Financial Update by Maurice Soussé

Rates dropped again this week as Citi stated the world economy seems trapped in a “death spiral”. Huh??? I’ve never heard that. If we remember back to the 80’s, Japan was in a state of deflation while it was one of the most robust times for America. While global growth has created the need for our economies to become reliant on one another, that does not mean that the US can’t begin a break out to get back to a bull market. Strategists stated the US Dollar would weaken and oil would bottom out soon which potentially created some light at the end of the tunnel.

How do we spin this to a positive? Rates are low!! Period. That creates opportunities for buyers to get homes today for low payments and allows them to afford move up homes even though sales prices have risen. Good for us all? Yes.

Take a look at the jumbo 30 year fixed. 3.625% to $2 million. That means any loan over $625,500 in LA or Orange County can be fixed at this rate. This week’s quote is from a legend, John Elway, who said “I’ve experience the highest of highs and lowest of lows. I think to really appreciate anything; you have to be at both ends of the spectrum”. Appreciate your blessings this week.