Weekly Update 10/14/2011 - The New Normal

The “New Normal” is what this week is about.  It's important to make sure our ‘reality’ lines up with actual ‘reality’.  This involves understanding who to belive instead of our ususal sources of information.  Rates have ticked up over the past 2 weeks because fears over a double-dip recession and a Greek default have calmed down.  BUT, borrowers are still reading the two week old ‘Lowest Rates of All Time’ headlines.  To understand the new reality, we look to Uncle Sam.

Mortgage rates tend to follow the 10 year Treasury bill, not exactly, but generally in terms of movement up and down.  The yield on a 10 yr T bill has gone from 1.7%  to 2.2% -or an increase of ½% in RATE from the lowest low.  Mortgage rates have reacted in a similar upward fashion, but not as much because the Fed’s buying of mortgages is helping to keep them down. 

Don’t risk loosing an opportunity on an incorrect reality.  Go to ANY financial website and look at the 10 Yr. T-bill charts.  You will see what waiting might have cost you and that the best time to grab an opportunity is when it's in front of you....like right now.

Stephan Akin, Sr. Loan Officer, NMLSR# 231112
Office: 214.987.9999
Apply Online: www.stephanakin.com
One of the Top Originators nationally 2010
One of D Magazine's Best Mortgage Professionals 2010

WR Starkey Mortgage, LLP NMLSR # 2146
2740 N. Dallas Pkwy., Suite 150, Plano, TX 75093

The views expressed are those of the author and do not represent Starkey Mortgage.

Starkey Mortgage is an equal housing lender.