Financial Update by Maurice Soussé

I hope you had a great 4th of July. Interest rates a spiking up this morning as the 10 year treasury has hit a multi year high hitting 2.7%. Yikes! This is due to the lower unemployment numbers that came out this morning. Traders believe the FED will taper the MBS buying sooner rather than later and they are selling off bonds. Rates not only opened higher, but we have had a rate increase again within the last hour.

Now is the time to look closely at the 7 and 10 year ARM’s that are fixed for the initial duration and then turn to an adjustable rate after that time. This are great programs for most buyers as the average shelf life on mortgages is between 7-10 years.

Our quote this week rings true for the season. Jessi Lane Adams said “I love my freedom. I love my America.”