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We now offer the new fixed FNMA Jumbo loans for California. Check out our rate sheets. We have great rates!
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Friday, July 4th: We wish you and your family a happy Independence Day.
All economic reports released this morning were bearish. See summary below. Bonds have been all over the board and currently lower as stocks have ignored all bad news and rallied. Today is a short trading day , who knows where we will find these markets at the end of the day. These are volatile markets. If you need a mortgage put a professional to work for you. That is why we are here. Please call us and let us help.
We wish you and your family a happy Independence Day.
Todays Highlights.
U.S. employers cut jobs in June for a sixth consecutive month as soaring fuel prices and a slowing economy forced companies to reduce costs. Payrolls fell by 62,000, close to economists' median forecast, after a 62,000 drop in May that was greater than initially reported, the Labor Department said today in Washington. The jobless rate remained at 5.5 percent after jumping in May by the most in two decades.
Job losses, along with record gasoline prices and tumbling home values, make it more likely consumer spending will falter once the lift from federal tax rebates fades. A weakening labor market may also prompt Federal Reserve policy makers to put off their first interest-rate increase since 2006. U.S. service industries unexpectedly contracted in June as a gauge of prices soared to a record and employment reached an all-time low.
The Institute for Supply Management's index of non- manufacturing businesses, which make up almost 90 percent of the economy, decreased to 48.2, the lowest level since January, from 51.7 in May. A reading of 50 is the dividing line between growth and contraction.
Treasury Secretary Henry Paulson said he is more concerned about the ailing U.S. economy than the threat of higher inflation.
``Our biggest concern is the downturn,'' he said today in a radio interview with the British Broadcasting Corp. in London. ``There's no doubt that high headline inflation numbers are a real concern to Americans, but core inflation is relatively contained and my biggest focus today is on the downside risks, which are housing, oil prices and what is going on in the capital markets.''
Stagflation isn't what it used to be.
While economic growth has almost stalled, and surging oil prices have doubled the rate of inflation since the start of last year, structural changes in the economy since the 1970's mean the U.S. is unlikely to witness anything like the conditions that ravaged it then.
Compared to the 1970's, the economy these days is more flexible, thanks to deregulation and advances in information technology. And it's less inflation-prone, because fewer workers are able to win big wage increases, and policy makers including Federal Reserve Chairman Ben S. Bernanke are more aware of the risks of letting prices spiral.
Regional banks are under pressure and need to raise capital. selling in the financial stocks are a drag on the stock market today with stocks down across the board. The bond market is slightly better than yesterday's close but not getting the typical push that one would expect with the slowing economy. Inflation is keeping bond prices lower and interest rates higher. Folks, this is a no win for all of us. "Stagflation"
Economists have cut their U.S. growth forecasts for later this year and next, projecting no quarter will exceed an expansion rate of 2 percent, as job losses, food and fuel prices and tougher lending rules hurt consumers.
Growth for all of 2008 will be 1.5 percent, the slowest since 2001, with next year recording a 1.9 percent gain, according to the median forecast of economists surveyed by Bloomberg from June 2 to June 11.
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Why bond's are selling and rates are up.
U.S. investors, analysts and traders increasingly expect the Fed to lift rates, with the index rising to 60.4 from 51.3. After lowering the key rate by 325 basis points to 2 percent since September, Fed Chairman Ben Bernanke signaled June 9 that borrowing won't get any cheaper. Policy makers will strongly resist any surge in inflation expectations, he said, adding that the risk of a substantial downturn in the world's largest economy receded last month. In a speech Monday Federal Reserve Chairman Ben Bernanke said policy makers will strongly resist any surge in inflation expectations, delivering his clearest message yet the central bank is done lowering interest rates.
We have seen rates all over the board the in the past several months. The undercurrents in this economy make it impossible to predict the direction of interest rates from day to day. If you need a new mortgage and you find a rate with a payment that works for you, our advise to you is to lock it. The one thing that is certain, the price of oil is driving inflation higher and we know that we will see much higher rates in the near future. Low interest rates cannot co-exist with inflation. That is an economic fact. We are here if you need us. Have a great day.
Market knowledge.
In today's changing market it is more important then ever to work with an experienced mortgage professional. One who understands how what happens on Wall Street affects your ability to get a loan. With our ability to shop numerous lenders we are able to obtain a very competitive interest rate for you as well as offering you the highest degree of service. In today's fast moving credit environment you need a trained professional that will devote the time and energy to give you the service that you deserve.
We don't add:
Broker, Commitment, Lock, Administration, or other extra fees. There is no out of pocket fees up front. Upon locking your loan we issue a Good faith estimate.
ourbestloan@aol.com
We are home loan experts with over 32 years of Real Estate & Mortgage experience. We offer quality service and competitive fixed rate loans. Some loan programs that we offer are; No fee loans, No point, 1st time homebuyers,15/20/30/40 year fixed CRA mortgages, VA, Manufactured Homes, Stated income, Jumbo, Purchase, Refinance and many more.
We are licensed by the California Department of Real Estate #01220999. We have completed all required DRE courses, passed background check's and the final examination required by the State of California.
Thank you for visiting our web site.
The lowest rate will not always save you money but the wrong products and advice will always cost you thousands of dollars.
Licensed by the California Dept. of Real Estate. Broker 01220999
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