Mortgage Market Rerport for Friday February 8th, 2008

Mortgage Market Report for Friday February 8, 2008

Yesterdays sell off in bonds was prompted by Dallas Fed President Richard "Loose Lips" Fisher. Blurting out comments that were off topic and upset the financial markets as his rambling went along. He was the lone dissenter in the last fed rate cut. This had a very negative effect on the market and prompted a sudden sell off.

The Senate approved an amended version of the Economic Stimulus Plan. It will go back to the House of Representatives for approval again. It is expected that the President will sign this Stimulus plan on February 16^th.

Loans originated between July 1, 2007 and December 31, 2008 may be purchased by Fannie and Freddie, as long as the loan amount does not exceed the higher of $417,000 OR 125% of what HUD determines to be the area median home price, with a maximum cap of $729,750. This will allow some loan amounts higher than $417,000 to have significantly better pricing, at least for a limited time frame.

We recommend to cautiously float your rate for now as many of the comments from Fisher seem to be overblown.

Thank you for listening to http://www.ContactHerrick.com/ We will have another report for you, your family, your friends and your important business contacts tomorrow.

Another quote from Confucius

"Study the past if you would define the future."

Roger Herrick

California Mortgage Broker

www.ContactHerrick.com