Show Me The Money

As we have previously discussed the current unemployment rate and poor GDP figures hide the enormous gains of the high net worth and high earners. Cap Gemini has all of the details.

Most of America may be treading water, but the High Net Worth Individuals are getting their piece of the pie.

38.

39.

40.

Mortgage Rates Rise Across the Board

Word of the Week:

139.

hesitates3rd person singular present of hes�i�tate (Verb)

1. Pause before saying or doing something, esp. through uncertainty.

2. Be reluctant to do something.  More �

Merriam-Webster

140.

141.

Seems a lot of conforming mortgage folks missed the low 4% rates and never locked. He who hesitates loses. The price of borrowed mortgage money has risen about .50% in the last few weeks. We have seen increases especially on fixed jumbo loan products and fixed conforming government backed(taxpayer). This is pressuring home shoppers especially. We have heard from a lot of realtors that the recent rapid rate increases has resulted in clients waiting or being forced to downgrade or offer less on the property. It really is about the payment for all but the top 1-2% of earners. 

142.

For a client borrowing a cool million on a jumbo mortgage, a .50% rate move is not insignificant. From 5% on a 30Y Fixed Jumbo Loan in late November to the first week of the new decade at 5.50% for a very well qualified borrower, moves the payment from $5368 to $5677. Long run that is over 100k in additional interest cost. Higher or lower from here? Biased higher. Nothing more concrete as Mr Jumbo Mortgage's crystal ball is in for warranty repair in a small Turkish village. Great Charts Below:

143.