Jason Bernabei, TriCastle Realty
DEL MAR, September 10 2012 --
Goooooood Monday morning San Diego!! It looks like we are into some less humid,
Indian summer weather at last! While out in the field this weekend, I’ve been
as far north and east as San Marcos, and as far south as Imperial Beach; and
let me tell you, it’s been beautiful all the way around. And in my neck of the
woods Old Del Mar? Well, let’s just say I’m reminded again why I chose the
coastline of Southern California to raise my son and build my business.
DEL MAR, September 10 2012 --
Goooooood Monday morning San Diego!! It looks like we are into some less humid,
Indian summer weather at last! While out in the field this weekend, I’ve been
as far north and east as San Marcos, and as far south as Imperial Beach; and
let me tell you, it’s been beautiful all the way around. And in my neck of the
woods Old Del Mar? Well, let’s just say I’m reminded again why I chose the
coastline of Southern California to raise my son and build my business.
Whether you live
in San Marcos, Del Mar, IB, or Cleveland for that matter, you experienced a
tumultuous ride if you are a loan officer faced with the responsibility of
locking your clients’ rates last week. Yes, mortgage markets worsened slightly
in last week’s holiday-shortened week. As you might expect, Wall Street took
its cues from Europe and from the freshly released U.S. jobs data. With all of
this unfolding during the tail-end of the Democratic National Convention, mortgage rates were down and back up and then down again. Depending on which day, and in
many instances, which hour, the variance was certainly herky-jerky to say the
least.
According to
Freddie Mac’s weekly mortgage rate survey, 30-year fixed rate mortgage rates
averaged 3.55% nationwide last week in the first half of the week. Then came Thursday’s
meeting of the European Central Bank(ECB). The ECB is similar to the
Federal Reserve in that it primarily provides liquidity to banks in times of
crisis. Thursday, the European Central Bank made a big splash, with the ripple
effect felt across the pond in the form of these tumultuous end-of-week rates.
Here’s what
happened: To aid Spain and Italy, the third- and fourth-largest Eurozone
economies, the European Central Board launched a bond-buying program meant to
instill a renewed business confidence in the 2 nations, which comprise a huge influence
in the overall Eurozone. The move calmed investors and sparked a broad equities
market rally. Mission accomplished, that is, with a large caveat here stateside. U.S. mortgage
rates climbed as much as 0.25%. If you tried to lock a loan Thursday, you may
have been looking at a 4% rate, even if your borrower has topnotch grade A
credentials. That was Thursday…
a
new day dawned, and so with it came the release of the U.S. Bureau of Labor
Statistics’ August Non-Farm Payrolls Report.
The news therein sent mortgage rates back down. As it turned out, far fewer
jobs were created in the U.S. than was expected. 96,000 net new jobs were made
in July, with the “experts” on Wall Street having forecasted an approximate
130,000 predicted new jobs. Overall, this news increases the likelihood
of a new Fed-led stimulus — perhaps as soon as this week, and sends us
further headlong into a contentious Presidential Election Season. Also, the Federal
Open Market Committee(FOMC) meets for the 6th time in 2012 later
this week, and this looms as another game-changer in the world of mortgage
rates. Now, if the Fed. announces a new round of market stimulus, expect mortgage
rates to fall. If it doesn’t, mortgage rates may spike back up.
In any event, stay
tuned to Monday Morning Market Watch
with me, Jason Bernabei, and I’ll keep you up to speed on industry happenings
as always! If you are looking to refi, or need a purchase loan, or are looking to buy
or sell property, need a good short sale negotiator, or if you just want to
shoot the breeze on Housing, feel free to contact me. Until next time San Diego,
enjoy a great Indian summer in America’s Finest City!
Jay's Outlook: After last week, Hell if I know...
Jason Bernabei, TriCastle Realty
