Lou’s Mortgage Market Update

We live in a world where the key to media ratings and advertising dollars is ‘shock value’.

Last week Reuters said The Obama administration nailed a ‘condemned’ sign on the wrecked U.S. housing finance system ….” This is troublesome due to the fact that the US Housing industry has led almost every economic recovery in our past. The fact is that in his interview last Fridayon CNBC, Mr. Geithner of the New York Fed said that he wants an orderly transition where the government will pull back from the mortgage business and the private sector will step in over thenext 5-7 years.  Folks, the majority of mortgage lending WAS private before the 2008 meltdown.  So, in my opinion, this is not a cause to worry.

As for rates this week, they continue to climb because the economy is still gaining strength, YEA. Jobless claims were below the key 400,000 level; Consumer sentiment came in better than expected again, we’ve mentioned this before; Raw material costs continue to go up;  unfortunately, and finally, Egypt looks like it is not going to explode, a sign of some stability in Middle East.

All of these factors push rates up as they point toward recovery, and stability, which will lead toinflationary pressures as we (United States) deal with HOW to pay back all of our new debt.

Finally, foreclosures are down substantially from last year’s level.  But, they are still high and
THIS is the SCARE headline your clients will see.  YOU will have to be the voice of reason for
your clients who are exposed to this and the other daily SPIN that strives to create fear and
shock value.  Yes, we’re not only Realtors and Builders, were psychologists as well.

Lou Tornambe, Loan Officer


Office: 720-489-0712
e-Fax: 866-561-9036
Cell: 303-880-9977

NMLSR# 257554


About dherries
Dave and Sally Herries and The RealtyColorado Team - Real Estate Broker serving the metro-Denver area. Offering properties in urban, sub-urban and rural areas. Our mission statement is "Enriching lives through real estate."

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