While all were watching the ‘debt debate’ the economic news was getting progressively gloomier. Suddenly this week the world woke up and said, “HEY!….we could have another global recession…!!!” So, suddenly investors took their money to the safest place they know and stashed into bonds. The stock market took a dive, the bond market took off and rates dropped to levels not seen this year. We actually got down into the low 4% range on 30 year fixed rate mortgages.
BUT….when all hope was lost and there was panic in the streets, the jobs report came out today showing 117,000 new jobs being added, an increase in hourly earnings, and a drop in the unemployment rate. While the figures are STILL anemic, they did show that the sky is not falling…and we saw rates climb today as much as they dropped yesterday.
Where will it end? As Europe’s problems continue, look to see the US economy slowly improve. Fear will dominate the markets and rates will continue to stay low for this reason. Enjoy it while we have it.
This week Freddie Mac’s 30 yr. fixed rate survey ended up at 4.39% depending on program, credit and points.
WR Starkey Mortgage, LLP NMLSR # 2146
10 E. Campbell
Edmond, OK 73034