Weekly Mortgage Update -- Rates are good!

Weekly Update:  February 17, 2012

This week we see inflation creeping back into the picture.  Both the core producer and consumer price indices came in higher than expected, with the year-over-year core consumer index rising to the highest level since October of 2008.  Add to this the fact that housing starts and building permits were better than estimates, and initial jobless claims were much lower than market estimates, and you have a good scenario for future inflation.

Remember that inflation is the enemy of bonds and mortgages.  Fannie and Freddie have no choice but to raise rates when inflation hits so that the investors who buy their bonds get their required return on investment AND make up for what inflation takes away from future dollars. The only thing holding rates down is the Greek potential default.  Expect to see rates tick up if we there is good news out of Greece this weekend.

This week Freddie Mac’s 30 year fixed remained at 3.87% depending on program, credit and points.   Have a great weekend and have your buyers call us so we can get them approved to buy.

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