Weekly Mortgage Update

The Volatility index or the ‘vix index’ is what this week was all about. Basically that is Wall Street’s measure of fear – they call it volatility. When things are calm and people know that they aren’t likely to loose money, the vix is low. When there is FEAR in the markets, the vix is high and market swings are huge. Where did the fear come from?

First, the downgrade of US debt caused concerns. Then the FED came out with concerns over the strength of the economy. They said they will keep rates low for the next TWO years and added fuel to the fear of a ‘double dip’ recession. Finally, and most importantly, the continued melt down of European sovereign debt created doubt as to how it will ultimately affect the global economy. Panic ensued. The stock market plunged as investors looked for a safe place to put their money and the bond market was the beneficiary.

The end result is that we saw rates drop. That is GREAT news for buyers. The bottom line is that today’s mortgage payment now buys you 10% more house!!! It’s Christmas in August….and the sale is here!

This week Freddie Mac’s 30 yr. fixed rate survey ended up at 4.32% 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