Friday Mortgage Wrap-Up
Very interesting times in the market this week. I'm normally one to say I'd rather have an interesting time than a boring one. But markets don't always like interesting and so we continue to see the push pull dynamic between world uncertainty and economic recovery. Uncertainty pushes money into bonds and 
rates drop. Economic recovery spurs fears of inflation and rates rise. This week we saw rates tick up a bit again as the GDP figures for the 4th quarter came in higher than expectations at 3.1%, signaling that our economy is recovering. The stock market had a good week as well. But even though this caused an uptick in rates, we are still below 5% on a 30 year fixed rate mortgage according to Freddie Mac's weekly Survey.
What worries most people is all the news regarding housing. Existing home sales were off a bit from last month, but NEW HOME sales were substantially down. The blogs continue to site that values will be dropping and the housing market is still weak. To this I say: Location, Location, Location. In my local market I'm hearing of multiple offers with homes just going on the market. Yes, there are markets in the country that continue to drag, but don't let your buyers apply a Detroit statistic to your local market. We WILL have ups and downs, but overall the market continues to improve.
May you have a productive weekend!
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