Mortgage Blog

The fixed rate went down to the lowest level last Friday.
And I got a lots of emails about the interest rate trends.

Though it seems like it's because of the uncertainty of
the market from the debt ceiling, it's actually the economy.
If you read the "small print" lines from the news, the economy
for the 2nd half of this year is not that good. For the
most of the year 2010 and 1st half of 2011, the high tech
sector is the only sector(at least the bay area) sees
good job market, but recently there are lots of bad news
on the market: cisco's layoff 5k to 10k positions; HP is
slowing as well. This is not good for the IT industry.
And California is one of the bigest economy in usa, and the
unemployment rate is still over 10%.

So let's back to the topic, how will the interest be going
for the next a few months?A client asked me yesterday about
30 yr fixed high-balance rate for 4.375%(we did not have
this rate this year yet; and the history rate low rate
was 4.25% for last year). My answer is: we should be
able to get 4.375% rate soon. It's still a long way
for 4.25%, but the trend is on our side.

Let's wait and see. Have a good weekend.