Rate Trend Index: 10/17/08

Oct. 16 - Oct. 22, 2008

This week, a little more than half of the panelists believe mortgage rates will fall over the next 35 to 45 days. About one-quarter think rates will rise, and a fifth believe rates will remain relatively unchanged (plus or minus 2 basis points).

Panel:

Up:27%
Down: 53%
Unchanged:20%

Mortgage Rates 10/17/08: National Overnight Averages

NATIONAL OVERNIGHT AVERAGES

Conventional Loan: These averages include 1.75% discount point, origination fee of $795, $400 appraisal, Title Fees, assumes 20% equity, Loan size of $160,000, Credit Score of 720.

FHA Loan: .35% higher in rate, 1.375% discount point, $795 origination fee, $150,000 Loan size, 600 credit score (minimum credit score 580 at higher disocunt points or rate), 3% equity, $400 Appraisal, Title Fees

30 yr fixed mtg
6.35%

15 yr fixed mtg
6.04%

5/1 ARM
6.06%

Rate Watch 10/16 and 10/17/08: Floating

Yesterday and today were good for bonds! The volatility continues in the stock market and Bonds have caught a break as a result. Bond friendly reports on inflation, worse than expected new housing starts, and downward revised profit estimates, have all helped Bonds this past few days. For now, waiting for all of the economic help from the Government to get into place and to start working is the best advice I can give right now. We will continue to see volatility in Stocks and Bonds, but sooner than later we will begin to see improving rates.

Investment Property update

I received this update from my Processing and Underwriting team today:

FYI: Mortgage Insurance companies are pulling their MI options for investment properties. They predict this to be ‘short term’ and ‘due to market conditions’….but be aware that investment properties are at 80% ltv max currently.

Rate Watch 10/15/08: Floating

It's hard to believe what is going on the Stock and Bond market right now and the old flow of money from Stocks to Bonds isn't happening. This morning is as close to "normal" as I have seen for weeks. Stocks are off 400 points and for now, we are FINALLY getting some price increases in the Bond Market as patterns forming within the Bond Charts are providing a level of support. As quickly as things change, and Bernanke is talking this afternoon, I will provide you information immediately if the direction changes!

Buyer Thank You

"Marty is very knowledgeable about the mortgage business. I found Marty to be very customer service oriented and detailed in the process of refinancing a house. I would highly recommend Marty for any future business dealings." Angie Salcedo, Loan#072012

Buyer Thank You

"It was a delight to work with Marty when we purchased our new home. We asked our realtor for a referral to help us with our mortgage - we were referred to Marty (and we are so glad we were). Marty took time to understand what our needs were. He performed different scenarios based on different mortgage products. He talked about the time it took to breakeven to buy down points. It was extremely helpful! Marty's rates were so much better than competitors. We were treated like gold. I would absolutely recommend Marty to help anyone refinance or purchase a new home. Wonderful experience!" Niels and Tara Hansen, Loan#071212