The rule of thumb in pricing your loan is good day stock market, bad day interest rates. Bad day stock market, good day interest rates. In the last week we have had a downgrade of US government securities from AAA to AA. The United Staes is still one of the safest places to invest in the world but this is definitely not a good thing. Foreign investors continue to take advantage of our increasing money supply and the devaluation of the American dollar buying up properties left and right even if it means paying cash. Foreign National loans are hot right now and so are FHA streamlines without appraisal and DU Refi Plus for Fannie Mae loan that are a little upside down.
This was last week: Mortgage rates in Florida experienced one of the most interesting weeks last week. We were blocked out by the nemesis of the government's huge task of extending our national debt. Sweeping another trillion under the carpet so we could continue to exist in our debt filled existance based on the promise that they will spend less in the future. The ecomonic figures were revised downward and employment figures are due out soon. Everything is looking grim, so the advice is grab what you can while you can!
Republicans and Democrats walked away cautiously claiming victory knowing that there is much more of a battle yet to be waged. Obama got his wish that budgets will be funded until the end of 2012. (election time) In our near future we will have to start dealing with an underfunded social security system and the inevitable task of decreasing government , decreasing spending and raising taxes.
As a rule of thumb bad news about the economy id good for mortgage interest rates.Economic figues for the previous quarters were revised and downgraded! GDP growth in Q1 was revised to almost flat (+0.4% frm 1.9%), Q2 advance GDP up 1.3% well off +1.9% expected and likely to be revised lower when we revisit the data next month. Poor economic demand means less demand for mortgages which in turn results in lower rates. FHA rates are approaching the very lowest end of the 4.00's There is talk about down grading US bonds but that will make no difference in the world because we are still considered one of the if not the safest place to invest in the world.
Closer to home a local lender of the ever popular foreign national program went out of business so one of it's compeditors raised it's minimum loan limits to $200,000 to slow down the flood gates.
Also a Florida lender of the popular Fannie Mae & freddie mac 125% program is offering some amazing rates for folks who once bought there home with 20% down and saw the equity disappear.
The more things change the more they stay the same. Our economy is petering along but those of you out there that have battened down the hatces and weathered the storm are in a real opportunity to capitalize on some unbelieveable interest rates.
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