Mortgage Market Guide - 12/16/08
As we all know the Fed cut rates by a surprizing 75 basis points. The move was done in an effort to counter a sagging economy. An economy that posted one of the lowest consumer goods price index drops since the 30's. This means that rates have downward pressure on them. The only thing that can reverse the trend now is stagflation ( it seems ). The last time we had high job losses and high inflation was during Carters administration. OPEC has decided in deep cuts in oil production which was also one of the causes of the 70's stagflation.
As far as mortgage rates go, you are now hovering in the 5.25 range for 30 year fixed platnum customers. If you can save money every month by refinancing, calculate your savings and cost to refinance and see if its worth the endeavor. Call if you need assistance or a national referral.
