Weekly Mortgage Update

Another mixed bag this week as the Gross Domestic Product came in at 2.8% which fell short of the wish-estimate of 3.2%.  Drilling down into the numbers, 2% of the growth came from restocking inventories and 2% came from consumer spending, reflecting the good consumer sentiment numbers from the University of Michigan.  But local governments continue to shrink and took away 4% giving us two steps forward, one step back.  

There is simply too much uncertainty in our system with this kind of good/bad economic news each day.  Add to this the uncertainty in Europe and it’s like we are floating down a river which has rapids.  We have to just tread water so we can keep our head up to see what rock is coming at us. Once we get to some smooth water, we can feel comfortable putting our head down and swimming forward with out worrying about crashing into an economic rock that would knock us out.

Anyway…the good news is that because of this the Fed announced again that it will continue to keep rates low.  Excellent!  Remember what I said last week about buying power.  Buyers have approximately 25% more buying power today than in 2007.  What an opportunity!

This week Freddie Mac’s 30 year fixed rate ticked up a bit to 3.98% depending on program, credit and points. 

Starkey Mortgage is an equal housing lender.

                                                                                                       The views expressed are those of the author and do not represent Starkey Mortgage.

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