Salt Lake City’s Mortgage Market Update for Oct. 28, 2008

Mortgage Bonds are trading lower again today, and Stocks, which have had a few bad days, are trading much higher right now. The Fed began their meetings this morning and will release their Policy Statement and Interest Rate Decision tomorrow.  We are expecting another 50 basis-point cut (0.50%) to the Fed Fund rate, and this is seen as a major reason Stocks are better today. But, as Stocks gain, Mortgage Bonds lose, increasing mortgage rates.

Mortgage Bonds have dropped below the 100-day moving average and are now hovering just above another floor of support.  So for now I recommend locking if you are closing a new mortgage loan in the next 30-days.

For Salt Lake City, UT this morning’s mortgage rates are as follows:

30-year fixed: 6.250%

20-year fixed: 6.125%

15-year fixed: 5.875%

FHA 30-year fixed: 7.000%

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