Central Coast Lending //
805.543.LOAN (5626)
info@centralcoastlending.com
www.centralcoastlending.com
1319 Marsh Street, Suite 101
San Luis Obispo, CA 93401
601 Morro Bay Blvd., Suite B
Morro Bay, CA 93442
1921 Spring Street
Paso Robles, CA 93446
318 East Branch Street
Arroyo Grande, CA 93420
Central Coast Lending has already earned the reputation for offering the lowest rates. But there's more. When you need us, we are here for you. No exceptions. No excuses. That goes for every client every time. That's the Central Coast Lending way! Central Coast Lending... the mortgage experts.
This week should be interesting, with reports to come detailing June housing starts and home sales. Earnings reports are due from some of USA's biggest companies. And lawmakers continue the debt ceiling debate. Look for the market to continue its volatile trend.
Central Coast Lending's mortgage rates: 30 year fixed 4.250% (4.416% APR), 15 Year Fixed 3.250% (3.560% APR), 5 Year ARM 2.375% (2.541% APR), 30 Year Jumbo 4.250% (4.375% APR).
After yesterday’s positivity, collapse. The better than expected weekly unemployment numbers caused optimist about today’s government June jobs report. However, any hopes of strong gains were dashed, bringing about musings of a “double dip” in the recession.
The government reported that in June just 18,000 jobs were added, which increased the unemployment rate from 9.1% to 9.2%. Stocks tumbled, with the Dow currently down 90.52 to 12,628.97. Although some analysts have counseled optimism (expected that such paltry growth figures would result in an even bigger sell off), there is widespread frustration with the numbers due to the expectations that the economy had made a firm steps toward improvement. Descriptors floating about the media includes: “shocking”, “stunning”, “horrific”, and “paltry.”
As for larger implications to the economy, the question is – does job creation correlate with GDP growth? Loosely, this is the case. Job growth suggests that the economy is healthy and expanding. Weak job growth, then, could be correlated with low spending and low production, and thus a low GDP (Gross Domestic Product – the market value of goods and services produced by a country, which is used to measure strength of economy). On the other hand, the recovery is also influenced by low interest rates, a stronger Japan and lower gas prices. Unemployment is not the only factor to use in judging recovery, although as we have seen today in the market decline, it is viewed as central to the picture.
For our purposes at Central Coast Lending, such selloffs keep interest rates low. As investors flee the market, they invest in bonds, which have an inverse relation to interest rates (bond prices go up, interest rates go down).
For more on the report, see the following links:
Here are Central Coast Lending's mortgage rates: 30 Year Fixed 4.250% (4.416 APR) 15 Year Fixed 3.375% (3.685% APR) 5 Year ARM 2.375% (2.541% APR) 30 Year Jumbo 4.250% (4.374% APR).
Central Coast Lending's mortgage rates are largely unchanged, with the only blip I slight increase in the 15-year fixed.
We have solid economic news today, with weekly jobless claims down 11,000 to beat the forecast of 3,000. The private sector added 157,000 jobs from May to June, significantly ahead of estimates. Chain retail stores reported higher than expected earnings in June.
As of this post, the Dow is up over 100 points to turn in another strong performance. With the exception of the beginning of the week, the market has seen solid gains for a two week period. Tomorrow, look for another jobs report.
Central Coast Lending's mortgage rates remain largely the same, with the exception of a slight drop in the 30 Year jumbo:
30 Year Fixed 4.250% (4.416% APR), 15 Year Fixed 3.375% (3.685% APR), 5 Year ARM 2.375% (2.541% APR), 30 Year Jumbo 4.250% (4.374% APR).
Stocks have continued to gain today, after yesterday's lull and last week's big rally. Currently, the Dow is up 0.35%, but with two and a half hours of trading left to go. Of note, the dollar index (a measure of the dollar's value against world currencies) has risen due to two key factors: 1) China has again increased interest rates to curb inflation on the back of steep grwoth. 2) Moody's downgraded Portugal's long term bond status to junk level, which brought about debt concern (which effected the Euro).
We have employment numbers coming out the next few days, so stay tuned for what should be an eventful few days.
Bank of America will set aside $14 billion to pay investors that bought toxic securities it assembled, including $8.5 billion to settle with some of the biggest holders. Most of the securities were underwritten by subprime lender Countrywide Financial – a company bought by Bank of America in 2008.
The National Association of Realtors’ “Pending Homes Sales Index” recovered in May, bouncing 8.2 percent to 88.8 percent. The shift countered April’s seven-month low. Economists say that the uptick is just a correction after the 11.3 percent decline in April. On a more negative side, the Mortgage Bankers Association reported a decline of 3 percent in applications for loans to buy homes.
The market continues its three-day rally with optimism over the Greek austerity measures an important reason for the optimism.
Central Coast Lending's Rates fo Wednesday, June 29: 30 Year Fixed 4.250% (4.416 APR) 15 Year Fixed 3.375% (3.685% APR) 5 Year ARM 2.375% (2.541% APR) 30 Year Jumbo 4.250% (4.374% APR).
