The Volatility index or the ‘vix index’ is what this week was all about. Basically that is Wall Street’s measure of fear – they call it volatility. When things are calm and people know that they aren’t likely to loose money, the vix is low. When there is FEAR in the markets, the vix is high and market swings are huge. Where did the fear come from?
First, the downgrade of US debt caused concerns. Then the FED came out with concerns over the strength of the economy. They said they will keep rates low for the next TWO years and added fuel to the fear of a ‘double dip’ recession. Finally, and most importantly, the continued melt down of European sovereign debt created doubt as to how it will ultimately affect the global economy. Panic ensued. The stock market plunged as investors looked for a safe place to put their money and the bond market was the beneficiary.
The end result is that we saw rates drop. That is GREAT news for buyers. The bottom line for to tell your buyers is that today’s mortgage payment now buys you 10% more house!!! It’s Christmas in August….and the sale is here!
This week Freddie Mac’s 30 yr. fixed rate survey ended up at 4.32% depending on program, credit and points. Have a great weekend and call us so we can get you approved to buy.
The views expressed are those of Stephan Akin and do not represent Starkey Mortgage.
Stephan Akin NMLSR#231112
WR Starkey Mortgage, LLP NMLSR # 2146
2740 N. Dallas Pkwy., Suite 150, Plano, TX 75093
214-987-9999
WR Starkey Mortgage is an equal housing lender.
