Rate Update November 20, 2008

Mortgage rates are modestly better this morning this morning.

In yesterday’s rate update/ you tube video we focused on the concept of “deflation”.

Coincidentally, the Federal Reserve released a report yesterday in which they acknowledged the future risks of deflation in our economy.  On that news the stock market slid to a new multi-year low as investors sold stocks and bought US treasury bonds.  While US treasury yields sank yesterday mortgage-backed bonds failed to benefit.  Watch today’s you tube video to learn more about the interest rate environment.

We believe that mortgage rates have a good chance of dipping lower over the course of the next few weeks/ months in response to deflationary expectations.  If you’d like to review your mortgage situation with us and establish a “trigger point” for refinancing please feel free to contact us.

Current outlook: neutral in the near-term/ floating in the long-term