Financial Update by Maurice Soussé

Happy Friday,

Interest rates are just about flat again from last week. Interest rates are still around all-time lows…Mortgage backed securities hovered flat as the 10 year treasury yield closed at 1.76% today. Imagine that…if you invest money today in a t-bill they will pay you 1.76% for 10 years. That is does not come close to inflation. A better investment might be a residential real estate property during this great opportunity season while rates are low and prices are down. Over that 10 years, I wonder if your appreciation will grow more than 1.76%??

In other news Fannie Mae posted quarterly profits of $2.7 billion, up from a loss in the first quarter 2011 of $6.5 billion. How is that for a recovering housing market? Looking better every day…

On this memorial day weekend we are certainly blessed to have our service men and women to protect us. Our quote this week is in respect to their bravery and courage “A hero is someone who has given his or her life to something bigger than oneself” –Joseph Campbell

Have a blessed weekend.