Weekly Mortgage Update

What a crazy two days…. ADP (the nation’s largest payroll company) came out with its report stating that job growth was strong. This caused inflation worries to start. And, if you remember, inflation causes rates to rise because the people lending their money to you and me need to recoup what inflation takes away. BUT THEN…the government came out with its report (the one people REALLY pay attention to) and it was VERY weak. So rates ticked down: No job growth, no inflation, no reason to raise rates.

The jobs report was really no surprise. Local & state governments are laying off people and, while the private sector is adding jobs, it’s not a lot. But there are still good signs that the economy continues to plug along. For example, Dallas showed its 1st quarterly increase in home starts and closings in a year, the first since the end of the homebuyer tax credit. Even Las Vegas, one of the nation’s hardest hit cities, showed it’s 3rd highest month on record for existing-home sales when you include condos and townhomes.

That said…EVERY deal is tough today, Buyers are trying to push the limits of current qualifying standards and sellers are still adjusting the lower values that resulted from the economic slow down. Money is still tight….on either side of the transaction. Hang in there, it will get easier.

This week Freddie Mac’s 30 yr. fixed rate survey ended up at 4.625%, 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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