Financial Update by Maurice Soussé

Rates are flat from last week with a bump up and back down in the early part of the week. The Debt Ceiling still plagues the financial markets while the game of chicken is being played by politicians. This week Moody’s said it was possible for a US Debit downgrade if there is no agreement to raise the borrower limit. If the debt ceiling is not raised, the government cannot spend money it does not have and will miss interest payments due to creditors. That would be a colossal tragedy to our financial markets as the stock market would tumble and the rating of US Treasury bonds would disintegrate.

On to positive news; the rates are fantastic this week. The jumbo 7/1 ARM to $1.5 million loan amount is at 3.625%!! This is incredible. Underwriting times on conventional loans is speeding up again and 30 day closings should be fine on conventional and FHA loans.

One more reminder; FNMA has changed their guideline on refinance loans for properties recently purchased. A borrower can buy a property and prove through the closing statement that they paid all cash. We can then offer a cash out refinance immediately rather than the 6 month waiting period that was in place.

Winston Churchill said “Continuous effort, not strength or intelligence, is the key to unlocking our potential”.