Check out the chart below – The price of Mortgage Backed Securities are at (high) levels not seen since early December 2010 (check out the red line) making rates as low as we’ve seen in 5 months.
If you’re floating, lock today on the “dip” and take advantage of what’s could be the best we’ll ever see!
Call Todd Abelson at Sunstreet Mortgage for all your mortgage needs! (520) 331-LEND
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If consumer spending is a key to economic recovery, the nation is on its way.
Monday, the Census Bureau released national Retail Sales figures for October and, for the second straight month, the data surged past expectation. Last month’s retail figures jumped 1.2 percent — the largest monthly jump since March — as total sales receipts climbed to a 2-year high.
Consumer confidence is rising, too. Though still below the long-term trend, confidence in the future up-ticked in October.
The current confidence reading is now double the low-point from February 2009.
It’s no surprise that both Retail Sales and Consumer Confidence are higher. They correlate in a common-sense-type manner. When consumers are more confident in the economy, they’re more likely to spend their money. This, in turn, leads to more purchases and rising retail receipts.
Unfortunately, for home buyers and rate shoppers in Tucson , it also leads to rising mortgage rates.
Because consumer spending accounts for two-thirds of the economy, spending growth leads to economic growth. But it’s been a lack of growth that’s kept mortgage rates this low.
When the growth starts, the low rates end. It’s why mortgage rates have added as much as 1/2 percent over the past 10 days. Consider the recent “good news”:
The days of 4 percent, 30-year fixed rate mortgages may be nearing its end. If you’re still floating a mortgage rate or thinking of buying or refinancing, consider the impact of rising rates on your budget.
The time to act may be sooner than you had planned.
As they say, it’s all about the economy and THEY are right. “QE2″ is all about re-booting the economy and here’s how:
1. Spur Spending (which creates inflation)
2. Lower Unemployment (which fuels inflation)
3. Push the stock market higher (which spurs spending, raises employment and fuels inflation).
Don’t be fooled by the recent downturn of the stock markets as unless QE2 fails and talk of deflation re-emerges, we’ve seen the end of the historic lows we’ve enjoyed for most of the past year.
Rates are STILL FABULOUS so don’t wait. Buy or Refi NOW!
Mortgage markets improved last week overall, but barely. After making a sizable move lower through Monday, Tuesday and Wednesday, mortgage pricing jumped Thursday and Friday. Nearly all of the early-week gains were erased.
Conforming mortgage rates in Arizona ended the week slightly improved.
There wasn’t much economic news on which for markets to trade last week. In its absence, bond traders took cues from the currency markets, among other things.
Mortgage rates are closely tied to the value of the U.S. dollar. This is because mortgage bond investors are repaid in U.S. dollars and, as the dollar gains value, demand for dollar-denominated bonds tend to grow.
More demand for bonds raises prices which, in turn, lowers rates.
Bond prices and bond yields move in opposite directions.
The dollar was strong in the first part of last week, then weakened through Friday’s close with the G-20 meeting looming. Mortgage rates trended along similar lines.
This week, there’s a return to data and mortgage markets should respond — especially because the week is housing-data heavy. Housing is believed to be a key part of the country’s ongoing economic recovery.
Mortgage rates are near all-time lows and it’s unclear whether they’ll stay this low, or start rising. Either way, if you haven’t talked to the Tucson Mortgage Team about a refinance at today’s great pricing, set aside some time this week to do that. You can give us a call at 520-331-LEND (5363)
Once rates reverse higher, they’re unlikely to fall back down.
