Dennis' Mortgage Blog

Our sincerest gratitude to the Veterans and families of Veterans and fallen heroes who have ensured our national freedom and safety.  Have a safe Memorial Day Weekend as we celebrate our Veterans and remember those who sacrificed their lives in defense of our liberties.

Historically the start of the summer buying season, Memorial Day Weekend is upon us.  As we enter the early throws of summer our markets continue to rise and fall with big movements on a daily basis as investors warily eye the price of oil once again in a rapid ascension and worry about inflation.  The Fed this week released statements indicating that the drop in rates they have participated in since the Martin Luther King holiday is probably over; meaning they have two options:  let rates stay or raise rates.  My advice to those with equity lines is make larger payments when possible to pay down the balances while the rates are low as they will be rising again in the not too distant future.

This week we have seen more news reports indicating that the much talked about recession is either over, or never started, or if there is one we are already headed out of it.  Jobs and other data indicate the cooling off of the economy over the past seven to eight months may never have actually reached the contraction stage but rested instead just above zero growth.  As always we do not know what economy we are in until it is history and the data can be analyzed.

Rates took a pounding yesterday on inflation fears and stock surges; today a bit of a rebound in rates as stocks take the beating heading into the long weekend.  As a result conforming rates up a bit from last Friday, FHA rates flat and one of our jumbo lenders has evidently found secondary markets receptive to products as jumbo rates dropped significantly with them. 

NOTE PRICING BELOW IS BASED ON 20% DOWN FOR JUMBO LOANS AND 10% DOWN FOR CONFORMING, FULL DOC, AND FICOS OF 720 AND ABOVE (change from last Friday):

30 year conventional at 1 point 5.75%   (up 0.125%)

30 year conforming-jumbo at 1 point 5.875% (up 0.125%)

30 year FHA at 1 point 5.75% (no change)

30 year jumbo at 1 point 7.00% (down 0.500%)

We continue to receive calls from first time buyers looking to take advantage of the affordability of the market, a positive sign for the summer and beyond.

Please feel free to forward this email to your co-workers and clients--or send them to my Mortgage Blog where it is posted weekly.

Have a great weekend, remember our Veterans and have a safe Memorial Day Weekend.

Dennis

Dennis C. Smith
Stratis Financial
Direct (562) 472-1118

Mobile (562) 243-6912

Fax (562) 684-4316