There's an old saying that states, "May you live in interesting times....." Well, we do!!! Even more, some of us are trying to conduct business in interesting times. And that can be a bit more stressful.

So what happened to us over the past few days? On Sunday the Fed made another mid session rate drop, .25%. It's pretty uncommon for them to make a mid session adjustment to rates and they've done it twice in the past three months. Then today they dropped the Fed Funds rate by another .75% for a combined 1% drop this week. The markets had their usual response... to the perception of uncertainty triggered by a mid session rate drop, the stock market, which loathes uncertainty, dropped dramatically and the flight to stability fed the mortgage backed securities. That, of course, drove rates to the same lows we saw back in January when the Fed made it's last mid session drop. Then, today, when the Fed dropped rates another .75% at their scheduled meeting the stocks rebounded and interest rates moved back up again... just as they did in late January after the last Fed meeting. So? Our rates are lower than they were on Friday, but not as low as they were on Monday. Got that?!!

Okay, so I've already read you the lecture about inflation inducing actions on the part of the Fed. There is no point in repeating it, so at this point, I'm gonna say enjoy it while you've got it. The dark days of rate escalation are ahead of us, but they aren't here yet. The days of sunshine and artificially low rates are here now. To paraphrase another old saying... "Make sales while the sun shines!!!"

 
Posted by Janet Thompson on 03/18/2008 05:47 PM   Comments (3)   mortgage rates and trends  
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The Economic Marathon
03/10/2008
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So What's up with our Economy? Why are so many people saying we're in recession while others say were in a slow down? What's the difference? I'm fond of using the analogy of running a marathon to explain the economy. We're all… more
Whew!!! What a way to finish the week!!!
03/07/2008
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What a difference a day makes!! Yesterday we had a deep drop in mortgage backed securities and today we had an equally steep explosion upwards. Maybe this bounce will actually be enough to start us back on that upward trend that means interest rates… more
The Bearer of Bad News… Again!
03/06/2008
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Well it's been a wild few days and we have seen mortgage backed securities take a beating… which means that interest rates have gone up markedly. If the Federal Reserve Board really does drop rates again this month then we may see the mortgage… more
Ride 'em Cowboy!!!!
02/29/2008
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Happy Friday!!! I just want to let you know that it looks like rates are moving downward right now. Maybe even back to the point where they were before the Federal Reserve Board dropped the Fed Funds Rate… or lower? However, get the word out to… more
Mea Culpa
02/27/2008
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First let me start off with a mea culpa: I am sorry that I have been incommunicado of late. I have been wrapped up in my own world of chaos and adventure and have not been in touch with you as regularly as I should have been. So… Mea Culpa! I… more
The ever changing peace of Winter…
02/13/2008
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Did you miss me? I was off visiting friends in Montana for a few days… Yes it was cold. And, yes it was snowing. And yes it was piling up. Much like the bad news is piling up here in Pierce County in the world of real estate. The good new is that… more
Now where did I put that Soap Box.. AH! Here it is!!!
01/22/2008
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Today I feel like I'm standing in front of a tornado screaming "STOP" at the top of lungs… and no one can hear me! If any of you have lived in the land of tornadoes then you know that odd color that the sky often takes on just before… more
Get 'Em While They're HOT!!!!
01/17/2008
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We are not in recession… just an economic slow down. So spoke Ben Bernanke, chairman of the Federal Reserve Board. He indicated that the economy is strong and that it should rebound from the slow down with proper incentives and another drop in the… more
How Low Can You Go?!!!!
01/11/2008
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That old Limbo song may find a whole new application in our economy today. With rates already bouncing around two year lows, the Chairman of the Federal Reserve Board announced yesterday that they will take the Fed Funds rate lower if necessary to… more
 

Janet Thompson

Tacoma, WA

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Jensen Mortgage Services

Address: 10209 Bridgeport Way SW , Suite A1, Tacoma, WA, 98499

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