Mortgage Blog

This week mortgage backed securities continued their volatility as we saw some nice improvements on Wednesday but gave back some of that over the last couple of days due to Producer Price Index numbers coming in higher than expected. PPI is what it costs manufacturer to produce their goods which means inflation is still a concern. However, Fed Chairman Ben Bernanke did talk today that inflation overall should be relatively calm throughout the rest of the year and into 2009. This is great news for the bond market has we saw a sell-off on stocks whereby investors started to buy more mortgage securities. We are at our 50 day moving average on rates so my personal recommendation is to Lock in right now.

We had another investor this week get out of the DPA program (they are not taking any more applications) and I noticed that one DPA company actually raise their processing fee to sellers. So, it is getting more expensive to do DPA and investors are being limited. Get those deals under contract ASAP and closed quickly because you just never know what could happened once we get closer to that Sept 30th deadline.

Feel free to call me at 303.524.9191 or 303.809-LOAN(5626) if you have any questions or scenarios.

Randy