#5.  Federal regulators have dropped a proposed requirement to make the min. down payment 20% for Conventional residential home loans.  (Whew! – that’s welcome news!)

#4.  Fannie Mae and Freddie Mac are finalizing their plans to BRING BACK the 3% down home loan program.  (This won’t be a deal breaker because the cost of private mortgage insurance with 3% down is close to FHA loans and interest rates are higher.  The PLUS factor in this is that Conventional PMI can be eliminated without having to sell or refinance, as with an FHA loan).,

#3.  Fannie & Freddie have also reached an agreement with mortgage lenders defining what kinds of mistakes on loans could result in penalties years after they are issued—a highly anticipated resolution that could lower barriers and restrictions on borrowers with weak credit.  (Underwriters would be more likely to approve loans with possible credit issues that could result in future buy-backs).

#2.  More than 17% of home appraisals report a value less than the contract price, a trend that could indicate home values have stabilized or appraisers are being more cautious when valuing properties today.  This conclusion was drawn by Platinum Data Solutions, a provider of collateral valuation and risk assessment technologies, which analyzed data collected from FreeAppraisalReview.com. The site’s data shows that home values have plateaued or that appraisers are simply taking a more conservative approach when valuing properties, said Phil Huff, Platinum Data’s CEO, in a statement.  (It’s rare that local appraisals don’t meet the value, in my experience).

#1.  Existing Home Sales hit HIGHEST LEVEL in a year.   Sales of previously owned U.S. homes rose in September to the highest level in a year, adding to signs that residential real estate will be a plus for the economy.  Closings advanced 2.4% nationally for the month with purchases 1.9% higher than the same period one year ago.  Traction in the labor market and falling mortgage interest rates are helping underpin demand and providing a buffer for the economy.  (Good news all of the time!!)