I’m putting together another guest-blogger spot on my site. This one is going to be done by Matt Harshey, my office’s in-house lender with Century 21 Mortgage. Here’s his info about the mortgage market this week:
Due to the Thanksgiving holiday-shortened week, the economic calendar served up a veritable smorgasbord of economic news, setting the table for some bond-friendly trading. Wednesday’s news continued to show the economy is a train-wreck with weekly jobless claims at recessionary levels; personal spending falling by 1%, the largest since the 9/11 terrorist attacks; durable goods orders dropping by 6.2% , the most in 2 years. All of this was bond-friendly causing rates to drop from last week. The stock market finished higher with the DOW & S&P 500 both moving up for the fourth consecutive session after enough investors went bottom fishing for bargains. Recent market action suggests we may be seeing the beginning of a bear market rally that could extend into the first quarter of 2009. With this in mind, it’s very important to take advantage of the recent rate dip we have experienced. As you know from the past rate drops, these drops can be short-lived with rates spiking higher in a matter of minutes. If you currently have clients that are looking to purchase, it’s important to lock in while rates are again at historical levels. The last time rates were this low they lasted for 1 day in January of this year, before that you would have to go back to July, 2003. Floating for a lower rate is like gambling, when it’s gone, it’s gone. Lock in while you are ahead. I will be available all week and this weekend to answer any of your questions or inquiries, do not hesitate to contact me.
To get contact Matt: