The Arkansas Realtors Association released a report yesterday that indicates that home sales in Arkansas are up about 20% compared to the same time last year. The report shows that there were 2,401 homes sold last month in the state.

This is a good sign for the state when comes to housing. The most encouraging thing to me is that we have a nice increase without some sort of special program or stimulus. The next step would be to maintain this momentum.

There are a few changes that take place October 1st but they should have little to no effect. Rural Development Loans will now have a monthly MI Fee in addition to the normal up front guarantee fee. The upfront fee is being lowered however from 3.5% to 2%. In plain English this will add approximately $35 per monthly to a monthly payment on a $100,000 home. FHA is lowering its lending limits in some areas of the country but it does not look like it is going to affect Arkansas. The last change which is positive is that the VA funding fee is being lowered. The chart below shows the different shows a comparison between the old and new VA funding fees.