Bank Failures and Increasing Spending is a major concern

The nation’s banks are still in a terrible financial meltdown. Despite the government TARP bailouts we still have lost eight-four banks this year and counting.I would guess we will lose another 100 banks compared to twenty-five last year. The main reason is increased unemployment and folks cannot refinance due to home prices decline.

The FDIC said last week their reserves are in good shape for now but they might need a bailout later this year. WOW, bail out the FDIC? I thought they insured our deposit. Whoops, they do!!

Now the taxpayers will bailout the FDIC who bailed out the failed bank. What is next? Do we all need to cash out our accounts and put the monies under the mattress or bury cash in my back yard?

Who knows, all I do realize and majority of American see the increased DEBT will be a major hurdle for us to overcome for many years to come.The media says we are out of a recession. Are they joking? I thought it took two quarters of gains to end a recession. I think the media conveniently forgot that point.

The government recently released a report showing for every dollar brought into the GDP (gross domestic product) it takes $6.49 of new debt. The govt keep spending money on programs hoping we spend it back into the economy. All I know we have to stop SPENDING and start SAVING. Imagine that old mindset.

SAVE DON'T SPEND IF YOU CAN !!

Mortgage Rates in Naples, Florida

We have the BEST Mortgage Rates in Naples. click here to get preapproved.

National Average 5.32% with .80% loan origination

Our rates 4.875% with 1% loan origination

5.125% 30 Year Fixed with NO broker points.

MARKET UPDATE

The stock market has started the week with gains. Pushing the 10 year bond and rates up this morning. This week we should have some MAJOR volitilty in the mortgage market. ( what’s new)

Commerce dept, consumer confidence, durable goods, US factories and the GDP. If manufacturing shows weakeness which is expected by most economist than we would see an uptick in rates.

I am recommending NOT to lock this week unless you are closing within a five day period. Treasury bond auctions later this week. I will be watching to see how much more Fed funds will be pushed into the system to keep rates low.

MORTGAGE RATES IN FLORIDA

Mortgage rates in Florida (edit/delete)

We have the BEST Mortgage Rates in Florida! With first class service and the best pricing around! It’s a great feeling to know my rate is always better than everyone else. Banks do not beat us! click here to get preapproved.

National Average 5.29% with .75% loan origination

Our rates 4.75% with 1% loan origination

5% 30 Year Fixed with NO broker points.

MARKET UPDATE:

The labor market reported $576,00 new claims for unemployment benefits. It was higher that any analyst expected but to my surprise did not have much impact on rates. Usually when we see an increase in unemployment, it pushes rates higher. Leading economic indicator saw an increase of .6% which was nominal and thus left rates flat today. We will see tomorrow report on existing homes sales but will not have a major impact unless there is a significant increase or decrease. I am telling my clients to float your rate for now and watch the market carefully.

What TWO items are critical when Buying / Financing a Home ? I can tell you !

National Average 5.32% with 1% loan origination

Our rates 4.75% with 1% loan origination

5% 30 Year Fixed with NO broker points.

Rates did go up as I predicted yesterday but are sliding due to the stocks slipping this AM.

MARKET UPDATE:

If the stock market continues to increase we could see rates follow. We do have one thing to look out for tomorrow. July leading economic indicator will be out tomorrow. This usually is a measurement of how the next three to six months forecast for all the economy. If this indicator is poor we might see rates go down after the report is broadcasted. If it goes UP than most likely rates will follow. It has been a rollercoaster for us all when it comes to rate volatility. As we can see the stock market, Real Estate, Jobs have also been crazy swings. Don’t expect any changes anytime soon.

The real question a majority of my clients are asking is when is the bottom of the real estate going to happen. I tell them you should consider two things when deciding when the BEST time to buy. The two items to keep in mind is getting a good price on a home and securing a GREAT interest rate. When the real estate market does show a considerable upward trend then stocks will rally and the 30 year fixed rate will be in the low 6’s. It’s best not to wait to be a bottom feeder but strategically align yourself to get a GOOD rate and a GOOD deal on the purchase price.If you look at the long term interest you pay on a loan VS the cost of the home, you will start understand the value of getting both of the two factors RIGHT in your purchase.

MAKE SURE TO PICK THE RIGHT REALTOR AND LOAN OFFICER !

Keep this in mind and good luck buying you HOME!!!!!!!!!

LOCK your Mortgage rates in Naples, Florida

DAILY MORTGAGE RATES IN NAPLES FLORIDA

National Average 5.33% with 1% loan origination

Our rates 4.875% with 1% loan origination

5.125% with NO points

MARKET UPDATE:

Better than expecting earnings have caused the stock market rally this afternoon. Consumer are still wary of the market as a whole. Yesterday was a major sell off on the stock market. The bond market was relatively low today but has increase since this AM. The ten year bond which is a leading indicator of where rates will go is up 3.5% from a close of 3.491%. I would recommend locking this afternoon, as I expect rates to go up tomorrow.

MORTGAGE RATES IN NAPLES FLORIDA

DAILY MORTGAGE RATES IN NAPLES FLORIDA

National Average 5.35% with 1% loan origination

Our rates 4.875% with 1% loan origination

5.125% with NO points

Market update:

The FED last week laid out a strategy to keep rates low moving forward.

They once again will start slowly purchasing Treasuries but will halt if rates move in a upward trend.

I believe the FED will continue to purchase mortgage back securities in the near future.