Mortgage Market Report for Saturday May 17^th, 2008

The University of Michigan's Consumer Sentiment was reported at worse than expectations.  This has been the worst number in 26 years.

Some better than expected news in the Housing market as Housing Starts had modest up-tick in newly constructed homes is welcomed news, but the cost of materials has risen dramatically and may be a further drag on this sector in the months ahead.    

Technically, Mortgage Bonds have powered through a triple layer of resistance at the 25, 50 and 100-day Moving Averages.  Stocks are battling their 200-day MA ceiling, and if they are turned lower, bonds should rally further - we feel this will happen.  And that would give us a run towards the high levels for another refinance opportunity.  Be prepared, as these opportunities are typically brief.

Treasury Secretary Henry Paulson then painted a pretty rosy picture for the economy and credit markets when he spoke on the U.S. credit and housing markets at a business forum, in Washington, D.C. Paulson stated the financial markets are recovering nicely from the recent turmoil and that the economy should rebound later in this year.

Because my business is built on advice and not just price...and given the current market conditions, I am recommending floating and prepare to take advantage of improving home loan rates."

Thank you for listening to www.ContactHerrick.com .  We will have another report for you, your family, your friends and your important business contacts later this week. 

A quote from Joseph Addison

"Man is distinguished from all other creatures by the faculty of laughter."

Roger Herrick

Mortgage Broker

www.ContactHerrick.com