Mortgage rates poised to move higher ahead of Federal Reserve rate cut

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Mortgage rates moved lower early last week only to give back most of that gain by today.  Rates could move even higher as the Federal Reserve meets Wednesday to cut the Federal Discount rate.  Estimates are ranging between .25% and as much as .75%.  The last time the Fed cut the dicount rate by more than .50%, mortgage rates came down.

If you're closing within the next two weeks it comes down to a Texas Hold 'Em strategy.  If you believe in that big .75% cut you mind as well go all in.  If your not, then lock and call it a day.  Either way Wednesday could be a big day for the markets.

Rates as of 10/27/2008  

                        Conventional Rate                Jumbo Rates                   FHA            MSHDA

30yr Fixed                   6.500%                             N/A                        6.75%        6.50%

5/1 ARM                     5.875%                             5.875%                  N/A                N/A

7/1ARM                      6.125%                             6.125%                  N/A                N/A

Rates based on certain credit scores and down payments.  Rate subject to change.

Chuck Anway: National City Mortgage

248-921-0314 available 8AM to 11PM (EST)

chuck.anway@ncmc.com

 

 

Date: Monday, October, 27th 2008 @ 03:48:03 PM
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