Mortgage Market Update
Mortgage Market Update, December 23, 2012
This weeks mortgage update was marred by the failure of our elected officials to bring some certainty to the market by finding a solution to the pending fiscal cliff. Fortunately, this wasn’t necessarily bad news for the mortgage market since rates ended the week slightly lower. This rate while a good sign isn’t available to everyone.
Other news mattered
Another interesting reading in this weeks financial news included a change in third quarter Gross Domestic Product (GDP) which was revised upwards. This means that instead of 2.7 percent, the actual number was 3.1 percent. This is good news for consumers and business owners alike. Imports decreased, there was an increase in business investments and more government spending all led to the improved numbers.
Greece’s debt saw a slight improvement in ratings which is good news for the markets overall and core personal inflation numbers also showed good signs, coming in at merely 1.5 percent over last year. Oil prices showed some increase this week, just over $90 a barrel which is the highest since October.
Unfortunately, this weeks news may be an anomaly as it is largely anticipated that the United States will head over the fiscal cliff since it does not appear that Congress is willing to allow any increase in marginal tax rates and the White House seems unwilling to consider any bill that doesn’t increase rates. This stand-off seems to set us on a path that may be challenging to recover from, especially if the lack of a deal continues much past the first of the 2013.
What should you do?
For most homeowner’s the only thing that can be suggested is that you hold on tight. It could be a bumpy road that we take into 2013. However, if you’re one of the many homeowners who have pending loans, you may want to consider locking in your interest rates now before they begin fluctuating. Most economists predict that a trip over the fiscal cliff (regardless of how long that trip is) will send interest rates higher and may also impact the feds buying spree of
Other concerns for the fiscal cliff include the dramatic cut in spending in defense contracts and other government spending. This could lead to thousands of layoffs and people who are currently running out of unemployment benefits may not have a lifeline. Unfortunately, we truly are at the mercy of our elected officials.
If you are considering refinancing your home, the next seven to ten days may provide your best opportunity to lock in a rate at record low levels. If you have not filed an application for refinancing, contact Core Mortgage Financial and we’ll help you get started immediately so you can take advantage of these low rates before they head upwards.
Disclaimer: Mortgage Market update is for December 17-21, 2012. This article is for informational purposes only. The mortgage market update should not be used for rate lock guidance