CURRENT MORTGAGE NEWS !

Stocks are Mixed,Rates are Higher,The Dow Jones is up 35 points on Friday morning.The NASDAQ is up 10 Points.The 10 year t- bill was worse by 2 B.P. on the day to 4.06%.Interest rates are worse today,Stocks are mixed.Oil is lower at $133 a barrel today. updated 7/24/08 @9:40 am

The current run up in interest rates has been created by higher food and energy costs.The bond and mortgage markets react negatively to inflation expectations.Higher inflation is expected to cause the Federal Reserve to look at raising rates later in the year many investors feel.When the Federal Reserve does start to talk about interest rate increases that should help strengthen the dollar and bring oil prices down.The 10 Yr T-bill tends to be the best indicator of the direction for interest rates in the near term.The 10 Yr T-bill is currently trading at 4.21%.Thirty year fixed rate mortgages are trending between 6.50% and 6.75% with No Points.The last few months the 10 Yr-bill had been trading in the 3.50% to 3.75% range.Mortgage rates during that period were in the 6% to 6.25% range.

Great deals on homes right now helps off set any small increase in interest rates.Home prices have fallen from 5 to 15% over the last few months.Their are many foreclosed homes on the market today which can be bought for 10 to 30% off appraised value.This is really a great time to purchase a home.Many times your payment will be less than rent using 30 year fixed FHA financing.You can still get zero down financing using FHA down payment assistance programs.

Fha is currently revamping its loan programs to help more people purchase and refinance their homes with safe 30 year fixed rate financing.Look for updated FHA loan programs in the coming months.

With all the bad news in 2007 about sub prime loans the end came swiftly.Their are very few if any sub prime lenders left in the market today.Its for the best,the loans they made got many borrowers into homes they couldn't afford to pay for.At the same time many of the sub prime lenders prayed on homeowners charging much higher fees and rates to borrowers who could least afford to pay.It amazed me how long the sub prime lending market held up after some of the horror stories I have heard from borrowers trying to refinance over the years.

Its time to get back to plain old 30 and 15 year fixed rate Conventional and FHA Financing in 2008.

Community Mortgage - 5534 St. Joe Road - Fort Wayne, IN 46835
Office Phone: (260) 485-5555 Fax: (260) 485-3540 Cell Phone: 574-457-6643
Toll Free Phone: 800-333-2992

We lend in the following states: INDIANA

Equal Housing Lender