Current Mortgage News 1/13/11

Rates hit 4.25% for a 30 year fixed rate loan with zero points a few weeks back and then went up to 5.25% and finally settled back to around 4.75% toward the end of last week. The moral of the story is, don’t be greedy. Rates are at all time lows. If you are waiting for rates to go lower you are likely going to miss the boat. It is just a matter of time before rates rise again.

The bond market continues to be very volatile. Trading volumes are thin and will remain that way all week due to the holidays. When trading is thin it only takes one to two large trades to move prices.

Rates around the world came under pressure after China’s surprise interest rate hike on Christmas day. Inflation is a real concern in China with the economy expanding rapidly. This is the second rate hike in China in the last 10 weeks and has global market concerned that the #2 economy in the world may run into some trouble with lower growth and higher costs. The higher borrowing costs are intended to slow the growth and hopefully inflation. As we have said here many times, inflation can be very difficult to contain once it gets started. This is the danger in the US with the Fed keeping rates near 0 for so long.

Gary Freedman has been in the Mortgage and Real Estate Industries for over 20 years. He has directly originated or managed the originations of over $700 Million in mortgage loans. He completed the prestigious B.F Saul Mortgage Company management training program in nine months. This training included working as an Underwriter, Appraiser, Processor and Closer. This training gives Gary the unique ability to understand the process from start to finish which allows his clients to experience a remarkably smooth loan process. Gary served as President of Granite Mortgage Corporation and Millennium.

Title Insurance Company from 1994-2000. He currently holds his Mortgage Brokers License in the states of New Jersey and Pennsylvania under License Number NMLS ID #146492. He has held the Real Estate Broker’s license in the state of Pennsylvania.

To reach Gary Freedman please e-mail him at gary.freedman@tridentmortgage.com or via phone 609-487-7202.

 The opinions and views expressed here are solely those of Gary Freedman and do not represent those of Trident Mortgage or any of its affiliates, officers, members or employees. Gary Freedman is not a CPA, Attorney or Financial Advisor. The information provided is deemed to be generally accurate but should not be relied upon to make any decisions. You should consult your CPA, Attorney or Financial Advisor before acting on any of the information provided herein.