Financial Update by Maurice Soussé

A strong jobs report yesterday pushed 10 year treasuries up to 1.95% at closing. That is a huge increase in one day pushing rates up an .125% from yesterday. Many traders are questioning whether this is the turning signal for the FED to increase interest rates. The FED has stated they will begin to increase rates once the unemployment numbers decreased. 257,000 new jobs were added which beat expectations…we had two rate increases within four hours.

Having said that, take a look at the 30 year fixed rates. The conforming rates are still only 3.75% at no points!!! Buyers must take advantage of these low rates while they still exist. They will not be around for long. Let’s show an example of how rates affect payment.

  • $400,000 Loan Amount at 3.75% = $1852 per month
  • $400,000 Loan Amount at 4.5% = $2,026 per month

That is $174 difference per month. This example shows how important it is to take advantage of these low rates.

Have confidence in your ability to help. Henry David Thoreau said “What you get by achieving your goal is not as important as what you become by achieving your goal.”