Mortgage Blog

This past week we continue to see some market fluctuations which seem to be rather par for the course – up one day down the next. The credit markets are still seeing some rather unusual reactions to the economic data that has been released and it is of my opinion that you can no longer predict what the market has in store for us as the opposite affect tends to be results of what they should be. Hang in there everyone as things can only get better from here on out.

This week we saw Consumer Sentiment increase??? Huh, I have seen this one before and don’t believe it. It must be the “hang-over” affect of the election. The other data released this week which makes me a skeptic on consumer confidence are the new unemployment filings were reported as increasing by 516,000 applicants last month – that’s half MILILION families who are with out jobs!!! Why oh why is consumer confidence up, when more and more Americans are loosing their jobs? That saga still continues.

Retail Sales for October came in at a negative 2.8% which is a sign that this Xmas season could become the toughest since the early 1990’s for retailers. This is pretty bad news for the economy which you would think would be an amazing boost towards mortgage bonds but in all reality rates went up slightly the day that news was released. This is part of what I am saying that the mortgage markets are not reacting in the traditional manner we were accustomed to so it has become harder to determine where things will be from one day to the next.

Because of the “unknown” and the influx of rates going up then slightly down then back up again, my recommendation for the week is to “Lock”. We do see small windows of opportunity now and then, but in general over the last couple of weeks, I have been recommending people to just take what we can get.

In my last blog, I had mentioned Loan Modifications and how more and more it is becoming a “hot” button in the industry. I recently started a new service offering the analysis and recommendations for those in need and can now offer a full service of true Loan Modifications to the market place. Call me for more information.

Randy Reed

303.524.9191