The Monster Under...Economic Update & TMA's Weekend Rates

The Mortgage Advantage, Inc.
Harold Perkins & Mary Ellen Kohut
YOUR IN-HOUSE LENDING TEAM
480-831-1588



Today’s Consumer Price Index indicated that what we are paying for our stuff is in line with what we make, as long as you take out oil and food prices. The Feds were doing the happy dance because it meant that the scary hairball called inflation has been swept under the bed (for now) and the chances of lowering the Fed rate at least another .500 may be a reality. How will that affect us? Unless you are a bank borrowing money from the Fed, you probably will not feel it. In the old days (last month) the adjustable rate mortgages or home equity lines of credit dropped every time the Fed moved. No so anymore. Until two weeks ago, the 30 year fixed rates moved along with the 10 year bonds. To compare, in June 2003 the 10 year bond was at 3.10 and the 30 year fixed was around 5.25%. Today the 10 year bond is close to the 3.10, but the 30 year is around 6.125%. Investors are terrified by the mortgage defaults so all of the lenders, including Fannie Mae and Freddie Mac are having trouble refilling their vaults, therefore higher interest rates. Getting back to that scary hairball, its name is oil and the March numbers may be frightful (sorry, couldn’t resist).


FYI: China’s miracle economy of the 21st century has overtaken France to be 4th largest economy in the world. But….China has 1.3 billion Chinese. France has 60 million French people that produce almost as much economic output each year on a 35 hour work week and still produce 246 different types of cheese.



Friday, MARCH 14, 2008
WEEKEND RATES

30 Year Fixed 6.125
Loan amounts up to $417,000
FHA 6.000
Loan amounts up to $346,250
VA 6.000
Loan amounts up to $417,000
3 Year ARM 5.625
Loan amounts up to $417,000
Jumbo 30 Yr. 7.125
Loan amounts over $417,000
Jumbo 5 Yr. ARM 6.875

WE ARE AVAILABLE ALL WEEKEND!

Mary Ellen Kohut: 602-329-3437

Harold Perkins: 602-570-9407


For real estate professionals only. Rates are an estimate to give an overview of current interest rates and are subject to change. Conforming Rates are based on $225,000 loan amount; Jumbo rates 20% down, Rates could include points and mortgage insurance depending on the program and credit. Down payment could vary depending on appraisal and program. Primary residence, fully documented income and assets, not limited down, good credit. This is provided as a service. Upon approved credit. There are no guarantees intended. Rates may not included Refinances












The Mortgage Advantage, Inc
1720 E Warner Road Suite 1
Tempe, AZ 85284
Truth In Lending Promotes Trust In Lending