Weekly Mortgage Update

In a slow week for economic news, ‘worry’ is still with us as new and existing home sales numbers came in lower than expected. While this scared some, it is the inevitable aftermath of the home buyer stimulus and this effect will be with us through June. On a positive note, core durable goods orders showed continued, slow improvement, underscoring the fact that the overall economy is still moving forward. We are improving, but in a world of rapid responses and quick solutions, it’s hard to be patient. Remember, some economic indicators lag behind the recovery, which is why unemployment remains high and inflation remains low…and with LOW inflation comes LOW RATES.

BUT you are a buyer and are sitting on the fence because there is no more incentive. And YOU think the $8,000 is gone. WRONG! If a borrower bought in April, their rate would have been approximately 5.125%. The payment on their $200,000 house is the SAME payment they would make TODAY on a $208,000 house at 4.625% (1/2% lower). The lower rate gives them the same benefit as the tax credit, it’s just in the form of more house vs. a tax refund. And, least your buyers think home prices will drop, existing home inventory is slowly coming down, and that bodes well for pricing.

This week rates ranged between 4.5% and 4.75% depending on program, credit and points.

Ted Clay
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963

Office: 405-341-8644
Cell: 405-826-1320
e-Fax: 1-866-208-5309

tclay@wrstarkey.com

www.TedClay.com