Weekly Mortgage Update
| This week in the rate world is all about fear and hope. Fear of a calamity and hope of a recovery. As talks continue in Europe regarding what to do with Greece and the other nations that might default, fear pushed money into the United States bond market (this includes mortgages). This pushed rates down. But then the fear of the US defaulting on it’s debt is starting to make investors think that the US might not be the safe haven we’ve been used to, and this fear pushed rates up.
On the hope side, McDonalds came out with great earnings spurring hope of a recovery. But Caterpillar came out with disappointing earnings, dampening hope. No robust recovery equals no inflation and this keeps rates low. So, a mixed bag of hope and fear left rates basically the same this week.
Where are rates going? The deal will get worked out regarding the US debt ceiling. Greece and two or three more countries will go into a step by step, orchestrated default. This combination will keep money flowing into the US. Combine this with a painfully slow recovery that will keep inflation in in check and you have a formula that will keep rates in the 4% range for the next several months and most likely until the end of the year.
This week Freddie Mac’s 30 yr. fixed rate survey ended up at 4.53%, depending on program, credit and points.
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| 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 |