Rates:
Over the last 2 weeks we have seen a monumental shift in rates, so much that rates have sank at least .25 just this week.
WHY????
Well lets look at the news 1st:
1-Home Sales have been in a simmer mode, we have not seen the usual spring bump, nationally, that we usually do.
2-Next we have OIL, which is putting a hamper on the US consumer to spend money. Like I have always said, we need the consumers to spend us out of this recession.
3-Next we have employment, which is the big 1000 pound gorilla in the room.
This week we saw unemployment claims, once again go over 400,000 and actually tick towards the 500,000 mark. This was not real good news.
Then today, March unemployment numbers came out, it showed that the US Economy grew by 244,000, but unemployment went up from 8.8% to 9.0%.
BUT...
Although quite a few people like this number, the harsh reality will soon come into focus. We may have gained 244,000 jobs last month, but just Wednesday we had over 400,000 people file for 1st time unemployment. So last month we gained 244K, but lost 1.6M...
4-Finally we have had inflation subside, although you really can't tell that by gas. Most economist and talking heads feel that inflation is prett tame and the Fed will not have to raise rates anytime soon to hedge off inflation.
Now on to the Charts:
You can see by the 10 year Bond chart that we have now traded fro 3 days under the 3.25% mark, which means our next step is the 2.95% mark. Thus interest rates have declined because more people are buying Bonds.
Could HIGH Oil prices push us into a double dip recession?
So to wrap all of this up in a nice bow: Rates are at 2011 all time lows, we are seeing Government Rates in the VERY low 4's, and at this current trend, could see them into the High 3's by end of next week.
Conventional rates are a little higher because their bonds are not as aggressively, so for the 1st time in a long time, they are higher than Govies.
Next week is full of economic reports which could push the bonds even lower, and although we are no where close to November's lows, the trend is pushing it that way.
What do you think, I have opened up the blog for COMMENTS, TELL ME WHAT YOU THINK!
How Rates Work:
Here is a GREAT web link, a 2 minute tutorial on how rates work, it is WELL worth the watch:
www.YourRateExplained.com
I am also going to have this linked onto my web site in the Realtor Web Page, so you can send you clients there, they can read my blogs, download flyers and get this link on Rates Explained!
Downpayment Assistance:
Now some of you have taken me up on this, so good for you.
But some of you still have not, so let me change the words up a little:
Do you have a family of 4 making less than $49,000 per year. YES
Are they 1st time home buyers. YES
Do they have at least a 600 FICO score. YES
Then I have a up to $8,000 down payment assistance program for you, it is the HOME GRANT!
Yes, going FHA, and getting a 3.5% GRANT, a family of 4 can get 100% financing, with ONLY $500 of their own money required.
AND you can roll in up to 6% for closing costs.
AND rates today are 4.50% (4.875 APR)
DON'T FORGET, I HAVE NOW OPENED UP THE BLOG FOR COMMENTS (ACTUALLY I DIDN'T KNOW I HAD NOT HIT THE BUTTON). REGISTER AND COMMENT!