grauteam | mortgage update 12.17.2007

Rates have risen back to a 5 week high. Expect more volatility since the Fed is caught between fighting inflation and preventing a recession. Friday’s Personal Consumption Expenditure [ PCE ] Report confirms if inflation remains under to 2% and could be the deciding factor on future rate cuts.

Fannie Mae’s new credit score penalties have been adopted by investors already. Example today: 20% down 30 Fixed No Points | <620 Fico = 7%, 620-639 = 6.75%, 640-659 = 6.625%, 660-680 = 6.375%, 680+ = 6.125%. Credit Scores are more important than ever.