This is La Nice Self with your weekly update for September 21st.........
The past week had some good news:
* Retail sales were up-showing the consumer is starting to buy again.
* The produces price index went up-allaying fears of DE-flat ion which is VERY bad in recession.
*The core CP came in low-showing inflation is in check which is good for interest rates.
*Housing starts and building permits were up- showing that the new home market is starting to expand vs.. contact.
*And finally, jobless claims fell - showing that job losses are slowing.
All of this underscores Mr. Bernanke's claim that "the recession is very likely over". But before you decide to celebrate, remember that it will take several years to get us back to a vibrant economy. The thing is that we are headed in the right direction.
On the first time home buyer front, there is legislation proposed in the Senate that would extend the tax credit into next year and possibly raise it and/or raise the income limits for qualifying buyers.
But.....proposed is a long way from reality. Best to tell your 1st time home buyers that there is no guarantee for an extension and so they should buy now.
This week rates ranged between 4.875% and 5.00% . depending on credit and points.
30 year fixed rate is 4.875 with 1 origination
15 year fixed rate is 4.50 with 1 origination
30 year fixed FHA is 5.125 with 1 origination
