ECONOMIST  RATE  LOCK   OPINION:

Troubled Mortgage Industry in Turmoil                                     Fed Chairman, Ben Bernanke, States Fed Watching Mortgage Industry                                 Tougher Standards Qualifying for Mortgages In Effect Immediately

SHORT-TERM TREND (20 days or less)  Flat to Higher Rates

LONG-TERM TREND (21 days or more) Flat to Higher Rates

SUGGESTED STRATEGY:  I suggest that you immediately convert any “floating” loan to “locked” 

New Fed Chairman Bernanke showed a good sense of balance and poise.

Traders quickly discounted the fact recent data showed that housing starts were up.  It is worth noting that building permits were up.  The data is delayed and does not reflect the recent monumental changes in mortgage securities. Housing starts and building permits are "mortgage market unfriendly";  however,  taken as a whole,  macro-economic data has had little impact on the direction of mortgage interest rates as of this moment. 

Recent mammoth changes in the mortgage industry secondary market have not yet caused movement in core loan programs such as FNMA, FHLMC and government programs,  but gigantic increases in interest rates on Non-Conforming loans are being realized.  Dramatically stricter lending guidelines will reduce the number of buyers able to obtain a loan approval.   

Play it by the numbers.

THE MARKET IS ALWAYS RIGHT! … YOU AND I ARE SOME OF THE TIME

A good chart for following the Treasury Yield is located on Yahoo Finance.

It updates every 20 minutes. You can simply click the following link to go there: (Yahoo Finance)

Another Consideration as to Course of Action Regarding Future Mortgage Rates if You Are Building a Home ?

Those of you currently in the middle of construction, building a new house, and hoping to capitalize on the current market of low interest rates need to keep a close eye on the market .    The same goes for anyone with a pending loan application that have not obtained a "written" lock confirmation on their interest rate.   The immediate future of interest rates never comes with absolute guarantees and likewise forecasting the distant  future of mortgage interest rates is less predictable.  You could consider a ninety (90) day rate lock if (90) days would allow enough time for you to complete your transaction. Many lenders (like Bright Mortgage ) can accommodate you with a ninety (90) day rate lock without penalty or problem.  If you would feel better about a longer lock period, such as six (6) months, etc.,  some lenders (like Bright Mortgage ) can still accommodate your needs.     In some cases interest rates can be locked even without a property being located or purchase contract written.   This is good for those concerned about rates going through the roof before they locate the right house to make an offer on to buy. The same goes for those customers just beginning to purchase a new house to be built.  If your home is already under way and your interest rate has not been secured,  you should weigh your options regarding locking your rate.

Click Here To Register For Target Rate ®

Not ready To Lock Yet ?  Enter the Rate You Want and we'll Send you an E-Mail When Rates Hit Your Target

No Other E-mails Will Be Sent Unless Your Target Rate is Met !

Worried About Where Interest rates Are Going ?

click  here  for  Info  on our  "Smart Lock"™ Program