Financial Update by Maurice Soussé

Yesterday’s jobless numbers sent the market for a tailspin yesterday as unemployment numbers fell to 7.7%. This was the best jobs report in 4 years. If you remember my previous email we talked about the FED and their commitment to keep buying 10 year treasury bills in order to keep interest rates low while people are unemployed. This of course helps to stabilize and fuel the economy. The FED won’t simply stop buying T-Bills one morning. They will slowly buy less and less, which will start to increase rates like we saw yesterday. Last weeks close was at about 1.94% on the 10 year yield while yesterday’s closing number was 2.05%. That is a large increase in a week. This pushed rates up by an .125 to .25% depending on the program.

While we know buyers are fighting tooth and nail to get a property, the people debating whether this is a great time to buy may be left behind. Interest rates will start to increase soon. We have most likely seen the lowest interest rates we will see in some time barring a disaster. Having said that, the 30 year fixed rates are still incredible right now; Both conforming and jumbo. Take a look at the attached sheet.

I am moved this week by Willie Nelson who said “When I started counting my blessings, my whole life
turned around”.

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