January 16, 2008

Mortgage Rates - Economy Update
Mortgage rates continue with their trend lower on the perceived notion that the economic downturn could be more than expected. Generally, a sign of a weak economy will in turn create less inflation and lower mortgage rates. On Thursday, the Fed suggested that they were preparing to do something about it, spurring a reaction from investors who interpreted the statement as proof that the Fed will be more aggressive with cutting rates this time around. They are now thinking that a half point cut will be applied at the next meeting, Jan. 30, 2008.