The Jimmy Rex Team

Chris Jones explains how a huge company like GE can have a significant impact on the stock market and how that affects the mortgage market:

General Electric, a Dow component, submitted earnings this morning and they are HORRIBLE. GE is sort of like the gold standard for the market; they never miss targets, they always manage earnings, and then THIS, and the stock markets are getting hammered as a result. Our pattern continues to hold - bonds fall early in the week and rise later. Yesterday we did get some negative movement and mortgage rates rose slightly, but it looks like that’s all coming back this morning. Nothing earth-shattering, but we’ll have 5.75% par on the 30-year today for good credit borrowers with at least 5% equity and a job.

It seems the mortgage interest rate has bottomed out, in my opinion. We’ve been following this closely for some time, and while it’s not a guarantee, rates may not get much lower. Let me explain. Most people would agree that the economic situation we are facing right now is pretty well known. Sure, another shoe may drop, but everyone is aware that the country is in a downward slope. Rates have climbed slightly since the worst of the slump. They seem to be holding steady and my guess would be they will go up shortly. People are going to make adjustments that put stability back into the market and rates will go back up. Now is the time to take advantage.