Phoenix Mortgage Rates Report: March 3, 2008

Lock all interest rates at application. The unrest in Asian markets is bleeding to the US and traders are more concerned about the inflation risk than the possibility of a recession. Economists believe that The Fed’s easy money policy is really an investor bailout disguised as a recession aversion. They think it’s compromising the integrity of our economy. As commodities prices (oil, food) accelerate, so may consumer, non-essential prices.

I still favor mid-term ARMs over 30 year-fixed rate loans. We offer a 7-year fixed period ARM at 4.875% (5.18% apr) while a 30-year fixed rate loan is a full percentage point higher.. When you consider that the average hold time for a mortgage is five years, the 7-year fixed period ARM makes a whole bunch of sense.

It should be a volatile week ahead with lots of economic data being released. Keep checking www.mortgageratesreport.com for updates. Want your rate quote and good-faith-estimate reviewed FREE? Fax it to (858)-605-4230 and call (858)-777-9751 to let me know it’s there.

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 allphoenixrealestate.com.

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