|Good news continues this week showing us that the economy is picking up steam. The ISM Service Sector index (a measure that encompasses roughly 90% of our domestic economy) reached it’s highest level since August, 2005. New manufacturing orders rose to their highest level since January ‘04 and the percentage of industries that were adding workers increased to the highest level in 13 years. The overall jobs numbers today were good as well adding nearly 200,000 non-farm jobs in February. All of this tells us the recovery has started.
But the Middle East still has the attention of the world money markets and the ‘flight to safety’ effect is keeping a lid on rates (lucky for us). While the unrest in Libya causes concern, the potential disruption in Saudi Arabia is what REALLY worries the markets. If unrest in Bahrain gets out of hand, Saudi Arabia’s Shiite minority could follow suit with protests of their own, and the Iranian-Saudi balance in the Persian Gulf could teeter heavily toward Iran. Imagine if Iran fully controlled the area through which 40% of the world’s seaborne oil must pass daily. Does Bahrain have your attention now?
So there is a brief window of opportunity to get a great rate and once the turmoil in the Middle East settles down, rates will start to go up again.
Over $1,500,000 available in Oklahoma State Bond Money with a rate of 5.50% and 3.5% Down Payment Assistance.
This week 30 yr. fixed rates ranged between 4.75% and 4.875% depending on program, credit and points.
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963