Final Update/ Week of August 3, 2009

Good Morning Everyone and Happy Friday! If you were hoping for a quiet last day of the week so you can get an early start on the weekend . . . you got it. The unemployment report came in with a surprise drop in unemployment figures and the stock market is off to the races once again. Credit instruments have sold off as money is chasing the quick profits over on Wall Street. In a week that we forecasted last Friday would bring some settling to the markets and possible improved pricing, we’ve lost considerable ground. Last Friday at this time 4.875 was a cost of .468 on our 30 year fixed product, today it’s a cost of over 2 points. BUT, we will improve….

What’s all the ruckus about over on Wall Street? The July unemployment report posted 247,000 job losses, far less than the 350K or so anticipated by the experts. It also marks the fewest job losses since Aug. of 2008 – a clear sign that things have improved in the economy. Yet, unemployment is hard to track as this report tells us who is: 1) Out of work, and 2) Able, willing and currently actively seeking a job. Those who have stopped looking for a job or have entered the work force at a considerable change in pay, do not count. Even still, this is pretty encouraging, and we do need the economy to come back . . .

Yet, rates are considerably taking it on the chin this morning. We’re anywhere from .5 to .625 worse in rebate on the lower note offerings, but not as drastic at the higher note rates. Maybe we should think about trying to sell ARM’s. We’re going to be getting them on the rate sheets soon here. When 4.875 on a 30 year fixed is a cost of over 2 points, and 4.875% on a 5/1 ARM is a rebate of (1.385) – it’s time to see which borrowers can still benefit with a shorter fixed term loan. On that same 5/1 ARM . . . 4.5% is a rebate of (.671) . . . 4.25 still has a slight rebate of (.009). Call me for specific pricing if you need a quote.

I’ll be in the office all day today, but if things are as quiet as I suspect they’ll be, I might sneak outta here mid afternoon. Have a terrific Friday and a very restful and relaxing weekend!