Lou’s Weekly Mortgage Update

Last week’s economic news was dominated by the continued unrest in Northern Africa (Tripoli) and the Middle East (mostly Egypt).  In spite of the fact that fears pushed the stock market down andthe bond markets up, we still saw a NYSE floor of 12000 maintained, good for the psyche of Wall Street.

In times of uncertainty, money finds a ‘safe haven’ in the US bond market.  This was good for rates as we saw them drop just a bit but not a lot.  The reason that we have been unable to break through our current rate floor, even though unrest continues in the world, is that the specter of inflation is still VERY much present……..that damn inflation!!!

Along with what appears to be an improving housing market, (Case/Shiller Index may disagree), consumer sentiment continues to improve.  Conversely, the announcement that Proctor and Gamble is raising their prices due to higher commodity costs and reason to believe that other companies may follow suit, despite continued high unemployment, breeds the uncertainty piece…

In short, tell your clients that they should be taking advantage of the recent drop in rates.

Rates can’t seem to break through a level of resistance to go much lower and, when the unrest in the Middle East and Northern Africa subsides, rates will quickly reverse upward again.

The 30 year fixed opened between 4.75% & 4.875% depending on program, credit and points.
The 15 year fixed opened between 4.125% & 4.375% depending on program, credit and points.
JUMBO’s have been ranging between 3.75% to 6.25% depending on program, credit and points.

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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