Weekly Mortgage Update

Weekly Update:  March 2, 2012

Dow at 13,000?  Is it ‘March Madness’ or a trend that will stay?  No one can say for sure but the consequence for us that that rates went up this week.  When the world of stocks does well, most of the time the world of bonds (which includes mortgages) does poorly and rates go up.  Add to this the high price of oil, which is inflationary because it feeds into so many areas of our economy, and you have bond traders raising their rates to accommodate.  Remember, as the fear of future of inflation goes up, rates go up to compensate an investor for what they will loose in the value of future dollars.

 Consumer confidence is better and the ‘VIX’ index (an indicator of fear and volatility in the financial markets) is down as well.  Both of these add to the positive momentum in the economy which also adds to inflation.

 In short…this week rates are headed up, but still trade in the channel they have been in all February.  They could be derailed by a Euro melt down but that is looking less and less likely.  If you are or your clients are playing the odds that rates will go back down, those odds are getting slimmer and slimmer.  Tell your clients to place the SMART bet and buy or refi now.

 This week Freddie Mac’s 30 year fixed rate came in at 3.9% depending on program, credit and points.   Have a great weekend and have your buyers call us so we can get them approved to buy.

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