Financial Update by Maurice Soussé

Please stop and take a quick second to look at these rates!!!!!! Conforming 15 year fixed rates are in the low 3’s??? Incredible!

How about the jumbo 5 year fixed in the 3’s up to $3 million. Outstanding. Remember, this drop in rates can really assist some clients who are on the qualifying border to help qualify.

The beginning of 2010 showed 10 year Treasury bills hovering at approximately 3.85%. A year later we are down at 3.2% as the 10 year struggles to stay in the 3’s. What is driving down this index? Bond buyers are almost being forced into buying these cheap T-bills as the concern for over weighted stocks and commodities cause concern for investors. What drove the DOW back to 12,700? Companies cutting costs? An increase of consumer spending? Or, may it have been the shear revolt of a 3% yield on Treasury bonds which can lose their value if rates increase?

This combination of things has paralyzed investors as they try to figure out if they bite on the sour taste of 3% bonds from a government that is laden in debt, or, do they risk it on the entrepreneurs of Wall Street to run efficient companies hoping we won’t see another DOW at 10,000 or below.

Personally, I like cash sewn in the mattress these days…

Shaquille O’Neal said “Excellence is not a singular act, but a habit. You are what you repeatedly do.”