Weekly Mortgage Update

I’m dreaming of a white Valentine’s…..sorry! It’s been a rough week for the bond market as well with 5 straight days of rising mortgage rates. Why? Simple, we are still seeing signs of an improving economy. Retail sales reports have been strong this week and this is backed up by two indexes that tell us how the manufacturing sectors are doing: The Chicago Purchasing Manager’s Index and the Institute of Supply Managers Index. Simply put, these are the guys who order the stuff to make the stuff that people buy…and BOTH reports exceeded expectations. SO…people and buying and these two major reports tell us that businesses are anticipating more of the same.

Every day that goes by where we don’t have a melt down solidifies the recovery and worries investors have that inflation is on it’s way. Remember, it’s the fear of future inflation that drives rates up. Add to this the fact that raw materials are going through the roof (wheat is up 28% since December and copper is up 5% just this week) and it just heightens the inflation concerns.

So, the light at the end of the tunnel is the improving economy and it’s also the inflation train headed our way.

Oklahoma State Bond Money still has about $5,983,834.00 available with a rate of 5.25% and 3.5% Down Payment Assistance. Remember that the closing date has been extended to the 25th of April 2011.

This week 30 yr. fixed rates ranged between 4.75% &, yes, 5.125% 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