Our Country's own credit! Matt Grant gives some chatter!

Red Phoenix Freaks!!!!! Hope everyone is fantastical and making it great! Friend of Red Phoenix and the blog, Mortgage Expert Matt Grant talks about the forecast for rates, the Country's credit rating and what this week could bring! If you need me, I'm always around...

john@redphoenixco.com

Greetings-

Mortgage Market Commentary:

Mortgage investors will have very little to chew-on with respect to economic news this week. The majority of mortgage market participants have largely priced-in expectations for soft housing sector numbers and continued signs of weakness from the labor sector. The gridlock in Washington over reaching a deal to cut the deficit and raise the $14.3 trillion debt ceiling has (so far) done little to reduce the appeal of dollar-denominated assets like Treasury debt obligations and mortgage-backed securities. There is a growing view that while a credit default by the United States government would certainty put a major “ding” in the credit worthiness of Treasuries (and by extension their cousins mortgage-backed securities), it would devastate stocks and other risky investments even more, causing both domestic and foreign investors to scramble for the relative safe haven of Treasuries and mortgage-backed securities. Though such an outcome is certainly possible – at this juncture it is still not very probable. As if the debt-ceiling squabble wasn’t distracting enough -- a significant number of companies will be publicizing their second-quarter financial results (earnings reports) this week. If the majority of these businesses show stronger-than-anticipated earnings – and positive forward looking growth projections -- expect the stock markets to rally at the expense of fractionally higher mortgage interest rates. On the other hand, if the majority of these earnings reports fall short of analysts’ projections and/or earnings guidance for the coming quarter is weak – the flow of funds out of the stock market and into safer asset classes like Treasury debt obligations and mortgage-backed securities will tend to be supportive of steady to perhaps fractionally lower mortgage rates. There are a lot of cross-winds buffeting the mortgage market right now – so I suggest you fasten your seatbelts -- the coming five business days have the potential to be some of the most volatile we have experienced in quite a while.

Current Interest Rates:
· 30 Year Fixed 4.490%

· 30 Year Fixed (FHA) 4.250%

· 15 Year Fixed 3.750%

· 5 Year ARM 3.000%

· 7 Year ARM 3.375%

· Call or Email for JUMBO rates

*** The interest rates posted are approximate rates. Interest rates could be higher or lower depending on the loan amount, loan-to-value, credit score, debt ratio, etc.

As always, have a great week and should I be of assistance to you or your clients, don’t hesitate to email or call direct.

Matt Grant, MMS
NMLS #324106
Executive Vice President
Rubicon Mortgage Advisors, LLC
7101 York Ave S Suite 385, Edina, MN 55435
P (952) 921-3337 / F (952) 230-7811 / C (763) 370-0418
www.rubiconmortgageadvisors.com