Rate Update for July 30, 2008

Rates remain unchanged this morning as mortgage-backed bonds continue to see-saw up and down. 

The big economic report this week comes on Friday when the Labor Department releases the monthly jobs report.  For a detailed explanation as to why this report is important for mortgage rates please check this link.  An initial indicator from the company ADP suggests that this report may beat analysts’ estimates for 70,000 jobs lost in the month of July.  Because of this we are shifting our bias towards a locking bias.

President Bush signed into law the housing bill this morning.  This comprehensive legislation aimed at helping the housing market has various provisions which you can read up on at this link.  Amongst the most talked about provisions is the elimination of seller financed down payment assistance programs in conjunction with FHA loans.  The effective date for this rule will be October 1st, 2008.

Current Outlook: locking bias

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.