Slow EconomyThe economic news this week reconfirms that the economy is moving forward but slowly.  Durable goods orders, ex-transportation (i.e. without high-ticket aero orders which sometimes artificially skew the numbers) were the best we’ve seen in 5 months and corporate profits continue to improve.   Housing sales and starts came in lower than last year but have stabilized since the sharp drop off in July that was due to the post-sugar high created by the home buyer tax credit.  The good news here is that we are dealing with ‘real’ housing numbers and not ones artificially influenced by government intervention. The ‘real’ housing economy is slow, but IS moving forward as the overall economy continues to slowly improve.

 

     PS – DON’T FORGET ABOUT THE FHA CHANGES COMING OCT 4th

 

The US Economy should continue to improve. If you know that growth right now is basically flat, how do you generate sales?  YOU could use rates, current house prices, or job growth to convince your buyers that ‘Affordability’ is the word.  If you can show your clients that with the adjustment in house prices and rates, today’s payment could be anywhere from 75%-60% of what it was 2 years ago, and that the local and national indexes are showing that house prices have bottomed, it’s a no brainer to buy today.

 

This week 30 yr. fixed rates ranged between 4.25% and 4.5% depending on program, credit and points.  Have a great week and please ask your buyers to call us so we can get them approved to buy or refinance.


Market Comment - Week of September 27th, 2010

Mortgage bond prices ended near unchanged last week keeping mortgage interest rates historically low. The Fed meeting Tuesday went as expected. The Fed kept interest rates unchanged and noted they will keep rates low for an extended period of time. Mortgage rates were positive through the middle portion of the week. Unfortunately stronger than expected data and surging stock prices the latter portion of the week eroded the earlier positive movements. Despite those negative movements rates finished near unchanged overall for the week.

The Treasury auctions will be important this week. If foreign demand for US debt remains strong mortgage interest rates may remain lower. Consumer confidence will set the tone for trading the beginning of the week.

A special thanks to Lou Tornambe with WR Starkey Mortgage for this report.  Well done Lou!

Lou Tornambe Loan Oficer

WR Starkey Mortgage Company

www.LoansByLou.com