Rate Watch Update

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Happy Friday April 30, 2010

The Commerce Dept reported today that the initial reading on GDP for 1^st quarter 2010 showed that the economy grew at 3.2%, this was slightly below estimates but the 3^rd straight quarter of positive GDP, so great news, we seem to have turned the corner, albeit slowly.

Inflation readings in the report remained tame, the price index for personal consumption index rose a modest 1.5%, so no worries about Fed making any sudden moves with short term rates any time soon.

The saga in Greece continues, and European officials are working quickly to approve a bailout plan before this spreads throughout Europe.  Concerns about sovereign debt has created a “flight to quality”, where investors lose confidence in European debt instruments and move holdings into US bonds, including mortgage bonds.  So our mortgage rates have benefited this week as a result.

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

Mike