Weekly Mortgage Update - October 22nd
Let's Recap:
The 30-Year Fixed Rate Mortgage averaged 6.40%, having remained the same since last week.
The 15-Year Fixed Rate Mortgage averaged 6.08%, up from 6.06% just last week.
The 1-Year Adjustable Rate Mortgage averaged 5.76%, up from 5.73% just last week.
Fannie Mae 30 Year Fixed (60) Sixty Day Average is at 6.19%.
Fannie Mae 30 Year Fixed (30) Thirty Day Average is at 6.16%.
Long-term mortgage rates held steady in light of mixed economic reports. As you can see however, short-term rates have rallied downward as the bond market has improved through increased demand. We can expect yet lower interest rates today but we'll be monitoring the market closely as earnings and credit reports will continue to influence the market.
Mortgage Rates Report:
Be sure to visit our new section titled Daily Mortgage Rate Update for a view of current interest rates trends. Don't play the guessing game and don't let yourself be seduced by low-ball offers. Instead, make a financial decision based on guided, real-time market research!
Mortgage Rates Report - October 19, 2007
Mortgage Rates Report - October 18, 2007
Mortgage Rates Report - October 17, 2007
The Fed Funds Rate:
The next scheduled meeting is October 31st at which point we expect the Fed to hold the Fed Funds Rate steady at 4.75%.
The Fed Funds Rate was cut the first time around in an effort to loosen the credit markets and help economic expansion. Amidst a somewhat improved credit market, it does not appear the Fed will make a move to cut the Fed Funds Rate at this time though there is still debate that they need to make another 25 to 50 (.25% - .5%) basis point cut. For those of you watching CNBC I'm sure you hear Jim Cramer yelling at the Fed telling them TO CUT RATES!!!
The Week Ahead:
One very important point you should be aware of in the case that you missed it is that on Thursday of last week (October 18th)...
Housing News - the Office of Federal Housing Enterprise Oversight (OFHEO) announced today that the conforming loan limit WILL NOT be reduced for 2008. The current conforming loan limit remains at $417,000.
Upcoming on the week ahead we expect for earnings and credit concerns to influence the credit market. However, if you checked in the last couple of days, particularly Thursday and Friday of last week, you've noticed that bonds have been opening higher than their prior days close which makes it a good day for interest rates! This means conforming (below $417,000), Full Doc, 30 Year Fixed Rate Mortgage may very well price below 6%! But I'd check back and check back often because rates can change in an instant!
Contact Me for a personal rate quote!
For a view of this week's Economic Calendar, please visit bloomberg.com or visit Ana Connell's version of the Week Ahead at her blog: www.burbankmarketreport.com
Recommendation:
- Cautiously float interest rates. But call your Mortgage Advisor daily during breakfast and just before lunch! The bond market has moved upwards in the last few days which means interest rates are down. They should have access to real-time bond quotes to determine whether bond prices have hit the ceiling and are starting to come down (that's what you don't want to happen).
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