Financial Update by Maurice Soussé

Happy Friday,

Interest rates pushed up a tiny bit today as the 10 year treasury yield received some upward pressure on good economic news. But, in the background lurks the nasty Greek debt. Greek’s financial fate hangs in the balance as investors have already agreed to a 50% write down on their bonds so at least they get some pay back. The country had deteriorated further since that agreement in October and is trying to avert a total default.

Here’s some trivia for you…at $400 Billion in value, Apple is worth more than the Country of Greece. Only Exxon Mobil has a higher valuation at $420 Billion. Of course Microsoft comes in behind Apple at $235 Billion. Isn’t it cool how a Billion slides right off the tongue these days?

How about these jumbo interest rates. You have to take a moment and look; 2.875% for a five year fixed rate! How about the 30 year true jumbo fixed rates at 4% fixed. These are phenomenal times and we have to make sure buyers recognize the intersection of these low rates and low prices. This has to be one of the greatest times in history to ever purchase a property.

Here is a quick example:

$400,000 30 year fixed rate
4% $1,909
5% $2,147
6% $2,398

As you can see, 2% more in interest rate is $489 a month higher in payment. Incredible opportunity to buy now.

Our quote of the week hits home: “Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not” Dr. Seuss

Have a blessed weekend.

img src=”http://www.thesoussegroup.com/wp-content/uploads/2012/01/image008.png” alt=”Rates, 022012, The Sousse Group” title=”Rates, 022012, The Sousse Group” width=”500″ class=”alignnone size-full wp-image-6138″ />