Friday, February 25, 2011

What's The Rate?

How about this... a whole week of steady to improving interest rates.  While not huge improvements, I"m happy to report the positive move held on all week.  But should you wonder why... I"ll try to explain:

First, middle East turmoil is the main driver of better rates.  When the markets are jittery, rates tend to fall as investors jump to 'safe' investments.  Second, the month end is Monday and many bond buyers have to hold on to their portfolio or add to it thru end of day Monday.  That means Tuesday may be interesting to see if things shift back to a negative (higher) push for rates.  Guess point #1 above will impact as well.

The downside of this week's news?  Gas prices thru the roof.  Hopefully that will ease off.  If not, it could put a pinch in the budgets of everyone driving a car.. which are the same folks we hope are buying homes!  For our businesses to grow, we need gas prices to ease off.  Say your prayers over the coming days/weeks!

Rates as of today:

  • 30 Yr Conventional – 4.875%

  • 30 Yr VA – 4.6255%

  • 30 yr FHA – 4.625%

  • 15 Yr Conventional – 4.0%

  • 5/1 ARM – 3.50%

  • USDA (zero down) – 5%

With the feeling of Spring starting to happen, buyers may be out this weekend.  Track me down if you need any help.  I'm here to support your efforts!

-Brad  854-4457

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