Weekly Mortgage Update

Sorry this is a little late…

We live in a world where the key to media ratings and money is ‘shock value’. Today’s headline from Reuters said “The Obama administration nailed a ‘condemned’ sign on the wrecked U.S. housing finance system ….” The fact is that in his interview today on CNBC, Mr. Geithner said that he wants an orderly transition where the government will pull back from the mortgage business and the private sector will step in over the next 5-7 years. Folks, the majority of mortgage lending WAS private before the 2008 meltdown. So, in my opinion, this is not a cause to worry.

As for rates this week, they continue to climb because the economy is still gaining strength: Jobless claims were below the key 400,000 level; Consumer sentiment came in better than expected; Raw material costs continue to go up; And finally, Egypt looks like it is not going to explode. All of these factors push rates up as they point toward recovery, and stability, which will lead to inflation.

Finally, foreclosures are down substantially from last year’s level. But, they are still high and THIS might scare you. Call Kim and Terra and they can tell you how they are exposed to this and other daily SPINs that strives to create fear and shock value. Yes, they’re not only Realtors, they are psychologists as well.

This week 30 yr. fixed rates ranged between 5% and 5.25% 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