Rates at Exceptionally Low Levels

			Christy Fuentes Mortgage Consultant Capital Mortgage Corporation (405)514-6401 218690 christyfuentesloans@gmail.com

Great Window of Opportunity

You may have heard that home loan rates have improved and are back down to near historic levels. In fact, I've been slammed with emails and phone calls from people just like you who wanted to take advantage of this wonderful situation.

But you need to keep the following in mind...

While some people say good things come to those who wait, others say to strike while the iron is hot. In this case, the "iron is hot" with rates at exceptionally low levels. And while weak economic reports here in the U.S. and the economic crisis in Europe are two of the main reasons rates have improved recently, signs of inflation are beginning to creep into our economy–and that never bodes well for home loan rates. That's why it's more important than ever to act now.

It will only take a minute–give me a quick call so we can look at your situation. It doesn't cost anything to check it out, and the choice of moving forward will be up to you. Don't miss this window of opportunity to save significantly on your monthly budget.

I look forward to hearing from you!

~ Christy

405-514-6401

  

Mortgage Rates Fall

Did you see this article in the Wall Street Journal?
http://online.wsj.com/article/BT-CO-20110113-709245.html

Do you know what your current mortgage rate is?
Maybe it's time for us to review your current mortgage and look at the possibility of refinancing to get a better rate.
Contact me this week so we can set up an appointment and see if there's a way to save you money.

What is the Velocity of Money and How Does it Impact Home Loan Rates?

If you’ve been watching the economic news, you’ve probably noticed that market experts and traders have been keeping a close eye on the Commerce Department’s Personal Spending and Personal Income reports. Obviously, those reports provide insight into the health of our economy, but did you know they also influence home loan rates? That’s right, personal spending can actually influence the interest rates that are available when you purchase or refinance a home.

Here's why. It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent – and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money.

With the job market still very sluggish, consumers aren't spending much money these days, and businesses are still reluctant to spend money to make investments in their business. With the present velocity at low levels, inflation remains subdued and that's good for home loan rates. That's because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will cause inflation – which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen.

While we certainly want to see better economic recovery news in the near future, we have to remember that there's an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, which helps Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result.

Currently, home loan rates are at a historically low level, but that situation won’t last forever. That means now is an ideal time to purchase a home or refinance before the velocity of money – and rates – change. If you or anyone you know would like to learn more about the current economic situation and how to take advantage of historically low home loan rates, then please contact me.

YOU Magazine - November 4

Christy Fuentes Mortgage Consultant Capital Mortgage Corporation Phone: (405)692-2345 Fax: (405)691-3743 christy@capital-mortgage.com License: 218690

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