Financial Insight

Today mortgage rates are at 5% and falling, finally something good is happening, do you really want to miss out?? 

Fortunately for our markets, in spite of the spending that the US government is expected to carry out in the near future and the current deficit, rates have continued down (i.e., demand is strong) as investors sell other assets around the world and put their cash into U.S. securities. As noted last week, some of the short term instruments are paying near 0%, and therefore investors are only receiving back their capital. This morning finds the 10-yr yield at 2.53% and 30-yr mortgage prices worse by roughly .125.

To see how much this could really help you click here and tell me your scenario. 

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Yesterday’s problems in the Middle East not only caused oil prices to rise, but a flight to quality in US Treasuries. Unfortunately mortgage rates didn’t tag along for the ride, and buyers backed off their prices during the day. On today's economic agenda, October's composite home price index is expected to decline -17.9%, a new record low, due to the inventory of homes and weak economic conditions. The Chicago PMI is expected to decline -0.8 points to 33.0, far below the neutral level of 50. We also have Consumer Confidence, expected at 45.7. Ahead of all of that, the 10-yr yield is around 2.16% and mortgage prices are worse by .125-.250 versus yesterday afternoon.

That's right you can lock a 30 year fixed rate mortgage in today at 5%, with good credit, based on 80% Loan to Value or less on your primary residence.

WASHINGTON – Mortgage applications spiked the week of Dec. 15 to their highest level in more than five years, as borrowers took advantage of rates that fell to near-record lows after the government pledged to funnel money into the mortgage market.

While some borrowers around the country are taking advantage of historically low rates to refinance their loans, others will miss the window because they don't believe it. The opportunity isn’t available to borrowers with poor credit or little equity in their homes, and foreclosures are still likely to surge.

The Mortgage Bankers Association said Wednesday its application index surged 48 percent in the week ended Dec. 19 to 1245.5, the highest level since July 2003, when refinancing activity boomed at the peak of the housing market. More than 80 percent of applications came from borrowers looking to refinance into loans with more affordable rates, the trade group said.

Interest rates plunged last month after the Federal Reserve said it would spend up to $600 billion buying mortgage-backed securities and other debt issued by government-controlled mortgage finance companies Fannie Mae and Freddie Mac.

Refinance volume grew nearly 63 percent, while purchase volume rose by nearly 18 percent.

The average rate for traditional, 30-year fixed-rate mortgages decreased to 5.04 percent from 5.18 percent a week earlier, according to the MBA report. That was the lowest point in the weekly survey since rates fell to 4.99 percent in June 2003. Predictions are that rates will bottom out at 4.5% in January,09.

What's the moral to this story?

Call now to lock in the best rate you will ever see!  719-262-9070

Well dismal news has been around us for a long time and frankly everyone is pretty scared right now.  I would like to be one of the first to share with you that

GOOD NEWS IS ON THE WAY!!!!!

The problem we're having right now is that money is not moving around, people are losing their jobs and the stock market is in the tank.  It is finally being realized that the way to get the money moving again is by giving the citizens an opportunity to save thousand of dollars on their mortgages. Thus giving folk the stimulation and incentive to start buying and hiring again.  

SO GET READY, for this history making event!  There is going to be a window of opportunity within the near future where you will see 30 fixed interest rate down as low as 4.5% and maybe as low as 3%

WOULD THAT SAVE YOU A LOT OF MONEY?

YOU BET!

 The window of opportunity may only last 4 - 8 weeks and every body and there mother will be lined up to take advantage of this opportunity.  The financial community will be overwhelmed with applications and many people just won't be able to be helped. Folks like you and your neighbor will be lined up taking numbers to get your home refinanced into the lower rate.  THIS IS NO JOKE, so get your number early!  Because of such a narrow window and the time it take to process your loan CS financial Services will only be taking 100 applications, 5000 of you are getting this blog - don't wait!

Respond to this e-mail csfs@comcast.net saying that you are interested and you will be assigned a number to be assisted.  We will update the people that sign up as to when we expect that immediate action will be necessary.  

NOW IN THE MEANTIME

I love it when folks think that the US Government sets our mortgage rates, and not the supply & demand in the markets. It would sure make life easier for everyone in the business, especially secondary marketing (the people that buy loans) & pricing folks.

We did have some potentially market moving news out this morning. The number of U.S. workers filing new claims for jobless benefits hit a 26-year high, with Jobless Claims +58,000 to 573,000. That was the highest print since November 1982, when 612,000 workers submitted new claims for unemployment benefits. The four-week moving average of new jobless claims rose to 540,500 from 526,250 the prior week, the highest since Dec. 18, 1982 when a reading of 554,500 was recorded. Also, the U.S. trade deficit widened unexpectedly by 1.1% to $57.2 billion in October as imports from China rose to a new record and oil imports rebounded as prices fell by a record amount. After the news the 10-yr seems content at 2.65%, and mortgages are roughly unchanged.