Well those Fed rate cuts seem to be working. The economy is slipping into a recession and inflation has been confirmed as the cost of food and fuel have risen. After all, inflation is one of the negative side affects of Fed short term interest rate cuts. Also, manufacturing output last week was well below expectations indicating that spending is slowing. And consumer confidence was at its lowest in over 16 years. Mortgage bonds dropped a whopping 135 points today pushing the 30 year fixed rate back above 6% ending the short-lived refinance boom of the past few weeks. Tomorrow the Fed meeting minutes are to be released along with housing starts and consumer pricing. However, we believe the economic damage for this holiday shortened week has already been done and we do not expect any of these reports to reverse this week’s trend.
The housing slump is expected to continue through 2008 even though inventory is decreasing. In spite of this weeks news we still believe there are significant buying opportunities in real estate in many areas of the country.
This past week The David M. Damare’ spent over $3000 to extend rate locks for refinance clients due to inadequately staffed lender underwriting departments. This saved our clients hundreds of thousands of dollars over the life of their loans. Does your preferred lender pay for circumstances beyond their control or do they charge the borrower?
“Mortgage Lending is Our Business; Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you and your clients. David. 919.851.0999