Another Up Down Week in the Market Ends with Mortgage Rates Up a Bit

October 1, 2010

Daily Mortgage Updates

Doug Katz Mortgage Broker 01 October 2010 – For a week chock full of economic data, the trends this week generally matched those of the previous weeks. Early in the week, low numbers for consumer confidence brought rates to near record lows again for a short time, but this passed and positive news on consumer spending and unemployment numbers. For any action there is a reaction and this positive news was accompanied by a reaction that economic improvements could negatively shape Fed policy. Markets reacted with a 180-degree turn around and an easing of upward pressure on mortgage rates. While this did temper the increase, mortgage rates for Fannie Mae and Freddie Mac conforming loans did end up a slight bit.
WHAT DOES THIS MEAN TO YOU?
We are no doubt in the midst of a very volatile market. While maddening, this rewards procrastination. Because there consistently seems to be a recovery in rates to save those who did not begin their transaction, the psychology of the market becomes an ingrained wait and see approach. My best advice about this is that it works until it doesn’t. There will be a time when rates move up a bit, then a bit more, then a bit more and do not recover. So for the fence sitters out there, you are, for now, still in a pretty good position to take advantage of the rates. I would, however, say the window could close quickly, so decisiveness should find its way into your lexicon.
I am recommending that my clients closing in 15 days or less from today LOCK their rates. For those closing more than 15 days out, I would suggest FLOATING for now with a watchful eye on the markets for the best opportunity.

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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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