Buyer’s Remorse, VCRs, and low rates (still)…

July 7, 2010

Good morning!

Actress Quote of the Day: “People often become actresses because of something they dislike about themselves; they pretend they are someone else.” – Bette Davis.

Interest Rate Update: Over an 18 month period Fed Chief Ben Bernanke spent billions buying mortgage-backed securities to keep interest rates low. When he announced he would stop buying them at the end of April we all thought rates would go way up. But then a funny thing happened: investors from all over the world took over buying these securities and rates have not only stayed low, they have hit bottoms never before seen. If I was Bernanke I would look for those receipts to see if he can return some of those purchases! In any event, rates for a 30yr fixed remain below 5% and ARMS still about a point lower. Don’t forget to let your family, friends, and coworkers know that I will do any loan for free if it is over 240k. (side note: Bernanke is not the only one with buyer’s remorse. In 2000 I was so convinced DVD players wouldn’t catch on that I bought 4 VCRs for my house. I still have them hooked up even though they haven’t been used in years. My wife says I am in denial, but I know one day they will come back into fashion.

Wuss’up This Week A whole lot of nothing. Traditionally the July 4th week is slow with economic data that can affect interest rates. The most important report this week is Thursday’s Weekly Jobless Claims. Besides that, what will affect rates this week? As a general rule of thumb: when the stock market is getting hammered, rates usually drop. This is always a mixed blessing for me because I make decent money on refinancing people while watching the inheritance from my grandmother shrink.

Actress Quote of the Day 2: “My sister wanted to be an actress. She never made it, but she does live in a trailer…so she got halfway. She’s an actress, she just never got called to the set.” – comedian Mitch Hedberg.

Timeout for Trivia: Congrats to all who correctly guessed Gary Busey as the answer to last week’s trivia. Want to be entered into a drawing to win cool stuff? Simply email me the answer to this week’s Who Am I? question. Good luck: “A couple days ago I turned 60 but I’m still working for a living. In the early days my band toured with many famous musical acts like Elvis Costello, Thin Lizzy, and Garth Brooks. Besides music I’ve dabbled in acting. You might have seen my cameo in Back to the Future as a judge in the Hill Valley High School band audition. I wrote a couple songs for that movie’s soundtrack too. I may have seen my heyday come and go with the 80s but I am still active. People tell me my heart is still beating. And from what I’ve seen I believe ’em.”

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