Lou’s Market and Rate Update

Lou Tornambe, Loan Officer
Office: 720-489-0712
e-Fax: 866-561-9036
Cell: 303-880-9977
ltornambe@wrstarkey.com

This keeps sounding negative, but there is a silver lining in all of this for Real Estate. Last week we saw the continued effect of uncertainty in the world with the devastation in Japan, the civil war in Libya, and the continued protests in Bahrain.  Uncertainty creates fear.  Fear pushes people to look for safety.  And safety resides in the US Bond market.  Like last week,the ‘flight to safety’ effect is keeping a lid on interest rates……for now! 

But this is temporary and if you want to know what’s in store for rates, look at the economy. Manufacturing is doing well, both the producer and consumer price index came in last week well above last year, and the Fed came out last week with bullish statements on the economy. All of this is inflationary.  And as we’ve said before, as inflation increases, so do rates.

There are those who point to the pull back in stocks and the increase in consumer prices and say we’re headed for a double dip recession……be very careful when you hear this, and be open to other pieces of news that may accompany those opinions.  Chase, Wells Fargo, US Bancorp and BB&T ALL increased (paid more to their investors) their dividends last Friday.  I don’t think they would be letting go of their money if they didn’t feel good about where things are headed.

But for now, tell your clients to GRAB this temporary dip in rates and smile all the way. . .

  • The 30 yr. fixed rate opened between 4.625% and 4.875% depending on credit, program, points.
  • The 15 yr. fixed rate opened between 4.125% and 4.25% depending on credit, program, points.
  • FHA 30 yr fixed rate opened between 4.625% and 4.75% depending on credit, program, points.
  • JUMBOS are REALLY falling, coming in 3.625% to 5.99% depending on credit, program, points.

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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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