DATE

Best Mortgage Rate Information

5/16/08

1:25 pm. So the Jumbo Mortgage rates have declined slightly, which is good news for many people stuck in High loan rates and high mortgage debts. The rest of the mortgage data has been mixed. Over the past month there was a dip but then rates have steadily climb upwards. Maybe the increase in gas prices will hold rates in check. Right now the Bond seems to be bouncing around but ending the day even so rates will probably steadily and slowly creep up until data indicates that the economy is still weak and the Fed will be pushed to reduce rates again. It also seems that most are just waiting to see if the foreclosure mess has past or is the worst yet to come.

4/30/08

11:05 pm. A FEDERAL RESERVE UPDATE - The Federal Reserve acted today to try and help the slumping economy. They reduced the lending rate by .25% down to 2.0%. Great NEWS! Well maybe fair news. The markets are concerned that the Fed is done acting to help the economy. They may be able to squeeze another .25 to .50 over the next 6 months off of the rate but the real issue is the lending institutions. The Fed has to help encourage banks to lend this cheap money. Until that happens, I would not expect rates to drop dramatically. The good news! Adjustable rate mortgages will probably not be jumping up (depending on what they base the rate off of... example - LIBOR, 10 yr Note, ect.). Also. overall fixed rates are still low... but jumpy.

4/23/08

11:36 pm. Mixed market of data this week. Some major blue chips are reporting profits up while others are feeling the pain of the pump. Many cost are increasing for consumers so spending has slowed. The markets moved slightly up today and rates inched down. This seems to be the stage for awhile. Mixed data = rates jumped all around. The question is, are we in a recession, are we coming out of a recession, or are we going into one? No one is sure. So mortgage rates will be jumpy. Negotiate if you have great credit.

4/20/08

3:32 pm. Well the economic down turn looks like it may be with us for awhile. The investors have been turning the markets up and down. These wild losses and gains has reflected in the bond market. As the Bond prices increase their yield decreases. As the yield decreases...so tends mortgages rates. BUT..the yield has been moving up and the markets swinging wildly have started mortgage rates moving higher. Not to mention the giant question mark about forclosures and their real effect on the lending institutions/economy. Look for rates to keep moving upwards as banks hunt for the top tier borrowers and limit the money they will lend. If you are looking now is the time to start getting your credit in order. In the future, it appears, that mortgages are really going to weigh heavily on credit scores and credit history. So as you may wait for rates to drop and for the economy to recover, throw in, search for home price reductions and deals, spend your time correcting /improving your credit score and bunker down as the markets jump!

4/8/08

8:12 pm. Fannie Mae one of the largest buyers of mortgages in the market recently announced it will increase fees it charges to borrowers. This could have ripple affect across the entire industry and of course the increase of fees will either means mortgage rates go higher or that borrowers have to pay higher out-of-pocket cost for a home loan. On the mortgage rate front - Rates have been holding steady even though the Fed has lowered the prime lending rate. The issue is that banks and lending institutions are just afraid to take a chance and lend to borrowers. They are searching out the best credited consumers and offering them better programs and rates while just offering the basics and higher rates to those borrowers with challenged credit. If the Fed wants to stimulate lending then they will have to force the hand of lending institutions. As far as massive rate changes it seems that are just jumping up and down in sync with the markets.

3/20/08

3:16 am. The Federal Reserve jumped back into the markets with a.75% rate reduction. This was an attempt to stave off the dropping markets and the reducing value of the dollar. Also investors wanted reassurances that the FED would step up as needed. the Fed did but hinted that no near future rate reductions will occur. So where does that leave mortgage rates? Well the given is that foreclosures are up, home values are dropping, lending institutions are holding back cash to lend to borrowers. So it does not look like any fast turn around will occur in the housing market. Plus, Banks, on all these fears, are just not lending. The FED is looking to reduce FANNIE & FREDDIE MAC's lending policy's in order to help jump start the housing market. This may help but it also begs the question...Isn't the easing of lending restrictions what got the mortgage industry in this issue in the first place? So...predictions are that rates will hold steady and may drop slightly. History shows that the main rate reduction will occur within the next 3-5 months as the markets digest all the numbers and the Fed's actions.

2/3/08

11:28 pm. So the news over the last month was that foreclosures are up, the Fed has reduced rates (and hints at more reductions) and the economy is in a recession. OR may be about to enter a recession. Well all that may be true but the devaluation of the dollar and the increase in oil prices have put pressure on fixed rate mortgages. Lets face facts. The markets are just scared of a recession and lenders are worried too, so no matter how low the Fed can go the rates will probably hold steady if not they will inch upwards. As with people, when fears of economic slow down arise, the banks to want to protect their money. So even though they can borrow at low rates they still will lend at higher rates. If you are looking to lock in maybe consider an ARM over a Fixed rate or at least look into it. It has not been a popular move but with fixed rates moving up as the Fed reduces lending rates ARM's rates may be the best bet. Well maybe not the best bet but you should look at them before you lock in.

1/22/08

10:17 pm. It appears the bad news about the economy finally made its way to the Federal Reserve. Politicians are talking about a stimulus package and rebate checks which may be needed inorder for that rate decrease to actually effect mortgage rates. To see where rates will go we should take a step back in order to explain that... The price of gas is at all time highs, the dollar is losing value against foreign currency, the markets are dropping, job cuts are increasing, growth in consumer spending is slowing, if all that is not enough the housing market is in a slump and values are dropping as foreclosures rates rise. Now comes the Fed today to lower rates .75 basis points. Great NEWS! WELL MAYBE NOT? The Fed may have lowered the rates that banks can borrow money at but the banks are not that willing to lend and even more over people are not that willing to borrower. So mortgage rates really will not move much! At this point the Fed could basically not even charge the banks to borrow money and in all likelihood rates will not go down dramatically for the consumer. Lenders are holding on to cash and only lending to the best borrowers. So that surprise Fed move today may be full of sound and fury but without a stimulus package to follow, it may end up signifying nothing.

