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Real Estate Economic Forecast

 Today's report showed 175,000 new jobs in the month of May, and the unemployment rate moved up to 7.6%.  That's kind of a good news bad news thing, but it does indicate that more unemployed folks are actually starting to look for work again.

The report hasn't helped the bond market at all, as we've seen stocks go higher today after a loss yesterday, which pushed rates down.  We were hoping to see mortgage rates fall back just a bit more based on earlier expectations for the jobs report.  But that was not the case.  So rates shown below are essentially the same as last Friday. 

The housing market continues to do well with another uptick in building.  A higher demand for lumber, plywood, and associated building materials will help our local economy even if the building doesn't happen here.  Of course that also adds jobs in transportation and all services related to our wood products industry.

Next week retail Sales will measure the total receipts of retail stores that sell merchandise and related services to consumers. Consumer spending accounts for more than two-thirds of the economy, so if you know how consumers are spending their hard earned cash, you have a decent indicator on where the economy is headed.  So, we'll be watching this report closely, as we always do.  It's bound to move the markets one way or another.

The following rates are based on 30 day locks with no discount points and credit scores of 740 or better, as of this morning.  They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised.  Certainly there are other specialized programs available, depending on the qualifications of the buyer.  The 30 Yr Fixed Non-Owner rate is based on 25% down payment.  This is where the best rates come in for investors


Rate
APR
30 year fixed conforming =
4.000%
4.083
15 year =
3.250%
3.341%
3/1 ARM =
3.125%
3.194%
FHA/VA 30 year fixed =
3.750%
4.717%
30 Yr Fixed Non-Owner =
4.500%
4.628%
Prime rate is currently =
3.250%

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