MMC Market Update (Some boring stuff and then the first ever TIP OF THE DAY!)

When reading the financial news this morning, we over here at Midwest Mortgage Capital expected mortgage interest rates to be lower today.  Why?  Because Europe is back in the news and not in a good way.  There are renewed fears that Greece might exit the Eurozone based on the fact that the EU wants Greece to cut costs and Greece just doesn’t want to.  When bad news from Europe comes out, money often moves to the save haven of the US bond market and mortgage interest rates go down.

However, rates are not lower.  Below are a couple of our theories as to why this is true:

• There has to be a point where rates cannot go lower.  Maybe we found that point.
• Recent inflation numbers have been higher.  Today’s Consumer Price Index (CPI) came in at 2.3%.  The Fed wants this number to be at or below 2%.

TIP OF THE DAY: Make sure buyers write the earnest money check from their own checking account.  If it comes from someone else’s checking account, then it is a gift which requires the buyer to share a lot more paperwork with us.

Enjoy the weather this week!