Weekly Mortgage Update

Another relatively slow summer week in the financial markets this week but the Fed’s lack of comment regarding the continued buying of mortgages and treasury bonds sent a big message: No QE3. This will eventually have an upward push on rates. Here’s why. Assume you have 100 customers who always buy your Mama’s Fresh Cannoli’s and you HAVE to sell 100 every day or you can’t pay your rent. When 1/2 of those people go on a diet and stop buying, you generally have to give the remaining buyers a reason to buy 2 Mama’s Fresh Cannoli’s when they used to only buy 1. In mortgage terms, you gotta raise rates and sweeten the deal to keep investors giving you the same amount of money for mortgages.

In other news, new and existing home sales came in better than expected but still below prior months. The good news is that companies are buying a lot of big ticket items and manufacturing is actually growing faster right now in the US than in China. So, some good news, and some tepid news. It all leads to a continuation of the new normal, which is slow growth but not a double dip recession. Now is the time to steal market share as others listen to the talking heads and feel lack-luster. If you keep that energetic attitude, like the one you’d have after eating a Fresh Mama’s Cannoli from Boston’s North End, YOU WILL increase your business. Mmmm…a fresh cannoli…heaven in a bite.

This week Freddie Mac’s 30 yr. fixed rate survey stayed at 4.5%, 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

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

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