Mortgage Rates Flat and Very Low

June 4, 2010

Daily Mortgage Updates

Doug Katz Mortgage Broker 4 June 2010 – Coming out of the Memorial Day weekend, mortgages were, for the most part, flat this week. There was no shortage of economic data, however, with reports on mortgage applications from the Mortgage Bankers Association and pending home sales from the National Association of Realtors. Additionally, the Labor Department issued job growth and unemployment statistics.

Mortgage data was a mixed bag, which actually matched expectations. Applications for purchase mortgages were off by 4.1%, but the recent drop in rates bolstered refinance applications by 2.4%. In short, rates are still good, but buyers are looking for bargains. The now expired Federal Homebuyer’s Tax Credit had provided a catalyst for buyers to make the decision to pull the purchase trigger, but without the perceived bargain, demand has stalled. Pending sales of homes followed the same expected trend. As many forecasted last month, the last minute efforts by buyers to take advantage of the National Homebuyer’s Tax Credit boosted the May pending home sales by 6%. The main take away to current buyers is that rates are still low and there is a supply of home that have not yet gone under contract.

Outside of the housing market, eyes were on the continued anemic labor market. While jobs were created, the increase of 55,000 lagged behind the expected 75,000. New claims for unemployment benefits dropped by 10,000, which represented a positive signal as conventional wisdom had pointed to half that number. This data coupled with a mixed bag of reports on retail sales pushed stocks mildly lower, but not enough to influence mortgage rates. So, from a historical perspective, rates are still extremely attractive.

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About Doug Katz

As the Senior Mortgage Banker and Sales Manager for Chicago Bancorp, Doug not only originates loans for his personal business, but also oversees affiliations with banks and other financial institutions that depend on Chicago Bancorp to meet their client’s lending needs. In this role, Doug directs the day-to-day mortgage sales operations of over 25 branches in a multitude of Chicagoland’s diverse communities. He brings to these relationships a wealth of industry experience and a dedication to an exceptional client experience that has established Chicago Bancorp as Chicago’s pre-eminent mortgage solution providers. Prior to joining Chicago Bancorp, Doug attended and graduated from West Point. Upon graduation, he was commissioned as an officer in the United States Army Artillery, where served 5 years in numerous roles and in various deployments include service in Kuwait. In addition to his Bachelor’s Degree from West Point, Doug holds an M.B.A. from Loyola University Chicago, where he was also inducted into the Beta Gamma Sigma Honor Society. He also served as President for the West Point Society of Chicago from 2003 to 2005 and still serves on the Board of Directors. When not working, he spends his time with his wife and three children in their hometown of Oak Park, as well as pursuing his passions for fitness, cooking and the banjo. Doug can be reached by phone at 312.738.6079, by email at doug@chicagobancorp.com, on his own blogs, BankerDoug.com and Vet Money Matters. He's also on LinkedIn.

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