Rate Watch update

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Happy Friday April 16, 2010

Housing Starts for March rose to annual rate of 626,000, higher than expected.    Housing starts are up 20% from one year ago, making this a very strong report.  As we know builders have been wrong in the past, but considering the licking most builders have taken in the past couple of years, this is extremely encouraging for our economy to see builders this optimistic about future absorption.

In other news, the SEC is filing fraud charges against Goldman Sachs relating to subprime mortgages.  Stocks are reacting negatively on the news, giving mortgage bonds a lift and slight improvement in rates this morning as a result.   The 30 year fixed conforming inching back down near 5.0%.  We don’t expect this break to last more than a day, so we’re advising anyone in position to lock rate to advantage of the temporary improvement in rates.

Have an awesome weekend.  Let me know how I can help you or someone you know with any real estate financing.

Mike