Final FInancial Update/ Week of August 10, 2009

Good Morning Everyone and Happy Friday! This week has been a very good week for rates with an especially good move happening today. The University of Michigan August consumer sentiment survey came in this morning at 63.2 – far below the 69 anticipated. Apparently consumers aren’t as optimistic about the near future as stock traders are. We’ve been waiting for some realism to hit the markets with an incredibly resilient equity market of late. Today we’re getting it, as this report just knocked the stuffings out of several weeks of progressive gains in the stock market. If we close where we are right now, the Dow will have lost about 1.4% for the week.

All of this is having a positive affect on rates. Yesterday we improved throughout the day, and today we get some more follow through. Rates don’t reflect, in my opinion, the large moves in credit markets that we have seen in the last couple days. Maybe lock desks are looking forward to the weekend. We hope to get some follow through next week, of course.

***** Notice a big addition to our rate sheets this morning. We’ve added the 5/1, 7/1 and 10/1 ARM’s to our conforming rate sheet, and the 5/1 ARM to our “confumbo” rate sheet (page 2). Hopefully this will meet the need of a certain sector of borrowers who might want to take advantage of these extremely low rates. The 5/1 ARM on page 1 is correct, we just need to move the grid down. We still have a few kinks to work out of the system. I’ll follow up in a few mins with the lower note rates.

If you would like to lock a loan this morning, catch us early …. I’ll be in the office all day if you need me. I was tied up yesterday working on these rate sheets. Call me here or email me with your pricing or loan scenario question. Have a terrific Friday and a very restful and relaxing weekend!