Market Update (2/4/2010)

Rates are still holding steady ahead of tomorrow’s Jobs Report. Current expectations are for the Jobs Report to show 15,000 jobs created in January and for the unemployment rate to remain at 10%. Our strategy right now for all new transactions is to lock in the interest rate ahead of this report. Not that we necessarily think the report is going to be better than expected, but we know that rates have a lot more room to go up than they do to go down. In other words, we are going to see rates of 5.5% before we will ever see the rate at 4.5% again. The risk of rising rates is not worth the reward.