|It was another good week for U.S. economic data as January ended on a high note: A robust gain of 243,000 payroll jobs (well above the consensus); A drop in unemployment from 8.5 to 8.3 percent; An increase in the ISM manufacturing AND non-manufacturing indices; And finally, an improvement in year-end housing starts. This continues the trend of positive economic data for the U.S that began in the fourth quarter of 2011. Of note in the jobs numbers are the gains of 50,000 jobs in manufacturing and 21,000 net new jobs in construction. This shows again that we continue our slow steady climb out of this recession.The downside to this is that there is already speculation about how long the Federal Reserve can hold onto its promise to keep interest rates low through 2014. A lot can happen over the next three months, not to mention the next three years. The week when the global economic community decides that Europe has finally made it past the ‘danger zone’ is the week that you will see rates take off like a 4th of July bottle rocket. Yes, it will happen that fast. Smart money ALWAYS takes their bet off the table when they are ahead, even though there might be a few more winning hands left. You can’t loose by winning. THINK about it… sounds so simple, but it’s SO true. Buyers grab your low rate now!
This week Freddie Mac’s 30 year fixed ended up at 3.87% 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
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