Mortgage Market Report for Friday January 25th, 2008

Mortgage Market Report for Friday January 25, 2008

Another volatile day in the market. Stocks opened higher and are now much lower. So again bonds are being purchased as the uncertainty continues in the markets. We have seen a large loss in rates in the past couple of days as stocks have made a run to the upside.

Yesterday, we mentioned the potential for a conforming limit increase. This is almost a done deal and should be realized by the end of next month. So far it looks like the cap will likely be 125% of the median home price in your area, with a maximum around $730k. For those with loans above $417k, but below the new cap, the savings will be huge.

This looks like the increase will be only for one year and will then expire. It is a good time to see how these changes can enhance your situation. It appears to be only for a limited period as a result of the liquidity crisis in mortgages that has occurred over the past year.

Thank you for listening to contactherrick.com. We will have another report for you, your family, your friends and your important business contacts on Monday.

A quote from Bill Gates

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