We begin another week with bad news for the economy and stocks, but bad news for stocks usually means good news for mortgage bonds and mortgage interest rates. Bank of America is reporting a fall in profit of 77% on $6 billion set aside for bad loans it has made or acquired over the past couple of years. This further explains why Bank of America is no longer in the wholesale lending business and why a licensed professional mortgage broker who is required to fully disclose all charges, terms and conditions on any loan product is your most trusted and most competitive source for your mortgage.
Last week Google’s posted a 30% increase in profits and this sent stocks soaring, bonds falling and mortgage rates rising. Existing home sales, new home sales, durable goods orders, and consumer confidence report this week and could have an effect on mortgage rates indirectly. However, we see continued volatility in the markets as recession sets in and jittery investors react to any and all information reported by the media.
On a positive note, we do expect the 30 year fixed mortgage interest rate to remain below 6% in the short term for AAA borrowers and real estate inventory is shrinking slowly as prices in areas of abundant supply fall to stimulate demand. We view this as a significant buying opportunity with solid long term equity gains for investors and homeowners, alike. Also, we continue to see the rewards of razing and rebuilding, and renovating homes in highly desirable micro-markets throughout the country.
“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.