This week the upward push on rates continued because the economy continues to do better:

1. Initial Jobless Claims and Housing starts were both better than expected;
2. The Philly Fed Manufacturing Index was almost twice as strong as expected;
3. Retail Sales ex-auto was twice as good as expected;
4. And both the producer price index and the consumer price index came in higher than expected.

With economic growth comes the fear that inflation will return. For now - deflation fears have left the building, and the Fed appears to be on track with their goal of stimulating inflation. This drives rates up.

Also, the Dow reached levels not seen since Lehman collapsed over two years ago and this has caused outflows from the bond market (mortgages are bonds) to the stock market. This also forces rates up in order to entice investors keep buying bonds instead of stocks.

So, while it took six months for rates to drift down to their historic lows in October, it has only taken six weeks to see those rates disappear.

This week 30 yr. fixed rates ranged between 4.5% & 4.875% depending on program, credit and points. Have a great weekend!

The holidays are quickly approaching, so many are busy with the hustle and bustle of the season. Despite the rumors floating around, this is a great time to buy. Interest rates are no longer in the low 4%, but are in the mid 4% heading towards 5% in the near future. Rates will most likely not be this low again in your lifetime, and the lower the interest rate, the further your money goes in terms of buying a home.

For those whe are serious about buying or selling a home, I am offering additional incentive for you to buy now. For all prospects who mention this letter, I will pay $1000 to go towards closing costs. Are you ready to look for a home now? Give me a call, and I will help you get started. Not quite ready yet? This offer will be good when your are.

For those who are not looking right now, keep in mind that I do give cash referral fees. Call me for more information today.

Happy holidays!

Mindy Farris
469.569.2968
mkfarris@gmail.com
www.mindyfarris.com

Loan Rates Heading for the 5% Range

The artificially low rates of October ARE a thing of the past and WILL NOT return. Did you miss the low 4% boat? You can still get on the mid 4% boat, but you'd better hurry. The 5 & 6% boats will be leaving later in 2011. Current rate is 4.46%, up from last week's 4.4%. This really is a good time to buy!