Weekly Mortgage Update plus MORE!

The RED Team has been BUSY BUSY this past week and therefore, I keep forgetting to update the blog. Sorry everyone. I will try to do better this week! Also, if you are looking to buy a home or sell your home, call us! We have some great new homes on the market and some buyers that can’t find anything that fits their specific needs!

Imagine you own 1,000 shares of IBM and it’s gone up in value.  Do you sell and make a cool $50,000?  Nooooooo, OF COURSE NOT…you are GREEDY and want to wait until you can make $100,000.  But something happens and the stock drops.  You can still make a profit if you sold now, but you want to hold out for the $100,000.  Does that sound like your clients who are waiting for it to get just a bit cheaper or for rates to go just a bit lower.  Well, this week, all of those clients who were waiting for that better price or rate just got their hats handed to them.  The Reason:  Inflation and less fear in the market.

The Fed sighted that, while still in line,  inflation is coming back due to the higher cost of oil as it ripples through the economy.  This is not good for rates because as inflation goes up so do interest rates to compensate for the erosion of future dollars.  Also, there was nary a word from the Fed regarding QE3…which also spooked the bond holders, creating a sell off and subsequent rise in rates.  If the Fed stops putting downward pressure on mortgage rates, there is no telling what could happen. Finally, the terrific week in the stock market pulled money out of bonds, further pressing upward on rates. 

So…rates are still low…and they might dip back down again…but they might not.  Do NOT be greedy, MAKE THE SMART PLAY:  Buy or refinance now.  Take the profit while it’s still there and don’t risk loosing it altogether. 

This week Freddie Mac’s 30 year fixed rates ticked up to 3.92% and is headed higher based on today’s market. depending on program, credit and points and will be higher on Monday due to today’s movement. 

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