Weekly Mortgage Update

We continue to slog through this economic ‘slow down’ and many might ask the question, “Why is it taking so long?” Nerves. As Europe continues to unravel, no one really knows what impact it will have on the US. This week Spain was downgraded, Hungary announced that they were in trouble, and the Greek woes continue. So, unless the US economy can CONSISTENTLY show improving strength, nerves remain on edge. If the US were to show consistent improvement, nerves would calm because we are a big enough economic engine when we’re healthy to weather storms from around the world…but when we are weak, no one is too sure. This week the jobs report came in much weaker than anticipated, so while we had good economic news last month, it was not followed up on this month, and the consistent, sustainable improvement is still not there.

The result is that no one is hiring unless they have to. Consumers and business aren’t buying unless they need to. Global money is not investing like it used to. Money stays predominately in bonds. And this means WE STILL HAVE GREAT RATES!!! Remember, when money flows into the bond market (which includes mortgages) the bond makers (for us this would be Fannie and Freddie) don’t have to pay as much in interest to attract the money….so rates can stay low. But don’t worry, by year end our economic engine will be speeding up. Unfortunately, that will force rates up too.

This past week rates ranged between 4.625% to 4.875% depending on program, credit and points.

Ted Clay
Sr. Loan Consultant

Office: 405-341-8644
Cell: 405-826-1320



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