Full Recovery in 2011?

“We are becoming increasingly convinced that 2011 will be the year in which economic expansion finally puts down deeper roots and blossoms into a full blown, job creating recovery,” said long time bear Ian Shepherdson, chief economist at High Frequency Economics in Valhalla, New York.
Good Afternoon!
I was hoping to send out some good news this week. Based on higher than expected consumer spending, manufacturing orders and an improving job market; the economy is starting to see some more consistent signs of improvement. Most economists agree that the possibility of a double dip recession is now very small. This is great news for our industry. As jobs and job security come back on-line we will see an increased demand for home buying. Mortgage rates have been rising this week due to China and other foreign investors tightening their balance sheets and not purchasing as many US Treasury Bills. Once the recovery is in full swing be prepared for a steady rise in interest rates. I have been told December and June are the two biggest months for closings in Atlanta according to MSL. So now is the time to pick up the phone and pound the pavement. We have SEVEN weeks left in 2010 and plenty of time to end the year with a BANG! We are still closing our loans in less than three weeks; so if you have anyone who needs a solid mortgage at great rates please give me a call!
Have a great weekend!
Damian
Source: http://www.reuters.com/article/idUSTRE6A959320101112November 11, 2010

Current Mortgage Rates
http://www.freddiemac.com/pmms/

FED QE2

I hope your November is off to a great start. The big news this week is the elections and the FED QE2 (Quantitative Easing) hitting the markets. We have seen interest rates once again rally and push mortgage rates into all time lows. No matter who you voted for, the fact that elections are over is a good thing. The markets hate uncertainty and now that the next wave of political leaders have been established and their agenda have been announced; business and consumers can get back to business. A Republican led Congress is considered “less regulatory and more business-friendly.” Hopefully this will also give banks the needed confidence to start lending again to small businesses. In regards to the QE2, the Fed is taking an aggressive stance on job creation. The FED has agreed to purchase $600 billion in Treasuries. This will hopefully drive down interest rates and that will prompt consumer and business spending. The spending will create more jobs and the jobs will create more spending and the we have a cycle of true economic recovery.
On the mortgage front, we had a major change on the required minimum FHA score going from 620 to 640. However, most borrowers who will fall around 620 should be able to obtain the needed 640 with a little bit of guidance, time and money. I am happy to help any of your clients rebuild their credit. We are still closing most loans in less than three weeks. So if any of your clients need a loan please have them give me a call.