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Larry Weinstein’s

Weekly Mortgage Newsletter Week of July 31, 2011 Mortgage Market Commentary

Last week held a big surprise for financial markets. The first estimate of the second quarter’s GDP was thought to have only slowed slightly, from 1.9% to about 1.7%. Unfortunately, the US economy appears to have slowed even more than expected to 1.3%. This moved money out of stock markets, and helped nudge rates downward on Friday. This week could be a very interesting week for financial markets. While the larger-than-expected slowdown in the economy would generally pressure mortgage rates lower, whatever Washington does regarding the debt limit could push rates in any direction. Whether a debt limit extension is reached or not, the more important long term question may be what happens in the case of a downgrade to US debt. While there is no way to know for sure, since it has never happened, most experts believe a downgrade would pressure all interest rates upward, including mortgage rates. However, since it is a completely new situation, no one knows for sure how this week will play out.

2011’s Cities That Are The Best Values According to Kiplinger’s Personal Finance magazine, a number of Midwest and Southern cities boast great values. The researchers used each city’s unemployment rate, median household income, cost-of-living index, and other factors to generate the list. The top-10 cities are Omaha, NE, Charlotte, NC, Nashville, TN, Colorado Springs, CO, Knoxville, TN, Lexington, KY, Little Rock, AR, Wichita, KS, Cedar Rapids, IA, and Cincinnati, OH.

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Private Mortgage Banker y NMLSR ID 21242

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20 Day Moving Ave

205 E. 42nd St., 6 th Floor, New York, NY 10017

All first mortgage products are provided by DE Capital Mortgage, LLC. DE Capital Mortgage, LLC may not be available in your area. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. ©2011 DE Capital Mortgage, LLC. All Rights Reserved. NMLSR ID 345546 #564987 3/11-06/11


Weekly Mortgage Newsletter by Larry Weinstein