Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – March 18, 2010

The Big Room At Sierra Nevada Brewing Company

YOU DON’T WANT TO MISS THIS EVENT!!!

Scott St. John will be speaking at The Big Room At Sierra NevadaThe , Friday, March 26, 2010.  Scott is a 3rd-Term Governing Board Member of Freddie Mac.  You’ll have an opportunity to inquire into expected economic future of the United States, Real Estate and its REO future, and what’s happening behind the scenes that is making closing loans to more timely and difficult, these days.   REGISTER AT THE CHICO OR PARADISE BOARD OFFICES.  $10 includes appetizers.  $15.00 AT THE DOOR!

CPI Reads Low Inflation

The Consumer Price Index was reported at a 0.0% level.  It’s a testimony to the Fed’s Decision to keep rates low for “an extended period” of time.

Labor Market Numbers

So, Emergency Unemployment Compensation (EUC) numbers are going through the roof!  An additional 360,000 people are requesting these claims and those numbers aren’t even a part of the Initial Jobless Claims Numbers.  Until we have jobs numbers changing, the real estate market will not benefit or substantially grow.  That’s the secret!  More than low rates!

Short For Time Periods...May As Well Lock

Locking Advice

Same story as the last few days.  If you float, prices can’t get much better, so you may as well lock.  The benefit of this scenario is that if you have a 60 day escrow, as opposed to a 30 day escrow, the cost to hold your interest rate is greater for that greater period of time.  So, if we continue to be in a “float, ’til the market changes,” mode, than you have an opportunity to NOT lock into a rate, until the market changes…saving the cost for a longer lock period.

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This entry was posted on Thursday, March 18th, 2010 at 7:35 am and is filed under Chico Home Loans, Home Buying, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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