The 30 year fixed rate is at 6.375% today before adjustments, if any.
Mortgage/Economy news:
There is no economic data today, so the stock market is acting on other on financial news, and the bond market is reacting to the stock market.
FedEx announced that their earnings were likely to fall this year because of oil prices as well as less demand. Competition and slower business activity have both hurt operations. It is not so much this individual company’s performance that has traders worried, but it is was it implies about the rest of the economy. A lot of businesses rely on FedEx, so if FedEx is not making enough money, then presumably many of the businesses who use them are not making enough money either.
The other big company of the day was regional bank Fifth Third Bancorp, who is only expecting 1 to 5 cents earnings per share. Analysts were betting on 40 cents. Not only that, the company is cutting its dividend and will attempt to raise $2 billion in capital. Problems with any financial sector companies seem to be what scares the markets the most right now.
President Bush gave a televised speech this morning urging congress to allow offshore drilling. He essentially called out the “Democratic-run congress” as he put it, telling them that they need to act before they adjourn for the summer on July 4. Oil prices have been hovering around $134 per barrel today. It is long overdue, but the Fed, the government, and even OPEC may finally be working on getting oil and gas prices back down to more “reasonable” levels.
Mortgage hints: With a 700 score, some down payment money and two years of self-employment (1099 is also self employed) we can put your customer into the home of their dreams with a SIVA (Stated Income/Verified Assets) program. Ask for details.
Thought of the day:
If I wanted to succeed in all things, I would look around me for those who are succeeding, and do as they have done.
Joseph Marshall Wade
(Provided by Steve Hale~Georgia Platinum Mortgage)
