Weekly Mortgage Update

In a shortened holiday week with little major economic news, mortgage rates continued to stay at all time low levels.  We did have a bit of an up-tick mid week when the French finance minister stated that the stress test being performed on the European banks will show that they are ‘solid and healthy’.  This helped ease Euro-fears and money flowed out of the US bond market.  Remember, when investors pull their money out of the US bond market to invest it elsewhere (in this case Europe), it causes rates to increase in order to entice investors to stay. The stock market also had a good week creating a similar ‘out flow’ effect.

Also this week, Dallas Fed President Richard Fischer stated that corporations have plenty of liquidity but are not putting it to work for fear of the current anti-business legislative environment.  His comments echoed much of the talk in business circles today and prompted President Obama to claim that “we are not anti-business’.  But, between Financial Reform, Healthcare Reform, possible Cap and Trade, the Carbon Tax etc, corporations are understandably reluctant to make big investments in such a legislatively uncertain climate, and when companies sit on their cash, job creation doesn’t happen. So, the economy is still weak and rates ARE STILL at record low levels.

State Bond Money still available with a rate of 5.25% and 3.5% Down Payment Assistance.

This week 30 yr fixed rates remained 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



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