Friday Frenzy!

What a day, consumer sentiment hit a 16 year low, inflation stalled in February (very good news for mortgage rates), and the S&P stated late Thursday evening that the sub-prime write downs were toward the end of there rope. Add on this up and what do you have? Another volatile day for both the Dow, MBS (Mortgage Backed Securities) and in turn mortgage rates.

Are we at the bottom? Some analysts seem to think we are very close while others believe we have a little way to go but can see light at the end of the tunnel. What does this mean for mortgage rates? The inflation numbers were a great sign for consumers, traders and the factors that influence rates. However, to some the inflation number was not a surprise as they see this simply as a culmination of less spending and a slowing economy. The Fed will almost certainly cut the Discount & Fed Funds Rate (keep in mind these cuts DO NOT affect mortgage rates) rather it's what these cuts do for the "macro-economic" economy that will determine where mortgage rates are headed. As I stated in earlier posts keep your hat on the ride is not over yet!

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