Video Mortgage and Financial Market Update for Dec 12th
Hello Friends,
Well the market is closed and no more crazy trading. The DOW traded in a range or 335 point today while mortgage backed securities traded in a range of 100! So we are fortunate to close with both the DOW and MBS in the black. Mortgage rates continued to improve although investors are not ready to give away the farm with locking in the mid 4% range. To lock clients at 4.875% is always a fun, emotional crossroads for clients to brag about.
A lot of the whipsaw trading was due to the "Big 3" action. After the House passed a $14 billion package to assist the auto makers, the Senate shot it down. So initially this was very bad news for stocks only to have the US Treasury come out and say they were going to help the Big 3, hence the reversal.
Also, oil lost its momentum from earlier in the week and closed down $3 a barrel, which is surprising knowing how the Dollar got pummeled today against the Yen and other currencies.
So going into Monday, we should continue to see rates at all time lows, which should cause people to realize this may be a once in a lifetime opportunity to buy up or investment properties and for those that want to stay put, a great chance to lock in an awesome rate for 30 years.
Be Blessed!
Travis
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