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Health & Fitness

New Stock Highs Bad For Home Loan Rates?

If the S&P is able to reach it's all time high tomorrow, I would be looking for that correction!

The Dow Jones Industrial Average closed today at a new "ALL TIME" high of 14,253. This has been mainly fueled by good housing news of late, and a rumor that the House may have a compromise to help either end the sequester or at least kick the can down the road one more time to September. Even though this was a record day for the Dow and many individual stocks, the mortgage Backed securities market only closed down 10 basis points on the day. This was due to the Fed still buying mortgage bonds as part of the quantitative easing policy that now looks likely to continue at least through 2013. I am going to recommend locking your interest rate into the ADP Jobs report scheduled for release tomorrow as it would have to come in way off its expected mark to cause the stock market to pull back from the euphoria it is feeling right now.

If the S&P is able to reach it's all time high tomorrow, I would be looking for that correction I have been saying the stock market is due for to come around real soon and that could cause mortgage backed securities to get a real big boost to some better interest rates.

If you would like to talk about your specific scenario or needs, please do not hesitate to call or email me directly.

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*This statement of current rates is not an offer to enter into an agreement for a loan at a specified interest rate, number of points or both. Current interest rates and discount points are subject to change at any time without notice to you. Stated rate examples were calculated using a $300,000 loan amount, 80% LTV and 720 Min Fico at the stated term lengths.  Licensed by the Dept. of Corporations under the CA Res. Mtg. Lending Act – 431-0421; Rates and charges in the advertisement do not apply to all loans made by the financial institution.


Rob McNelis

Loan Officer - NMLS# 830519
Direct: 619.279.6162
robm@summitmortgage.com
www.robmcnelis.com

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