Stock Market Closes at Record High & Your Friday Rate Sheet


The Big News this Week: The stock market closed above 16,000 for the first time in history. Why?

Although the FOMC (Federal Open Market Committee) meeting minutes indicated a mixed bag of news, the Fed Presidents still think the economy needs ongoing support in the form of QE (buying bonds to keep rates down).  However, like I’ve said before it’s like pushing a ball under water eventually it will pop.

According to Zillow, the “negative equity” shrunk again this month meaning fewer homeowners are under water (a good sign for the economy). However  21% of homeowners are still underwater. 

Generally when stocks are up rates are down. So the stock market rallied to above 16,000 but the lack of interest in bonds caused the rates to go up.

Janet Yellen (President’s nominee to replace Ben Bernanke as Fed Chairman) got senate confirmation. She is one step away from becoming the first female to lead our Central Bank. She has made it clear that she will continue the QE until there are signs that the economy is doing better. indefinitely??  Rates are still relatively low and things are stable, this the best time to sell.

Did you know that you do not have to be on title to refinance a property? Think of your clients who want to “gift” a property to their kids, there are ways.

If you have a client who is close to having an offer accepted and is nervous about rates, don’t worry because interest rates can be locked in over the weekend.

Remember we also have the float down: if rates improve more than .25% after lock-in the 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.

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.

Jumbo loans are loans that have a loan amount of $625,501 and above on conventional programs.

Conventional is also known as Fannie Mae and Freddie Mac financing.

If you have any questions or comments, please contact me or call 310-218-6855.