You’ll probably see a spike at the gas pump soon, if you haven’t already. Russia just signaled it would join OPEC’s limit on production if it agrees to do so in November. And right on signal, stocks Real Estate Investingjumped triple digits this morning with the Dow jumped by 150 points at one stage. While higher oil prices and a stock surge might at first seem a bit counterintuitive, higher oil prices also support the energy industry here at home. When oil falls, layoffs happen and keeps currency out of the economy. The sweet spot for sweet crude appears to fall between $50 and $75 per barrel.

 

Credit markets are closed in observance of Columbus Day which also means your bank and federal offices are closed and you won’t get any mail today. That said, there are still mortgage banking companies who can still lock in your loan or accept a mortgage loan application. Bank-owned mortgage companies however are most likely closed with employees who are working do so voluntarily. We’ve seen financing costs stabilize a bit over the past few weeks and even though the jobs report for September initially caused rates to rise, they pulled back yet again. Interest rates for residential investment properties can be found in the mid to high 2.50% range for a 15 year fixed rate loan.

As we head into the final quarter of the year it appears we’ll be entering a period of stability, at least absent any unexpected events that might rattle the markets. The elections looming next month apparently aren’t affecting Wall Street very much as after each debate credit markets as well as stocks just seem to yawn. That provides some sense of stability which allows real estate investors to better prepare for the future with some very low financing costs for the next several months.