Rate Update March 17, 2008

The beginning of this week is a busy one in terms of financial news. Here are the stories that we feel are of most importance to mortgage rates:

*Bear Sterns- The troubled investment bank agreed to be acquired by JP Morgan Chase yesterday for only $2 per share (the stocks 52-week stood @ $160). In today’s you tube video I discuss how this news is impacting mortgage rates.

*The Fed- In a curious move the Fed lowered the Discount Rate by .25% over the weekend. This was an interesting development in light of the fact that they have a rate announcement scheduled for tomorrow. The Fed is widely expected to cut short-term interest rates. If you are an avid reader of ‘rate update’ you know why we think a rate cut will hurt mortgage rates in the long-term.

Current Outlook: floating

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.