It's All About Jobs
A week jobs report and a less than glowing leading indicator report from the Philadelphia Fed
continues to underscore the weakness in our economy. Also, state and local governments project
more job losses as they firm up budgets for the coming year. In the slow month of August, nothing
is surfacing to tell us that things are getting better and THAT puts the spotlight squarely on the
negative news, UNFORTUNATELY.....
The impact on rates is that for the THIRD time this month we are back at all time low levels.
BUT…each time we get there, rates go back up. If you’ve noticed, our rate range has remained
unchanged for 4 straight weeks. This tells us that investors have a minimum rate of return they
expect on mortgages and each time we get there, they are unwilling to take a lower rate.
SO, although rates are moving all day, throughout each day, they really are staying fairly steady.
The reality here is that rates are more likely to go up from here than down.
So tell your clients….it’s not likely going to get any better than NOW to buy…or refinance.
Speaking of refinancing, if your past clients want to refinance, I’d love to help them. I can
guarantee them great service vs. the typical 800 number and it will allow me to tell them how
FANTASTIC you are and to remind them to refer more clients your way.
This week 30 yr. fixed rates remained between 4.25% and 4.5% depending on program, credit and points.
Have a great week and please have your buyers call us so we can get them approved to buy.
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Mortgage bond prices rose last week helping recover some of the recent losses. We started the week with weaker stocks helping the mortgage bond market. Overall trading was choppy with data coming in all over the place. Higher than expected core producer price index data mid week helped erase most of the Monday morning improvements. This was countered by higher than expected jobless claims Thursday that pressured stocks lower. The jobless numbers remain troublesome. It is difficult for the economy to expand with a return of some jobs. Rates fell by about 1/8 of a discount point for the week. auctions will continue to receive focus as record debt continues to hit the financial markets.
Bailout It was August 2007 when rates on jumbo loans disconnected from reality and skyrocketed. This was the beginning of the credit crisis, which to some extent has touched everybody on planet earth. of the banking and automotive industries, a stock market in freefall and house prices not too far behind. Stocks have recovered somewhat, and in some places (Denver) housing is showing some life as well. Most economic pundits believe that we are not out of the woods and things may become worse before they get better. The good news is that through actions from the Federal Reserve interest rates are at all time lows, presenting an opportunity for many homeowners to receive a self funded bailout by dramatically reducing the interest rate on their mortgage. Nobody knows how low rates will go but there is certainty that rates are at historic lows and they will not last forever. Saving money today makes a lot of sense in these difficult and uncertain times. |
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WR Starkey Mortgage, LLP - A different kind of company...where people come first! |
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