Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – March 25, 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 Nevada Friday, March 26, 2010. Scott is a 3rd-Term Governing Board Member of Freddie Mac.  You’ll have an opportunity to inquire into the 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 less timely and more difficult, these days.   REGISTER AT THE CHICO OR PARADISE BOARD OFFICES.  $10 includes appetizers. $15.00 AT THE DOOR!

Appetizers Served: Artichoke Dip w/Crostini and Sierra Nevada/Chico State Farm trio of sausages with pale ale sauerkraut and SNBC’s trio of award-winning mustards, to be served to nice people, at this event!!!!!

Rates Skyrocket!

Well…Yesterday…You know what…hit the fan!  We were busy locking…all morning long…before rates SKYROCKETED!  We lost 88 basis points, throughout the day, however, managed to lock loans when we had only lost 28.  That’s about 0.5% Point Savings on each loan we locked!

What Rates Skyrocketed!

What have I been saying?  When the Fed runs out of their $1.25 Trillion Government Sponsored Mortgage-Backed Security (MBS) Purchase Program…what’s going to happen?  Higher Rates!  Well, the market woke up yesterday, realizing that there’s only one week left in March…not to mention that the Treasury Auctions have not fared too well, this week.  Without the government purchasing MBS to keep rates low, where do you think they’ll go?  Also…there is another auction of $32 Billion of 7-Year Treasuries…if that doesn’t fare well…expect even higher rates!

Initial Jobless Claims

They crept in at a weekly claim of 442,000 while the market expected 450,000.  Be prepared for Friday’s Unemployment figures!  They’ll probably come in pretty strongly, due to better weather around the country, and hiring people for the government census.

Greece VI, (I Believe)

Germany has agreed to help bail out Greece.  This is giving some security to the European Union, and helping boost Stocks in the U.S.

Get Used To Seeing This Picture For Quite Some Time

Locking Advice

Lock, like you’ve never locked before.  Protect your clients and yourselves.  I don’t thing the 7-Year Treasury Auction will fare well, as the others did not and the longer the term, the harder to gain a return, when you factor in inflation.  All signs point to locking!

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This entry was posted on Thursday, March 25th, 2010 at 6:37 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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