Mortgage Market Guide as of Tuesday, November 20, 2007 -- Mortgage Rate Increase

By
Mortgage and Lending with FAMILY HOME LOANS

LOCK 'EM IF YOU GOT 'EM!

Welcome to our roller coaster ride!  Yesterday's update ended with a "floating" stance because bonds closed out the day at +25 points....so, of course, we thought rates would get better.  Right out the gate this morning, bonds opened up at roughly -22 basis points so they woke up on the wrong side of the bed.  Throughout the day, they deteriorated even more and closed out the day at -34.  Although none of our lenders issued a rate increase, we do expect the increase to hit tomorrow.  So if you have overnight protection..........lock 'em if you got 'em!

Why all the commotion?  The Fed 'hinted' in their meeting minutes that they would cut rates again and, as history has proven, mortgage bonds react negatively.  So monies pulled out of bonds and filtered into stocks.  So we'll see what tomorrow brings.

As of the close the day, we are offering 30-year fixed mortgages at 6.50%. 

On a warmer note.......can you smell the turkey already?!?!?/ :) 

Make it a GREAT night!

Santos

Comments (2)

John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana
Happy Thanksgiving Santos.  The interest rates historically are still low.  We got spoiled by the last couple of years.
Nov 20, 2007 09:26 AM
Santos Sanchez
FAMILY HOME LOANS - Clarkston, MI

Hi John!

Thanks you for your comment...........you're right.  Rates are still INCREDIBLY low.  Roller coaster ride again today.....mortgage bonds rebounded and are back up +25 basis points.  I have check out the news to see what caused this!

You have an awesome Thanksgiving, my friend.

Santos

Nov 21, 2007 01:44 AM