Week of: Monday, January 12, 2009

Present Market Conditions
"Interest rates for 30-year fixed-rate mortgages (FRM) fell for the tenth week to a fourth consecutive record low due in part to the Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae." stated Frank Nothaft, chief economist for Freddie Mac. "Since the end of October 2008, 30-year FRM rates have declined by almost 1-1/2 percentage points, or payment savings of about $184 a month for a $200,000 loan - an additional $11 dollars from last week."

Expectations
There are no economic reports scheduled to kick off this week, but investors will likely be anxious ahead of the Federal Reserve's beige book, its assessment of the economy by region. The report, which will be released Wednesday, provides details about the strengths and weaknesses in each part of the country. Other reports due this week that may have an impact on rates are the Producer Price Index (PPI), the Consumer Price Index (CPI), and Industrial Production.

Guidance
With housing prices becoming more affordable and rates becoming more favorable now is the best time to meet with your Mortgage Planner and/or Real Estate professional to discuss a mortgage and investment solution that best meets your financial and personal goals.