Dow below 11,000 - more bad news for Fannie/Freddie

By
Mortgage and Lending with Wisconsin Home Lending, Inc.

Good afternoon,

I waited until now to post about rates, because this morning was one of the most volatile markets I have seen in years. Fannie and Freddie were down 40%+ this morning again, but have rallied back strongly since. The Dow is still down 200 as I am writing this, and mortgage rates have gotten worse in all of this turmoil.

The 30 year fixed is at 6.000% +/-
The 15 year fixed is at 5.500% +/-
The 5 year ARM is the strongest at 5.375% +/- (interest-only an option too)

While today is not the best for rates, there is an old saying that you never lock rates on Friday and Monday. Lenders hedge themselves ahead of any weekend news, and stock markets are typically strong on "merger Monday's." We are still in an upward trend, and the trend is our friend. Please visit me at www.wihomelend.com or http://wihomelend.activerain.com, or email me at info@wihomelend.com. Thanks for reading, and make it a great weekend.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Wisconsin

Spam prevention
Show All Comments
Rainmaker
1,500,526
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Thanks for the info...it will be very interesting to see how this all shakes out.

Jul 11, 2008 06:46 AM #1
Rainer
4,053
Jeffrey Stoub
Wisconsin Home Lending, Inc. - Waukesha, WI

Certainly.  This is definitely one of the most interesting years we've ever seen in this business.

Jul 11, 2008 06:50 AM #2
Rainmaker
777,903
Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Hi Jeffrey,

Thanks for the info.  It's interesting I've read several other similar blogs and they recommend to lock rates today...  I'm just glad I'm not in that position where I have to make that decision today.  Hope we have good news come Monday.  Have a great weekend.  Michael A. Caruso

Jul 11, 2008 06:57 AM #3
Rainer
4,053
Jeffrey Stoub
Wisconsin Home Lending, Inc. - Waukesha, WI

Many bloggers or market watchers might say to lock today... rates are definitely going in the wrong direction since the open.  I've seen that advice a lot too - many take the stance on a daily basis.  Since rates this morning were better, then lenders are probably re-pricing worse.

FHA rate have moved worse than conforming - those might need a harder look.  Personally, I think that since we've come up strongly from where we were on June 16th (140 bps), about 0.375% on the 30 year Fixed conforming rates, that we were due for a move like this.

There is a lot of uncertainty, and I've been wrong in the past.  But, I also have a lot of my own clients that follow my blog, and for them, I am waiting this out.  I did lock one client today, because we just rode up the nice move, and she got a rate 0.25% better than when we started.  It closes in 2 weeks, and it was a nice positive move for us, so it made sense.

Jul 11, 2008 07:01 AM #4
Rainmaker
104,541
Neal Barnes
Starstate Realty - Killeen, TX
Broker, REALTOR, ABR, CRS, GRI, SRES, SRS.

Hi Jeffrey  -  Welcome to ActiveRain.  I look forward to reading your future post.  Have a nice day!!!

Nov 04, 2008 07:10 PM #5
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
4,053

Jeffrey Stoub

Ask me a question
*
*
*
*