Mortgage Rate Comments

Mortgage interest rates have been taking on some interesting changes. Here is a short summary by loan officer, Rob Clark of Preferred Mortgage.

Despite significant ongoing federal government intervention into private
markets, mortgage rates
jumped last week. While there were many potential
reasons, there was not any one huge item that
drove rates upward. Consumer
Confidence numbers did spike, but GDP was not revised upward as
much as
expected. Whatever the cause, the jump serves as a good reminder that rates can
move, and
move quickly, at any time. Under current conditions, upward jumps
are certainly more likely.
This could be another week of mortgage rates
moving up and down. The ISM indices are due this
week and are expected to
show further slowing in the rate of economic deterioration. If both come
in
higher than expected, mortgage rates are very likely to move further
upward. However, the week ends
with the all-important monthly employment
data. If unemployment tops 9.0%, as expected, and
another half million jobs
or more were lost last month, it should serve as a reminder that this
recession
is not over yet This news should help push mortgage rates down as
the week closes.
~ Rob Clark, Preferred Mortgage