Financial Update by Maurice Soussé

Interest rates dropped this week as the stock market plunged 300 points this morning. The 10 year treasuries are back down to 2.03 with interest rates dropping an .125% across the board. The question now is will the FED lower rates in September? With economic numbers like this might the FED raise the discount rate in September?

The FED’s job is to keep our inflation intact. If we raise rates while others are dropping them, does it signify we are the leading global economy, or do they wait see what happens with Europe and Asia. Some analysts say we are the leader and we need to do what is right for the US which is raise rates. Counter views say if we raise rates, we can push the US back into recession. Stay tuned…

I wanted to bring up a reminder about seller credits. Seller credits are only allowed for closing costs and pre-paid expenses; not repairs. Please also note that any last minute credits that occur must go to the appraiser to comment whether the credit affects value. That takes 24 hours usually. Then the appraisal has to go back to the underwriter to sign off. Another 24-36 hours. Then we go to loan docs assuming the borrower waived their right to any appraisal changes. The point being is last minute credits do affect closing times so try to be careful. We do all we can to rush them, but, there will always be a delay due to regulatory guidelines.

George Eliot said “our dead are never dead to us, until we have forgotten them”. Take a moment today to reflect on someone who made a difference in your life and give them a little smile.