Weekly Mortgage Update

The Gross Domestic Product number (how we measure our economic growth) dropped  7/10  of a percent  from the 1st quarter of 2010 to the  2nd quarter.  And there is some concern of deflation as the recovery appears to be loosing steam.  But again, don’t panic.  We’re still positive at 2.4% growth.  And if you look at the total picture, which includes capital expenditures and domestic consumption,  we’re seeing some good numbers.  Also, the Case-Schiller index came out positive again showing a continued recovery, albeit slow, in the housing market.  So, the economic recovery continues to chug along at a slow-mosey.  But it’s the comparative weakness to the 1st quarter that has helped fuel the recent drop in rates.

Now is where your customer’s greed kicks in, “Oooo, I think I’ll wait for rates to drop further.  Maybe I can get 3.875!”  It’s our job to remind them where we were just a few months ago.  The 1% drop in rates has given them a GIFT of  TENS of  THOUSANDS of dollars more purchasing power.  Remind them that the odds of it going higher are much greater than it going lower and that, in the words of an old friend, “pigs get fat and hogs get slaughtered.

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

This week 30 yr fixed rates remained between 4.25% and 4.5% 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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