Spoken word can do a lot for the markets, It’s no joke.
Early in the week Ben Bernanke made a statement that the Fed may continue to offer emergency loans to investment banks facing liquidity issues. Obviously this is good news for folks who had concerns with the stability of the market. It isn’t a guarantee, however it does build confidence that the Fed is willing to do what it takes to get us through a less than easy time.
Fannie Mae and Freddie Mac
Last week there was a committee meeting. The first of it’s kind actually. The House Financial Services Committee discussed ways they can modify the current regulatory environment in regards to mortgage and credit markets. Paulson (Treausry Secretary) was extremely positive about Fannie Mae and Freddie Mac, but once word got out that the governement was considering taking control over both Fannie and Freddie if a collapse is inevitable.
This was scary for stock holders, because this would pretty much leave them worthless.
What’s This Have To Do With Mortgage Rates?
After all of the smoke cleared last week, mortgage rates closed about the same as they started at the beginning of the week. Slightly better, maybe – but not much to write home about. Oil prices still rise concerns of inflation and that’s not sexy news for mortgage bonds.
The Pitch
If you’re shopping for a mortgage (purchase or refinance), it’s important to know what impacts mortgage rates. If you lock ahead of a great improvement, you can loose out on $1000’s worth of savings. Same goes for if you ‘wait it out’ and don’t lock ahead of a wicked reprice.
Getting a great deal on a mortgage isn’t all about asking the common questions:
- What is your rate?
- What are your closing costs?
Look for great advice. If you’re in Iowa, I’d be glad to be your guy. If you’re out of the state, I’d be happy to connect you with someone who can get you the advice you need!
Follow at Your Own Risk
If you want to keep updated on where rates are moving day to day, feel free to follow me on Twitter. It’s a bit of an addiction for me, but I communicate what the market’s doing throughout the day and try to take some of the mystery out of where mortgage rates are headed.
