Pasadena Mortgage Rate Update: January 22, 2008 + Emergency Fed Funds Rate Cut!

Better get under cover, Sylvester. There’s a storm blowin’ up, a whopper.” Professor Marvel; The Wizard of Oz

Just when you thought it was going to be a light week on the Economic Calendar, the Fed comes out with an Emergency Rate Cut!

A total of 75 basis points (.75% down to 3.50%).

The Bond Market is performing well in light of the rate cut (which is good for mortgage rates) but keep an eye on the market.

Remember, Stocks and Bonds compete for the same investment dollar. This means that investors can choose to invest their money in the Bond Market or they can choose to invest their money in the Stock Market. If they choose the latter, expect a deterioration in mortgage rates.

But for now, we’re still holding out around last week’s lows!

5.375% (5.547 apr)    30-Year Fixed Rate Mortgage

(80% LTV & conforming loan amount)

Jumbo Mortgage Rates:

6.25%    (6.455 apr)    30-Year Fixed Rate Mortgage

(80% LTV | loan amounts $417,000 to $650,000)

Contact me for pricing on loan amounts greater than $650,000.

Disclaimer: Rates are subject to change upon borrower qualification. World Wide Credit Corporation is an equal opportunity lender.

Recommendation: lock-in your mortgage rate for any new purchase applications. If you have a refinance closing in the next 30 days, lock-in your rate. If you’re closing in the next 45 days, it’s advisable to float and check back for more updates. 

One Response to Pasadena Mortgage Rate Update: January 22, 2008 + Emergency Fed Funds Rate Cut!
  1. pasadenaviews
    January 22, 2008 | 11:24 pm

    Ricardo, very interesting to see a cut of .75 points. It’s almost unheard of. A cut like that certainly offers a lot of opportunities for refinancing and new home loans. Thanks for posting this article on my blog!

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