3% mortgage rates will be gone by Friday

dsb-sad-faceThe Dow Jones Industrial Average lost 216 points today, mostly based on the expectation that Friday’s Job’s Report will be…good. You’d think that would be a positive sign for stocks, but not in this market where the Financial Cocaine known as “Fed Stimulus” is still being snorted on a daily basis.

The Federal Reserve will not continue to inject capital into the Financial System if the economy picks up steam. A positive Jobs Report on Friday would be an indicator of just that.  These artificially low interest rates we currently have, which have forced many investors into stocks, will go away when things get better. If that looks like the case on Friday, investors will exit stocks and look for safety in Bonds or even more likely CASH.

It’s my opinion the Jobs Report will be strong, giving the Fed reason to back off the Financial Cocaine sooner rather than later. This will spook the financial markets, especially in the world of Mortgage Bonds, since that is where the majority of the Fed Stimulus is going.

Say bye-bye to 3% fixed-rate mortgages. You have until Thursday to get locked in. If you want professional help or advice about a Mortgage or Refinance in San Diego, call Jon Jertoz at 760.522.2298. Jon is top 1% in the nation two years in a row, a good friend and someone you can trust.

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Categories: Mortgages

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