Elizabeth Rose - Certified Mortgage Planning Spec - DFW, TX

While the media and Washington continue to chatter about the mortgage market and the slowing economy, interest rates are currently near or at all-time lows. If you or anyone you know are looking to take advantage of these low rates, let me explain why NOW is the time to act.

You may have heard the talk lately about the 4.5% 30-year fixed rate mortgage. Will it become a reality though? Right now, no one really knows. Here's what is interesting. The Fed only has the ability to control the Fed Funds Rate, which generally has the opposite effect on long term home loan rates.

It is unclear how the Fed can possibly set a 4.5% interest rate, so it could be unlikley you'll receive a Christmas package looking like this. Homeowners who could benefit from a lower interest rate need to know that even if 4.5% becomes a reality from Washington's actions, it would only be available to home buyers, not homeowners seeking to better their rate. If you need to refinance, you will be left out.

What has occurred thus far is the Fed announced recently they would begin buying up to $600 billion in mortgage backed securities (MBS). This announcement has already driven rates to historical lows. How? It assured traders that if they need to sell, the government would be there to buy. So traders jumped back into the market and began buying with a big appetite which improved home loan rates.

You also may have heard about Hope for Homeowners, which is a program approved by legislators to help distressed homeowners. However, regardless of its best intentions, the program has not been embraced by investors, and it is not available to many it could help.

In January, the SEC is meeting and information may be released that could have a significant bearing on rates, potentially for the worse.

Waiting to obtain the best rate is only possible for those with loan applications already in process. Interest rates are incredibly volatile and fluctuations that used to take months are now occurring in just days or sometimes even hours. If you don't have an application in process, you could lose out.

Lenders are already becoming backlogged due to low interest rates. In 2003, with rates at these same low levels, we saw some lenders taking up to 90 days to close a loan.

Home loan rates are currently in the mid- to low-5% range. Home values are currently at 2003-2004 levels, coming down significantly from their high point. If you...or co-workers, friends and family members you know...are contemplating seeking financing, now is the time to act. Gather your paperwork and get your application in process so you don't miss out.

With a first time home buyer tax credit of up to $7,500 and low or no money down programs available for many people today, now is a great time to buy a home.

If you have any questions about how we can help you, call me today.

To get started on your application right away, visit my website at www.ElizabethRoseOnline.com and click on "apply now", then "apply online".

The auto industry continues to make headlines as the Senate rejected the bail out plan last night. The Bush administration is considering its options to save the auto industry including using TARP funds. Bonds have traded in a wide range this morning on the uncertainty of this outcome as well as today's economic reports.

This morning the retail sales report was released. The report showed retail sales fell 1.8% pretty much in line with expectations. Producer Prices also showed a sharp decline of 2.2% mostly due to the drop in energy prices.

While we are still in positive teritory, but things can change quickly. Bonds are trading at a ceiling with prices "overbought" and could easily be pushed lower as the technical signals show a bearish pattern. We remain at price highs of 2008 resulting in very attractive home loan rates.

The auto industry continues to make headlines as the Senate rejected the bail out plan last night. The Bush administration is considering its options to save the auto industry including using TARP funds. Bonds have traded in a wide range this morning on the uncertainty of this outcome as well as today's economic reports.

This morning the retail sales report was released. The report showed retail sales fell 1.8% pretty much in line with expectations. Producer Prices also showed a sharp decline of 2.2% mostly due to the drop in energy prices.

While we are still in positive teritory, but things can change quickly. Bonds are trading at a ceiling with prices "overbought" and could easily be pushed lower as the technical signals show a bearish pattern. We remain at price highs of 2008 resulting in very attractive home loan rates.

Mortgage Bonds continue to improve as initial Jobless Claims hit a 26 year high. Yesterday, Mortgage Bonds benefited from the governments purchasing program for Mortgage Backed Securities. They are continuing this nice rally today as we are seeing the best pricing of 2008, beating out the refinance window of January 17-22^nd.

If you are considering a refinance, this might be the right time. With the government creating a market for Mortgage Backed Securities, it is likely that more traders will step in as buyers keeping the rally alive. However, once inflation begins to creep back in, Bonds can quickly change course.

Don't Blink! The media is reporting today mortgage rates have dropped .5%...down to an average of 5.47%. As usual, the media is late to the story. Last week mortgage rates did drop anywhere from .25% to almost .75% in some cases. Mortgage applications doubled last week on this drop in rates which was primarily due to the Fed announcing they would begin to buy Mortgage Backed Securities.

However, Mortgage Backed Securities began to take a turn on Monday and mortgage rates have started to climb again. With all the volatility in the market, there is plenty of opportunity. But you must act quickly and decisively or else you just might miss out.

More gloom today on the Job front. ADP reported a 250,000 loss for November, representing the biggest loss in 7 years. Friday we'll get the official Jobs Report and Unemployment numbers. The numbers are expected to be dismal and it is unlikely they will have much impact on the Bond market.

If are considering a refinance, it bears repeating...don't Blink! As quickly as the market moves it is difficult to get the absolute best rate. And be wary of rates posted in the newspaper and the internet as they rapidly change...sometimes several times within a day. Make sure you are working with a professional who is watching the correct indicators and instruments and giving you sound advice.