Marc's Mortgage Matter's

I never did well in the corporate world. Any employee knows, when you “take a long time”, you're “slow”. When your boss takes a long time, he's “thorough”. When you “don't do it”, you're “lazy”. When your boss doesn't do it, he's “too busy”. Such a double standard.

Continuing an easing pattern that's been ongoing since about mid-August, mortgage rates trended down a little bit more this week. Accompanied by rising stock and gold prices, it would seem that investor money which has been "on the sidelines" is starting to make its way into the market. The Dow Jones Industrial Average is again within shouting range of 10,000 mark and has risen a full 50% from the year's low, while bond yields continue to be fairly subdued.

Things are starting to improve somewhat in what remains of the private non-conforming mortgage market, also known as Jumbo loans. This past week's 5.99% average for a 30-year jumbo was its first foray below 6% since September 9, 2005. It's worth noting that jumbos have sported a lower average rate in just 49 of the 509 weeks which have elapsed since Y2K !!

While the availability of certain kinds of credit might still make getting a loan difficult, the price of that money has rarely been better. Borrowers have noticed this, too, and with the weeks-long gentle decline in rates has come increasing purchase and refinance activity. The Mortgage Bankers Association noted better than a 13% gain in purchase applications and a 18% gain for refis. Hopefully, those refinances will serve to recast balance sheets for households looking for extra cash to spend and/or to further pay down outstanding obligations.

An 80-year-old man goes for a physical. All of his tests come back with normal results. The doctor says, “Bert, everything looks great. How are you doing mentally and emotionally? Are you at peace with God?”
Bert replies, “God and I are tight. He knows I have poor eyesight, so he's fixed it for when I get up in the middle of the night to go to the bathroom. Poof! The light goes on. When I'm done, poof, the light goes off.”
“Wow, that's incredible,” the doctor says.
A little later in the day, the doctor calls Bert's wife.

“Ethel,” he says, “Bert is doing fine but I had to call you because I'm in awe of his relationship with God. Is it true that he gets up during the night and poof, the light goes on in the bathroom, and when he's done, poof the light goes off?”
“OH MY GAWD!” Ethel exclaims. “He's piddling in the refrigerator again!”