Economic news

Again a fairly quiet week, but with a few indicators that the upward pressure is off.
We had the highest unemployment figures since late June with 21,000 filings. Retail sales were a downer, disappointing the market. Consumer purchasing is 65-70% of the economy, so if we are not buying, the economy is not moving.
The PPI was lower than expected. The PPI, Producer Price Index, is basically the wholesale price of items, and the Consumer Price Index, or CPI, is what we pay at the store. So if the PPI is low, then the CPI will probably be low; that means that inflation is not increasing.
Some might argue that prices going up a little would help, because that allows more profit. That allows companies to pay workers more or hire more.
In either case, this is a no-growth month.  However, there was an internal number that was interesting in the PPI: manufacturers had seen an increase in production so there may be light at the end of the tunnel. 
I advised several clients not to lock in earlier this week based on these figures, and they got the .125% lower rate and lower fees.
Having a lending partner who knows the signs and advises based on data is important to your business, and the client’s making sound financial choices. But when in doubt… lock in…

Your Weekend Rate Sheet:

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

Program Rate Cost
MULTI Family /apartment buildings 4.25%    7/1 arm 0 points
Conforming** 30 year fixed 3.875% 1 point
Conforming 15 year fixed 2.875% 1 point
Loan from $417,001 to $2,000,000  30 year fixed 4% 1 point
FHA under 417k 30 yr  3.25% No Points
FHA over 417k 30 yr fixed 3.75% No Cost
VA 3.75% 0 points
Conforming 5 year fixed 2.5% 1 point
JUMBO over $625,500 7/1 fixed/ARM 3.375% 1 point

** Conforming means loans under $417,000. Conventional means Fannie Mae and Freddie Mac.

1 point is 1% of the loan. Programs quoted as having 1 point also have the option of 0 points and the option of the 0 cost loan. 

This rate sheet is intended for real estate professionals only and is not to be disseminated to the public as it does not meet federal disclosure law requirements.  All rates and programs subject to change without notice.

Have a great weekend.