Mortgage thoughts from Loan Officer, Rob Clark

Mortgage rates hit new record lows last week and stocks climbed, both without
any major
announcements from the government. GDP was adjusted downward to
6.3% and the unemployment
rate climbed to 8.5%, both in line with the
majority of analysts’ expectations. While we are far from
out of the woods, a
few more signs lead many to believe we may be very near the bottom of
this
recession. Manufacturing continues to contract, but the rate of
contraction has stabilized. Most
housing indicators are showing hints that
housing could also be near the bottom. With mortgage rates
staying at such
low levels, and refinance activity climbing, we could see some additional money
in the
hands of homeowners soon. If they begin to spend, we’ll see a few more
signs over the next few
months that the economy finally hit bottom and can
begin to recover.
This week is a very light week in terms of economic data
due. With rates at record lows and many
technical indicators pointing upward,
there is a better chance that rates will move up this week.

Rob Clark, Preferred Mortgage RSCLark@cbmove.com