Good News From Bad

By
Mortgage and Lending with BWC Mortgage Services, Monterey, CA

September 7th, 2007 10:48 AM

Good News From Bad

Continuing on my previous entry about reacting to headlines in the news, one thing should always be remembered: Generally bad news in the stock market and other issues, such as today's downward trending employment numbers, will actually help improve mortgage interest rates.

Not only is there a feeling that the Fed will indeed cut rates later this month, it could even come earlier (than the next scheduled Fed meeting on 9/18), and it could be a deeper cut than the traditional .25 movement.

What we will also need is something to ease the interest rates on jumbo loans (amounts above $417,000). This combination will help us create more sensible mortgage programs as existing loans begin to recast to higher levels.

As for now, stay tuned, and stay informed...

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