Los Angeles Mortgage Rates Report: October 3, 2007

I'd like to start off this morning's report by recognizing my wonderful wife, Debra.  We were married October 3, 1998 at St. Mary's Basilica in Phoenix, AZ.  Today makes it nine years.  Debra balances the demands of family and work beautifully.  Our daughter is an example of the former and our business profitability is a testament to the latter.

I clearly remember the day she changed my life with those beautiful blue eyes.  Her beguiling smile still stops me in my tracks today.  I love you, Debra.

I'm still maintaining my lock-in at loan application recommendation.  I just don't see a tremendous amount of upside to floating the mortgage rate.  There is an underlying fear of stagflation in the markets.  The American consumer had the flu, caused by the arrested access to easy money.  Higher oil prices create a commodity-push inflation effect that The Fed (thankfully) won't ignore.  While I agree with the folks from PIMCo that the consumer's flu could throw our economy into a mild recession, I'm not convinced with their conclusion that the Fed will aggressively cut rates to stave it off.

We have four MAJOR economic reports coming out Friday, all employment related.  If they are anemic, mortgage rates could drop dramatically; lenders will renegotiate rate locks to  reflect that drop.  If they appear inflationary, you'll be protected. 

I'm going to feature JUMBO mortgage rates today ($417,000-$1,000,000):

PROGRAM                RATE          APR

Annual ARM               6.250%      6.487%

5/1 ARM                    6.500%     6.697%

10/1 ARM                  6.750%     6.926%

30 Year Fixed            6.875%     7.124%

Rates available as of October 3, 2007.  Subject to change and qualification.  Equal Opportunity Lender.

It is important to note that Jumbo mortgage rates are starting to decline.  Wall Street has finally flinched and is buying jumbo loans again.  The pressure  from portfolio lenders caused the big boys to recognize that  shutting off the faucet was costing them money.  Greed and fear are the two motivators on Wall Street; they recognized that they threw the baby out with the bathwater and have let the "greed" factor overtake the fear factor" .

Contact me for a personal rate quote. 

Comments

[Ricardo Bueno]

Brian,

I remember we met briefly at A/R gathering in Long Beach...Debra is a great woman from the little that I got to know of her!

HAPPY ANNIVERSARY!!!

Best,
Ricardo Bueno