Please Tell Your Friends, Neighbors, Relatives and Colleagues

Throughout the weekend on the 24-hour news channels you'll hear the talking heads debate whether or not we're in a double-dip recession. Well whether that's true or not we've definately dipped into record mortgage interest rates. That fact is being overshadowed by a lot of other news, so as you barbecue over the weekend here's some great information to pass on to anyone who may be in the market to refinance or purchase:

Stocks and bonds compete for investment capital so as stocks decline money flows into bonds. Fannie Mae mortgage bonds, on which long-term interest rates are based, are near absolute historic bests which means a good credit borrower can get a 30-year fixed rate on a $250K loan at 4.375% with less than a point - 4.75% with no closing costs.

Referral Program for the Remainder of June

Because I know what a great opportunity this is I'll send out $50 to any past or present client who refers someone they know and care about who goes to our website and applies. Make sure to email me once you know they've applied. 

Lock or Float?

Mortgage Rates at Historic Best - Stocks in a "Slow Crash"

The Fannie Mae bond is currently trading 22 basis points above Friday's close and since there's an inverse relationship between bond price and yield (rate), rates have gone down again...about .25% - in points - lower than Friday's close. Why? The Dow is now down 115 points, below the dramatic slide on May 6th. Bonds, including mortgage bonds, are seen as secure so when institutional investors sell stocks they park them in bonds forcing bond prices higher and rates lower. 

Lock or Float?

Downside Surprise - Jobs Report: BAD

Analyst had estimated that 500K jobs would have been created in the month of May. The non-farm payrolls job report, released this morning at 8:30, showed that 431 jobs were created, but the kicker - all but 20K of those jobs were census workers. Unemployment dropped to 9.7% but stocks took the news poorly. The dow is currently down 209 and the 30-year Fannie Mae bond, on which long-term interest rates are based, is up 69 basis points.

Strategy Going Into Tomorrow's Jobs Report

The Fannie Mae bond is currently trading 9 basis points lower than yesterday's close and stocks, which started the day on a run, are now up only slightly on the day. But the big news is tomorrrow's jobs report. Analysts are estimating that 500K jobs will have been created in the month of May.