Athen Apaquette

Lots of news; not much movement.   On Monday, the December personal income number came out 0.3% higher and spending was up 0.5% – not really interest- rate moving, but ironic that we earn 0.3% more and spend 0.5% more.

Then Wednesday, the Institute of Supply Management gave their manufacturing activity index, which hit 56% — its highest mark since 2014.   Not interest rate friendly, as it is an inflationary indicator.

Thursday the Q4 productivity was up 1.3%, and unit labor costs were up 1.7% — pretty neutral news.

Friday we got the December non farm payroll numbers which were up 227,000 but unemployment edged up to 4.8%, and average hourly earnings were up 0.1%

December and November payrolls were revised down 39,000 jobs.  On top of that news, the ISM Service Sector Index came in at 56.5%, down from the 57.2% December numbers, which is bad economic news which should have created a bond market rally and pushed mortgage rates lower and therefore good news for us…

BUT the lower rates we should have gotten were wiped out by the investors running to the stock market with the DJIA hitting above 20,000 again.  When people run to stocks they are running away from the sleepy or boring bond market causing rates to rise.  Even if ever so slightly.

So after all the little ups and little downs this week, interest rates are the same as last week.

The best news this week for the financial markets is that President Trump started taking action to roll back some of the unnecessary complications created by Dodd Frank.  The cost of loans, the delays created with some of the disclosures that were created through this law and the extremely expensive inefficient appraisal rules could be eliminated.  

The Dodd-Frank financial reform was supposed to create protections for the consumer, but for the most part made it more complicated, more expensive and only helped the big banks.  Stay tuned for better loans and looser guidelines for those most in need.

Don’t gamble: lock in your rate.

Need to lock in for 60, 90 even 180 days? Yes, we can do that on a purchase!

Your buyer’s interest rates can be locked in, so if you have a client who is close to having an accepted offer and is nervous about rates we can lock that interest rate in.

Remember, we also have the float down: if rates improve more than .25% after lock-in and after full approval, your client gets the lower rate.  All rates are quoted at a 45 day lock in and assume a 720 credit score with 20% down, except for FHA and VA.

Have a great week, and call me if you need anyone qualified.