Like a trip down a Oklahoma hill country road, we go up, down and around but end up at the same elevation as before. Earnings for IBM and Apple came out exceeding expectations, but were less than enthusiastic about the future. Earnings for Amazon and American Express beat estimates but manufacturing indicators (i.e. Capacity Utilization) came in lackluster. It all adds up to a mixed bag which continues to underscore that we are bumping along the bottom of the economic cycle. This is what is keeping unemployment claims at their current levels. Still companies ARE making money, and people ARE buying houses as housing starts came in up for the 3rd consecutive month.
Foreclosures were also top of mind this week as the politicians are again looking for a scapegoat in this financial crisis. But, don’t fall prey to the hype and the ‘call to panic’. Politicians will threaten the banks and financial institutions will sue other financial institutions, both trying to recoup their losses in any way possible. It’s all a logical working out of the crisis. Foreclosures will continue as they have for the past 2 years and we will continue to work through the inventory of foreclosed homes at a steady pace for the next 2-3 years as the economy bumps along the bottom and slowly recovers. But HEY…. just as the economy bumps along the bottom, so do rates…and the opportunity of a lifetime continues…. This week 30 yr. fixed rates ranged between 3.875% and 4.25% depending on program, credit and points.
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963