Well, here we are on the Monday before the Fourth of July. What should we expect for the week?
- As the week progresses, expect to see the moves and the volatility on Wall Street get more and more accentuated. Why? Because there will be more and more of the people who are left on Wall Street are going to be heading out early for the 4th of July weekend. So the trades that are there will make the market act “strangely.”
- The Chinese government came out over the weekend and basically said, “We don’t have any plans to change our buying habits of Treasuries.” The market at first said, “Yeah!” Then they read the speech more closely and saw that the Chinese government official used the term, “drastic” in reference to changing plans. In other words, “We aren’t going to change our plans tomorrow.” Does that mean that they are leaving the door open for changing later? Stay tuned, the China saga isn’t over yet.
Rates have hardly changed at all this morning. My recommendation remains to lock all loans. Here’s why:
- The China “factor” is an unknown but it’s almost certainly going to be either a non-factor or something that pushes rates higher.
- The fact that the Fed said that they don’t see deflation as an issue means that more than likely the opposite of deflation is more likely to come into play. Remember, interest rates don’t react kindly to inflation.
See below for some “samples” of the rates I’m quoting today. I’ll keep in touch,
Tom Vanderwell
Purchase, Owner Occupied, 30 year fixed, $417,000 loan amount, 80% loan to value, 5.125% with 0 pts, or 4.875% with 1.125 pts. 30 day lock.
Purchase, Investment Property (1-4 unit), $125,000 loan amount, 75% loan to value, 6.25% with 0 pts or 5.75% with 1 pt. 30 day lock.
APRs are available upon request