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...