Weekly Mortgage Update

More good news this week as retail sales came in better than expected. The core producer price index came in showing some inflation at a year over year rate of 2.1% and the core consumer price index came in at 1.3, up slightly from last month.  These are all signs that the economy continues to improve since inflation usually accompanies an improving economy.  Also, the University of Michigan consumer sentiment numbers came in much higher than expect showing a growing positive outlook in the general public.

But, to rain on our parade a bit, the Fed came out this week and revised their economic grown numbers from the 3% range down into the 2% range for 2011.  SO, the guys with all the numbers are still seeing some weakness.  AND, the guys with all the numbers continue to buy mortgage backed securities.  Even though some monthly numbers might show inflation, it’s not back in a big way YET.  This tamer outlook, and the continuation of QE2 (the Fed’s buying of bonds and mortgages) have pushed rates down to their lower levels of the year.  WHAT AN OPPORTUNITY!   …..oh, and did I tell you the Fed stops buying in June.  What do you think will happen then?  Buyers- do not wait.

The bond authority announced that there will be continuous origination for the Oklahoma State Bond Issue for 2011. Which means there will be Bond Money available for all of 2011, and there will not be an expiration date.  The program now has a rate of 5.5% with 3.5% Down Payment Assistance.

This week Freddie Mac’s 30 yr. fixed rate survey dropped firmly into the 4.6 – 4.7% range, depending on program, credit and points.

Ted Clay
Senior Loan Officer
Senior Loan Consultant
NMLSR # 217991
OK License # MLO01963
Office: 405-341-8644 x 102
Cell: 405-826-1320
Fax: 866-208-5309
tclay@wrstarkey.com
www.TedClay.com

WR Starkey Mortgage, LLP NMLSR # 2146
10 E. Campbell
Edmond, OK 73034