Dennis' Mortgage Blog

Question of the week:  This week I am asking you the question:  Did you have a happy Thanksgiving?

Answer:  I am hopeful you are able to answer in the affirmative and that you and your family were able to give thanks for happiness in your lives.  As part of my Thanksgiving I continue to give my thanks and gratitude for your support.

Have a question?  Ask me!

Despite the short week some news came out that impacts our mortgage rates.  Remember in October when we were excited because the Gross Domestic Product grew 2.5% annualized in the 3^rd Quarter? Well we wasted some balloons and streamers on the excitement as this week that number was revised down to 2%; they over-estimated by 20%--that is quite an over-estimate.  And what is a week without news from Europe?  This week France is joining the list of patients in the financial pneumonia ward with a bed next to Spain, who is next to Italy, who is next to Greece. 

Stocks rarely like a short week, but the trend through Wednesday was six straight down days  before a slight rally Friday morning.  It is not unusual before holiday weekends for stocks to be down, and bonds to benefit; but this holiday Wednesday was odd in that everything was down for most of the day: stocks, gold, oil, bonds.  Bonds rallied a bit late in the day but it was apparent everyone was moving to cash for the long weekend when markets would be closed at home but open in Europe and Asia. For reasons that do not exist to me on Black Friday (I prefer to call it Leftover Friday) stocks are up and bonds down as Europe adds Portugal to the junk bond list and Italy’s sale of short term notes is a failure.  Crazy.

Rates for Friday November 25, 2011: Rates are flat for this Leftover Friday and next week I am thinking we should see some volatility as the politics in Washington heat up after the failure of the “super committee” to reduce deficit spending and the expiration of unemployment benefits return of higher taxes.  Rates are very low, trying to gain some on the margin may cost you in the long run.

FIXED RATE MORTGAGES AT COST OF 1.25 POINTS

30 year conforming                               3.75%               Flat

30 year high-balance conforming           4.00%               Flat

30 year FHA*                                                   3.75%               Flat

30 year FHA high-balance*                   3.75%               Flat

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked.  Rates are based on 20% down (3.5% for FHA)  with 740 FICO score for purchase mortgages.

* Current rates include credit towards closing costs, call for quote on rate and credit.

I hope you had as happy a Thanksgiving as we did.  Side by side with Independence Day, Thanksgiving is a favorite holiday for me.  Not only am I able to indulge my inner-chef and do what I love in the kitchen,  but having the day centered around giving thanks for the abundance of blessings in our lives, from trivial to much bigger picture. 

I saw a report in the paper that researchers have shown that those who are consistent in their gratitude and giving thanks for what they have in their lives, no matter their current condition, lead happier lives.  So give thanks and express gratitude every day for what is positive in your life.  Personally I am grateful for your support every day.

Enjoy Leftover Friday! We are heading up to Idyllwild to spend the day with my brother and his family—everyone carting leftovers up the mountain so we can celebrate Leftover Friday!

Have a great week,

Dennis