Mortgage Rates Dip in Wake of Increased Libyan Unrest

February 25, 2011

Daily Mortgage Updates

Doug Katz Mortgage Broker 25 February 2011 – Finally, after weeks of pent up parody lyrics I am again able to unleash upon you, my loyal readers, a musical interlude and tribute the late, great Groucho Marx.

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Libya (Sung to Lydia, The Tattooed Lady)


Libya oh Libya, Oh have you seen Libya
Libya a country unraveling
She is 6th in Middle East oil reserves
The unrest in her people shakes world market nerves, so

Libya oh Libya, Oh have you seen Libya
Libya a country in turmoil
If she stops pumping her precious oil
European consumers begin to toil
And equities tank in downward coil
For low mortgage rates thank Libya

I will spare you the rest, but the basic gist is clear. The unrest in the Middle East is driving the train right now for world markets. Libya, in particular, is of concern as they produce a good deal of the oil used in Europe and the clashes have become increasingly violent. This has sent ripples through the entire global marketplace with major spikes in fuel costs, which results in concerns for everything from consumer spending to operating costs for companies. The result is a flight to the quality of good old US Treasuries. With an influx of money, rates drop on T-bills, as well mortgage backed securities. In the end, we see better pricing for consumers on mortgages.

This rang true this week as the upward pressure on mortgages that we have seen as of late evaporated. Mortgage pricing actually improved with best execution, no points loans pricing back near 5%. It is important, however, to realize that this could be a fleeting opportunity and rapid resolution in Libya and other countries could reverse the recent gains.

My mortgage rate lock advice is actually markedly different. I am now recommending that only my clients closing in 7 or less days LOCK. I believe those closing 15 or more days from now have the luxury of FLOATING a bit with a keen eye on any upward movement.

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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, on his own blogs, and Vet Money Matters. He's also on LinkedIn.

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