Financial Update by Maurice Soussé

Interest rates held steady this week amid rumors of a rate increase due to better unemployment numbers. The monthly employment report is usually the largest motivator of market movements in regards to rates. The rates after Friday’s news didn’t move at all.

Freddie Mac posted positive income numbers for the quarter ending December 31. The loans they have originated after 2008 have performed well and during 2011 only represented a 1% loss (which is a normal number).

B of A has struck a deal with the government that would cut their penalties if they offer deeper cuts to the mortgages of distressed borrowers. B of A would have had to pay $850 million in penalties as part of their large settlement, but may have to pay less depending on how much they write down to consumers. More to come on this…

Take a look at the jumbo rates this week. The 7/1 ARM is at incredible lows and 7 years on mortgage is traditionally a long time.

rates 31112, The Sousse Group