The 30 year fixed rate is at 6.5% today before adjustments, if any.
Mortgage/Economy news:
Manufacturing got a little softer in June in the New York region. The Empire State Index worsened from -3.2 to -8.6. New Orders fell, while unfilled orders rose. Manufacturers seem to slow down their production when they have less business. Fewer workers may also be adding to difficulties getting work completed, as this has been one of the sectors hard hit by layoffs.
Soaring oil prices have not been kind to manufacturing companies who depend heavily on gas and oil for both production and shipment of their products. Overnight oil prices came within $0.11 of $140 per barrel. There was a fire at a drilling rig in the North Sea overnight, which will affect production. However, many news stations and websites are reporting that the rise in the dollar is having the greater impact. They may both be contributing a little pressure. But, the reality is that the dollar remains well below its long-term highs, and close to a three-month low against the euro. We feel that speculation is the driving force. Traders are using any excuse they can to buy oil and then everyone else jumps on board for the ride.
Investors are still getting excited at investment firms only losing a few billion dollars. Lehman just reported that their losses last quarter totaled $2.8 billion. Doesn’t sound like good news. Investors’ relief actually comes from the fact that it was around Lehman’s forecast, meaning that the market had already braced for such a number. Goldman Sachs will announce their earnings later today after the markets are closed.
Mortgage hints: FHA is 100% financing if you use down payment assistance programs like Nehemiah and AmeriDream.
Thought of the day:
To love means loving the unlovable. To forgive means pardoning the unpardonable. Faith means believing the unbelievable. Hope means hoping when everything seems hopeless.
Gilbert K. Chesterton
1874-1936, British Author
(Provided by Steve Hale~Georgia Platinum Mortgage)
