Monday, January 14, 2008

Mortgage Market Info

From the desk of Alan Vanderheiden at


This will prove to be an interesting week…..there are a number of economic reports coming out this week, not least of which is corporate earning for 4Q 2007. These reports will provide the direction for the markets over the next few weeks.

It’s nearly certain that the Fed will cut the Fed Fund Rate again this month. Even money says it will be by .5%. They seem to now understand the impact of the past six months on the economy and are poised to do their part to help. Everyone on Wall Street and in Government is doing everything they can to avoid using the “R” word…..recession. By definition a recession is two consecutive quarters with negative growth. That has not yet happened but if we get a poor report on 4Q 2007 then all eyes will be on this first quarter of 2008. Fed stimulation will do as much to encourage consumer confidence as anything else.
We continue to enjoy very attractive interest rates. The market has been on a roller coaster ride for the past three months but overall the trend is down for rates. Several lenders are beginning to watch for “soft markets” which will reduce the LTV on all mortgage programs across the board. Florida as a whole has been designated as a soft market by several lenders. Not all of our lenders have jumped on this trend…..we have three or four that have not placed Nassau County in this position. We are still able to write 100% loans with a few of our lenders. Yes… is nice to be a broker.

John Holbrook
Prudential Chaplin Williams Realty

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