Salt Lake City’s Mortgage Market Update for Oct. 29, 2008

Today the Fed will announce their decision on dropping the Fed rate and their policy statement.  We are expecting a 0.50% cut to the Fed Funds rate, which will lower the target rate to 1.00%, a level not seen in the past 5 years. Typically this causes Stocks to benefit and Mortgage Bonds to suffer or have no movement at all. This time could be different though considering the late rally stocks had yesterday.

For now I recommend floating until after the Fed’s announcement.  But if you are closing a mortgage loan in the next 30 days, be prepared to lock should Mortgage Bonds decide they don’t like the Fed’s announcements today.

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

30-year fixed: 6.250%

20-year fixed: 6.250

15-year fixed: 5.875%

FHA 30-year fixed: 6.875%