Mortgage and Market News and Analysis

We now truly live in a global economy.  What’s the saying? “Be careful what you wish for.” As if the U. S. economy has not been bad enough as a result of the mortgage investment crisis, credit crunch and the housing downturn. Inflation due to speculation in foreign oil and the European bank’s statement of possibly increasing interest rates to curb said inflation in Europe have done further damage to the U.S. dollar and the Fed’s ability to enact policy to turn our economy around.  

Hourly earnings rose slightly last week and unemployment rose .5%, much higher than expectations further weakening the economy.  This week retail sales will report on Thursday and could be artificially high due to the taxpayer rebates checks.  And on Friday consumer pricing and consumer confidence will report giving further direction to the markets and to mortgage backed securities.

We have adjusted our long term outlook upward for mortgage interest rates as a result of realized global inflation. And current economic conditions can only extend the downward pricing pressure and overcapacity in the housing market.  We cannot overemphasize the opportunities available to homeowners and investors alike in the current real estate market.

 ”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.