Mortgage Market Report for Tuesday January 15, 2008

Mortgage Market Report for Tuesday January 15, 2008

The weak news on the economic reports are prompting a surge in mortgage bonds. Tomorrows Consumer Price Index will be out tomorrow and will carry more weight. News from Citigroup are also hurting stocks and helping bonds. The huge, nearly 10 billion, loss in the fourth quarter and 41% reduction in dividend distribution are hurting the stock market. Money is being taken from the Stock market and being parked in Bonds today.

The weak economic picture painted from this morning's news should give the Fed reason to cut rates by .50%. Again, this does not insure that mortgage rates will be affected by this cut. This primarily will help those loans such as home equity lines of credit that are tied to the prime rate index.

Bond prices continue to march higher and are now at the highest levels since June 2005. We will continue to float, but be ready to lock, as prices are technically overdue for some sort of correction lower.

Thank you for listening to http://www.contactherrick.com/ I wanted to thank you personally for your support as we navigate our way through this most difficult times in the mortgage market. We will have another report for you, your family, your friends and your important business contacts tomorrow.

A quote from Oliver Wendell Holmes