Rate Update October 28, 2008 (Go Blazers!)

Just like that mortgage rates have jumped by .375%-.625% in the past three days.  Fortunately, we shifted our outlook to locking on Friday of last week so if you took our advice you’re in good shape.  The recent volatility in mortgage rates highlights the importance of working with a professional who closely monitors the conditions in the mortgage market and advises their clients accordingly.

By locking on Friday a borrower with a $300,000 loan would stand to save approximately $1,500 per year in interest by taking our advice.

Mortgage rates continue to suffer at the expense of margin calls and redemption requests on the part of investors.

In case you missed it yesterday, the Fed begins it’s scheduled 2-day meeting today.  It is widely expected that they will announce a cut to short-term interest rates by .50% tomorrow.  PLEASE REMEMBER THAT WHEN THE FED CUTS SHORT-TERM RATES IT DOES NOT NECESSARILY TRANSLATE INTO LOWER MORTGAGE RATES.  PLEASE READ THIS LINK FOR AN EXPLANATION.
Current outlook: locking