Rate Update October 2, 2008

Rates are unchanged this morning.

The Senate passed a revised version of the financial rescue plan last night and it is expected to be voted on in the House of Representatives in the next few days.  The fate of the bill is still unclear but if it does pass we would expect stocks to react positively which could hurt mortgage rates.

In addition the bailout traders will be focused on tomorrow’s jobs report.  This is a monthly report issued by the Labor Department and can have a significant impact on mortgage rates.  It is our opinion that tomorrow’s jobs report will show significant weakness in the labor market.  Given all the recent turmoil in the credit markets we think the greater economy is suffering which should help rates trend lower.

Current Outlook: floating