Mortgage Rates Continue To Remain Attractive On Weak Dollar
Posted by Dennis Pease on Friday, November 13th, 2009 at 9:51pm.
Rates are just a bit better than last Friday, as shown below. The Univ of Michigan's highly watched Consumer Confidence report came in much lower than expected today, but it didn't seem to have an effect on the markets. However, I'm sure the retailers are paying attention, and are no doubt, nervous to say the least.
There's a lot of talk right now about the strength, or lack thereof, of the US dollar. There seems to be some unspoken plan to keep the dollar value low to entice the rest of the world to buy US goods and participate in our market trades. For many investors outside the US with stronger currencies it makes perfect sense. For our markets this is not necessarily a bad idea in the short term. However, having our currency remain weak in the long run is definitely not a good thing.
There are many factors that will ultimately bring the dollar back to it's rightful position as the “world's reserve currency”, not the least of which is the short term interest rates which have remained so low for so long in order to bolster the economy in these rough times. Once those rates start climbing, and they will, given the inevitable inflation that looms on the horizon, we'll see trade, the markets, and mortgage rates begin to look very different. But for now understand that the cheap dollar is the major support for our stock market, bond market, and therefore our mortgage rates. Remember, both stocks and bonds are dollar trades.
Real estate still seems to be moving in the right direction, albeit slow. I'm hearing reports of more open house traffic, and hopefully that will even pick up a little with the extension of the tax credit program.
Let me know if I can help you in anyway. My cell phone will be on as usual.
Have a terrific weekend!!!! Go Ducks and Beavs! (I guess I'll have to take sides pretty soon) J
The following rates are based on 30 day locks with no discount points, as of this morning. They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised. Certainly there are other specialized programs available, depending on the qualifications of the buyer.
30 year fixed conforming = |
4.750% |
|
15 year = |
4.250% |
|
3/1 ARM = |
3.625% |
|
5/1 ARM I/O = |
3.625% |
|
Jumbo fixed = |
6.000% |
|
Jumbo ARM = |
4.000% |
|
FHA/VA 30 year fixed = |
4.750% |
|
Prime rate is currently = |
3.250% |
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Share2 Responses to "Mortgage Rates Continue To Remain Attractive On Weak Dollar"
Inflation is definatley something we should all be looking at. The dollar has taken a hit. While the dollar may eventually be the strongest currency again it will take some time for adjustments in other markets.
Posted on Sunday, December 20th, 2009 at 11:53 AM.
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I was reading on Lenderama.com about this topic, and Robert seems to think that mortgage rates can't get much lower. I would tend to agree with him. Inflation is going to be the talk this week I imagine with all sorts of indicators being released this week. I'm trying to be optimistic, like you, that the dollar will get "back to it's rightful position."
Posted on Monday, November 16th, 2009 at 8:44 PM.