grauteam mortgage update | 1.28.2008 | 30F 5.625% 15F 5.125%

Currently the bond market is -6bp and the Dow Jones Futures are pointing to a low opening as well.  New Home Sales numbers will be released at 10:00am today.  With the current volatility we expect the Bond Market’s movement to be

opposite the Stock Market this week.  All eyes will be on the Wednesday FOMC meeting where the Fed is expected to lower the Fed Funds rate by another -50bp.  I will have my finger on the lock trigger for my current and past clients so we do not miss the opportunity to secure rates in the low 5’s.  Last Tuesday after the Fed lowered prime by -.75bp the markets were caught by surprised and our 30 Fixed Rate dropped to 5.375% but by Wednesday afternoon the stocks rallied and bonds tanked leaving 30 Fixed rates closer to 5.875%.