RateWatch Thursday – The Waiting Game

Markets: We’re flat, again, down 6.25 bps (that’s basis points, meaning that the bond market for the FNMA 30-year 4.5% bond has fallen .0625%), which won’t have any impact on pricing.  Markets are waiting on the employment numbers coming out tomorrow.  If those are good, bonds will fall and rates will rise.  Right now we’re at about 5% on both the conventional and FHA 30-year fixed products, depending on a host of factors I’m sure you’re aware of.

Analysis: It’s a new year, and the stock markets are liking that, but the bond markets are not; at least, they have not been able to hold the gains of late 2009.  Not a big surprise, since, it bears mentioning, we’re at rates so ridiculously low that it defies all comprehension.  If you think the real-estate market is bad now, wait until you see what happens when rates rise to historical averages, around 7.6%, which we keep thinking is going to happen one of these days.

Action: If you’re looking at a refinance, and you’ve got a rate of 5.5% or more, especially if you’ve had something holding you back, like income or credit difficulties, PLEASE call us.  We will not be at 5% by the end of the spring.  I can promise you this.

If you’re looking to buy, the government will give you at least $6500 to do it, but you have to have the house under contract by the end of April, so waiting on that is also unwise.  Try our Guaranteed Approval Program.  If we accept you, we guarantee you a home loan, no matter how impossible your situation seems now.

As mentioned last time, we’re going to be on a regular Tuesday/Thursday schedule this year, so you can depend on RateWatch coming to you those days, and anytime the market moves hard, up or down.  Spread the word.  We’d like to get this information in as many hands as possible.

Here’s to a Prosperous New Year, for all of us.


Chris Jones, Branch Manager, City 1st Mortgage Services (801) 310-3407

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