Long Beach Mortgage Rates Report- April 14, 2008

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I’m still floating mortgage rates, unless my clients are closing within 14 days. I”m cautiously floating
because of the volatility in the market. Fundamentally, mortgage rates
shouldn’t have a whole lot more room to come down; the Fed cuts are
probably coming to an end. Something much more drastic than the Fed
open market activities will be needed to pull us out of the recession.

Yep. I said the R word and have been since last fall. I’m not
scared of the recession; I welcome it. Here’s the trick for mortgage
rates. The weak dollar has world investors believing that the Fed’s
easy money policy is inflationary…

UNTIL…

the recession hits them. Make no mistake about it, the economic
slowdown is a global phenomenon. Canada and the UK are following suit
by cutting rates. I think the world wide recession will lower oil
prices and provide some much needed relief to the American consumer.

Nothing says it like pictures. I’ll show you some charts, to see how I’m thinking.

One Month FHLMC 5/1 ARM Mortgage Rates

Look at the one-month rate chart (linked above). We were at 5.5%,
on March 13, 2008. We rose to 5.7%, on March 30, 2008, and declined to
5.6%, today.

Something’s wrong!

Look at the one month mortgage-backed securities market! It doesn’t
look like a mirror. The bond prices have advanced but the mortgage
rates haven’t come down. The mortgage rate (for the 5/1 ARM) should
be down to 5.3% (or lower).

That’s signaling one of two things: lower bond prices, this week,
or lower mortgage rates, this week. I think the recessionary fears
will keep mortgage bond prices high, so I’m opting for lower mortgage
rates.

This is what an experienced mortgage planner does on the weekend.
Why? To get you the best rate execution, of course. The value of an
experienced mortgage planner can save you thousands of dollars by
knowing WHEN to lock and when NOT to lock your mortgage rate. Call me
at 858-777-9751 to find out how it can benefit you.

Laurie Manny Long Beach Realtor (562) 212-5420	$\"\"$
Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803	$\"\"$
Long Beach Real Estate BlogLong Beach Real Estate Website	$\"\"$
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Long Beach Mortgage Rates Report- April 14, 2008