Mortgage Market Update for 12-2-2008

Mortgage Rates have been updated.

Reactions and Recommendations:

The stock market is staging a bit of a rally today.   Why?  Because Ford said they expect to make a profit in 2011.  Once again, like last week, the market is reacting to emotion and, in this case, saying, “Oh good, the auto industry is in okay shape!”

Has anything of substance changed between yesterday and today?   Nothing that would have an impact on the overall markets.   So don’t expect this rally to continue for too long either.   Until we see a rally that has a solid basis on fundamental facts, it’s going to ride the roller coaster of hope and fear and greed and despair.

Recommendation - due to the volatility, I’m recommending that you lock all loans.   There is the possibilty that rates could go down, but I believe the upside risk is greater than the downside potential.

Have a good day and check back often.   I’ll be writing more as news breaks and issues warrant discussion!

Tom Vanderwell

December 2, 2008