Weekly Update for May 18, 2012
If
‘diamonds are a girl’s best friend’ then ‘fear’ is a bond’s best
friend. The fear factor this week involved both Europe and banks
globally. Worries over Greece pulling out of the Euro,
worries over Spain’s banks going under, and the déjà vu of “I don’t
know how it happened” regarding Chase’s loss of what now might be 5
billion dollars due to hedge trading, all sent investors running for
safety. As I have said before, I don’t have to pay
you as high of rate of return if you are going to give me your money
anyway, and so bond traders, including Fannie and Freddie, were able to
lower their rates slightly. Keep Spain and Europe on your radar. A melt
down there would pull our economy off its
recovery tracks, and that could lower rates even a bit more.
But before you get too excited, Freddie Mac’s survey came in just four 100ths of a percent lower this week – that’s .0004 lower than last week. Historical bottom, yes. Way lower
than before, no. So we are still bumping against a floor that just doesn’t have much give.
And
while the buzz about Facebook going public makes me wish I had an IPO of
my own, I’m happy to be in the best mortgage lending environment in the
past 3 years. By my way of thinking, you
just can’t loose buying a house in today’s market.
This
week Freddie Mac’s 30 year fixed rate remains basically unchanged at
3.79% paying .8% in discount points. Have a great weekend and have
your buyers call us so we can get them approved
to buy.
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
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