Mortgage market update for real estate mortgage loans and transactions

Market Update for Nevada County Real Estate Buyers

November 15, 2008

SOS: Summary on Saturday

5.875%
30-YEAR
CONFORMING (5.998% APR)

5.625%
15-YEAR
CONFORMING (5.812% APR)

Contact info
Susan Costello
Mortgage Consultant
Office: 530-273-8658
Cell: 530-559-2506
Home: 530-272-9177

INTEREST RATES STAYING LOW!

Looks like DEFLATION is going to be the word on the streets into 2009 which means mortgage rates will likely stay low.

Retail figures for October were released Thursday and were dismal. Purchases fell 2.8% in October, the fourth straight decline. Import prices dropped 4.7% which signals that we're going to head into a deflationary period. We're seeing seismic changes in consumer behavior in the U.S. and around the world. Retailers are suffering under the longest period of consistent monthly declines since the Commerce Dept. began keeping the monthly comparable data series in 1992. The declines have been broad based in every industry - automobiles, furniture, electronic, clothing, etc.

Many financial pundits believe the Fed will lower its' benchmark interest rate to a record 0.5% within the next 3 months. The next Fed meeting is scheduled for Dec. 16, 2008.

Fed Chairman Ben Bernanke has been stressing in his most recent speeches that his efforts to stabilize the markets and economy are being coordinated with central bankers worldwide. We're seeing interest rates lowered in Europe and Asia, which has clearly taken any discussion of inflation off the table. The silver lining to this is that mortgage rates should stay low!

I'm watching closely though to see if liquidity is going to start improving in the marketplace. Thus far the financial bailout plan has not seemed to trickle down to Main Street. If more lending dollars are made available, for student loans, auto loans, business to business loans, and mortgages, rates should come down further.

FUNDING LOANS EVERY DAY

I have not had one loan fall out during this entire financial upset. Yes, it can be more time consuming now to obtain loans and you really have to be spot-on about submitting a perfect file with everything in order. That's what we do and I'm funding loans every day without hassle.

USE A PROFESSIONAL. Call Susan 24/7

	Contact Info Home Sweet Home Loans Susan Costello 530-273-8658 scostelloehlcnc@pacbell.net