THE MORTGAGE MARKET THIS WEEK

The Week in Review:

It was a relatively quiet week for mortgage rates last week. We continue to hear news of various financial institutions taking large write offs relating to the subprime market but the “Wow” of it seems to have died off. The market understands it and has adjusted expectations accordingly. This morning, however, Goldman Sacks downgraded Citigroup to a “Sell” from a “Hold” position saying that there may be another $ 4 Billion to write off related to subprime losses. This news is hurting the stock market and bonds are benefiting! It’s a crazy market.

The big news last week did not move the market but came from the Fed Chairman, Ben Bernanke. Mr. Bernanke announced that the Fed would be doubling its communications effort as it relates to the economy and the Feds forecasts. This is viewed positively and is a significant departure from Alan Greenspan’s approach where the market was often left scratching its head after his encrypted communications. So, we are hoping that more is better in this case.

The Week Ahead:

This is a short trading week given Turkey Day on Thursday. The market will be closed on Thursday and open only half days on Wednesday and Friday. So, the most interesting thing happening this week will be news on Housing Starts and Building Permits which comes out on Tuesday.

I anticipate a slow week and recommend locking rates as they continue to be very strong!

Have a great Thanksgiving!

Rates:

Conforming ($417,000 or less)

• 30yr Fixed 5.875%
• 5yr ARM 5.500%
• 7yr ARM 5.750%

Jumbo (Greater than $417,000)

• 30yr Fixed 6.500%
• 5yr ARM 5.625%
• 7yr ARM 6.125%

Justin Whitney, Home Loan Consultant
C- 843-270-8366
justin_whitney@countrywide.com
www.loansbyjustin.com