

30 Year Fixed
4.500%
7.875%

15 Year Fixed
4.375%
6.875%

10/1 ARM
4.750%
7.875%

7/1 ARM
4.250%
5.000%

5/1 ARM
4.000%
4.750%

3/1 ARM
5.000%
6.625%

30 YEAR FIXED RATE FHA LOANS TO $693,750: 4.875%
PRIME RATE: 3.250%
ONE YEAR LIBOR RATE: 1.915%

If you would like additional information on the Jackson Hole Real Estate market please contact us – the Jackson Hole Experts – Garth and Christy Gillespie. Feel free to call us toll free at 877-739-8056.