FRIDAY FINANCIALS

Posted by DB Wilson on Friday, January 27th, 2012 at 8:14pm.

Rates have improved slightly as investors pulled money out of the stock market and put it either into the safety of bonds or went back to the sidelines.  The bellwether 10 year bond dropped back into the 1.92% range, down from Wednesday's close of 2%.  This should leave mortgage rates just under 4%.
 
Two items of note:
 
Bloomberg is reporting that the US GDP - the measuring stick for the strength of our economy - came in at an annualize rate of 2.8% for the fourth quarter.  That's better than the 1.8% of the 3rd quarter but below analyst's projections of 3%.  Even though it's below expectations, much of the report is good.  “We’re recovering, but it’s a very long, slow, drawn-out process,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, who correctly forecast the fourth-quarter figure. “Relatively speaking, the U.S. is one of the few areas where we would expect to see growth in 2012 better than 2011.”

Secondly, the Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 75 in January, the highest level in almost a year, from 69.9 at the end of December.  The increase in consumer sentiment bodes well for the immediate future of the economy.

All-in-all, good news for the immediate future of interest rates.
 
Have a good if snowy weekend.

 
  
Jed Marquis
 
Mortgage Consultant
NMLSR ID 274457
 
Colorado Capital Mortgage Co, LLC | 2425 Canyon Blvd Ste 110 | Boulder,  CO  80302
MAC C7286-010
Phone 720.833.7964| Cell 303.885.1532| Fax 855.387.7240
 
An Affiliate Of Wells Fargo Home Mortgage
 
Jed.Marquis@CoCapMtg.com
www.CallJedMarquis.com

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