Weekly Mortgage Update
| It was a rather quiet week regarding economic data. The big news was Greece. Apparently they have agreed upon a solution to handle their debt…but that is BEFORE their elections, which happen soon. No one knows if the resolution will stick or not. So the markets reacted accordingly and at the end of the week, it was about a break even for the bond market with rates remaining pretty much where they started.
We did have one bit of good news as the initial claims for unemployment insurance dipped by 15,000 to hit 358,000. Initial claims below 360,000 are associated with monthly job gains in excess of 200,000. If we can maintain this pace through 2012, the economic landscape will feel progressively firmer. Anecdotally, there was a news article today in CNN Money reporting that banks are starting to PAY troubled home owners to start the ‘short sale’ process. In selected geographic areas, some banks are finding that it’s actually CHEAPER to pay a home owner to sell their own home at a loss (which the bank absorbs) than to go through the foreclosure process. The good news is that the sale price is almost always higher than a foreclosure price. Maybe there IS some light at the end of the foreclosure tunnel. This week Freddie Mac’s 30 year fixed remained 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. |
| 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 |