Mortgage Market Report for Tuesday January 29th, 2008

Mortgage Market Report for Tuesday January 29, 2008

The past several trading days, the Mortgage Bonds have been most volatile. The Fed's decision is due tomorrow. Consumers Confidence was reported stronger than expectations raises some concerns for those policymakers at the two day Fed meeting.

The Fed's interest rate decision and Policy Statement will be released tomorrow at 11:15 AM Pacific Time.

The Fed has already brought Fed Funds Rate down to 3.5% from 5.25%. There has been the 50bp cut in just the Discount Rate back in August. Finish with the President's Stimulus Package and another 50bp cut tomorrow and you have plenty to juice the economy.

Loan applications do not peak at the lowest point for rates. It does so when rates start moving up and clients jump in before the train pulls out of the station. This is most common.

If and when they raise the conforming limit the jumbo loans that are greater thank 417K and less than the new maximum will benefit greatly from the improvement in rates and terms. Sorry for the pitch, but please call me, refer me.

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