This week held a lot of good news (and some not so good) that points to a stronger economy. So sorry…
Why do I say sorry? Because when the economy looks stronger, that means rates might go up. Wednesday, the Consumer Price index or CPI was announced, and that number was up 0.3%, not a big deal.
The December Industrial Production number was up 0.8%, also not a big deal. The (Wow) December housing starts (new houses being built) were up 11.2%, but permits were down 1.6%. That, combined with initial weekly jobless claims dropping 15,000 made for an ugly day yesterday.
Today there was no economic news except that HUD announced 1 hour after the inauguration that they were suspending/reversing the decrease in the MMI (monthly mortgage insurance) for FHA loans back to 0.85% from the 0.6% announced not even a month ago.
So all in all, the week ended up with interest rates flat or slightly higher, depending on the program.
<<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.