Special offer

Friday Wrap Up (1/6)

By
Mortgage and Lending with Movement Mortgage NMLS # 574681

Hi everyone,

I hope it wasn't too hard for you to get back into the swing of
things during this first week of the year. I don't think anyone
from Chicago is complaining about mid-50 weather in January!

There's been a steady wave of decent economic news lately,
but it seems that investors are still concerned (or fearful?) about
the European debt crisis and it's aftermath, which could prevent
a true recovery start here in the U.S. The biggest example is the
jobs report, which indicated a drop in the unemployment level
to 8.5%, but the markets reacted cautiously when you'd think they
would've been jumping up and down. The Fed, obviously, is
looking for ways to "stimulate" the economy but it doesn't seem
to have the ability to do anything effective except buy treasuries.

In the mortgage world, this continuing economic downturn is giving
consumers the best rates in, well...in history. As I've mentioned,
home affordability (the ratio between median income and median
sales prices in a given area) is nationally at a record level as well.
Those people who are "in trouble" with their mortgage and/or their
equity position will hopefully see the value in refinance programs
available (HARP 2.0) as well as a possibly flattening-out of home
prices. The NY Fed has recently suggested the Fannie Mae and
Freddie Mac should order principal reductions to alleviate some
of the burden on the homeowner. The amount of time, effort, and
bureaucracy involved in the other avenues they've used to try
and help borrowers is mind-boggling. The lenders can write these
reductions off (like they do just about everything else)...it's the
taxpayer who pays for it all anyway!

Interest rates dipped slightly thanks to some bond rallies that I
think were expected. The 30 year fixed is sitting at about 3.75%
(slightly higher for refinances). The 30 year Jumbo has edged
lower to about 4.375%. ARM's on both programs are in the
3.375%-2.5% range. Remember...each loan scenario is unique
so if let me know if you have questions and/or would like to look
at some of the other programs available.

Have a great weekend...

Posted by

JP Marzano

NMLS ID# 574681

O: 312-654-7216

M: 312-608-1555

www.themortgagecall.com

www.facebook.com/themortgagecall

www.twitter.com/themortgagecall

www.linkedin.com/in/jpmarzano

Comments (0)