After a few weeks of unprecedented volatility in the financial markets, with wild swings in mortgage interest rates and multiple days of multiple intra-day rate changes, the mortgage workplace is taking a deep breath.

The good news:  Long term mortgage rates continue to hold at low levels historically.  And if you are working with a true mortgage professional, it is possible to take advantage of the swings in the rates and lock loans at historically record low levels.  There have been 2 windows of about 36 hrs in the past 60 days during which my partner and I locked 15 or more 30 Yr Fixed loans at below 5.500% at no points.

The "bad" news:  There is still much uncertainty in the pricing of the new, so-called "jumbo conforming" loans - those that are above the old conforming loan limit of $417,000 and able to be funded by Fannie Mae and Freddie Mac.  Lenders are working hard to implement the higher loan limits.  So far the only lender I am aware of that has these loans on their rate sheet is IndyMac.  And the pricing isn't that great.  There is still approx. .750% spread between the jumbo conforming and the "regular" conforming.

Also, short term loan rates are all over the map, with most lenders pricing them well above long term rates.  This is an odd anomaly.  I expected short term rates (3, 5, 7, 10 Yr Fixed ARMS) to move with their indexes - LIBOR, MTA, COFI - but the rates jumped withing the past week.  Hopefully they will come down soon.  Probably when confidence returns to the mortgage-backed securities markets.  How long will that be?  Good question.

Real Estate and the Mortgage / Credit Crisis continue to be a huge drain on our economy, our businesses, our communities, and our own financial well-being.  Hunker down with a committed professional and figure out ways to take advantage of the opportunities that this market presents.

Opportunities are there for those with experience, knowledge, and the will to succeed.