MORTGAGE WEEK UPDATE
We’ve lost a little bit of ground in interest rates today after the Government reported that 2nd Quarter GDP slowed to a tepid 1.5% and Consumer Sentiment fell to its lowest level of the year. You would think this news would spur bond sales and decrease interest rates but that was not the case since both numbers came in slightly above expectations and triggering a sell-off in bonds (forcing rates up). Next week is a big week in the marketplace with lots of economic reports scheduled for release, culminating in the biggest report of them all, Friday’s Employment Report. Stay tuned…
CURRENT INTEREST RATES | JULY 27, 2012
($200,000 – $417,000) 0 POINTS
• 30 Year Fixed: 3.500% (3.59% APR)
• 5/1 ARM: 2.875% (2.96% APR)
($625,501 – $2,000,000) 0 POINTS
• 30 Year Fixed: 4.375% (4.46% APR)
• 5/1 ARM: 3.000% (3.06% APR)
|CONFORMING (HIGH-BALANCE) RATES
($417,001 – $625,500 cap by county) 0 POINTS
• 30 Year Fixed: 3.750% (3.82% APR)
• 5/1 ARM: 3.000% (3.08% APR)
Rates are UP compared to last week.
Rates are DOWN compared to last month.
Rates are DOWN compared to one year ago
Commentary: “Hope Springs Eternal”
This quote from Alexander Pope could be the best description of how we face the task of rebuilding our economy after the financial crisis and recession of four years ago. It seems like we have been taking baby steps climbing out of a giant crater. We still face huge obstacles such as a huge budget deficit which leaves little room for help from the government, a slowing world economy and a general lack of confidence in the future. To that we say–hope springs eternal. No matter how tough things seem to be, man will envision a better future. We see many signs that this hope could come to fruition. One just needs to look at one segment of the economy to see what is happening, slowly but surely. In June, U.S. car sales were at an annual rate of around 14 million. While this is lower than the peak of 17 million before the recession hit, it is up 40% from the bottom of 10 million just over two years ago and up over 20% in the past year alone. Bottom line is the fact that the population of our country is growing and cars eventually have to be replaced.
More importantly, there was a precipitous drop in the first time unemployment claims the week of the July 4th holiday. Statistics which measure holiday weeks are typically volatile and should not be relied upon. Plus the weekly claims figure is subject to temporary factors which also make it a poor measure of health. Indeed, the temporary factor was that U.S. auto plants were delaying regularly scheduled summer layoffs to keep up with the volume. Yes, auto plants. Plants needed to keep up with increased production. If the auto industry hires more people, what will these people do—especially since rates are at historic lows? They might purchase a home and this would contribute to the recovery of the housing sector. Builders are building more homes this year so that they can be sold to auto workers and others and this also creates more jobs. Even home prices are rising and it has been reported that over 700,000 people who were underwater on their home loans have moved to break even or better during the last quarter alone. A mere five percent rise in home prices will move another two million “above water.” To that we say, hope springs eternal. If the auto and housing sectors start hiring, so will other sectors. This builds confidence and confidence builds more hope. So why can’t it spring up like an eternal fountain? It will.
– Dave Hershman
This article was reprinted courtesy of Gina Kemsley – Copyright © 2012 Gina Kemsley, Terra Mortgage Banking, All rights reserved.
Gina Kemsley – Senior Vice President – Loan Consultant, Terra Mortgage Banking
Office: (415) 464-3144 – Cell: (415) 828-0218 – Email: email@example.com – Website: www.terramortgagebanking.com/loan-officers/gina-kemsley
About the author: The above Real Estate information on Marin County Real Estate was provided by Sylvie Zolezzi. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789. I specialize in luxury residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
My goal is to provide you with the best home buying or selling experience possible by combining my business and financial experience with meticulous attention to detail and a warm, personable and caring approach to meeting your needs. I have an excellent track record as a successful, results-oriented negotiator and effective communicator. My analytical skills and understanding of current market conditions, along with my ability to utilize a broad range of cutting edge technological and marketing resources, make me an invaluable real estate resource.
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I specialize in Luxury Homes in the following towns in Marin County: Sausalito, Tiburon, Belvedere, Mill Valley, Corte Madera, Larkspur, Greenbrae, Kentfield, Ross, San Anselmo, San Rafael, Fairfax, and Novato.