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