1/4/08

11:26 am. Gas prices are going up. Well...the price per barrel has hit the 100 plus mark and is jumping above and below the mark as the markets are worried about supply. These spikes in the price per barrel will result in an increase in pump prices within a week. This bad economic news is added to reports that in December employers added way less jobs than expected, did not increase payrolls as expected and under performed on job growth. All this bad economic news will help mortgage rates drop. But the question is will the lowering of rates and housing prices be enough to save the economy. Either way, rates appear to be on a down swing.

12/14/07

8:35 am. Consumers be warned. The markets are very worried about inflation. Even the previous Fed chairman said a recession is 50% likely to occur within the new year. Economic slow down is apparent in the consumers and the manufacturing numbers. The Federal Reserve lower rates .25% at the last meeting and the markets expected it and even wanted a .50% adjustment, but the FED most likely could not do that because of the unstable economy. There are most likely more rate adjustment in the future but they will likely not lower mortgage rates! Rates, most likely, will inch upwards as the Fed reacts to recessionary factors. So even with all the news about rates being lowered expected them to inch up.

11/12/07

3:10 pm. The last update was, "where to begin?" Now it is, Where is it going? Everyday the markets are jumping up and down. They surge high and low and the bond jumps along with them. Oil prices have also been all over the map. Up and down even though supply has been steady and demand has not dramatically increased. SO..what about mortgage rates? They have really stayed unchanged. Even after the Fed reduced rates the lending market is holding steady. It looks like rates will most likely stay stable even though stocks are jumping. The mortgage rates will likely jump up or down after some data begins to flow about the consumer and their spending habits over the holiday season.

11/06/07

8:18 am. Where to begin? Oil prices have been sky rocketing then dropping and up again. The housing resale markets are hitting major slumps. Home values in the west and southwest are slumping and not to mention the whole sub prime/B,C,D, market meltdown. If that was not enough, speculators think that the ripple effect of the sub prime collapse has not even hit the markets yet. Recession? Well.. It will all depend on the consumer over the Holiday season (maybe not all but mostly). If the consumer decides that they have had enough worrying and they start to spend for the holidays the economy is likely to stay stable. If the consumer becomes weary of the economy and holds back this retail season than a recession is most likely ahead. The Federal Reserve did meet at the end of October and reduced rates by a .25% but they hinted no future rate reductions. Clearly the economy needs a few more .25% reductions to help motivate refinancing markets. Lower rates will allow those stuck in high rate A.R.M.S. to lock into fixed rates. Lets hope that the consumer spends (not just on credit cards) and the Fed reduces rates.

10/24/07

12:12 pm. A record low in home sales for the previous month (down by 8%) has added to the real estate worries. Prices have mostly dropped on homes for sale. The drop has been largely in the west and south west while the northeast remains strong. The Fed is looking at changing guidelines for adjustable rates and also trying to prevent adjustable rates from moving upwards. It seems the credit crunch reached it max over the past two months and the markets are still worried but the worst has passed. Still being hit hard are the Jumbo loan market and the alt. credit market. These issues will still be a problem for likely a year before the secondary market starts to feel more secure and begins to lend again.

9/07/07

10:47 am. The employment numbers for August are in and for the first time in 4 years there was negative job growth. Four thousand jobs where loss over the last month and a revised report  or June and July shows 81,000 less new jobs than was previously reported. This data is clear that the economy is slowing and contracting. Many speculators are using this data to virtually guarantee that the Fed will reduce rates next meeting.

8/24/07

9:58 am. Well the mortgage market is worried about recession and the credit crunch. The markets are starting to work in the idea that the FED may reduce rates at their next meeting. With all the worries, rates still seem to be dropping. Strange huh? Well not really. The main economic factor that has been keeping this economy alive over the last 5 years has been the consumer and home purchasing. The markets think that there is no way the Reserve could continue to raise rates or leave them alone as the market slump. Expect (or Atleast hope) a rate reduction occurs. Either way the markets are already working them into the rates and those that are still in A.R.M.S may consider locking in soon.

8/18/07

8:54 am. So the Federal Reserve jumped into the markets after months of up and downs. They did a 50 basis point lowering to overnight Fed funds rate. What does that mean? Well I am going to say it..Nothing for the consumer. This rate adjustment helps banks and lenders, it is the rate they pay the Federal Reserve for borrowing money. In theory it should help with credit rates to consumers but in all likelihood the banks will not reflect the lower benchmark on their consumer lending side. What the markets need is a 50 basis point reduction in the Fed benchmark rates. This will directly lower interest rates and most likely slow the slumping housing and credit crunch. A 50 to full point reduction may be the only way the Fed can hold off a recession. Lets keep our fingers crossed this week and see if the Feds help the economy out.

8/10/07

8:54 am. The subprime market worries have spilled over into the over markets. The stock markets are going up and down in dramatic motions as they try to comprehend the effects of the defaulting subprime mortgage market. It is a fairly good conclusion that the sub prime market will disappear for several years but the questions is how many homes will be foreclosed? The Federal Reserve is not helping things out with their statements about inflation concerns. These statements appear to only worry the markets. The past few weeks has seen a slight drop in rates but over all the Fed needs to lower the bias or maybe even cut rates by a .25% to .50% to help motivate the economy. If this does not happen and if you are in an adjustable rate mortgage...well.. lock-em in if you got-em because there will be a bumpy ride ahead.

Previous Best Mortgage Rate Info.

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