Phoenix Mortgage Rates Report: December 13, 2007

brian_smile.jpgWe still favor locking fixed-rate mortgage rates, at application for rates under 6% (while paying the standard 1% origination fee). Today, that mortgage rate would have been 5.875% for an APR of 6.125%.

Last week, mortgage rates dropped fast and rose as quickly. When a fixed-rate loan is at 5.5%, we think it makes sense to lock-in the rate, even if you have to pay a little discount fee, to get that rate (depending on your expected hold time). That rate was available for one day only, last week. Those of you who were ready to act quickly, will be closing at that rate this week.

If you call me and make an application, I’ll watch the mortgage rates daily and communicate with you so you can “bottom fish” this market.

If rates creep above 6%, we favor floating. The Fed’s decisions to print more money may seem inflationary but the liquidity crisis still exists. Wall Street may bid mortgage rates above 6% but we don’t think lasts for more than a few days.

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at