12/11/07 - WAITING FOR FED DECISION

30 YEAR FIXED NOTE RATE: 5.75-5.875%

LOCK RECOMMENDATION: WAIT FOR THE FED DECISION IF LOCKING TODAY.  FUTURE LOCK RECOMMENDATIONS WILL DEPEND ON HOW THE MARKETS REACT TO THE RATE DECISION AND THE IMPORTANT STATEMENT THAT FOLLOWS.  ANY NEGATIVE NEWS ABOUT ECONOMIC GROWTH AND POSITIVE NEWS ABOUT INFLATION WILL LEAD TO RAPIDLY DECREASING MORTGAGE RATES.

STAY TUNED FOR AN UPDATE TO THIS BLOG AFTER THE STATEMENT.

No major deviations from expectations on economic reports today.  Mortgage backed securities are broadly improved from Monday.  Many lenders repriced yesterday afternoon as predicted, so don't expect any significant rate changes until the FED announcement this afternoon.  Although some lenders are improved as much as .25% of a discount point, others are unchanged from yesterday.

***The lock recommendations represent the author's opinion.  In general, if you believe economic and technical factors will make bond yields go lower, you should float.  Otherwise, lock if you like the current rates.  The NOTE rate quoted is an example of what's available from the most competitive lenders in the nation.  Depending on your location and qualifications, origination fees may be necessary to obtain this rate.***