I had a complete meltdown on my Twitter feed, yesterday. Bernanke told the House that he was concerned about inflation but more concerned about a recession. I initially reversed my float recommendation and subsequently changed it back to lock because I thought Wall Street would hate Ben’s remarks; I was wrong. I violated the first principle; don’t fight the Fed.
The Federal Reserve is worried about a recession. I think we can expect the Fed to cut rates next month.. The anticipation of that cut gives us a chance to see mortgage rates drift lower. You should CAUTIOUSLY FLOAT your mortgage rate if your closing is over 7 days away; I think you’ll have some room to get a mortgage rate that is .125% to .25% lower than it is today.
We’re you paying attention to my Valentine’s Day gift of love? I pointed out the hot curves on the 10/1 ARM; it was a full 1% lower than a 30 year fixed. She’s not as sexy as she was last week but the 10/1 ARM is still .5% better in rate than the 30 year fixed.
This morning’s report is a bit more dry than the others because today will be busy. The Gross Domestic Product showed that the economy is teetering on the brink of recession. That news will be good for mortgage rates. The market is volatile so always check Mortgage Rates Report for updated recommendations.
BREAKING NEWS: I’ll be offering this syndicated column for Home Gain as “National Mortgage Rates Report”, every Monday and Thursday.