The value of the dollar dropped since Bernanke made the surprisingly deep cut to short-term interest rates last Tuesday. A weaker dollar means more inflation and more inflation, or even the threat of more inflation, leads to progressively higher mortgage interest rates. All eyes will be focused on next Friday's 8:30 a.m. release of one of mortgage investors favorite measures of inflation pressures at the consumer level - the core personal consumption expenditure index component of the August Income and Spending report. If, as expected, the core PCE index meets anticipation, mortgage rates could drop slightly. On the other hand, if this measure of core consumer inflation posts a higher than expected gain, be prepared for higher rates during the first week of October.
And that's what's Happening in the Market with Patrick
As reported by Patrick Cicala of Countrywide Home Loans - Monday, September 24, 2007
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Current Rates Conforming 30 Yr Fixed @ 6.375% Conforming 5/1 ARM @ 6% Jumbo 30 Yr Fixed @ 6.875% (>600k) Jumbo 3/1 ARM @ 6.5% (>600k) For qualified Full Doc Purchase Applicants only, based on 30 day pricing...can close in 1 day! |
Prepared by:
Barbara Mulcahy
RE/MAX Classic Group
908-898-0800
http://www.sellwithmulcahy.com/
BMulcahy@ClassicNJ.com
Serving: Berkeley Heights, Cranford, Mountainside, New Providence, Scotch Plains, Summit, Westfield, Chatham, Long Hill Township, Madison, Basking Ridge, Bedminster, Warren, Watchung, Millburn/Short Hills - all along the Midtown Direct to NYC!
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