Understanding Mortgage Rates | dripp inc | Home Equity | Refinancing and Remortgage Guide

Good Afternoon,

Yesterday marked the end of the 3rd quarter, which can only be described as one of the most historic and volatile on record. While history will not treat this kindly, I trust we have all learned significant lessons. A key economic report from the Institute for Supply Management reflected its manufacturing index fell to a reading of 43.5, a significant decline. This indicates manufacturers are receiving fewer orders for products as businesses curtail spending. The next important data scheduled this week is the non-farm payroll report, which is projected to show another decline in jobs—this time 105,000. And now that the 3rd quarter is over we look forward to earnings announcements, which I am sure will not be as rosy as may have been projected. What investors will also be keenly aware of are the projections for the 4th quarter and next year. At this writing bonds are improving, with mortgages better by approximately .50% and the equity markets are lower.

If you missed the window of opportunity, the time to act is now, if you have an adjustable or a rate higher than 6.25%. Many FHA loans are outperforming their conventional counterparts.

With major banks raising their lending rates overnight, mortgage rates we are used to seeing will disappear due to the credit crunch. It will cost consumers even more to borrow to eliminate that adjustable, or to consolidate their debt.

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Good Afternoon,

The economy is sinking, and it is sinking fast. Most investors pulled from the stock market and have dumped what ever they have left into the treasuries. The 10-year yield, before the Rescue bill was denied, was as low as 23 basis points on the day.

The Dow Jones has fallen as low as 705 points and the day is not over yet. Mortgage rates have changed little. Typically the stock market and bond market move in opposite directions. Bonds have rallied in the last 2 ½ weeks, giving people looking for a mortgage, some breathing room.

Be prepared for some major changes in the financial industry, because the mortgage industry is visually transforming before our eyes. Though guidelines will surely change, it is uncertain how difficult it will be to get a loan. The majority of the changes set to take place in October have already taken a toll on many prospective homeowners. Consumers have reacted slowly to price drops and many of them catch the rates when they are on the rise. You can contact me today to see if refinancing would benefit you. Timing is of the essence.

You may contact us by filling out our form… click here.