I checked rates today and we are up about 32 bp (basis points) and are still hovering around the 4.75% mark on a 30 fixed, so lock ‘n load if you can.

No major reports today, but tomorrow’s Consumer Confidence report will have an impact in my opinion. What this reports does is detail the attitudes on present economic conditions and what consumers (YOU AND ME) expect to happen in the future, and this has a pretty big impact on stock and bond markets.

On Wednesday, the MBA (Mortgage Bankers Association) Purchase Applications report and the Jobless Claims Report will be coming out, in which last time was nearing the 7% mark.

Without going into too much detail, I would recommend locking something in at the moment. No point in risking ANYTHING with prices being this good. I don’t think this holiday season has been the best in terms of spending, and with the Hamas and Israel conflict going on too, this is definitely going to have a negative impact on oil prices which will hurt interest rates.

Take my advice and thank me in ’09.

Hope you all have a safe and great New Year!

For a 30 year-4.75%.

For a 15 year- 4.5%.

When I was locking in a rate this morning for a home purchase closing this month, I stuttered and had a “WOW” look on my face. Rates haven’t been this low in years, and several of my past clients have been calling to refinance their current mortgage the past couple weeks- even if they AREN’T in an FHA mortgage.

It doesn’t make sense all the time to go from a conventional mortgage to an FHA, but in specific circumstances, it is VERY financially feasible.

So here’s the CONDENSED explanation on why what’s happening is happening.

For the last 6 months the Fed and the Treasury have made unprecedented moves to help the economy, but despite all their efforts, mortgage rates weren’t really effected and they were actually increasing.

That is, until yesterday.  In a matter of minutes yesterday morning, mortgage rates have taken a dive to lows we haven’t seen in years.  Why?  The Federal Reserve announced plans to buy $600 billion in debt and assets from Fannie Mae and Freddie Mac in order to oil the housing finance market and “reduce the cost and increase the availability of credit.”

It will be interesting to see how long this drop will last – given the volatility in the market it could last hours, days or months- there’s NO telling.

What I CAN give you is advice, however. When there’s a SMALL WINDOW OF OPPORTUNITY such as this, you need to capitalize on it and take advantage. You can contact me and we can do a Mortgage Check-Up (revisiting your current mortgage terms) for you at NO COST.

If you can save money, I’ll tell you. If you CAN’T and its not worth it, I’ll tell you as well.

And PLEASE, PLEEEEASE do not get greedy when it comes to these low mortgage rates. What many people do time and time again is say “Oh, let’s see if it’ll go lower.”

My suggestion- DON’T GAMBLE! Do you know any gamblers that still have any money left?

You will end up waiting yourself OUT of the market and looking back WISHING you would have gone the safe route.

Find a rate that’s low enough for you. Determine if you can live with it. Then roll with it!

Straightforward, simple, and educated advice.