HERE'S THE CURRENT RATE WATCH FROM WINDSOR CAPITAL...CHECK IT OUT EVERYBODY!!!

Rate Watch!!! 

Existing Home Sales Show Promise:
Existing Home Sales were released last week by the National Association of Realtors.  Their figures show that December's numbers were down 5.3% for the month and that when you compare January 2009 to January 2008 it was a difference of -8.6%.  Both of these numbers received a lot of media attention that used the data to continue to paint a negative picture of the housing industry.

But buried in the report was some news that is very encouraging: Inventories fell to a 2 year low!  They reported that the existing home inventory fell to 9.6 months.  This is very important because economists believe that once we get close to a 6 month level it will signal the bottom of the housing market.  Each month we get closer and closer to that goal.  When we get to that level home prices will stabilize and begin to increase.  This means that buyers should take advantage of the temporarily low price levels now.  Remember you make money when you buy the home not when you sell it.

What happened to rates last week?
Last week 30 year fixed interest rates went up to our highest levels in the past two months, hovering at 5.125% for conforming conventional and FHA loans and around 5.625% for conforming conventional and FHA for loan amounts over $417,000.

The slide in interest rates is largely due to the mortgage backed securities market's fear and concern about the proposed "Cram Down" legislation that could potentially give federal bankruptcy judges the ability to unilaterally lower interest rates and principal balances on existing mortgage contracts.

This could cause mortgage holders to lose large sums of money.  To offset that potential loss, mortgage rates must rise.

 
 What to watch out for this week:
There are many major economic reports that will hit the market this week. They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.
 
Thank you for your business and support of Windsor Capital Mortgage. Call on me anytime for an industry update or to review a loan scenario.
 
 
Respectfully,
 
Jun Lee
Windsor Capital Mortgage Corp.
714-279-3475
714-322-9642 Cell
jlee@windsor-mtg.com