For an up-to-date rate quote for your particular situation, call Chris Lester, PrimeLending, at …804.767.7566
30 year conventional fixed – 4.5% + 0 + .75
30 year FHA fixed – 4.375% + 0 + .75
5/1 conventional ARM – 3.125% + 0 + 0
5/1 FHA ARM – 3.25% + 0 + 0
The Week in Review
Yet again we ended the week with mortgage rates higher than the previous. Stronger than expected consumer confidence, ADP employment, and construction spending data crushed the bond market mid-week causing interest rates to skyrocket. The bleeding was stemmed a bit by the awful employment report on Friday which showed a slight increase in unemployment and a much less than expected job creation of 39k non-farm payrolls compared to the expected 140k. These are awful numbers and job creation is anemic. We need to create new industries with new jobs and we will. Remember that 90% of us are employed and malls and planes are full. We will get there.
The Week Ahead
We have 3 Treasury auctions next week, and if we receive strong foreign demand then rates should benefit. The last round did not go well, but that was a holiday week. The University of Michigan Consumer Sentiment report will be released on Friday. This is a measurement of consumer attitudes via a telephone survey which gathers information on consumer’s expectations of the overall economy. A good consumer sentiment usually indicates a consumer who is willing to spend. Consumer spending is the majority of our economy. A lower than expected reading can benefit rates.
Buy a Goat
If you have the capacity you may want to consider a donation to World Vision to help an impoverished community with clean water, goats, or some other important form of sustenance.
Have a great weekend!!!