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

Let me Help and Weekly Mortgage Update!

105 homes SOLD in the OKC Metro yesterday!!

Was one of them yours!? 

Need to sell your home or have a friend or family member that does? 

Let me help you sell, call me 405-537-1910

 

Weekly Update:  February 24, 2012

Well, I told you so….Yes, fears over Greece calmed down and rates ticked up.  But don’t you worry.  There was more bad news out of Europe this week as the International Monetary Fund is asking for more money, implying that they don’t have enough money to stop a meltdown in Greece, Italy, Spain and Portugal if those WERE to happen.  So rates drifted back down a bit and we remain in the trading range that we’ve been in all month.

There was good news on the housing front.  Residential real estate markets tightened up in January, which is good, as EXISTING home sales showed improvement with the fastest sales rate since May 2010.  NEW home sales, though down in January, were revised upward in December, giving us a stronger‐than‐expected annual rate of 321,000 units in January. The budding strength in home sales is consistent with the stronger job creation that began in late 2011 and looks like it is carrying over into early 2012.

So, low rates, sales starting to pick up…sounds like it’s time for your buyers to get on the 2012 home buying train.  They SURE don’t want to be left behind when it picks up steam.  ALL ABOARD!!

Oklahoma Housing Finance Agency came out with the 2012 A Bond Program this week and the rate is 4.375% with 3.5% Down Payment Assistance.  On this program the bond authority is charging an additional $150.00 funding fee so keep this charge in mind when you are preparing your cost sheets for your buyers.

This week Freddie Mac’s 30 year fixed rate survey ticked up to 3.95% depending on program, credit and points.

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

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