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Mortgage Market Update - 5/14/08

If you are watching the bond market lately...then you've been holding your breath! The stock market is is up again today on news from Consumer Prices climbing less than expected and Freddie Mac's (2nd largest mortgage lender) posted a smaller than expected loss. Freddie Mac's stock price was up and so was Fannie Mae's as investors are hoping this mortgage meltdown is coming to an end.

There's rumor out that Bernanke may raise the Fed's benchmark Fed's Fund rate by a .25% to 2.25% on OCt 29th...So if you are looking to lock in an interest rate, Waiting for lower rates may not happen. Pick a target rate and lock it in.

Good Luck,

Posted by Sherry Connor on 05/14/2008 03:32 PM

Comments (2)

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2 Comments on Mortgage Market Update - 5/14/08

MAY

2008

i agreed with everything up until you mentioned Bernanke. i have been puzzled in the past by the lack of linkage between the Fed Funds Rate and the 30 year mortgage rates. Maybe it will happen as he increases rates, but it did not happen on the way down.
JimG

Jim - Thanks for your comments...maybe I should have made my comment clearer. Some people are thinking that mortgage rates are going to get lower in the fall, due to the election year. I do not think that will be the case.

We are in turbulent times...so nothing is really making sense. But the recent rate cut is off set by banks supply and demand. Fewer lenders to carry load, lesser competition so NO real need to lower the mortgage rates to consumers. Sad huh?

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