The BIG "D" - Deflation!!

Mortgages in Greenville, NC - Yesterday, the Federal Reserve indicated that our economy is showing signs of deflation. This means that the average price of goods may be going down instead of up. The market has reacted by moving money from the stock market into the bond market. Generally, this would be a good thing for mortgage rates, causing them to drop. However, if you follow mortgage rates, you've seen that we haven't seen a significant change in rates. The reason is that investors still don't have a high level of confidence in mortgage bonds. The charts below show the 10 year T-Bill rates as well as the FNMA bond prices over the past 3 months. The first chart shows how T-Bill rates have significantly dropped over the past week. The 2nd chart shows the price of the FNMA 6% 30 year bonds. (Bond prices move inversely to the rates) As you can see, the FNMA Bond has stayed fairly flat. Hopefully, as investors gain confidence in mortgage bonds, more people will buy them causing rates to drop.

No change to Conforming Loan Limits

GREENVILLE, NC - On Friday, November 7th, the Federal Housing Finance Agency announced that the Conforming limits will remain unchanged for 2009. Click on the link below for more detailed information:

2009 Conforming Loan Limits

Call me if you have any questions about how this will effect you or your clients!

Mortgages in Greenville, NC

Mortgage Market Guide

GREENVILLE, NC - This week, I'd like to let everyone know about the newest tool that I have as a mortgage loan officer that helps me provide superior service to my clients. It's called Mortgage Market Guide. Everyday, I receive a market update informing me of what's going on in the market and what it's effect will be on the mortgage rates. I get weekly marketing tips and ideas on how to improve my business and the business of those I work with.


Probably the best service that they provide is up to the minute mortgage bond quotes and charts. This allows me to see what is going on with mortgage bonds how those changes are immediately effecting the interest rates. This allows me to give the best and most educated advice to my customers on whether now is a good time to lock their rate or not. It's not a crystal ball, but it's about as close as one can hope to get! Below is a sample chart showing how mortgage bonds have been trading over the past quarter. Obviously, there's been a lot of fluctuation recently.


Feel free to call or email me if you have questions about how these bonds effect the mortgage rates and how this could effect you as a borrower.



(Mortgages in Greenville, NC)